Yue Cao's blog

In Amazon, the busiest days are during holidays, and it’s also the best time for company to make profit. There is a heated debate about whether Amazon should hire more helpers or give employees break . “Amazon company said it will hire 80,000 seasonal employees this year, up from 50,000 two years ago.”

I disagree with Amazon ‘s act. If it continues to hire employees during the holidays,it tends to cause growing hatred by employees. The employee satisfaction is very important especially in these kind of service requires lots of energy and patience in repeating the boring work.If company didn ’t deal with it well, employees are easily quit, which leads company to loss the most vital human resources .Since production line of Amazon is mainly assembling products ,the lack of labor lags efficiency of key activities directly. Then companies needs extra time to train new employees ,which causes the delay of delivery and whole production line. Amazon should focus on HR management and enhance relationship with employees like Costco .The CEO in Costco states that employees deserve thanksgiving off and the Costco closed all day during holidays .The employees turnover rate in Costco is only 12% compared with 20% in Amazon.

reference from (1)http://money.cnn.com/2014/10/16/news/companies/amazon-holiday-hiring/index.html?iid=EL(2)http://money.cnn.com/2014/10/28/news/companies/costco-thanksgiving-closed/

http://money.cnn.com/2014/10/16/news/companies/amazon-holiday-hiring/index.html?iid=EL

http://adamhartung.com/wp-content/uploads/santa-claus-coca-cola.jpg

As the famous long-history beverage seller ,Coca recently experiences a decline in sales according to its third quarter report.The company focuses on the old forum to advertise Cola ,which neglects the fact that Cola is abandoned by customers because of its unhealthy content.Adam Huang states that CEO’s decision about firing marketing people isn’t appropriate. I agree with this.

Coca is the first one to sell cola in customers’ mind which helps Coca to win in the rivalry competing with companies like Pepsi.Its long-history brand is the strength of the company. Now this strength meets the threat about customers’ preference change(social-factor shifts in macro environment). It’s marketing executive’s mistake as he didn’t do enough market research to realize customers’ current mind.However,he did a great job in assisting company to meet the great opportunity of cooperating with Olympics and World cup in global market . Scoot should be given incentive compensation . His quit shows the wrong HR management of company .If company doesn’t adjust the false management,the whole inspiration of workers will be discouraged .Company should reward scott due to his outstanding contribution in allowing cooperating while still hoping for the correct market method.To attract customers again, marketing persons should focus on the advertising of “ZERO” to impress customer that Cocacola is the first to sell sugarless cola.It should be changed from target niche market (young people) to all-age group by selling its PoD-“ZERO” as increasing concern of health issue provides opportunity for the company.

Recently,Sony closed the production of OLED television and the whole business falls down. There are many reasons inside its failure,the most important one is the poor management about products. It is mainly about lack of disruptive innovation.In 1980,Sony invented Walkman and gained large market popularity.However,with the the increasing technology advance in macro environment,customers prefer high-tech staff like ipod from Apple.Sony has projected that the trend of market needs of digital music player,but it didn’t put into act,which causes Apple apply the digitization and took over to be the first one to sell ipod with relative low price.It changed the customers’ mind as well as market demand situation which used to be owned by walkman. They also made same mistakes in producing tablet PC due to lack of SWOT and Importance-urgency analysis.

Another reason is poor leading effect of CEO .The aim of the business is just gaining profit .CEO became conservative and unwilling to take risk to innovate .This causes all employees less inspired by this entrepreneurship culture and executives always decide in hesitation which loses the opportunity of leading the market.HR management also contains mistakes about lacking reasonable treatment to workers due to the S from Pest.Specifically, Sony follows the stereotype of running business in the group in Japanese culture while individual worker is concerned in western countries.Sony add pressure to workers with strict timetable to achieve total profit aim and ignore their satisfaction.While in Google, their office atmosphere is extremely relaxing and creative.The less-experienced HR management is non-neglected when analyzing the company’s future development.

reference:http://www.post-gazette.com/business/tech-news/2012/04/15/How-the-Tech-Parade-Passed-Sony-By/stories/201204150180http://gizmodo.com/5902234/how-it-all-went-wrong-for-sony

I agree with Kevin’s point of view about Tesla’s changed policy of patent. This is also a very good way to enable Tesla’s sustainability in the long term.. By sharing the technology, there are more electric cars being sold to public and the serious environment pollution are going to be alleviated. Although patent is of high importance, especially in comprubtive industry as it’s a way to increase company’s strength,Tesla have already impose the first-one image in customers’ mind and it is now become the first one to share technology and create benefits for society. Due to the stereotype that 60% of consumers buy products due to its brand, Musk proposition its brand successfully by fulfilling CSR.

According to Triple Bottom Line, the company has to concern about three factor: people, planet and profit. Tesla do well in waste reduction and address urgent environment problem. It also increase customer satisfaction as people of different salary level can enjoy high tech. Though it decreases economic profit in short run, it adds value for own business thus last in long term in competition.
https://www.google.ca/search?q=tesla+patent+open&espv=2&biw=1366&bih=621&source=lnms&tbm=isch&sa=X&ei=_HZiVLrBFZHUoASs4ICYCw&ved=0CAYQ_AUoAQ

http://image.so.com/v?ie=utf-8&q=dell&src=tab_se&fromurl=http%3A%2F%2Fnews.itxinwen.com%2F2013%2F0206%2F468466.shtml
Dell announced to bow out of stock market in 29th Oct. 2013 with $24.4 billion buyout. After one year, without spending on shares,Dell’s cash flow increased from 30 to 50 hundred million dollar expected in January . 2015,which enables to reduce liability from 180 to 150 hundred million. This allows Dell’s market value increases which shows the success of this decision .

I agree with this act due to following analysis of Dell’s circumstances. Initially,Dell wants to take a qualitative change including service type.which was not supported by shareholders. The Macro economics in America allows little profit for PC industry, this increases rivalry and threat of substitutes. Unlike Apply also selling phones, Dell has weakness that the key activity is solely producing PC .In addition, the rapid growth of T from PEST and threat from tablets rivals causes the sales of Dell declines in past 3 years. This situation put the change into high importance-emergency level which forces Dell to bow out of stock market. However, in the initial phrases it continues cost leadership strategy but” gross profit decreases by 72%”.In my opinion, This is still accessible as Microsoft offered 20 hundred million dollar loan with 11% investment turnover rate. This inspires me to think that since PC is a industry faced with high macro technology advance, the PC companies should use its diverse strength to meet the opportunity of cooperating with other firms ,which they can identify customers’ need clearly and enhance CSV by building supportive industry clusters with shared communication about technology. “If a company has software, for example, but doesn’t understand how to get it to market, or how to market it to a niche of potential customers, we’ll hook them up with someone who can help them do it” said by Mr. Mullen . The success of Dell’s start-up program with Fouders club50 also verify my idea.

reference:
http://boss.blogs.nytimes.com/2014/07/03/dell-expands-a-program-for-tech-start-ups/?_r=0

Alibaba enducted IPO in 19th December in America, and its stock value is about 34 billion dollar.This demonstrates the huge success for Alibaba and for the E-commerce industry as well. The invent of E-commerce is the excellent use of disruptive innovation. It applies the high technology of internet and allows people to shop online which can be regarded as customers’ pain reliever, as it brings numerous convenience to customers.
The emerge of E-commerce is main drive force for Alibaba to stand out in market by the cost leadership strategy. The retailers on Alibaba can sell at low price due to the availability of its low cost and following three mesures.The first is It directly sells products online and reduce retailers’ fixed cost about using a non-virtual stores. The second is Alibaba doesn’t have any inventory.Based on the inventory turnover ratio(=costs of goods sold/inventory),the higher the results,the faster cash flow can be turned over .Without inventory, producers can be more flexible to give expense in the purchasing and selling(operating) activity,which decrease the risk of shutting down.Since inventory is current asset ,Alibaba also allows retailers to reduce liquidity ratio(CA/CL) to ensure high ability of paying off debt.Lastly , alibaba ’s delivery channel is through mailing which is cheaper than traditional company’s delivery department. By using E-commerce, alibaba can also have opportunity about cooperating with online banking like Paypal and other companies through the wide-spread internet.E-commerce have high potential to achieve largest profitability in nowadays business.

reference :http://www.chinadaily.com.cn/china/2014-03/16/content_17350114.htmhttp://www.chinadaily.com.cn/bizchina/tech/2014-02/12/content_17278121.htm

In siyu’s blog, she states that introducing 5c isn ’t a good choice for Apple as there are many competitors aimed at middle-income group . I disagree with that .Apple product uses the focus strategy(differentiation) to sell its uniqueness to royalty customers. After launching 5c ,it applies differentiation strategy and expands its customer segment to include middle-range customers. There are people who are unwilling to switch from 5s to 5c,but low-income customers who can’t afford 5s are willing to pay for 5c no matter the uniqueness of 5c is less attractive .They are still attracted by 5c’s brand and superior quality compared with other competitiors, which boosts total sales.

Meanwhile, the cost leadership strategy is also incurred by introducing 5c to the broader market segment . Low-income group are attracted by the price advantage and tend to buy more due to Apple’ PoD , which adds Apple’s force to compete in rivalry. Despite that, Apple owns customers’ loyalty due to previous value proposition. Loyal customers segment demonstrate a part of buyer power of Apple, and it also adds strength by competing with other rivals who only offer the similar price.
https://www.google.ca/search?q=5c+5s+%E5%8C%BA%E5%88%AB&espv=2&biw=1366&bih=621&source=lnms&tbm=isch&sa=X&ei=GHViVLvPO8W7ogSb24KoBw&ved=0CAYQ_AUoAQ

http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html

First nation people announced that they fold New Prosperity Mine into tribal park areas, which states that they are against the Mining industry in order to protect natural habitats.

Based on PEST analysis, the S-social and cultural factor in Macro environment influences New Prosperity mine’ development. Specifically, first nation people regard tribal park as a land of their “cultural, heritage and ecological values”. They have ownership of the land and responsibility to maintain their heritage-tribal park. The concept of values decides the survival of $1.1 billion gold-copper project of New Prosperity. New Prosperity’s key activities have to be stopped due to social effect. The revenue stream shrinks .Key resource including land resources and human resource reduces as first nation people are unwilling to offer them natural resource and native employees.

First nation people’s value about tribal park’s environment and heritage imposes a threat to New Prosperity. In SWOT, New Prosperity’ weakness- factory site decides that the validity of first nation ‘s threat.First nation enforces the supplier power and disability of barrier to enter to mining industry, which restricts company and disables the opportunity from abundant key resource.

word cited from http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html?__federated=1#ixzz3ITFjrOS0

http://www.pcmag.com/slideshow_viewer/0,3253,l=329107&a=327219&po=6,00.aspRecently,

Apple company launches a new product.It is called Apple Watch which is basically a watch but includes lots of brand-new items to attrack customers.New apple watch is in great advantage of winning numerous custoners.First of all,its proposition is appropriate.It mainly focuses on Royality ,thus providing high-class service through their products.Apple company chooses the right time to to become a leader in customers’ mind due to the high-tech stuff of watch like receiving messages,siri,measuring heart rate when exercising.Though Sumsung also launches watch in accordance with smart phone, the differientiation value is much less competitive than Apple Watch.

The name is another factor that has impact in boosting sales.Apple choose Apple Watch to title the new products,which delivers the important information to customers that it’s another “Apple” stuff.Many customers are reminded of this and consume much due to the effect of brand.Despite that,the fuction of Apple watch not only creates
values proposition like uniqness to customers,it also relieves customers’s pain ,that is to say,the function of receiving message from watch prevents unconvenience that customers need use phone to see messages everytime.All of these position target market right and gain advantage in customers’ decision making.

http://www.nytimes.com/2014/02/06/business/cvs-plans-to-end-sales-of-tobacco-products-by-october.html?_r=0http://www.nytimes.com/2014/02/06/business/cvs-plans-to-end-sales-of-tobacco-products-by-october.html?_r=0

CVS drugstore restricts smoking by stopping selling cigarettes .It emphasizes that CVS executives fulfill their social responsibility as businessmen. This act will reduce the sales profit of customers’ buying cigarettes and other byproducts (gum and so on); that is to say, executive uses others’ money to illustrate social responsibility, because the $2-billion-decreases will impose financial burden on employees or stakeholders. However, this loss is only in short term. According to Freeman’s stakeholders’ theory, “the goal of company is to guarantee interest of consumers, suppliers etc. going to the same direction”. As CVS also helps patients cure illness related to smoking, “it’s hypocritical if they don’t ban selling cigarettes”, said by Dr. Brawley. CVS executive actually wins long-term potential profit for company as he gains reputation for company, at the same time, contributes to the decline of smoking rate and death rate which can be regarded as clients’ health insurance. This can also generate a way to make up CVS’s lost revenue and income. In some respects, CVS executive’s decision imposes tax on cigarettes. It puts executive’s function into a political principle. Executive ’s act weighs more than government’s imposing taxes(although reduces 14% rate in New York) as “executive’s exercise of social responsibility is quicker to solve urgent problems” according to Fieldman . CVS’s banning cigarettes also creates competitors, but his measure should be adopted by other competitors to exert this “considerable impact “ for the sake of the social responsibility of all executives in all types of companies as a whole, as “we can’t isolate functions in one company”according to Freeman.We should not separate every company executive’s the social responsibility , as Fielman said “collective ends can be attained without collectivist means” and “unanimity of market mechanism is not always feasible”,so companies should follow the “conformity of political mechanism”.

reference

http://site.ebrary.com/lib/ubc/reader.action?docID=10187339&ppg=171