Wei-Ting Leong's Blog

Hewlett-Packard Company has faced turbulent times in the past decade, its reputation now laced with scandals; however, the latest PR leak has struck a final straw. Following sexual accusations from a former marketing contractor, Hurd resigned from his post as HP CEO and was promptly offered a job by the database software producer, Oracle.

In 2006, HP Chairwoman Patricia Dunn resigned when it was discovered that she had hired private investigators to spy on her board in order to plug an information leak.

The company’s shared values include “achievement and contribution, results through teamwork, speed and agility, meaningful innovation, and uncompromising integrity,” yet none of the recent company executives have managed to portray these values. If the top management within an organization fails to demonstrate the culture of the organization itself, how can the employees share the HP vision? In fact, how can consumers trust in HP at all?

Here, HP’s brand image has been the greatest hit of all. Consumers look for integrity within a brand image, and it is no wonder why stakeholders deviated away from HP following their crisis. If HP cannot reflect an “ideal” brand’s attributes, then it will continue to suffer.

HP must stay with the HP Way.

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As the commercial claims, Ford introduced the “carefree” and “spirited” Pinto model in 1970, as a comfortable suburban car that would compete against 4-cylinder European subcompacts like the VW Beetle and the Toyota 4-cylinder European subcompacts like the VW Beetle and the Toyota Corolla to reign as market leader; however, the Pinto design was severely flawed.

It was discovered that its weak rear bumper design left its fuel tank unprotected and therefore would combust upon any severe impact. Yet the company did not choose to fix the design. Instead, Ford argued that the cost-benefit analysis of fixing the faulty cars to paying lawsuits filed by the victims’ families would be better off if Ford did not change the design at all.

Of the estimated 500+ deaths incurred by the Pinto, could Ford possibly place a price on its victims? Is it ethical to use a cost-benfit analysis on human lives?

Arguably, Ford was doing nothing wrong: as an enterprise with the goals of maximizing its profits by definition, it was simply taking the actions that any “rational” person would have made. But when consumer trust and brand image are at stake, Ford made a compromising error.

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As the generation of the new millennium, we are told to push the boundaries of the limitations set by society, whether through the creation of something new and innovative or through solutions of pre-existing problems. As was discussed in class, innovation often arises between the collaboration of two apparent polar opposites, such as engineering and business.

Kinetic Sculptor, Theo Jansen states in the video above, “The walls between art and engineering exists only within our minds.” The limits we set for ourselves as hopeful entrepreneurs, sprouting accountants, or others only defines what we will become in the future. As members of a business community, innovation is something hard to distinguish. How can I create an idea that others will buy into so I can get a rich return? How far am I willing to stretch the limits of reality and my resources to create something others may ridicule or love?

The answer in a willingness to take risks. Be open to failure. And continue to persevere in the face of adversity.

It seems as if everything that is to invent has already been invented; yet when shown man made wonders like Jansen’s ingenious moving structures, it is never impossible to dream.

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On the home page of their website, founders Randal and Gregor happily proclaim their mission “To astonish your taste buds, nourish your body, unite you with the best sources of food and drink on this planet, and grow a progressive business from which happiness flows.”

It is no wonder how this new, innovative, local company has grown from but a few short years (since 1994) into a company unafraid of presenting their drinks in a fashion that most consumers would presume to look like mushed up veggies and fruit. But to be fair, their drinks are exactly that!

These west coast farmers took the risks necessary to realize an opportunity they had saw in purely organic drinks, raw and organic to the very sense of the words. Although they are currently operating under considerable monopolistic competition, their product is unique and their way of production is unique as well.

The speed at which this company has grown is astounding, recently launching a new line of Happy Planet “shots” that provide a natural booster of energy in a compact drink.

They are perceived by the public to be a $200 million dollar company owned by Coke, when they are simply a Vancouver-based company with only 22 employees; however, this is no longer just a small business run by hopefuls, but a progressively innovative company that is infiltrating supermarket shelves one “Abundant C” at a time.

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In a risky move by William Ackman of Pershing Square Capitol, Ackman recently took large stakes in shares for retailer JC Penny and manufacturer Fortune Brands, in hopes that the average US consumer would start spending more money and that these brands would hold the potential to grow during the economic recovery.

It is his long term strategy towards future growth that enables Ackman to reap the benefits; however, it is his immediate tactic of grabbing the shares that consumers can publicly see. Already in morning trading in New York, JC Penny’s shares climbed to $33.10 – a growth of up to 60% in the last month alone – and the firm grabbed most of its JC Penny shares while the retailer’s stock was around $20.

http://www.theglobeandmail.com/globe-investor/ackman-takes-stake-in-jc-penney-fortune-brands/article1749673/

Mr. Ackman is now considered one of the most successful activist managers in the hedge fund industry, and it is clear that he is targeting stocks he views as undervalued with considerable growth potential while at the same time considering his own firm’s financial conditions.

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The current Canadian economy has greatly suffered as of late. In a recent finding by Statistics Canada, 6600 job positions were diminished; however, the unemployment rate dropped slightly to 8 percent. Compared to the condition in the United States, Canadians are faring considerably better for the most part.

http://www.theglobeandmail.com/report-on-business/economy/jobs/job-market-held-back-by-struggling-us/article1749025/

The problem is presented as the Canadian economy continually finds itself attached to the slow, stagnant recovery of the US (with an unemployment rate of currently 9.5 percent) , and therefore our job growth is predicted to remain slow as well. Once again, the sleeping elephant of the American economy is affecting their immediate neighbours as was said so many years ago by former Prime minister Trudeau. It spells out bad news on our part.

Prime Minister Harper continues to support his government’s intentions of ending the stimulus and reasons that “there’s going to be bumps along the way.” In order to achieve further growth in Canada’s suffering economy, business investments are entirely necessary and crucial for the well-being of our country.

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In Organizational Behaviour and COMM 101 this week, both classes were presented with a particular proposal in which we were forced to either take or leave – the proposal being whether or not to take a stable, well-paid job with excellent perks such as a month paid vacation and health care but no promotions for 10 years, or to refuse the offer and find work else where.

To many, the answer appeared painfully obvious. Of course! Take the job that pays 84,000 dollars a year! Yet, it was something many also chose to ponder further. If, indeed, you accepted a job that only gave you extrinsic motivation, would you be able to sit, stagnant until a promotion arose? And even if you were to only take the job momentarily, would you be able to leave it just as easily?

An unchallenging job would not only prove worthless to the employee, but it would also encourage a sense of complacency. There would be no room for personal growth, and the intrinsic factors that make professions so interesting would not exist. This sort of environment could only give way to a negative resentment towards the job.

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http://www.adsneeze.com/media/2007/07/sisley-fashion-a1.jpg

Above is a picture illustrating a typical advertisement one might find in a generic magazine. A somewhat startling advertisement launched by Sisley, an upcoming fashion company, that begs the question: “How unethical are advertisements allowed to be?”

When we first read into the picture, we see two attractive models insinuating the action of essentially snorting cocaine. However instead of the illicit substance, the company has cleverly placed a dress there in its stead. Of course, we understand that Sisley is attempting to portray their line of fashion as addictive and somewhat naughty natured; yet they are also inadvertently promoting a controversial issue of drug abuse as well – an issue that is very much rampant in today’s fashion industry.

The aim of an advertisement is to make itself look cool and attractive therefore making the product seem cool and attractive. Although Sisley may employ a more negative connotation with its marketing strategy, it is humorous and eye-catching, but at the same time, it is not morally right.

This is the contradiction that in itself, gives the ad its “kick.” So rather than calling advertisements distasteful or unethical, we should focus on what makes an advertisement bold and unique. After all, we may very well be the next marketing team that will aim to produce ads such as this in the near future.

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http://www.financialpost.com/executive/Young+women+earning+more+than+their+boyfriends/3496675/story.html

In our modern day society, we believe in the notions of equality; however, gender inequality is still ever-present in workplaces around the globe. In the Globe and Mail article, “Young Women are Earning More Than Their Boyfriends” by Heather Boushey, Boushey discusses how although young women are earning more than young men of the same age because they are more qualified, women continue to be paid less than men of the same capabilities, same education, and same posts.

Of the same age group, women are earning more than men, but only because they are better qualified.
(http://www.financialpost.com/executive/Young+women+earning+more+than+their+boyfriends/3496675/story.html)

The root? Here lies the ethical issue of sexism. The media has tactfully painted a picture that indeed, equality has arrived. Yet unfortunately, the ethical issue does not lie in age comparison, but in a comparison between equally qualified women and men working the same jobs yet receiving differing salaries. Equally skilled men in the workplace continue to be paid better than women as shown in a 12 percent pay gap ten years after graduating from the same college with the same degree.

In Milton Friedman’s article, he discusses how some believe a business does not just function to generate profit, but to be a socially conscience entity as well (1). To set an example.

Although the gap between genders has greatly improved in the last few years, businesses can be the forefront in continuing to narrow it.

(1) “The Social Responsibility of Business is to Increase its Profits”, Milton Friedman, The New York Times Magazine, September 13, 1970.

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