In past few years, Blackberry Ltd. has faced plenty of different kinds of lawsuit. The most recent class action suit happened on 4th October is about the company misled their investors in terms of company’s future. The lawsuit said that the Blackberry 10 didn’t well-accepted by the market, so they decided to book a billion dollars in losses and layoff 40% employees to reduce the cost. Due to that fact, their share prices will repeat same tragedy as they did last month.

Employees are the core part of a company, especially for innovations. However, Blackberry fired approximately 4,500 labors to cut down the work force which means the maker of new Blackberry product is gone. Therefore, the company now offers only four new phones instead of six.

A few years ago, Blackberry Smartphone ranked nearly top on the market but after their industry rivals (such as: Apple, Samsung, etc) come to compete, they gradually fall behind. Competitors are everywhere, thus internal operation and speed of innovation must be the key factor of a technology company’s success.

Reference:
Austen, Ian. “BlackBerry to Cut 40% of Work Force After Big Loss.” The New York Times. N.p., 20 Sept. 2013. Web. 7 Oct. 2013.<http://www.nytimes.com/2013/09/21/technology/blackberry-plans-to-cut-4500-jobs.html>.

Friend, David. “The Globe and Mail.” The Globe and Mail. The Canadian Press, 04 Oct. 2013. Web. 07 Oct. 2013.<http://www.theglobeandmail.com/report-on-business/blackberry-hit-with-securities-shareholder-class-action/article14713440/>.

In 2007, Starbucks did really worse on the NASDAQ exchange and its stock prices fell by 42%, that is also the reason why their CEO Howard Schultz came back replaces Jim Donald to dissolve the problem. They admitted that they are going to fast on the market so that ignored experiences of customers. Compare to the McDonald’s a decade ago, they are in the same situation—overexpansion.

Starbucks is a café which suppose to be involved with “romance and theatre”, but as expansion goes by, they regarded higher on the quantity but not quality. For instance, they start using automatic variety instead of hand-pull machine to speed up their service.

For Business part, it is quite important to do the market research including customers’ demand before expanding the store chain to avoid troubles like producer surplus and lower value proposition of a brand. Always put quality in the first place as well as keep them in the right track of theme would also be a better choice for producers. In conclusion, a firm may not gain much more profit if they over expand a brand in a saturated market.

Reference:
“Starbucks Ousts Its Boss and Brings Back Its Founder as a New Threat Emerges.” The Economist.com. N.p., 10th Jan. 2008. Web. 5th Oct. 2013.<http://www.economist.com/node/10498747?zid=293&ah=e50f636873b42369614615ba3c16df4a>.

On August 5th New Zealand’s Fonterra Company was reported three batches of dairy which contained clostridium botulinum bacteria went to Chinese market because of dirty pipe used in the factory. As the world leading diary producer, it ruins good reputations for high quality food and the slogan “100% pure New Zealand ”.

According to the news from the Economist, Fonterra’s scandal was really detrimental because bacteria in the whey named clostridium, linked to botulism can lead to plenty of diseases such as “Symptoms include nausea, vomiting and diarrhea” It will have a long-term impact for their company to regulate themselves and they not only need to recall all the dairy product from the market all over the world but also need to response effectively to the consumers. Moreover, this scandal will change the brand proposition, people will not willing to rank diary factories in New Zealand the leading one anymore and it is quite difficult to erase this world-wide negative news from their mind. Since the demand decrease, exporters will not import goods which make no profit for them.

References：
“New Zealand Dairy Giant Issues Global Botulism Alert.” ABC News. N.p., 3 Aug. 2013. Web. 10 Oct. 2013. <http://www.abc.net.au/news/2013-08-03/new-zealand-dairy-giant-issues-global-botulism-alert/4863344>.

Tajitsu, Naomi, and Adam Jourdan. “Scare or No Scare, Customers Have Little Choice but Fonterra.” Reuters. Thomson Reuters, 29 Aug. 2013. Web. 03 Oct. 2013.<http://www.reuters.com/article/2013/08/29/us-newzealand-milk-fonterra-idUSBRE97S16720130829>.