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Galaxy Note 7 Flaws Still Uncertain as Samsung Appoints Company Heir to Board

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SEOUL, SOUTH KOREA—Samsung Electronics is still trying to figure out why its Galaxy Note 7 smartphones were catching fire, the company said Thursday, as shareholders appointed the grandson of the company’s founder to its board.

The shift of 48-year-old vice chairman Lee Jae-yong, chairman Lee Kun-hee’s only son, to a bigger role comes at a crucial time for Samsung, South Korea’s biggest company.

Samsung Electronics, the world’s largest maker of smartphones, memory chips and TVs, reported a sharp fall in its quarterly earnings after the unprecedented recall and discontinuation of fire-prone Galaxy Note 7 smartphones wiped out its mobile profit in the last quarter.

Investors will be keen to hear how Lee, whose grandfather founded Samsung in 1938, plans to restore Samsung’s image and win back trust after the Note 7, initially launched as Samsung’s weapon against the iPhone, was scrapped less than two months after its launch.

The company reported dozens of reports of fires of both the original Note 7s and replacement phones handed to customers who handed in recalled phones.

Samsung has taken heat for its handling of the recall and its hasty and apparently incomplete initial investigation into what was going wrong with the premium smartphones.

Samsung’s top executive Shin Jong-kyun apologized to shareholders and customers Thursday, saying the company is looking into all possible issues to pin down why the phones were overheating.

The company’s decision to hold an extraordinary shareholder meeting to appoint Lee to the board, instead of waiting until its regular spring meeting, suggests a sense of urgency: the company cannot launch its next flagship phone, the Galaxy S8, without resolving the Note 7 mystery first.

“What is important is clearly investigating the cause,” said Lee Seung-woo, an analyst at IBK Securities. “It cannot develop a new product on top of the imperfect platform of the Galaxy Note 7, which had all of Samsung’s latest technologies.”

Samsung said it expects the Note 7 fiasco to cost it at least $7.1 billion through early next year.

Samsung’s mobile business usually contributes more than half of its overall income. But it generated just 100 billion won ($116 million) in operating income during July-September, compared with 2.4 trillion won a year earlier.

Total net income was 4.4 trillion won ($5.1 billion), down 17 per cent from 5.3 trillion won a year earlier. Sales fell 7 per cent while operating income slumped 30 per cent, in line with the company’s guidance earlier this month.

Even before the messy recalls, like other big “chaebol,” or industrial conglomerates in South Korea, Samsung was being urged to improve its transparency and corporate governance.

Lee Jae-yong is thought to have been making key decisions for Samsung since a heart attack in 2014 left his father, now 74, unable to oversee the company. But he largely handled internal management and meetings with VIPs.

Lee Kun-hee resigned from the board of Samsung Electronics in 2008, facing investigation over alleged tax evasion and other financial violations. His son’s appointment to the board was long expected, but is raising questions.

Lee Jae-yong was Samsung’s chief operating officer from 2010 to 2012. Some South Koreans have opposed giving him a board position because of questions about how he amassed billions of dollars of personal wealth and doubts over the performance of businesses he has run.

“He has never successfully demonstrated that he is eligible to be a board member,” said Lee Jee-soo, a lawyer and head of the Law and Business Research Center. “Just because he was born as the son of Lee Kun-hee, he is joining the board.”

Last year, Samsung narrowly won shareholder approval for merging two group companies, Samsung C&T and Cheil Industries. Critics of the plan said the only reason to merge them was to help Lee Jae-yong strengthen his control over Samsung Electronics without having to pay to acquire more shares.

Samsung contended that the merger was in line with local laws and necessary for the future of the two companies.

Kwon Oh-hyun, CEO of Samsung Electronics, said Lee has proven his leadership in other ways, such as helping to improve the company’s profitability through restructuring.

Samsung’s earnings report Thursday showed that while its mobile profit shrank dramatically, its components businesses, especially its high-density chips for computers and next-generation smartphone displays called OLEDs, performed well thanks to strong demand from global smartphone makers. The components businesses generated more than 80 per cent of the company’s quarterly income in the latest quarter, helping Samsung weather the cost of the handset recall.

Analysts expect those high-end components to be Samsung’s growth engine next year as more smartphone makers adopt Samsung’s OLEDs.

Anticipating strong growth in demand, Samsung said it will spend 27 trillion won ($31.5 billion) this year to increase production of OLEDs and an advanced chip.

Looking ahead, Samsung hinted that the worst may be over for its mobile division, forecasting that its mobile profit in the fourth quarter will likely be on a par with last year’s.

Lacking a new high-end gadget to fight Apple’s new iPhone, Samsung said it will introduce new mid- to low-end handset models while selling the Galaxy S7 and S7 Edge smartphones, which were launched in the spring.

Samsung’s founder Lee Byung-chull started out trading rice and dried fish in the late 1930s. The company has grown into an empire providing everything South Koreans need from cradle to grave, from ships and washing machines to insurance and semiconductors. Cheap government financing helped, as South Korea rushed to recover from wartime devastation and catch up with Japan and other developed nations.

The Lee family holds only a minority share in the company, but maintains control through a maze of cross-shareholdings in the 59-odd companies that make up the group.

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Beauty Week is back at Hudson’s Bay in Toronto and it’s time to get glam

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Beauty enthusiasts rejoice! Beauty Week at Hudson’s Bay is back in Toronto for another year. It’s time to stock up on all of your fall essentials and, maybe discover some new ones. 

From Friday, August 18 to Sunday, August 27, you can expect a truly elevated beauty experience in-store with incredible special offers, limited-time gifts, and exciting activations. 

If you’re a diehard beauty lover, you’ll already know that Hudson’s Bay is the place to shop thanks to its extensive range of over 195 skin and makeup brands from both luxury labels and masstige brands — including Tata Harper, Estée Lauder, YSL, Nars Cosmetics, Bobbi Brown, and so much more.

Throughout The Bay’s Beauty Week, visitors can take in some at-counter activations and interactive expert-led tutorials, where there will be chances to get makeup touch-ups from top-tier brands, try a spritz of the most alluring fragrances, and sample tons of new products.

This year’s Beauty Week highlight is the ‘Best in Beauty’ tote, a meticulously-curated selection of 30 deluxe samples from an array of top-tier brands like Dr. Barbara Sturm and Shiseido spanning skincare, fragrance, and makeup — all in a super sleek bag.

The tote, which is valued at over $300, is retailing for just $39 and is a fantastic way to explore new products (without breaking the bank). However, there is a limited quantity, so if you want to get your hands on one, you’ll need to be fast.

Wondering exactly what Beauty Week’s free gifts with purchases entail? If you spend over $95 at Lancôme, you will receive a six-piece set valued at $130. Or, you can get an Estée Lauder gift valued at $170 with purchases over $80. (And that’s just to name a few.)

If you’re a Hudson’s Bay Rewards member, you’ll also get $20 in Hudson’s Bay rewards when you spend over $100 on beauty.

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The Canadian Armed Forces are hiring for several non-combat military jobs

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The Canadian Armed Forces (CAF) have several non-combat jobs, some of which do not require a college degree or past work experience.

Life in the forces has several benefits, such as paid education plans (college, university and graduate-level programs), 20 paid vacation days, health and dental coverage for you and your family, maternity and paternal leave, and pension plans. You can learn more about the benefits in detail here.

And to make it easier to gauge if you qualify, the listings also include related civilian jobs to see if it’s your ideal role.

Financial services administrator

Related civilian jobs: Financial records entry clerk, financial manager, accounting technician, bookkeeper, budget officer, cashier clerk, business planner technician, and verification manager.

Description: You’ll help budget resources for all military activities besides providing financial assistance.

Education: You need to have completed Grade 10.

Duties: As a financial services administrator, you’ll be responsible for bookkeeping and managing budgets. You’ll also provide support in accounts payable and accounts receivable.

Work environment: Those in this role work at CAF bases, on ships or overseas. You might also be expected to help special operation units, recruiting offices, schools, and medical organizations.

Postal clerk

Related civilian jobs: Mail clerk, mail sorter.

Description: You’ll provide postal services to members and their families at bases and establishments.

Education: Grade 10. No previous work experience or related career skills are required.

Duties: As the postal clerk, you’ll handle mail duties.

Work environment: Besides a postal office, you may work on a ship or a mobile postal van. You might be expected to serve with Royal Canadian Navy, the Army, and the Royal Canadian Air Force in Canada and abroad.

Dental technician

Related civilian jobs: Dental assistant, dental hygienist.

Description: You’ll be helping dental officers provide dental services to CAF members, their families, and dependents.

Education: Level II dental assisting diploma from an accredited college or a National Dental Assisting Examining Board (NDAEB) certificate.

Duties: Those in this role will be responsible for various responsibilities, including disinfection and sterilization of dental equipment, applying rubber dams, placing cavity liners, and controlling bleeding. In addition, you’ll assist in laboratory procedures like creating casts, custom trays, and mouthguards.

Work environment: This role will require you to work in a military dental clinic, a Mobile Dental Clinic, an Air Transportable Dental System, or onboard a ship. You might be expected to work on a base in Canada or other operations in other parts of the world.

Human resources administrator

Related civilian jobs: Records administrator, data entry supervisor, receptionist, office manager, executive assistant, payroll clerk, and information management technician.

Description: Provide administrative and general human resources support.

Education: Grade 10. No previous work experience or related career skills are required.

Duties: In addition to human resources administration and services, you’ll be handling pay and allowances, managing automated pay systems, and maintaining personnel records.

Work environment: HR administrators work at all CAF bases in Canada. They also work on ships and overseas to support the Canadian Army, Royal Canadian Navy, or Royal Canadian Air Force operations.

Medical assistant

Related civilian jobs: Emergency medical responder, ambulance and first aid attendant, registered nursing assistant, licensed practical nurse, and hospital orderly.

Description: Successful candidates will help treat the sick and injured in CAF units. You’ll be assisting and supporting nursing and medical officers.

Education: Minimum of Grade 11 biology, Grade 10 physics or chemistry, and Grade 10 math.

Duties: You’ll provide initial care and essential life support treatments in trauma cases. You’ll help with health assessments (hearing and vision tests, perform basic lab procedures, etc.) and initiate and manage medical records and reports. You’ll also be expected to provide support and first aid during training exercises.

Work environment: Medical assistants may serve with the Royal Canadian Navy, the Royal Canadian Air Force or the Canadian Army as part of the Canadian Forces Health Services Group. Those in this role are exposed to the same risks as the forces they support.

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Porter’s new loyalty program promises to match Air Canada’s Aeroplan status

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Porter Airlines is once again stirring the pot among Canadian airline rivals, now going after Air Canada’s Aeroplan members by offering to match their loyalty status to an equivalent of their own.

The beloved airline, which recently ranked as having the best cabin service in North America, challenged the competition for the second time this year, after previously deploying a similar tactic against WestJet in the spring. 

Earlier in April, Porter presented customers with a limited-time offer to match the loyalty status of WestJet’s patrons with VIPorter levels.

Now, they’re offering Aeroplan members to seamlessly transition to an equivalent VIPorter Avid Traveller status based on their existing membership tier.

Members can then take advantage of an array of travel perks that come with flying Porter, including seat selection, baggage, and flight changes.

For those currently holding an Aeroplan membership, there are two ways to acquire the Avid Traveller status for the rest of 2023:

Status-Based Match:
  • Aeroplan 25K members = VIPorter Venture
  • Aeroplan 35K members = VIPorter Ascent
  • Aeroplan 50K, 75K, and Super Elite = VIPorter First
Flight Segments-Based Match:
  • 5 flight segments = VIPorter Passport
  • 8 segments = VIPorter Venture
  • 17 segments = VIPorter Ascent
  • 28 or more segments = VIPorter First

Members will have to first submit their applications on Porter’s website. Registration will remain open until September 6, 2023.

In order to maintain their membership level through 2024, customers will have until the end of 2023 to reach the following reduced qualifying spend (QS) targets:

  • Passport = $500 in QS
  • Venture = $750 in QS
  • Ascent = $1500 in QS
  • First = $2500 in QS

Over the past year, Porter has launched an aggressive expansion strategy, including everything from introducing longer flights on newly-purchased jet planes flying out of Toronto Pearson, free WiFi, and a new all-inclusive economy experience.

With Canadians losing both Swoop and Sunwing as WestJet incorporates both into their mainline business, Porter’s direct competition is welcome to keep prices competitive.

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