Online distribution channels - which retailers are still missing out?

An interesting update here which lists the (relatively) few major retailers who still do not offer an e-commerce.  I’m surprised to find Morrisons and Primark still listed as e-commerce lagards.  Interesting too how long it has taken the likes of H&M and Zara to begin selling online - their stores go live this September 2010.

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing -
Tags: tesco, primark, asda, e-commerce, morrisons, sainsbury's, distribution channel
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Organic growth - Greggs CEO Outlines His Strategy

The growth story of Greggs plc is a really good one to use in the business classroom.  We used it in our AQA BUSS2 revision workshops in April 2010, looking at how Greggs could improve its net profit margin through economies of scale and improved productivity.  Here, in this short video interview, the CEO of Greggs (Kennedy McMeikan) outlines what he believes makes Greggs distinctive on the high street and why this creates a significant organic growth opportunity for the business.

Posted to BUSINESS THEMES - •Business Strategy - •Retailing - •TEACHING BUSINESS - •Video Case Studies -
Tags: organic growth, greggs, growth strategy, business growth
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Edexcel GCE Unit 4a - Strategic Analysis of Morrisons

Many thanks to Mark Tottman who has, once again, produced a superb strategic analysis to support the latest pre-released case study for Edexcel GCE Business Unit 4a.  For exams in 2011, the case study is supermarket chain WM Morrisons.  Mark’s analysis, which is ideal for all Edexcel Unit 4a centres, is now available from our online store.

Posted to BUSINESS THEMES - •Business Strategy - •Retailing - •EXAM BOARD SUPPORT - •AS & A2 Business - •Edexcel Unit 4a -
Tags: morrisons, supermarket retailing, edexcel unit 4a
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Inflation and profit margins - lessons from the market

Here’s a great video from the BBC which is a neat way of introducing the concepts of price inflation and profit margins - all in one!

Posted to BUSINESS THEMES - •Economic Environment - •Marketing - •Retailing - •TEACHING BUSINESS - •Video Case Studies -
Tags: inflation, costs, bank of england, net profit margin, inflation target
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Retail strategy - the turnaround challenge at Argos

A great interview with the CEO of Argos in the Guardian today which is packed full with useful business studies material.

Posted to BUSINESS THEMES - •Business Strategy - •Retailing -
Tags: retailing, business strategy, argos, return on investment, market leader, home retail group, sara weller, refurbishment
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The most successful Dragons’ Den pitch so far?

There have been several notable moments in Dragons’ Den over the years, many of which have caught the eye of Business students and teachers.  This one is exciting simply because of the amount of financial interest it has generated....

Posted to BUSINESS THEMES - •Business & Technology - •Enterprise and Startups - •Marketing - •Retailing - •Small Businesses -
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Analysing the Market - UK Cinema in 2010

A huge hat tip to Geoff for spotting this amazing resource which could prove really useful - particularly for students undertaking research tasks such as BUSS4....

Posted to BUSINESS THEMES - •Business Strategy - •Leisure, Travel & Tourism - •Marketing - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) - •TEACHING BUSINESS -
Tags: market share, cinema attendances, uk film industry
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A tricky customer service problem - chicken nuggetts are off

No sound on this video clip, but sometimes actions speak louder than words…

Posted to BUSINESS THEMES - •Customer Service - •Retailing - •TEACHING BUSINESS - •Video Case Studies -
Tags: customer service, health & safety
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Seasonal demand arrives early (very early)

So much for the magic of Christmas!  Its early August and the first Christmas store has opened in London.  Selfridges, the upmarket London department store, claims that the early opening of the Christmas section is in response to customer demand (they would, wouldn’t they?).  What next? A section offering year-round fireworks or easter eggs?

This BBC video explains more

Posted to BUSINESS THEMES - •Marketing - •Retailing -
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Retail banking through the ages - a pictoral guide

On the day that Metro Bank launches in the London - the first new retail bank for 100 years - the Telegraph has produced this slideshow which illustrates how retail banking has changed over the years.  Some good examples in here of the changing face of customer service as well as the ways in which retailing in financial services has altered over the decades.

Retail banking has seen much technological innovation - from the introduction of computerised transaction processing, to the cashpoint machine and smart card.  I’m not sure that the reputation of banking (and bankers) has improved much over the years though. Most entrepreneurs I speak to don’t have a good word to say about the banking sector currently.  Maybe the launch of Metro will herald a new era when banks start taking their customer seriously rather than patronising and ripping them off in equal measure

Posted to BUSINESS THEMES - •Business & Technology - •Customer Service - •Retailing -
Tags: innovation, customer service, technology, banking, metro bank
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Tesco sells some stores - a good example of a sale and leaseback

Here’s a great example to use with students if you need to explain the concept of a sale and leaseback (a common “source of finance” referred to in the textbooks).

Posted to BUSINESS THEMES - •Finance & Accounting - •Retailing -
Tags: tesco, sources of finance, leasing, sale and leaseback, sale of assets
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Ocado - a rich source of business studies material

The recent flotation on online grocery business Ocado provides a wealth of teaching and learning resources for business studies.

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce - •Economic Environment - •Finance & Accounting - •Retailing -
Tags: shareholders, external environment, ocado, flotation, risk factors
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World Cup 2010 Business Winners and Losers

The Guardian has a useful article today summarising what it believes are the main business winners and losers (in the UK) from the World Cup 2010.  It uses reported financial results and other marketing data as the basis for the analysis (which is an interesting discussion point for students).  Well worth printing out and using as an example of external factors which affect demand in a market.

Inevitably the article focuses mainly on retailers - who tend to release more data, more quickly than other sectors.

The more confident students might question some of the analysis and evaluation in the article, perhaps questioning whether it was the World Cup which was the reason for a better/worse performance - or whether it was the underlying competitive strength of the business which was key.

Posted to BUSINESS THEMES - •Economic Environment - •Marketing - •Retailing -
Tags: demand, market share, competitive advantage, market growth, world cup 2010, external environment
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The uncertain future for cash

Cash has lasted a surprisingly long time, and its demise has been predicted for at least twenty years as electronic payment methods have grown and developed.  There was even a debate if euro notes and coins should be produced when the single currency came to life in 2002.  But fanciful predictions have a way of becoming fact and as festival season approaches there’s a BBC article suggesting that cash is to be axed from UK festivals.

Posted to BUSINESS THEMES - •Business & Technology - •Change Management - •E-Business & E-Commerce - •Economic Environment - •Leisure, Travel & Tourism - •Retailing -
Tags: cash, electronic payment, leeds festival, festival season, oyster card, reading festival
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Sensory marketing

I have come across a couple of stories this week which might provide a bit of light relief for students deep into their BUSS4 preparation, and might also be worth filing away to be used next year when thinking about novel approaches to marketing. They both have to do with supermarkets needing to find ever-more imaginative ways to promote their goods in a saturated market.

The first comes from the magazine ‘The Week’ on their ‘It must be true - I read it in the tabloids’ page. A local supermarket in the USA has erected the nation’s first scented billboard - it has fans which ‘waft the odour of charcoal, meat and black pepper over the road’ as you drive past. Harald Vogt of the Scent Marketing Institute says that ‘It will definitely catch your attention because you have to breathe’ - you have to agree with the man.

Meanwhile Tesco has launched a singing sandwich. Its a limited edition item for the World Cup - a jalapeno chicken sandwich in a wrapper that sings ole ole ole to you when you open it. Professor Joshua Bamfield from the Centre for Retail Research said he thinks the product will be successful, as people are embracing the World Cup more than ever this year. I would suggest that its success may depend more on other external factors, like how the England team fares in South Africa. Apparently the idea for the recipe is based on the England team’s spicy diet - I will avoid the obvious comments about that after the result against Algeria last night, but simply suggest that as this is a limited edition item, you may need to get down to Tesco before Wednesday if you want to sample it.

Posted to BUSINESS THEMES - •Marketing - •Retailing -
Tags: marketing mix, promotion, saturated market
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Business survival strategies for independent bookshops

You may remember “You’ve Got Mail” - a romcom starring Meg Ryan & Tom Hanks.  The film casts Hanks as the head of a gigantic bookstore chain and Ryan as the owner of a small children’s bookstore shop - no prizes for guessing who wins, and what happens at the end. A decent cinematic example to use to make the distinction between mass and niche marketing…

This useful article in the Guardian examines the competitive issues and strategies being pursued by smaller, independent bookshops in the face of a pretty hostile competitive environment.  Lots of great business studies material in there for students - particularly AS & A2 students wanting a slightly different example of how to manage a business effectively.  Some key points to draw out include:

- Segmentation differences: the needs and wants of a book customer in a large chain or supermarket are very different from those of customers who frequent the local small bookstore
- E-commerce?  Hardly any mention of this as a distribution strategy - but extensive use of face-to-face promotion using book-signings as a way of atttracting customers into the stores
- Highly mature / low growth market: makes it very difficult to earn an adequate return on investment.  Competition is described as “cut-throat”

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing - •Small Businesses -
Tags: competition, niche market, segmentation, mass market, waterstone, bookselling
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Supermarkets set for a new price war?

A good article in the Observer today which helps students make the link between a changing economic environment & competitive behaviour.

The bottom line?  Competition in the UK grocery supermarket sector looks set to become even more intense than normal - due to a series of adverse changes in the economic environment.  The key factors increasing competitive rivalry include:

- Fuel & transport costs rising (higher operating costs)
- Mortage rates no longer declining (households are now used to the existing level of disposal income)
- Food price inflation very low (little opportunity to increase profits from higher selling prices)
- Consumer confidence dropping again (perhaps anticipating the “double-dip” recession and much higher unemployment from cuts in government spending)

Might the result of the above changes be a sustained price war? Difficult to say - a price war is just one way to compete based on lower pricing.  Perhaps we are more likely to see greater use of sales promotions.  The market certainly looks set for a tough year or two.

Posted to BUSINESS THEMES - •Marketing - •Retailing - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS4 -
Tags: inflation, competition, tesco, asda, price war, morrisons, sales promotion, sainsburys
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The Tesco Question: the boss steps down

I’ve called this ‘The Tesco Question’ to draw parallels with what I called a while back The Primark Question. These remain high up the list of my FAQs.  Does a successful business that offers what customers (apparently) want at low prices have something to apologise for?  Are these firms adding to society or destroying it?  You’ll have to make your own minds up on that one, and the debate is currently much discussed as Tesco’s boss for the last 13 years, Sir Terry Leahy, steps down.

What’s behind the rise of Tesco - and the accompanying controversy?

Posted to BUSINESS THEMES - •Aims and Objectives - •Business Ethics & CSR - •Business Strategy - •International Business - •Leadership & Culture - •Marketing - •Retailing -
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Forget vouchers or stamps - give your customers some shares…

Well, perhaps not “give” your customers shares; but possibly offer them the chance to invest in their favourite online grocery provider.  That’s what upmarket etailer Ocado is hoping to do. Press reports today highlight Ocado’s plans to offer their customers the chance to participate in a possible stock market flotation of the business.

Should the customers invest in Ocado if the opportunity arises?  The business has never made a profit, yet it has successfully raised many millions of investment from high net-worth individuals, corporates and venture capitalists in recent years as it has built its business model.  The talk is of a business worth £1 billion at flotation - even though it is not (yet) profitable.  Students might debate why such a business might be so valuable - the answer lies in branding, market positioning and competitive advantage.

Posted to BUSINESS THEMES - •Business Strategy - •Finance & Accounting - •Retailing -
Tags: sources of finance, venture capital, share capital, stock market, ocado, flotation
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Meet Laura Tenison - Business woman of the Year 2010

I think this is the best news about a Business CPD event that we’ve ever had at tutor2u. I’m thrilled to announce that Laura Tenison will be a keynote speaker at the Business Teacher National Conference on Friday 18 June 2010.

Laura founded JoJo Maman Bebe – an independent mother and baby products retailer.  Her story, and approach to business, will simply inspire you. Here is a short video of Laura in action to give you a flavour of her passion for business.

Last month Laura was named Veuve Clicquot Business Woman of the Year for 2010.  A tremendous achievement for a special woman.

I have heard Laura speak before - she is quite simply not to be missed. Laura will be with us for an hour at the conference before joining us all for a lovely buffet lunch at the British Library Auditorium.

Laura Tenison started the business in 1993 with a single sewing machine and the Newport-based company now has a £21m turnover and 280 staff. More importantly, Laura and her team have developed a unique approach to employee motivation and corporate social responsibility.

Somehow, amid running a company with 300 staff, a turnover of £20m and 27 UK stores, Laura also finds time support entrepreneurialism amongst women, help run a children’s charity fighting infant mortality in Mozambique, take on work experience students with Down’s Syndrome and remember the names of her employees’ grandchildren!

Laura’s presentation and Q&A will be invaluable to anyone teaching any level 2 or level 3 business course.  You will be able to use her story again and again.  We’ll make sure that you can takeaway loads of teaching resources from the presentation too.

Trust me, you’ll never forget hearing from Laura - certainly the most inspirational business person I have ever met.

Places at the conference on 18 June 2010 are available from just £100 for colleagues participating as part of the tutor2u departmental deal (three or more places over the three days for Politics, Economics & Business from 16-18 June 2010).

The booking form can be downloaded from this link:

http://www.tutor2u.net/bookingform-natconfs2010.pdf

Alternatively, just email Chrissie in the office to request places for you and your colleagues.

The whole day should be a wonderful way to celebrate the end of another school year for business teachers - and a great way to be inspired for the new year ahead!

Posted to BUSINESS THEMES - •Business Ethics & CSR - •Business Strategy - •Leadership & Culture - •Human Resource Management - •Retailing -
Tags: laura tenison
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Silence is Golden for the Tesco Nuns

Its not often that students can combine religious studies with business studies all in one case study.  But here is a cracker for illustrating the stakeholder conflicts that can arise from business growth.

In a nutshell, the story is this.  Nuns at Whitby’s Order of the Holy Paraclete have agreed to sell off a parcel of land to enable Tesco to build a new supermarket in the North Yorkshire coastal town.  Whitby doesn’t currently have a supermarket operated by one of the Big Four.  Local residents rely on convenience stores and independent retailers - who as you might imagine are less than happy about the arrival of the global retail giant.

There is a useful related article here where TV retail guru Mary Portas argues the case against the “relentless” rise and domination of the large grocery chains.

Posted to BUSINESS THEMES - •Business Ethics & CSR - •Retailing -
Tags: stakeholders, tesco, grocery supermarkets, whitby
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Strategy Case Study - Asda Nets Netto

As we emerge from the recession, expect to see a sharp increase in mergers and acquisitions activity.  A great example announced yesterday - the acquisition by Asda or 193 Netto stores which enables Asda to claim that it is now the number two grocery retailer in the UK behind Tesco.

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS4 -
Tags: tesco, strategy, asda, aldi, lidl, external growth, acquisition, grocery supermarkets, netto
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BUSS4 UK Recession - More Profit & More Customers - How Sainsburys Did It

Grocery retailer Sainsbury’s have increased net profit by 17% and added 1 million customers since the start of the economic downturn.  How did they do it?

Posted to BUSINESS THEMES - •Marketing - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: advertising, market share, marketing mix, sales promotion, sainsburys, segmentation, customer loyalty, own-label, grocery retailing
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Strategy Case Study - HMV Takes on Clothing Diversification

Catching up on some news clippings from the last couple of weeks, I came across this excellent example of a retailer looking to diversify into new markets…

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing -
Tags: hmv, diversifcation
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British vodka beats the world!

Chase vodka is made on a farm in Herefordshire, and has been voted the best vodka in the world at the World Spirits Competition in San Francisco. It is a brand born from the entrepreneurial spirit of Will Chase, the founder of Tyrrells Chips, who was looking for something to do with the potatoes grown on his farms that were too small to be used to make crisps. Vodka is usually made from grains, and the premium brands from Russia and Poland retail at up to £35 a bottle, but while looking for something else to do after he had sold most of Tyrrells to a private equity group, Mr Chase came across a potato vodka distillery in the US and spotted an opportunity. 

Posted to BUSINESS THEMES - •Enterprise and Startups - •Leadership & Culture - •Marketing - •Retailing - •Small Businesses - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS2 -
Tags: entrepreneur, production, enterprise, branding, expansion
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Container shipping: the greatest business innovation of the 20th Century?

I was totally caught up in BBC4’s The Box That Changed Britain - an absolute must for business and economics students.  This fantastic programme covered business costs, logistics, retail, business location, productive efficiency, human resource management, trade and globalisation.  Nearly everyone is busy at the moment with revision, but if you want a pause for thought (or a resource for debate after the exams) this is it.

And I’m hard pressed to think of any other innovation that has had such a significant impact on business in the last 50 years.  Ideas anyone?

Posted to BUSINESS THEMES - •Business & Technology - •Business Strategy - •Emerging Markets - •Economic Environment - •Globalisation - •International Business - •Marketing - •Human Resource Management - •Operations Management - •Retailing -
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The dangers of focus on one product

According to a report in The Grocer, Jersey Royal new potatoes are one of the most heavily promoted lines going - they are considered to be one of the first signs of the arrival of summer produce. However, in a gastronimically mixed metaphor, they suggest that this illustrates the dangers as far as retailers are concerned of putting all your promotional eggs in one basket, as this year’s crop, which should just be reaching the supermarkets and greengrocers now, is reduced by about half by the worst drought for the last 30 years.

As a result, the supply chain is suffering and the supermarkets have all sent representatives to Jersey in the last few days to try to secure supplies to meet their demand. “Traditionally, coming up in the next couple of weeks you’d have the big volume coming on line where all the retailers would look to do the big promotions this week, next week and the week after, but clearly that volume is down,” said Mike Renourd of the Jersey Royal Company. 

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing -
Tags: supermarkets, demand, supply, retailers, promotion, marketing, jersey royal potatoes
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Pricing strategy in action - John Lewis (video)

A nice short clip from the BBC series on JLP here - which focuses on how the business supports its pricing strategy “never knowingly undersold” through detailed market research on competitor pricing.

View video on John Lewis pricing research

Posted to BUSINESS THEMES - •Marketing - •Retailing -
Tags: pricing, pricing strategy, market research, sales promotions, competitor pricing, john lewis partnership
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Motivation and management at John Lewis

These news reports about the 10% rise in profits at John Lewis are valuable for students preparing for AQA BUSS 4, as they give plenty of material about how the group turned poor half year results into splendid full year profits in the midst of the recession and decline in high street spending. The report in the Guardian is particularly interesting as it examines the advantages brought by the unusual corporate structure, and the quality of management of the company which it concludes isn’t the best-run in Britain. While the article in Management Today compares the profits with those of Morrisons, and contrasts the growth strategies of the two businesses.

They are equally valuable for those preparing for the AS unit 2 papers, as they examine the way in which John Lewis uses profit sharing as a means of financial motivation, alongside a wide range of other fringe benefits, and in return have a labour turnover which is half that of most of their competitors. They should be viewed alongside the BBC’s series of three programmes about John Lewis and will be of greatest interest of all to any students who have part-time jobs at Waitrose or the department stores, as they stand to gain a 15% profit sharing bonus!
BBC News - John Lewis profits top £306m as staff share big bonus
The Guardian - At John Lewis, ‘happiness’ beats profit
Management Today - Booming Waitrose powers John Lewis to bumper profits

Posted to BUSINESS THEMES - •Business Strategy - •Change Management - •Leadership & Culture - •Human Resource Management - •Operations Management - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS2 - •AQA BUSS4 -
Tags: recession, aqa, motivation, morrisons, waitrose, john lewis, fringe benefits, profit sharing
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Adverts that know where you are

If the tabloids tell us where Cheryl and Ashley are at all times, it should make life easier for jewelry thieves lurking near their house.  That point makes some people anxious about constantly revealing their location.  Others are far less concerned, which could be a real bonus for advertisers.

Posted to BUSINESS THEMES - •Business & Technology - •Business Communication - •Marketing - •Retailing -
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Technological change shakes up book production

A nice, short piece in the Economist covers everything from changes to production systems and book retail with economies of scale an important consideration too.  Electronic book readers have had a lot of attention recently, but there may be a good deal of life left in the paper format yet…

Posted to BUSINESS THEMES - •Business & Technology - •Operations Management - •Retailing -
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Entrepreneurial success - Cath Kidston bucks the recession

A neat entrepreneurial success story that will appeal to the female business students who are fans of specialist retailer Cath Kidston.  An initial investment of £15,000 has turned into a stake worth around £25 million.  Not a bad ROI.  Lots of good stuff in this interview article for students wanting an example of niche business which has grown strongly despite the recession - and still lots of growth opportunities to exploit.

Posted to BUSINESS THEMES - •Business Strategy - •International Business - •Marketing - •Retailing -
Tags: entrepreneur, enterprise, cath kidston, niche retailing
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A CEO’s take on the effect of the recession on UK restaurants

The Restaurant Group plc operates several hundred mid-market restaurants in the UK, trading under familiar names such as Frankie & Benny’s, Chiquito and Garfunkels.  I came across a really useful piece of research evidence whilst looking through their Annual Report and Trading Statement for 2008 in which the CEO of the business outlines the potential effects of the UK recession on strategy - and how the recession is viewed as a net positive for the business! 

Rated: (5/5), based on 1 review

Posted to BUSINESS THEMES - •Business Strategy - •Leisure, Travel & Tourism - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: recession, unemployment, employment, interest rates, market share, barriers to entry, consumer spending, restaurants, market positioning, the restaurant group
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Branded coffee shops prove resilient to the UK recession

A very useful article in the Feb 2010 edition of Cafe Culture (the trade magazine for the cafe industry) has explained what a winning strategy has been in the UK coffee shop market during the recession.

Rated: (3/5), based on 2 reviews

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: recession, starbucks, brands, organic growth, branding, costa coffee, caffe nero, coffee shops, price promotion, like-for-like
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Is the cost-conscious UK consumer here to stay?

One of the attractions of researching the UK retail industry is that is rarely a shortage of useful data which can help to spot trends and issues.  Take the amount that UK consumers spend on eating out…

Posted to BUSINESS THEMES - •Business Strategy - •Leisure, Travel & Tourism - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: productivity, efficiency, adding value, fast food, cost-minimisation, profit margins
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Recession turns the UK into a fast-food nation

An interesting way to measure the winners and losers of the recent recession in the UK is to examine what has happened on the ground in the retail sector.  One annual survey which paints an interesting picture of how the recession has changed Retail Britain is conducted by the Local Data Company, which sends its researchers walking around the UK’s largest towns and cities marking which retailers are trading.

Posted to BUSINESS THEMES - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: recession, market share, mcdonalds, dominos, organic growth, burger king, pret a manger, fast food, eat
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Can Greggs Become the Skoda of Pies?

This is a great article for Business students.  The Times describes how bakers chain Greggs (which has prospered during the UK recession) is trying to reposition its brand as the UK comes out of recession. 

Rated: (5/5), based on 1 review

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: starbucks, pricing, pricing strategy, branding, added value, greggs, pret a manger, reposition
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Cultural diversity – a tough issue for international business

I was reminded of research I’d done into some of the problems businesses can face when they expand overseas after reading In Paris, the customer is not always right.  What’s considered good customer service in the London might be hopeless in Lisbon.  I’ve jotted down a couple of examples of cross cultural cock-ups that have plagued international retailers.

Posted to BUSINESS THEMES - •International Business - •Marketing - •Retailing -
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Opportunities for Poundland in the recession

Students taking AQA BUSS4 this summer are asked to research the recent recession in the UK, and the first research bullets requires students to consider “how the recession can create opportunities and threats for businesses and industries”

Here the BBC are reporting that Poundland and other everything-for-a-pound stores are expanding fast from 380 stores ten years ago to 742 at the end of 2009.

Rated: (2/5), based on 1 review

Posted to BUSINESS THEMES - •Credit Crunch - •Retailing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: recession, aqa, opportunities
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Strategy in a recession - Fusion Systems

A terrific article and audio interview clip on the BBC site that makes a great resource for business students preparing for AQA BUSS4 (UK Recession)…

Posted to BUSINESS THEMES - •Business Strategy - •Credit Crunch - •Finance & Accounting - •Marketing - •Retailing - •Small Businesses - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: recession, demand, downturn, stocks, working capital, fusion systems
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Leadership sets the culture for a thriving retail brand

Wow - this article is just made for students who would appreciate an up-to-date, but definitely non-textbook example of how to use HRM effectively in a retail business…

Rated: (5/5), based on 2 reviews

Posted to BUSINESS THEMES - •Business Organisation - •Business Strategy - •Leadership & Culture - •Human Resource Management - •Retailing - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS3 - •AQA BUSS4 - •TEACHING BUSINESS -
Tags: training, recruitment, culture, organisational structure, leadership, decision-making, empowerment, intuition, private business, multisite
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External influences - supermarkets reducing promotions on alcohol

The Grocer magazine reports that major supermarkets have fewer promotions on alcohol this January than they did a year ago. The trend was most noticeable at Asda, where alcohol makes up 13% of all promotions compared with 26% last year, and on average the proportion has fallen from 26% to 22%. Meanwhile promotions on fruit and vegetables have risen from 11.5% a year ago to 14% now (and in Morrsons, from zero to 2%). Last week the proposals to limit pubs in the number and type of promotions that they were allowed to offer to encourage drinkers (women drink free, all you can drink for £10 and so on) were criticised because they applied to pubs and clubs only and would have no effect on cut-price promotions from retailers of alcohol. Perhaps the supermarkets are opting to cut the number of price promotions that they offer in order to try to avoid regulation being applied to them - last week, Health Secretary Andy Burnham hinted the government was considering minimum pricing to tackle “ludicrously cheap booze”.

Posted to BUSINESS THEMES - •Business Ethics & CSR - •Political & Legal Environment - •Retailing - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS4 -
Tags: supermarkets, external influences
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Product, pricing and profitability in a changing market

In an article in the Business Section of the Sunday Times, Rachel Bridge looked at the vital importance of getting the marketing mix right for businesses struggling to survive the downturn in demand during the recession. The focus is on product, pricing and profitability in the changing market place. One point, that tends to get forgotten in market research, is the value of talking to those who are not currently customers as well as those who are. There are some excellent examples in the article, from a jeweller who introduced a new, cheaper range in order to allow customers attracted into her shop to find something affordable rather than leave empty-handed, to a couple running a pet and house minding business which has launched a “business in a box” to enable people to set up on their own just like they had. For a one-off fee of £6,995 plus VAT they supply a manual, a website, two days of training and the right to set up a similar business in a specified region.
The article concludes with some key lessons for reviewing the marketing mix:
- Consider introducing a cheaper range to appeal to more cost-conscious customers but make sure it does not damage the image of your business.
- Be wary of marking down prices of existing products to attract customers. Once lowered, prices are very difficult to put back up.
- Don’t continue to sell products or services purely for sentimental reasons. If they are not in demand, or they don’t make a profit, ditch them.
- Get a clean sheet of paper and write down the ideal product range for the market you are serving. Then work out how to adjust your range to mirror this.
- Don’t make decisions in isolation — ask your customers what they think of your product range and what they would like to see more of.
- Work out the profitability of your products. It may no longer be enough to justify stocking them.
- Review the way you sell your products and services. Can they be ordered or delivered online? Is selling them wholesale still the best way, for example, or should you be trying to build a brand of your own?

Posted to BUSINESS THEMES - •Business Strategy - •Marketing - •Retailing - •Small Businesses - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS2 -
Tags: demand, price, supply, profit, product, marketing mix, profitability
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The Show Must Go On!

If you’ve been amused by Jim’s blog about the unbreakable mobile phone that breaks you will have followed the link to a demonstration (that goes badly wrong) at the Consumer Electronics Show in Las Vegas.  But didn’t the recession kill off all those huge events?  Weren’t they supposed to be replaced with an internet equivalent?  A recent Economist article argues that big trade shows should bounce back from the downturn.

Posted to BUSINESS THEMES - •Business & Technology - •Credit Crunch - •Economic Environment - •Marketing - •Retailing -
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Flight to value has its impact on the Charity Shops

There is good news and bad news for the charity retailers here. First the good news. Oxfam reports that its like-for-like sales are up by 5% compared with 2008. This includes a 7% increase in sales of books, and £2.4million of sales due to its online sales drive - a 70% increase in the year. This is very much in line with teh ‘flight to value’ during the recession, experienced by many other retailers of low-cost goods such as New Look, Primark and Asda which the Guardian reported last week is leaving retailers like M&S and Next stuck in the middle of the market.

On the other hand, Oxfam are also feeling the pinch over the donations that they receive in their shops. The same consumer caution that has caused their sales to rise has also led to fewer donations, which have fallen by 15%. Families are, they think, buying less and replacing fewer clothes and household goods, so they have less to give away. Mr McCullough, the charity’s director of trading, suggests that this could be taken as an indicator of whether the economy is really recovering yet. “Discretionary spending remains low, big sales are starting earlier and discounting harder, and we’re having to work harder than ever to maintain the high quality of donations.” Donations to Oxfam’s shops have “long been a barometer of retail trends in the UK, rising and falling in direct parallel with the strength of the high street - the current mood of optimism may be misplaced”.

Posted to BUSINESS THEMES - •Credit Crunch - •Economic Environment - •Retailing -
Tags: recession, retailers, consumer confidence, oxfam, discretionary spending, retail trends, flight to value
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Retailer performance - interactive resource

A big hat tip to Tracey Bell for spotting this great interactive resource from the Guardian. The guide to high street winners and losers is updated with the latest trading statements from all the best-known retailers as they let shareholders know how the crucial Christmas period went.

Posted to BUSINESS THEMES - •Retailing -
Tags: retailers, retailing, high street retailing
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Retrenchment and capacity cutting at Blacks Leisure - and then expansion again?

This could be a useful story for AQA unit 4. Blacks Leisure, who own the 208 Millets and 13 Freespirit stores as well as the 92 Blacks stores selling outdoor clothing and equipment, announced their results for the 6 months to 7 January yesterday. Although half-year sales fell 3% to £98.9m, the company had closed 87 loss-making stores in November and the sales figures excluding those stores - the like-for-like sales at the remaining stores – were up 12%, showing that a policy of cutting capacity can turn around business results very effectively.

Posted to BUSINESS THEMES - •Business Strategy - •Change Management - •Leisure, Travel & Tourism - •Retailing - •EXAM BOARD SUPPORT - •AS & A2 Business - •AQA BUSS4 -
Tags: aqa, capacity, growth, retrenchment, creditors, expansion, core business
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An interview with the boss of John Lewis

This four-minute radio interview with the MD of retailer John Lewis is packed full with great business studies material - ranging from the economic environment, to business growth strategy, diversification and incentising employees.  The link below launches the interview, which was on BBC Radio4’s Today programme.

Listen to interview with Andy Street (MD John Lewis)

Posted to BUSINESS THEMES - •Business Strategy - •Economic Environment - •Retailing -
Tags: john lewis partnership
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A successful family business strategy - go to Specsavers

A terrific interview in The Sunday Times today with the CEO of Specsavers, the hugely successful and family-controlled retail optician.  I can see this business appearing in business exams in the next couple of years.

Posted to BUSINESS THEMES - •Business Strategy - •International Business - •Marketing - •Retailing -
Tags: business strategy, specsavers, joint ventures, opticians
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Bottom Line - Keeping Overheads Low

30 seconds of business studies gold here - from the inspirational founder of specialist retailer JoJo Maman Bébé - Laura Tension.  Laura spoke at the tutor2u Business Teacher conference back in 2006 and she really is a tremendous role model for students.

The question is - what is the most important lesson she has learned in business.  Laura’s answer is simple - keep overheads low.

The clip would make a great starter or stimulus piece, and students could then consider some follow up questions.  E.g:
- Define what is meant by the term overhead
- Explain how overheads affect the breakeven position of a business
- Identify three major overheads that a retailer like Laura needs to control
- What are the potential disadvantages of trimming overheads to their minimum?

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Posted to BUSINESS THEMES - •Business Strategy - •Finance & Accounting - •Retailing - •TEACHING BUSINESS - •Starters & Plenaries - •Video Case Studies -
Tags: breakeven, overheads, laura tenison, jojo maman bébé
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