Steve Jobs 1955-2011
Steve Jobs the co-founder of Apple Inc died today.
The short video sums up some of his leadership characteristics, charismatic, driven, dictatorial and visionary.
A level playing field for football on TV
Pubs and clubs that want to show live football, cricket or rugby on Sky TV have to be extremely confident that it will raise their profits - the monthly cost of subscription runs to over £500 per month. For many, showing live sport is a way to keep customers coming to the pub rather than drinking at home, so may be the only strategy available to stay in business.You can easily see the benefit of finding a cheaper source of satellite broadcasts if possible, and this is the background to the well-publicised case in which Karen Murphy, landlady of a pub in Portsmouth, was taken to court by Sky and the Premier League for using a cheaper Greek decoder to bypass controls over match screening. The European Court of Justice has ruled that national laws which prohibit the import, sale or use of foreign decoder cards are contrary to the freedom to provide services.
read more...»The puzzle of rising profits
Would you have guessed that a whole host of companies are reporting bumper profits, even as the economy struggles?
Apparently so. Despite all the concerns about the world economy, many corporations have still been recording large profits which, on the whole, have been much better than analysts had forecast.
read more...»Skype CEO on Aims, Growth, Risks and Motivation
A very useful interview here with Tony Bates, the UK-born CEO of Skype which is in the process of being acquired by Microsoft. Technology firms and brands continue to be a superb source of business lesson case studies and examples. There is much in the interview which students ought to add to their notes - particularly A2 students wanting some research-based evidence for their exam essays.
read more...»Can investment in R&D provide a competitive advantage?
Can a technology business achieve sustainable competitive advantage without making significant upfront investment in research & development (“R&D”)?
Samsung, with is engaged in a bitter fight with Apple in the smartphone and tablet computer market certainly sees the need to substantially increase its R&S spending. According to this article, Samsung plans to spend as much as $9.3 billion on R&S, which is equivalent to around 6-7% of annual revenues. That investment is not just on smartphones and tablets. Samsung’s product range includes a wide range of home appliances, television & audio devices, printers & software - a much broader range than Apple. Apple is estimated to have spent around $2.3 billion last year on R&D, a smaller percentage of annual revenues. So there is a real sense of Samsung attempting to at least catch up with its rival.
Students who have followed the story of Nokia’s strategic problems will be aware of the challenges facing competitors in the mobile phone market. Nokia CEO Stephen Elop has described the battle as essentially one of “eco-systems” (e.g. mobile operating systems and their associated apps). Samsung has built its success to-date by using Google’s Android operating system. It is thought that Samsung may decide to take on Apple (and Microsoft) directly by buying HP’s WebOS.
The media’s attention may have been on Nokia in recent months - not surprisingly given its significant problems. But watch out for Samsung to see if it can challenge Apple.
Who is hiring – and who is firing?
Sometimes averages can conceal the bigger picture. We all know that the business environment is tough, and the firms experiencing the most difficult trading conditions are likely to be those that have to cut back on the numbers that they employ. Here’s some international data to show which firms have cut their payrolls, and which are still expanding employment.
Of course, other factors may be at work, beyond the current levels of demand firms enjoy. Changing employment patterns often reflect other forces at work, especially technological and organisational change.
read more...»The world’s biggest car market
You guessed it. The rise of the emerging markets continues apace, with the US car market now in 2nd place behind China.
read more...»Spotify - Five Years to Break-even
Founded in 2006; launched in 2008. So it’s taken the best part of five years for online music streaming service Spotify to travel from the point of concept to break-even. A good example of the need for investors in start-up businesses to have some patience whilst their investment grows to the scale where profits become possible…
read more...»Wi-Fi - Adding value to a latte or cappuccino
Coffee shops, as those who frequent them, are more than coffee shops. They are an intrinsic part of a neighbourhood. A place to meet friends, pass some time, and increasingly conduct business. Many self-employed people will base themselves in their local coffee shop at regular intervals - some even spend all day there. So part of the value that a coffee shop can add to its customers is the provision of extra services which make the experience more enjoyable or useful. In my book, as in the case of hotel rooms, Wi-Fi access is an example.
read more...»Apple and Innovation - Iconic Product Launches by Steve Jobs
As Steve Jobs exits the stage as CEO of Apple, here are some videos of the iconic product launches that have helped shape Apple into the firm and brand it is today. A fascinating trip down memory lane…
read more...»Leadership - Farewell to Steve Jobs
The resignation of Steve Jobs as CEO of Apple makes headline news today. There are some very useful profiles of Jobs and the success he has led at Apple in various online articles - some links are provided below.
read more...»Smartphone market shares spell trouble for Nokia
When Stephen Elop announced his new strategy as CEO of Nokia he talked of a crucial “battle of ecosystems”. What he was referring to was the battle between Google (Android), Apple (iOS) and a potential third player in the competition to become the dominant operating system used to power smartphones and their apps. Elop decided to abandon further development of Nokia’s sum Ian operating system, preferring instead to partner with Microsoft in developing the Windows mobile system.
It looks like Elop and Microsoft might have a tougher battle on their hands than they might have imagined just a few months ago.
read more...»Tesco adapts to the South Korean market
We all know about the success and dominance of Tesco in the UK where it has a market share of around 30%. Globally it is one of the biggest retailers in the world and it now has stores in 14 countries. This clip is a great example of how Tesco have adapted to the South Korean market where it is the market’s number two, with fewer stores than the number one company.
read more...»Automation and the arrival of 290,000 robots
A classic example here of the potential (good and bad) for automation in a large-scale business. Foxconn, a manufacturer well-known to students and teachers who have researched Apple inc and CSR, is aiming to increase the number of robots used in its production processes from 10,000 currently to around 300,000. As a result, it wants to move “1,000,000 workers up the value chain” - i.e. provide them with work which is less suitable for automation.
Foxconn is a great example of economies of scale - the sheer size of their operations in China is stunning. Foxconn makes electronic products for many global brands, including the iPhone and the iPad. It is the largest exporter in Greater China and the second largest exporter in the Czech Republic. However, despite its scale, Foxconn is still under pressure to minimise unit costs in order to maintain profitability. Recently it has begun relocating factories to lower-cost locations in China.
You might think that Foxconn’s automation strategy might be implemented over the medium-term. Apparently not! The 300,000 production robots are expected to be in place by the end of 2012. A massive transformation in Foxconn’s operations.
Samsung seeks a ban on Apple products
Samsung and Apple are the world’s two biggest manufacturers of smartphones, and Samsung’s Galaxy Tab has become a huge-selling rival to the iPad, which has dominated the growing market for the touchscreen devices. Rather than focus on competing with each other on price or promotion, the two are focusing on features of their products and at each other’s throats at the moment over allegations of breach of patent. In the current round of claim and counter claim, Apple started it in April by accusing Samsung of copying its smartphones and tablet computers. Apple claimed that the Galaxy phones and tablets ‘slavishly’ copied its own designs for icons and other design features, while Samsung said that the look of their products was the results of market research and not copying. Later in April Samsung responded with their own claim that Apple was copying Samsung features in the area of wireless communications standards and mobile device user interface, and breaking patent legislation in five countries. The escalation has now reached the stage at which Samsung has asked the US International Trade Commission to ban the import of Apple products into the United States.
read more...»Hardship on the High Street – what’s the problem?
We’re currently receiving daily reminders of the problems on the UK High Street. Today it’s Thorntons, following on from Jane Norman, TJ Hughes and Homeform, which controls Möben Kitchens, Sharps Bedrooms and Dolphin Bathrooms. Habitat, HMV, Waterstones – the list goes on and on. Do these high profile business failures threaten the High Street? And what is behind their problems?
read more...»Strategic change for the Guardian - from print to digital
A great example here of a major change in strategic direction. Guardian News & Media has announced a “major transformation programme” to reduce the business’ reliance on print-based publishing and aim to make it a “digital-first” publisher. This is an excellent example to use for students wanting to explain the impact of technological change creating the need for significant shifts in strategy.
read more...»A2 Business: Six key global trends that are shaping business strategy
Students who can point to some overriding trends which help shape strategic direction and choices are much more likely to write interesting, persuasive and evaluative essays. This new report by consultants Ernst & Young is a pinch of gold dust for such students, as it examines in a reasonably accessible way six broad, long-term developments which shape business around the globe.
read more...»ResearchBuster: Technology and Change
A2 business students need to understand the role that technological change plays in disrupting industry and competitive structures. The concept of a “disruptive technology” is a good one for students to use when describing how innovative based on technological advances/adoption can have profound implications for business strategy (and therefore act as a cause of business change).
read more...»Corporate longevity: the lessons from IBM’s 100th birthday
There’s lots of press coverage of this corporate milestone, with commentators wondering what conclusions can be drawn from the exceptionally long life of this business giant. In particular, it’s interesting to think which of today’s technology champions will be around in 100 years.
read more...»Strategy Video - Innovation through technology at Fern Howard
A fantastic video here for A level business students - packed full with relevant concepts. You’ll want to use this again and again.
read more...»Technology & innovation - extending the humble contact lense
For many of us, the contact lens is a piece of slippery translucent material which, when finally placed in the eye, enables us to move around without bumping into things. A simple product with just one use? Think again…
read more...»Designing an effective work place
When I first glanced at the link below my initial reaction was that the recession must nearly be over. When firms start to advertise the benefits of the office you could be working in, it’s usually a sign that they are having trouble finding recruits for their organisation. But watch it anyway as the clip raises several interesting points about how work place design could influence workforce performance.
read more...»An unusual new entry in an organisational structure
Business students will be familiar with the need to understand how changes in the organisational structure of a firm might lead to an improvement in its profitability and/or competitiveness. However, few will have come across the term “Central Captains” when studying the potential changes in org structures…until now
read more...»Strategy explained - Insights into Amazon
A quite brilliant deck of analytical slides here from Fabernovel which explain the business strategy of Amazon.com. Lots of detail, of course, but within this presentation is a gold mine of strategic insights into all aspects of Amazon. It would be interesting to simply give the link to your Year 13 students and ask them to highlight five key points or pieces of evidence that they can use to illustrate how a firm can be so successful online.
read more...»Jaguar goes for NPD investment with £5bn plan
A terrific example of investment in new product development in the news - which links into many other core business studies topics too.
read more...»Booming Billboards
It’s normally hard to say anything very interesting about billboard advertising, with students often adding it to a long list of potential advertising techniques. But change is coming.
read more...»CSR - Apple: Big Profits but Dirty Data?
Three news stories today which provide some useful research evidence for BUSS4 students preparing for their Section A essay in June 2011. We featured Apple Inc in our sell-out BUSS4 workshops, so i’m guessing that at least 3-4,000 students have the global brand on their research list - and for good reason. The news stories provide a neat way of “comparing and contrasting”. For example, contrast the news that Apple has recorded a further, significant rise in profits with the news that the brand has been voted the “least green” technology firm. There seems to be little to slow the phenomenal growth of Apple’s revenues and profits - not even revelations that the iPhone secretly tracks the location of its users! Students could legitimately argue that the “dirty data” and secret tracking criticisms are examples of a business that is not acting in a socially responsible way. But Apple’s investors will hardly be concerned if the management continue to deliver significant growth in shareholder value.
Cutting costs - how technology catches the hotel thieves
I love this example of how technology is helping hotels cut their operating costs by catching the guests (and possibly staff too) who help themselves to the contents of their hotel rooms.
Is it theft to take a couple of shampoo bottles, soaps or tea bags from your hotel room? Of course not - since their are provided as a consumable part of your stay. But slipping the hotel bath robe into your suitcase or spiriting away a couple of pillows is undoubtedly on the wrong side of the law. And this kind of activity adds significant costs for a hotel. The Economist article quotes a source as claiming that “in any given month, [hotels] can lose 5 to 20 percent of towels, sheets and robes”.
The technology being used to counteract this cost is RFID, which we’ve mentioned before on the Business Studies blog.. Its all very simple. The RFID tag is sewn into the garment and it tracks the bath-robe’s or towel’s journey!
Product life cycle - farewell as the Flip flops
A great example here of how rapid changes in technology are shortening the product life cycles of products which only recently were enjoying rapid growth. Cisco, which bought the maker of the popular Flip video camera just three years ago, has announced that is to close the business. It cannot even find a buyer for the brand! The Guardian article explains the story behind the rapid decline of Flip which is closely linked to the similarly rapid growth of smartphone capabilities and ownership. Some good data in here too on market share.
