TBBLE - The Best Business Studies CPD - Ever!

Four final chances to join us for TBBLE 2014! Resource-packed CPD for Business!!

BIRMINGHAM    |   LONDON   |   MANCHESTER    |    BELFAST

Business Studies Resources Popular resources on the {my channel} blog Resource tags for the blog RSS Feed for the blog Twitter feed for this blog Teacher Email Resource Newsletter Category listing for this blog Business Studies Blog Home Page

Localisation - How Design is Helping Starbucks Take A Global Brand into Local Markets

Monday, January 27, 2014

You have a global brand. But, to maximise its strength in global markets, you need to take account of the local customer needs and wants. That is the essence of the concept of "localisation" and few global brands take this approach more seriously than Starbucks.

read more...»

Localisation - the foundation of British Airways Strategy in China

very useful article here in Marketing Magazine which describes how British Airways (BA) has approached its strategy of penetrating the market in China.

read more...»

Seeing through the Smog - Clean Energy Business Opportunities in China

The pollution problems that affect China are well-documented and they show little sign of going away.  However, heightened public anger at pollution - and a growing political will to deal with the issue - has created opportunities for firms with the expertise to take a share of China's fast-growing clean-technology market.

read more...»

Rolls-Royce Cars in China - Demand for Luxury Sustained

Sunday, January 19, 2014

The crackdown on corruption in China doesn't seem to be having much of an effect on demand for Rolls-Royce motor vehicles - perhaps one of the most obvious examples of conspicuous consumption. 

read more...»

Google Buys Smoke Detectors, Thermostats…and Some of Apple’s Innovative Culture

The announcement of Google's takeover of smart home-appliance maker Nest for $3.2bn is potentially hugely significant for Google.

read more...»

Retrenchment in China for Global Cosmetics Brands

The challenges for businesses outside China gaining a profitable share of fast-growing markets in China have been illustrated by two recent announcements by leading multinational cosmetics firms - L'Oreal and Revlon.

read more...»

Samsung: Boston Matrix, Culture and Dividend Yield

Saturday, January 18, 2014

These two pieces of video evidence on South Korean multinational giant Samsung are pure business studies gold - particularly for students preparing their evidence for AQA BUSS4.

Samsung is a highly diversified multinational that is the most significant firm in the South Korean economy.  It has achieved a strong record of improved profitability, quarter after quarter, as demand for its product portfolio has grown, particularly mobile devices. However, in January 2014 it announced that it expected to suffer a fall in profits, It expects to make an operating profit of 8.3 trillion won ($7.8bn; £4.8bn) for the last quarter of 2013, down 18% from the previous three months.

read more...»

China and Chocolate - Can the Global Big Five Exploit the Opportunity?

Demand for chocolate products in China is growing fast, but from a very low base. Nevertheless, the "Big Five" global chocolate firms are now all firmly focused on capturing their share of what promises to become one of the world's most valuable chocolate markets.

read more...»

BUSS4 Section A Briefing 2014 China - CPD Briefing Days: Two Dates Left in Feb 2014

Sunday, January 12, 2014

Section A Research Theme Briefings: Two Extra Days Added

We have added two extra overflow days for colleagues wanting resource-packed support for the AQA BUSS4 Research Theme on China (June 2014). These are in London on February 5th and Manchester on February 6th.

Our BUSS4 Section A CPD Briefing Days follow the popular and successful approach adopted in recent years, to include:

  • Teaching resources designed to introduce and develop the research theme, focusing on relevant examples and effective sources of student research materials
  • Activities designed to develop essay writing technique
  • Suggestions for ways in which the 2014 research theme can be integrated into the teaching of the remaining Section B topics
  • Other ways in which a linear approach can be taken, integrating some elements of BUSS3 with BUSS4 Research Theme and Section B

The dates and locations for our BUSS4 Section A China Briefings are:

LONDON (A) Monday 30 September 2013 SOLD OUT

LONDON (B) Tuesday 1 October 2013 SOLD OUT

BIRMINGHAM Wednesday 2 October 2013 SOLD OUT

MANCHESTER Thursday 3 October 2013 SOLD OUT

LEEDS Friday 4 October 2013 SOLD OUT

NEWCASTLE Monday 7 October 2013 SOLD OUT

LONDON (C) Wednesday 5 February 2014

MANCHESTER (B) Thursday 6 February 2014

read more...»

A Simple, Stretch Corporate Objective for Xiaomi - Double Sales in 2014!

Saturday, January 04, 2014

How simple is this? Xiaomi - the Chinese manufacturer of smartphones - has set a challenging growth objective for 2014. It wants to double the number of phones it sells from just short of 20 million in 2013 to 40 million in 2014.

read more...»

Supply Chain Quality in China - Wal-Mart, Five-Spice Donkeys and Foxes

Thursday, January 02, 2014

I suspect this example might find itself appearing in more than a few BUSS4 essays on China in summer 2014 - and why not?  

Wal-Mart's business in China has been hit by a quality problem that has echoes of the UK horse meat scandal.

It is reported that Wal-Mart has recalled a "five-spice donkey" meat product in China after tests showed that it contained DNA of other animals - namely fox meat.

read more...»

Business Ethics & CSR - GSK Promises to be Good

Wednesday, January 01, 2014

The global pharmaceutical industry is under threat, like never before, for the way that it markets its products.

read more...»

Wal-Mart in China - Refocuses Strategy on Affluent Consumers with Sam’s Club

Wal-Mart - the world's biggest retailer - has struggled to establish itself in China. However, the world's second-largest economy must still remain an attractive and strategically important opportunity for Wal-Mart, particularly given its need to find better growth and returns to offset maturing performance in the US.

This FT article (and accompanying video below) describes how Wal-Mart is is refocusing its growth strategy in China by using its Sam's Club chain to target affluent Chinese consumers in the main Tier 1 and Tier 2 cities.

read more...»

Apple (Finally) Signs the Deal with China Mobile - 700 Million New Potential Customers!

Monday, December 23, 2013

It has been along time coming (a six year negotiation), but Apple has finally signed the deal that enables it to connect to hundreds of millions of increasingly affluent consumers in China.

Apple has agreed a deal with China Mobile - the world's biggest network of mobile phone users - to sell iPhones to the network. China Mobile, which has about 760 million customers, will begin registering orders for iPhone from December 25 2013 in a deal that is likely to add many billions of dollars of annual revenues for Apple.

read more...»

Bring Him Home - UK Manufacturing Turns to Onshoring

Monday, November 25, 2013

A fascinating survey has been released by the UK's Manufacturing Advisory Service ("MAS"). It reports that a growing number of manufacturing SMEs are bringing production back to the UK from overseas. This is a process called "onshoring" which, of course, is the reverse process to "offshoring".

read more...»

BUSS4: 10 Practice Essay Questions on China (Section A)

Sunday, November 10, 2013

Set out below are 10 practice questions you might want to have a go out - perhaps initially planning some outline answers and then having a go at writing a full essay response once you've completed a good amount of research.

read more...»

BUSS4 - China: Opportunities, Threats, Success & Failure

Thursday, November 07, 2013

This revision presentation highlights the key opportunities and threats faced by firms outside China looking to do business in and with China. It also provides examples of businesses that have succeeded in China and those that have struggled!

A fully editable and printable version of this presentation is included in our AQA BUSS4 2014 Toolkit on China which is being published on 8 November 2013.

read more...»

BUSS4 - China’s External Business Environment

Wednesday, November 06, 2013

This revision presentation looks at key aspects of the external environment for firms outside China looking to do business with China. It highlights key issues relating to: urbanisation; wealth, poverty & inequality; demographics in China; pollution & energy; Working conditions; corruption and protectionism

A fully editable and printable version of this presentation is included in our AQA BUSS4 2014 Toolkit on China which is being published on 8 November 2013.

read more...»

BUSS4 - Market Entry Strategies for China

Tuesday, November 05, 2013

This revision presentation provides an overview of the key considerations and options facing businesses outside China looking to enter the Chinese market.

A fully editable and printable version of this presentation is included in our AQA BUSS4 2014 Toolkit on China which is being published on 8 November 2013.

read more...»

Rising Costs and a Stronger Currency Hit China’s Manufacturing Competitiveness

A terrific article here from the FT which highlights the effect of rising wages and a strong currency on manufacturers in China. The supporting video below is also golddust for students wanting to build their understanding of how the economic competitiveness of China is changing.

Low-end manufacturing, which helped drive China's economic growth a decade or so ago, is now slowly moving out of China or moving inland (away from the higher cost coastal regions). Other emerging markets such as Bangladesh, Vietnam and Malaysia are taking up the slack for the production of products at the low end of the value chain (e.g. textiles, shoes).

The challenge for manufacturers in China is to move up the value chain - and many are taking up the challenge!

read more...»

BUSS4 - Key Features of China’s Economy

Monday, November 04, 2013

This revision presentation provides an overview of some of the key features of China's economy. It looks at China's economic growth; the impact of urbanisation and investment in infrastructure; China's record on poverty and the creation and use of China's substantial foreign currency reserves. It also looks at rising wage costs in China and the need for China to rebalance its economy reducing reliance on investment and increasing the role of consumption in economic activity.

A fully editable and printable version of this presentation is included in our AQA BUSS4 2014 Toolkit on China which is being published on 8 November 2013.

read more...»

Rising Wages in China: Causes and Consequences

Sunday, November 03, 2013

Wages are rising fast in China – many economists believe that China has hit a stage in its development at which demand for labour starts to grow faster than supply, creating labour shortages and pushing up the price of labour (something economists refer to as a Lewis Turning Point).

Why is this and what are some of the key business implications?

read more...»

China’s Rebalancing Act - A Balanced China is a Slower China

We used the FT video below during our recent CPD days on China and it is an excellent introduction to a core issue for students looking at the opportunities and threats for businesses looking to trade with and in China.

China's stunning record of economic growth has largely been driven by investment and exports. In particular, following the global economic slowdown in 2007-10, China responded by accelerating investment in infrastructure projects and the programme of mass urbanisation which has created the largest human migration in history.

A consequence of this approach is that China's economic growth can be said to have been "unbalanced", with the economy over-reliant on investment spending which cannot be sustained indefinitely.

China is now looking to "rebalance". That's a key term that I fully expect to feature in strong essays written by AQA BUSS4 students in 2014.

read more...»

China’s Economy - Addicted to Debt?

Much of China's recent economic growth has been financed by debt, particularly bank loans. When the global economic slowdown bit, China responded with a massive programme of infrastructure investment that was funded through debt. The FT video below examines the implications of this approach.

Debt is starting to take a toll on China, its people and businesses. So long as China was able to grow incredibly quickly, China was able to finance its debt. However, it might prove harder to sustain that as China's economy enters a period of slower growth.

read more...»

Crocs Takes on China’s Copycats

An interview here with the CEO of Crocs - John McCarvel.

Crocs counts China one of its biggest markets, but its sales are threatened by lookalike products from many Chinese companies, highlighting the risks of businesses outside China losing some of their intellectual property when they trade in China.

Why is it important for Crocs to fight counterfeiting in China when many other businesses don't bother? McCarvel explains that the reason lies in Crocs being a mass-market product which has invested a lot in its brand. It is worth fighting for!

read more...»

The Five Biggest Challenges to Doing Business in China

Saturday, November 02, 2013

A terrific six minute video here which highlights and then explains five key challenges for a business outside China wanting to do business in China. Well worth a watch. An underlying theme across the challenges is how businesses outside China can reduce or manage the risks involved in entering Chinese markets. China poses quite distinct risks, particularly around the lack of information, the different culture of doing business, the role of government and the importance of local relationships.

read more...»

Starbucks Pricing Strategy Under Attack in China

Where would you expect a Starbucks latte to be cheaper - in a coffee store in downtown New York or in a Starbucks store in China? Keep in mind that per capita incomes in China are around one tenth of those in the United States.

The answer may come as something of a surprise!

read more...»

Corruption in China - Mooncakes and Guangxi

The Chinese word "guangxi" means connections. But, as Linda Yeuh explains in this BBC news video, guangxi has come to symbolise large scale corruption when doing business in modern-day China.

A crackdown on corruption in China has even extended to the giving of mooncakes - a traditional symbol of friendship!

read more...»

China’s Changing Modern Society - Some Video Resources

Some short videos here which examine some key demographic issues in China, in particular the long-term impact of China's one child policy.

read more...»

Guanxi - How AliPay Built Market Leadership in China

China is already the world’s biggest e-commerce market and almost half of the transactions on it are made using Alipay - an online payment system set up by Alibaba.

Nearly a decade ago Alibaba launched Alipay - China's answer to online payment giant PayPal. Today it's seen as the magic password at the gate of China's online commerce treasure trove.

Unlike PayPal, used by many Western internet companies, Alipay takes money up front and puts it in an escrow account. Vendors can be sure that payments made through it will be honoured.

This works so well because many Chinese are reluctant to trust strangers. The Alipay system helps build trust (guanxi) between buyer and seller. Simple!

This video shows Alipay in action.

read more...»

The Empty Cities of China

Monday, October 28, 2013

This video report from Australia's SBS programme is 15 minutes long but is well worth viewing.

A couple of years ago the channel's cameras first reported on the phenomenon of "ghost cities" in China - the result of vast investment in housing, commercial and other property infrastructure to support the process of urbanisation in China. Whilst demand still exceeds supply in the major Tier 1 and Tier 2 cities in China, in other places whole cities have been built with almost no-one to live in them. Quite extraordinary. Take a look.

read more...»

BUSS4 China - Osborne and Johnson in China

Tuesday, October 15, 2013

With the high-profile visits of George Osborne and Boris Johnson to China this week, there is a glut of resources available on the BBC website which could be very valuable to BUSS4 research.

Here are links to just a selection:

read more...»

Glocalisation: Would Ansoff Classify it as Diversification or Market development?

Students looking at international expansion strategies of multinationals will soon come across the term "glocalisation". It sounds similar to the idea of diversification and both are concerned with choices that businesses make about which products and services are offered and into which markets. Such choices are often analysed using the Ansoff Matrix. But is glocalisation the same as diversification? Or is it really a kind of market development?

read more...»

Haier Delayers to Encourage Innovation and Teamwork

Sunday, October 13, 2013

A fascinating and useful profile here from The Economist of Zhang Ruimin, the Chinese entrepreneur who has guided Haier through a successful strategy of international expansion.

Ruimin challenged the preconception that Chinese manufactured goods could be produced very cheaply but to a poor quality. His relentless focus on higher production quality has enabled Haier to become the world's largest producer of "white goods" such as washing machines, fridges and freezers.

read more...»

China’s Urbanisation - the Largest Migration in History

Tuesday, October 08, 2013

Two stunning videos here which help explain the scale and effect of the largest migration of people in history - from rural to urban China.

read more...»

China’s Young Workers Shun Factory Employment

Some great evidence here about the changing labour market in China. It is becoming tougher for China's manufacturing facilities to recruit and retain young Chinese.

For example, companies like Foxconn, which assembles most of the world's iPads and iPhones, are struggling to find workers to fill their massive facilities as more young Chinese shun the factory floor.

read more...»

Hong Kong - the Great Mall of China

During our CPD briefing days on China we've often mentioned the rapid growth of the Chinese middle class and the resulting impact on demand for consumer goods. China now accounts for 20% of global demand for luxury goods and this is illustrated in the following short video from the excellent FT team based in Hong Kong.

read more...»

Set the Scene for a Top-Scoring Essay with an Essay Introduction

Thursday, October 03, 2013

The Examiners Report for the June 2013 sitting of AQA BUSS4 makes a very interesting comment.

It suggests that students who write a suitable introduction to each of their two essays can contribute to a better-performing and, therefore, higher-scoring essay.

This makes perfect sense and it follows from something that we emphasis on our exam coaching workshops for BUSS4. Good BUSS4 essays start with a plan. Good essays know what they are trying to argue.

read more...»

Investing in China’s Urbanisation Opportunities - KKR Takes a Stake in Haier

Wednesday, October 02, 2013

A strong sign here of the increasing competitive strength of businesses based in China that wish to expand into other markets around the world. US-based venture capitalist KKR has invested around $550m for a 10% stake in Qingdao Haier, China's largest refrigerator and washing machine maker.

We have mentioned Haier before on the Business Blog as a good example of an emerging markets multinational corporation (EMMC) and Haier is also recommended as a case study for students researching China & Emerging Markets for AQA BUSS4.

read more...»

Onshoring - Is China Losing its Competitiveness as a Low-Cost Location for Manufacturing

Wednesday, September 25, 2013

More than half of U.S.-based manufacturing executives at companies with sales greater than $1 billion are planning to bring back production to the U.S. from China or are actively considering it, according to a new survey by The Boston Consulting Group.

The share of executives who are planning to "onshore" or “reshore” or are considering it rose to 54 percent, compared with 37 percent of executives who responded to a similar BCG survey in February 2012.

read more...»

Xiaomi - The Apple of China?

Here's Lei Jun (on the left). Notice something familiar about him? The blue jeans; dark top and introducing a shiny new smartphone to present to the world's media. Uncanny.

Lei Jun is the founder and CEo of a firm called Xiaomi which the Chinese media have nicknamed the “Apple of the East."

Lei Jun himself is also increasingly being called the "Steve Jobs of China" - and not just for his dress sense and presentational style!

read more...»

Can Ryanair Change its Corporate Culture with the Same Leadership?

Monday, September 23, 2013

Could Ryanair be about to make a concerted effort to change its organisational culture? Can the low-cost airline soften its corporate image and improve its customer service performance at the same time?

That appears to be the plan following comments made by Michael O'Leary, Ryanair's controversial Founder and CEO, at the recent Ryanair AGM.

read more...»

Abandoned Shopping Carts: Why did Tesco and Best Buy Fail in China?

Just why have so many Western retail giants struggled to succeed in China? If global retailers like Walmart, Tesco, Carrefour and Best Buy have struggled, what hope is there for the rest?

read more...»

Alibaba Beats Amazon to the E-Commerce Prize in China

Sunday, September 22, 2013

Say the word e-commerce in the US, UK and many other developed economies and one word usually comes to mind – Amazon. The Seattle-based multinational claims to be the world's largest online retailer. It has highly diversified operations that have taken the business well beyond the original proposition - selling books online. CEO and Founder Jeff Bezos launched Amazon.com in 1995 and over the next two decades Amazon has expanded its retail websites to dominate the market in Canada, the UK, France, Germany and elsewhere.

However, in China, say e-commerce and a different "A" word is on everyone's lips. Alibaba is a private Chinese company that is now the largest business-to-business and consumer-to-consumer company in the world. Amazon might dominate global business-to-consumer online retailing. But, in China, Amazon has a very small market share and it is Alibaba that dominates.

In fact, Alibaba can legitimately claim to be the world’s leading e-commerce business. Reports suggest that Alibaba handled total sales of $170 billion in 2012 – which is more than the transaction value handled by Amazon ($96bn) and eBay ($75bn) combined!

After more than eight years of effort, Amazon has less than 1 per cent of China’s $196bn e-commerce market. Alibaba is estimated to have a market share of nearer 75 per cent.

To put this into perspective, China’s e-commerce market is already the largest in the world and by 2020 is forecast to be bigger than the existing markets in the USA, UK, Japan, Germany and France combined. So Alibaba’s market share of over 70% makes it a very big player indeed.

read more...»

Why Localisation Is Important for Success in China – Yum! Brands and the Rapid Growth of KFC

Businesses from outside China trying to sell in China face a critical question as they try to enter China. How far should they go to adapt or redesign (“localise”) their products and services to meet the needs and wants of customers in China? Should they adapt existing products just enough to appeal to consumers in China? Or should they look to start again – rethinking the product or service from the ground up – in order to established a position in the market and then gain market share?

Yum! Brands is a multinational that operates or licenses Kentucky Fried Chicken ("KFC"), Pizza Hut, Taco Bell and other small restaurant brands worldwide. Yum! is the world's largest fast food restaurant company in terms of outlets with more than 39,000 restaurants around the world in over 125 countries and global sales of over $12bn.

For the last decade, Yum! Brands has relied upon international expansion as the main driver of revenue and profit growth. China in particular has proved to be a significant source of growth. For example, KFC has opened an average of one new outlet per day in China and has an objective of reaching 15,000 outlets.

KFC has achieved this high rate of growth by adopting the concept of localisation. It has largely ignored the traditional model of KFC outlets in the US and other developed economies - that of a franchise operation with a limited menu, low prices and an emphasis on customers taking-out their food and drink to consume. Instead, the KFC model in China was redesigned to meet local needs.

read more...»

GSK Under Fire Again For Alleged Corruption in China

The risks for businesses from outside of China from operating in China have been well-illustrated by the problems now faced by pharmaceutical giant GlaxoSmithKline plc ("GSK”).

GSK is facing claims that it made corrupt payments of around £323m to Chinese doctors in order to win market share. GSK is cooperating with the Chinese government in an investigation which might result in a substantial fine or other punishments for the company.

read more...»

How Did P&G Reach the Top in China?

In early 2013 the BBC asked global brand research company Millward Brown to identify the 20 most powerful foreign brands in China: the ones that have gone in and succeeded where many others have failed.

When the results came back one noticeable feature was that one company - Procter and Gamble ("P&G") - had three of the top 5 brands!

Of course you might expect P&G to be successful in China. After all, P&G is the world's largest maker of household and personal-care products. At the start of this decade P&G had set itself an ambitious corporate objective. It aimed to add 1 billion customers by 2015 (a 25% increase) and P&G were clear that emerging markets would be crucial in achieving that goal. Of all the emerging markets, P&G is strongest in China, which by 2012 had become its second-biggest national market with around 6% of the firm's worldwide sales.

So how has P&G managed to achieve such a strong position in China? Why had P&G succeeded when so many other Western brands had struggled to establish a leading position there?

To understand the achievement, you need to go right back to when foreign firms were first allowed to enter China. Here are some key features of the P&G approach to building its business in China.

read more...»

China’s Urban Billion

Friday, September 20, 2013

China's drive to urbanise is expected to transform millions of poor peasants into city-dwellers in the next two decades. However, despite urban migration being a top priority for policymakers in Beijing, many ordinary Chines are feeling left behind by the country's rapid urbanisation.

The Chinese government aims to urbanise 200 million people over the next decade, including the development of "semi-rural" areas. China's rapid and significant urbanisation programme creates huge demands for infrastructure development (transport, housing, health, education etc). But it also comes with important social costs. Adapting to new lives is not easy and few of the newly urbanised population qualify for free education and other services.

Ben Marino from the FT has produced this excellent short video which highlights the key issues, particularly from the perspective of the rural population suddenly thrust into an urban environment.

read more...»

China’s Economy - A Quick Overview for Business Students

Tuesday, September 17, 2013

Many A Level Business Students have been challenged to develop their understanding of the Chinese economy in the context of developments in emerging markets. In this blog entry, we'll provide an overview of the key economic indicators for China. Later blog entries will take a look at some important specific economic issues such as foreign direct investment, population change, urbanisation, international trade and key industrial sectors.

read more...»

More Trouble in China for Danone?

The risks of doing business in China have been highlighted again with news that a division of Danone, the French multinational with global brands operating in bottled water and dairy products, has been accused of bribery.

The Chinese authorities have instigated a number of investigations into bribery recently. The accusation for Danone to handle is that its baby milk brand Dumex paid large bribes to doctors and nurses in Tianjin to incentivise them to feed newborns Dunex brand infant formula.

read more...»

Page 2 of 12 pages  < 1 2 3 4 >  Last ›


Enter your Email



EntrepreneurLIVE! 2014

Dates and Locations for EntrepreneurLIVE! 2014 Now Available - Click here for Details...

Latest resources

Resource categories Blog RSS feed Blog RSS Feed
© Copyright Tutor2u Limited 2013 All Rights Reserved