Mike Southon is essential reading in the FT on a Saturday and his latest entry makes some really useful points for business students…read more...»
An interesting article from Andrew Stone this morning in the Sunday Times highlights the growing funding problems faced by small business who are looking for external investment by business angels…read more...»
Forget those boring textbook examples of batch production - loaves of bread, school dinners, building a house etc etc. Here is a great pictorial example of batch production in action…read more...»
It’s getting close to the end of term, so if you follow this blog you will get a link to a Mitchell and Webb comedy clip that neatly expresses my sentiments about ‘alternative’ medicine. This year the government has taken some first steps to regulate a business worth around £4.5 billion, with ‘treatments’ ranging from aromatherapy and energy channelling to yogic healing. Apparently 1 in 5 Britons has visited one of the 150,000 alternative therapists in the UK.read more...»
A fascinating insight into some new technologies that are enabling a Cambridge-based firm to grow, despite the impact of the global downturn…read more...»
Here are some puzzle-style starter activities based around a collection of well-known UK retailers…read more...»
A dramatic shake-up for the information-technology (IT) industry is coming. Google is promising to release an operating system (like XP or Vista) for personal computers. This represents a direct attack on Microsoft, the world’s biggest software firm.read more...»
Here is an activity that my students are buzzing about.
So, so simple but so, so effective.
Rather than giving a crossword out of key terms at the start of the lesson, how about giving them a completed crossword and asking them to write in the clues?
I tried this yesterday and the results were amazing. You could really see the students thinking and the level of differentiation was incredible. There are lots of crossword creators on-line, and the cool thing about this is, you don’t need to come up with the clues. Let the students do the work (I’m sure that is what teaching is supposed to be about!)
A nice video clip from the BBC website examines the direct and indirect economic effects enjoyed by businesses in Wales as the Ashes cricket series comes to Cardiff: A good example to use as students consider the effect on demand of external influences.
Our Business Teacher Discussion Forums are now fully live. We’re hoping to make the discussion boards into a lively and useful source of help, debate and materials for Business teachers in the UK and overseas.
We’ve got separate boards for various Business courses, including GCSE, AS/A2, BTEC First and IB Business & Management. You can visit them here
EU legislation which prescribes the required shape for a range of fruit and vegetables, is being relaxed. So can you now look forward to seeing a lot more “wonky” veg in the supermarkets? Or will the main grocery chains continue to source good-looking vegetables to meet the needs of customers who like their products to look just right?read more...»
We’re hard at work putting the finishing touches to a new collection of PuzzlePacks for the new GCSE Business specifications…read more...»
This will be a story that is worth following over the Summer. Leading coffee shop chain Coffee Republic is on the bring of going into administration according to the papers yesterday. A story of over-ambitious expansion, unprofitable growth through franchises, the impact of the credit crunch and a struggle to handle intense competition from from better-resourced rivals such as Starbucks and Costa Coffee. So far as I’m aware, Coffee Republic has never made a profit - though it has long been feted as an entrepreneurial success story…
Here’s a challenge you could set your students…read more...»
The undisputed kings of publicity are at it again. The Telegraph is reporting a story in the Sun (an interesting decision in itself) that Ryanair is considering offering standing room options rather than seats on some of its flights. Apparently it can increase the passenger capacity by up to 50% and reduce costs (unit costs per passenger?) by 20% by doing this. A good example to use with students who might want to consider the +‘s and -‘s from various business perspectives…
Just picked up on this detailed story in the Sunday Tmes last week which speculates about whether media mogul Simon Cowell is about to set up a business in partnership with retail magnate Philip Green. The two entrepreneurs are believed to have been plotting (sorry, business planning) the venture in Beverley Hills for a while. Much potential here for an interesting discussion with students about the potential upsides and downsides of putting two high-profile business people together. Are their skills closely and appropriately matched? (as suggested by the article). Or is this an argument and falling-out just waiting to happen?
Here’s an interesting twist on the recruitment and selection process. The standard business studies textbook waxes lyrical about the traditional job application form + advantages / disadvantages compared with a traditional CV. But the business featured in this news story is using the job application process to find out in a very practical way whether applicants can demonstrate they have the required attributes…Read on here
Knowing what your customers want is key to the success of any business. This is particularly true for so called “pound” shops; their customers are focused on value and price.
The importance of this is perhaps reinforced by the tale of two retailers who operate within the value market. Poundland has gone from strength to strength, as shown in earlier blog articles, and is set to open at least 30 new stores over the next 12 months.
InStore, on the other hand decided that their customers should move upmarket - and replaced the familiar £-stretcher fascia with the less familiar InStore fascia.
Our final Biz Quiz for 2008/2009. We return in the first week of September 2009!
The recession is creating a growing amount of spare productive capacity across many different markets and industries. From container ships to hotels and from steel plants to airlines, the fall in demand has lowered capacity utilisation and put a big squeeze on profits. That pressure on profit margins comes not just from weaker revenues. Keep in mind that many businesses have a large fixed cost component such as the overhead costs of operating a network. Thus when output is contracting, the average fixed costs of production increase.
Declining demand and rising productive slack inevitably cause a fall in planned investment spending - economists term this a negative accelerator effect. BBC news reports that British Airways is cutting capital spending in response to the slump in demand and mounting losses. “The airline said it had cut spending by 20% to £580m ($952m) from £725m, and had lengthened its schedule of orders for 12 Airbus A380 aircraft.”
Further evidence for the reverse accelerator affect comes from Japan where Japanese firms cut their capital spending by a record level in the first quarter of 2009. In contrast Stagecoach is increasing investment in a fleet of greener buses.
This is a story that will never end, to the great amusement of people with a slightly immature sense of humour. I might even be describing myself. In a globalised marketplace, words, terms or phrases that make perfect sense in their own language can be unintentionally crazy, daft or rude when they cross over into other cultures.read more...»
The BBC has confirmed that the new series of Dragons’ Den will air on Wednesday 15th July at 9pm on BBC2
This is a cracking starter/ plenary activity that goes down great this time of year.read more...»
Taking advantage of the sweltering temperatures outside whilst I write this, here is a mini case study in quality control…read more...»
A fantastic example of investment appraisal and capacity utilisation in this article in the Guardian, which describes the risks and returns of the new U2 tour.read more...»
I am still looking to fill a vacancy for September. Do get in touch if you are interested.
Calling all Business Studies and Economics teachers: If you are looking for a job from September I would be very interested to hear from you. I have a vacancy in the department for a full time teacher. We offer GCSE, A Level and IB Economics and Business Studies.
Email me directly if you are interested and would like further details, I would be delighted to hear from you (firstname.lastname@example.org).
The school website.
Franchises are now a common feature of the business curriculum, and the textbooks generally paint a very positive picture of how they work. But things can, and do, go wrong. Here’s a great example….read more...»
Fascinating evidence from the Office of National Statistics about what happened to firms inventories during the first three months of 2009. Data form the ONS estimates that the value of stocks held fell by £5.4bn during the quarter - a significant reduction. Students might consider why this happened. There will be a variety of causes:
- Deiberate attempts to reduce finished goods stocks by converting them into cash (perhaps by offering lower prices or promotional discounts)
- Closure (temporary or permanent) of production capacity
- Delays in ordering new raw materials and components as a way of conserving cash
Inflation has many important costs and consequences for both society and business. However a stable and low level of inflation also provides some upsides for business.read more...»
There are two main causes of inflation:
• Demand-pull (when there is excess demand), and
• Cost-push (when costs rise)
Inflation is a sustained increase in the average price level of a country. The rate of inflation is measured by the annual percentage change in the level of prices.read more...»
A great article on Sainsbury’s strategy to accelerate its growth plans. I used this article as an example of what Internal and External constraints their can be on a businesses Marketing Objectives, but it could also be used for the impact on Operations, HR or Finance.read more...»
Mission statements: an exercise in public relations or a key part of providing the direction that management and employees need as they go about their business? The debate about the relevance and usefulness of mission statements has raged for many years.read more...»
Corporate strategies are essentially about what the business wants to achieve. Business strategy is the gameplan for how those corporate objectives are to be achieved.read more...»
Objectives play a key role in business management. They provide the measurable statements of what a business wants to achieve, from the top (corporate) level of the firm right down to the detailed functional activities of the business.read more...»
The government is taking the East Coast rail line that runs from London to Edinburgh and which has been operated by National Express into public ownership. National Express has struggled with falling revenues and higher costs that have contributed to rising losses on the line. In a press release, National Express said that higher hedged fuel costs added £11 million of cost in the first half of 2009, while increased pension costs cost the business a further £3 million.read more...»
First it was the banks. Now it is strategic transport businesses. The government has this morning nationalised the East Coast raiway line, previously operated by National Express.read more...»
The research theme for students taking AQA A2 Business Studies Unit 4 (BUSS4) in January 2010 has been announced. The theme is…Emerging Markets.read more...»
The ten small businesses which are being followed by the BBC month-by-month throughout 2009 are remaining defiantly optimistic, with most of them reporting confidence ‘marks out of ten’ at the same level as May, and three of them more optimistic this month. Many seem to benefit from being in a niche market with very specialised products meaning they can really focus on their customers. They talk of expanding sales and taking on more staff, and some increased interest in UK products and producers. The hotel on the Isle of Wight is benefitting from sterling’s weakness this year causing an increase in holidays in the UK.
Several have changed their cost structures and looked for ways to strengthen their cash flow, for example by reducing reliance on credit for payments, and are hanging on and managing to break even while they hope for increased business in the near future, and there are concerns about how they will cope when interest rates rise again. There is still difficulty for those businesses which are related to the housing market, as solicitors or suppliers of joinery, and the most consistent worries remain those related to finance – lack of credit from the banks, lack of mortgages available to potential buyers, and poor credit ratings given to any relatively new small business regardless of their history.
Tonight’s edition of the Money Programme looks worth watching, or recording – on at 22.00 on BBC2 (unless Wimbledon overruns by two and a half hours again, presumably!).
‘Recession bites into our eating habits’ looks at the changes in supermarket and food spending over the last year, as food prices have risen by 8% and consumers seems to be cutting back on luxuries and shifting to inferior goods – a good illustration of income elasticity of demand, and the effects of falling consumer confidence.read more...»
Six thousand complaints within a week has forced Masterfoods to do a U-turn on its decision to use ingredients which contain traces of animal enzymes.
Is this a business responding to the wishes consumers?read more...»
The latest edition of The Biz Quiz, our weekly quiz on the business news, is now available.
Do you know your dongs from your ringgits? And what currency do they use in Belarus? Try this starter quiz to test your knowledge on foreign currencies.read more...»
Deliberate Creativity is one of the topics on Edexcel’s new GCSE Business Specifications (Unit 1 Section 2) that many of us won’t have taught before. However, I think it’s one of the most exciting topics because it can be used to engage the students in thinking, which is why I intend to start the course by delivering that section.
Professor Dennis Sherwood believes that people can be taught to be creative by using the technique of deliberate creativity. The idea is quite simple - look at what you know, and think about how it could be changed.
TV quizzes are an excellent example of how this has led to the development of new quiz shows. When ITV launched “Who Wants To Be A Millionaire?” how did the BBC respond to it’s success?read more...»
Many thanks to Patrick Neill at Bideford College for providing an example of a terrific enterprise activity that has worked really well with his students…read more...»
Many thanks to Alison Elmes for sharing this experience in the classroom last week…read more...»
The Times ‘Ideas at Work’ section has a feature today about how to build a winning team in business. The first point questions whether you actually need a team, or simply a group of individuals working on separate tasks but reporting to the same supervisor. On the assumption that the business needs something a bit more than that, much of the advice centres on long term strategic planning, which should be a central part of human resource management – allowing time for team dynamics and bonding to evolve, having a team which is small enough to be co-ordinated and setting clearly defined roles with a decisive leader. There are two vital aspects of recruitment that reflect points made by Mike Southon, the Beermat Entrepreneur, at last week’s Business Studies National Teacher Conference; getting a mix of people and talents rather than several matching talents, and bringing in a ‘deviant’ – someone who is prepared to take a different view and question the normal status quo, but without acting as a ‘team destroyer’. To quote Lynda Gratton, Professor of Management Practice at London Business School, “You want people to challenge each other, but you don’t want winners and losers — people stop talking to each other.”
A big hat tip to Mark Mitchell for showcasing this classic Hale & Pace clip as a way of introducing the topic of customer service…read more...»
This business remains one of the biggest in the world and you could (if you really wanted) do a whole Business course just looking at the automotive industry. The problem for me is keeping up with the current rate of change – I still can’t quite believe that General Motors (GM) has gone bankrupt.read more...»
Will King, the CEO of King of Shaves who spoke about his battle to break into the shaving products market at the Economics conference last week, was on BBC Radio 5’s Wake up to Money yesterday – you can listen to the programme or download the podcast from here. King of Shaves is raising a further £5m capital to fund its growth plans – as Geoff reported on the Economics blog last week, King of Shaves is launching successfully in Japan and now looking towards the United States. However at this time when all the news is full of stories of businesses which cannot raise money from the banking system, Will King has come up with a different approach which follows his hugely successful strategy of using the web and viral marketing.