Cenk Citiroglu

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On November 30, 2017, Cenk Citiroglu commented on Driving into the Unknown: Ford Motor Company and NAFTA :

Thank you very much Ben! This is a very interesting essay. Regarding your first question about whether more manufacturing jobs or lower cost cars are better for US, I agree with Francie and Vanessa. Eventually, automation will significantly decrease need for human labor and companies will make their decisions regarding other key elements of cost structure. However, I believe that effects of automation will be observed in OEMs later than car manufacturers and in short term labor costs will play a significant role. For example, today more than 40% of parts used in compact Focus models are sourced directly from US. [1] However, new Focus plant in China will source significant part of parts from OEMs in Asia and lead to job losses in US. Although government officials tried to push car manufacturers to invest in US, so far it seems that this move just had an opposite effect. Moreover, in my opinion uncertainty in government policies will lead car manufacturers to accelerate automation and diversified manufacturing to minimize risks associated with change in trade agreements.

[1]. Shannon O’neil, “If NAFTA ends, Ford’s move to China just will be start”, American Quarterly, June 22 2017, http://www.americasquarterly.org/content/if-nafta-ends-fords-move-china-will-be-just-start, accessed November 2017

On November 30, 2017, Cenk Citiroglu commented on Brexit vs. Tesco: Will Britain’s Largest Grocer Stand the Ultimate Test? :

Charlie, I think that this is a great essay deep diving on effects of Brexit on retail industry through an example. I agree that Brexit will result changes in prices, profit margins and customer behavior. Regarding the value loss of Pound Sterling against US Dollar, customers’ willingness to pay will decrease and it eventually will lead to significant change in product range and quality offered not only in Tesco but also in other retailers. In such situation one might argue that companies with more local sourcing will gain a competitive advantage and have more room to sustain promotional activities. On the other hand increasing demand to local manufacturers might also cause prices to rise and margins to diminish. At this point best thing to do would be wait and see the effects of Brexit.

On November 27, 2017, Cenk Citiroglu commented on Skistar: the impact of climate change on ski resorts :

I think this is a great essay! Ski resorts which are significantly affected by climate change, are not limited to Sweden but also include other countries. In my opinion, Skistar developed an adaptation strategy for changing climate conditions instead of developing a sustainable solution because it tried to minimize the effect of climate change on its income statement not on temperatures. Indeed, it also contributed to climate change with its snow cannon solution and we can say that Skistar created a vicious cycle, where the solution of a problem provokes the problem. I agree that ski resorts should create some initiatives to preserve commercial sustainability, but a more long-term solution would be creating an awareness campaign with other ski resorts and educating their customers about global warming. Moreover, I believe that energy and water consumption of snow cannons can also be improved in collaboration with manufacturers and more environment friendly designs can be developed. For example water used in snow cannons can be recycled or electricity need can be met with wind turbines.

On November 27, 2017, Cenk Citiroglu commented on American Airlines: Grounded by extreme heat :

Eduard I found this essay very interesting! I believe that airlines need to plan according to climate change not only to decrease costs today, but also to be able to operate in 2050. Information you provided also proves that American Airlines also share the same motivation and will definitely be better off by investing to reduce emissions because it is a necessity rather than an improvement. Moreover, efforts in industry to decrease emissions are also supported by major aircraft manufacturers such as Airbus and Boeing. Boeing began production of 737 MAX is up to 15% more fuel efficient than current models. [1] Furthermore Boeing’s studies are not limited to engines but also includes a new tail design, non-stick coating formula. [1] On the other hand Airbus also works on similar innovations and increased number of gears in A320neo jet to decrease fuel consumption. [1] In my opinion, to address climate change both airline companies and aircraft manufacturers should start a joint-effort to create solutions more effectively.
[1] Wendy Koch, “5 Technologies that could help curb airline emissions”, National Geographic, June 10 2015, https://news.nationalgeographic.com/energy/2015/06/150610-technologies-could-reduce-airplane-emissions/, accessed November 2017

Sushan this is a great essay! I agree with that predictive maintenance and remote upgrades will significantly increase machine utilization and allow manufacturers to gather data on device performance, usage etc. On the other I also agree with Bill on that remote services raise a question about the reliability from patients’ perspective. If I were a patient I would be reluctant to get a scan in a device right after the upgrade or remote maintenance service. I think Philips should start an initiative to educate patients and get their approval about its innovative services both to decrease regulatory risks and also use patient data to further innovate the industry. Moreover, Philips should introduce a comprehensive set of control mechanisms to avoid any failures because the damage caused by a software upgrade might cost a person’s life. To give an example, Philips can get in contact with device operators in hospitals and ask them to make several test runs before they start scanning patients. Creating a two-factor authentication process before starting daily operations will decrease risk of causing any irreversible damages. I believe this is only one aspect of the challenges and if Philips is going to innovate the industry they should invest in control mechanisms as much as new technologies.

First of all, I think that this is a great essay. It is very interesting to learn about alternative usage areas of Blockchain technology and how it will affect retail industry. In my opinion the challenges to implement Blockchain technology has two different aspects. First one is the technical and economic challenges that Walmart and its suppliers will face. I believe that a fully up and running system Blockchain system will bring many advantages. To elaborate, it will help to manage supply chain operations more effectively and efficiently, which will both decrease costs associated and have a positive impact on bottom line. However, the transition period requires investment on both Walmart’s and suppliers’ side and this might especially cause a problem in suppliers working with very low margins. Therefore, if Walmart wants to implement Blockchain technology it should also create a low upfront investment model and maybe also share some its additional earnings with suppliers to compensate their costs. Secondly, I think that giving customers the ability to track supplier and origin of a good sold might change customer behavior. It is very likely that customers will be reluctant to buy products imported from emerging markets because of their lower quality perception. At the end of the day increasing awareness on customer side might also hurt their willingness to pay and cause decrease in sales of certain products.