Author Archives: WillLatu

Arc Initiative in Ethiopia.

The Arc Initiative and social enterprise do so much more than merely help the financially insecure- they provide the tools to benefit the individual, and community, in the long term. The question posed from Class 20 is “If  the United Nations was fully funded why would we need the Arc or social enterprise”? The answer to that question I believe is simple: These programs set the foundation for continuous growth and development of quality of life, as well as business. If the UN was fully funded and provided financial relief to all afflicted groups, the problems plaguing them would still linger because of the lack of guidance given with funding. It is when entrepreneurs, like Salem Kassahun and Fitih Tesfaye, receive advice on how to improve their current business model when real change is made. Due to attending Arc Initiative workshops, both professionals altered their business models for the better, and are thriving, benefiting their communities, thanks to the suggestions made by the Sauder organization. Social entrepreneurs see and believe their vision, and take action to solve issues. Dorothy Stoneman of YouthBuild USA recognized an issue, and created an organization that maximizes social benefit. It is these programs, that fill in gaps left by governments and other agencies, that instigate sustainable change for the better in communities around the world.

Youthbuild USA logo.

The articles used in this post can be found at:

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/can-fair-trade-boutique-expand-without-alienating-customers/article4405520/

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/in-a-crowded-market-ethiopian-entrepreneur-finds-a-sweet-way-to-stand-out/article17912688/

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative

https://youthbuild.org/dorothy-stoneman

Photos can be found at:

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative/Locations/Ethiopia

http://civicsupport.org/wp-content/uploads/2012/12/YBlogoblue2.jpeg

 Whole Foods.

The CIO Journal, a blog by the Wall Street Journal, discussed Whole Foods’ recent success stemming from the implementation of technology. According to Whole Foods CIO Jason Buechel, their partnership with Instacart, a grocery delivery app, has increased quarterly revenues for Whole Foods by an astounding 5.8%. I think that Whole Foods’ focus on technology, specifically to expand from just a brick and mortar standpoint, exemplifies the sustainability and efficiency aspects outlined in Class 15: CSR and Efficiency. This technology has made it far more efficient for customers to purchase their groceries through the app, resulting in greater checkout loads; 2.5 times the average in-store cart to be exact. It also helps prospective customers, conscious of their health but are unable to physically shop in stores, to purchase quality organic food previously unable to them. Whole foods is making buying natural, healthy food accessible to everyone, effectively combating the societal problem of obesity. This unique partnership also differentiates the chain from known competitors such as Kroger and Walmart, which have begun carrying organic food. This creates a customer segment unique to Whole Foods. Customers that previously elected to buy from closer to home stores can now see the value in purchasing from Whole Foods. The investment in technology already proves to be paying off for Whole Foods.

Organic Zone in Whole Foods.

The article used in this post can be found at:

http://blogs.wsj.com/cio/2014/11/06/whole-foods-cio-says-apple-pay-instacart-paying-off/

Photos can be found at:

http://www.wholefoodsmarket.com/sites/default/files/media/Westlake_Photo_Official_sm_0.jpg

http://www.theblondevegan.com/wp-content/uploads/2013/09/15.jpg

Mr. Carter and a bottle of Ace of Spades.

The rap mogul Shawn “Jay Z” Carter has recently purchased equity in the Armand de Brignac Champagne line owned by Sovereign Brands, a wine and liquor company based in his native New York. Through his incredible influence and popularity in the hip hop culture, he has been able to heavily promote the brand in his music and public appearances. The marketing upside of having someone as famous as Jay-Z associated with your brand is exponential. Like we covered in Class 2: Marketing Meets Accounting, the firm, Sovereign Brands can instantly charge more for their luxury beverage due to Jay-Z’s involvement. It could be an inferior champagne to competitors, but the fact that it’s part owned by Mr. Carter and has an enormous price tag attracts the desired customer segment of extremely wealthy individuals. Truly an upper echelon priced drink, the nine bottle size collectors package ranging from 750-milliliter to the 30-liter “Midas” sold for $500,000 at MGM’s Hakkasan nightclub in Las Vegas. I believe that shrewd investors like Jay-Z and 50 Cent exemplify the entrepreneurial dream of burgeoning young business hopefuls like me. They came from impoverished environments and managed to stay driven and reach the top of their fields, all the while staying conscious of sustaining their wealth by diversifying through savvy investments.

H.O.V.A. also known as Jay-Z is at the top of his game.

The article used in this post can be found at:

http://www.bloomberg.com/news/2014-11-05/jay-z-buys-ace-of-spades-champagne-stake-from-sovereign-brands.html

http://rap.genius.com/Jay-z-show-me-what-you-got-lyrics#note-32390

Photos can be found at:

http://ambrosiaforheads.com/2014/11/in-the-ultimate-kiss-off-to-cristal-jay-z-now-owns-ace-of-spades/

http://i.huffpost.com/gen/1449869/thumbs/o-JAY-Z-BARNEYS-RACIAL-PROFILING-facebook.jpg

Tinder Logo.

Sean Rad has been stripped of his title of CEO at explosively popular online dating app Tinder. The co-founder has been demoted to president and will serve on its board, a far cry from the controlling position he previously held. The circumstances behind his demotion are what what make it interesting, and make what we have learned about entrepreneurs, intrapreneurs and business ethics come to life. Rad is left with only a 10 percent share in the company because he was a paid employee of a tech incubator called Hatch Labs when the app was developed. Since IAC owned the majority of that company, it gained majority ownership in Tinder when Hatch closed down in 2013. The IAC allowed Rad to pour his blood, sweat and tears into the company, and proceeded to rip it out of his hands, using a sexual harassment lawsuit between feuding co-founders as the nail in the coffin. Even though he wasn’t a perpetrator, his involvement alone, in combination with the Barry Diller and IAC’s equity in Tinder, gave the IAC enough ammunition to carve out a controlling stake in the company and cut Rad out of drivers seat. This bizarre takeover has shown the significance of establishing boundaries in the workplace, as well as the brutal reality of technicalities in business. Even though Rad co-founded Tinder, it was cultivated while he was an employee using Hatch’s (the IAC’s) resources, making it theirs.

Sean Rad (right).

Lush (image from https://twitter.com/lushcosmetics).

As mentioned in Juliana Phan’s blog post, Lush, a natural and adamant anti-animal testing cosmetics company, employed an ingenious marketing ploy in 2012 to illustrate their differentiation from typical big name cosmetic retailers. Juliana expressed how Lush’s display of a woman, Jacqueline Traide, being subjected to animal testing practices in their storefront window was a brilliant marketing strategy. I completely agree, and want to add that in addition to marketing their own brand, Lush has repositioned the competition. By showing what animal testing cosmetic companies subject animals to, they have effectively associated these brands with the horrid image of animal testing. By indirectly shedding negative light on their rivals, Lush has managed to both promote their natural, cruelty-free products while also establishing Lush’s value proposition of premium 100% vegetarian, hand made cosmetic products. I am by no means a vegan, but I admire Lush’s mission to to fight animal testing by only buying ingredients from companies that do not commission tests on animals.

Lush is fighting animal testing (image from http://www.lush.ca)

Lush demonstration (image from http://www.dailymail.co.uk).

The articles used in this post can be found at:

http://blogs.ubc.ca/julianaphan/

http://www.lush.ca/on/demandware.store/Sites-LushCA-Site/en_CA/AboutUs-OurStoryShow?cid=about-animal-introduction

Photos can be found at:

https://twitter.com/lushcosmetics

http://www.dailymail.co.uk/news/article-2134555/Lush-animal-testing-protest-Woman-subjected-experiments-horrified-shoppers.html

http://www.lush.ca/on/demandware.store/Sites-LushCA-Site/en_CA/AboutUs-OurStoryShow?cid=about-animal-introduction

Yik Yak app on smartphone (image from Huffingtonpost.com)

In response to Adrian Dizon’s post about the trending app Yik Yak, the anonymous social media app Yik Yak indeed has limitless potential in terms of popularity and revenue. I believe that the cornerstone of the application is based on the anonymity of posters, in which lies a moral dilemma. Adrian mentioned immense popularity of the app, and I want to touch on the equally rampant inappropriate use of the app, which has ranged from cyber bullying to bomb threats. I heard about Yik Yak through these news stories, and immediately wrote it off as a bad app. However, upon reading the Huffington Post article about Yik Yak’s active effort to limit this misuse, like Adrian, I have become an advocate for the truly fun app. Co-founders Brooks Buffington and Tyler Droll contacted Apple and changed the age rating to 17+, and began manually inserting “geo-fences” around all middle and high schools in the US, disabling users to post or see messages while on school grounds. The target audience is college age students that can use the app responsibly, and the creators’ attempt to ensure this proper use shows that the makers actually care about more than topping the app store download charts.

The article used in this post can be found at:

http://blogs.ubc.ca/adriandizon/2014/11/04/yik-yak-the-next-big-thing/

Photo can be found at:

http://i.huffpost.com/gen/1665880/thumbs/o-YIK-YAK-facebook.jpg

The proposed Enbridge Northern Pipeline project is threatening the pristine Nak’azdli territory, home of the Yinka Dene Alliance, a coalition of six First Nations. The pipeline would risk destroying the precious waterways the Nak’azdli and the region’s other groups hold so dear to their hearts. A puncture, even as small as a “pinhole” leak, would alter decimate the salmon stock. The chances of that happening are once in 79 years (about 1.2 per cent a year)- A risk the First Nations aren’t willing to take. Roughly 40 per cent of First Nations in B.C. directly affected by the project have signed deals to take a financial stake in the pipeline, according to Enbridge’s calculations.

Protestors against the Enbridge Pipeline (image from forestethics.org)

However, this does not include the five coastal First Nations that are so unwaveringly opposed, a key component why the pipeline construction has not been solidified. When such a large group of people is so vehemently opposed to the project, they can make a difference. The socio- cultural analysis of the area states that the coastal aboriginal peoples want no part of an oil pipeline. Risking their livelihoods and traditions passed on by generations for money is simply not an option for them. This is a prime example of external forces from the social-cultural facet affecting major economic factors of a business plan. In this case, Enbridge is forced to negotiate terms with the First Nations, and can’t simply steam role over them.

Works Cited

Hoekstra, Gordon. “There will be no pipeline.” http://www.vancouversun.com. Aug. 16, 2014 2014.Web. <http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html>.

“Understanding Pest Analysis with Definitions and Examples.” http://pestleanalysis.com. Dec. 31, 2013 2013.Web. <http://pestleanalysis.com/pest-analysis/>.

Counterfeit Vancouver Canucks Kesler Jersey (image from vansunsportsblogs.com)

Illicit reproduction goods are flooding the market, and reportedly cost American businesses alone over $200 billion dollars a year. The counterfeit jersey epidemic originates primarily from manufacturers in China that bombard the US market. Last year during the build up to Super Bowl XLVIII, the FBI and the NFL seized $21.6 million worth of fake Super Bowl jerseys, hats and other items in a counterfeit goods crackdown. This seizure is just one of many, as the demand for cheap, authentic looking sport jerseys is unbelievable. According to authorities however, buyers reportedly only receive an estimated 10 percent price break and wind up with poor quality fake goods. Additionally, the losses caused by the counterfeiting increases the price of legitimate goods. As an avid sports fan myself, the urge to buy counterfeit jerseys at a fraction of the price is extremely tempting, especially since licensed jerseys cost such an incredulous amount. Questionable quality that takes away from the economy here isn’t worth it for me however. The problem is that it is only against the law to sell counterfeit jerseys, not the purchase of them. Penalizing the consumer would curb this issue promptly. For now, the battle rages on, as law enforcement continue to shut down hundreds of websites selling fake jerseys.

Works Cited

“Feds Seize $21.6 Million In NFL Counterfeit Merchandise Before Super Bowl.” http://www.huffingtonpost.com. Jan. 30, 2014 2014.Web. <http://www.huffingtonpost.com/2014/01/30/nfl-counterfeit-merchandies-super-bowl-seized_n_4695640.html>.

May, Caroline. “DHS seizes $21.6 million in fake NFL merchandise, arrests 50 involved.” http://dailycaller.com. Jan. 30 2014 2014.Web. <http://dailycaller.com/2014/01/30/dhs-seizes-21-6-million-in-fake-nfl-merchandise-arrests-50-involved/>.

Lego has finally clinched the top toy maker spot, edging out perennial power Mattel in both revenue and profit. Their revenue increased by 11% in the first six months this year, amplified by “The Lego Movie” merchandise, making it the largest toy company in the world by revenue and profit, surpassing Mattel Inc.

Lego logo. (image form lego.com)

Lego’s amazing success is not by chance, but by a calculated and precise business model incorporated by CEO Jorgen Vig Knudstorp in 2004. This plan, which revolves around bringing it “back to the brick”, initiated Lego’s climb to toy supremacy. The strategy focused on its core products, ignoring brand-stretching, and even selling its theme parks. He also introduced stricter management controls, for example limiting the number of different pieces that the company produced from 12,900 to 7,000.

The balance between tradition and innovation instituted by Mr. Knudstorp has allowed Lego to thrive. It keeps a steady flow of basic preset models as templates for consumers, but its progress onto the big screen has elevated it into a new realm. With its intellectual property the star of the film, a whole line of toys and a new fan base has been created. With a Lego Movie sequel scheduled for released in 2017, and their Ninjago movie—based on Lego’s ninja-themed product range, scheduled for next year, the sky is the limit for Lego.

The Lego Movie poster. (image from imdb.com)

Works Cited

Hansegard, Jens. “Oh, Snap! Lego’s Sales Surpass Mattel.” http://online.wsj.com. Sept. 4, 2014 2014.Web. <http://online.wsj.com/articles/lego-becomes-worlds-largest-toy-maker-on-movie-success-1409820074>.

Nelson, Jacqueline. “Lego’s blueprint for success, one brick at a time.” http://www.theglobeandmail.com. July 17, 2014 2014.Web. <http://www.theglobeandmail.com/report-on-business/legos-blueprint-for-success-one-brick-at-a-time/article19666332/>.

The demise of former movie rental giant Blockbuster is a prime example of the consequences of failing to adapt to consumer trends. The corporation recently closed its last 300 corporate stores. Less than 50 franchises remain open, a far cry from the 6500 stores open in 2010.

Despite popular belief, Blockbuster did not fall because of Netflix; in fact, it had several opportunities to purchase the online company, the first being in the year 2000 for $50 million. Additionally, by 2007, Blockbuster had crushed Netflix with its Total Access online service, with Netflix CEO Reed Hastings receiving permission from his board to begin merger talks with Blockbuster.

Instead of buying the company and securing hegemony of the movie renting industry, Blockbuster turned down the opportunity. A new CEO, James W. Keyes, then introduced a revamped business strategy that involved de-emphasizing the unprofitable Total Access online service, in favor of an in-store, retail-oriented model.

Closing Blockbuster store. (image from startupover.com)

Blockbuster Logo. (image from geek.com)

Netflix, Redbox, and video on-demand services became more cost efficient and cut the revenue of the high cost Blockbuster at the knees. Blockbuster’s ignorance to the developing rental system and refusal to move away from a their prehistoric business plan is what crippled the once mighty chain.

Works Cited

Goldsmith, Jill. “Blockbusted!” www.variety.com. Oct. 9, 2005 2005.Web. <http://variety.com/2005/biz/news/blockbusted-how-technology-and-lack-of-vision-took-down-blockbuster-1117930420/>.