Next up - Credit Crunch Part 2
Just when you thought things couldn’t get any worse, the world’s leading credit rating agency is predicting things are about to get tougher still for the world’s banks…
read more...»For sale: airport with 1 runway and 35.1 million customers
If you have around £1.8bn to spare, then can I interest you in an attractive investment opportunity? This is a rare opportunity to acquire a popular airport business in a much sought-after location…
read more...»AIG is nationalised at the last minute
In the end, the US authorities decided that AIG was just too big and too important to fail. So they nationalised it. The world’s largest insurance business is now owned by the US Government…
read more...»Smoking ban is bad news for the smelly clothing industry
Some of the losers from the smoking ban are easier to spot than others. Pubs, restaurants and bingo clubs have all reported a negative effect. However, here is an example of a market-leading business that is also blaming the smoking ban for a short drop in profits…
read more...»Meltdown Monday - The Nightmare Continues
What are we to make of the sensational developments in the global financial markets today? The collapse of Lehman Brothers; the firesale of Merrill Lynch; the speculation that global insurance giant AIG is next on the chopping block. Monday 15 September 2008 was truly a significant day in business history, but I just have a feeling that the worst is yet to come.
read more...»Economic woes shift spending patterns, continued
Further evidence of ways in which a slowing economy brings grief to some and benefit to others:
read more...»New migration controls highlight the jobs with a shortage of supply
Do you know which occupations in the UK are suffering from a shortage in skilled employees? The new migration points system highlights the industries in which the government remains keen to encourage skilled migrants into the UK…
read more...»Economic environment - disposable income takes a dive
News of a really important economic development that business students will need to be able to understand. Consumer disposable income is falling under pressure from rising prices of essential items such as food and energy whilst wage rises are not keeping pace…
read more...»In cod we trust - battered chippies are beating the credit crunch
In recent weeks we have seen evidence that fast-food outlets are benefitting from the fall in consumer confidence. Now it appears that even the traditional fish & chip shop (long thought to be in the decline phase of the product life cycle) is enjoying a new period of sales growth…
read more...»Here’s a business that wants energy prices to rise
Those of you who are aged 35 or less probably won’t remember the Miners Strikes and the rapid decline of the UK’s mining industry. It is easy to forget that Britain still has a coal mining industry. So I was interested in news from UK Coal about how rising energy prices are benefitting their business and future investment decisions…
read more...»Protecting a business idea - Bratz hit by copyright damages
Whilst not strictly about protecting a start-up’s business idea, here is a good example of a company that has fallen foul of the protection offered by copyright laws…
read more...»High Street gloom is not shared by charity shops
According to the Charity Shops Survey 2008, charity shops in the UK seem to have beaten the economic slowdown as shoppers look for value away from the traditional High Street chains. The profits of the top charity shops rose 7.4% to a total of £106.7m over the past year.
read more...»Private shareholders suffer big losses from quoted company investments
With all the focus of the new AS Business specifications on business start-ups and small businesses, it easy to forget the importance of larger quoted companies. Private shareholders who have invested some of their personal wealth in the stock market have had a tough time according to some new research…
read more...»Changes in demand - the Olympic impact on goggles and bikes
Students taking the new AS specifications need to know how a “sudden change” in demand can afffect a business. So here is a good example to use from the sporting events of the last three weeks…
read more...»Government support for small business - cutting red tape
The fourth in Andrew Stone’s series of Sunday Times articles on starting a business focuses on the challenges entrepreneurs face in dealing with legislation…
read more...»A “challenging macroeconomic environment” is the excuse
Some call it an “economic downturn”, The media are obsessed with using the term “credit crunch”. But music publisher Chrysalis has come up with its own description of the market conditions that are causing it trouble…
read more...»Wanna job? Get down to McDonalds
Two contrasting stories about the employment market recently illustrate really well how different businesses are coping in the economic downturn…
read more...»Investment appraisal looks unappetising for the cheesegrater
Here’s a great example to use if you want to explain how the credit crunch is affecting investment decisions by firms…
read more...»Did smoke signals lead to the wrong investment decision?
Here’s a great example of how an industry might take a too optimistic view of a change in legislation.
read more...»Lots of hot air over gas and electricity price rises
The newspapers are full of analysis and response to the significant increase in consumer gas prices announced by yesterday, followed swiftly by news that British Gas owner Centrica has just made a half-year profit of almost £1 billion…
read more...»Ryanair flies into the path of the economic storm
A dramatic opening line in an Guardian article suggests that bad news from Ryanair means that the “boom in European low-budget air travel has turned to bust”...
read more...»Job losses become a core part of business strategy
Major companies are planning job losses during 2008 and 2009 as a core part of their strategy to handle the economic downturn…
read more...»Scary Movie 5 - the UK Economy
In recent years, Business teachers have had a hard time trying to make the economics elements of the business curriculum interesting and relevant. Not any more…its a horror show
read more...»Our correspondent in China: viewing the Middle Kingdom up close
Tutor2u have a correspondent in China (at least over a few days!) looking with interest at business and economic activity there. Time has been short and impressions just that really – a few informed guesses about the direction in which this fascinating country is headed.
read more...»Business opportunities in a recession
On the surface a recession is not the ideal opportunity to start a new business. Low consumer confidence and weak demand as people curb their spending during a downturn are not normally ideal conditions to begin a new business venture. But as Rachel Bridge points out in this article in the Sunday Times, there are indeed many opportunities for entrepreneurs to launch new business ventures even when economic times are tough. ““If you make the customer feel you care and give them a good experience in a recession, you will be surprised by what can be achieved when times are good.” Read the rest of Rachel’s article here
Can Bugs Solve a Crude Problem
Every once in a while I come across a business news story that leaves me wishing I had paid more attention in my science lessons…
read more...»Should start-up’s be put off by an economic downturn?
Catching up on some background reading this week, I came across an excellent piece by Rachel Bridge in The Sunday Times. Rachel is a good friend of tutor2u and her writing on enterprise and entrepreneurshp is full of useful insights for us. A couple of weeks ago, Rachel wrote a really interesting piece on the dilemma facing business start-ups right now in the UK. Should they be put off by difficult economic conditions?
read more...»House price hysteria hits the headlines
“House prices tumble” reports the Telegraph. “House prices plunge 2.5% in biggest monthly fall since 1990s’ crash” screams the Daily Mail. Sounds like the end of the world if you are a homeowner, particularly if you have just taken out a mortgage on an over-priced property. But is the hysteria justified?
read more...»Belt tightening puts consumer spending under pressure
A key economic indicator for business students to understand is consumer spending. The amount that households spend on goods and services is an important driver of demand for most businesses we study, so a major change in consumer spending growth is a significant change in the economic environment.
read more...»Avoiding the risks that lead to shattered lives
I was in the tutor2u food manufacturing division (my kitchen) stirring some delicious home-made bacon broth when a piece on tonight’s Five Live news caught my attention. It featured a representative from the Health & Safety executive discussing new legal requirements for business owners and led onto a discussion about how complying with health and safety legislation actually generates a good return on investment for a business.
read more...»
