A-Level Business Management

I'm starting to look at industrial relations with my Year 12 sets, and this is a lovely example of how trade unions can play a vital role in the running of successful business organisations, although I'm equally sure that the management of its Coventry warehouse might not see it that way. 

You might think about why it might be that the workers are so keen to unionise and the implications of this for the firm.

An insight into an form of marketing, in this history of supermarket discounts, and customer loyalty, starting with Green Shield stamps and ending with the current strategy of offering loyal customers discounts on their shopping. 

However, the supermarkets are canny - in offering these discounts they are better able to track the shopping habits of their customers. 

Nils Pratley with his take on the mooted plans for John Lewis: he suggests that concerns about the change are probably overblown, but that, then again, so are the prospective upsides. He argues that there are probably very few investors willing to take a passive role in supporting the business, and calls on the retailer to refocus on what it does well. Why has it struggled in the recent past whereas other retailers, almost without exception, have done well?

And here's an assessment of the organisational culture of the John Lewis Partnership, with the editor of Retail Gazette identifying it as the key feature of the organisation's identity, and arguing that diluting this is going to have an adverse effect on both productivity and, potentially, revenues.

As she notes, the founder's aim was "not to maximise profits but to generate “sufficient” profit for its purpose" and anything that deviates from that runs the risk of destroying the brand. 

The John Lewis Partnership is thinking of changing its much vaunted staff-ownership model. The potential plan, apparently the brainchild of the Chair, Dame Sharon White, is to seek funding for a majority stake to invest in data analysis and Waitrose's supply chain. 

It's not guaranteed to take place but the firm are looking for £2bn, although ditching 70 years of history, and the brand image associated with it, might have adverse effects for the business too. You never know perhaps reducing executive pay over the preceding 20 years might have helped...

There's quite an easy answer to this - income elasticity of demand, for economists - but for Business Management students, the underlying issues are perhaps more interesting.

This is worth a read. 

Another lovely example of product development - and an application of the Ansoff Matrix, as Starbucks have launched a new range of products, olive oil infused coffees, initially in the Italian market. 

Starbucks only has 20 stores in Italy, an economy with a cafe culture based on independent, family-owned cafes, and has found it difficult to establish itself.  

Some interesting Business Management material here, with sandwich chain, Subway looking to sell the business. You might start by asking pupils what type of business it is? I doubt many will know that it's a family business. 

Thereafter, you might think about the reasons for looking to sell the business - yes, costs are higher but is it a classic case of the owners looking for an out before the product life cycle starts to take effect. I wonder if, unlike classic fast food options, like McDonalds, Subway's products and brand isn't strong enough to become an enduring feature of the market. 

For those of us of a certain age, the name Spud-u-like, might spring to mind. 

A lovely example of the importance of marketing in getting a product flying off the shelf, the apparent rise in popularity of tinned fish can be attributed to many things, not least skilful marketing strategies - and you might use the 4Ps to analyse this as well as thinking about how social media has amplified this trend. 

However, I would also add that there are other factors in play - the changing macroeconomic environment and, perhaps, the fact that more 'exotic' forms of tinned fish have been a discount store - i.e. Lidl and Aldi - staple and their popularity might have been picked up on by more upmarket retailers. 

A nice bit of hijacking corporate marketing with a group of subvertisers putting up 400 alternative marketing campaigns, calling into question the environmental credentials of Toyota and BMW and highlighting the environmental costs of their SUVs. 

Brompton have shortened their supply chain in the wake of increasing tension between China and Taiwan, This is a complex operation, but they are trying to encourage existing suppliers to use production facilities in other locations, and further complicated by the fact that China is the world's largest market for the folding bike company. 

This is just an interesting clip for Business Management students: it costs $1million per day to run Royal Caribbean's Symphony of the Sea, a boat with 6,000 passengers per week, with a crew of 2,400 staff. 

How is this achieved? It's the relentless pursuit of efficiency, with 30,000 meals produced every day in small kitchen, all waste disposed of, and the ship kept afloat.  

It's a fascinating illustration of everything from ship design and touches on all elements of Business Management. 

Globalisation has seen brands look to expand into fast growing markets and in this case it's Pret A Manger that's decided to enter the Indian market. Such moves are both interesting and risky, although in this case Pret has partnered with a branch of Reliance Industries, owned by India's richest man, Mukesh Ambani, so they should be well-placed to adapt to the Indian market and share the risk; it's Reliance's first move into food and beverage retail.

I leave this here - a number of my Business Management set have written internal assessment pieces about the supermarket sector, and we've had a look at the performance of Morrisons in the wake of its takeover. 

I'm not going to go into too much detail my summary of the article, for fear of spoiling it - however, if you read it, are you thinking that this is a  successful business or one whose position is becoming increasingly precarious. 

Another Business Management story today with the news that Starbucks founder, Howard Schulz, is standing down as the company CEO, a role he's filled on three occasions.

IN this case, it seems that the Starbuck's boss is going to face scrutiny of the company's working practices, not least its industrial relations and the seemingly antagonistic position that it's adopted in relation to trade unions. It raises one or two questions about corporate ethics...

A detailed analysis in the Guardian of the current state of play regarding John Lewis, with the prevailing view seemingly that the company, like many, faces challenging times but different views about how to tackle this. 

For many analysts, it seems that the group have rather lost sight of its core business and the move to end staff ownership might damage both staff morale, the brand and remove its USP. However, it's clear that it's in a bind - however, the notion that the company wants to "expand into financial services and build to rent above Waitrose stores", strikes me as singularly unimaginative and redolent of a business in decline. 

Watch this space - and see how this story is going to unfold in the months ahead.

An interesting story about offshoring and the implications of this for the Toblerone brand, as they are no longer able to use the Matterhorn image on its packaging.

Mondelez are going to start producing the iconic chocolate in Slovakia, but in doing so they are unable to advertise its "Swissness". Will it affect the popularity of the brand though?

Just the very best sort of article for Business Management students, with the Guardian looking at the fate of Morrisons since it was taken over by the giant US private equity firm Clayton, Dubilier & Rice (CD&R) for £7bn.

It looks at a range of issues: the marketing mix, brand perception, the way in which the deal was originally financed and the implications of all of this for Morrison's performance, perhaps most obviously in relation to its declining market share.

Or course, the counter-factual is that the company could have gone in this direction irrespective of its new owners, but it's a fascinating look at how organisational cultures can collide. 

A lovely Business Management Monday morning starter for 10, with the news that BrewDog are entering the Chinese market, having partnered with Budweiser China. Classic application of the Ansoff Matrix by 8 o'clock, anyone?

It's also interesting to note that this isn't being universally approved of - not least in the present geopolitical environment - and others are pointing the incongruity of supposed 'punk' BrewDog partnering with Budweiser. 

Espionage in the market for courier services with firm DX Group having been accused by a rival, Tuffnells Parcel Express accusing it of having offered bribes to gain access to confidential corporate data.

Is this sort of behaviour ethical? Will it have any effect upon the brand or reputation of DX Group? I'm not sure that it will have much of an effect in a much maligned sector. 

This could go on lots of boards - but I've put it here, in that it's a nice case study of a well-established brand having to manage change in a sensitive fashion. Given the global nature of McDonalds, and the ethical implications of job cuts, it's a CUEGIS dream.

How do you survive on the High Street in the current business environment? This BBC article looks at Flannels, Monsoon and Mark & Spencer, all of which are still opening new stores. 

It's an interesting read, and highlights how every store needs to find its own value proposition in order to survive.