Wilson Zhu's Blog

The cigarette industry is a multi-million dollar one despite the fact that sales of cigarettes in Canada have been dropping annually in Canada since 1980. [1] Cigarette company, “Lucky Strike”, has sold 10 billion more packs of cigarettes since it has aired on the television show “Mad Men”. [2] However, this industry looks to be collapsing with the popularization of electronic-cigarettes.

“E-cigs”, are electronic cigarettes designed to help people quit or reduce their smoking by mimicking the same “deep inhaling” sensation without the additional additives. Additional benefits over cigarettes include a cheaper price and being permitted for use where cigarettes are not. Using these qualities as their value proposition, the industry is now a major threat to cigarette companies, with sales estimated to exceed 1 billion dollars in 2013. [3] With the development of a product that has the potential to replace cigarettes, there are questions regarding opportunities in the market. From my research, I believe that a company which is able to simplify the components of electronic cigarettes would be popular. In addition, they could utilize the internet to create an easily-accessible method to purchase their product, something which is hard to come by currently.

Original Article : The Economist
____________

[1] Health Canada

[2] The Daily Mail

[3] Forbes

On April 24 of this year, the Rana Plaza in Bangladesh collapsed, leaving 1,129 dead. [1] Survivors of the accident claim that even though several cracks appeared in the building, they were still instructed to resume work. [2] Let’s not forget that Bangladesh has a history of workplace incidents relating to poor safety regulations.

Shortly following this event, major clothing labels H&M, Zara, and others agreed to sign the “Bangladesh Accord on Factory and Building Safety”. [3] While this agreement intends to protect workers from accidents, it also shows that many companies who outsource have little regard for the safety of their workers. After all, these companies focus on maximizing profit by cutting corners. These corporations could improve wages and safety measures, but that would mean an increase in the production price of their products; this option could upset shareholders and detract customers. We have seen companies like American Apparel, who pay their employees well and still profit financially, but they are considered the minority. [4] It is my belief that because corporations focus so heavily on maximizing profit, a majority of them voluntarily ignore the ethical issues behind their decisions, yet it rarely causes permanent damage to their image.

Original Article: The Guardian

————

Sources:

[1] The Guardian
[2] The New York Times
[3] Clean Clothes Campaign
[4] American Apparel Press Archive