The Times 100 Business Case Study News

Marketing plans

Gordon Wilson - gordon@mb-a.biz — Tue, 16 Mar 2010 00:00:00 GMT

When NIVEA re-launched its NIVEA FOR MEN range in 2008, it used a marketing plan to set out the marketing activities to be carried out in order to reach its aims and objectives. Marketing plans form part of organisations' overall business plans. They normally cover a period of one to five years and can include SWOT analysis, objectives, the marketing strategy, sales forecasts, budgets and criteria for evaluation of the outcomes. As part of the re-launch of NIVEA FOR MEN both above and below-the-line promotion was used to help meet the objectives of increasing its share of the existing market and to expand the market for men's skincare products.

Other marketing objectives, which could be set in a marketing plan, may be to increase sales and develop brand image. Perhaps these are the reasons why Fred Perry, the clothing company, has invited Amy Winehouse to design four new collections for it. The first of these, a 17 piece women's wear line, will be released this autumn. Winehouse is not the first musician to work with the fashion brand. Paul Weller and Damon Albarn have also designed for the company. It is hoped that Winehouse will bring her 'edgy' style to the brand whilst staying true to its heritage. Organisations have long used celebrity endorsement to promote their products. It is becoming more popular to actually involve these celebrities in the design stage of the products they are endorsing. Bringing Amy Winehouse on board may help Fred Perry meet a number of marketing objectives. Although associating the company with a personality like Winehouse might be considered to be a risk, it cannot be denied that she is high profile. As she is expected to release a new album this year her profile is likely to increase even further. (The Times 12th March 2010)

Questions

Define above-the-line and below-the-line promotion.
Using the NIVEA FOR MEN case study, show how the marketing plan fits with the overall business plan.
Analyse how an effective business plan can contribute to the success of a fashion label like Fred Perry.

Answers to questions

Define above-the-line and below-the-line promotion Ã¢ï¿½Â¢ Above-the-line promotion involves direct expenditure on advertising through consumer media such as TV, radio and newspapers, Below-the-line promotion involves indirect expenditure on promotion such as free gifts, point-of-sale displays, public relations
Using the NIVEA FOR MEN case study, show how the marketing plan fits with the overall business plan a. Business aims and objectives are written b. Overall business plan drawn up c. Data is gathered d. Marketing plans are drawn up, along with operations and financial plans
Analyse how an effective marketing plan can contribute to the success of a fashion label like Fred Perry On one hand: Marketing plans encourage the use of forward thinking by managers, Marketing plans should provide direction and ensure the organisation is working towards achieving its aims and objectives, Market research will be carried out in order to develop the marketing plan. However: Fashion changes rapidly, so marketing plans may become redundant quickly, Sticking rigidly to a plan may stifle creativity It depends on: How flexible the plans are, How accurately the research is that the plans are based on, How realistic the plans are

PEST Analysis

Gordon Wilson - gordon@mb-a.biz — Mon, 08 Mar 2010 00:00:00 GMT

External factors are those which affect a business but are outside its control. The acronym PEST, which stands for Political, Economic, Social and Technological influences, can be used to summarise these external factors. UNISON, Britainâ��s largest public sector trade union, uses PEST analysis to understand the needs of its members and to aid decision making. An example of where it is using PEST analysis to good effect is with the Migrant Workers Participation Project which concentrates on employees who have moved to the UK from overseas. As part of its political analysis for example, UNISON must stay abreast of any legislation changes affecting migrant workers. It will lobby the government where it feels that the law need to be amended to better meet the needs of its members.

External factors affect entire industries as well as individual workers. By assessing the external factors affecting businesses, decisions can be made about how to respond. Bingo halls have suffered in the last few years due to a number of influences that were outside their control. The smoking ban, which commenced in 2007, impacted on the number of people wishing to socialise away from their own homes. Tougher regulations introduced by the government also contributed to a decline in the Bingo sector. To respond to these influences, Mecca is relying on the increased trend towards younger people playing bingo. It is attempting to attract younger customers by introducing a number of innovations such as Binglo, its after-dark version of the game. Bingo halls are being given a more modern look with bars, amusement machines and wall-mounted televisions. In Meccaâ��s case initial results look promising. Rank, which owns Mecca, has reported that the new format is attracting more customers and it has plans to convert about 50 more of its sites. (The Sunday Times 28th February 2010)

Questions

What does PEST stand for?
Using the case study, explain the technological factors that have affected migrant workers in the UK over the past few years.
Using the article, analyse the external factors that have recently affected bingo providers.

Answers to questions

What does PEST stand for? Political, economic, social, technological
Using the case study, explain the technological factors that have affected migrant workers in the UK over the past few years, Increased automation in factories,The internet, Increased availability and reduced cost of transport, Advances in online money transfers, Improvements in telecommunications
Analyse the external factors that have recently affected bingo providers, Political â�� the smoking ban and changed regulations on amusement machines, Economic â�� high unemployment and uncertainty may put people off going to bingo, Social â�� the trend for younger customers at bingo, Technological â�� innovations in the amusement industry e.g. virtual snail racing

Ethically serving stakeholders

Gordon Wilson - gordon@mb-a.biz — Tue, 02 Mar 2010 00:00:00 GMT

We hear the term ethical behaviour but what does it mean exactly? The Co-operative Group has members rather than shareholders who determine the ethical direction of the business. For example, it has an ethical food policy which has resulted in such things as reformulating its own brand products to reduce salt, sugar and saturated fat which is better for health reasons. It supports projects such as the Street Games charity which promotes sport to disadvantaged children and therefore giving them a chance to get involved in opportunities they would not have otherwise had. Members of a business influence the decisions that are made by managers in the organisation, and make sure they are underpinned by the core values - equity, self-responsibility and democracy. By adopting policies which ensure the business is doing the right thing both with its internal and external stakeholders, The Co-operative is a sustainable organisation with a distinct competitive advantage.

Many other organisations have also benefited from behaving in an ethical manner. One of these is the Malilangwe Wildlife Reserve in Zimbabwe. Despite its chequered history, tourism in Zimbabwe is growing. Tourists can stay on the Pamushana Lodge which overlooks the 40,500 hectare wildlife reserve. The reserve is owned and run by the Malilangwe Trust which reinvests its profits into conservation in the area. As a result, its Rhino population has increased and roan antelope were reintroduced. The camp works closely with local communities. It supports projects which benefit over 10,000 people in surrounding villages. These projects include education programmes, a health clinic and the provision of porridge to 25,000 under-8s â��-the only meal that many of them will receive each day.

Thanks to the relationship it has developed with the local communities, the wildlife reserve has been generally left alone by poachers; a problem that blights many other wildlife reserves. This has had the knock-on effect of it being able to provide the kind of safari experience that attracts more and more visitors, showing that the costs of ethical behaviour can be far outweighed by the benefits. (The Times 27th February 2010)

Questions

Define the term 'business ethics.'
Give examples of ethical issues.
Analyse the costs and benefits of behaving ethically.
Devise a questionnaire for your peers to find out their views of different ethical considerations, then use your findings to make recommendations to an organisation of your choice.

Answers to questions

Define the term 'business ethics'. Business ethics is concerned with whether the decisions made by organisations are morally right or wrong.
Give examples of ethical issues Examples could include: Should products sold be Fairtrade? Should child labour be used? Is it acceptable to use bribery to secure a contract? Should cosmetics/medicines be tested on animals? Should organisations donate money to charity? Is it acceptable for employers to spy on their workers?
Analyse the costs and benefits of behaving ethically Benefits: Gains competitive advantage, Can attract more customers, May attract workers, Can encourage investment, Can improve the organisationâ��s reputation, May prevent undesirable pressure group action and media coverage Costs: Ethical behaviour may restrict some business practices, Costs of labour, raw materials and finished products may be higher.
Devise a questionnaire for your peers to find out their views of different ethical considerations, then use your findings to make recommendations to an organisation of your choice.

Motivation applies to the workplace

Gordon Wilson - gordon@mb-a.biz — Tue, 23 Feb 2010 00:00:00 GMT

Why do some people climb Mount Everest, sail single-handedly round the world or bungee jump off tall buildings? Theories of motivation also apply to the workplace. Individuals are motivated to carry out such feats by any number of different reasons. Organisations, like the engineering group Siemens, attempt to tap into the different factors that motivate individuals when building a workforce of effective and efficient employees. Within the creative working environment at Siemens, employees are often motivated by the very nature of the challenging work they undertake, the opportunities to progress within the business and by gaining management recognition for their achievements at work. Motivation in the workplace, therefore, goes far beyond the simple matter of pay.

For Olympic athletes, the workplace may be a swimming pool or an athletics track. For Amy Williams, last week it was the Whistler Sliding Centre track. Williams achieved the first British gold medal in the skeleton event at the Vancouver Winter Olympics. She said 'if you have the determination any country can be good at any sport and you just have to concentrate and do your best.' Sports people take part in the Olympics not for pay but for the thrill of beating the other competitors, the recognition gained when winning medals or the personal drive to keep achieving greater and greater results. (The Times Online 20th February 2010)

Motivated individuals can achieve great things. Motivated workers are likely to be productive and provide high quality goods or services. They should also feel happy and fulfilled in the workplace, reducing absenteeism and labour turnover. The challenge for employers is to ensure they provide the appropriate motivators for their own employees.

Questions

Define motivation
Draw Maslowâ��s Hierarchy of Needs showing how Siemens might meet each of the needs.
To what extent should organisations concentrate on meeting the higher order needs of their employees?

Answers to questions

Define motivation Attracting a person to do something because he or she wants to do it.
Draw Maslowâ��s Hierarchy of Needs showing how Siemens might meet each of the needs, Basic - pay, Safety - provide and safe working environment , Social - team-working opportunities, Esteem - management recognition, Self-actualisation - opportunities to progress
To what extent should organisations concentrate on meeting the higher order needs of their employees? On one hand, organisation should concentrate on meeting higher order needs because: According to Maslow, once the lower order needs are met they are no longer motivators, Creative, skilled workers are likely to be more motivated by higher order needs. However, on the other hand organisations may need to concentrate on lower order needs if: According to Maslow, lower order needs must be met first before higher order needs become motivators, The lower order needs of pay and working conditions are examples of Herzberg's 'hygiene factors' and can therefore cause dissatisfaction if they are not what the workers expect, Younger or unskilled workers may be more motivated by lower order needs.

The business cycle

Gordon Wilson - gordon@mb-a.biz — Tue, 16 Feb 2010 00:00:00 GMT

Activity within the economy fluctuates over time. This is called the business cycle. The Davis Service Group provides textile maintenance, hotel laundry and washroom services in the UK and Europe. Just like any other business, it is affected by the changes in the business cycle - from boom to recession and back again. Throughout the business cycle it has to respond to the economic challenges it faces. For example, people have cut back on holidays, so the need for hotel linen services has reduced. Davis has however, enjoyed rapid growth in emerging markets, such as the Czech Republic, which are at different stages of the business cycle. By balancing resources to meet customers' needs, Davis Service Group has been able to invest in the business where necessary to be ready for recovery.

Like hotels, the magazine publishing industry was expecting a decline in subscribers during recent difficult economic times because this is a 'nice to have' item rather than a necessity.

However, in the second half of last year, Private Eye saw its highest circulation figures for almost two decades, despite the recession. Private Eye is a satirical magazine. Its editor, Ian Hislop, is a team captain on the current affairs quiz Have I Got News for You. In fact, it seems that the magazine industry has fared quite well overall. Men's Health, Reveal and Heat magazines all saw increases in circulation. The popularity of these magazines may well be attributed to the fact that they are a fairly inexpensive way of entertaining us. The challenge for the magazine industry , like Davis, is to provide what customers want. (Times Online 11th February 2010)

Questions

Draw and label the business cycle.
Using the case study, explain the characteristics of the different stages of the business cycle.
Give examples of businesses that might be able to benefit from the recession
Analyse the strategies that organisations, like the Davis Service Group, can adopt during times of recession.

Answers to questions

Draw and label the business cycle A diagram of the business cycle can be found at: http://www.thetimes100.co.uk/case-study--managing-firms-throughout-business-cycle--111-360-2.php
Using the case study, explain the characteristics of the different stages of the business cycle. Recession â�� low demand for goods and services, unemployment increases, investment in new plant and equipment falls, businesses close down Recovery â�� individuals and firms have more money to spend so demand starts to increase, businesses may still be cautious about taking on new staff or increasing investments Boom â�� confidence rises, sales of goods and services are high, unemployment falls so business may find it difficult to recruit, inflation may increase i.e. prices rise rapidly
Give examples of businesses that might be able to benefit from the recession Examples may include: Shoe repairers - people repair rather than buy new ones, DIY stores â�� home improvement is a cheaper alternative to buying a new home, Pound stores â�� people cut back on spending
Analyse the strategies that organisations, like the Davis Service Group, can adopt during times of recession Strategies may include: Cutting unnecessary costs e.g. finding cheaper suppliers, introducing flexible working, Enter markets in other countries that are not experiencing recession, Stimulate demand by cutting prices or introducing special offers, Reduce excess capacity by selling assets or reducing overtime, Delay investment plans â�� although Davis has maintained a strong financial position which has allowed it to borrow money to finance some of its activities

The importance of effective communication

Gordon Wilson - gordon@mb-a.biz — Tue, 09 Feb 2010 00:00:00 GMT

For a business to run well, effective communication is necessary. Messages must be passed to the right people, at the right time and using the right method. The Building Societies Association (BSA) is the trade association for all the UKâ��s building societies. Building societies communicate with different groups: its members (customers), local communities, employees and potential customers. The individual needs of these stakeholders will dictate the communication medium that the building societies use to transmit their messages. For example, TV advertising may attract new customers whereas letters are often used to pass information to existing customers.

Barriers can hinder effective communication. These barriers may include technical breakdowns, unclear messages and poor timing. The BSA and its members aim to diminish the problems caused by barriers to communication by using the most appropriate channels and formats and ensuring messages are written in clear English with little use of jargon.

For multinational organisations, language can be a barrier to effective communication. When the head office is in one country, but customers and employees are in other countries, the ability to communicate in a number of languages may be necessary. Google is currently developing phone software that may help to eliminate some of these language barriers. Through the use of voice recognition and automatic translation, Google is hoping to create a phone that is capable of translating foreign languages instantaneously. It already has an automatic system for text translation which currently covers 52 languages, and is hoping to have the first basic phone translator ready within the next couple of years. Slang and strong accents may prove to be significant hurdles to the introduction of live translation, however, the Head of Googleâ��s translation services says it is using 'a combination of high-accuracy machine translation and high-accuracy voice recognition'. (The Sunday Times 7th February 2010)

Questions

List different barriers to communication.
Explain what is meant by 'formal communication'.
Using the BSA case study, draw and explain the most appropriate communication network for passing information very quickly throughout an organisation.
Analyse the ways that multinational organisations could benefit from Googleâ��s new phone translator.
How could the translator benefit building societies' customers?

Answers to questions

List different barriers to communication Wrong format, Technical breakdown,Receiver unable to understand message, Attitudes towards sender,Wrong channel, No feedback, Poor timing, Use of jargon, Unclear message, Wrong target
Explain what is meant by â��formal communication' Formal communications are those made in a set format, recognised by the organisation, where records are usually kept.
Using the BSA case study, draw and explain the most appropriate communication network for passing information very quickly throughout an organisation Probably the most appropriate is the Y-network which is often faster than a chain network. In a Y-network, messages are passed at the same time through two different channels which then pass on the information outwards.
Analyse the ways that multinational organisations could benefit from Google's new phone translator Employees in different countries could converse with each other, Firms can communication immediately with both suppliers and employees who use different languages, Communication will be much quicker as there is no need to wait for translation to be carried out, Less need to employ translators so firms may be able to reduce their costs
5. How could the translator benefit building societies' customers? Help customers whose first language is not English.