Imad's Blog

Business ethics refers to applying general principles of right and wrong to business behavior and decision-making. It is not a separate or special set of ethics created just for companies or corporate situations. Instead, it draws from the same ethical standards expected in broader society.

Key Takeaways:
Ethics = Right vs. Wrong: Ethics deals with what is morally right or wrong. Business ethics applies this to business decisions and conduct.

No Special Rules for Business: Ethical behavior in a business context should match the ethical expectations in everyday life. For example:

If lying or cheating is unethical in one's personal life, it is also unethical in business.

If harming others is wrong, selling unsafe products or hiding defects is unethical, even if it costs the business money.

Bribery is unethical socially, so it remains unethical even when used to win contracts or favors in business.

Core Concept:
Business ethics = applying everyday moral principles to business practices and decisions.

Managers and employees are expected to follow these ethical standards when making strategies and interacting with others, whether they are customers, employees, or government officials.

In short, doing the right thing in business means following the same moral compass used in everyday life, with no exceptions just because it is "business."

When expanding into global markets, companies often choose one of these three strategies:

1. Multidomestic Strategy

Think local, act local
✔️ Best for: Clothing
Different cultures have different styles, climate needs, and traditions. Customizing per country is key.

2. Global Strategy

Think global, act global
✔️ Best for: Smartphones
People around the world use the same core features. A standardized product saves costs and stays consistent.

3. Transnational Strategy

Think global, act local
✔️ Best for: Home Appliances
Products like refrigerators need global efficiency but must also adapt to local power standards and kitchen layouts.

When it comes to grocery shopping, most people want two things: great food and a fair price. Trader Joe’s has found a way to offer both — but only to a specific group of customers. That’s what makes their approach a great example of a focused best-cost strategy.

Trader Joe’s key move is selling mostly private-label items under their own brand. This allows them to skip brand markups and control quality, while still keeping prices low. Unlike big grocery chains like Kroger that carry over 50,000 items, Trader Joe’s keeps it simple with only about 4,000 carefully selected products. That small selection helps them reduce inventory costs, store size, and rent — all part of their cost-saving strategy.

Another smart part of their approach is how they replace products that don’t sell well. This keeps their shelves filled with items that customers actually want. Because they target small urban locations with young, educated shoppers, they build strong brand loyalty. These are people who want high-quality, unique food but don’t want to pay Whole Foods prices — and Trader Joe’s delivers exactly that.

In my opinion, this strategy gives them a strong advantage in a competitive industry. Trader Joe’s doesn’t try to serve everyone. Instead, they focus on a specific niche and run a lean and efficient operation. Their choice of location, products, and pricing shows they really understand their customers. They make over $2,000 in sales per square foot, which is nearly double what Whole Foods makes — that’s proof their strategy works.

I also looked up more recent info and found that Trader Joe’s ranks very high in customer satisfaction. According to Statista (2023), it’s one of the top-rated grocery stores in the U.S. Customers appreciate the balance of quality, price, and a fun shopping experience — and Trader Joe’s manages to do that without even spending much on advertising.

In short, their focused best-cost strategy helps them stand out, keep costs low, and build customer loyalty — all while staying profitable.

When managing a project, you often need to bring in outside help — whether that’s hiring a vendor, buying materials, or outsourcing work. That’s where procurement contracts come into play.

Choosing the right type of contract is essential to protect your budget, schedule, and overall project success.

1. Fixed-Price Contracts (FP)
Fixed-price contracts lock in a set amount for the work — no matter how long it takes or how much it actually costs the contractor.

Subtypes of Fixed-Price Contracts:
• Fixed Total Cost: One price for the entire job.
• Fixed Unit Price: A price per unit (e.g., $100 per training manual).
• Fixed-Price with Incentive Fee: Bonus if the contractor finishes early or under budget.
• Fixed-Price with Price Adjustment: Accounts for inflation or price changes in materials (ideal for long-term projects).

📌 Best for: Clear and stable project scopes.
⚠️ Risk: Contractor assumes most of the financial risk.

2. Cost-Reimbursable Contracts (CR)
Also called “cost-plus” contracts, these reimburse the contractor for actual costs, plus a fee for profit.

Subtypes of Cost-Reimbursable Contracts:
• Cost Plus Fixed Fee (CPFF): A set fee added to reimbursed costs.
• Cost Plus Percentage Fee (CPPF): A percentage of the total cost is added as profit.
• Cost Plus Incentive Fee (CPIF): Bonus for reducing costs or exceeding performance goals.
• Cost Plus Award Fee (CPAF): Bonus is awarded based on subjective criteria, like client satisfaction or quality.

📌 Best for: Projects with uncertain or evolving scopes.
⚠️ Risk: The buyer takes on more financial risk.

3. Time and Materials Contracts (T&M)
T&M contracts charge based on hours worked plus the cost of materials used. These are often used when the scope isn’t fully known at the start or for smaller, short-term jobs.

📌 Best for: Flexible, fast-paced projects where precise scope is hard to define.
⚠️ Risk: Buyer carries most of the cost risk.


🧠 Final Thoughts

Understanding contract types helps project managers:
• Choose the right fit for the situation
• Control cost and risk
• Set clear expectations with vendors

Each contract type has pros and cons. The best choice depends on your project’s scope, timeline, risk level, and how well-defined your requirements are.

Canada Goose has built a powerful name in luxury outerwear using what’s known in business as a focused differentiation strategy. This means the company doesn’t try to compete with every brand or appeal to every shopper. Instead, it focuses on a specific niche—premium customers looking for high-performance, stylish winter gear—and differentiates itself by offering something competitors can’t easily match.

Here’s how CEO Dani Reiss executed this strategy successfully:

1. Narrow Focus on a Niche Market

Reiss cut out non-core products and stopped producing for private labels. This allowed Canada Goose to zero in on what they do best: high-quality, functional outerwear. By targeting a specific market segment—wealthier, fashion-conscious customers who live in or travel to cold climates—they could offer specialized products, not generic ones.

2. Premium Differentiation Through Quality and Heritage

Rather than outsourcing manufacturing to lower-cost countries, Reiss kept production in Canada. This decision added authenticity and justified the premium pricing. The use of real coyote fur, Canadian-sourced down, and a brand promise to perform in sub-25°F temperatures helped build a reputation for unmatched performance.

3. Strong Branding and Exclusivity

Canada Goose didn’t need to rely on sales or discounts. The brand’s exclusivity became part of its value. Their recognizable patch, celebrity endorsements, and visibility in high-fashion outlets helped cement its place as a status symbol—without losing its functional appeal.

4. Global Expansion with Consistent Strategy

After focusing the brand and building strong roots in Canada, Reiss expanded globally—but without diluting the brand. The company remained consistent in its product design, messaging, and pricing, allowing it to grow without losing the trust of its niche audience.

1. He narrowed the company’s focus by cutting private-label and non-outerwear products, doubling down on high-end parkas.

2. He kept production in Canada, while competitors moved overseas. This preserved the brand’s authenticity and quality.

By targeting upscale buyers who wanted function and style, Canada Goose built a premium identity around its “Made in Canada” image—complete with real coyote fur, rural-sourced down, and jackets tested for extreme cold.

The results? Massive global growth—jumping from $3 million in revenue to over $830 million in less than two decades—all without putting their $1,000+ jackets on sale.

Reiss’s strategy shows that staying true to your brand and owning a niche can pay off big, even in a crowded market like fashion.