Business Studies

The Biz Quiz - 20 November 2009

2009-11-20T07:03:00Z

The latest version of the Biz Quiz is now available

Launch interactive version of the Biz Quiz

Download printable version (pdf)

Download VLE Import file

3 - 2 - 1 Lesson Lift Off!

2009-11-19T21:00:00Z

Just put this on TES and thought I would share it with everyone. I did it today with my Year 10’s.

3 2 1 Lesson Lift Off is a great bellwork activity to get the students working as soon as they walk through the door…

I have a picture of a cool space rocket on my IWB.

Next to it I have something along the lines of:

3 Methods of collecting primary research

2 Benefits of primary research

1 Limitation of primary research

This is also an excellent activity for differentiation as all students should be able to get at least 1 of the 6 points.

Great for all year groups this one.

With my A2 students I did.

3 Financial Efficiency ratios (with formula’s)

2 Liquidity Ratios (with formula’s)

1 way of improving a firms liquidity position

Give it a go.

What’s behind the BA and Iberia Merger?

2009-11-19T16:32:00Z

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?

Both firms have had a miserable time over the last few years and stacked up heavy losses. And these two firms are not alone – the International Air Transport Association, an industry body, estimates that total losses for the world’s airlines this year will be some $11 billion. The credit crunch has hammered ticket sales (especially of premium priced Business class tickets) and fuel has been expensive. By agreeing to join together the two firms will join the trend for big European airlines to grow through mergers.

The first motivation is probably cost savings: the pair reckon that by the fifth year the new group will save some €400m annually by cutting overlapping routes, and by combining maintenance, office functions and business-class lounges. The pair may also have more muscle when it comes to negotiations to buy new planes from Boeing and Airbus. You would group these ideas together under the heading of economies of scale.

What problems lie ahead? According to reports, Iberia’s cabin crew have just finished one round of strikes and are promising more in a dispute over changes to their jobs. BA’s attempts to cut cabin crew and freeze pay could also result in strikes over Christmas. Ground staff and pilots are equally willing to use industrial action to get their way.

I also suspect that the attempt to keep two separate brands alive, with separate corporate operations could eat into some of the advantages of the merger – and even prove to be a potential diseconomy of scale.

Watch out for still more mergers in the years ahead in this troubled industry. It has plenty in common with the car business: over capacity, falling sales, high costs and environmental hassles. Politics has a big part to play too.

See an accompanying BBC video clip

HR Professionals stock up on free pens, and debate their future

2009-11-19T09:58:00Z

Today is the final day of this year’s annual HR Conference and general knees-up, held for the first time in Manchester, having relocated there from its former home in Harrogate.

The CIPD Conference is the opportunity for HR professionals to keep in touch with current developments and trends in HR best practice as well as stock up on free pens, paper-clip dispensers and other marketing freebies.

So what’s been exercising the minds of the nation’s HR Managers this week?

Speakers from the widest possible spectrum of international organisations (including Royal Bank of Scotland, Starbucks, McDonalds, Oxfam, Marks and Spencer, Microsoft and British Airways) have been covering 10 key streams of subjects, deliberately focused on the 10 key areas of the recently developed HR Profession Map (note to self: must finish off the last couple of subjects on this for the esteemed readers of tutor2u)

Here’s a list of some of the most popular seminar sessions, which should give you a good impression as to the issues which are uppermost in the minds of today’s senior HR Professionals:

Developing Meaningful Partnerships with Unions
Addressing Dysfunctional Leadership Behaviours
Getting the Outcomes You Want from the Conversations You Don’t
Developing Your Talent Strategy
Demonstrating How Performance Management Drives Organisational Improvement
Turning Appraisal into a Vital Management Tool
The Death of Performance Related Pay and the Bonus Culture?
Harnessing the Power of Social Media in the Workplace
Using HR Metrics to Demonstrate Improved Efficiency

For further information on the CIPD Conference, here are a few links:

CIPD Annual Conference and Exhibition 2009 website

Jackie Orme speech to the CIPD Annual Conference and Exhibition Manchester, 17 November 2009

HR Case Studies: HR once more questions its future

Starter Activity - 15 Word Challenge

2009-11-18T21:21:00Z

Ask any pupil to read something, chances are that when they do they do so passively, thinking about what time the lesson finishes or what tonights bush tucker trial will be. Will they read it properly or critically?

I saw this activity done whilst observing another teacher and I did it today with great results…

I gave the students an article on flexible working at BT lifted from a textbook...edge of your seat stuff it was..I knew they wouldnt be able to contain their excitement when they read the text.

When I gave them the article, I asked them to choose what they thought were the most important 15 words (I chose 15 as the article contained around what I would have considered 20 - 25 key words). I then told them they would have to justify their choices to the rest of the class. This then presented the students with a dilemma. They would need to make choices about which words they thought were the most important and then justify them (I’m sure they call this evaluation).

When they were done, we brought the key words together on the board with the students justifying their choices.

Did they enjoy it? It didn’t really matter. They engaged with the text, did some thinking, did alot of talking and did some justifying. Not bad at all.

This would also work well by putting the students into pairs after they have each read the text and then coming up with a joint set of words. You could even go pairs to four.

Not sure about anyone else, but I always detest giving students stuff to read in lessons. I just know whats going on when they read it. This activity (along with Beat the Teacher) goes someway to ensuring that at least they need to think whilst they do it.

Enjoy.........

BOGOF becomes BOGOFL (or BNFNT)

2009-11-18T17:23:00Z

BOGOFL hasn’t quite got the same ring to it has it - but it’s a development that is being used in the latest round of supermarket wars.

BOGOFL stands for “Buy One Get One Free Later”, and involves the customer receiving a voucher at the till which entitles them to a second product free at a later date. It is also referred to as BNFNT (Buy Now Free Next Time)

The idea was first announced by Tesco in October as a response to criticism that BOGOF offers created waste as many of the foodstuffs were going off before customers could use the free product. However, today Tesco’s arch rival Sainsburys, which has seen some positive signs lately, were able to implement the idea before Tesco and launched the offer on two products.

The first two products to be promoted in this way are Nappies and Baguettes - exactly the type of products that Sainsbury’s claims that customers want the delayed offer. Nappies because they are bulky which makes them difficult to carry and store if you have to take two packs, and baguettes because few people would need a second baguette on the same day.

However, some people are a little cynical about the BOGOFL ploy. Firstly, the customer must remember to bring the voucher back into store within the time the voucher is valid - so how many will get lost or forgotten. The second reason is that supermarkets are using it as a method of ensuring that customers return - something that doesn’t hold true for the traditional BOGOF.

There is of course another business studies slant on this story. Tesco’s idea would be classed as an innovation - but did they make a mistake in announcing it too early? Have they handed a major rival a competitive advantage?

Advertising Coming To A Windows 7 Desktop Near You

2009-11-18T11:39:00Z

In an interesting move, Microsoft has announced the launch of a pilot program that involves selling advertising space on Windows 7 desktops.

A number of high profile brands, including Coca-Cola and Porsche, are participating in the pilot scheme. Advertising will appear in the Windows 7 interface itself as well as add-ons to the Internet Explorer browser, according to Microsoft. There will also be downloadable Windows 7 Themes designed by the brands.

Why are Microsoft making such a move, and will it be effective?

There are two main reasons behind the move, according to industry analysts. Firstly, Microsoft has been hit by the decline in PC sales worldwide and the increase in netbook sales, which provide a lower profit margin. In the latest quarterly results Microsoft’s revenue was down 14%. The second reason is that the success of Windows 7 is crucial for Microsoft, given the marketing disaster that was Vista, and as such they need to squeeze every last drop of revenue out of the Windows 7 operating system.

How are consumer’s likely to react to this news. Many are likely to be unimpressed. One blog entry has already said what many will be thinking: “If I pay for a product I expect it to be advert free. I will be putting of Windows 7 for as long as I can and hopefully this will meet with such a negative response, Microsoft will be forced to drop it.”

On the other hand, Microsoft is keen to stress that this is an “opt-in” process. Users will choose to download the themes from the Windows 7 Personalisation Gallery. That being the case, though, questions have to be raised about how cost-effective it will be in terms of advertising reach. The answer to that lies in how much Microsoft charge - something that they are not keen to disclose.

Starter Video Clip for Motivation

2009-11-17T21:00:00Z

This is an amazing, amazing clip to introduce the topic of motivation....

I plan to show it to the students and ask them to think of the topic we are about to learn about.

Good for all age groups, especially sixth form, where you could ask them to note down the films/ characters on show.

God bless youtube...what did I do before you entered my life.............

A tale of two bakers

2009-11-16T20:38:01Z

Tom White’s excellent piece on the rapid growth and success of Greggs could be used to compare and contrast with a piece of bad news for those of us here in Yorkshire used to getting our lunchtime nibbles from Ainsley’s…

Around 300 jobs are now at risk after 29-store Yorkshire bakery chain Ainsleys went into administration last week. Ainsleys management blamed rising ingredient prices, energy costs and “severe competition” on the High Street (there’s the neat link to Greggs). To that list, management might have added (in my experience of shopping there for the last 20 years):

- Grumpy customer service
- High prices and poor value for money
- A boring product range
- Dreadful soup
- Lack of innovation

Ainsleys is supplied by its own bakery in the Sheepscar area of Leeds, and employs 263 full and part-time workers and a further 30 temporary staff. Ainsleys’ announcement comes less than three weeks after Greggs revealed plans to open 60 new branches in Yorkshire as part of a major nationwide expansion programme. Perhaps Greggs are the obvious buyers for Ainsley’s outlets, though there would have to be some rationalisation, as several are right next to each other.

A bit more background on the Ainsley’s business failure here

Emerging markets drive demand for oil

2009-11-16T20:26:00Z

A neat graphic on The Economist website this week helps illustrate the rapid economic growth of emerging markets such as India & China. It breaks down the historical demand for oil from the key economies, highlighting the changes between 1980 and the latest forecasts for 2030 by the International Energy Agency. The oil market is a good example to use when illustrating the dynamics of changing supply and demand on market prices. And there is a good discussion to have with students about why an emerging economy such as China, Malaysia or India would experience such a significant increase in demand for oil (rapid industrialisation; wider car ownership etc)

Beating the import threat - luxury furniture

2009-11-16T17:25:00Z

I came across this super short case study in the FT (Oct 09) which is a great example to use to illustrate one strategy of dealing with cheap imports....

The UK furniture industry has suffered terribly in the last couple of decades from import penetration achieved by low-cost producers in countries like Poland and China. Much of the UK furniture industry has been wiped out.

But this business - Ben Dawson Furniture - is fighting on by focusing on premium segments of the market, where customers prefer a high-quality bespoke furniture solution.

The Biz Quiz - 13 November 2009

2009-11-15T16:52:00Z

Here is this weel’s edition of The Biz Quiz

Launch interactive version of The Biz Quiz - 13 November 2009

Download printable handout version

Download SCORM-VLE import file

Business Resource Update - 13 November 2009

2009-11-13T11:49:00Z

More resources added to the Business Studies blog which you might want to look at…

BBC Management Structure & Salaries \ ONS Data
======================================

Many thanks to Graham Salisbury for this terrific blog post which spots the lesson potential of the new disclosures about management organisation and remuneration at the BBC.
http://www.tutor2u.net/blog/index.php/business-studies/comments/bbc-releases-details-of-top-managers-superb-online-resource/

The new data from the ONS on wages and salaries in the UK is also well worth a visit for some lesson ideas:
http://www.tutor2u.net/blog/index.php/business-studies/comments/office-of-national-statistics-publishes-annual-survey-of-hours-and-earnings/

Lord Sutch Starter Activity - Spot the Difference
===================================
A new starter activity suggestion from his Lordship - always worth a look!
http://www.tutor2u.net/blog/index.php/business-studies/comments/spot-the-difference/

Greggs Strategy - “Making Both Ends Meat”
================================
Our local bakery chain (Ainsleys) went bust this week; but Tom White has spotted this terrific BBC resource on a chain that is doing much better - Greggs:
http://www.tutor2u.net/blog/index.php/business-studies/comments/coffee-and-sausage-rolls-still-a-huge-hit-on-the-high-street/

Cash flow Clue-doh - the Mystery is Revealed
=================================
Why did Peston Plastics go into receivership? Some suggested answers to our popular lesson activity (Cash flow Clue-doh!) are now available:
http://www.tutor2u.net/blog/index.php/business-studies/comments/cash-flow-clue-doh-the-mystery-is-revealed/

Next, a couple of bits of website admin!

We’re introducing a range of new features on the subject blogs - many of which will be available only to registered users of the Blog system. Registering is free, and it allows you to post to our new teacher discussion forums and add blog posts to your favourites. If you havent already done it - signup up here:

http://www.tutor2u.net/blog/index.php/site/registration/

and finally. .. don’t forget that you can get a daily Business Blog update from the excellent Google Feedburner system. Simply provide your email to Google and they will send you a neat summary of all the new resources added to the subject blogs each morning (at breakfast time). This service is for students as well as teachers - so do encourage your students to signup. Here is the link:

http://feedburner.google.com/fb/a/mailverify?uri=Tutor2u-BusinessBlog&loc=en_US

Eurostar’s competitive forces

2009-11-13T06:59:01Z

Eurostar has been transporting passengers through the Channel Tunnel from London to Paris and Brussels for 15 years now, and is deemed a success. The company say that they have had over 100 million passenger, with 10 million expected to do so this year. Eurostar now accounts for 80% of all rail or air passengers travelling directly between London and Paris, while London’s airports share the remaining 20% between them – while it is little value to passengers travelling to or from other UK regions, it is clearly much more convenient for passengers in the London area to travel from the centre of one city to the centre of the other, avoiding the need to travel to the airport at each end of the journey.

However, on the first of January, Eurostar will lose their monopoly – until now they have had the sole rights to operate the service, but in a few weeks from, passenger train services through the Channel Tunnel are being opened up to competition. Porter’s 5 Competitive Forces could be employed to assess the position; what is the level of threat to Eurostar? Firstly there may appear to be little threat of rivals setting up as the costs of buying the trains, obtaining safety licences to operate them and training staff are quite a significant barrier to entry for new competitors. However this is much less the case for train operators currently running other international rail services, such as Deutsche Bahn in Germany or the Netherland’s state-run railway company, Nederlandse Spoorwegen, who might look at running direct services between London and Frankfurt, Berlin or Amsterdam. What about the power of Eurostar’s suppliers? The Channel Tunnel is owned by Eurotunnel who charge a fee to companies wanting to use it to run their trains through the tunnel. Eurotunnel say “If a company has its trains safety certified for the tunnel, then they could effectively start straight away. There is space for rival train firms, and as we charge an access fee per train, it is in our interest to see more go through the tunnel.” (This does not apply to freight services, which are run by Eurotunnel themselves, and over which Eurotunnel retains the monopoly – only seated passenger services are to be opened up to competition.)
The power of buyers? If the service is operated by rival train companies then they would have to decide whether to seek competitive advantage by lower prices or by differentiation – which means that the power of the customer would become greater, as each competitor would fight to gain the attention and loyalty of potential travellers.
So the suggestion should be that, although Eurostar Chief Executive Richard Brown sounds confident in this report that “In our opinion, we certainly won’t have a rival next year, and I also don’t think so in 2011”, the board of the company should be looking now at ways to ensure that they are prepared for that competition when it comes.

Office of National Statistics publishes annual survey of hours and earnings

2009-11-12T14:03:00Z

As reported in the press today, the latest annual survey of hours and earnings is just out and it provides an amazing insight into wages across the UK.

The figures from the ONS Annual Survey of Hours and earnings show, for example, that the gender pay gap has fallen by 1% to 16.4% over the past year. That improvement followed an increase of 4% in the average hourly pay of full-time women workers to £13.43, compared with a 2.8% rise in men’s pay to £16.07. The gender pay difference for part-time workers narrowed by 2% to 13.2%.

The figures also give a complete guide to who gets paid what for each job in the country, by sex and occupation.

The Guardian has already waved its magic wand over the figures, so suggest that you stop off there before venturing onto the more detailed and comprehensive ONS website

Guardian: What do people get paid?

ONS: Annual Survey of Hours and Earnings