If United Nations was fully funded, why would we need the Arc or social enterprise?

http://cedarfundeng.files.wordpress.com/2012/09/mdgs-eng.jpg

The United Nations (UN) established a great foundation when it comes to addressing numerous world issues through its Millennium Development Goals (MDGs). Without a doubt, the MDGs constructs a framework that many non-profit and for-profit organizations are well aware of and create actionable plans for. This is where Arc and social enterprises come into play.

When it comes to the ‘big picture’, the UN creates a vision for everyone by first addressing the issues, and then continuously evaluating the effectiveness of the goals and actions being taken. The UN does this through annual statistical reports on the improvement of people’s lives, through the tracking of rates for HIV/AIDs, for example. Even if the UN was fully funded, the actions taken to address these global issues may become ineffective due to the various administrative and financial steps the process requires before plans can be executed. The money that may be intended to be used for certain purposes does not necessary arrive there, and can therefore be incredibly inefficient. However, programs such as Arc and social enterprise can take care of the smaller details that largely contribute to the success of the goals. More specific organizations and programs like the Arc generate more efficient processes that are created by passionate entrepreneurs who have the desire to do what they can to make a difference.

http://www.quickmeme.com/meme/355sfc

I never thought a design principle from the US Navy would have its place in creating successful businesses. Keeping it simple may be all it takes to implement and explicitly show customers the company’s value proposition.

In response to Florence Fong’s blog post, I think Costco has definitely established itself as one of the ‘go-to’ warehouses for the most basic products needed for everyday life. Costco keeps it simple by striving to drive sales, by providing customers with the options of the most popular brands, ones that we frequently use. This not only decreases the its inventory and turnover rates, but also its ability to invest in other aspects that Costco perceives as more important. Customer service is probably a good way to go when deciding how to allocate your profits.

http://abcnews.go.com/Business/highest-paying-jobs-retail-revealed/story?id=18872950

One idea I received from Wednesday’s class, is the fact that your employees can essentially be the company’s most loyal customers. If they approve of the company’s shared values, and have them in mind, they are like walking billboards, promoting the company to others through the word of the mouth. This can only be achieved if the company values their employees, which is exactly what Costco aims to do, allowing the company to be ahead of the other major competitors in the market.

Read more about it here.

http://jephmaystruck.com/10-quotes-from-the-new-marketing-text-book-brand-against-the-machine/

It makes complete sense to me when Ries and Trout indicated that being the first in the market, and simply letting customers know about your company and advertised product creates a position in their heads. Everyone is constantly being bombarded with advertisements about products, but to me, this doesn’t mean I will choose these highly advertised products over others that did not hard sell.

As this article revealed, many experiments have showed that just because customers were introduced to a first product, it doesn’t mean they are less likely to choose the second product when given the choice to. The fact that customers choose to continue searching for a different product demonstrates that the psychological idea of the self-perception theory.

I believe that this article didn’t necessary reveal advertising and marketing isn’t important, because it certainly is, as it allows potential customers to know about your products, and give them the extra option when they choose amongst the other competitors. As I learned in psychology class, people naturally need for control – the control of what to buy, instead of constantly influenced and forced what to purchase. Marketing plays with human psychology. Sometimes, the brand is not enough if your product does not satisfy the needs of customers. Other companies are more than willing to satisfy their needs or discover new ways to if your company can’t do so.

Read more about it here.

Great customer service can really help a company in the long run. In this external blog post, Perkins captures the essence of online customer service, and the impact it can make when used “consistently, effectively and correctly” (Perkins). I thought the idea Perkins was exploring connects very well with the concepts that our guest speaker, Danielle, explained in our lecture. The current fast-paced environment that we live in today requires quick, constant, and efficient transactions – a demand that has to be satisfied or customers will easily move along to do business with others. With social media, customers can show both their positive and negative feedbacks to other potential customers. I believe even with negative feedbacks, the company’s service representatives can always take advantage of these comments and proactively addressing the issue and commenting with a solution. Today, social media makes it effortless for potential customers to share their thoughts on a brand, and can help the company build a sustainable comparative advantage.

Screen Shot from Zappos.com | http://www.zappos.com/

Even Zappos, a company we talked extensively about in class, uses the most popular social media to intensify its customer relationships. So even if you don’t want to talk to a real person from the call centre for hours on end, you could always chat with someone on Facebook, Twitter, and many more to come.   Work Cited Perkins, Abby. “Why You Need Social Media for Customer Support.” Small Business Marketing blog from Duct Tape Marketing. 23 Oct. 2014. Web. 6 Nov. 2014.

http://thriftytexan.com/2013/10/hot-21-listerine-coupons-99%C2%A2-at-walgreens/

Marketing and the positioning of a company intrigue me, as does the approach of Listerine over the years. Listerine has the first-mover advantage, as is proposed by Ries and Trout. The evidence also shows that their market share is significantly greater than competing brands, which is a representation of the company’s recognizable brand in the market, especially in the US. However, the Great Recession in the US in 2008 seemed to become a threat for the company, as people are not willing to buy products that are not considered the best amongst the others in the market. Although this seems to be a threat to Listerine, it is interesting to see that the company takes action by establishing labs, and discovering new functions that mouthwashes can bring. This is an accurate example of what Ries and Trout proposed – it is important to always manipulate changes in the market to your advantage rather than resisting it. In addition, Listerine has also been doing its best to differentiate itself, as well as broaden its audience, or its customer segments. In this 2014 Listerine ad, there are many varieties that the company offers, in attempt to capture all audiences, increase its market share once again, and maximize profit by offering a variety of products that solves their customers’ problems.

Read more about it here:

http://www.nytimes.com/2014/09/13/business/adapting-listerine-to-a-global-market.html

BC Hydro’s $8-billion hydroelectric megaproject is a development plan that cannot be easily executed due to the macro-economic, political and other factors prohibiting the project from going forward (O’Neil).

Since constructing this hydroelectric dam involves flooding a vast area of First Nations land in BC, these stakeholders are doing whatever it takes to preserve their monumental land. However, to promote partnership with the First Nations, the Canadian government and BC Hydro must first understand the ultimate concern of the First Nations. If the land is flooded for the development of a hydroelectric project, they will not be able to hunt or fish, which are activities that they do daily as a living, and have become part of their culture. Furthermore, the First Nations are also concerned about the negative impacts that the project will bring to their bands, as the dam will be of close proximity to their living compounds.

To resolve these issues, possible strategies can be to offer and guarantee employment for the First Nations on this project. This can alleviate their concerns on the inability to make a living through fishing and hunting from the area. Investments in research and development can also allow for the population to be more supportive and trusting of this advancement, allowing many stakeholders and industries to benefit.

BC Hydro’s Proposed Site C Dam

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Work Cited

O’Neil, Peter. “First nation chiefs to stage Site C showdown.” www.vancouversun.com N.p., 18 Sept. 2014. Web. 5 Oct. 2014.

http://www.cbc.ca/news/business/blackberry-launches-passport-phone-blend-app-1.2775674

In response to Tianye Guo’s post on “The Come Back of Blackberry”, I would like to create further connections to what she suggested.

I agree with her view on how Blackberry utilizes the strategy of focused differentiation. As mentioned, the smartphone is unique compared to the preexisting smartphones in the market, but I believe this approach also shows how a company can successfully respond to a threat by listening to what their customers has to say, and perhaps repositioning the company from there. A year ago, Blackberry was losing customers to aggressive competitors, but CEO John Chen battled the obstacle with his customer-first repair strategy (CBC). As Chen highlighted, what the company is doing is the right thing to do, as long as the customer likes it (CBC). I believe this strategy puts an emphasis on the importance of value propositions, and how a company can approach business problems by understanding their customer segments, and the problems they would want a company like Blackberry to help them solve. Their new product with the tangible keyboard targets business professionals, which separates Blackberry from the crowd of competitors. Like most smartphones, Blackberry strikes the points of parity, but creates value in their product by creating points of differences, allowing them to be more successful in the industry.

Works Cited

CBC News. “BlackBerry CEO John Chen on his turnaround strategy.” CBCnews.             CBC/Radio Canada, 28 Mar. 2014. Web. 4 Oct. 2014.

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A topic around my dinner table this week encompasses the issue of a $25 checked bag fee for airlines including WestJet and Air Canada (Evans). This issue intrigues me, as my family usually purchases the lowest-fee ticket option, which is the only class that the Air Canada baggage fee applies to. As learned through the business model canvas, Air Canada is altering its value propositions, and providing some of its customers with the choice of only paying for services they require. However, the company continues to provide the service of higher classes to fulfill the preferences of people with higher expectations and incomes.

On one side of the issue, Air Canada could be making more of a profit through ancillary revenues. Like Spirit Airlines, ancillary revenues account for around 40% of their revenue (Pittis). This change in parts of the company’s value propositions can attract more customers, since now commuters who regularly travel with no checked bags can take advantage of not paying the extra fee. However, customers of the economy-class may find it excessive for Air Canada to be charging extra fees, when these expenses should already be included in the ticket.

Through the analyses, as companies are finding news ways to cope with the rising costs of expenses, charging checked baggage fees may just be another strategy that will either bring Air Canada with increased profit, or even a decrease in the number of loyal customers.

Works Cited

Evans, Pete. “Air Canada adds $25 checked bag fee for economy travel.” CBCnews.           CBC/Radio Canada, 18 Sept. 2014. Web. 22 Sept. 2014.

Pittis, Don. “Airfare discounts and the price you pay: Don Pittis.” CBCnews. CBC/Radio Canada, 16 Sept. 2014. Web. 22 Sept. 2014.

CVS Caremark is a drugstore chain that bases most of its sales on tobacco products, but has recently decided to terminate the sales of cigarettes and any related products. By eliminating the cigarettes sales, CVS Caremark will lose $2 billion a year (Strom).

This issue directly relates to the topic of how businesses may have social responsibilities and should make ethical decisions. As Milton Friedman outlines, if corporate executives base their decisions on their “social responsibilities”, then the amount of profit that the companies’ stakeholders can achieve will be reduced (Zimmerli). On the other hand, if the decisions made are unethical or does not take into account any of the company’s social responsibilities, then the sales may also decrease, as a bad reputation will be established. Finding a balance between the two extremes is essential. Like Freeman suggests, businesses can only be successful if all stakeholders, including consumers and shareholders, are taken into consideration (“What”). 

I believe that by no longer selling cigarettes, CVS is sending out messages to other companies and potentially influencing them to diminish the number of available stores for smokers to purchase their cigarettes. This decision has the potential to cause a ripple effect and enable many people to quit smoking. Being socially responsible and ethical may mean that the company is not maximizing profit. But ethical business decisions made can trigger benefits and new opportunities in the market, and add value to the company.

Works Cited 

Strom, Stephanie. “CVS Vows to Quit Selling Tobacco Products.” The New York Times. The New York Times, 5 Feb. 2014. Web. 9 Sept. 2014.

What Is Stakeholder Theory? – R. Edward Freeman. Perf. R. Edward Freeman. 2009.

Zimmerli, Walther, Holzinger, Markus, and Richter, Klaus, eds. Corporate Ethics and Corporate Governance. Berlin/Heidelberg, DEU: Springer, 2007. ProQuest ebrary. Web. 9 September 2014.