Recession Buster - Dominos On the March

Students looking for a suitable strategy case study to research how a business can take advantage of the opportunities presented by the recent recession in the UK would do well to spend some time looking at Dominos UK.

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Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce - •Marketing - •BUSS4 RESEARCH - •Recent UK Recession (June 2010) -
Tags: franchise, organic growth, dominos, pizza, growth strategy, fast food, dominos uk
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Amazon to move onto the High Street?

What an irony - Amazon may have been responsible for the demise of thousands of book shops, including Borders last week, but are now looking at opening high street stores themselves. As one of the few survivors of the dot com boom, they have fantastic online sales statistics - the international arm, which includes the UK, increased sales by 33% to $2.6 billion in the three months to September 30 and the US group has forecast growth of between 21% and 36% in its final quarter across the business. However the suggestion in this report from Times online (read it while you can, before it ceases to be free!) is that while they only sold books and CD’s, which could easily be delivered through a letter box, postal delivery was fine, but now that you can buy anything from a bicycle to a food processor, delivery is more complicated. Also, other retailers who use online sales as well as stores, like Argos, John Lewis and Tesco, suggest that many customers prefer to order online but collect from the store rather than wait for delivery. So perhaps we will see Amazon moving in to the stores recently vacated by Borders.....

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce - •Marketing - •Retailing -
Tags: retailers, amazon, borders, distribution
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Views of Black Friday

I like the name American retailers have for the traditional start of the holiday shopping season in America, which fell on November 27th this year.  What’s black about Black Friday?  It comes from the phrase ‘being in the black’ to mean having a bank balance of more than zero.  None of us like ‘being in the red’, which people usually take to mean being overdrawn or in debt.

This is explained in Business Studies by breakeven analysis.  Firms typically have huge fixed costs (or ‘overheads’) that run all year, even if the firm sells nothing.  These are the costs that firms need to cover in order to ‘breakeven’.

The money to cover these fixed costs comes from contribution.  This is the difference between the cost price of what they are selling (usually termed variable costs) and the selling price.  A $4 toy sold for $9 makes a contribution of $5 towards overheads.

By rule of thumb, the back end of November is the point at which US retailers have made enough contribution to cover their annual overheads.  That makes the Thanksgiving weekend the breakeven point, or Black Friday.  From now on until the end of the year, contribution is pure profit.  This makes the period up to Christmas a vital time for racking up high sales. 

What themes are emerging for Black Friday 2009?

Posted to BUSINESS THEMES - •E-Business & E-Commerce - •Finance & Accounting - •Operations Management - •Retailing -
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Pricing strategies and tactics under investigation

The Office of Fair Trading (OFT) is to undertake a detailed investigation into methods of advertising and pricing goods and services online.  This should prove to be a really interesting report when it is published in the summer of 2010, making it essential reading for anyone wanting to understand the variety of advertising pricing tactics and strategies being developed online.

Posted to BUSINESS THEMES - •E-Business & E-Commerce - •Marketing -
Tags: prices, price, pricing, oft
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Retailing activity - the online fashion challenge

The retail fashion market is big business in the UK - yet only 6% of sales are made by customers online (a much lower percentage than other consumer product markets such as electronics, music, games and books).  Here is an article that could be used to support an interesting student challenge.

Posted to BUSINESS THEMES - •E-Business & E-Commerce - •Marketing - •Retailing -
Tags: e-commerce, fashion retailing
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The Decline of Newspapers Creates a Surge in Local Startups

Here is a great way to allow students to consider two often separate elements of the business curriculum - the product life cycle and business startups…

Posted to BUSINESS THEMES - •Business & Technology - •E-Business & E-Commerce - •Enterprise and Startups - •Marketing -
Tags: costs, profit, startups, newspapers, hyperlocals
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George Davies and fashion retailing Part 4

George Davies specialises in breaking new ground in the fashion business. In the 1980’s he set up Next, and made a huge success of a new concept in fashion retailing with coordinated ranges for young professional women who wanted smart clothes with a bit of fashion edge to wear for work. In the 1990’s he moved to Asda, and introduced the George fast-fashion range of great value clothing which followed the cat walk styles and were written up in Vogue and the other fashion bibles – and remains cutting-edge with the introduction of a specialist range of Asian fashion clothing reported on the blog here last week. In the 2000’s he moved on again to bring Per Una to Marks and Spencer, which was the first time M&S sold any goods under a different brand name and rejuvenated the store’s reputation for fashion clothing. 

Posted to BUSINESS THEMES - •Business Ethics & CSR - •Business Strategy - •E-Business & E-Commerce - •Enterprise and Startups - •Retailing -
Tags: sources of finance, usp, corporate social responsibility, online retailing
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Online retailing fluctuates

Online shopping is fluctuating this year, which a growth of 15.7% in July compared to June, but a 10% fall in August to a value of £3.8bn. The goods given as the drivers of these rises and falls show which items we buy most online: the main reason for the August drop was lower sales of alcohol due to the wet weather causing barbecues to be cancelled (and also lingerie – can anyone suggest a seasonal reason for that one?) although online sales of shoes were up by 3%, thought to be due to parents buying back-to-school shoes ready for September. July’s increase was largely down to clothing with internet stores becoming better at converting browsers to shoppers – retail research showed that one in every 15 visits to a clothing shopping site resulted in a purchase – and electrical online sales were up by 11%. However, the increases were probably driven by heaving discounting and promotions so don’t necessarily indicate a boost to the profits of the providers. On the other hand, as we head towards a difficult Christmas retailing period for the second year, those who are establishing their online presence through discounting to penetrate the market may be using clever tactics.

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce - •Marketing - •Retailing -
Tags: retailing, marketing mix, distribution, market penetration, online sales
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The Customer Bites Back via the Blogosphere

A classic mini case study for anyone teaching customer service.  Andy Sharman was more than unhappy with their miserable Thomson Holidays trip to Tunisia - so he turned to blogging when Thomson ignored his complaints…

Posted to BUSINESS THEMES - •Business Ethics & CSR - •E-Business & E-Commerce - •Leisure, Travel & Tourism - •Marketing -
Tags: blogging, customer service, thomson holidays - holidays in tunisia, thomson holidays, thomson tunisia
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Facebook makes a profit

Here’s the question to ask if you’re wondering if something is sustainable: will it last?!  By actually making a profit, Facebook has achieved a significant milestone.  So many internet start-ups over the last decade have promised future profits – Facebook has actually delivered.  It’s announced that there are now 300 million active monthly users from around the globe and that it has started making profits ahead of schedule. 

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Posted to BUSINESS THEMES - •Business & Technology - •E-Business & E-Commerce - •Finance & Accounting -
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Is a recession the perfect time to launch a technology start-up?

Entrepreneurs love economic downturns.  So now should be a great time to be launching a start-up business, provided that the business model is viable…

Posted to BUSINESS THEMES - •Business & Technology - •E-Business & E-Commerce - •Enterprise and Startups -
Tags: recession, entrepreneur, downturn, startups, business model, techcrunch
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Is Friends Reunited in freefall?

An article in The Sunday times suggests that the value of Friends Reunited might be even lower than initial estimates as ITV looks to dispose of the one-time Internet darling.

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce -
Tags: tutor2u, facebook, friends reunited, private equity, disposal
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Corporate culture - inside the HQ of Twitter

The Guardian takes a guided tour round the HQ of the Internet’s hottest property - Twitter. Some interesting observations on corporate culture, the need for focus and fast decision-making etc.  The reader comments below the article suggest that many Guardian readers are not enthusiastic supporters of Twitter though!

Posted to BUSINESS THEMES - •Business Organisation - •E-Business & E-Commerce -
Tags: twitter, corporate culture
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Why businesses fail - an interview with Pepita Diamand

We featured the Wrapit business story in our AQA AS Business Unit 1 revision workshops in December 2008.  Students were asked to evaluate two alternative business start-ups - one of which turned out to be the failed wedding gift lists service Wrapit.  Now the co-founder of Wrapit has given an in-depth interview which provides a rich source of insights for our students into why businesses fail…

Posted to BUSINESS THEMES - •Credit Crunch - •E-Business & E-Commerce - •Small Businesses -
Tags: revision, aqa, profit, startups, cash flow, buss1, break-even, wrapit, pepita diamand, case study
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eBay Millionaire

A few good BBC video clips for those of you looking at entrepreneurship and business start-ups.  The online auction site eBay is promoting business flair on all levels, from household clear outs to the success of Britain’s first eBay millionaire.

from back garden to big bucks
online sales supplement incomes
street loves eBay shopping

I’m also pleased to see Norwich, my current home, is the UK eBay capital! 

Posted to BUSINESS THEMES - •E-Business & E-Commerce - •Enterprise and Startups - •Small Businesses -
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Social networking and the product life cycle

Here’s a cool feature from Google which students could use to see whether online search can be a predictor of the product life cycle of a brand, service etc…

Posted to BUSINESS THEMES - •E-Business & E-Commerce - •Marketing -
Tags: demand, tutor2u, google, product life cycle, facebook, twitter, friends reunited, google trends
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£21bn ‘Fat Finger’ mistake

I love the expression ‘fat finger’ mistake to describe a data entry error that nearly cost Swiss Bank UBS a whopping £21bn.

Posted to BUSINESS THEMES - •E-Business & E-Commerce - •Finance & Accounting -
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ITV under the cosh

Interesting article in the Telegraph speculates that the under-pressure broadcaster is preparing to sell its digital assets - including Friends Reunited…

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce -
Tags: strategy, friends reunited, itv, bskyb
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Diary of a Music Entrepreneur - The Story of Dolphin Music

I really like this recent piece in the Telegraph in which one of the co-founders of Dolphin Music outlines the key stages in the development of his business.  Some great learning points in there, even though the article is relatively brief.  You can learn more about Dolphin Music here.

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce - •Enterprise and Startups -
Tags: entrepreneur, dolphin music
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What happens inside the Amazon warehouse at Christmas

A terrific 2-minute video here that takes us inside the Amazon distribution centre at the busiest time of the year - the weeks before Christmas.  Perfect for illustrating technology in operations!

View Amazon warehouse video

Posted to BUSINESS THEMES - •E-Business & E-Commerce - •Operations Management - •EXAM BOARD SUPPORT - •AQA BUSS2 -
Tags: amazon
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Moonpig signs seals and delivers

Moonpig is a very British success story but, as Nick Jenkins remarked in his talk to the Eton College Entrepreneurship Society last night, there were moments and plenty of them when the survival of the business was on a knife edge. 

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce - •Small Businesses -
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Start-up case study - Petmeds

An excellent case study in The Sunday Times today tells the story of how Ricky Thomas set up Petmeds after spotting an opportunity from a change in legislation…

Posted to TEACHING BUSINESS - •AQA BUSS1 - •E-Business & E-Commerce - •Enterprise and Startups - •Small Businesses -
Tags: competition, aqa, entrepreneur, management, losses, edexcel, e-commerce, startup, legislation
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Wrapit’s persistent losses seal the wedding service fate

We reported on the financial problems facing Wrapit in a recent blog article and, unfortunately, the business has now been closed and put in the hands of the receivers…

Posted to E-Business & E-Commerce - •Finance & Accounting - •Retailing -
Tags: profits, losses, insolvency, kpmg, receivers
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Marketing mix - the online retailers have never had it so good

An interesting article in the Sunday Times highlights the strong sales growth being achieved by online retailers who have got their business model right…

Posted to TEACHING BUSINESS - •Business Strategy - •E-Business & E-Commerce - •Enterprise and Startups - •Retailing - •Small Businesses - •AS & A2 Business -
Tags: supply, costs, downturn, profit, retailers, environment, startups, e-commerce, startup
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Cash flow problems could mean its a wrap…

Are we about to see the return of the dot.com bust as online businesses also struggle to handle the consumer downturn?

Posted to BUSINESS THEMES - •Business Strategy - •E-Business & E-Commerce - •Finance & Accounting -
Tags: entrepreneur, downturn, retailers, cash flow, facebook, product, customer service, e-commerce, insolvency, social networking
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Funerals enter the digital age and kick up an ethical storm

Is it ethical to charge people to watch a funeral using digital video conferencing?  That is the question facing stakeholders in the funeral service in Southampton.

Posted to E-Business & E-Commerce -
Tags: stakeholders
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Bebo has been boughto

Bebo, the social networking website beloved of UK school students, has been bought by AOL

Posted to E-Business & E-Commerce -
Tags: strategy, takeover, bebo
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Is email a broken business tool?

Both the Guardian and the Telegraph have picked up on a report from an obscure social networking consultancy claiming that email is a “broken business tool”.

Posted to E-Business & E-Commerce -
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Has the Google bubble burst?

What on earth is happening to Google’s share price? Google’s shares first hit the market at $85 in August 2004 and by November 2007 had risen nearly ninefold, turning Google into one of America’s most valuable companies.

But since reaching a record closing price of $741.79, the share price has plunged more than 40 percent. 

Posted to BUSINESS THEMES - •Business & Technology - •E-Business & E-Commerce -
Tags: recession, price, pay, profit, google, profits, slowdown, share price
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Swapping tat for quality in the retail clothing market

A fascinating article in today’s Guardian contains some really useful material for any AS or A2 Business student or for those taking the BTEC First in Retail.

Posted to E-Business & E-Commerce - •Retailing -
Tags: retailing, e-commerce, niche market
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Another Business that doesn’t ‘get’ the internet: Hollywood

There are plenty of websites that offers films for download to personal computers, iPods or other hand-held devices, or to burn to DVD. They look professional, with easy to use features, detailed descriptions of each movie, editors’ picks, customer reviews and screen stills. Even the prices are reasonable.  The catch is – they’re illegal.

Posted to E-Business & E-Commerce -
Tags: demand, supply, risk, e-commerce
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The Social Network that Friends Forgot

Browsing Facebook the other night I saw a passing reference to one of the earliest social networking sites - Friends Reunited.  I remember using that site a few years ago, before it was bought by ITV for £120m and wondered what had happened to it since?

Posted to Business Strategy - •E-Business & E-Commerce -
Tags: competition, facebook, location, social networking
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Small businesses still don’t “get” the web

I’m really surprised, and a little disappointed, by news of a recent survey from Microsoft.  It suggests that only half of the 4.3 million businesses in the UK with fewer than 10 staff have a website.  The figure is reduced to 28% when sole traders are included, according to a poll by Jupiter Research.

Posted to E-Business & E-Commerce - •Enterprise and Startups -
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Is Ebay right to ban negative feedback?

Ebay’s phenonmenal success is based on many factors, one of which is trust between buyer and seller.  Until now, both buyers and sellers were allowed to leave feedback on the transactional process between two parties.  However, things are about to change, much to the annoyance of Ebay sellers.

Posted to E-Business & E-Commerce -
Tags: ebay
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