http://www.tutor2u.net/blog/index.php/business-studies/ en tutor2u.net Copyright 2012 2012-02-12T11:47:19+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/8-ways-to-make-a-success-of-a-takeover http://www.tutor2u.net/blog/index.php/business-studies/comments/8-ways-to-make-a-success-of-a-takeover#When:11:47:19Z Firms that pursue takeovers should look to create value, not headlines.  That’s one of the lessons I’ve picked up from some analysis of successful takeover strategies listed in the 2010 KPMG survey of global M&A.  Here is a brief summary of their recommendations for approaches which are more likely to result in a takeover or merger.. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Business Strategy, 2012-02-12T11:47:19+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/qa-what-are-synergies-in-takeovers-and-mergers http://www.tutor2u.net/blog/index.php/business-studies/comments/qa-what-are-synergies-in-takeovers-and-mergers#When:10:51:36Z Look at any major takeover or merger in the news and you’ll come across the concept of synergies…. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Business Strategy, Q&A REVISION NOTES, Q&A Business Strategy, 2012-02-12T10:51:36+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/insights-on-takeovers-and-mergers-from-kpmgs-2011-global-survey http://www.tutor2u.net/blog/index.php/business-studies/comments/insights-on-takeovers-and-mergers-from-kpmgs-2011-global-survey#When:10:06:32Z I’ve spent a day reading through a detailed analysis of global takeover and merger evidence (“M&A”) written by accountants KPMG in 2011.  The report is both comprehensive and complex.  However, it contains some useful insights for students and teachers researching the key strategic issues raised by M&A.  I have highlighted and summarised some of the key findings below. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Business Strategy, Change Management, Leadership & Culture, Human Resource Management, 2012-02-12T10:06:32+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/innovation-in-business-perspectives-from-stephen-elop-ceo-of-nokia http://www.tutor2u.net/blog/index.php/business-studies/comments/innovation-in-business-perspectives-from-stephen-elop-ceo-of-nokia#When:08:01:21Z Nokia is an essential research case study for business students and teachers and I highly recommend this excellent, longer video interview with Nokia CEO Stephen Elop.  The discussion focuses on the role of innovation in business, but you also get a sense of the character of Elop, a key case study in leadership and business strategy. This is a wide-ranging and accessible discussion that also focuses on the effect of technological disruption in business, with a specific analysis of the effect/influence of disruption on innovation strategy. BUSINESS THEMES, Business & Technology, Business Strategy, Leadership & Culture, 2012-02-12T08:01:21+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/researchbuster-acquisitions http://www.tutor2u.net/blog/index.php/business-studies/comments/researchbuster-acquisitions#When:20:38:17Z Our ResearchBuster blog posts are designed to help students identify and integrate examples of business strategy for their synoptic essays and exams.  This ResearchBuster look at some of the most significant examples of takeovers / acquisitions in recent years… (updated 11 Feb 2012 with 10 new entries) BUSINESS THEMES, Business Strategy, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, OCR F297, 2012-02-10T20:38:17+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/pricing-and-the-consumer-a-question-of-haggling http://www.tutor2u.net/blog/index.php/business-studies/comments/pricing-and-the-consumer-a-question-of-haggling#When:15:23:47Z I got into trouble with Mrs T2U last week when I criticised her for accepting the first price offered by a supplier of bespoke curtains.  “We’ve been ripped off!” I suggested, indicating that a door-to-door salesman is there to close the sale and will always accept a lower offer before signing the customer. A period of silence from Mrs T2U ensued… I’m sure the curtains will be lovely (honest), but was I right to suggest that consumers should haggle?  Do you feel comfortable negotiating the price of something or do you take it as a given? BUSINESS THEMES, Marketing, 2012-02-10T15:23:47+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/product-innovation-extending-the-humble-cupcake http://www.tutor2u.net/blog/index.php/business-studies/comments/product-innovation-extending-the-humble-cupcake#When:12:36:02Z It is often said that if you want to find the next “big thing” in consumer trends, then take a flight over to North America to see what is popular.  Cupcakes are one such phenomenon - their popularity has spread quickly over here to the UK.  So, could this slightly unusual product extension idea for cupcakes take off here too? BUSINESS THEMES, Marketing, 2012-02-10T12:36:02+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/video-resource-do-bonuses-work-as-an-incentive-for-better-performance http://www.tutor2u.net/blog/index.php/business-studies/comments/video-resource-do-bonuses-work-as-an-incentive-for-better-performance#When:12:22:55Z A timely short video here from the BBC looks at the way that a simple activity-related bonus improves productivity in a small drilling business.  Employees and management seem happy at D-Drill.  But, can the use of much larger-scale bonuses in financial services be justified in the same way?  A great starting point for discussion with students… BUSINESS THEMES, Human Resource Management, Operations Management, TEACHING BUSINESS, Video Case Studies, 2012-02-10T12:22:55+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/the-history-of-apples-product-innovation-in-30-seconds http://www.tutor2u.net/blog/index.php/business-studies/comments/the-history-of-apples-product-innovation-in-30-seconds#When:12:01:04Z Short and sweet - this 30 second video that showcases the progression of Apple’s product portfolio. A journey that takes us from the very first Apple prototype computer through to the iPad. Great for illustrating the process of product innovation.  You can always pause the video (if you’re quick) to look at the individual products. BUSINESS THEMES, Business & Technology, TEACHING BUSINESS, Video Case Studies, 2012-02-10T12:01:04+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/starter-activity-contingency-planning-japanese-style http://www.tutor2u.net/blog/index.php/business-studies/comments/starter-activity-contingency-planning-japanese-style#When:21:58:24Z When it comes to contingency planning, no-one does it better than Japan.  And here are two humorous videos that demonstrate the extents to which you can go to prepare for risky events… BUSINESS THEMES, Business Strategy, TEACHING BUSINESS, Video Case Studies, 2012-02-09T21:58:24+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/takeovers-the-search-for-cost-synergies http://www.tutor2u.net/blog/index.php/business-studies/comments/takeovers-the-search-for-cost-synergies#When:20:16:54Z Students researching the topic of takeovers and mergers will come across several unfamiliar terms. One of the most important for them to understand is “synergy” and we’ll write in more detail in subsequent blog entries about what these are.  However, here is a useful piece of research which indicates the potential and significance of the most common kind of synergy - “cost synergies”. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Business Strategy, 2012-02-07T20:16:54+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/happiness-in-the-workplace-still-proving-elusive http://www.tutor2u.net/blog/index.php/business-studies/comments/happiness-in-the-workplace-still-proving-elusive#When:17:21:26Z 60 years ago we worked 30% longer and took half as many holidays.  For most, pay was poor.  Discrimination in the workplace was widespread, and permitted by law.  Work was often hard, and for working class men it was often dangerous too.  So it’s a sobering thought to think that several decades later, measures of anxiety in the workplace have risen, to the point that stress has replaced back pain as the most common cause of long-term sick leave, according to The Guardian.  What’s going wrong? BUSINESS THEMES, Business & Technology, Leadership & Culture, Human Resource Management, 2012-02-06T17:21:26+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/which-is-better-aldi-or-lidl-compare-and-contrast-these-and-others-using-st http://www.tutor2u.net/blog/index.php/business-studies/comments/which-is-better-aldi-or-lidl-compare-and-contrast-these-and-others-using-st#When:16:37:22Z I’ve only just stumbled on this excellent resource which pits Aldi against Lidl - and takes a snapshot of the differences in customers’ opinions.  In this example, Lidl won 60/40.  This is a fun few minutes suitable for a starter activity, with over twenty other examples to choose from. BUSINESS THEMES, Customer Service, Marketing, Retailing, 2012-02-06T16:37:22+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/private-equity-buyouts-sunday-times-supplement http://www.tutor2u.net/blog/index.php/business-studies/comments/private-equity-buyouts-sunday-times-supplement#When:05:30:52Z Private Equity hasn’t really featured very strongly in the Business Studies syllabus before, but may come more to the fore this year in the study of mergers and takeovers. A supplement in yesterday’s Sunday Times which examines ‘private equity backed firms with the fastest growing profits’ is worth getting hold of, as it gives some help on the role of private equity in the M&A market. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, International Business, 2012-02-06T05:30:52+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/takeovers-in-the-uk-the-long-term-trend http://www.tutor2u.net/blog/index.php/business-studies/comments/takeovers-in-the-uk-the-long-term-trend#When:15:23:44Z I’ve been delving into the datasets on the ONS site to pick up some evidence about the scale of takeovers and mergers involving UK businesses.  Having worked in M&A during the 1990’s and early 2000’s, I remember the various short-term peaks and troughs of activity that the takeover market seemed to go through.  However, I wanted to get a better sense of longer-term trends.  Here’s what I found. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Business Strategy, Credit Crunch, 2012-02-05T15:23:44+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/buying-in-to-the-facebook-culture http://www.tutor2u.net/blog/index.php/business-studies/comments/buying-in-to-the-facebook-culture#When:08:05:34Z Want to buy shares in Facebook? The desire to buy-in to a business which has had such a revolutionary effect on communications will surely be huge. It almost feels like the emotional decision that football fans make when they buy shares in their beloved club. But the canny investor will analyse what they are investing in: is this a business decision in which they can examine the ratios and then the founder’s or directors’ mission statement, in order to assess their chances of gaining a suitable return on their investment? BUSINESS THEMES, Aims and Objectives, Business Strategy, Change Management, Leadership & Culture, 2012-02-05T08:05:34+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/glenstrata http://www.tutor2u.net/blog/index.php/business-studies/comments/glenstrata#When:09:48:55Z Yesterday morning’s business news has been dominated by the proposed merger of Glencore and Xstrata. Glencore’s 34% holding of Xstrata shares had made a third party approach for Xstrata very difficult if not impossible. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Aims and Objectives, Business Strategy, Change Management, International Business, Political & Legal Environment, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, 2012-02-03T09:48:55+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/minis-pr-backfires-badly-in-central-europe http://www.tutor2u.net/blog/index.php/business-studies/comments/minis-pr-backfires-badly-in-central-europe#When:05:44:30Z No doubt it seemed a jolly good idea at the time. Someone in Sassenbach, the advertising agency that handles the BMW Mini account spotted an oppportunity; the German meteorology institute offers ‘Adopt a Vortex’, the chance to name, or ‘sponsor’, weather systems and encourages people to follow the path of the weather on meteorological websites. So they decided to name a weather system ‘Cooper’, and according to the BBC report they thought that naming the front after the open-air vehicle was a “wind- and weather-proof idea”. BUSINESS THEMES, Marketing, 2012-02-03T05:44:30+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/cadburys-law-should-uk-firms-be-protected-from-takeover http://www.tutor2u.net/blog/index.php/business-studies/comments/cadburys-law-should-uk-firms-be-protected-from-takeover#When:19:56:15Z Back in 2010, the effect of the Kraft takeover of Cadbury’s brought business into the realms of politics as the unhappiness felt by some stakeholders spilled directly into the UK’s General Election. One proposed response from the Labour Party was the so-called Cadbury’s Law, whereby new legislation would attempt to protect UK firms from takeover by foreign companies.  Was this a good idea? BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Business Strategy, TEACHING BUSINESS, Video Case Studies, 2012-02-02T19:56:15+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/pest-iag-and-bmi-acquisition1 http://www.tutor2u.net/blog/index.php/business-studies/comments/pest-iag-and-bmi-acquisition1#When:20:07:58Z International Airlines Group or BA and Iberia are trying to acquire BMI from Lufthansa. A move which would allow IAG would gain c. 56 additional take-off and landing slots at Heathrow. Lufthansa had bought up most of BMI’s shares in 2008 but has failed to prevent the group losing money. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Aims and Objectives, Business Strategy, Leisure, Travel & Tourism, Political & Legal Environment, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, 2012-02-01T20:07:58+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/the-7p-valentines-day-card http://www.tutor2u.net/blog/index.php/business-studies/comments/the-7p-valentines-day-card#When:16:43:55Z With just a couple of weeks until Valentine’s Day, many shops are going into overdrive with the displays of flowers, hearts, chocolates etc… It’s a lucrative time of year to charge top prices for certain products that might have a very inelastic PED (depending on how late you leave it to purchase!) and many firms see this as a good opportunity for business - I know plenty of Young Enterprise teams in schools all over the country who see it this way as well. BUSINESS THEMES, Marketing, 2012-02-01T16:43:55+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/mastering-the-art-of-merger-integration http://www.tutor2u.net/blog/index.php/business-studies/comments/mastering-the-art-of-merger-integration#When:14:45:23Z As the BUSS4 research topic reaches the students it is useful to be able to steer them towards something to get the process started. Finding something they can do alongside other work should help to motivate them as they feel their way into the topic. BUSS4 RESEARCH, BUSS4 2012 - M&A, BUSINESS THEMES, Business Strategy, Change Management, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, 2012-02-01T14:45:23+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/integration-integration-integration1 http://www.tutor2u.net/blog/index.php/business-studies/comments/integration-integration-integration1#When:11:38:35Z HP is an example of a firm which is struggling to integrate acquisitions, and the perils of diversification. BUSS4 RESEARCH, BUSINESS THEMES, Aims and Objectives, Business & Technology, Business Strategy, Change Management, Finance & Accounting, International Business, Leadership & Culture, Political & Legal Environment, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, 2012-02-01T11:38:35+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/how-to-turn-threats-into-an-opportunity-at-ryanair http://www.tutor2u.net/blog/index.php/business-studies/comments/how-to-turn-threats-into-an-opportunity-at-ryanair#When:06:11:12Z Michael O’Leary, quoted in Management Today, describes the situation facing Ryanair towards the end of last year. He highlighted the threats from the EU recession and higher oil prices, but typically O’Leary found the opportunities more compelling: the “unfolding failure of the package tour operator model, significant competitor fare increases and capacity cuts, created enormous growth opportunities for Ryanair, as large and smaller airports across Europe compete aggressively to win Ryanair’s growth” he said. BUSINESS THEMES, Business Strategy, Leisure, Travel & Tourism, International Business, Operations Management, 2012-01-31T06:11:12+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/success-for-the-daily-mails-online-strategy http://www.tutor2u.net/blog/index.php/business-studies/comments/success-for-the-daily-mails-online-strategy#When:15:04:28Z Last year I started my A2 students on the topic of business strategy by looking at the UK newspaper market.  Analysis of their position paints a pretty bleak picture, but the industry has a successful record of innovation, so it was interesting to compare their strategies for survival.  A year later, and the success of one paper’s strategy is becoming apparent. BUSINESS THEMES, Business & Technology, Business Strategy, E-Business & E-Commerce, Marketing, 2012-01-30T15:04:28+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/technological-change-the-consumerisation-of-technology http://www.tutor2u.net/blog/index.php/business-studies/comments/technological-change-the-consumerisation-of-technology#When:11:12:28Z This is a neat two-minute video from The Economist (in October 2011) which provides an ideal introduction to a key concept - the “consumerisation of technology”.  Essentially this is about the integration of consumer tech products into the world of work. The main example provided is that of the smartphone, but you can apply the same concept to other hardware products such as tablets and also to software as a service (“SaaS”) such as cloud-based storage. BUSINESS THEMES, Business & Technology, 2012-01-30T11:12:28+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategic-choice-what-should-facebook-do-with-cash-from-the-ipo http://www.tutor2u.net/blog/index.php/business-studies/comments/strategic-choice-what-should-facebook-do-with-cash-from-the-ipo#When:10:56:06Z The business pages are buzzing about the impending flotation of Facebook, with some analysts speculating that the implied valuation of Facebook based on the flotation share price will be up to $100billion.  It is thought that Facebook will seek to raise approximately $10billion of new share capital through the IPO.  But, what should Mark Zuckerberg and his Facebook Board do with the cash raised? BUSINESS THEMES, Aims and Objectives, Business & Technology, Business Strategy, 2012-01-30T10:56:06+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/leadership-in-a-multinational-business-what-leadership-style-works-best http://www.tutor2u.net/blog/index.php/business-studies/comments/leadership-in-a-multinational-business-what-leadership-style-works-best#When:10:12:48Z This is an interesting blog entry from Pekka Viljakainen, an entrepreneur from Finland who sold his IT consulting business to a multinational Tieto. Some useful insights here for students wanting to develop their understanding of how the challenge of leadership changes as a leader’s responsibilities become more complex and cross-border. BUSINESS THEMES, Business Strategy, International Business, Leadership & Culture, Human Resource Management, 2012-01-30T10:12:48+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/leadership-howard-schultz-importance-of-leading-an-innovative-culture http://www.tutor2u.net/blog/index.php/business-studies/comments/leadership-howard-schultz-importance-of-leading-an-innovative-culture#When:21:53:39Z I’m a big fan of Starbucks as a case study for business students which provides some great examples of linkages between the different aspects of business strategy.  In this clip from a recent business conference (London 2011), Starbucks CEO Howard Schultz discusses the importance of innovation in a competitive environment where businesses that stand still face defeat. BUSINESS THEMES, Business Strategy, Leadership & Culture, Marketing, TEACHING BUSINESS, Video Case Studies, 2012-01-29T21:53:39+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/leadership-what-is-the-best-leadership-style-it-depends-on-the-situation http://www.tutor2u.net/blog/index.php/business-studies/comments/leadership-what-is-the-best-leadership-style-it-depends-on-the-situation#When:20:45:39Z A somewhat different and more formal feel to this video, but it makes an effective classroom resource nonetheless.  It introduces an important concept relating to leadership - that of “situational leadership”. BUSINESS THEMES, Leadership & Culture, TEACHING BUSINESS, Video Case Studies, 2012-01-29T20:45:39+00:00