http://www.tutor2u.net/blog/index.php/business-studies/ en tutor2u.net Copyright 2012 2012-02-10T20:38:17+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/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/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/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/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/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/tough-decisions http://www.tutor2u.net/blog/index.php/business-studies/comments/tough-decisions#When:20:44:02Z Here is a gem of an interview with Howard Schultz, CEO of Starbucks. In this short (3 minute) clip he discusses the difficult decisions he had to make about the business when he returned as CEO, including closing stores and making staff redundant. One of the success stories of the 1990s, Starbucks had grown too big and lacked clear focus. Excellent material to generate discussion on leadership, management, motivation, marketing, strategy, retrenchment and more. BUSINESS THEMES, Business Strategy, Leadership & Culture, TEACHING BUSINESS, Video Case Studies, 2012-01-29T20:44:02+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/schultz-on-leadership-love-and-the-competitive-advantage-of-culture http://www.tutor2u.net/blog/index.php/business-studies/comments/schultz-on-leadership-love-and-the-competitive-advantage-of-culture#When:19:00:24Z We know that the BUSS4 is a big fan of the Apple and Steve Jobs - and with good reason. As our BUSS4 Topic Tracker indicates, a previous essay question (Jan 2010) used the example of Steve Jobs to ask students to evaluate how easy it is for a Chief Executive to change a struggling business into a more successful one. Steve Jobs shares much in common with another well-known entrepreneur and CEO - Howard Schultz (Starbucks). Both men founded, left and then returned to lead a turnaround of their respective businesses.  Both have taken on the challenge of taking a business idea through rapid growth and then also manage a global brand in a much more uncertain external environment. Might Howard Schultz feature in a future AQA BUSS4 essay choice? Its certainly possible and this article from Ernst & Young ought to be essential reading for any A2 business student who wants to build their understanding of Schultz and his leadership style and business strategy for Starbucks. BUSS4 RESEARCH, BUSS4 2011 - CSR, BUSINESS THEMES, Business Ethics & CSR, Business Strategy, Globalisation, Leadership & Culture, Retailing, EXAM BOARD SUPPORT, AS & A2 Business, AQA BUSS4, 2012-01-29T19:00:24+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/strategic-choice-what-should-apple-do-for-its-investors http://www.tutor2u.net/blog/index.php/business-studies/comments/strategic-choice-what-should-apple-do-for-its-investors#When:09:52:58Z This graphic says it all.  Just look at the astonishing growth in quarterly profits achieved by Apple in recent years, culminating in a staggering result for the final quarter of 2011 which surpassed even the most optimistic forecasts of investment analysts.  A key point for students to consider from this growth in profits is that Apple has followed a policy of retaining profits rather than returning them to shareholders as dividends (or share buy backs).  In Apple’s case, profits have turned into huge cash balances - now almost $100billion. To put this into perspective, in the last three months of 2011, Apple’s cash balances were increasing by $1 billion per week!  So, what should Apple do with the cash? BUSINESS THEMES, Business Strategy, Finance & Accounting, 2012-01-29T09:52:58+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/technological-change-kodaks-big-strategic-mistake http://www.tutor2u.net/blog/index.php/business-studies/comments/technological-change-kodaks-big-strategic-mistake#When:15:33:30Z I highly recommend that A2 business students read Tom White’s excellent blog about the demise of Kodak.  I came across a couple of useful video clips which help explain the strategic mistakes made by Kodak and also suggest that the corporate culture at Kodak was a significant part in the failure of the business to adapt and change. BUSINESS THEMES, Business & Technology, Business Strategy, Leadership & Culture, 2012-01-28T15:33:30+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/growth-strategy-starbucks-eyes-the-franchise-model http://www.tutor2u.net/blog/index.php/business-studies/comments/growth-strategy-starbucks-eyes-the-franchise-model#When:08:02:03Z As of 1 January 2012 there are 17,244 Starbucks outlets around the world.  Not one of them is operated as a franchise - until now.  Starbucks has announced that it is looking to the franchise model as part of its organic growth strategy, with the first franchise store likely to be opened in London later in 2012. BUSINESS THEMES, Business Strategy, Globalisation, Marketing, Retailing, 2012-01-28T08:02:03+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/more-perspectives-on-our-changing-shopping-habits http://www.tutor2u.net/blog/index.php/business-studies/comments/more-perspectives-on-our-changing-shopping-habits#When:10:56:52Z There have been plenty of recent blogs on the problems faced by struggling firms on the UK “High Street”.  You’re all encouraged to think through these problems, perhaps using a framework like PEST analysis. This blog adds a couple more perspectives, from recent articles in The Guardian and The Economist that paint a pretty grim future for the High Street - at least in its current form.  All is not well for the out-of-town grocery chains either. BUSINESS THEMES, Business & Technology, Business Strategy, Change Management, Customer Service, Economic Environment, Marketing, Retailing, 2012-01-26T10:56:52+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/still-more-praise-for-the-john-lewis-model http://www.tutor2u.net/blog/index.php/business-studies/comments/still-more-praise-for-the-john-lewis-model#When:11:45:36Z You’re probably aware that the John Lewis department stores and Waitrose supermarket chain are doing very well at the moment, with sales figures rising strongly whilst retailers elsewhere are struggling. Several commentators have been keen to go beyond the marketing factors behind their success, instead paying closer attention to the firm’s unusual model of ownership and control. BUSINESS THEMES, Aims and Objectives, Business Ethics & CSR, Business Organisation, Business Strategy, Leadership & Culture, 2012-01-17T11:45:36+00:00 http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-lessons-from-the-tesco-downfall http://www.tutor2u.net/blog/index.php/business-studies/comments/strategy-lessons-from-the-tesco-downfall#When:12:49:42Z A highlight for me and many business teachers was the superb presentation given at the Business Teacher National Conference 2011 by Sir Terry Leahy who, just weeks earlier, had retired as CEO of Tesco leaving behind a stunning record of profitable growth. Who would have thought that less than a year later, the shares of Tesco would fall by 16% in just one day (nicknamed “Tesco Thursday”) wiping £5bn off the value of Tesco shares.  The sudden downturn in Tesco’s fortunes will be a rich source of business lesson material for months, perhaps years to come. BUSINESS THEMES, Business Strategy, Marketing, Human Resource Management, Operations Management, Retailing, 2012-01-15T12:49:42+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