Schultz on Leadership, Love and the Competitive Advantage of Culture
We know that the BUSS4 is a big fan of the Apple and Steve Jobs - and with good reason. As our BUSS4 Topic Tracker indicates, a previous essay question (Jan 2010) used the example of Steve Jobs to ask students to evaluate how easy it is for a Chief Executive to change a struggling business into a more successful one.
Steve Jobs shares much in common with another well-known entrepreneur and CEO - Howard Schultz (Starbucks). Both men founded, left and then returned to lead a turnaround of their respective businesses. Both have taken on the challenge of taking a business idea through rapid growth and then also manage a global brand in a much more uncertain external environment.
Might Howard Schultz feature in a future AQA BUSS4 essay choice? Its certainly possible and this article from Ernst & Young ought to be essential reading for any A2 business student who wants to build their understanding of Schultz and his leadership style and business strategy for Starbucks.
read more...»Still more praise for the “John Lewis model”
You’re probably aware that the John Lewis department stores and Waitrose supermarket chain are doing very well at the moment, with sales figures rising strongly whilst retailers elsewhere are struggling. Several commentators have been keen to go beyond the marketing factors behind their success, instead paying closer attention to the firm’s unusual model of ownership and control.
read more...»It takes 20 years to build a reputation and five minutes to ruin it
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Warren Buffett
When delivery firms are busy and drivers have a tight schedule to meet, there is a danger that corners are cut. A FedEx driver’s unorthodox actions, may cost him his job and damaged the firm’s reputation for reliability, after a disgruntled customer uploaded footage of the delivery of a computer monitor.
Now FedEx is under pressure from the customer and the media who will be watching how it limits the damage to its reputation.
The clip although it may emphasize the importance of training, and corporate culture, the actions of individuals who work for a firm have a bearing on its reputation, sales, profits and market share. A firm is only as good as the people it employs, discuss.
Great product, bad management?
At first glance, Olympus is a market leader in the endoscope market, miniature cameras used in micro surgery and engineering inspections.
Online marketing at children
The British Heart Foundation have been campaigning recently about the actions of junk food companies marketing at children online.
read more...»Fair Trade
Actress Emma Watson launches organic clothing line in support of the People Tree Foundation, with all profits resulting from sales going to the People Tree Foundation. Nice starter to the topic of fair trade (and also nice to talk about something other than coffee or chocolate)
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Ethics - Coca Cola ‘Happiness is Home’ Project
This Christmas, where will happiness strike next? Is this Coca Cola’s attempt to further enhance their reputation, or merely a clever marketing tool to increase their Christmas sales. Let your students decide….
read more...»Is this CSR Champion Acting Like Scrooge?
Unilever has a terrific reputation for its CSR activities. So some students might be a little surprised that it has hit the headlines for perhaps the wrong reasons?
read more...»CGI modelling gauze and effect
Photographs of flawless models with tiny waists, perfect bums and endless legs, may hold the attention of consumers, but is it ethical to use computer generated images to promote a firm’s clothing ranges?
International operations decisions - Adidas trainers for $1?
This makes an ideal example for students considering the challenges of international location in operations management for which they must consider global
markets, cost reduction and avoidance of trade barriers. Here is my plan for the case study and questions which could be set on it:
Could Adidas make a profit from selling branded trainers for $1? Certainly not in any of their developed markets – but since 2008 they have been working on a market development (Ansoff!) strategy which would give them access to the vast market in rural India with a social enterprise venture at a price that local people can afford. The goal of the project, the firm says, is not to maximise profits but to “tackle social issues” by creating jobs.
read more...»Stakeholders argue over executive pay
It seems that this debate isn’t going to go away, which will surprise few of you. At a time when the economy is struggling, unemployment is rising and living standards are stagnant, why is one group in society getting so much wealthier? One pressure group, calling itself the ‘High Pay Commission’ (they are obviously trying to draw parallels with the government’s own Low Pay Commission) is in the news for publishing a report describing high executive pay as ‘corrosive’.
read more...»Olympus Epic Fail
The scale of the failings in corporate governance at Olympus is breathtaking. The company has misled, shareholders, banks, auditors, stock markets, Japan’s government, and staff about the true state of its finances over a 20 year period. It is Corporate Social Irresponsibility on the grandest of scales.
read more...»Corporate Irresponsibility at Olympus
Recent problems at Japan’s Olympus Corporation highlight the importance of corporate culture, ethics, Corporate Social Responsibility and management responsibility to shareholders and other stakeholders.
Can you copyright a dance move?
Is it really possibly to copyright dance moves? Well avant garde Belgian choreographer De Keermaeker believes Beyonce has ... and I have just used a couple of articles from The Guardian to create a great copyright, patent, trademark (revision) lesson today.
read more...»Making Profit from Waste
This is a truly remarkable 10 minute video which is perfect for showing to business students as a way of illustrating how entrepreneurial flair (and a large dose of technological innovation) can result in a profitable product which is genuinely good for society. A big hat tip to Geoff for recommending it.
read more...»Lesson Video - An Introduction to Stakeholders
A useful four minute video here from the Bitesize website which provides an accessible introduction to business stakeholders…
read more...»Disposing of e-Waste
This is a great BBC News Clip on what happens to our electronic waste when we no longer need it. WASTE MANAGEMENT appears in many syllabuses nowadays and waste disposal is becoming a more regulated and expensive aspect of a business’s operations. This video clip shows what happens when the costs rise and businesses try to find cheaper ways to dispose of that waste. Here is another BBC clip from Panorama
read more...»CSR - 40 Years of Upsetting Big Business
Greenpeace has just released this promotional video which reflects on their 40 years of campaigning against the activities of big businesses who damage the environment. We’ve seen many examples of these campaigns over the years, but how do CEOs respond when they find out that they have been targeted by Greenpeace? The 1 minute video speculates on their reactions.
Caution: the video contains strong language: you will need to judge whether it is suitable for your students…
read more...»Student challenge - who should sponsor the Race for Life?
Here’s a good case study which can be used to set students a research and discussion challenge. Tesco’s 10-year sponsorship of the superb Race For Life series is coming to an end and an agency has been appointed to identify and recruit the next headline sponsor. Who should they approach and why?
read more...»Women’s effect on corporate decision making
There’s a big debate to be had over society’s ambitions to see more women in the boardroom. The Guardian adds to this discussion by quoting from a report that has tried to analyse the effect of Norway’s quota system, in which the state says at least 40% of the board members of listed companies should be women. Female membership on British corporate boards now “edges up” to 13.3%.
read more...»New study shows CSR pays dividends
With BUSS4 and it’s research theme done and dusted for the summer it would be easy to overlook new articles on the issue of CSR, but the social environment and strategic direction remain at the heart of A2 studies. So it’s worth storing this article away in your favourites.
read more...»Shareholder revolt over executive pay at Burberry
One of the most important discussions in business is over the question of who matters most in decision making - shareholders, or a broader group of ‘stakeholders’.
Examples help illustrate the debate. Here’s one where the shareholders – the people who own the firm – clash with the managers of the business. The issue is the hot topic of the rewards claimed by top executives.
read more...»The Irresistible (?) Rise of the Super Rich
I wasn’t surprised to pick up on the news that the world’s wealthiest people are now richer than before the credit crunch. A striking feature of the last thirty years has been the emergence of a tiny group of people capturing a relatively enormous slice of national income. You may be astonished to learn that in the UK, the wealthiest 1000 people have assets worth more than £330 billion (that figure alone represents a sum equivalent to almost 40% of the entire debts of the UK government).
This raises a number of issues in Business. Firstly, you might focus on the marketing opportunities this offers to some firms. Equally, you might reflect on the CSR and ethical implications of this state of affairs. And finally: will it last? Might the tide be turning, with the next thirty years seeing attitudes change and tolerance for this situation coming under attack from electorates and their governments?
read more...»CSR - £20m extra annual profit for M&S from Plan A
What a timely update! M&S has just announced an update on the progress of Plan A - its sustainability strategy. Lots of details about the extent of progress against the many targets and objectives set by M&S. However, the headline news is that the overall financial benefit of Plan A has increased to £70 million per year; up from the £50m profit effect which many students will have seen ex CEO Sir Stuart Rose mention in this video clip.
Where has this profit improvement arisen? Well, more efficient use of energy in shops and distribution centres saved the most money in 2010-11, netting M&S an £13.5 million cost saving, followed by packaging reductions, which saved £11 million.
Plan A is the strategy which M&S intends will enable it to achieve its stated aim of becoming “the world’s most sustainable major retailer by 2015”. You can watch a really useful video with M&S’s new CEO Marc Bolland describing the next stages in Plan A here
CSR & Strategy - Why the Cooperative Group changed to survive
A brilliant article here from the excellent UK team at Ernst & Young which features an interview with Peter Marks, the CEO of The Co-operative Group. Perfect for last minute revision for AQA BUSS4 students…
read more...»CSR - Evidence of Failure to “Walk the Talk” when it comes to Carbon?
Some great research evidence in this topical article in the Guardian - particularly for students wanting an example or two of firms that have translated concern for environmental protection into hard-nosed objectives.
read more...»CSR - Greenpeace takes on Barbie by recruiting Ken
The Independent reports on a new publicity campaign by Greenpeace with targets Mattel, the global toy manufacturer and owner of iconic brands Barbie and Ken. In tactics similar to those used to put pressure on Nestle (Kit Kat’s use of palm oil from Indonesia), Greenpeace has accused Mattel of using packaging created from Indonesia’s depleted rainforests….
read more...»CSR - The Top UK Businesses for CSR in 2011
Some topical evidence here from BITC. This is the publication of their latest rankings for the CSR performance of 300 of the UK’s largest businesses…are the research firms of your students listed here?
read more...»CSR - The Business Case For CSR - Superb Data for BUSS4
A reference in a Guardian article today will take students to a treasure trove of evidence to support their research on CSR. Some cracking examples here for students wanting to top up their evidence crib sheets ahead of the A2 exams.
read more...»Economic environment: Emerging Markets
We’ve lived through an extraordinary period in world economic history. Sustained economic growth outside the areas once seen as the ‘rich world’ - primarily Western Europe, the US and Japan – is reordering the global balance of economic power.
The ‘emerging markets’ is a term used by commentators to group together some of these awakening giants. You may have heard of the BRIC economies - Brazil, Russia, India and China - a label that serves as a handy acronym to remind you of some of the key players. But there are plenty more. What does this mean for business?
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