The Way of the Future

Business that’s good for you.

Energy Aware’s Janice Cheam represents a new breed of entrepreneurs. Like all CEOs, she is hungry for success and wildly ambitious, but she is also socially aware. Janice, like many of today’s business graduates is not only interested in money, but also in stirring positive change.

Her firm produces meters that help families measure their monthly power usage and track trends. Energy Aware operates in North America, Europe and even extensively in Australia.

Janice Cheam http://www.newventuresbc.com/2011/08/2006-competitor-energy-aware-on-cover-of-bc-business-magazine/

This is a stark contrast to the common perception of a CEO. As mentioned in my post, “Funny Business”, the world often views businessmen and women in a very negative light; Janice is blowing away those stereotypes.

It was absolutely terrific to see someone so passionate about her work, and about making a difference in the world. Social (or in this case environmental) businesses have featured heavily in my past few Commerce classes, leading me to believe that Energy Aware is not an anomaly but rather part of a growing trend. These businesses are bound to help build a better world by breaking the once established norms and going places unimagined in the last century.

Finally, it’s great to see Energy Aware’s technology a knockout with consumers; interest on both sides of the market will drive environmental innovation and quicken the pace of reform. I look forward to hearing about Janice and her firm’s future success!

Spark: Janice Cheam’s presentation on Energy Aware, Jeff and Paul’s lectures on social enterprise, and Professor David Silver‘s lecture on business ethics.

Seeing Purple

IndiGo’s take off, and the business plan behind it.

IndiGo Airlines http://www.topnews.in/companies/indigo-airlines

The Indian airline industry is cutthroat. The top five airlines, Indian, Kingfisher, Jet Airways, IndiGo, and SpiceJet are in a constant fight for market share. The fierce battle escalated last year when India’s once top airline, Kingfisher fell from first place to last in a matter of months thanks to financial woes. Kingfisher’s drop created a vacuum, and allowed for an unassuming rival to take its place. IndiGo, the newest of the five swept into the number one position, and its executives say they owe their new found success to their rigid business plan.

IndiGo’s founder Rahul Bhatia beat out industry veterans http://businesstoday.intoday.in/story/indigo-in-most-promising-companies/1/18666.html

IndiGo has stuck faithfully by a low cost model, something its competitors moved away from years ago. The airline offers the bare minimum in terms of services, but also the lowest rates. This appeals to the Indian markets as most travelers aren’t very well to do, and distances are fairly short. Clients don’t seem to care too much about the journey, but merely getting there safely.

The new leader offers just that. It boasts a record for the most on-time flights, and arguably the best safety rating in the country. IndiGo was also quick to move into routes abandoned by Kingfisher, as it added a staggering one plane per six weeks to its fleet.

First mover advantage clearly plays no role in the Indian airline market. Customers will go for whatever option is cheapest and ensures a hassle-free journey, and IndiGo has unmistakably gotten that down to a science.

Spark: Indigo Sticks to the Basics

This Time for Africa

Ready for the boom?

http://www.economist.com/node/17853324?zid=295&ah=0bca374e65f2354d553956ea65f756e0

Most people tend to write off the entirety of Africa when it comes to business. Its reputation of bad governance, poor standards and constant warfare make it an unappealing investment for firms and individuals. But as of late, the continent has quietly pushed its way to the top of growth charts, with some of its countries even outpacing China and India.

This growth has the potential to be extremely beneficial to historically impoverished nations such as Ethiopia and Rwanda. Unfortunately, because the systems to handle the new capital are weak and unorganized, these new found funds will not be used to great effect.

Ideally, the boosted GDPs would help develop much-needed infrastructure and social programs. This would help create a more business friendly environment on the continent, ensuring future growth and maybe even winning over skeptical investors. Instead, much of the money will likely be wasted in bureaucracy and corruption as discussed in The Economist’s blog “Baobab. This was demonstrated using Nigeria’s oil economy, where despite large growth, citizens have seen little (if any) in the way of improvement to their quality of life.

The whole world wants Africa and its people to succeed, it’s time its leaders did too.

Spark: Baobab (external blog) and The Lion Kings?

A Great Leap Forward?

Xi’s in control. 

Xi Jinping stands with China’s next leaders http://www.bbc.com/

Next March, when Xi Jinping is appointed China’s President, he will face a very different set of issues than his predecessor, Hu Jintao. Chinese economic growth rates have slowed for seven quarters, and faltering western economies mean a weaker demand for China’s exports. These problems were addressed in Andrea Duarte’s blog post “China: Should it Keep Growing?

Deng Xiaoping, China’s original champion of reform
http://topics.time.com/deng-xiaoping/pictures/

Mr. Jinping will also have to tackle calls for freedom from his people and the global community.

I firmly believe that China’s economic and social issues are tightly connected. To set the nation back on track, leaders must further open markets, and allow greater freedom of speech. An increased flow of ideas will help China innovate and rely less upon its manufacturing sector. This was done with radically beneficial effects in the 70s and 80s with Deng Xiaoping as president.

I disagree with Andrea’s concerns for China’s large population. This factor is more a positive than a negative, as it provides a large group of buyers for the nation’s goods, and an enormous workforce.

If the new leaders can let go of stubborn and outdated regulation, China has the potential to overcome challenges and retake its place as an undisputed economic powerhouse.

Spark: Andrea Duarte’s post and The Man Who Must Change China

Thank you Kyle for your thoughtful response!