Crowdfunding has become very popular amongst aspiring entrepreneurs to “test the waters” with their ideas and receive some more financial backing. Although enabling more concepts and potential products to come to fruition from those who might not have the financial stability to do so, it also brings a lot of risk. In COMM 101, the viability of Kickstarters have been discussed, specifically from the perspective of the individual(s) behind a certain Kickstarter. This article looks at Kickstarters from the other side of the relationship. In particular, those that succeed in receiving funding, but fail to deliver a functioning product.

When a Kickstarter product fails to meet key objectives, backers are understandably upset. MyIDkey and Kreyos are two examples from the article which ended in disaster due to issues such as lack of clear objectives and manufacturing issues, cumulating in substantial losses in capital which neither company can afford.

The fact that Kickstarter is in no way a “shopping centre” for new innovative products is an important concept to grasp especially for the “victims” of failed projects who treat it as such. Despite the fact that many companies do manage to deliver a working product, backers should not be expecting a 100% success rate for any idea they put their money towards.

Image: http://lockerdome.com/6350813287169345/6976134722096148

https://www.kickstarter.com/?ref=nav

http://arstechnica.com/business/2014/10/the-ugly-afterlife-of-crowdfunding-projects-that-never-ship-and-never-end/

For most companies, people who work full time, receive regular pay and wears a company uniform to work would be considered an employee. From this article, FedEx is not one of those companies. FedEx drivers are instead treated as independent contractors and do not receive any overtime pay nor contributions to their Social Security benefits. By doing so, FedEx is able to gain a competitive advantage by removing the costs traditionally associated with employees. According to Agostino Scalercio, a FedEx driver, 30 – 40 percent of his salary was deducted in order to cover expenses for his truck and uniform thanks to his status as an independent contractor. To top it all off, independent contractors are not covered by employment protections and are not permitted to unionise.

Although FedEx is gaining this competitive advantage, it is doing so at the cost of employee loyalty and public image. FedEx claims that this business model is “highly successful and beneficial” for both contractors and FedEx itself. The way I see it, this model is anything but beneficial for the contractors, while very much so for FedEx. Exploiting technicalities in business law in order to cut down worker compensation shows that FedEx is severely lacking in moral fibre.

Image: http://www.ctvnews.ca/health/fedex-charged-with-delivering-drugs-for-illegal-pharmacies-1.1919824

http://www.businessweek.com/articles/2014-10-16/fedex-ground-says-its-drivers-arent-employees-dot-the-courts-will-decide#r=discussed

In the business world, there is no magical key to success. Working hard does not guarantee success as luck plays a significant role in determining the outcome. However, Mark Cuban’s blog post highlights key points which he feels are some of the main factors in bringing about success in business. Mark Cuban, a billionaire and the owner of the Dallas Mavericks, offers an interesting piece of insight from someone who has succeeded in the business world.

Personally, the idea that resonated strongly with me in Cuban’s blog is No.3 : Know as much as you can about technology. According to Cuban, new technologies can spark massive change, and where there is massive change, there exists the potential for massive profit. Looking back on the most successful entrepreneurs of the 20th and 21st century, there is a clear correlation between disruptive innovations and colossal profits. Microsoft and Apple being the most obvious examples of this phenomenon, there is also Ford and Facebook, changing the field of transportation and communication, respectively.

Although technology is an ever expanding industry, it is also a highly volatile one. Technologies shift so rapidly that some companies don’t even last a decade, even after turning in large revenues for years.

 Picture showing declining Revenue for Myspace.

Image: http://www.businessinsider.com/chart-of-the-day-myspaces-revenue-collapse-2011-3

The 6 Things You Need to Know to be Great in Business

Recently, there has been commotion regarding the establishment of a new pipeline headed by Calgary-based Enbridge as highlighted in this article. Although it might seem like just another pipeline, Enbridge is actually trying to build the pipe right through Nak’azdli territory. Nak’azdli, along with six other First Nations is trying to prevent the pipeline from being built as they claim that the pipe will run through 25 percent of traditional First Nations territory.

Not only does this incident damage relations with the Canadian First Nations groups, it also violates many ideals of business ethics. Specifically, it goes against Ed Freeman’s stakeholder theory by failing to benefit the host community, which is the Nak’azdli.  In my opinion, this clash with the First Nations will severely hurt the brand image of Enbridge.  Competitors will be able use this as a weapon to drive down business for Enbridge.

Personally, I would suggest that Enbridge abandon this project. Even if a deal could be reached with the First Nations groups to carry on with the construction, the environmental damage that will be caused could last for generations. Instead of exploiting more and more of the Earth’s natural beauty for monetary gain, more efforts should be made to preserve these areas because it can’t be replaced.

Image: http://www.cbc.ca/m/touch/business/story/1.2469224

http://www.gatewayfacts.ca/

http://www.vancouversun.com/technology/There+will+pipeline/10122968/story.html