In his blogpost, fellow classmate Troy McGee identifies a gym that targets first-time gym goers. It offers a unique business model in the sense that, unlike most costly gyms, membership is offered at a relatively low price to encourage more Canadians to join. To overcome initial intimidation of first coming to the gym, Planet Fitness offers “judgement free zones” where members do not need to feel conscious about their level of fitness . Their low prices also attract those who might not necessarily afford to go the gym. Since 80% of people do not have membership, this business model offers their services to a large target audience.

I believe this gym has the potential to be successful as a smaller business. I know for myself, the greatest reason for not joining a gym is due to their high prices. Since they are the first to target this audience, they will not be affected by potential competitors. This may provide a sense of discrimination due to the fact that they are ultimately discouraging hard core body builders and fitness enthusiasts from using their facilities with their “no lunks” policy. So if people who were initially out of shape become fit from going to the gym, will they stop working out there and move on to more traditional gyms?

References:

https://blogs.ubc.ca/troymcgee/

http://yourmarketingco.com/wp-content/uploads/2013/03/plentfitness.jpg

After reading fellow classmates post Online vs in store shopping, I realized the changes in consumer trends and buying practices. It makes sense that customers have slowly stopped physically going to these stores when they can purchase items from the comfort of their own home. Not only is this a convenient alternative, but it is also cheaper. Less time is invested in going to the store and many companies provide free shipping. Lanny mentioned how Staples decided to close 15 shops in Canada due to increased competition and customer preference to shop online. It makes sense that Staples is greatly effected by the increase in online shopping, as stationary products are relatively standard — unlike clothes that fit differently on various people.

Not only is this a cheap alternative for the customers, but companies also benefit from the decrease in costs as rent, utility and staff no longer need to be accounted for. Perhaps this is the way of the future, seeing as it is beneficial to both the customer and provider. With online shipping, however, the instant competition is much greater than a retail storefront. Selling products online usually means that there are multiple competitors selling the same things that you are. Thus, with a product that is more generic, a retail storefront might be more advantageous.

References:

https://blogs.ubc.ca/lpong/

http://infotel.lk/2014/wp-content/uploads/2014/10/online-shopping.jpg

The United Nations can only go so far as to facilitate and aid those who are in need. United Nations, Arc and social enterprise embody the basic principal of assisting the less fortunate, but they are unique in their missions. While the United Nations works on a broad mission statement, they are best known for their humanitarian assistances based on encouraging peace and security. Arc, on the other hand, is focused on local business management and leadership. They have a more specific goal of fuelling entrepreneurship and producing long-term sustainability in local communities. Social enterprises focuses more towards improving human and environmental well-being rather than maximizing profits.

The fact of the matter is, there is too many people placed in unfortunate situations in the world, that it is necessary for more than one organization to assist these people. Sometimes, we feel as though we are helpless to the circumstances of people in less fortunate areas, however, Arc provides a place in which students are given the opportunity to use what they learn in the classroom to make a difference in someone’s life. Unless directly involved in the United Nations, it is hard to feel as though you have made a difference in someone’s life. Arc works by sharing ideas and knowledge between different communities. As mentioned in a previous blog-post about the Osoyoos Indian Band in the Okanagan, it is sometimes necessary for external parties (in this case UBC) to assist those who are less knowledgable about business management and entrepreneurship. This is beneficial in the long-run as it provides long-term jobs and, more importantly, knowledge that can be passed down to future generations.

References:

Upward Arc

http://www.sauder.ubc.ca/Global_Reach/ARC_Initiative/Programs

http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/day-to-day/can-fair-trade-boutique-expand-without-alienating-customers/article4405520/

http://skollworldforum.org/about/what-is-social-entrepreneurship/

For most companies a strong company structure is essential in successful output. However, as we’ve seen with the example of Zappos, the organizational culture of companies is evolving in a way that flattens the management hierarchy.

The article talks about the organizational culture of a Valve Corp., a videogame making company, Valve Corp. in which there are 300 people without promotions or titles and no official bosses. Desks are mounted on wheels, giving employees the ability to move around the work area as they please. In addition, there are no assigned managers or projects. In fact, peers determine pay and the employees themselves establish the length of workday. So, how exactly does a company like this get anything done effectively?

There have been mixed reviews to the company’s unconventional strategy, but for the most part, they have proven themselves to be successful. The lack of organizational hierarchy has lead to increased motivation and flexibility that, in the long run, would achieve greater productivity, as employees are not constraint by stringent work structures. The evolution of the top-down culture has created a change in the top-down language used among employees to talk about office productivity. A natural ‘leader’ typically emerges in a project and disagreements usually denote an ineffective project. This strategy enables employees to encourage each other and collectively person the role of manager. While it may be chaotic at time, a greater sense of trust and freedom is established.

Since video game making is largely based on creativity and technological knowledge, this form of structure can work effectively in a work environment where individual thinking is encouraged. Perhaps companies like Zappos and Valve Corp. are trading the path of company structure today, revolutionizing how business is done.

References:
http://static.giantbomb.com/uploads/original/10/109124/2164524-archimedes.jpg

http://www.integralgroup.com/wp-content/uploads/2013/02/clifbarheadquarters-550×385.jpg

http://online.wsj.com/news/articles/SB10001424052702303379204577474953586383604?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303379204577474953586383604.html

For a lot of people in the Sauder School of Business, the ultimate dream is to start a company. But what exactly are the limitations and barriers for these potential entrepreneurs and how can they overcome them?

Trunk states that the biggest barrier is finding a great partner. In order to do this, you must identify and clearly understand your shortcomings. You need to find a personality that compliments yours where their strengths balance out your shortcomings.

The second tip is to grow your network. You need to find people who are completely different from you – people who aren’t necessarily in your Myers Briggs type.

The third is to typecast yourself. There are many correlations between the business industry and Hollywood, in the sense that its all about the image you present to potential partners. You need to identify what makes you different and attract people by honing in on the characteristic that makes you stand out.

From this, we can see that business is all about variety and well roundedness. A successful start-up company needs people who are completely unique from one another and are able to come together in a working environment.

References:
http://blog.1click.io/wp-content/uploads/2014/08/benefits-of-being-an-entrepreneur.jpg

http://unctad.org/en/PublishingImages/entrepreneurship_area1.jpg

Your biggest barrier to starting a business

When the topic of First Nation reserves is brought up, many people have an image of a community of dilapidated homes and unemployment. Though the federal government invests billions of dollars in these reserves, unsuccessful self-governance among other social issues inhibits many from gaining economic and social stability. Once afflicted by the same problems of poverty, crime and violence, Osoyoos Indian Band in Southern Okanagan has become one of the most prosperous First Nation reserve in Canada, largely due their Chief Clarence Louie.

Since Louie became chief in 1984, Osoyoos has expanded greatly from the vineyard and campground it once was. Realized the need for economic development and outside assistance he partnered with experts like Sutherland to help train native inhabitants as many lacked basic education and job ethics. In 1998, Louie and his council established Osoyoos Indian Band Development Corp. and hired non-native business professionals as advisors. Over the course of the years, they developed a successful Golf course, vineyard, campground and RV park. Some of the most profitable tourist attractions are the Nk’Mip Cellars, named by Access Magazine as the best winery in BC in 2012. 49% of the winery is owned by Constellation Brands Inc., (the world’s leading wine producer).

Louie sought a solution that created long-term jobs rather than rely solely on land leased by outside companies (as many other reserves have done) in what he calls “rocking chair money”. While some may argue that this economic development may lead to assimilation, poverty will disintegrate tradition and culture much faster without any benefits. He needed non-native professionals who were more knowledgeable about entrepreneurship and business management.

References:
http://d1vmp8zzttzftq.cloudfront.net/wp-content/uploads/2012/07/view-of-vineyards-and-orchards-in-osoyoos-okanagan-valley-British-Colombia-Canada-1600×1062.jpg

http://www.canadianbusiness.com/wp-content/uploads/2013/02/clarence-original.jpg

http://www.theglobeandmail.com/report-on-business/rob-magazine/clarence-louie-feature/article18913980/