Yahoo has yet again implemented a new company policy which requires managers to rank employee performance on a bell curve then firing those on the low end.The use of forced ranking systems has been on the decline since the 1980’s, and research has shown employee performance can not accurately be represented by a bell curve. This system of ranking forces managers to rank employees unrealistically, with high performers sometimes being labeled as mediocre.

A video talking about this issue: http://video.foxbusiness.com/v/2839597140001/is-it-fair-to-rank-employees-and-fire-those-at-the-bottom/

While this new policy can be seen as a way to motivate staff to perform better, a lot of negative effects can result from the execution of this system. Employees will face increased pressure and the workplace will become highly competitive as employees try to outdo one another in order to keep their jobs. This is not conducive to a positive work environment where teamwork and communication are should be thriving. Furthermore, the risk of being ranked low will prevent employees from taking risks, and disgruntled employees will start producing lower quality work and have decreased company loyalty. Unhappy staff results in poorer customer service, which will be noticed by Yahoo customers who may take their business to other companies as a result.

Read more: http://www.businessweek.com/articles/2013-11-12/yahoos-latest-hr-disaster-ranking-workers-on-a-curve#r=most%20popular

Image from: http://allthingsd.com/20131108/because-marissa-said-so-yahoos-bristle-at-mayers-new-qpr-ranking-system-and-silent-layoffs/

While researching Coca Cola ethical marketing strategies, I came across the blog Outside the Box which featured a post on the exact topic. This post was interesting to me because while I’ve known of Coca Cola’s marketing strategy of “Open Happiness”, I never really knew how they implemented this into real life. Enter in the Share a Coke campaign which “encourage[d] customers to share a moment of happiness with friends, family and loved ones.” This campaign included designing of a can that could be twisted and shared, as well as the “Coca Cola Small World Machines”  which allowed people from both India and Pakistan to view each other digitally through the vending machines.

Check out the Small World Machines:

What really caught my attention in the blog was how it talked about messages behind these campaigns. Both ideas promoted a message of community, optimism, and breaking down/overcoming social and cultural barriers. The creativity that went into designing a strategy that was both simple and meaningful is inspiring, and I think its important to know the deeper meanings behind ads besides just the visual appeal. I think this also relates to the idea of shared value, where Coca Cola reinvented its product so that it was not only a profit making drink, but a bridge enabling social connections.

Image from:http://www.theguardian.com/media-network/media-network-blog/2013/aug/06/coke-debranding-name-dropping

I was really interested when I read Nydia Gunawan’s blog post about how Amazon is partnering with USPS to provide customers with 7 day delivery service. After reading her summary, it was very clear that Amazon is improving it’s services to give it a competitive advantage in comparison to other online stores. Amazon is analyzing its market demands and in seeing the growth of the online shopping industry, has decided to add to its value proposition by offering round the clock shipping which would be it’s point of difference. While this service is only offered to Amazon prime users, the convenience of this option will attract more customers to sign up to be prime members, increasing Amazon’s revenues.

A good video summary:

However, in this video, the issue of how Amazon’s shipping costs are extremely high is raised, and the question is whether this new revenue stream is worth it or not, as Amazon is garnering losses since revenues are less than the costs of shipping. Regardless, stock prices are rising and as customers experience the effectiveness of this service, word of mouth will increase,  positive brand identity will be created and Amazon will be established  as a point of reference for a quality and efficient shipping service. This new delivery schedule will be especially popular with frequent online shoppers who want to receive their products as soon as possible.

Image from:http://www.businessweek.com/videos/2013-11-11/amazon-is-so-powerful-it-can-open-usps-on-sundays

Yahoo was recently accused of intercepting emails sent by its users to create targeted advertisements based on personal information to make profit. Yahoo has more than 275 million customers worldwide,  and according to the lawsuit, ads bring in approximately three quarters of Yahoo’s earnings.

An increasing number of social networks and Internet companies are utilizing customer information, often without their knowledge, to make profit at their customers’ expense. This raises ethical issues about how these companies gather information, as customers are unknowingly giving firms glimpses into their personal lives. This relates to Fraser Denton’s blog post about Tesco’s employment of face scanning surveillance cameras to analyze age and gender of customers in an effort to better customize advertising.

In a highly competitive industry, pressure is placed on companies to deliver a marketing strategy that is individualized to each consumer. However, as focus is placed on the dominant consumer, other potential customers are ignored , which leads to decreased revenues and a negative brand reference. Large amounts of personal data is analyzed, which could be costly, but simultaneously, helps companies reinvent products and prevent futile promotions. It is interesting to see companies trying to integrate advertising into customers’ lifestyles and preferences. The question then becomes, as success rates of personalized ads rise, where will companies draw the line on what aspects of consumers’ lives constitute non ad-worthy material.

Check out the article here!:http://www.businessweek.com/news/2013-11-16/yahoo-sued-in-california-for-allegedly-intercepting-e-mails-1

Image from : http://www.ymailblog.com/blog/2010/09/

Morgan Stanley has taking a big step toward sustainable business practices by introducing the Morgan Stanley Institute for Sustainable Investing, which has a goal of  “advanc[ing] market-based solutions to economic, social and environmental challenges by bringing sustainable investments to significant scale.” Their first major goals include developing products that allow clients to invest in sustainable practices while gaining financial returns, partnering with Columbia Business School to provide internship to cultivate leaders, and to invest $1 billion toward quality affordable housing for low/moderate income families.

This initiative addresses the triple bottom line of sustainability and creates shared value for Morgan Stanley, it’s clients/shareholders, and the local community. Morgan Stanley has reconceived its products to suit increased client demand for opportunities to invest in solutions aimed toward improving quality of life, a growing issue in the world today. As well, this program enables local cluster development, particularly addressing societal needs of the community, such as health care and providing more jobs. Morgan Stanley will be adding to their value proposition, improving their brand image locally and globally as they will be recognized as social entrepreneurs. Offering internships gives Columbia Business students invaluable experience, but also provides society with forward thinking, sustainable leaders for the future. This initiative will enhance Morgan Stanley’s competitiveness and profitability in the industry, in addition to providing social responsibility, strengthening communities and preserving natural resources.

Read more:http://www.sustainablebusiness.com/index.cfm/go/news.display/id/25336

Image from:http://www.solarfeeds.com/sustainable-investing-institute-launched-morgan-stanley/

The announcement that Yahoo employees would no longer be allowed to work from home was leaked earlier this year in February. Yahoo is following in the steps of Google and Twitter who encourage their employees to work in the office. New initiatives were being started, and CEO Marisa Mayer believed that communication and strong physical community was required. Being able to work from home is popular with working parents, who need flexibility when balancing home and work life, and has proven to increase productivity since employees have freedom with their schedules and work environment. However, the lack of office presence has also lead to decreasing rates of performance- based promotions.

By removing the option of working at home, Yahoo risks alienating its employees andincreasing negative employee behaviour. This new policy is impractical, especially for workers who have long commutes to the office or young children.  Employees will be less motivated to be productive as their schedules will have to revolve around work hours, putting personal life second. Employee turnover will rise, as this new organizational behaviour will alter employee loyalty to Yahoo. HR management needs to analyze how this new policy affects worker morale, how it affects job performance and employee willingness to take risks and generate ideas. Yahoo should consider alternative methods to increase employee office presence that will benefit both parties in order to retain satisfied and happy employees.

Check out the article here : http://www.businessweek.com/articles/2013-02-25/why-wont-yahoo-let-employees-work-from-home

Images from: http://www.bizjournals.com/sanjose/news/2013/01/22/yahoos-marissa-mayer-eyeing-another.html

and

http://www.dailytech.com/Yahoo+Wants+Out+of+Microsoft+Search+Contract+Would+Rather+be+with+Google/article31509.htm

Industrial Revolution II, a garment manufacturer in Haiti, is truly living up to its namesake- it epitomizes how working conditions in clothing factories can be reformed for the better. IRII is supported by celebrities such as Matt Damon and Donna Karan, and it hopes to obtain clothing orders for high end clothes in the future. What makes this company different is the fact that they truly abide by their ethical mission statement. Workers are paid more than minimum wage, are trained in multiple skills, have access to an onsite health clinic and high-end machinery, among other benefits as well.

A look into the factory:

The company’s endeavor gives workers a safe environment to work in and equips them with skills that make them assets enabling them earn more in the future. The value of each individual is recognized and his or her abilities are not exploited. Rather than focusing on cutting costs and quantity over quality, IRII preserves workers rights and strives to become a pioneer in Haiti for producing high quality clothes. This will hopefully establish Haiti as a potential producer of ethically made clothes, which is an issue consumers are concerned about today, and allow Western brands to consider moving production to this country.

Check out the article at http://www.businessweek.com/articles/2013-09-19/matt-damon-and-other-celebs-back-a-high-end-apparel-factory-in-haiti

Tailor made TV ad tunes are the latest trend in advertising schemes, and with a rise in popularity of the indie music scene, many ad agencies are turning to music companies requesting ad music with an indie twist. Peoples’ attention are often divided when TV ads play, and with this new approach, companies are hoping to draw attention through catchy music that has consumers nodding along while loving the TV spot as well. Advertisers are approaching different sources to write their music, including both familiar and unknown artists, depending on budget.

This new approach to advertising really shows a shift in the ways consumers perceive ads and what elements are needed to attract and keep attention. Ads are no longer just focused on content, but also on music that creates an emotional connection with viewers. Advertisers are appealing to the ears of consumers, hoping customized jingles will be lodged in their minds, which they will associate with the product. However, with so many agencies utilizing this method, the question becomes when this approach will become monotonous. Advertisers should deviate from this tactic and perhaps research how viral videos gain popularity, and employ this information into devising content captivating ads instead.

Read more at http://www.theglobeandmail.com/report-on-business/industry-news/marketing/taking-notes-tv-ads-tune-into-made-to-order-indie-music/article14491355/

Potbelly’s initial public offerings sold like hotcakes on October 4^th, with shares being sold above their expected value and doubling in the first few hours. This up and coming sandwich store chain is hoping, along with its investors, to become the new Chipotle.

To expand, Potbelly needs to improve its positioning. Chipotle’s brand strength can be attributed to the fact that it was one of the first brands associated with healthier fast food and quality burritos. While Potbelly also offers natural ingredients, the idea of healthy fast food has become a point of parity in an increasingly health conscious society.  Furthermore, Potbelly will have difficulty differentiating in the soup and sandwich market since it doesn’t have the “first to” advantage.

So how can Potbelly grow? Potbelly needs to work on customer relationships and finding and targeting a part of sandwich industry that is not being met by existing brands. Potbelly needs to become the frame of reference in consumers’ minds as the go to place for innovative sandwiches and soups. Only with time can they observe customer trends and adapt their product, but in the meantime, they should focus on delivering quality and their brand promise of “Good vibes, good sandwiches.”

Check out the full article here: http://www.businessweek.com/articles/2013-10-04/potbelly-devoured-by-hungry-investors-seeking-the-next-chipotle#r=hpt-ls

Pictures from: Unbreaded http://unbreaded.com/2009/04/09/love-your-belly-a-peek-inside-potbelly-sandwich-works/ and Wikipedia http://en.wikipedia.org/wiki/Potbelly_Sandwich_Works

In a world where value is undeniably placed on how one dresses, people often forget to question the process of how our clothes end up in our closets.

In the BloombergBusinessweek’s article, “Bangladesh’s Paradox for Poor Women Workers,” the appalling work conditions faced by garment workers in Bangladesh are highlighted. The garment industry offers opportunities for impoverished women in Bangladesh to make a living, but at a price. Workers are subjected to long hours, unsafe environments, sexual and verbal abuse, humiliating punishments for not meeting quotas, and extremely low wages.

Watch:

The growing fashion industry and constant demand for new products has lead companies to become negligent of worker’s rights. In their attempts to increase profits and cut costs, apparel companies appear to have forgotten the dignity of individual lives, and are willing to sacrifice a few workers for the sake of producing a hot commodity. Unquestionably, a connection needs to be formed between companies and workers, where the women can truthfully report on working conditions and threats they experience, without the fear of being fired. Otherwise, no reforms can be made, and workers, motivated by desperation, will continue to endure these conditions at the expense of their own lives.

Read the article here: http://www.businessweek.com/articles/2013-05-09/bangladeshs-paradox-for-poor-women-workers

Image from Salon: http://www.salon.com/2013/05/03/how_shoppers_can_help_prevent_bangladesh_type_disasters/