RSM100

Cheetah and Gazelle concept for Amazon

Start with the small publisher (weak gazelle) and cheetah (amazon) often go for weakest prey. Entice them with attractive terms to sign early and then give them less attractive term once it is time to resign to make them go out of business.

Key Success Factors of operation management for Amazon

1. Strong Logistics System

2. Fast shipping and quick returns with the local distribution system

3. Efficiency by understanding and tracking their workers

4. Using humans to help robots

5. Track everything using data

Decisions to make Amazon succesful

1. Gave up profits 20 years for economies of scale by convincing shareholders

2. Subsidize Amazon cost with Amazon Web Services

3. Had to keep cost low to deliver and competitive pricing

Amazon and uses of data?

1. Recommend what to buy with precise and targeted

2. camera with weight and scale to track stores

What is Anti-Trust and application to amazon

Anti-Trust - when company is getting so big that it makes small business go out of business

Amazon would enter locations and cause small business to go out of sale due to their large presence

Should amazon be charged Anti-Trust

Yes- Amazon has too much control with Cheetah and Gazelle approach and people will always buy from Amazon as it is easy and convenient

No - Consumers are happy and pay reasonable price for service and losing Amazon is against protecting them

Is Amazon good or bad for innovation

Good - Allow them to sell on Amazon for extra money and revenue

Bad - Treat small vendor poorly and will manufacture similar good and sell cheaper with Amazon Basics from same factory and use data to keep those innovating out of business

Financials of Amazon note

1. AWS is the most profitable sector of Amazon

2. If losing money less and less international that is fine

3. When there are losses ensure reflect on economic issues like coivd 19

Is Amazon Ethical?

Employee - fair wage, opportunity to make money, good pay, often pay for post-secondary, but pushed to work hard, bad working environment, stressful, compromise safety for demand, driver peeing in bottle

Customers - convenient, competitive pricing using data but Alexa is always listening, quality and safety of third party sellers by not taking responsibility

Vendor - opportunity to be on larger playing field but use data against vendor to put out of business, Cheetah and Gazelle approach, large cut of vendor (get bigger)

General Public - Not good for environment, Lots of boxes in box, but pays taxes, offer goods to consumers convienet to stimulate the economy.

Investor - Give them chance to make money and return on investment but not ethical the anti-trust laws.

Tonny Robbins

1. Focus - change attitude by changing focus

2. Instant Gratification - often better to wait for result, patience

3. Other people urges - don’t focus on every notification and refocus to focus on where you want to go NOT THE WALL

Outcome, Purpose and Action

Outcome - what did you want to do and where to go

Purpose - why am I doing this

Action - How are you using your time on things

4 Dimensions

1. Distraction - not important and urgent like Tik-Tok

2. Delusion - urgent but not important like phone call

3. Dimension of Demand - urgent and important

4. Fulfillment - Important but not urgent like going to gym

Sustainable Competitive Advantage

Something valuable and hard to replicate

Strategic Managment

Internal Analysis (capability) - do they have knowledge and product distribution system + External Analysis (environment) - Goverment and what is going on in the world

Strategies

concentration- See it everywhere you go Tims

Diversification -Diversify through related diversificaiton Rogers buys Fido or unrelated

Vertical Integration - Buy your supply chain and suppliers

Retrenchment Strategy - Readjusting operation when a operation is in a struggle

How are strategies formed

Maintain sustainable competitive advantage, barriers to entry and financial resources

How did Eaton fail

Changed strategy to middle/high end.

But when things got expense no customer bought anytrhing cause Eaton known for selling cheap goods.

Customers does not know what they were selling and placed no value on the brand,

Resulted in failed value proposition.

Ashely Madision Fail?

Changed to a traditional dating website

Ashley Madision known as a cheating website customer saw it as that period

Dont tell others they met spouse on Ashely Madison

Startegy vs TacTic

Strategy - long-term and bigger picture ex: global expansion

Tactic nitty gritty and short-term ex: cost custting

Mistakes made by Target

1. Expansion was too quick

2. Poor logistics and planning as everywhere needed warehouse Canada was big

3. Underestimated existing competition

4. Failed to understand Canada consumers (we love flyers, america love coupon)

5. No private brands brought over

6. Poor online presence

7. Lack of Canadian executives

What could Tagret have done to succeed

1. Focus on smaller region first

2. Do more market research on Canadians

3. Offer private brands

4. Better online presence

   (Walmart was more planned and organized and focused on less competitive areas and had less competitors to deal with)

Why is Costco Successful?

1. Loyalty membership make money on that less on product

2. Prices low by selling in bulk

3. Inhouse brands like Kirkland

4. Sell less different things keep cost low

5. Low stocking fee with cheap display like warehouse

6. Pay their employees more so customers are also happy

Why Costco Bill High

1. treasure hunt display around the store

2. Limited quantity for scarcity

Costco Marketing strategy so encourage people buy more

1. Disperesed Good

2. Seeling in bulk for sales

3. Samples to feel obliged to buy more

4. Attracting people to buy in foodcourt with prices

5. Gasonline prices attract people

6. Cool stuff in front of store

7. Larger shopping carts

Costco threats

Direct competitors like Sam’s Club

Families getting smaller

Weak online presence

Subscription fatigue

(Addres by entering other country and appeal to younger generation like sustainable goods0

Advice to Costco

1. Understand your market for international expansion

2. Understand customers well and what your customers are looking for as demographic changes

Fresh Cycle

App minimize food waste and match with expiry of food on app and notify when expriing

value: 1. Parnter with PC super market 2. Personlaizxed user experience 3. Sustanbility for environment

Inscentify

A alarm that makes it better for people to wake up using scents

Scibbleflow

Note taking apps that can change to flashcards

FitScan

App to scan somoene’s bodies measurement and use a.i to give them clothing recommendation

Core Value: Personalization and adaptability

Howard explanation of servant leadership

1. Grow the people as human

2. Grow the people as professionals

3. Help them achieve their goals

   After those 3 they want to help the organization succeed. Service those before being served.

Howard explanation of Autonomy

1. Bringing someone talk to the person about

2. Goals of organization

3. Employee purpose and role and how they can contribute

   Let people do their job how they want to

Piece of advice

Be intentional with your life and what you want to accomplish on earth

Howard balance good quality of leader to team and to profit

1. Don’t believe in the conflict

2. Build company with your people not back of people

3. Grow the people and they will grow your organization

Anthropogenic Climate Change

Human caused climate change, there will be people who don’t acknowledge it

New model to be successful Credit Suisse

1. Everything is not equal with more focus on environment and society and less on economy

Respond how to climate change

1. Minimize your own negative impact - Manufactures use their waste to have better processes to control waste recycling programs.

2. Prepare for unavoidable consequences - Action plan for a flood, avoid in infrastructure, get insurance for damages (For property in Miami Florida flood

Flair Airline

A cheap plane company with poor customer service and relations. Lots of plane seized since not paying bills. Is it good for government to bail them out with tax money to keep plane prices low.

How did social media affect bank failure

1. Fulfill the prophecy of the bank going under

2. People were worried and pulled money out (MULTIPLIER EFFECT)

Uber contrevarsy

Uber driver not needing a medallion

Airbnb Controversy

Taking business from hotels

Residents feel uncomfortable with people moving in and out of business

Effect of Government Stimulus During Pandemic Reality

1. Not affect inflation as people and business were saving

2. Interest rates were low during covid and other option was a financial collapse

3. Maintained household income and property price not go up by much

Who are business ethically responsible to

1. Investor

2. Customers

3. General Public

4. Employees

Was Ashley Madison Ethical

Customer - provide service for customers, but bots deceived

Investor - Opportunity to gain money but money earned was not ethical with bots

General Public - Support right to choose and tax money but breaking up families

Employees- Earning a wage but doing unethical things pretending to be bots

Wells Fargo Ethical?

Unethical: CEO setting wrong tone at top with unrealistic sales goal only achievable with fake accounts

Ethical: CEO wanted to just grow the company and didnt know about the fake accounts

Code of Ethics

Compliance Based - Punish the bad

Integrity Based - Reward good behavior

Traditional Evaluation vs New

Old one only looked financials (Financial targets) which is only short-run

New one - Use a Full Balanced Scoreboard including the customer (Customer satisfaction), internal business process (Manufacturing efficiency), learning and growth (training provided)

XYZ theory

X- workers are lazy

Y- workers are naturally motivated

Z- workers are only motivated when involved

Self Determination Theory

1. Autonomy - do what they want

2. Competence - Feel they are competent

3. Relatedness - connected to others like teamwork

Expectancy Theory vs Equity Theory

Expectancy - If do x we get y and y is important to us. Arrive on time = promotion

Equity Theory - Perform how we are rewarded make more money will do more

Why do Companies trade internationally

1. Excess Resources -Saudi Arabia Oil

2. Cost reduction - keeping costs down one factory instead of 2 in 2 different countries

3. Particular foreign market demand - certain goods can only be produced in certain countries

Dangers of Freetrade

Benefit the global economy but may harm the microeconomy

Low canadian Dollar international trade

1. More poeple will buy out stuff

2. Don’t want to buy other stuff since dollar is low

3. Low Dollar will fuel the economy (looking at exports and imports)

4. Lower purchasing power

Examples of Cultural Differences

1. Not tipping in Japan seen as rude

2. #4 in China means death

3. France has a kissing culture

4. Wearing shoes inside a house like America allowed

5. Saudi Arabia offer food for visitors

6. Europe charges water and tap water

What Attracted Amazon to China

1. Large population

2. Large e-commerce market

3. Increasing middle class

4. Looked like few competition

5. Confident at home

Why did Amazon fail in China?

1. Not understanding Chinese consumer wants (singles day)

2. Competitiors expanded more aggressive, as Alibaba main focus was China and could quickly have Alipay

3. Narrow product range

4. Amazon used third party carriers and had customers pay for shipping

5. Poor leadership team lacking Chinese executive

6. Alibaba had Alipay and lots of integration

What could have Amazon done better?

1. Adapt to Chinese consumers more

2. More Chinese corporate executives

3. Better planning and infrastructure

4. More market research and understand regulatory environment

5. More investment to in-house infrastructure

6. Understand Chinese holidays

Key Challenges of Amazon entering China

1. Doing more research and trend have to be aware

2. Regulations more strict in China cause preserve Chinese business

3. Significant competition with aggressive competitors with already established pay system

4. Relationship between China and USA

Should Canada reduce import from China

1. Small compared to the USA

2. Already so connected to the US

3. Efficient to keep the relationship with China

4. If we pick up trade we will be more resilient

Why ppl become entrapenur

1. Be their own boss

2. Desire to success financially

3. Job security

4. Improved quality of life

Entrepreneur Characteristics

1. Tolerate failure

2. Creative

3. Tolerance for ambiguity

4. Internal locus of control

5. Vision

6. High energy

7. Need to achieve

8. self confidence/optimism

4 types of planning

Strategic - top management - big decision

Tactical - middle management work to mobilize one part

Operational - Supervisory - day-to-day operation

Contingency - everyone, contingency plans for situations

Kats skill for Managerial Success

1. Conceptual skill (seeing the big picture) top

2. Human Skill ( communicating with people) top

3. Technical Skill - understand tool and technique (important for lower)

Stages of Team Development

Forming - Members get to know each other

Storming - people's personalities break out

Norming - Resolve differences and move on

Performing - Doing the task

Adjourning Wrapping up and sum up team experience

Communication stages

1. Sender encodes the message

2. Receiver decodes the message

3. All connected with feedback

4. message sent through a channel

Formal vs Informal Communication

Formal - through a chain of command

Informal - no need for hierarchy like a grapevine

Listening Behaviour

Cyclical - receiver feel sender want to gain something

Offensive - receiver try to catch speaker mistake

Polite - Receiver think about what person says

Active - Involvement with information/empath with speaker situation

Different Production Types

Mass Production - System of manufacturing in large quantity

Flexible - Use IT and programmable equipment to produce diff stuff

Customer-Driven Production - Asses customer demand by connecting products manufactured to people

Production Proccese

Analytic - Raw material to refine something out

Synthetic- Combine two or more material

Continous - Create finished product over long period

Intermitent Production -Product for short-run

Technology in production

Machine aided design/manufacturing - Help design parts or entire pats (tell how to do stuff)

Flexible Manufactuing Process - Workers can manufacture diff products (Technology and worker)

Computer Integrated product - Use computer and other technology in production

Production manager

1. Planning Production - what/how to produce

2. Select most appropriate layout - Process layout/equipment

3. Carryout Production Process - which supplier to use and buy, lease or make

4. Controlling manufacturing to achieve high quality

Production Process

1. Planning - Amount of resource to use

2. Routing - Sequence of work throughout facility

3. Scheduling - Timetable and how long each process takes

4. Dispatching - Work need to be done and time allowed for task

5. Follow-up - spot problem and come up with solutions

PERT Chart, Six Sigma, ISO Standard

Pert - reduce # of delays by coordinate all parts of production

Six Sigma- Define measure analyze improve and control

ISO Standard - International standard for product

Balance of Payment

Flow of money in and out

Hard currency vs Soft

Hard -Can easily be converted into other currencies, not likely to depreciate, stable, widely accepted

Soft - Can easily fluctuate, unstable

Tariff vs Embargo

Tariff - restriction on # of imports (Protective -generate income for gov or Protective - raise prices of imported goods)

Embargo - block of imports

Indirect vs Direct Export

Indirect - manufacture product and sell to domestic company to resell

Direct - Sell own product in the market using export trading company to advice

Offset Agreement vs Countertrade vs Offshoring

Offset - match small business with major international firm

Counter trade - use product as form of payment to enter the market

Offshoring - Relocation of business operation into another country

3 Accounting activity

Investing, Operating and Financing

Public vs Management Accounting

Public - accounting service for fee

Management - employed by business to record and collect transactions

Steps for financial plan

1. Forecast sale over period of time

2. Estimate expected level of profit

3. Additional asset needed to support the additional sales

Leverage

Increasing rate of return on funds invested by borrowed funds

Trade Credit

Suppliers who give good but company will pay later

Leveraged Buyout

Public shareholders are bought out and firms go back to private

Diversiture

Sell assets such as product line and production facility

Selloff- Sold by one firm

Spinoff - Asselt sold will form a new firm

Financial System

way which money flows

Money market instruments

- short-term issue by gov, corporation and financial institute bonds

market order vs limit order

Market order - buy low and sell high

Limit order - price ceiling to buy and price floor to sell

Commercial bank features

1. Raise money with chequing and savings

2. Pool money to lend and get money from interest

Credit Union

Co-operative financial institute owned by depositors

Discount Rate

Tool to control interest rate for bank for short-term loan

Tools of Monetray Fund

M1- money in circulation + balance in chequing account

M2 - M1+balance in savings account and mutual funds

Mutual Funds

Raise money from investors by selling securities

How can goverment stimluare economy

Use of stimulus using fiscal policy by spending or increasing taxes

Enron Scandal and where they went wrong

Arthur Anderson was an accounting firm which was paid more by Enron for sketchy accounting practices.

1. Breached fiduciary duty

2. Conflict of interest

3. Compensation

4. Independence

5. Oversight

Three Questions for Financial Plan will address

1. What funds are required during the planning period

2. When will funds be needed

3. Where will funds be obtained

What did martin say about a company to be successful (JBP Principle)

1. Profit is greater or equal to sales (decreasing profit mar)gin

2. Sales greater than the rest of the market (Market share is decreasing)

Managerial Functions

CLOP

Controlling - Being efficient where there is no error

Leading - How to get people what you want

Organizing -organize stuff (how to delegate)

Controlling - set performance objective

Traits needed for leaders

1. Empathy - understand co-workers

2. Self awareness - aware of how you action impact others

3. Objectivity in dealing - treat everyone the same

Mintzberg Managerial Roles

1. Interpersonal skill - relationship with people

2. Informational Role - communicate and process information

3. Decision Roles - are there gonna be any changes in decision making