In Xinyu Liu’s blog, he states we-chat, kind of communication app that allows people sending word message and voice message, is commonly used in China. Before the lunching of we-chat, people use traditional communication method, sending message and phone call. After the lunching of we-chat, with the feature of not charging any fee from consumers, it is about to replace the normal message and even phone call.  The number of its consumers rapidly increased to more than 80 million at the end of 2011. We-chat is creating a new way of communication.

Generally, I agree with Xinyu Liu. As a Chinese, it is not hard to see the rapid increase in the number of people begin to use we-chat instead of sending message. This app benefit people a lot by providing free message sending services combined with the creative idea of sending voice messages. Development in technology allows apps like we-chat occurring and gives people more convenient way of communication. For businesses providing telecommunication services, in order to avoid to be replaced by the newly emerged communication apps; they are supposed to focus more on the advancing of technology and take advantage of technology process to create more convenient way of communication.

Resource:

https://blogs.ubc.ca/xinyuliu/2013/11/18/wechat-a-communication-revolution-in-china/

In Peiqi Zhuang’ blog, she mentioned that McDonald would ends the partnership with Heinz. Competition in the market ended this partnership and replaced Heinz by Brazil-based 3G Capital. She also states that this action taken by McDonald makes both businesses and consumers get impacted. Especially for Heinz that will lose revenue from the reduction in demand. Generally she thinks business should make decision after taking consideration of all the potential results and conflicts that might have on different groups of people.

Personally, I agree with her. For McDonald, changing the ketchup supplier may lower the cost to increase the profit. However, this may also result in disappointing consumers who may decide to switch to other fast food restaurant. Therefore drive down the revenue. In COMM 101 class, we learned the concept of “stakeholders” which are people or groups of people who can be affected by, and therefore have an interest in any action by a business. We also know that when a business makes a decision, all of the stakeholders may be impacted. So conflicts may occur between different groups of stakeholders. Taking into account the potential conflicts, coming up with solutions and making decision that contribute to the goal of the business is responsibility for managers.

Resource:

https://blogs.ubc.ca/spainie/2013/11/17/mcdonalds-breaks-the-partnership-with-heinz/

Apple Computer, Inc., normally known as Apple Inc., is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software and personal computers. Apple is the world’s second-largest information technology company by revenue after Samsung Electronicsand. On November 12^th, Apple announced its iPad Mini with retina display will be available beginning Tuesday starting at $399 US in the United States. Apple launched the thinner and lighter version of its tablet called “iPad Air” on October 23 and said an upgraded version of the iPad Mini will go on sale in November. The iPad Mini includes a higher resolution screen and the A7 chip used in iPad Air and the new iPhone 5S.

Recent years, Apple has lunched several new products and kept updating the existing products. Innovation can be classified as one of the reasons why Apple’s success. Technology progress makse their product more useful and customized. The lunching of new products and updated existing products not only bring huge amount revenue, but also make Apple’s product more competitive. However, there are accident happened when people using Apple’s products, for example I phone explosion. For technology business like Apple, speedy innovation to meet consumers’ need is essential, but concentrate on the quality of products is also of great importance.

Resource:

http://www.bnn.ca/News/2013/11/12/Apples-iPad-Mini-with-retina-display-to-go-on-sale-Tuesday.aspx

http://en.wikipedia.org/wiki/Apple_Inc.

Lockheed Martinis Corp, one of the world’s largest defense contractors, is an American global aerospace, defense, security, and advanced Technology company with worldwide interests. Lockheed headquarters in Bethesda, Maryland, in the Washington Metropolitan Area and employs 116,000 people worldwide.

On Thursday Lockheed Martinis announced that they plan to cut 4,000 jobs, more than 3 percent of its worldwide workforce, to cope with declines in U.S. spending. By middle 2015 they will close operations in Akron, Ohio; Newtown, Pennsylvania; Goodyear, Arizona, and Horizon City, Texas, The company also said four buildings at its Sunnyvale, California, operation would also be shuttered.

Recently, U.S spending is decreasing while the cost of labor keeps growing up. Business such as Lockheed Martinis Corp try to maintain profit margin by decreasing cost through cutting number of people employed. For the country, this result in higher the unemployment rate. For the business, firing this huge amount of employees may negatively affect the reputation and demotivated employed workers, which may lead inferior product. Additionally, shouting down may operations, in the long run, could make the business lack of ability to meet the increasing demand, which will disappointed consumers and even worse the reputation. Lockheed Martinis Corp should take consideration the long run effect and take the social responsibility to provide jod opportunities.

Resource:

http://en.wikipedia.org/wiki/Lockheed_Martin

http://www.bnn.ca/News/2013/11/14/Lockheed-to-cut-4000-jobs-as-US-spending-wanes.aspx

General Motors Company LLC, commonly known as GM, is an American multinational holding corporation headquartered in Detroit, Michigan. GM through its subsidiaries, designs, manufactures markets and distributes vehicles and vehicle parts and sells financial services. In 2013 GM has recalled nearly 15,000 Chevrolet Malibu sedans to check for faulty wiring harnesses that could cause a fire.

On 2013 Malibus equipped with optional power front seats, GM said the wiring harness could wear against the seat frame, which could result in “sparking, flickering lights, melted wiring, smoke or a fire.” GM also said it is aware of two fires in unattended vehicles and “there are no known crashes or injuries” related to the condition.

This huge amount recall has a serious negative impact on the reputation for GM and made consumers question the safety level of using GM’s vehicles. In recent years GM is not the only vehicle businesses that recall their product because of inferior quality components. Recalling inferior vehicle is an action the business taking responsibility of consumers. However, compare with taking action after accident happened, it is more important that vehicle manufactures ensure the quality and safety level of their products before the product selling in the market.

Resource:

http://www.bnn.ca/News/2013/11/15/GM-recalls-15000-Malibu-sedans-for-fire-threat.aspx

IKEA，the world’s largest furniture retailer, is a Swedish company registered in the Netherlands that designs and sells ready-to-assemble furniture, appliances, and home accessories. Thursday, IKEA Canada announced that it has purchased a 46-megawatt wind farm in Pincher Creek, Alberta, which is expected to generate twice the total energy consumption of its stores across Canada.

If as expected, this investment in wind farm will bring IKEA and consumers a win-win situation. For IKEA, cost of energy and operating will be reduced and a good public image will be built. For consumer, as IKEA stated they will pass the benefits from investing in wind farm to consumers by continuing to offer high quality home furnishings at low prices. Additionally, IKEA is supporting the transition to a low-carbon future.

This action taken by IKEA makes people think about the rest more than 5,000-megawatts of untapped and affordable wind capacity in Alberta. Everyday emission of Carbon dioxide is threating our world environment. With the great availability of using the clean energy, both government and companies should take their responsibility to protect environment. Government should invest in clean energy and subsidize companies that invest in using clean energy, such as IKEA. Business organizations can take the opportunities to join the group of supporting lower-carbon future, not only for own benefit to reduce cost and good reputation, but also for taking corporate social responsibility and save world’s environment.

resource:

http://www.bnn.ca/News/2013/11/14/IKEA-eyes-low-carbon-future-with-Alberta-wind-energy-project.aspx

Air Canada shares hit their highest point in stock in more than a year on last Friday. This is achieved by their cost cutting plan and a strong load factor.

As stated by the carrier in Air Canada, the cost per available mile decrease by between 3 and 3.5 percent compare with the cost in last year. They decreased costs in many aspects including food, beverages, distributions and supply. Furthermore, the revenue generated by the Pacific market contributed a lot to stronger the highest point of their stock. Air Canada has expanded their international market by increasing the number of international flights and flaying routes. The airline’s system load factor which used to measure the average filled seats across the flights also decreased compare with last year.

The good out come generated form reaching highest stock value leaded by the costs cutting is not only internal but also external. For internal benefit, the cost saving lead bigger difference between revenue and cost, in other words, profit is increased. However, the customer’s satisfaction might decrease. For the external gain is that both CIBC and BMO increased their target share price of Air Canada. 

Resources:http://www.bnn.ca/News/2013/10/4/Air-Canada-shares-rally-on-lower-costs-higher-loads.aspx

Ford Motor Company (also known as Ford) is an American multinational automaker, sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand. According to the company executives on Monday, Ford is overhauling its production methods in order to reduce the downtime during production and to increase the flexibility during the production.

According to Ford, the global expansion began in 2011.The new aims, if things happen as Ford expected, by 2015 there will be new assembly plants in China and India, additionally with new power train plants in Brazil, China, India and Russia. By 2017, the number of global vehicle platforms should be reduced to nine from 15. For maximizing the efficiency, every plant will be supposed to produce average four different vehicles. Additionally, as Ford stated, by 2017 90 percent of their factories in different countries will boost production run time by more than 30 percent and production will run three shifts a day.

The international location by Ford gives more opportunities to access the resources, lower transportation costs and collect local market information such as changes in consumer tastes. Combined with more flexible production methods which allow quick respond to changing consumer tastes, the valuable market information will help to generate more profits for Ford. Though the costs of building new plants and changing production methods are high, the benefit will be seen in the long run.

Burger King, based in Miami, is the second-largest fast food hamburger chain in the world with locations in 80 countries. Recently, Burger King launched their new product, fries with lower calories and some fat. Compare with Burger King’s biggest competitor McDonald’s fries, the new fries has 40% less fat and 30% fewer calories. By working with the one third of all frozen French fries supplier in the world, the new fries were developed. In addition, according to Burger King, McCain can’t sell the fries to other fast-food clients.

This new launched fries may lead a huge increase in Burger King’s profits. The reason is that for fast food companies, selling fries generates huge profits since there is usually a huge difference between the cost of purchasing frozen fries and the price of fries. The increasing sales of the new launched fries make this outcome better. Moreover, the new fries help Burger King to attract more customers. They deal with the growing concern of obesity and health issue. Burger King also names the new launched fries differently in different regions, for example, in English-speaking Canada, the fries are called Gratifries while in Quebec, they are called Magnifrites. As Burger King North America president Alex Macedo explained, using different name because they tested better with consumers. These all increase competiveness of Burger King when compete with its major competitor McDonald.

Link:http://www.bnn.ca/News/2013/10/4/Burger-King-tries-to-fatten-margins-with-skinny-fries.aspx

Nowadays, the launch of I phone 5s and I phone 5c attract most people’s attention. However, as there were a number of incidents of explosion of I phone 5, the safety issue of new launched products become a concern for some consumers. Will Apple take the responsibility and deal with this problem when producing the new products?

Take an example of an I phone 5 explosion incident in China. As Da Lian reports from Everything News, I phone 5 exploded while a woman was talking on the phone and caused sustained eye injuries to the woman. This event ended with the representative from Apple stated that the company would further investigate the alleged explosion and normally the incident would not be covered by warranty. Apple also states to deal with these incidents; they launch the Takeback Program, charging $10 to replace third-party USB power adapters with genuine Apple adapters    .

Is this respond from Apple an action with social responsibility? I doubt about it. Though Apple promised to investigate the incident, they did not promise to pay for the woman’s injuries. Personally, the Takeback Program may help to increase the level of safety; however Apple did not premise using genuine Apple adapters would stop the explosion. Moreover, charging fees for the replacement may also be a way to increase their profits. From many people’s view, Apple work as a mark leader in the industry, which is supposed to set a good example. Instead of concentrating on increasing their profits, they should also take the social responsibility and ensure the safety of using their products.

https://www.youtube.com/watch?v=L0iEP98ER2w&noredirect=1