http://www.tutor2u.net/blog/index.php/business-studies/ en tutor2u.net Copyright 2010 2010-03-18T21:26:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/ireland-asks-for-your-help-on-st-patricks-day/ http://www.tutor2u.net/blog/index.php/business-studies/comments/ireland-asks-for-your-help-on-st-patricks-day/#When:10:19:00Z It’s hard to take this one seriously, but perhaps you should give it a try.  The Irish president, Mary McAleese, has launched a website asking for your views and ideas that could be developed into new businesses with the aim of creating jobs and “bringing back the feel-good factor” to the struggling country. Maybe it’s worth a few minutes of business studies time to consider both the nature of Ireland’s problems and to take a strategic view of possible ways forwards.  And there is €100,000 for the best ideas….. BUSINESS THEMES, Aims and Objectives, Business Strategy, Credit Crunch, Economic Environment, International Business, Political & Legal Environment 2010-03-17T10:19:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/motivation-and-management-at-john-lewis/ http://www.tutor2u.net/blog/index.php/business-studies/comments/motivation-and-management-at-john-lewis/#When:00:20:01Z These news reports about the 10% rise in profits at John Lewis are valuable for students preparing for AQA BUSS 4, as they give plenty of material about how the group turned poor half year results into splendid full year profits in the midst of the recession and decline in high street spending. The report in the Guardian is particularly interesting as it examines the advantages brought by the unusual corporate structure, and the quality of management of the company which it concludes isn’t the best-run in Britain. While the article in Management Today compares the profits with those of Morrisons, and contrasts the growth strategies of the two businesses. They are equally valuable for those preparing for the AS unit 2 papers, as they examine the way in which John Lewis uses profit sharing as a means of financial motivation, alongside a wide range of other fringe benefits, and in return have a labour turnover which is half that of most of their competitors. They should be viewed alongside the BBC’s series of three programmes about John Lewis and will be of greatest interest of all to any students who have part-time jobs at Waitrose or the department stores, as they stand to gain a 15% profit sharing bonus! BBC News - John Lewis profits top £306m as staff share big bonus The Guardian - At John Lewis, ‘happiness’ beats profit Management Today - Booming Waitrose powers John Lewis to bumper profits BUSINESS THEMES, Business Strategy, Change Management, Leadership & Culture, Human Resource Management, Operations Management, Retailing, BUSS4 RESEARCH, Recent UK Recession (June 2010), EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS2, AQA BUSS4 2010-03-12T00:20:01-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/data-watch-what-happened-to-business-investment-in-the-uk-recession/ http://www.tutor2u.net/blog/index.php/business-studies/comments/data-watch-what-happened-to-business-investment-in-the-uk-recession/#When:07:52:00Z A recession is typically associated with a reduction in business investment (capital expenditure).  What does the data show in terms of the total capital spending by UK firms during the recent recession? BUSINESS THEMES, Business Strategy, Credit Crunch, Finance & Accounting, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-03-05T07:52:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/buss4-research-a-corus-of-disapproval/ http://www.tutor2u.net/blog/index.php/business-studies/comments/buss4-research-a-corus-of-disapproval/#When:22:18:00Z One more suggestion for colleagues looking to encourage students to pick a relevant case study for their BUSS4 research on the recent recession in the UK.  Take a look at the Corus story over the last 18-24 months. BUSINESS THEMES, Business Strategy, Economic Environment, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-03-01T22:18:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-stakeholders-and-cutting-labour-costs/ http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-stakeholders-and-cutting-labour-costs/#When:17:51:00Z During the recent recession in the UK, many firms looked to reduce their operating costs by implementing short-time working, overtime bans and temporary cuts in production capacity.  What were the stakeholder implications of this?  A key issue was what effect these actions had on employer/employee relations, and I came across this neat 4 minute video which addresses the issue.  In the video, the General Secretary of the TUC discusses how trade unions felt about labour cost-minimisation strategies.  Some good points for students to pick up in here: View video interview with Brendan Barber (TUC) [source BBC Daily Politics] BUSINESS THEMES, Business Ethics & CSR, Business Strategy, Economic Environment, Human Resource Management, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-03-01T17:51:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/recession-strategy-what-happens-when-a-market-dives-by-30-per-cent/ http://www.tutor2u.net/blog/index.php/business-studies/comments/recession-strategy-what-happens-when-a-market-dives-by-30-per-cent/#When:08:55:00Z Hays Group plc is a great case study example to use with students if you want to look at a recession strategy where market demand falls significantly.  We’ve put some numbers together which will help you use Hays as a lesson resource. BUSINESS THEMES, Business Strategy, Finance & Accounting, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-28T08:55:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/hrm-priorities-as-firms-exit-the-recession/ http://www.tutor2u.net/blog/index.php/business-studies/comments/hrm-priorities-as-firms-exit-the-recession/#When:06:30:00Z What should a firm’s people management priorities be as the UK & global economy slowly emerges from recession?  The Institute of Employment studies has just published its suggestions… BUSINESS THEMES, Business Strategy, Leadership & Culture, Human Resource Management, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-27T06:30:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/retrenchment-at-the-bbc/ http://www.tutor2u.net/blog/index.php/business-studies/comments/retrenchment-at-the-bbc/#When:20:48:00Z This story has, unsurprisingly, generated a lot of media interest.  A report in the Times (described as speculation and not entirely denied by the BBC) predicts that the result of a recent strategic review by the BBC will result in some classic retrenchment by the public-sector broadcaster.  Non-core radio stations are tipped as candidates for closure and the BBC’s burgeoning web output is expected to be cut significantly.  Bad news for BBC listeners, viewers and readers perhaps (who, in the UK are licence fee payers of course).  But good news (and a source of many opportunities) for the private sector. Who, for example, will fill the gaps in the market if BBC 6 Music is closed?  Students might also question whether there really is a gap in the market!  A good introduction to the concept of retrenchment, and there are some strong stakeholder issues raised here too. BUSINESS THEMES, Business Organisation, Business Strategy 2010-02-26T20:48:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/global-branding-in-emerging-markets-ikea-tolerates-window-shoppers/ http://www.tutor2u.net/blog/index.php/business-studies/comments/global-branding-in-emerging-markets-ikea-tolerates-window-shoppers/#When:15:57:00Z A big hat tip to Steve Storey for spotting this fantastic video from the FT on the Ikea store in Beijing.  For those who you with an FT.com subscription which gets you past the paywall, this is one to show the students! BUSINESS THEMES, Business Strategy, Emerging Markets, Globalisation, Marketing, BUSS4 RESEARCH, Emerging Markets - China, TEACHING BUSINESS, Video Case Studies 2010-02-25T15:57:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/entrepreneurial-success-cath-kidston-bucks-the-recession/ http://www.tutor2u.net/blog/index.php/business-studies/comments/entrepreneurial-success-cath-kidston-bucks-the-recession/#When:15:02:00Z A neat entrepreneurial success story that will appeal to the female business students who are fans of specialist retailer Cath Kidston.  An initial investment of £15,000 has turned into a stake worth around £25 million.  Not a bad ROI.  Lots of good stuff in this interview article for students wanting an example of niche business which has grown strongly despite the recession - and still lots of growth opportunities to exploit. BUSINESS THEMES, Business Strategy, International Business, Marketing, Retailing 2010-02-25T15:02:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-cost-optimisation-not-cost-minimisation/ http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-cost-optimisation-not-cost-minimisation/#When:14:22:00Z The quick fix is easy.  The economy worsens and customer confidence plummets.  Monthly sales begin to decline; fewer customers respond to the direct mail shot or visit the shops. The word goes out after the latest board meeting.  All functional budgets are to be cut by 10% as a strategic response to the economic crisis.  But does it work?  Or should a business take a much more strategic approach to cost management? BUSINESS THEMES, Business Strategy, Finance & Accounting, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-25T14:22:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-dont-panic-mr-mainwaring/ http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-dont-panic-mr-mainwaring/#When:10:14:01Z One of the key lessons from the recent recession is a need for firms to take a much closer look at how their business really operates.  Those that really knew their business - their strengths and weaknesses (their competitive position) - have usually been able to respond successfully.  Those that were caught by surprise have been badly hurt, or worse. BUSINESS THEMES, Business Strategy, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-25T10:14:01-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-global-innovators-keep-investing/ http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-a-recession-global-innovators-keep-investing/#When:09:52:00Z Another cracking (though detailed) research report on the strategies of global innovators has arrived in my inbox.  Booz & Company’s 5th annual survey of 1,000 leading global players has some fascinating insights into the strategic response to the recession.  I have summarised some of the key learning points for students below. BUSINESS THEMES, Business Strategy, Marketing, Operations Management, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-25T09:52:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/wonderland-the-cinema-dvd-lifecycle/ http://www.tutor2u.net/blog/index.php/business-studies/comments/wonderland-the-cinema-dvd-lifecycle/#When:11:59:01Z A report in The Times explains how filmgoers will have less time to wait for films to come out on DVD after Disney won a decisive battle in Britain over release dates for Alice in Wonderland. Two of Britain’s biggest cinema chains had threatened to boycott the film because of Disney’s wish to bring it out on DVD 12 weeks after its cinema release rather than the customary 17.  BUSINESS THEMES, Business & Technology, Business Strategy, Leisure, Travel & Tourism, Marketing 2010-02-24T11:59:01-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-the-uk-recession-what-69-uk-ceos-did-about-it/ http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-in-the-uk-recession-what-69-uk-ceos-did-about-it/#When:18:41:00Z There are some fascinating surveys coming out at the moment, and another one has just landed in my inbox from my former colleagues at PricewaterhouseCoopers.  This one - the UK Snapshot from the 13th Annual Global CEO Survey - is a fantastic research resource for students preparing for BUSS4 in June 2010 and January 2011. BUSINESS THEMES, Business Ethics & CSR, Business Strategy, Economic Environment, Environment & Business, Finance & Accounting, Leadership & Culture, Marketing, Human Resource Management, Operations Management, BUSS4 RESEARCH, Recent UK Recession (June 2010), EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4 2010-02-22T18:41:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/cash-management-becomes-a-strategic-priority-during-the-recent-recession/ http://www.tutor2u.net/blog/index.php/business-studies/comments/cash-management-becomes-a-strategic-priority-during-the-recent-recession/#When:17:02:00Z Effective cash and working capital management has become a key strategic priority during the last 12-18 months according to a major survey of over 300 companies by accountants KPMG. BUSINESS THEMES, Business Strategy, Credit Crunch, Finance & Accounting, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-22T17:02:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/marketing-in-a-recession-more-focus-on-brand-advertising-and-product-enhanc/ http://www.tutor2u.net/blog/index.php/business-studies/comments/marketing-in-a-recession-more-focus-on-brand-advertising-and-product-enhanc/#When:07:58:00Z Here is another example to add to Jim’s blog entries this week about the value of increasing marketing spend during a recession: according to Flexnews, Kellogg’s reported that it is increasing its spending on advertising this year as a means of re-investment in its brands. Its spending in 2009 was already a massive 9% of its $12.6 billion in global net sales revenue, compared to an estimate of only 5% for its nearest competitor, and the company also reports that, with ‘deflation’ in media (ie reduced costs for using the media) then the value that they can get from that spending is enhanced. Chief Operating Officer John Bryant also said that, having tripled their spending on advertising in social media such as Facebook, they will continue to focus on this area. In order to convince customers of the added value from Kelloggs’ products there is also strong emphasis on renovating their portfolio of products to reflect the importance of nutrition and health. The company is working to reduce trans fatty acids, salt and sugar in foods and also identified the need to add fibre in its breakfast cereals, with studies showing that 9 out of 10 children in the US do not eat enough fibre in their diets.  BUSINESS THEMES, Business Strategy, Marketing, BUSS4 RESEARCH, Recent UK Recession (June 2010), EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4 2010-02-20T07:58:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/michael-porter-on-the-importance-of-long-term-strategic-thinking-in-a-reces/ http://www.tutor2u.net/blog/index.php/business-studies/comments/michael-porter-on-the-importance-of-long-term-strategic-thinking-in-a-reces/#When:22:38:00Z The first four minutes of this press conference with Prof Michael Porter make a really important point for students considering the issue of short-term actions versus long-term plans when it comes to business strategy in the recession.  BUSINESS THEMES, Business Strategy, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-19T22:38:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/customers-have-changed-during-the-recession-how-does-marketing-respond/ http://www.tutor2u.net/blog/index.php/business-studies/comments/customers-have-changed-during-the-recession-how-does-marketing-respond/#When:12:04:00Z This ten-minute video interview from Harvard Business School would make for a challenging, but potentially rewarding, lesson resource for students researching how the global recession has altered consumer behaviour.  It covers some pretty fundamental ground in terms of market segmentation and the role of marketing strategy during an economic downturn.  Whilst focused on the US consumer markets, the points raised by Profession John Quelch are highly relevant to UK students. BUSINESS THEMES, Business Strategy, Marketing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-19T12:04:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategies-for-the-recession-insights-from-six-restaurant-group-ceos/ http://www.tutor2u.net/blog/index.php/business-studies/comments/strategies-for-the-recession-insights-from-six-restaurant-group-ceos/#When:09:47:00Z I came across a super series of CEO interviews in Restaurant Magazine’s online edition whilst doing some research yesterday.  Its real gold standard material for anyone wanting to gain some real-life insights into how businesses focus their strategy during a recession.  I’ve highlighted some of the key quotes, issues and ideas below, together with links to the interviews themselves if students want to take a more detailed look.  My emphases are in bold. Looking through the interviews one more time, I picked up the follow key lessons for strategy: * A recession is no time to allow quality standards to fall - customers expect the same or better quality for the same or a lower price.  Customer expectations are rising. * In consumer-facing markets, value-for-money is what customers really want * Early, decisive action is key - as is management’s ability to hold their nerve in uncertain times.  Leadership is therefore key. * Customers will remain loyal - but they expect a business to do even more to earn their loyalty!  Constant two-way communication and feedback with/from customers is vital * Don’t cut back on investment in innovation - if the brand is built on innovation, keep investing * Focus on the three P’s of management in a recession: people (training), promotion & product * Pricing - keep it reasonable and accept a slightly lower profit during the downturn * Drive costs down - but don’t throw the baby out with the bathwater BUSINESS THEMES, Business Strategy, Leisure, Travel & Tourism, Marketing, Operations Management, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-19T09:47:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/buss4-winning-insights-into-recession-strategy-from-annual-reports/ http://www.tutor2u.net/blog/index.php/business-studies/comments/buss4-winning-insights-into-recession-strategy-from-annual-reports/#When:10:53:00Z Newspaper articles are ok, but you can’t beat the annual reports of larger companies to get some more detailed, useful insights into the effects of the recession on UK firms and their strategic response. BUSINESS THEMES, Business Strategy, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-18T10:53:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/a-ceos-take-on-the-effect-of-the-recession-on-uk-restaurants/ http://www.tutor2u.net/blog/index.php/business-studies/comments/a-ceos-take-on-the-effect-of-the-recession-on-uk-restaurants/#When:09:56:01Z The Restaurant Group plc operates several hundred mid-market restaurants in the UK, trading under familiar names such as Frankie & Benny’s, Chiquito and Garfunkels.  I came across a really useful piece of research evidence whilst looking through their Annual Report and Trading Statement for 2008 in which the CEO of the business outlines the potential effects of the UK recession on strategy - and how the recession is viewed as a net positive for the business!  BUSINESS THEMES, Business Strategy, Leisure, Travel & Tourism, Retailing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-18T09:56:01-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/marketing-strategy-in-a-recession-attack-better-than-defence/ http://www.tutor2u.net/blog/index.php/business-studies/comments/marketing-strategy-in-a-recession-attack-better-than-defence/#When:15:30:00Z The classic strategic marketing response to a recession is to cut the marketing budget.  But is this the best action for a firm looking to address the threats and exploit the opportunities in a downturn? In what circumstances might it be appropriate for a firm to increase marketing spending in the face of worsening market conditions and falling sales? BUSINESS THEMES, Business Strategy, Marketing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-17T15:30:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/advertising-in-the-recession-perfect-storm-or-perfect-opportunity/ http://www.tutor2u.net/blog/index.php/business-studies/comments/advertising-in-the-recession-perfect-storm-or-perfect-opportunity/#When:12:07:00Z 2010 looks like it might be the year when the UK advertising industry emerges from its worst slump since detailed records were started in 1982.  According to the Advertising Association, total advertising spend in the UK is expected to increase by 2.8% in the third quarter of 2010, the first increase since the start of 2008.  The recession in the UK has been particularly painful for businesses that rely on advertising income.  For those businesses that see the decline in advertising rates and costs as an opportunity to get better value for money and build their customer base, the recession couldn’t have come at a better time! Hence, the strategic implication of the advertising slump as either a “perfect storm or perfect opportunity” as mentioned in the AA announcement. BUSINESS THEMES, Business Strategy, Marketing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-17T12:07:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/branded-coffee-shops-prove-resilient-to-the-uk-recession/ http://www.tutor2u.net/blog/index.php/business-studies/comments/branded-coffee-shops-prove-resilient-to-the-uk-recession/#When:10:55:00Z A very useful article in the Feb 2010 edition of Cafe Culture (the trade magazine for the cafe industry) has explained what a winning strategy has been in the UK coffee shop market during the recession. BUSINESS THEMES, Business Strategy, Marketing, Retailing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-17T10:55:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/is-the-cost-conscious-uk-consumer-here-to-stay/ http://www.tutor2u.net/blog/index.php/business-studies/comments/is-the-cost-conscious-uk-consumer-here-to-stay/#When:23:24:00Z One of the attractions of researching the UK retail industry is that is rarely a shortage of useful data which can help to spot trends and issues.  Take the amount that UK consumers spend on eating out… BUSINESS THEMES, Business Strategy, Leisure, Travel & Tourism, Retailing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-16T23:24:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/recession-buster-dominos-on-the-march/ http://www.tutor2u.net/blog/index.php/business-studies/comments/recession-buster-dominos-on-the-march/#When:17:32:00Z Students looking for a suitable strategy case study to research how a business can take advantage of the opportunities presented by the recent recession in the UK would do well to spend some time looking at Dominos UK. BUSINESS THEMES, Business Strategy, E-Business & E-Commerce, Marketing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-16T17:32:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/managing-a-recruitment-business-through-the-recession/ http://www.tutor2u.net/blog/index.php/business-studies/comments/managing-a-recruitment-business-through-the-recession/#When:16:34:00Z The recruitment sector has taken many hard knocks during the recent recession in the UK.  As firms look to reduce their headcount (or at least minimise their payroll costs), their demand for recruitment agency services is bound to fall. BUSINESS THEMES, Business Strategy, Credit Crunch, Human Resource Management, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-16T16:34:00-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/can-greggs-become-the-skoda-of-pies/ http://www.tutor2u.net/blog/index.php/business-studies/comments/can-greggs-become-the-skoda-of-pies/#When:10:57:01Z This is a great article for Business students.  The Times describes how bakers chain Greggs (which has prospered during the UK recession) is trying to reposition its brand as the UK comes out of recession.  BUSINESS THEMES, Business Strategy, Marketing, Retailing, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-16T10:57:01-06:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategic-reaction-to-the-uk-recession-notes-and-observations/ http://www.tutor2u.net/blog/index.php/business-studies/comments/strategic-reaction-to-the-uk-recession-notes-and-observations/#When:19:00:00Z Looking back through the archive of special features in the FT during 2009, I’m struck by the excellent depth of insights into the effects of, and reaction to the recession from a strategic perspective.  I’ve jotted down some notes from several articles and I’ll add them here as I read through the articles… BUSINESS THEMES, Business Strategy, BUSS4 RESEARCH, Recent UK Recession (June 2010) 2010-02-09T19:00:00-06:00