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“The fishermen know that the sea is dangerous and the storm terrible, but they have never found these dangers sufficient reason for remaining ashore.”
Vincent van Gogh
“Fisherman’s Monument” by William Edward deGarthe
Peggy’s Cove, Nova Scotia
We need your help to find the next Scotiabank Ethical Leader. For the past five years, Dalhousie’s Faculty of Management has recognized a Canadian who practices ethical leadership at our annual Ethics in Action event. Next year, for Dalhousie’s 200th anniversary, we are opening nominations globally. Any person in any part of the world is eligible.
Do you know of an ethical leader who we can honour with the 2018 Scotiabank Ethical Leadership Award? Please visit our nomination page.
Previous award recipients include Justice Rosalie Silberman Abella, Anna Tudela, Irwin Cotler, Richard Pound, Chief Phil Fontaine, and Sir Graham Day. These individuals, through their actions and decisions, have demonstrated character, courage and adherence to ethical principles. Leaders from any sector—public, private, or not-for-profit, are eligible to be nominated. The winners will serve as an inspiration to other practitioners and to today’s students.
We hope to see you at this years’ Ethics in Action event! For more information about the event, the Scotiabank Ethical Leadership Award, or the past recipients, please visit our website.
Sylvain
Dr. Sylvain Charlebois
Dean, Faculty of Management
December 2017
Seasons Greetings! Wishing you the joy of family,
the warmth of friends and the gifts of laughter, peace, and love.
“Loblaw is playing defense against the boogeyman of retailing. But if they play their cards right with home food delivery, they will be able to deliver much more than food to Canadian homes.”
Dr. Sylvain Charlebois
Dr. Sylvain Charlebois
Dean, Faculty of Management, Dalhousie University
Loblaw is the latest grocer to commit to offering home delivery. Starting in December, the number one food retailer in Canada is looking at deploying this strategy from coast to coast. It intends to deliver food at home, for a fee of course –an ambitious plan indeed. After spending millions in making many of its stores cathedrals where food is adulated, like the Maple Leaf Gardens store in Toronto, serving up President’s Choice in people’s homes now seems to be good enough.
Basically, the socioeconomic fundamentals that have supported large, big-box stores are weakening rapidly. Real estate is not cheap, growing same-store-sales is difficult these days and finding good labour to cover large spaces is challenging. In fact, as higher minimum wages are adding more pressure, grocers need to think of ways to make their equity and human capital work more efficiently. What’s more, a good portion of the Canadian population will become less independent to some degree. By 2025, more than 8 million Canadians will be 65 or older. And if you add Canada’s unpredictable — and sometimes horrid — weather, these indicators point to one thing: the bricks-and-mortar model is becoming much less appealing for a growing number of Canadians.
Our modern lifestyle is also a factor. Quite simply, time-strapped consumers are looking for convenience. Those who can’t or don’t want to cook are also are looking for quick fixes, and that is exactly what the food retail industry is trying to offer. Grocers are increasingly attempting to chase down the money that is showing up at their doorsteps less and less often.
As a result, we are continuing to witness the slow death of the traditional grocery store. For one thing, an increasing portion of our budget is dedicated to eating outside the home. At almost 30% of all of money spent on food, Canadians are on track to breaking a new record this year. Secondly, most of us are online, shopping for anything and everything. And yes, food is part of that portfolio. About 5 years ago, barely 1% of our food purchases were made online. Today, some unofficial estimates suggest that number is now close to 4%. We are progressively catching up to the Americans, who are at 7%. And given Walmart’s recent results, online grocery shopping is expanding. Walmart’s online sales in the U.S. grew by almost 50% last quarter, a lot of which was food sales. Canada is seeing similar trends.
Even though grocers’ balance sheets in Canada are in fairly good shape, Amazon — the boogeyman of retailing — has become a legitimate threat since it took over Whole Foods this summer. Amazon is not just a business killer — it destroys entire sectors. The bookstore was its first victim, and since its acquisition of Whole Foods, we can assume that the grocery store is in Amazon’s sights. It is all about digital transformation for Amazon. It is redefining how the food industry and consumers make transactions in a digitalized, borderless world.
Among scalable home delivery businesses, Grocery Gateway was really one of Canada’s pioneers. For years, this fleet owned by Longo Brothers delivered food products in the GTA, while barely making a profit. In fact, Longo’s acquired Grocery Gateway back in 2004 from a failed dot-com project, a victim of the bubble in that industry. For 13 years, the competition stood back and did nothing, for fear of cannibalizing a fellow market grocer. Several questioned the sustainability of operating a full fleet of trucks while at the same time charging a hefty premium of 15-20% on an order of 50$. But Grocery Gateway learned from this, and is now expanding. For Longo’s, it was about running a good business. For Loblaw, it is about fighting the Amazon effect, which is why we are about to see an evolution in home food delivery.
Leveraged by data, connecting food retailing with homes can be powerful. In some U.S. cities, Walmart is currently delivering food directly to the consumer’s fridge. Imagine coming home and everything is already done for you. But in 10 or 15 years from now, in a revolutionary digital world, there is no limit to what we can do with home food delivery.
As an example, we could even see companies owning the food we receive, and only pay for the food we use and consume. Food in concession, so to speak. Food waste?No problem. Leftovers can be credited, resold on our behalf, and used for something else. Zero waste. Similar gains can be achieved on the nutritional front. Consumers could be wearing a portable device automatically telling their fridge it is time to get replenished to satisfy a customizable diet. The “fitbitization” of our food could allow for companies to deliver to our fridges and cupboards the food we need to better our health. Home delivery makes grocers face up to a more informed consumer. All the data consumers need is readily available online, where they can also shop at their own pace. It makes consumers more rational, so impulse buying would be nearly impossible –a scary thought for many food companies out there. In return, grocers will need to embrace precision retailing practices in order to match higher expectations. All of this becomes more conceivable with home food delivery.
A blend between a digitalized food retailing industry and our homes can seem incredible, and this is only the beginning. Grocery Gateway was more of an experiment. Loblaw, and likely others, may be playing defense for its long-term survival, but the opportunities are endless.
The Amazon effect is real, and it is here to stay and is keeping most grocers up at night, including Loblaw. Well, at least, Loblaw had the foresight of acting now before it is too late.
Dr. Sylvain Charlebois
Dean, Faculty of Management
Dalhousie University
November 2017
“Our political life is stagnating, capital and labor are virtually at war, the nations of Europe are at one another’s throats – because we have not yet learned how to live together. The twentieth century must find a new principle of association. Crowd philosophy, crowd government, crowd patriotism must go. The herd is no longer sufficient to enfold us.”
Mary Parker Follett, The New State, Introduction, 1918
Borthwick Institute for Archives, University of York
Last year, on December 18th, I was preparing for the holidays, wrapping last-minute presents and meeting up with friends to celebrate the season of peace, hope and joy.
This year, I am remembering that Mary Parker Follett passed away on this day, in 1933. While this may seem a solemn event, out of sync with this festive time of year, I find it appropriate to be commemorating a life well-lived. I am grateful that I have been introduced to a woman who lived a remarkable life, and shared, without hesitation, her extraordinary insight on organizational theory and organizational behavior.
I had never heard of Mary Parker Follett. Nor did I know that she is considered the “Mother of Modern Management” and is deemed, even now, as a foremost authority on democracy and social organization. January 2017, Dr. Cam McLarney introduced me to Mary Parker Follett when she invited me to be her research assistant.
Dr. McLarney was awarded a Dalhousie University Rowe Research Grant to build upon her current research on Mary Parker Follet. Dating to her doctoral days in 1992, Dr. McLarney had focused her research and writing on Mary Parker Follett’s work, specifically in the areas of leadership and vision. This project would expand into the areas of corporate governance and social responsibility, and explore the role of management consultants in this area.
This research project sent me to the Borthwick Institute for Archives at the University of York, in the United Kingdom. At the same time, I conducted my personal unofficial and undocumented mini-research project that involved asking everyone who I met if they had every heard of Mary Parker Follett. Not one person recognized the name!
2018 is the 150th anniversary of Follett’s birth as well as the 100th anniversary of her book, The New State. To honour this milestone, Dr. McLarney has graciously agreed to give a series of interviews over the course of 2018 which will highlight her research on Mary Parker Follett. What will surprise you, as it did me: many “cutting edge” concepts we think came from our “modern” time, had their origins in the writings of Mary Parker Follett.
We invite you to join the discussion over the coming year. We welcome your thoughts and comments.
Rebecca Budd MBA(FS) Class of 2003
Blog Coordinator, CFAME Connection
“In the depth of winter I finally learned that there was in me an invincible summer.”
Albert Camus
A Winter’s Day
“We’re very pleased to have been able to work with colleagues from the University of Guelph as we developed this year’s Canada Food Price Report. Canadians want to know what will impact the prices of their food. Our report continues to provide them with the information they are looking for – around food quality, trends and impacts on the price of food in their region of the country.”
Sylvain Charlebois, lead author of the report, and Dean of the Faculty of Management at Dalhousie University.
Wednesday, December 13, 2017 (Halifax, NS)
EXECUTIVE SUMMARY
This is the 8th edition of Canada’s Food Price Report, published by both Dalhousie University and the University of Guelph. Some of our predictions for 2017 were realized, but most of the food categories were affected by a significant structural change, which started in September 2016. We believe major discounting and disruption within the Canadian food distribution landscape caused by the increasing pressures coming from Walmart, Costco and Amazon led to this major shift in the market. Coupled with these sectoral changes were misleading macroeconomic forecasts set forth by most financial institutions 12 months ago. Most believed the Bank of Canada would decrease its overnight rate in 2017, and that the Canadian Dollar would be below $0.70, in comparison to the U.S. Dollar. However, the Bank of Canada increased its rate, twice, and the Canadian Dollar is now worth more than $0.78. Both events contributed to keeping prices much lower than predicted, in some categories.
Food inflation over the last 12 months has been reasonable for Canadian households, a trend which is expected to continue. In 2018, food prices in Canada are expected to rise 1% –3%. This is a slightly lower estimate than last year’s forecast, but still higher than what we have experienced to date in 2017. Annual food expenditure for a family of 41 is expected to rise by $348 to a total of $11,948 in 2018.
Vegetables and food purchased at restaurants are expected to see the highest increase in 2018. Vegetable prices are expected to be affected mainly by unaccommodating climate patterns. The food service industry is expected to be responsible for 59% of the anticipated food expenditure increases in 2018. The average family is expected to spend $208 more when eating out. In other words, we expect the average Canadian family to increase its food-away-from-home expenses by almost 8% in 2018. The average home is expected to spend almost 30% of its food budget in food service, the highest level in history.
While the province of Saskatchewan surprisingly experienced the highest increase in food prices, Nova Scotians saw their food prices drop by more than 1% overall in 2017, to date. But for 2018, food price increases are expected to affect most provinces, including the Atlantic Region and British Columbia. The Atlantic Provinces will likely see food prices go up, after a year of food price stagnation. For British Columbians prices will continue to increase, due to a higher general inflation rate. Both Ontario and Alberta will be faced with a more competitive marketplace, which will entice grocers to keep prices low. Higher minimum wages will not have an impact on food prices, since most companies are finding innovative ways to cut operating and labour costs and the focus on protecting margins will be enhanced as a result.
Food price increases in Quebec should follow the Canadian average. But generally, we expect food inflation to be somewhat consistent with the general inflation rate for 2018, across the country. However, there is consensus that the aggressive discounting strategies being employed by major grocers cannot continue indefinitely.
Major food topics for 2018 are expected to be the ongoing aversion to animal proteins, the new Canada’s Food Guide, and the rise of the Grocerant.
We invite you to read the full report:
Canada_Food_Price_Report_Eng_2018_
Canada_Food_Price_Report_FRE_2018_
Denise Hinds, Team Leader & Senior Manager, Call Centre within Fraud Management Division, Scotiabank
“My enthusiasm for the program transcends the challenges I face.”
Denise Hinds, Team Leader, Scotiabank
The phrase, Life-Long Learning, has become an ubiquitous tagline that encompasses our need to explore new horizons and opportunities. Our curiosity to know what is around the next corner stirs our adventurous spirits.
Adventures, however, are not for the faint of heart, for there is ever the promise of risk, hard work and ambiguity. Applying for an MBA program takes courage and resolve, characteristics that will remain faithful companions on the road ahead.
CFAME Connection reached out to Denise Hinds, Team Leader at Scotiabank and a current student in CFAME’s MBA(FS) program, for her thoughts on what compelled her to enroll in an ambitious academic program.
Denise Hinds:
Why did you decide to enroll in an MBA program?
Working within the financial industry, complacency is not an option. We are witness to many changes, from industry disruptors, cultural shifts to technological advancements and off-shore operations. The decision to enroll in an MBA program came with the recognition that, to succeed, I must remain relevant and competitive by adding knowledge and experience to my personal brand. My pursuit of an MBA education began over two years ago, fueled by pride in my over two decades of valuable work experience, as well as an awareness that, as a woman of colour without an MBA, I face an additional obstacle in an already fierce job market.
Prior to embarking on my MBA journey, I attended several Dal alumni events hosted in Toronto, which offered an opportunity to connect with Connie Chang, Ming Yeung and other Dal alumni who shared my passion for education. They inspired me to look closely into the MBA(FS) program. Dr. Martine Durier-Copp’s presentation, ‘Transforming the Professional Landscape: Managing Virtual Teams’ resonated with my work experience at the time, which was supporting departments in Stratford and Montreal. Dr. Bertrum MacDonald spoke to me about Dalhousie University’s 200th celebration in 2018, to which I jokingly responded that the fireworks would be for my pending graduation from the program (2 years later – looks like I was off by 3 years). Over the years, I have had the privilege of working with Dal alumni who encourage and foster collaborative interactions: Michael Ford, Irena Stropnik, Glenn Chappell, Helen Emanual, Yvonne Zeabin, and Don Cook to name a few.
For me, a vital benefit of the MBA(FS) program is that it offers an amazing network of people, those that inspire me to do more, to learn more, and to become more.
I have completed several semesters of the MBA(FS) program. The question I ask myself after each assignment, late night studying, or exam, is why do I continue in the program? The sense of accomplishment and personal growth is a great feeling, but for me it is now more about inspiring others. I have the privilege of being sought out as a mentor. My enthusiasm, passion and perseverance, in both my career and this program, prompts others to aspire to life-long learning.
Despite the many challenges and excuses that are present, the decision to enroll and/or continue in an MBA program is ‘because it matters’.
How do you keep the balance between work, study and life?
By creating moments. Work, study and life (family) make up who I am; the balance is found when I devote, to each instance, my ambition. My time in the office is not over shadowed by a looming assignment or what to prepare for dinner. Studying happens by booking time aside, away from work and family (equally as important is the support of family to enable that). Family time is a priority and I capture every moment I can with my little one, from dropping him off at school in the morning to doing arts and crafts with him when I get home. For me, it is about focus on what is important in the present.
There are always unplanned circumstances and exceptions that throw the balance out of sorts (e.g. 14-hour work days for several weeks straight; a sick family member; or term paper/group assignment requiring additional work sessions). With only 24 hours in a day, a full-time job and 14-20 hours a week dedicated to studying, balance comes down to making the most of the time I have.
Balance starts from within, with how I choose to live each day, organize my routines, and ensure I am getting enough sleep. There is a time and place for work and a time and place for study, but life is just that. The balance between work, study and life is made possible when I am in every moment.
“If you have a garden and a library, you have everything you need.”
Marcus Tullius Cicero (106 BC – 43 BC)
Tindaro Screpolato by Igor Mitoraj
Boboli Gardens, Florence Italy
Sylvain Charlebois, Dalhousie University
A bread cartel is alive and well in Canada. Or is it?
Canada’s Competition Bureau is investigating major grocery chains for evidence of retail price fixing.
Loblaws, Sobeys, Metro, Wal-Mart and other companies have acknowledged the ongoing investigation. The outcome of the inquiry will likely not amount to much, but it does raise the question: Why is bread is being targeted by the bureau?
Demonstrating beyond a reasonable doubt that grocers are colluding to keep retail prices artificially high is almost impossible. Several attempts have been made in the past, with mixed results.
The average grocery store carries well over 30,000 different products, and prices can be affected by an array of factors: Commodity prices, energy and labour costs, new food safety and packaging regulations among them. These and others factors can all influence price points in many categories more or less simultaneously. An intentional collusion to falsely inflate profit margins would be hard to prove.
Historically, bread prices have been quite stable, with the exemption of 2008 and 2009, when prices jumped almost 50 per cent in a single year for all bakery products.
On the whole — unlike prices for fruits, vegetables and even meat products — bread has been immune to fluctuating prices for some time. In fact, Canadians have access to the most affordable food basket in the world.
After the United States, Ireland and a few other countries like Singapore, Canadians spend less on food relative to their income than most countries in the world.
Nonetheless, since we live so close to the United States, where food quality is generally questionable but amazingly cheap, we often believe our own food prices are unfairly high. Prices are indeed higher here than in the United States, but much lower than in many places around the world.
In the last month alone, food retail prices have dropped in Canada, including bakery products. So, to suggest that food prices are inflated in Canada is somewhat far-fetched. And if Canadian consumers are paying too much for bread due to price-fixing schemes, the evidence isn’t readily apparent.
At the centre of this investigation, however, is a much deeper problem that lies in the food supply chain.
For years now, grocers have engaged in an open war with food processors, with grocers trying to position themselves as protectors of the public interest by pushing vendors to lower prices in order to remain competitive.
For the past few years, tensions between grocers and vendors have been at an all-time high. Major grocers have demanded price cuts from suppliers, causing a domino effect on the entire industry.
So, it’s not surprising to learn that independent grocers, through an industry association, passed along their concerns to the Competition Bureau. Consumers have barely noticed the conflict. Until now, that is.
Almost by design, the Competition Bureau may be trying to communicate to the market that grocers are on watch for squeezing processors.
As a food staple, bread is an appealing target. The bureau could have selected any food product, but bread’s status as a staple makes it an obvious choice — a clear majority of Canadians eat bakery products almost daily and, as a result, its price is an ongoing concern.
It was chosen for a reason: To make an otherwise dreary, obscure, supply-side issue more imperative to the daily lives of consumers.
Publicly traded companies extorting each other is less of a political or PR concern than allegations that grocers are allegedly gouging consumers. The investigation will likely not yield material results, but bread is clearly the best medium through which the bureau can send its message.
It’s not likely any grocer will be accused or arrested any time soon, but the Competition Bureau investigation could potentially restore peace within the food industry family.
A vibrant food sector is not possible without a strong food-processing sector, and making sure all make a decent profit within the food industry is difficult.
Nonetheless, consumers can only benefit if all sectors, from farm to table, succeed over time: we end up with a greater variety of decently priced, high-quality, innovative food products. Ultimately, and without sending anyone to prison, this investigation could strengthen the food sector.
Grocers know better than to engage in a doomed strategy of quotas and illegal price-setting activities. The mere spectre of a grocery cartel would not only be bad business, it threatens to tear up the social contract with the Canadian public that they adhere to every single day.
Consumers can expect to see deals being made within the industry in the days ahead.
Food shoppers will almost certainly experience rebates in the bakery section as grocers rush to reassure their customers that a bread cartel in Canada is nothing more than a myth.
Sylvain Charlebois, Professor in Food Distribution and Policy, Dalhousie University
This article was originally published on The Conversation. Read the original article.