Categories
Economics

Overpriced Vancouver?

With today’s Westcoast lifestyle being so costly families are stuggling to sustain themselves. Vancouver being one of the most expensive cities to live in, some traditions had to change.   The costly lifestyle has caught many of my friends attention as Jon Li blogged about the increased difficulty of  financial retirement and Jason Cion commented on the recent brain drain of Canada due to minimum wage.

With retired people downgrading their homes and saving money for their children, many retirement plans turn out differently than the elderly have expected. If grandparents want to be able to leave some money for their children their strategy must be to invest (and take upon some risk) rather than save.   Not only are youths unable to move out, but now the elderly can not enjoy their retirement!

What the elderly have to think about

Another quickly approaching topic is the current battle to keep Canadians working for local companies. Many companies are moving toward the states because of the cheaper costs and lower minimum wage. As we have learned that many companies are outsourcing their resources, Canada struggles to keep its workers within its own countries. While some companies can like Zappos can still afford to employ locally, most companies prefer to outsource and save.

 

Outsourcing
Why companies choose to outsource
Categories
Company Culture ethics

See Through the Lululemon Hit

With Lululemon’s multiple production failures, the company has yet to establish a stable and reliable connection with their consumer. In fact, they have been doing quite the opposite. After having quality control issues and distributing yoga pants that were too sheer and thus see through, customers are feeling alienated from the brand.   With the stock price tumbling down 4% to $66.24, even investors are questioning if this mistake marks the beginning of a slippery slope.

lululemon alienating customers

It was no help when co-founder Chip Wilson began to blame the pants’ problem on women’s bodies.    Sparking an outrage, customers all around are feeling under-appreciated -some even petitioned for a formal apology from the co-founder.  Also customers were asked to bend over to prove that the yoga pants were defected in order to receive a refund.  

With all this negative publicity the most crucial damage is towards the company culture. One of Lululemon’s infamous value proposition was that their yoga pants lead to a healthy and comfortable lifestyle. However, with the consecutive mishaps and publicity blunders, the consumer’s perception of the company’s  culture has now begun to shift. With their main point of difference taken away, Lululemon products are beginning to lose its appeal.  Lululemon must retain and recapture their original image if it hopes to recover from this major setback. 

 

Article reference : http://www.huffingtonpost.com/2013/11/14/lululemon-alienating-customers_n_4275842.html?utm_hp_re f=canada-business&ir=Canada%20Business

 

Categories
Economics

Re: Tim Pazuik – A New Perspective on Unemployment

As a lecture, financial planner and an educator, Tim Pazuik has an interestingly optimistic perspective on Canada’s unemployment rate. With constant battering on the slow recovery from the 2008  economic recession, Pazuik sees that a 7.2%  unemployment is a positive sign considering that employment never fell below 7% in the 1990’s.

By comparing Canadian economy a few decades ago, the working population in 1976 was about 41.6% of the current population, while today’s workforce is about 50%. At first glance it may not seem much; however, take into count the population boom in Canada over the past 30 years, an 8.4% based off of population is rather impressive. Overall he believes that Canada is still the “Land of Opportunity”.

What is on my mind: Editor’s response 

With the calculation of unemployment being the simple division of  (unemployed labor / labor force population)  the numbers do not always tell the whole story. The current concern I have is the percent of structural unemployment, mismatched workers who are over qualified and under appreciated for their current job,  in Canada.

As a university student who studies hard to earn their degree, most people can tell you that a university degree has depreciated in value. As our population gets larger and larger, more people with universities degrees are stuck in underutilized jobs. With minimum wage and  business moving south of the border, Pazuik’s perspective on Canada is better named as the “Land of Limited Opportunity”.

 

 

 

Categories
Economics Technology

Commerce is Technology

The future is here! With businesses being innovated through recent technological updates, degrees like Business Technical Management (BTM) or Management of Information Systems have become invaluable. But how important are they?

Companies value Big Data, data about something that can not be stored by traditional methods,  at a high price. Having information about your consumer has become a serious competitive advantage, and it has proven itself through revenue and inventory turnover ratios.  Using data in conjunction with rudimentary tools like the SWOT analysis and balance sheets, companies can visualize their opportunities to grow and cut costs. The most redeeming possibility with Big Data  is the ability to ‘nowcast’, a term which data mangers use to estimate metrics like consumer confidence.

For in-depth analysis: MGI_big_data_exec_summary

 

Data has become a tool that is leveraged by companies in 5 major ways:

  1. By unlocking significant values: By digitizing not yet captured data information can become accessible  instantaneously and effectively, leading to an efficient workforce.
  2. Using accurate transactional data: Big Data can help collect more accurate and detailed information on company performance. This in hand allows managers to address and solve internal problems.
  3. Carefully Narrowed segmentation: With data products can be more tailored to consumers and increase sales and overall consumer happiness.
  4. Spotlighting Valued Insight: Big Data can be used to analyze products and create decisions that minimize risk and reveal valuable insight to a company.
  5. Starting Next Generation Improvements: Data can be from consumers that can push companies to innovate and recreate their products to ensure long term profits.

Throughout the year we have been told how important information is and how every sector is interdependent to one another. No matter what you choose to learn in the faculty of commerce the reliance on data has become crucial in the twenty-first century.

 

Article reference:  http://iveybusinessjournal.com/topics/strategy/why-big-data-is-the-new-competitive-advantage#.UokJP8SshiR

Categories
Economics Positioning Buisness

Tim Goes Global

 

Targeting its neighbor, Tim Hortons’ chief executive Marc Caira told investors that its first expansion would be to the States and the Middle East. Hoping to create a economic space for the beloved Canadian pit stop.

With its recent expansion to the United States, Tim Hortons looks to expand

Despite the promising plan, Tim Hortons is still in the back seat in terms of technology.Starbucks and their introduction of their mobile application, 11% of sales have come through with this application. As the leader of coffee served in Canadian businesses, it will soon need to create a competitive edge  with its rival.  One idea is to recapture the “youths” in their customer profiles  as Tim Hortons lacks desperately needed customization into their drinks.

Canadian coffee chain Tim Hortons takes on America

With such an upheaval in the coffee industry, as a proud Canadian I believe that the expansion to the United States will be a successful journey. This opinion comes from a  distinct differentiation it has to its competitors. By coupling its coffee with more than the simple doughnut or french pastry, the compliment of a hearty meal and cheap homogeneous product is what really made this company successful.  In regards for Tim Horton’s hopes to expansion, I believe that although their market may be overcrowded and competitive, there is always room for a Timbit. 

 

Reference:

http://www.huffingtonpost.ca/2013/11/08/tim-hortons-profit_n_4232278.html?ir=Canada+Business

Categories
Positioning Buisness

Netflix Coming To You

Recently, Netflix has become a hot topic in class because of its success due to its flexible choices  in expansion.  In the classroom, the students came into a consensus that the most convincing means of expansion should be focused on striking partnerships with existing cable companies. Whether it be adding value propositions, changing existing strategies, or moving into a different position in marketing, Netflix has the opportunity to reach everywhere.  It seems like many other people think the same way; Peter Csathy, the CEO of Manatt Digital Media Ventures wrote an article about the top 5 reasons why this expansion should happen. Coincidentally, many of his points intersect with the ideas that COMM 101 had to offer.

Top Reasons (summarized in own words) :

  1. Netflix is everywhere: Like what our class has brought up, many users have readily accessible forms to the Netflix program, including their DVRs, DVD players, or even gaming consoles. By adding it to cable boxes, it just seems like the right thing to do.
  2. Offer a better User Experience:   Much like the aforementioned point, it simply makes it more convenient for users and allows the possibility to an integrated billing system.
  3. All the Shows: We mentioned that Netflix has its own programming like House of Cards, Orange is the New Black, and the reinstated version of Arrested Development. Now if they were to partner with existing cable companies users would no longer have to switch between programs to find their favorite shows.
  4. Making everyone happy: With Netflix incorporated it will being more overall attention to both companies translating for more viewers. If you are the cable box companies that results in advertisements becoming more valuable, and for Netflix it would simply attract more subscribers.
  5. The Quality: Adding Netflix to the bunch gives customers a reason to upgrade into a premium package and to get the best of both shows.

 

With the limited time in class we never really got to explore these options and provide a strong researched argument. With the help of this article we really get to see how the different aspects of business that we have learned become tools that we can incorporate when providing managerial advice.

 

Reference:

Check out the original article at :

http://www.huffingtonpost.com/peter-csathy/netflix-cable-tv_b_4142086.html?utm_hp_ref=canada-business&ir=Canada%20Business

Categories
Economics

Our Economy at a Stunted Growth

In the midst of our economical recovery former economist, Jeff Rubin, states that things are not going to get better.  According to him, the high price of energy will cause a “permanent shift down in economic growth” .  But what does that really mean? The idea is that we have reached a maximum amount of growth, or to put it into economics 101 terms “ the marginal return is lowering“. The rate of the global super powers have already reached high production speeds, and for them to increase their rate like before is just too much to ask.

jeff rubin

Despite all this, what I really want to know is that how will it affect me, the average Joe?  Well the news is grim, and the fact is that unemployment will start to surface – especially for youths.  The truth is that more and more people are enrolling into post-secondary universities looking for a job that can increase their standard of living.  With the cost of living getting higher and higher we see that more and more people living with their parents.

But what does that leave us with? Now that we know the problem, addressing it should become the next priority. Unfortunately for us, finding renewable, clean, and sustainable fuel is not the easiest thing to do. Oil has been integrated to our everyday lives and shifting the global market does not happen in a day. With this in mind, we have to accept that things are going to change  and adapt to it in hopes of surviving the upcoming hardships.

 

References:

http://www.huffingtonpost.ca/2013/10/05/jeff-rubin-unemployment-energy-prices_n_4046062.html?ir=Canada+Business#slide=2980429

 

 

Categories
Positioning Buisness

Wingman For Hire

As the world’s population gets larger and larger has it become harder to find true love? If you think so, you may become Thomas Edward’s  next client. Having studied different business models and how each company strives, a small section is dedicated to nice companies – businesses that thrive off a very small audience looking for a specific product. Thomas Edward’s “Wingman for Hire” has done just that.

Currently, dating services has generated billions of dollars in revenue, but this one takes it to a new extreme.  Founded back in 2009, he came up with this idea when a random man asked him to walk over to a woman and make an introduction, and if he was successful the man would buy him a weeks worth of drinks.  Through this encounter he decided to make a business that would specialize in coaching men to learn to become sociable, attain confidence, and experience life from a different perspective.

Now Thomas is a professional wingman who gives real-time coaching to his clients. Having a 95% filter for his clients, he goes in detail about their social environment and dating history. He has been with 300 clients and gets paid roughly $125 per hour to teach people how to socialize in a bar.

In my opinion I think that what Edward has done has embodied the many aspects, values, and goals that young businessmen have.  He was able to define a market for a group of people that no other competitor has ever though of.  Through his curiosity to go to unexplored market territory he has his own niche where his company can not only  survive but expand. With this new idea, the billion dollar dating industry may see natural reform within my life time!

References:

http://www.businessinsider.com/thomas-edwards-professional-wingman-2012-1

 

 

Categories
Technology

Man Who Aims to Save BlackBerry

BlackBerry, the previous kingpin of mobile devices,has now been replaced by the  new innovations from Apple and Android. Outdone by its combination, BlackBerry has taken a steep dive over the past year  and is looking for a savior. Their prayers were answered. Prem Watsa has step forward to make a deal with BlackBerry.

Who is Prem Watsa- The man who aims to save Blackberry  

Although being often referred to  as  Warren Buffet’s Canadian counterpart,  he has never really been in the medial spotlight.  Prem Watsa has be renown for taking chances against the markets, butting heads with analysts and ultimately coming out on top. Through his infamous “budget chops” that reaped profit in the unlikely time of USA’s recession, Watsa has shown that he can make good out of a bad situation.  However, can he revive the seemingly irretrievable company of BlackBerry. Apple and Android have occupied the majority of the market and established a comfortable lead midst its competitors. With many disregarding the BlackBerry brand as a “weaker smartphone” the chances for revival are slim. Will Watsa restore RIM back into its powerhouse position as the “smartest”  smartphone or has his Warren Buffet’s idea of  “investing in quality, looking into the future” made him dig an early grave?  Only time can tell.

 

References:

http://globalnews.ca/news/858573/prem-watsa-canadas-warren-buffett-hatches-plan-to-salvage-blackberry/

http://www.theverge.com/2013/9/23/4762666/blackberry-receives-buyout-offer

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Categories
ethics

Record BREAKING £14M Fine

   Caught in between what we want and what we have to do seems like a tough call for most, but does it have to be mutually exclusive?  Well if your a multinational accounting firm, it is.

   Deloitte, one of the largest accounting firms in Canada and a proud sponsor of UBC, has been fined a record breaking £14 million by the Financial Reporting Council (FRC). Being accused of “having a conflict of interest” and giving misleading fiscal advice, Deloitte is under the microscope for their representation of their companies and their own moral code.

   Held victim to this betrayal is United Kingdom’s automobile firm MG Rover.In addition to the final outcome, there was another issue facing the crisis in 2000 when four local businessmen, nicknamed “The Phoenix Four”, purchased the company for £10 and went to pay themselves a total of £42m before the firm collapsed.   As MG Rover collapsed it went with a £1.4m debt and a total loss of 6,000 jobs.

   As an aspiring student who wishes to seek an occupation in financing or accounting, the amount of actions being inconsistent to the social values seem to be endless. I imagine Friedman’s idea on how companies should work among “social norms” and “laws” seems  to be too optimistic for the world today.

References:

http://www.independent.co.uk/news/business/news/deloitte-given-record-14m-fine-over-mgroverphoenix-affair-8805861.html

http://www.theguardian.com/business/2013/sep/09/deloitte-record-fine-mg-rover-deal

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