KL's Profile

While it’s easy for people to criticize how Brexit has negatively impacted many industries, it’s pretty thought provoking to see how companies are looking at how they can benefit from it. McLaren’s reorientation of its strategy and manufacturing operations shows its forward thinking capabilities as it refuses to wait until 2019 to act. Although McLaren shows that it is possible, it still does not seem easy when faced with serious issues like increased tariffs and limited labor supply, which can negatively affect car manufacturers’ costs and profitability. Even more, I don’t think most companies realize the powerful position they are in to negotiate, like you mentioned, as the government needs them. I think the government will have to implement several initiatives like tax cuts in order to incentivize companies to keep doing business in the UK. If they can make it attractive for car manufacturers to stay, it will have broad-sweeping affects in fueling the economy. I am left wondering why more companies, in and outside of car manufacturing, aren’t following McLaren’s lead and preparing themselves for potential policies and tariffs resulting from Brexit.

I remember the first time I tried Marmite…let’s just say it’s the last time I tried it. Regardless of my personal taste buds, you raise a lot of very interesting issues that I didn’t consider when thinking about some of the consequences of Brexit. As isolationist ideas and policies have recently gained momentum, I think we need to find a way to better educate the public on the widespread affects of these actions because they can and do touch our daily lives. It’s interesting that it took Tesco taking a public stance for people to really understand how Brexit could change the prices and options of foods they can buy. I am conflicted about the idea of localizing suppliers in order to better deal with the rising cost of buying items sourced in euros. While it seems like an effective long-term solution, it’s quite frightening to see how these isolationist practices really do affect economies across the globe as foreign suppliers are completely cut out. If the public had known how Brexit would affect their economy and day-to-day lives, do you think they would have voted the way they did?

What would keep me up at night if I was running DHL is the concern that you address, which is the security of the system, its vulnerability to cyber attacks, and the far-reaching consequences for the company, its partners, and customers if an attack were to occur. When I think back to the field trip at the IBM X-Force Command Center, one of the more important takeaways for me was that while companies are very aware of the possibility of cyber attacks and breaches, they have been slow to develop and actually practice thorough processes to deal with these potential events. It’s surprising because how a company deals with these extreme situations often determines the future of the company. DHL leaders, therefore, need to make sure that the right systems are put in place and that all employees are properly trained so everyone can work effectively together if the company’s systems were to be attacked.

Thank you Anton for this interesting analysis, as I did not know that Ikea was engaging in AR/VR initiatives to help the last link of its supply chain. As other companies look to go purely online and abandon their offline retail outlets, it’s pretty remarkable that Ikea is going in a different direction and investing in both online and offline. While it seems practical, convenient, and quite frankly, fun, for consumers to use these technologies, my first hesitation when learning about this is whether this is just a gimmick or will actually increase customer traffic and orders in the offline retail outlets. One survey conducted showed that 55% of consumers thought these technologies would influence their purchasing decisions and a third of consumers said they would probably shop more with e-commerce retailers that had VR technologies [1]. Although the initial reactions do seem promising, I’m still wary of whether these technologies will actually increase sales. At this point, I guess it’s too early to tell if this hefty investment will pay off.

[1] https://www.technologyreview.com/s/601664/how-stores-will-use-augmented-reality-to-make-you-buy-more-stuff/

As I read your analysis, which was shocking as I didn’t know much about this issue, my initial reaction was similar to your concern that H&M has not been specific enough in articulating what they are actually doing to improve their water inefficiencies and how they are going about doing it. Given the lack of concreteness around their actions, their efforts read more like something they are doing for their public image. I think it is also the responsibility of companies like H&M to educate not just SMEs, but also their consumers on these issues because most people don’t know how much water goes into clothes. Perhaps, if they did they would push companies to think about these issues more seriously. Due to their high amount of water usage, H&M really does have the power to lead and influence the rest of the industry to make long-lasting changes.

As I read your analysis, which was shocking as I didn’t know much about this issue, my initial reaction was similar to your concern that H&M has not been specific enough in articulating what they are actually doing to improve their water inefficiencies and how they are going about doing it. Given the lack of concreteness around their actions, their efforts read more like something they are doing for their public image. I think it is also the responsibility of companies like H&M to educate not just SMEs, but also their consumers on these issues because most people don’t know how much water goes into clothes. Perhaps, if they did they would push companies to think about these issues more seriously. Due to their high amount of water usage, H&M really does have the power to lead and influence the rest of the industry to make long-lasting changes.

I really enjoyed this essay, as I didn’t know LEGO was at the forefront of redesigning the supply chain to help reduce its global environmental impact. I agree with you on the increasing importance of CSR in generating positive brand awareness and consumer acceptance. Yet, I wonder how much of this is actually done for genuine reasons versus image concerns and at the same time, whether this is actually helping them competitively.

I think LEGO’s view of the supply chain, as its partner in reducing its carbon footprint, is a great and collaborative way of achieving its goals. I like their ecosystem approach and think other companies should operate similarly when it comes to developing new sustainable initiatives to improve their environmental footprint. Although the company might not be the direct culprit, understanding how everyone in the chain is responsible and contributes to the problem is the first step in making wide-reaching changes.

I think your suggestion to extend their E2R program is an interesting idea and a way that LEGO can become a leading advocate of reducing CO2 emissions in other companies who see it as an insurmountable issue.

While I think LEGO’s mid and long-term initiatives sound great on paper, I wonder if these investments, which are pretty substantial as you mention in your essay, will pay off in the future. How much do consumers actually care about the sustainability of their products if prices increase as a result? Especially, LEGO, which is a toy that people often buy for others as gifts, how much are consumers considering the company’s CSR when they are considering the purchase? Even more, I am concerned about the quality of their products as they and others continue to switch over to sustainable raw materials and packaging (https://www.wired.com/2015/07/sorry-perfect-lego-brick-may-never-eco-friendly/).