Examples of Lessons
Created for the February 14,2011
issue of Canadian Business
Magazine
INSIDE…
Trade / Politics and
Commerce, p. 1
Retail Management /
Competition
Strategies, p. 4
Marketing, p. 6
Economics / Public
Policy, p. 7
1
LESSON PLAN
Canadian Business Educational Focus, February 28, 2011 Issue
Course Applications: Introduction to Business: Trade / Politics and Commerce
Difficulty Level:
Article:
Article Summary:
Level 1
“A tense passage”, p. 54
This issue’s the “Big Picture” feature focuses on how the political unrest in Egypt
has affected the world of commerce, because of the Egypt-controlled Suez Canal.
Since the unrest in Egypt unfolded, the price of oil has gone up, and investors
around the world are keeping a close eye on the developments in the region.
Outcomes
 To learn about the effect of the political unrest in Egypt on global commerce
 To consider the historical significance of the Suez Canal
 To understand the correlation between geo-politics and the world of commerce
Terminology & Concepts
the Suez Canal: an artificial sea-level waterway in
Egypt, connecting the Mediterranean Sea and the Red
Sea; opened in November 1869, it allows water
transportation between Europe and Asia without
navigation around Africa
stability: dependability; steadiness
commodity: some good for which there is demand;
any good or service produced by human labour and
offered as a product for general sale on the market;
examples are petroleum, notebook paper, milk or
copper, etc.
commerce: business
cargo: goods or produce transported, generally for
commercial gain, by ship, aircraft, train, van or truck
trade: the buying and selling on domestic or
international markets of goods and services
contingency plan: a plan devised for a specific
situation when things could go wrong; contingency
plans are often devised by governments or businesses
who want to be prepared for anything that could
happen
investors: individuals or organizations who invest
money in order to make a profit; investors can invest
directly into a business or they can buy shares (units
of ownership) of companies listed on the stock
market
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Comprehension
1) a) What effect has the political unrest in Egypt had on the business world?
b) What is at the root of this effect?
2) How many ships pass through the Suez Canada each day? What would happen if the Suez Canal was closed
because of the political unrest in Egypt?
3) What percentage of the world’s shipping traffic passes through the Suez Canal? Of that cargo share, what
percentage is oil?
4) When was the Suez Canal built? What did the canal enable, and what effect did it have on geo-politics of that
time?
5) What is the connection between the Suez Canal and Canada’s former prime minister, Lester B. Pearson?
Analysis/Assignments
1) Explain why the price of oil in particular went up since the unrest in Egypt unfolded. What was the process of
this development?
2)
How did the building of the Suez Canal in 1869 change the world?
3)
Why are business investors worldwide paying close attention to what is happening in Egypt?
4)
Why does Egypt play a crucial role in global commerce?
5)
Speculate how the closing of the Suez Canal would affect global commerce.
6)
Research and write a report on the building of the Suez Canal, concentrating on how and why the canal was
built, and what effect it has had on global commerce and geo-politics since its construction.
7) The unrest in Egypt is one example of how politics and commerce are closely connected. Can you cite other
global political developments that impacted or changed the world of commerce?
Answers to Comprehension Questions
1) a) The price of oil went up.
b) Investors worldwide became concerned that the political unrest might interrupt shipping of oil across the Suez Canal,
which Egypt controls.
2) 50 ships. Closing the canal would block the shortest route from the Red Sea to the Mediterranean, and add almost two
weeks of extra travel time for ships forced to voyage around the south of Africa instead.
3) 8%; 16%
4) It facilitated trade between the Indian and Atlantic oceans, but it also spurred many disputes with Europe over its control.
5) Egypt has had many disputes with Europe over control of the canal. The worst was the Suez Crisis in the mid-1950s, but
was solved by the proposal of Canadian prime minister Lester B. Pearson for the first United Nations peacekeeping force
that would put an end to Israel’s invasion of Egypt, and Britain and France’s dreams of Suez control. He won a Nobel
Peace Prize for his efforts
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TUTORIALS
Canadian Business Educational Focus, February 28, 2011 Issue
Course
Retail Management, Competition Strategies
Applications:
Difficulty Level:
Article:
Level 2
“Who will Target Canada next?”, p. 26
Article Summary: This feature story reports on the rise of U.S. retailers expanding into Canada—which
may be good news for Canadian shoppers, but not necessarily good news for Canadian
retailers who are girding up for intense American competition. Victoria’s Secret and
Crate and Barrel have already opened flagship stores in Canadian malls. This January,
TJX Cos., owner of the discount clothing store Marshalls, and Tanger both announced
northern expansion plans, and most recently Target announced its purchase of 220
Zellers stores in a $1.8-billion deal with the American owner of the Hudson’s Bay Co.
Analysts predict that J. Crew, Macy’s, Nordstrom, Kohl’s and JC Penny are also on
their way. The stagnant U.S. economy, American retailers’ need to expand globally,
Canada’s stable economy and its still underserved retail consumer market are the
major reasons for this trend.
Comprehension / Discussion
1) Why are so many American retailers expanding into Canada?
 As U.S. retailers search for markets outside of their own stagnant economy, they’ve set their sights on Canada.
Canada’s comparatively strong economy makes a move north of the border all the more lucrative.
 Many U.S. retailers tapped out their market at home, and to continue the growth, they need to see expansion
opportunities. For these retailers, Canada is the perfect test market for a first foray into international expansion:
there is a mainly English-speaking population, Canada’s close to existing supply chains, and its consumers
already know U.S brands.
 The risk in expanding into Canada is low for the U.S. retailers— if they do have to leave the market, a big chunk
of sales will probably just slide back to their U.S. stores. Also reducing the risk for American retailers is the fact
that Canadian consumers already recognize U.S. brands.
 Canada’s relatively small market is an excellent test for American companies that are looking to globalize
operations. “They have to practise going to a foreign country, and this is a consumer-friendly foreign country
where they are known,” says retail consultant John C. Williams. If business is good in Canada, then it’s on to the
really big markets: Brazil and South America, India, China or the EU—locations where greater cultural and
regulatory differences are challenging, but huge population bases provide greater potential for profits.
 Canadian shoppers are still underserved when compared to those in the U.S. There are 13 to 15 square feet of
shopping space per capita in Canada, and more than 20 square feet per capita in the U.S. With numbers like this,
Canada is far from its saturation point.
2) For who in Canada is this increased competition from foreign retailers good news? Who is this bad news
for? Why?
 While this increased foreign competition is good news for Canadian shoppers and shopping centers, it also
means some Canadian retailers will struggle to remain competitive.
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3) What should Canadian retailers do to deal with the increased competition from foreign retailers entering
the Canadian market? Which one Canadian retailer effectively dealt its with American competition?
 Canadian retailers have to make sure their product is the best it can be, it’s merchandised well and that they have
great customer service.
 The retail pie is only so big, and it’s going to be the firms that are much more successful in identifying and
servicing customer needs that will be successful, and that tends to be the bigger chains.
 Retail consultant John C. Williams does not expect much of this competitiveness to be based on deep price cuts,
since Walmart already dominates that market on both sides of the border. Instead, the companies
that survive will be the ones who offer reasonable prices while upping their service level, ensuring they have the
best products on the market and conducting more consumer research than they have in the past.
 Costco is one Canadian retailer that managed to beat its direct competition form Sam’s Club, the Walmartowned warehouse retailer. Sam’s Club had a five-year foray into Canada, but it closed its Canadian stores 2009,
due to tough competition from Costco. When Costco saw the Sam’s Club move coming, it ramped up its
Canadian efforts, opening even more stores to serve its already loyal customer base. As soon as Sam’s Club
came, they began to pick up the pace of store openings. Canadians continue to love Costco. Today, it’s about
50% bigger in Canada than it is in the U.S. on a per capita basis.
4) Which one Canadian brand is well positioned to weather Target’s expansion to Canada? What is its
strategy?
 If there is a Canadian brand well positioned to weather Target’s northern march, it’s likely Joe Fresh, the
clothing and makeup label owned by Loblaws. In October 2010, Loblaws opened its first stand-alone Joe Fresh
store in downtown Vancouver. With a store on popular Granville Street, where its neighbours include H&M,
Holt Renfrew and Aritzia, Joe Fresh is declaring itself as a fashion brand unto itself, not just a purveyor of cheap
polo shirts to be bought alongside kitty litter and oranges. The store opened with much fanfare; the company
closed off the entire street for a rock concert with headliners Marianas Trench and Divine Brown. The location,
and the opening party, reflects the company’s desire to reach a new, younger demographic with the 20 standalone Joe Fresh stores that are slated to open across Canada in the coming years. Vancouver is the epicentre of
this demographic, with “an amazing number of condo dwellers and fashionistas,” says Craig Hutchison, senior
vice-president of marketing for Joe Fresh and PC Home. Next up for the company: four more standalone stores
opening in Ontario and Alberta in 2011, and new combination Loblaws– Joe Fresh stores at high-profile
downtown Toronto locations on Queen Street West and in the refurbished Maple Leafs Gardens.
Analysis / Assignments
1) Toronto-based retail consultant Wendy Evans predicts that 70% of the Canadian retail landscape will be foreign
controlled by 2015, up from the about 50% that is foreign controlled today. Is this a positive trend or a negative
trend for Canada?
2) The first proliferation of U.S. retailers really took off after NAFTA in 1994. Why?
3) Which retailers in the discount-brand market have come, or are planning to come, to Canada?
4) Canadian real estate investor RioCan announced a $1-billion deal with American Tanger Outlets that will bring
10 to 15 Tanger Outlet Centers to Canada. Why is this good news for Canada shopping mall proprietors?
5) Which U.S. retailers have been very successful in Canada? Which Canadian retailers should be concerned about
the increase in foreign-owned retailers expansion into Canada?
6) How is the entrance strategy of middle- and high-end retailers into Canada different from that of big box stores
or discount brands?
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adian Business Educational Focus, November 8, 2010
Course Application:
Marketing
Difficulty Level:
Article:
Level 2
Article Summary:
“When Peter Puck meets the X-Man”, p. 20
The article discusses the recent marketing gambit of the NHL: the creation
of 30 comic superheroes, one for each of the 30 NHL teams, known as the
Guardian Project. These superheroes (the Guardians) and their stories will
appear in a number of media, such as the NHL’s website, a graphic novel,
games, etc., and this marketing ploy is aimed at tween girls and boys. With
the Guardian Project, the NHL is expecting “to start a dialogue with fans
that may not be playing hockey as active participants, to help build and
engage with the next generation of NHL fans.”
Comprehension / Discussion
1)
What is the Guardian Project?

The Guardian Project is the creation of a joint venture between the NHL and SLG Entertainment, the company
behind the likes of Spider-Man and various other comics. The venture is called Guardian Media
Entertainment and it has developed comic superheroes (Guardians) for all 30 NHL teams. The Guardian
Project includes a graphic novel, gaming, sponsorship, merchandise and more.
2)
What is the marketing strategy behind the Guardian Project?

The Guardian Project is NHL’s strategy to give kids a different way to connect with the league and sport. It is
targeted at tween boys and girls.
3)
What potential weakness does the article point out about the Guardian Project as an effective
marketing vehicle for the NHL?

“Far from Pro Stars redux, this cod pieced collection is Peter Puck–meets–X-Men on amphetamines and has
almost nothing to do with the game of hockey.”
4)
How was the Guardian Project launched and promoted?

The Guardian Project made its official debut at last month’s NHL All-Star Game, and will roll out to
individual cities throughout March and April. The league and its partner, Guardian Media Entertainment
(GME) introduced each hero on a daily basis in January via Facebook fan voting.
5)
What are the early signs of the effectiveness of this marketing strategy?

The introduction of the heroes via Facebook fan voting tallied more than 1.2 million votes.

According to Brian Jennings, NHL vice-president of marketing, “The Guardian segment on NHL.com was the
second-most-viewed part of the site in January.
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Analysis / Assignments
1)
Why do you think the NHL is targeting young people in their marketing? What is the goal of the Guardian
Project marketing campaign? What are the creators of the Guardian Project expectations?
2)
“It remains to be seen if the Guardian Project will strike a chord with audiences and reach its creators’
expectations or suffer a costly but quick death, mocked into obscurity.” Why is the writer of the article
skeptical about this latest NHL marketing strategy? What risk/downsides does he feel this strategy has?
3)
NHL vice-president of marketing says that the Guardian Project represents the league’s desire to be more
creative. “We want to get away from being risk-averse and have a bigger appetite for calculated
risk that can help change the business,” he said. “This project is important in its potential
to start a dialogue with fans that may not be playing hockey as active participants, to help build
and engage with the next generation of NHL fans.”
Visit NHL.com and access the Guardian Project site. Review the site, and write an evaluation of this venture
as an effective marketing strategy to “start a dialogue with fans that may not be playing hockey as active
participants, to help build and engage with the next generation of NHL fans.”
4)
The NHL offers an exciting product—fun sports to watch, passionate crowds, constant action—yet the
league is not as popular as other major pro sports leagues. The NHL should be more popular. In small
groups brainstorm a list of things the NHL should be doing to market its sport
Course
Economics, Public Policy
Applications:
Difficulty Level:
Article:
Level 3
“Why the West is flailing”, p. 38
Article Summary: This article is an interview with Oxford-educated economist Ambisa Moyo, whose latest
book, How the West Was Lost, argues that the recent financial crisis and the current
decline in the Western living standard is a consequence of what has been 50 years of
misguided policy by the West, particularly the United States. She attributes the
misguided policies to West’s democratic process in which leaders’ and policy-makers’
time in office is fairly brief before the next election, so their decisions are guided by
short-term gains and political scores rather than long-term benefits for economies and
societies. Moyo’s main recommendation for the recovery of the West is the depoliticization of the democratic process, governments educating their people about the
right priorities and their implementation of incentives to encourage a focus on those
priorities (i.e., education, health-care, technology, environment, and innovation).
Comprehension / Discussion
1)
What is the thesis of Dambisa Moyo’s book, How the West Was Lost?

She accuses the West of 50 years of misguided policy, particularly in the United States, arguing that the
housing bubble which caused the recent financial crisis is one of the consequences of its misguided policy.
The broader consequence of these misguided policies is that the West today finds itself in decline, being
rapidly overtaken by the more agile and focused economies of China and India.
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2)
According to Moyo, why is West’s political and democratic environment the reason why the Western
governments have been implementing misguided policies?

Although she is a supporter of democratic processes, she believes that the West’s democratic process with its
very short election cycles encourages an environment where policy-makers are driven to implement policies
designed for a short-term benefit or gain, because they don’t have enough time before they are up for another
election to deal with the structural, long-term issues.
3)
What country does Moyo identify where the democratic process does not stand in the way of good policy
making?

“If you had a longer democratic cycle—like Brazil, where a term lasts seven years—it would be easier for the
government to identify problems and put in place more structural solutions without having to face the
electorate.”
4)
In addition to longer terms for elected governments, what other recommendation does Moyo offer for
Western governments to steer their countries in the right direction?

She proposes creating incentives for people and organizations to steer them in the right direction, especially in
the areas of education, health care, infrastructure and innovation.
5)
What does Moyo think about emerging economies catching up to the West in terms of living standards?
What does she think might prevent emerging economies from achieving these standards?

She thinks that the more countries with high living standards there are, the better it is for the world.

She thinks that binding constraints on the availability of water, energy, arable land and minerals around the
world stand in the way of emerging economies’ raising their living standards, and that the West should do
something about it.
6)
What policies of China does Moyo praise?

China has hedged itself against constraints on the availability of water, energy, arable land and minerals in
anticipation of their citizens seeking higher standard of living. “They are the largest trading partner of Brazil
and Chile and the Australians. And they have made friends around the world in resource states, almost in
anticipation of a situation where there are no innovative gains to satisfy the demands of nine billion people.”
7)
According to Moyo, why have Western standards of living declined?

That decline has to do “with allowing infrastructure to deteriorate, while education—so critical to
competitiveness and innovation— is wasting away.”
8)
What does Moyo believe Western governments, organizations and corporations must do to improve
Western economies and raise the West’s living standards?
 “It boils down to policies, and part of the policy element is incentives. The success of the West largely stems
from governments providing the correct incentives to drive innovation, infrastructure and other feats we
accomplished over the past 500 years.”
9)
How have Western governments contributed to the decline of Western living standards?

Their policies have been seeking a short-term gains, and were aimed at scoring political points before the next
election. They haven’t effectively educated their citizens about the urgency of the important priorities such as
education, health care and the environment, and because the electorate does not care about these issues, the
policy-makers don’t focus on them either.
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Analysis/Assignments
1) According to Ambisa Moyo, why has globalization failed to bring about the expected rise in incomes for all?
Why does the West now finds itself in decline?
2) What is Ambisa Moyo’s main issue with the Western democratic process? She wants the process de-politicized.
Why?
3) At one point in the interview Ambisa Moyo refers to the “zero-sum game.” What is this concept? In what
context does Moyo use this term?
4) According to Moyo, what are China’s problems and what is this country doing right?
5) The concept of incentives figures prominently in Ambisa Moyo’s policy precepts for the recovery of the West
recovery. Explain.
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