How will General Motors respond to the problem of over-capacity?
General Motors (whose main brand in the UK is Vauxhall) survived the global financial crisis thanks to the support of the US government. This is probably good news, but it adds to the problems of other car makers. In Europe there are simply too many, producing more vehicles than the market can absorb without heavy discounting, which hurts the manufacturers.
read more...»Takeovers and Mergers: Facebook & Instagram in News Clips
The Facebook takeover of Instagram for $1bn has generated a huge amount of media interest. The takeover is a great topical example for A2 business students looking at takeovers, and these video clips provide all they could possibly need in terms of looking at the motives for the deal and also the potential revenue synergies for Facebook.
read more...»CSR & Ethics: Damaging Allegations for Adidas and the London Olympics 2012
On the face of it, the findings of the Independent newspaper’s investigations into the sourcing of the official London Olympics GB team kit are very damaging for both LOCOG and the supplier - Adidas. You can read the full report here.
read more...»Costs, Cashflow and Closure - the Last French Beret Maker
France boasts some of the most famous fashion houses in the world, but there are few items of clothing more synonymous with the country than the beret. However, the nation’s last surviving factory that produces the item is now facing closure due to financial problems. With cheaper production costs, the iconic hat may in the future be made in Asia. A great example of the impact of emerging markets on the competitiveness of firms in developed economies. Some nice comments too in the video about the type of cash flow problems experienced by small manufacturers.
read more...»CSR - Ethics and Pay Day Loans
A downside of the prolonged economic downturn in the UK in recent years has been the rise of the pay day loan companies, particularly in locations that suffer from relatively low incomes and higher unemployment. In most countries, pay day lending is banned, but not in the UK where financial services of this kind are largely deregulated. This video examines the issue and asks some important questions about whether the activities of pay day loan companies are ethical - even if they are legal.
read more...»Enterprise, Location and Culture - Inside the new Google Campus in London
Google Campus, a building designed to offer technology start-ups desk space and mentoring in east London, was opened to much fanfare by UK chancellor George Osborne. But is the government right to look to the tech sector for economic growth? In this excellent FT video Daniel Garrahan reports from inside Google Campus. Some good teaching points here, including:
- The role of government support for technology startups
- Non-financial benefits of a suitable location for startup entrepreneurs and their employees
- Use of a location to bring together entrepreneurs and venture capitalists
- The cost savings for startups of locating in a venue like Google Campus
Strategy & Technological Change - Whatever Happened to BlackBerry?
The revenues achieved in 2011 by RIM, the owner of BlackBerry, fell by 25% compared with 2010. It looks like customers have fallen out of love with BlackBerry. Apple, HTC, Samsung and other operator have grabbed a large share of BlackBerry’s customer base, so it must be that BlackBerry has seen its competitiveness deteriorate.
This excellent video from the FT examines some key strategic issues facing Rim and its BlackBerry brand. Could the business be a takeover target now that the firm is trying to achieve a turnaround? But, if so, who would want to buy it? Can new product development save BlackBerry before it loses further market share in key markets like the US? A fantastic lesson resource for A2 students…
read more...»EntrepreneurLIVE! 2012 - Dates Announced
The dates and venues for EntrepreneurLIVE! 2012 have just been announced. We’ve moved this popular event to an earlier date to better fit with the teaching of a wide range of business courses and out of the cluttered Global Enterprise Week. So for 2012 we visit London on 1 October 2012, Birmingham on 2 October 2012 and finally Manchester on 3 October 2012.
We’re busy recruiting a fantastic team of successful and inspirational entrepreneurs who will guide business students through the highs and lows of setting up and running a business. We’ve got some pretty special people lined up and we’ll announce the names here on the Business Studies Blog as soon as their diary commitments are finalised.
The event will follow a similar format to the one which has proved so popular with teachers and students in the last two years. Students will get the opportunity to hear from a superb selection of entrepreneurs who will tell their story, provide insights highly relevant to every business studies course and then, most importantly, take questions from our student audience. We’ll also be running the highly popular Enterprise Pitch Challenge where student teams pitch their solution to a business challenge, competing to win some attractive cash prizes!
You can read a couple of excellent reports from students who attended Entrepreneur LIVE! 2011 here: from Sutton Coldfield Grammar School for Girls and here from Stoke Sixth Form College who brought students to Manchester (Salford Quays)
Provisional bookings for EntrepreneurLIVE! 2012 can now be made using this online form:
Sony - Hirai’s Turnaround Strategy - in Video Clips
At our A2 Business revision workshops in March we predicted that Sony would quickly become an essential research case study for students in 2012 and perhaps beyond, as we anticipated the strategic review being carried out by Hirai Kazou as he took over as CEO of Sony from Sir Howard Stringer. Events over recent days have supported that view. Sony’s plight - and proposed turnaround strategy - is packed full with fantastic business strategy materials. Perfect for comparing and contrasting with the likes of Apple, Samsung, Google & HTC.
Hirai’s announcement has been well covered in all the business media, particularly the online business television channels. Here is a selection of clips which help explain the strategy and also provide some examples of experts analysing and evaluating the likely success of the turnaround:
Update: BBC news, May 2012: Sony shares tumble to 31-year low amid record losses
read more...»Life and leadership at BA after Willie Walsh
This is an interesting article that I came across while looking for updates on how industrial relations and strike threats have been progressing at BA over the last year or so - the article was published last September so apologies if you are already familiar with it, but I think it is well worth reading. When studying leadership for BUSS4 we often use the example of Willie Walsh, and the rather deeply entrenched conflicts that became established with BASSA (the cabin crew branch of Unite). So it is interesting to see what has happened since Walsh moved on from the position of CEO of British Airways at the start of 2011 to become CEO of IAG instead.
read more...»Instagram - the business with no revenues, worth $1bn
Simply stunning. There’s no other way to describe the takeover by Facebook of Instagram…for a cool $1bn. This takeover has really made the technology market sit up and notice.
read more...»Organisational culture, strategy and performance in fewer than 1000 words
Tuning into the news last week I was not surprised to see the Met Police once again under the spotlight for all the wrong reasons (http://www.bbc.co.uk/news/uk-england-london-17636776). Described as suffering from ‘institutional racism’ by the MacPherson Report in 1999 it appears not a lot has changed at the Met police in the almost 20 years since the racially motivated murder of teenager Stephen Lawrence. So what exactly is going on?
read more...»Revision Presentation - Business & the Technological Environment
This new revision presentation focuses on the “T” in PESTEL - technology. The role of technological change as an opportunity or threat is examined as are the drivers of innovation and the process of diffusion.
read more...»ResearchBuster: Acquisitions
Our ResearchBuster blog posts are designed to help students identify and integrate examples of business strategy for their synoptic essays and exams. This ResearchBuster look at some of the most significant examples of takeovers / acquisitions in recent years…
(updated 8 April 2012 with 9 new entries)
read more...»Revision Presentation - Mission, Aims, Objectives and Stakeholders
This revision presentation provides an overview of the core strategic topic of business mission, aims and objectives. The main focus of the presentation is to outline the theory of the use of mission, aims and objectives rather than provide examples of these in context.
read more...»Revision Presentation - Business Ethics
This revision presentation introduces the concept of business ethics. The distinction between ethical and legal behaviour is examined as are the potential benefits and drawbacks of ethical behaviour. Some topical examples of business ethics in action are also provided.
read more...»Revision Presentation - Social Environment & Business
Changes in the social environment can have a dramatic effect on business. This revision presentation examines the impact of significant business influences from the social environment (e.g. changes in population size & structure, lifestyles, labour market).
read more...»Revision Presentation - Managing Risk
This revision presentation for business students outlines (with examples) some of the key things that can go wrong in business and explains the basics of risk management and contingency planning.
read more...»Revision Presentation - SWOT Analysis
A brief revision presentation which outlines the SWOT model of analysis.
read more...»Revision Presentation - Business & Interest Rates
This revision presentation explains the role of interest rates and how they affect both the cost of business finance and the wider impact on business demand.
read more...»Revision Presentation - Emerging Markets
This revision presentation provides an overview of the topic of emerging markets. It highlights some examples of how businesses have pursued a growth strategy in emerging markets and also how developed economies have seen investment coming in the opposite direction. A brief overview of the methods and benefits/drawbacks of international expansion is also provided.
read more...»The Dawning Age of the Chinese Multinational
Chinese companies have historically been characterised as low-cost, low-quality producers of manufactured goods. However, there is growing evidence of a new breed of Chinese company emerging that is able to compete on the world stage.
read more...»Revision Presentation - Business Legislation
This comprehensive study presentation guides students through the relationship between business and legislation (the “L” in PESTEL” analysis). It outlines the main purposes of legislation in the business environment, including consumer protection, environmental laws, competition policy and health & safety. It also provides some recent case studies of firms and industries affected by changes in legislation.
read more...»Move over Apple, Samsung, Sony & Nokia. Here Comes China’s Huawei
A great article here for students researching the competitive environment in the consumer electronics industry. Students should certainly be familiar with the strategies of Apple, Samsung, Nokia, Sony and others. But have they heard of Huawei? It looks like they might soon, if Huawei is successful in its objective of grabbing a significant share of the smartphone and tablet markets.
read more...»BUSS4 M&A - the Benefits of Foreign Takeovers of UK Firms
Buried in this article about generating investment in Manchester are some gems of examples of why government might encourage foreign takeovers of British business. The article starts with an unlikely visit by Jim O’Neill of Goldman Sachs to the Manchester City stadium.
Famous for coining the term BRICS to describe the major emerging economies, O’Neill is equally famous as the leader of the Red Knights, who failed in their bid to buy Manchester United from the Glazer family in 2010 - the Glazer’s are accused by United supporters of failing to put enough cash into the club since they took it over. Sheikh Mansour, of Abu Dhabi, has poured money into Manchester City since he bought it in 2008 and there are ambitious plans to regenerate the whole area around the stadium.
read more...»Walmart targets leadership of the online shopping market in China
It’s been a diffcult time in China for global retail giant Walmart recently, However, as the BBC’s Sharanjit Leyl reports in this short video, Walmart hopes to capitalise on the growing number of Chinese who do their shopping online, as the ‘bricks and mortar’ competition between foreign supermarket operators in Chinese cities becomes more intense.
read more...»Revision Presentation - Exchange Rates and Business
This updated revision presentation looks at the topic of exchange rates. What are they, how are they determined and what are the business implications of fluctuating exchange rates?
read more...»Revision Presentation - Corporate Social Responsibility
CSR is an increasingly important topic for business students. This revision presentation explains the basic theory behind CSR and outlines the main arguments for and against implementing CSR. Various case studies are also provided together with links to further research.
read more...»Revision Presentation - Unemployment & Business
This new revision presentation provides students with an overview of the topic of unemployment. It outlines the main causes of unemployment and considers some of the business issues and responses.
read more...»Revision Presentation - Business and the Environment
This study presentation outlines the role that environmental issues are now playing in business strategy. It looks at the main aspects of environmental legislation also at the role of CSR (corporate social responsibility), with a particular focus on sustainability
read more...»
