The Business of Sport - A BBC Online Special
Spring hat tip to Ben White from Bromsgrove school for flagging up this new web resource from the BBC
The BBC now have a special feature ‘Business in Sport’ section:
Not sure whether its here to stay for long term but absolutely loads to pick up from here, including at a brief glance:
• Profit and Loss
• Sources of Finance
• Football Club Finances
• Legal /Contract and Ethical Issues
• Marketing / Sponsorship
• Impact of Recession
• Impact of World Cup on SA economy
All in a sporting context – brilliant!
Wonderland: The cinema/DVD lifecycle
A report in The Times explains how filmgoers will have less time to wait for films to come out on DVD after Disney won a decisive battle in Britain over release dates for Alice in Wonderland. Two of Britain’s biggest cinema chains had threatened to boycott the film because of Disney’s wish to bring it out on DVD 12 weeks after its cinema release rather than the customary 17.
read more...»Strategies for the Recession - Insights from Six Restaurant Group CEOs
I came across a super series of CEO interviews in Restaurant Magazine’s online edition whilst doing some research yesterday. Its real gold standard material for anyone wanting to gain some real-life insights into how businesses focus their strategy during a recession. I’ve highlighted some of the key quotes, issues and ideas below, together with links to the interviews themselves if students want to take a more detailed look. My emphases are in bold.
Looking through the interviews one more time, I picked up the follow key lessons for strategy:
* A recession is no time to allow quality standards to fall - customers expect the same or better quality for the same or a lower price. Customer expectations are rising.
* In consumer-facing markets, value-for-money is what customers really want
* Early, decisive action is key - as is management’s ability to hold their nerve in uncertain times. Leadership is therefore key.
* Customers will remain loyal - but they expect a business to do even more to earn their loyalty! Constant two-way communication and feedback with/from customers is vital
* Don’t cut back on investment in innovation - if the brand is built on innovation, keep investing
* Focus on the three P’s of management in a recession: people (training), promotion & product
* Pricing - keep it reasonable and accept a slightly lower profit during the downturn
* Drive costs down - but don’t throw the baby out with the bathwater
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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!
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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…
read more...»Contingency planning failure leads to customer service disaster
A wonderful topical example to use with A2 and similar students looking at the need for contingency planning, or at how breakdowns in communication can lead to some serious business consequences The report into the fiasco on Eurostar in December 2009 makes compelling reading. Lots of stimulus material in there for students, from both a contingency planning and customer service perspective.
Teaching added value: introducing the world’s first zero-star hotel
Looking for an alternative way of teaching the important concept of added value? Why note try this jaw-dropping video interview by the excellent Richard Quest on CNN. Richard took a look at a genuine no-frills segment of the travel industry...a zero star hotel.
read more...»AQA BUSS4 Section B Practice Question - BAA & the Heathrow Third Runway
In January 2009 the Government gave the go-ahead to BAA building of a third runway at Heathrow Airport. Subject to meeting environmental criteria, the new runway should be built by 2020, adding an estimated 400 flights a day at Heathrow and increasing annual passenger numbers through the airport from 66 million to around 82 million. The decision was welcomed by British Airways, the Confederation of Business Industry and the Trades Union Congress, but is strongly opposed by environmental campaigners and some local community groups.
With reference to the main stakeholders in the construction of a third runway at Heathrow, to what extent do you believe that the decision is in the best interests of BAA? (40 marks).
read more...»AQA BUSS4 Section B Practice Question - British Airways
Question 2: Cultural Resistance to Change
Willie Walsh, the combative CEO of British Airways, has faced significant industrial action as he implements a change programme designed to improve the competitiveness of the airline. To what extent do you agree that resistance to change is largely determined by the prevailing culture in an organisation? Justify your answer with reference to British Airways and/or other businesses you know. (40 marks).
read more...»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.
Mass-market holiday companies score worst for customer service - yet again!
The holiday industry is a tremendous source of lesson material - not just because most students can associate with the product due to their personal experiences. The publication this week of the annual Which? Holiday Report 2010 can help make some great points about segmentation, adding value and customer service.
read more...»Strategy in Action - Interview with Tim Richards (VUE CEO)
An excellent interview with Tim Richards, CEO of Vue Cinemas, in the Independent yesterday. Packed full of good business strategy material for A2 students. Read it here.
Also well worth downloading Tim’s superb Strategy Presentation from the tutor2u Business Teacher National Conference in June 2009
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Capacity Utilisation - When Operating at Full Capacity is Bad News for Customers
Sometimes a business needs to operate at slightly less than full capacity in order for customers to truly enjoy the experience of the service or product they have bought. Here is a video which helps make that point…
read more...»Financial motivation at British Airways - Cabin Crew Pay Compared
The industrial dispute between BA and its cabin crew is generating lots of heated debate - but also some useful stimulus material for business studies lessons. This graphic from the Daily Mail (not sure where the data is sourced from) would provide an interesting basis for discussion with students. Which airline would you prefer to work for and why?
Outdoor Ice-skating heads firmly down the product life cycle
Its rare that you come across an article with as many key business studies terms and concepts as this one…
read more...»Economies of scale - lesson idea
Here’s a lesson resource that could certainly make waves for you as a way of illustrating economies of scale…
read more...»What’s behind the BA and Iberia Merger?
There are lots of resources available (and a video clip to follow) for an interesting business merger case study. What factors have encouraged BA and Iberia to merge? What will it mean for the firm and for its customers?
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School for Santas
Here is a great example of skills training to meet a seasonal need, which was reported on the BBC website yesterday . A visit to santaschool.co.uk will enable you to register for one of the latest training courses.
Run in association with Dumfries and Galloway Council, Stuart Thompson is, for the second year running, offering a training course which has a very specific objective - to ensure delivery of unforgettable, quality experience to children of all ages. The training at Mabie Farm Park near Dumfries aims to help people take on the role in places like shopping centres and children’s parties and the website says that the training syllabus includes the History of Santa, voice training, costumes, make-up, roleplay etc. They also take bookings for personal home visits and reindeer hire - and the website is very carefully worded to ensure that the integrity of ‘the one and only Santa’ is maintained.
It is a spin-off of a business called Heatherbank Promotions which is an Entertainment Agency for Parties & Events, and strikes me as a great example of entrepreneurial product development!
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Pigging Out in the Recession
Whitbread has a new restaurant format - Taybarns - that is doing incredibly well in the recession…
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Strictly and X-Factor Drive Demand for Pizza
A hat tip to Gavin Chatterton for flagging this super news story that provides a neat alternative to the useful lesson on Dominos Pizza…
read more...»Great TV for Business Studies Alert - Hotel Rescue
A new series featuring Ruth Watson begins tonight on Channel 4. Hotel Rescue sees Ruth run a management bootcamp for six under-performing hotels. The six projects require serious work. From a run-down 32-bedroom hotel in Blackpool to a couple attempting to create a boutique B&B in Margate and proprietors with no hospitality experience, Ruth has her work cut out. it should be packed full with useful insights for Business students at all levels - particularly relating to customer service, marketing, financial planning, people management, quality and other aspects of operations. Highly recommended.
The lights go out for the nightclub market
Its bad news for shareholders of Luminar - but this news story is packed with rich potential for a business studies lesson…
read more...»Police caution the CEO for insisting on better customer service
Here is a fascinating story that is packed full with business studies material. What happens when a CEO of an airline unleashes a tirade against his staff - in front of his customers - who end up applauding him for his actions?
read more...»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…
read more...»Demand is booming for UK Cinemas
When Tim Richards (VUE Cinema CEO) spoke to Business Teachers at the 2009 National Business Teacher Conference, he was pretty upbeat about prospects for the UK cinema industry. Turns out Tim was right to be optimistic!
read more...»Analysing the Market - Download Tim Richards CEO Presentation
Tim Richards, CEO of Vue Cinemas, gave a tremendous presentation on the growth and strategy of his business at the Business Teacher National Conference on 18 June. Tim has kindly agreed to allow tutor2u users to download a copy of the presentation for educational use…
read more...»How to beat the tourism competition? Be the “steepest”
Destinations fighting for a share of the visitor attraction market have to constantly invest in the visitor experience in order to create a point of difference. For Flamingo Land in North Yorkshire, the focus is on offering thrill-seeking visitors the biggest, the best and (in this case) the steepest ride available.
What better way to promote a new attraction than to invite a BBC journalist to take the latest investment for a trial ride and then for the video to become one of the BBC’s most watched in recent days?
Enjoy.
Video case study: battling for survival in the restaurant trade
The consumer downturn has hit the UK restaurant trade particularly badly and record numbers of establishments are failing according to data for the first half of 2009. In the battle to survive, restaurant owners are taking risks by diversifying into the cafe trade and also looking to boost demand through aggresive sales promotion. This BBC video highlights the attempts of one restaurant entrepreneur to stay in business.
Download student worksheet (including video link)
More trouble in the skies
The ongoing turmoil in the airline industry continues, with the Irish national airline Aer Lingus announcing worse losses in this BBC news article
read more...»Strategic business decision-making - Network Rail
Network Rail’s proposed £34bn development of a high-speed rail line from London to Scotland could prove to be a great example to use with students over the next few years.
Network Rail has just published Strategic Business Case for New Lines. It attempts to justify the business case for both adding new rail lines and also releasing capacity on the existing rail network. There is lots of useful information in the publication relating to:
- Stategic objectives
- Stakeholders and the impact of investment on them
- Investment appraisal
- Capacity management
- Forecasting revenue and demand
- Environmental considerations
- Sources of finance (who pays?)
BA cuts out the cost of short-haul meals
It will take more than this to reduce its enormous losses, but British Airways has decided that meals on short-haul flights after 10.00am are for the chop…
read more...»Sources of finance: BA goes for the convertible bond
You won’t find this source of finance in any of the new A Level Business textbooks, though it is likely to be an increasingly popular option for quoted companies who want to raise substantial new financeo over the next year or two…
read more...»Pet Airways - Is This a Shaggy Dog Story?
I’m not convinced that this business start-up is for real. But the story comes from the US, and its featured on the venerable BBC, so it must be true…
read more...»Welsh Business Benefits from the Ashes
A nice video clip from the BBC website examines the direct and indirect economic effects enjoyed by businesses in Wales as the Ashes cricket series comes to Cardiff: A good example to use as students consider the effect on demand of external influences.
Coffee Republic struggles with the daily grind
This will be a story that is worth following over the Summer. Leading coffee shop chain Coffee Republic is on the bring of going into administration according to the papers yesterday. A story of over-ambitious expansion, unprofitable growth through franchises, the impact of the credit crunch and a struggle to handle intense competition from from better-resourced rivals such as Starbucks and Costa Coffee. So far as I’m aware, Coffee Republic has never made a profit - though it has long been feted as an entrepreneurial success story…
What makes a profitable menu?
Here’s a challenge you could set your students…
read more...»Standing room only - on Ryanair?
The undisputed kings of publicity are at it again. The Telegraph is reporting a story in the Sun (an interesting decision in itself) that Ryanair is considering offering standing room options rather than seats on some of its flights. Apparently it can increase the passenger capacity by up to 50% and reduce costs (unit costs per passenger?) by 20% by doing this. A good example to use with students who might want to consider the +’s and -’s from various business perspectives…
Nationalisation Again - National Express Taken into Public Ownership
First it was the banks. Now it is strategic transport businesses. The government has this morning nationalised the East Coast raiway line, previously operated by National Express.
read more...»Top Class Customer Service in Action - Yorkshire Airlines
A big hat tip to Mark Mitchell for showcasing this classic Hale & Pace clip as a way of introducing the topic of customer service…
read more...»Building a tourist facility on the top of a mountain
A fascinating case study of how to invest in a popular tourist destination. The new visitor centre at the summit of Snowdon has been built at a cost of £8.4m, but not without a huge effort by the people involved and despite opposition from some stakeholder groups…
read more...»A stunning example of how wage costs can differ for the same job
A very interesting and potentially explosive article in The Times today highlights the problems faced by British Airways as it seeks to reduce its operating costs…
read more...»Rebranding Blackpool as a tourist destination to attract…the French!
An interesting example of a marketing campaign designed to attract a slightly different customer base for the seaside hotspot of Blackpool…
read more...»A boom period for the UK domestic holiday industry
This short BBC video is a really useful stimulus piece for students who could look at how demand for domestic leisure trips (holidays, day visits, short-breaks) has boomed during 2009…
read more...»Business strategy video - two interviews with CEO of Virgin Atlantic
Two video clips make ideal stimulus material for a business strategy lesson…
read more...»Investment appraisal in the rail industry - Branson wants to take the long-term view
A fascinating and useful short video interview with Richard Branson discusses the business/investment case for allowing Virgin Rail to be granted a longer rail franchise…
read more...»BA posts a record loss
Truly awful trading figures from British Airways today, illustrating the severe competitive issues facing the airline industry…
read more...»Video Case Study - Just Jenny’s Ice Cream Start-up
A classic example of how a dairy farm attempts to diversify by adding value to the commodity it produces. Many dairy farms try to start their own ice-cream business. Some, but not all succeed. Here is a video clips about a farmer from Yorkshire who has successfully established an ice-cream brand. Great example to use in AQA/Edexcel Unit (AS) and of course the new AQA & Edexcel GCSE Unit 1 courses from September
Download student worksheet (inc video link)
Trading down - business class feels the pinch
Next time you step onboard Virgin Atlantic, Quantas, Lufthansa or British Airways, chances are you might end up sat next to a high-flying business person who’s feeling a little peeved at having to sit in economy.
read more...»OCR 2880 (ACE) - regional airports suffer from the downturn
A highly topical news piece from the BBC today which should be very useful for students preparing for the OCR A2 Unit 2880 exam on ACE.
read more...»OCR 2880 (ACE) - Why build a railway line when a bus will do?
One of the strategic choices facing students in the OCR 2880 case study is a potential project to build a railway line linking the ACE airport to the national rail network. Here’s what the real-life airport behind the case study has actually done when faced with the same challenge.
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