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/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/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/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/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/manufacturing-strategy-is-china-losing-its-competitiveness http://www.tutor2u.net/blog/index.php/business-studies/comments/manufacturing-strategy-is-china-losing-its-competitiveness#When:16:43:41Z Is China still a competitive location for overseas manufacturing? Certainly the nature of manufacturing in China is chaining rapidly, as this 4 minute video from the Financial Times explains.  It features European firms that moved their production to China several years ago.  However, as wages in China have risen rapidly in recent years, it becomes less cost-effective to make low value-added products in China. BUSINESS THEMES, Business Strategy, Emerging Markets, International Business, Operations Management, TEACHING BUSINESS, Video Case Studies, 2012-01-29T16:43:41+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/external-influences-the-threat-that-is-china http://www.tutor2u.net/blog/index.php/business-studies/comments/external-influences-the-threat-that-is-china#When:05:36:35Z Most A2 Business students have their sights firmly set on BUSS3 this week, which is very much as it should be. However, next week their attention will turn to the wider world of BUSS4. In planning for that, it looks as if the three-part series of reports about China that Newsnight will be running this week would be very useful, and worth recording or at least picking up on i-player. BUSINESS THEMES, Change Management, Emerging Markets, Globalisation, International Business, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, 2012-01-23T05:36:35+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/whats-gone-wrong-for-kodak http://www.tutor2u.net/blog/index.php/business-studies/comments/whats-gone-wrong-for-kodak#When:09:51:13Z Ever heard of Coca-Cola?  How about Google, Microsoft or IBM?  What about McDonald’s?  They sound familiar, and the amazing thing (to me) is that even in the 1990s, you would have heard Kodak mentioned in a list of the world’s five most valuable brands.  Kodak was the Google of its day and by 1976 it accounted for 90% of film and 85% of camera sales in America. How the mighty have fallen, with the announcement that Kodak files for bankruptcy protection. I was reading about Kodak’s decline and here are some of the key points that made an impression: BUSINESS THEMES, Business & Technology, Business Strategy, Change Management, Emerging Markets, International Business, Marketing, 2012-01-19T09:51:13+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/tescos-big-price-drop-on-the-stock-market-or-porter-and-ansoff-in-action http://www.tutor2u.net/blog/index.php/business-studies/comments/tescos-big-price-drop-on-the-stock-market-or-porter-and-ansoff-in-action#When:05:28:28Z Such is the importance of Tesco’s and their dominance of the retail market that the effect of a 2.3% drop in their like-for-like sales knocked almost 16% off their share price yesterday. Perhaps not so much a reflection of the figures themselves - although they compare poorly with Morrison’s and Sainsbury’s both of whom managed to increase their sales over the same period - as the admission by the new CEO Philip Clarke that Tesco’s got their strategy wrong, both in the short and the long term. BUSINESS THEMES, Aims and Objectives, Business Strategy, Credit Crunch, Economic Environment, International Business, Leadership & Culture, Retailing, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS3, AQA BUSS4, 2012-01-13T05:28:28+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/tesco-takes-it-easy-controlling-costs-in-its-us-operations http://www.tutor2u.net/blog/index.php/business-studies/comments/tesco-takes-it-easy-controlling-costs-in-its-us-operations#When:11:22:54Z You may already know about Tesco’s overseas expansion strategy, and its Fresh & Easy venture in the States.  The US expansion is taking place in challenging economic conditions and according to The Guardian, the business is ‘mothballing’ a second wave of Fresh & Easy stores, suggesting that the supermarket group’s loss-making US start-up has hit another bump in the road. BUSINESS THEMES, Business Strategy, Credit Crunch, Enterprise and Startups, Economic Environment, International Business, Retailing, 2012-01-11T11:22:54+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-business-location-and-operations http://www.tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-business-location-and-operations#When:08:34:51Z This new revision presentation provides an overview of the factors that a business considers in choosing its business location. The presentation also considers issues such as multi-site location, industrial inertia and locating a business overseas (offshoring). BUSINESS THEMES, International Business, Operations Management, Retailing, REVISION PRESENTATIONS, 2012-01-02T08:34:51+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/german-works-councils-enforce-vws-work-life-balance http://www.tutor2u.net/blog/index.php/business-studies/comments/german-works-councils-enforce-vws-work-life-balance#When:05:57:53Z Germany has long been noted for the strength of its trade unions, and the power of the works councils in manufacturing industries. Concerned about the blurring of the divide between work and home life, Volkswagen’s powerful works council has struck an agreement with management that most employees who use a company BlackBerry will be subject to new email restrictions. The company’s email server will cease routing messages 30 minutes after the end of an employee’s shift and will only begin sending mails again half an hour before the next working day begins. BUSINESS THEMES, Business Law, International Business, Human Resource Management, Political & Legal Environment, 2011-12-23T05:57:53+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/the-boston-matrix-whisky-and-booming-exports http://www.tutor2u.net/blog/index.php/business-studies/comments/the-boston-matrix-whisky-and-booming-exports#When:09:36:24Z Don’t know why I keep using alcoholic beverages as examples in my lessons, but a recent discussion of the famous Boston Matrix got us all thinking which drinks belong in which Boston Box category.  We decided that Guinness probably represents a cash cow for its producer, Diageo.  In Europe, the market for beers is stable, or shrinking.  But Guinness is a popular brand, with a large market share.  It’s a good earner for the drinks giant. But the Boston Matrix hints that there are better marketing opportunities out there: like grabbing a large share of fast growing markets – and developing star products.  And that’s what Diageo have done, with whisky exports to China of popular brands like Johnnie Walker rising so fast the industry is struggling to meet demand. BUSINESS THEMES, Business Strategy, Emerging Markets, International Business, Marketing, Political & Legal Environment, 2011-12-02T09:36:24+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/international-operations-decisions-adidas-trainers-for-1 http://www.tutor2u.net/blog/index.php/business-studies/comments/international-operations-decisions-adidas-trainers-for-1#When:06:48:20Z This makes an ideal example for students considering the challenges of international location in operations management for which they must consider global markets, cost reduction and avoidance of trade barriers. Here is my plan for the case study and questions which could be set on it: Could Adidas make a profit from selling branded trainers for $1? Certainly not in any of their developed markets – but since 2008 they have been working on a market development (Ansoff!) strategy which would give them access to the vast market in rural India with a social enterprise venture at a price that local people can afford. The goal of the project, the firm says, is not to maximise profits but to “tackle social issues” by creating jobs. BUSS4 RESEARCH, BUSS4 2011 - CSR, BUSINESS THEMES, Aims and Objectives, Business Ethics & CSR, Emerging Markets, Globalisation, International Business, Social Enterprise, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS3, 2011-11-26T06:48:20+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/olympus-epic-fail1 http://www.tutor2u.net/blog/index.php/business-studies/comments/olympus-epic-fail1#When:09:16:43Z The scale of the failings in corporate governance at Olympus is breathtaking.  The company has misled, shareholders, banks, auditors, stock markets, Japan’s government, and staff about the true state of its finances over a 20 year period. It is Corporate Social Irresponsibility on the grandest of scales. BUSS4 RESEARCH, BUSS4 2011 - CSR, BUSINESS THEMES, Business Communication, Business Ethics & CSR, Finance & Accounting, International Business, Leadership & Culture, Political & Legal Environment, 2011-11-09T09:16:43+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/corporate-irresponsibility-at-olympus1 http://www.tutor2u.net/blog/index.php/business-studies/comments/corporate-irresponsibility-at-olympus1#When:12:36:12Z Recent problems at Japan’s Olympus Corporation highlight the importance of corporate culture, ethics, Corporate Social Responsibility and management responsibility to shareholders and other stakeholders. BUSS4 RESEARCH, BUSINESS THEMES, Business Communication, Business Ethics & CSR, Change Management, Finance & Accounting, International Business, Leadership & Culture, Political & Legal Environment, 2011-11-08T12:36:12+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/location-location-location http://www.tutor2u.net/blog/index.php/business-studies/comments/location-location-location#When:21:52:44Z Where to locate? A crucial decision taken by organisations both at the start of a business venture and when considering expansion. BUSINESS THEMES, International Business, Marketing, 2011-10-28T21:52:44+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/a-level-playing-field-for-football-on-tv http://www.tutor2u.net/blog/index.php/business-studies/comments/a-level-playing-field-for-football-on-tv#When:04:51:19Z 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. BUSINESS THEMES, Business & Technology, Business Law, Business Strategy, Economic Environment, Globalisation, International Business, Political & Legal Environment, 2011-10-05T04:51:19+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/lesson-activity-the-dyson-debate http://www.tutor2u.net/blog/index.php/business-studies/comments/lesson-activity-the-dyson-debate#When:08:09:00Z Here is a resource that I use with my AS Business groups when we are covering stakeholders.  A debate format is used with students considering the issues raised by Dyson’s decision to relocate production from Malmesbury to Malaysia. Download Dyson Debate: Dyson_Case_Study_-_Debate_Material.docx BUSINESS THEMES, Business Organisation, Business Strategy, International Business, 2011-09-29T08:09:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/who-is-britains-biggest-manufacturer-the-answer-may-surprise http://www.tutor2u.net/blog/index.php/business-studies/comments/who-is-britains-biggest-manufacturer-the-answer-may-surprise#When:20:04:00Z The impact of the turbocharged emerging economies continues to grow and I was certainly surprised by the answer to this question.  Having spent a long time thinking and reading about outsourcing and offshoring it’s easy to forget how the process runs in two directions.  It’s not just that British firms have massive overseas investments – over the last few years foreign multinationals, many from the developing world, have been building up their bases here. BUSINESS THEMES, Business Strategy, Emerging Markets, Economic Environment, Globalisation, International Business, 2011-09-13T20:04:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategies-for-success-on-the-beleaguered-high-street http://www.tutor2u.net/blog/index.php/business-studies/comments/strategies-for-success-on-the-beleaguered-high-street#When:16:04:00Z This is a gem!  A terrific article that is packed full of materials which students can use to develop their understanding of the strategic options open to high street retailers who are struggling with a significant downturn (once again) in consumer spending. BUSINESS THEMES, Business Strategy, Customer Service, E-Business & E-Commerce, International Business, Human Resource Management, Retailing, 2011-09-06T16:04:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/skype-ceo-on-aims-growth-risks-and-motivation http://www.tutor2u.net/blog/index.php/business-studies/comments/skype-ceo-on-aims-growth-risks-and-motivation#When:05:59:00Z 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. BUSINESS THEMES, Business & Technology, Business Strategy, International Business, Leadership & Culture, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, Edexcel Unit 4a, OCR F297, 2011-09-05T05:59:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/tesco-pulls-out-of-japan http://www.tutor2u.net/blog/index.php/business-studies/comments/tesco-pulls-out-of-japan#When:09:13:00Z Even the might of Tesco cannot overcome the cultural differences between the UK market and the Japanese market for groceries. They moved into the Japanese market in 2003, as part of their objective of global growth, but have now decided that they cannot grow big enough there to generate the economies of scale that they need to make the business profitable - and with the change of focus in their objectives away from growth and towards greater profitability, this no longer fits with their strategy. The reasons for the difficulty of gaining the growth that they need seem to be due to big differences in the way that people do their grocery shopping in Japan. Gavin Rothwell, research manager at groceries analyst IGD, is quoted as saying “The retail market is fragmented and there are many strong regional players, often family-owned. Convenience stores dominate, particularly in the city centres, and a culture of ‘immediacy’ supports large numbers of vending machines/kiosks.”. Tescos are not the only major western retailer to have failed to break these habits, as Carrefour and Boots have also tried to break into the market but pulled out, and Wal-Mart are reportedly struggling. So this story emphasises the risks that businesses take when they try to use the market development sector of Ansoff’s matrix to sell a well-established product into a new and unfamiliar market - and suggests that some markets are more impervious to globalisation than others, BUSINESS THEMES, Aims and Objectives, Business Strategy, Globalisation, International Business, Retailing, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS3, 2011-09-04T09:13:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/the-worlds-biggest-car-market http://www.tutor2u.net/blog/index.php/business-studies/comments/the-worlds-biggest-car-market#When:20:05:00Z You guessed it.  The rise of the emerging markets continues apace, with the US car market now in 2nd place behind China. BUSINESS THEMES, Business & Technology, Emerging Markets, Economic Environment, Globalisation, International Business, 2011-08-30T20:05:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/taking-italian-to-the-chinese-pizza-express-expansion-strategy http://www.tutor2u.net/blog/index.php/business-studies/comments/taking-italian-to-the-chinese-pizza-express-expansion-strategy#When:19:40:00Z With the success of Pizza Hut, Dominos and Papa Johns, it seems that consumers in China have an appetite for Italian fast food.  But is there enough demand to make the market opportunity sufficiently attractive for a more mid-market brand such as Pizza Express?  This superb article in the Telegraph features an interview with Justin Kennedy, the owner of the Pizza Express franchise in Hong Kong and Shanghai. An opportunity for Kenndy to open the first Pizza Express in Shanghai arose five years ago when a suitable retail location became available.  But growth since then has been slow - just one more outlet opened.  Is now the time that that the rate of organic growth can be accelerated as the rising incomes of a Chinese middle class make the Pizza Express product more affordable? The growth objective seems to be pretty modest - up to about 10 restaurants in the next few years. Lots of interesting material in the article.  The trading format has essentially been imported directly from the UK - there seems to be little reflection of local tastes and preferences. Growing the brand in China also seems to have its fair share of headaches - not the least finding suitable trading locations and also recruiting staff with suitable skills and experience. BUSINESS THEMES, Business Strategy, International Business, Retailing, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS3, 2011-08-24T19:40:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/marketing-to-the-elderly http://www.tutor2u.net/blog/index.php/business-studies/comments/marketing-to-the-elderly#When:11:17:00Z Not all marketing is aimed at the young and ultra hip (like T2U readers).  It’s worth remembering that there are other market segments (groups of consumers with the same buying habits) well worth the attention of companies keen to meet the wants and needs of a particular target group in society.  Japan is perhaps the best example of a rich country with a relatively large group of affluent older people. The Economist has an article about the Ueshima coffee shop chain who have geared their marketing strategy to this target market. BUSINESS THEMES, International Business, Marketing, Retailing, 2011-08-24T11:17:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/tesco-adapts-to-the-south-korean-market http://www.tutor2u.net/blog/index.php/business-studies/comments/tesco-adapts-to-the-south-korean-market#When:12:19:00Z 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. BUSINESS THEMES, Business & Technology, International Business, Retailing, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS3, AQA BUSS4, OCR F297, TEACHING BUSINESS, Video Case Studies, 2011-08-08T12:19:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/fresh-doubts-about-outsourcing http://www.tutor2u.net/blog/index.php/business-studies/comments/fresh-doubts-about-outsourcing#When:10:35:11Z For the second time in just a few months, The Economist gives several column inches to debating the merits of outsourcing: the idea that there are big benefits to be had from passing work, once completed by a firm, to a subcontractor who takes on that role. BUSINESS THEMES, Emerging Markets, Globalisation, International Business, Operations Management, 2011-08-08T10:35:11+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/the-irresistible-rise-of-the-super-rich http://www.tutor2u.net/blog/index.php/business-studies/comments/the-irresistible-rise-of-the-super-rich#When:11:31:00Z I wasn’t surprised to pick up on the news that the world’s wealthiest people are now richer than before the credit crunch.  A striking feature of the last thirty years has been the emergence of a tiny group of people capturing a relatively enormous slice of national income.  You may be astonished to learn that in the UK, the wealthiest 1000 people have assets worth more than £330 billion (that figure alone represents a sum equivalent to almost 40% of the entire debts of the UK government). This raises a number of issues in Business.  Firstly, you might focus on the marketing opportunities this offers to some firms.  Equally, you might reflect on the CSR and ethical implications of this state of affairs.  And finally: will it last?  Might the tide be turning, with the next thirty years seeing attitudes change and tolerance for this situation coming under attack from electorates and their governments? BUSINESS THEMES, Business Ethics & CSR, Emerging Markets, Economic Environment, International Business, Personal Finance, Political & Legal Environment, 2011-06-23T11:31:00+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/british-manufacturer-exploiting-a-niche http://www.tutor2u.net/blog/index.php/business-studies/comments/british-manufacturer-exploiting-a-niche#When:05:57:46Z A topical story for Wimbledon fortnight - here is Europe’s only remaining manufacturer of tennis balls, doing well by being imaginative about how to develop their competitive advantage. This is a great story for introducing niche markets and specialisation, with a video showing the manufacturing process which includes attaching two figure-eight-shaped pieces of cloth to the rubber balls by hand, not machine, as owner Derek Price insists this is still the most accurate way. BUSINESS THEMES, Business Strategy, International Business, Marketing, Small Businesses, 2011-06-22T05:57:46+00:00