Chapter 8 Mindmap

Barker Ltd - Recommendation

Overall the farm seems to be in a weak state. Two main options: to sell and moving into the crisp market. There are many factors that success depends on such as the finance will be raised favoringly whether or not, maybe other family members who agree to sell the farm refuse to put money into the business. The reliability of Romily's business plan is also an important factor, if the market research she took was not accurate, it may lead the business into a very risky and dangerous situation, and the changes in customers' tastes in the future are difficult to predict.

My recommendation is that the movement into the crisp production is advisable. As I mentioned the above, the advantages of the movement is more virtual than the disadvantages. There's a vary weak financial position, so I suggest that not only Romily, but other family members should put their own money as the finance support the business of crisp production. Depite the probability of success of moving to crisp production is 70% (shows from the dicision tree), however, this is a long-term plan and it still seems to be risky if there's lack of finance, shortage of cash and economic recession. Aslo, the alternaive cost -- selling the farm by 1.4 million pounds is quite attractive, that means some family members will strongly disagree the movement into crisp production , and they may casuse troubles which make the dicision to take too long time. Anyway, moving into crisp production seems more likely to be worthwhile if Romily is able manage the business more efficiently, and they can keep the Barker brand name which can motivate the whole members in the business.

Chapter7 Preliminary questions

Q1 Analyse why Tesco has chosen to focus on small, local stores in Japan and the USA rather than on larger stores.

• In Japan, this involved the takeover of an existing chain of japanese stores,Tesco introduced brand-new stores with small-scale. The advantage is this is a way to minimaise its cost, also, the return on capital employed should be high because the high profit but low capital employed, therefore there are less risks. However, it is difficult for small stores to bring a huge sales revenue and it is hard to attract customers.

Q2 Analyse internal factors that might have influenced Tesco's marketing objectives.

• The key internal factor that might have influenced Tesco's marketing objective might be the corporative objective which is sales growth for the company as a whole. The marketing department must ensure that its marketing objectives are consistent with the corporate objective of the business. Also, the popularity of the products is an important factor. To Increase the sales growth, Tesco set objective which is to be strong in non-food as in food.

Q3 Examine factors that might cause Tesco to change its marketing objectives suddenly, such as its decision to enter the US market.

• The key factor that make Tesco to change its marketing objectives suddenly is it haven't a achieve the targets for 2007/2008. In Asia, the number of stores was short of target by 86 and ub Europe, the number of stores was 69 below the target. Therefore, Tesco opened 53 stores suddenly in the US to reduce the shor of the target. Aslo, thouse additional stores will improve the efficiency of its operations. That means bigger sales growth and increase Tesco's popularity as well as goodwill.

Mindmap: Capter 7 Understanding marketing objectives

Additions:

• Marketing objectives are the specifix, focused targets of the marketing fuction within and organisation.
  
  
• Marketing pbjectives are not static. They chanes as a business develops. Ther also change in response to both interal and external circumstancs.

Rotating baby stroller with eco-creds

Priced at USD 900, the Orbit Baby Infant System includes infant car seat, base and rotating stroller that work together in modular fashion. The foldable stroller—priced separately at USD 485—features 360 degree rotation that allows the child to face forward, back or even sideways. An exclusive twist-and-lift mechanism permits one-handed folding, while a patent-pending, removable Cargo Pod makes getting to all of baby's stuff a breeze. The stroller is compatible not just with Orbit Baby's infant car seat, but also with its bassinet, toddler car seat and toddler stroller seat. Perhaps best of all, Orbit Baby uses micro-fiber upholstery fabric certified by the International Oeko-Tex Association, which limits more than 100 potentially harmful substances and chemicals. Its flame retardants, for example, meet all applicable standards without the use of many of the commonly used—and potentially harmful—chemicals. Its rain shields, similarly, are PVC-free, and its Green Edition foot muffs and car seat upholsterers—coming soon, and made of organic cotton and wool—will feature what the company says is the industry’s first fabric to be naturally flame retardant without any harsh chemicals. Orbit Baby is also working on a product recycling program for when families outgrow its products.

It is a convenient and the design is special which as I said above .So the stroller has all the function that people usually need .It considered all the situation for the babies .And the material for make the stroller is organic cotton and wool which are really comfortable for babies.But there are too many competitors in the market so it must has it own USP so i think features 360 degree rotation that allows the child to face forward, back or even sideways is quite well desgined.And it is very easy to use.

Therefore I think it is a good business idea .I think the products for babies are quite important this one looks really good .

Dragons' Den Foldio pitch

Christian Lane, the youngest ever entrepreneur in the Den battles it out with the infamous Dragons. Actually, I think Theo was right to investment.

I'm interested the folder he designed, if i see the Foldio in the stationary shop, I think i will buy it. Chris Lane required 80,000 pounds, and provide 50% shares to the investor,this is a very satisfied and attractive condition offered of investors. Also, Christiane expect that the turnover will be 450,000, but I can't imagine that the market potential for this product would be significant enough to create a million pounds business opportunity. The expected profit is 225,000 pounds, which is a lot and the cost per folder is very cheap, only 50p, that means, the probability of making huge profit is big! Christian has approached 4 manufactures and the most competitive one is in Mainland China, he knows how to reduce the cost and deal with foreigners, this is very good to his business and this is aslo his predominace to gain the finance from dragons dem.

I found the video to show where he is NOW!

Also, there's his company's website you can visit.

However, he looks very very very successful now. ^^

Farmers use vending machines to sell product

Well, I think this is a good business idea for farmers. Vending machine is always a good tool to earn money, it don't need too much space, this saves owners money and energy because they don't have to spend a lot of time selling products to customers directly.

People see snack vending machines everyday, usually no matter where they go. But they don't see vending machines which sell fresh milk, eggs, butter, cheese, potatoes and sausages. This idea is creative and innovative, customers are usually attracted by that kind of vending machines and psychologically they think those things in vending machines usually cheaper, so there are more reasons to attract people to buy. Another amazing benefit of the vending machine is it works 24 hours a day, this makes the business more competitive because not all the suppermarkets open for 24 hours and they close very early on Sunday. Vending machines really reduce costs, they don't require training, supervision, or motivation, it is very very convinient for farmers. Therefor, the investment of vending machines won't be so expensive, selling those kinds of product must average a very impressive gross profit and the return on capital must be high. Aslo, the important thing is the farmers won't worry the cash-flow problem and bad debts, becasue vending machines only products by cash.

However, people may doub the quality of the food in the vending machine and this is difficult to develop customers loyalty because it is lack of communication between the company and customers

I'M BACK!

OK,,,,

Last week was a terrible sick week for me!! - -

but,,it had all past~~~

I'm back!!,,,and keep my lovely daily blog going on ,,

haha,,^^

Group Exercise

The one of those ten actions about ethical behaviour which i want to discuss is " In order to reduce its production costs, a sportswear business moves production of its trainers to a country that employs child labour."

From the company's point of view, this is an efficient way to reduce the cost, the company will benefit from the increase of profit. However, this is unethical behaviour, it causes negative externalises (external costs), they are costs imposed on society by the company, and government have to pay the costs, which means the company fails to pay for the full cost of its action( employing child labour) and mike private profit at the cost of social welfare.

Employing child labour is not only unethical, but illegal. The company will lose its environmental responsibility by employing child labour because of the bad reputation for damaging the environment. That means it can have adverse effects on employees' perceptions of firm and its products, leading to a demotivate workforce and adversely affecting the ability of the company to attract high quality applicants. Also, there's the pressure group that might impeach the company with employing child labour and it is against the law, maybe the company will be closed down bu the government, this is very bad to the company's overall reputation and performance.

How do ratios affect the business?

1. Liquidity

Liquid capital: is current assets excluding stock.
Liquid capital ratio(Acid test ratio): liquid capital/current liabilities

The liquid capital ratio measures: liquid assets in relation to current liabilities the amount of liquid assets available to pay the debts of the business.

If the acid test ratio is increasing, this could imply that the business will find it easier to pay its debts, but that might have too many resources tied up as current assets or liquid capital. If the ratio is decreasing, this could imply that the business will find it more difficult to pay its debts, but that might have reduced the resource tied up current assets or liquid capital to more efficient level.



2.Gearing

It is fixed-return financing in relation to all sources of finance, the ratio is expressed as a percentage.

Formula: Fixed return financing/All sources of finance

The gearing ratio measures:
how a company if financed
finance on which there is a fixed return compared to all of a company's finance

If the percentage is above 50%, this tells that the company is high-geared, which means it has high amounts of fixed-return financing in relation to all financing, and it is able to pay interest/dividends on the fixed-return financing reasonably easier if the company is doing well in terms of profits. However, the business may have difficult to borrow more, because it already has a relatively high amount of fixed-return finance and it's hard to pay interest/dividends if the profits are low.

If the percentage is below 50%, the company is low geared, so it has low amounts of fixed-return financing in relation to all financing and the business may find easier to borrow additional funds.


3. Debtors collection period: Debtors/sales times 365 days,

this is trade creditors in relation to credit purchases.

Debtors collection period measures how many days on average a credit customer takes to pay.

If it's increasing, that means the debtors are taking longer to pay then previously. There will be a weakness because it could imply that credit control is not being as carefully managed as previously and this could lead to an increase in bad debts. However, if previously credit control was too tight, and the change has resulted in a greater volume of credit sales.

If it's decreasing, that means the credit control is being better managed and this could reduce bad debts. But, if previously credit control is too tight, the change may result in a decline in credit sales.


4. Credit collection period: credit/sales times 365 days,

This measures how many days are taken on average to pay for credit purchases.

If the credit collection period is increasing, this tells you hat a business is taking longer to pay its creditors than previously. The business is exceeding the credit period allowed by suppliers and as a result suppliers may discontinue to offer credit facilities. But the cash flow will be improved.

If it is decreasing, that means the credits control is being better managed and that difficulties with supplies over exceeding credit limits will no longer happen. However, the business is now paying suppliers earlier than necessary, resulting in negative impact on cash flow.

( We have to always remember, if the creditor payment period is shorter than the debtor collection period this will have a negative impact on cash flow)

Dilemma 7 : The liar

Ok, the story is about the white lie.

Zjamel has a boyfriend, called Bernard, and he is having an affair with Ethel ( A married woman). Zjamel asks him:"Are you two having an affair?", Bernard said:" Of course not, darling," and gives her a big kiss. Zjamel's hearer.t picks up, and she feels much better, and in a few months Bernard and Ethel have got bored of the affair and no one ever thinks about the matter again. The questions is: Did Bernard do the right thing?

Well, in my opinion, as much as I hate being lied to, I don’t think today’s society could survive without lies, I totally agree and believe that "lying is a necesary of life." The reason for Bernard lied to Zjamel is that he doesn't want to upset her, even through he dosen't like lying either. Bernard just wants to get over, either he is trying to get past this difficult situation with little hardship to himself, or he is trying to get things to go his way. Maybe he couldn't bare to tell Zjamel about the truth because he knew it would crush them . Maybe you couldn't bare to tell someone you care about the truth because you knew it would crush them (the person telling the lie doesn't have to face the difficult task of hurting the person they care about).

If you are the person on the receiving end of the lie, maybe it’s easy to say, "I’d rather you have told me the truth." The truth of the matter is that the person on the giving end of the lie doesn’t have the constitution to tell you that truth and deal with the consequences of that truth. However, someone close to me or someone I deeply trusted lying to me would really disappoint me. If I can’t trust you, if I can’t believe what you say, how I can I be around you? I don't want myself to be too suspicious. But, how to stop people lying and how can the people who receive lies accept the truth?

solution 7:End Britain Oil Addiction

The problem of oil is being more and more discussed. As a limited resource, oil is now becoming exhausted, and the price of oil is absolutely becomes more and more expensive at this moment. Also, many serious conflicts happen because of the oil dependency, especially in the Middle East. We konw how important the oil is to every single person.

I saw a sentence from the article said:" If you can run onw coutry without oil, you can run the world without oil. If you can do it with cae technologies, it could happen in 15 years." I agree with idea because our technology skills are improved quite a lot and you can't imagine how fast the speed of that imprvement. So, it is very possible to have cars which don't need oil in few years later. That means people don't need to spend so much money on oil, and the cars whithout oil will be sold like hot cakes! That also means a big number of profit! The pollution is also a very bad effect on society, such as global warming, and many people now are tring to figure out the best subtitude of oil, like electric-cars.

The UK is a big industrial coutry, it needs oil every second, it is impossible to stop it using oil, and to reduce the demand of oil must be difficult and it will be a huge cost. Tax may be higher and citizen's welfare may be suffered because the UK government is investing to reducing the demand of oil.

However, it is good to find out the substitudes to replay oil, no one dosen't want to live in a beautiful and green environment. But we should pay the cost of pollution, those troubles we meet while reducing the oil addiction are the cost.

Solution 6:Manage from the bottom up

Good management structure is very important to the business success. Bottom-up management turns the traditional organization model upside down, it challenges the way of management interacting with employees traditionally.

The young and ambitious manager is motivated by power, reponsibility, and prestige, he is able to accomplish his achievements. Accordong to Herzberg's motivation theory, to improve in recognition, responsibility, work itself, achievement and etc these areas will lead to increase in motivation. Bottom-up management is quite suitable for companies at this moment, it invloves job enrichment and job enpowerment, which motivates staff and also increases productivity,

Usually, the employees' direct manager is the one that has huge influence in measuring the performance of employees. I think every employee can provide strengths for the managers to learn and become better in management. Though there are few drawbacks with this approach, in the long run, the “bottom up management” is a better way to improve manager accountability.

For Bottom Up Management, the biggest disadvantage i think is that the manager is not a subscriber and out of ideas. And the biggest advantage is that he has a total understanding of the whole structure of the company. and the manager will always have the respect of the people below, and also he will have a better understanding of the rick factors in running a business.

Also, i think many banks in the UK should start the bottom-up management, especially those having so many troubles at this time.

Report: How Can EF Increase Profit

EF Education First is the world’s largest private education company, with a group of fifteen subsidiaries and non-profit organizations centered around language learning, educational travel, cultural exchange and academic programs. EF has over 29,000 employees, teachers and volunteers, with offices and schools in over 50 countries.

How does this company increase its profit?


Advertising


EF has a definitely perfect website, which introduces us how wonderful the courses they have, how great the teachers they have, how good the facilities they have, how successful the students have and etc.
EF schools are located around the world, the most of student who choose EF school are preparing to study abroad, and the schools are far away from them, so, the website must be a very good channel for them to know EF schools. Therefore, website is very important for EF company, they have to make the website perfect that make viewers deeply the school is really like that.
They put videos, a lot of pictures of students' life and the beatiful scenario outside EF, aslo they have wrote somethinf like guarantee of success, for example, "100% of our successfully graduating students have gained entry into one of our 150 partner universities, or won palces at anotheer top-ranked university" and "The Times recently ranked the UK top 100 universities. Of those universities listed in the top 30, our students have gone on to study at all of them! More than 50% of last year's A-Level Programme graduates had offers from the top 10 universities including Oxford and Cambridge." This kind of information extremely attracts forein students and I think if we put "10 EF students go to Oxford Univercity", we will have 100 more new students this year ! :)



Staff Training


The Agent staff plays a very important role. No different with insurance agent, the EF agent should have quite wonderful salesmanship. Especially they have to perfome very good when parents and students come to ask about the information. Because sometimes they are the only bridge between the parents and the school, their behavior may directly affect the parents' decision.



Cafeteria


Every student must eat (although some of them are on diet ^^), cafeteria beings considerable profits, and the price is getting more and more expensive now, the number of students who buy things in the cafeteria never reduce. Because cafeteria is located in the school, this is also a place where students get together to study or chat. The cafeteria may introduce more sorts of food and drinks, and provide something like daily special to attract more students. They also can hire part-time worker, such as students, becasue they are not highly paid.



Reputation


As i mentioned before, EF is the world’s largest private education company, it has huge popularity and experience. The reason for most of the parants send their children to EF school might be EF's good reputation, and most of the stdents are language students, so they normally don't find out the turth of EF. Although they are disapointed or regret their dicision, they just stay there for several weeks, not like me!

Solution 5: Revive the export economy.

Some people argued that the UK manufacturing has withered in the face of unsustainable housing and credit booms, so Britain will have to go back to producing manufactured goods. Also, there's an idea which is using "economic geography", the study of the processes that make economic activity cluster in particular locations. The British government could develop new industrial sectors to revive its economy and also to spot these innovation hotspots early on and facilitate their growth with an injection of investment.

Obviously, developing new industrial sectors might be a good idea to make a quantitative increase in exports, and it helps to increase trade. The unemployment problem might have been lightened and also the local economy will be improved by the developing of industrial. There are other ways to revive the export economy as well such as to reduce the transaction cost for exporters by doing away with multiple agencies to make the process as seamless as possible, to add the Goods & Services Tax and etc. These plan are seemed to be possible to implement and they will be quite effective.

However, the innovation hotspots also mean a big number of costs, and at this time the UK economy is not that flourish even some people think it is falling into recession. Maybe it is a little bit hard for the British government to supply the financing, and the innovation must be incubated, this is a big goal which needs the government spend a lot of money and time to achieve.

Solution 4: Reduce the national debt

From the article, I have known that the UK national deficit will rise to 14 per cent in 2010-the highest in the Western world. There's a lot of bad affects caused by increasing of the national debt, the interest rates on government bound will rise, which will make long-term inflation. That means those with pensions and saving suffer, unless the Government raises taxes and makes big cuts in public.

Well, first of all, the national debt is also known as government debt, which is money owed by any level of government, otherwise, it is an indirect debt of the taxpayers. National debt plays a very important role in the development of economy and society. The UK government need the money to support its military forces and the development of infrastructure and public facilities. Also, the goverment needs enough number to develop the education career, health care, and welfare fund.

Reducing the national debt will make the government to raise taxes and make a big cut in spending, that means citizen's welfare might be suffered. Anyway, there are other ways to reduce debtors such as reduce the wastings of spending, so it is important for government to manage spending correctly. Reducing national debt may help the UK economy to advoid a long-term inflation and also reduce the risk of recession.

Solution 3: Reinvent business with digital economics

This topic is discussing the how the model for business to change with digital economics. Chris Anderson is a big-idea man, he argued that the near-zero marginal costs of digital distribution have created a new marketplace where free pricing is practically a force of economic gravity, and every industry is either going to have to become free or compete with free in the future.

Well, Internet is a huge advertising medium, you can virtually sit in middle of nowhere and connect with people across the globe, its quite fast and efficient with low cost. It's much cheaper than advertising on tv plus you will be advertising to million even billions of people. So, this is a very easy way of advertising for many companies plus the advertisement could also become interactive making it more interesting. when you purchase a product on Internet its usually cheaper because usually the store selling the product which allows direct contact with the consumer.

However, there are always problems such as items that were sold were often not in stock, even when stock came in there was inadequate warehouse space and insufficient staffing. When goods went to customers they were often sent too late, or were wrong items, were broken on arrival or had vital parts missing,etc. The goods were often returned, but there was no solid system for handling returns.

Anyway, I think this sentence that Chris Anderson said is really good---"The old model for business was 'make something people will pay for'. The new model is something people will want and something they'll pay for." Maybe Internet is a good place for business to change into a new model.

Extra work ! Is it possible to use scientific approach effectively in a subject that deals with human being?

Really difficult question for me, coz i don do economic and socialogy :) but i still have to try !!

Economics is the study of man and his activities in relation to his environment. The study of ends and scarce means which studies alternative uses.

Fom the little i know, economics is a social science because it studies human environment, there is no specific(physical) laboratory. if we want to test anything concerning with economics, then we survey and taking primary and secondary research and analyse the things and it is carried out on the society. thus, society is the laboratory for any test of the subjects concerning with economics.

Most subjects in the sciences have a constant and specific way of carrying out their activities. For instance, to test the pH level of a matter requires a particular method, unlike in economics where the issue of unemployment solved in China differs from the way it will be addressed in the UK. Economics deals with the study of the environment in different ways. Therefor, i think it is possible to use scientific approach effectivelyin a subject that deals with human beings, but it must be a tough.

Report: Hurbank plc

I'm now an independent management consultant, to write a report to the analyse the main arguments for and against the relocation.

For:
By looking at the Human resource and operations data for Cellton factory and the information on possible Chinese relocation. Above 80% employees are trade union membership and there's non in China, that means Chinese workers are unprotected and then Hurbank plc can make worker on overtime, and the unemployment in the region of the new factory in China is 14%, which is high. Also, the average annual pay within Chinese region is very low, which is 2,000 pounds pa and the average proposed annual pay for staff in Chinese factory is 16,000 lower than the average proposed annual pay for staff in the UK factory. This is a big advantage to Hurbank plc to reduce the cost for long views. Also Hurbank plc has to pay the net present value of the investment for the first five years about 5.7 million pounds, which is a large number. By looking at the break even, it is faster to meet the break-even point if the factories are relocated in China because the lower variable cost and lower fix costs, that means the risk of the loss has been reduced. We also can see, at the same volume (700), the profit will be higher, and there is 25% more capacity, so that much more profit!

Against:
By looking at the Human resource and operations data for Cellton factory and the information on possible Chinese relocation. There are absolutely the estimated costs of relocating and setting up in China, and this will cost a lot about 22 million pounds. This big cost may case cash flow problems and the company may be forced to increase their bank loans or bank overdraft. Also, the percentage of shirts returned by customers will be increased a lot from 0.01% to 1 %, this means the quality of the shirts are being bad and this will affect the company's reputation straightly, otherwise, the Hurbank plc has to introduce new machine and train the Chinese workers to improve the quality, and this increases the cost. The lead time is being longer as well because China as far away from the UK, and the number of redundancies in the UK is 350, and each person cost the company 100 pounds. Also, there's a forecasted change in the value of pound relative to Chinese currency, and it is -18%, which is not good to the Hurbank plc.

In summarise, I don't think to move all three factories to China is a good idea, because the disadvantages are more than the advantages above!

Case Study: Sainsbury plc

I'm supposed to do the Q3 ^^

The question is : Assess the extent to which Sainsbury's plan for 2007-10 is likely to enable it to meet its corporate objectives.

Here's the plan for 2007-10

• Space growth--10% new space by March 2010.
• Development of grocery and non-food ranges.
• Costs--cost savings of 155 million pounds in 2007/2008, thereafter ongoing cot savings to offset half our operating cost inflation.
• Channel growth through online and convenience expansion.
• Profit--profit growth flowing through at a percentage rate in high single digits.
• Sales growth--total additional sales of 3.5 billion by March 2010.
• Cash flow neutral over 3 years.

I think the corporate objective of 10% new space by March 2010 is likely to be met. First of all, the company must do a lot of marketing researches and analyse the data they've got after researching. They have to evaluate the place where they decide to open the new stores, including the population and accessibility, because these are very important factors which affect the number of customers straightly to a supermarket. Also, the situation of competitors are virtual to Sainsbury plc, they can't open a new store which too near the Tesco. And the company has to consider whether the staff think much of new store or not as well, that to motivate staff because staff are a part of this project. After marketing research, Sainsbury plc should set a complete and correct, proper and effective marketing strategy to make the space growth successfully, such as the way of advising their new stores.

However, 10% new stores is a big number and it is tough to achieve in only three years, that means a big number of cost and it may causes further problems for Sainsbury plc such as the cash flow problem and etc. Also, after opening the new stores, Sainsbury will have a range of troubles to solve like if some new stores can't get enough profit as they expected.

In summarise, I think it is possible to have 10% new space in three years by Sainsbury plc, although this is hard to achieve this goal, but Sainsbury has good reputation and popularity, also, their profit was doubles from 2005 to 2007, they have the ability to make the goal achievable.

Solution 2: meet the developing world

The reccession is being more and more discussed, some people think that recessions provide and aboudance of opportunities. However, "recessions" is a negative word, so does" The worse the crisis, the greater the opportunity" really make sense?

Receesion means a general slowdown in economic activity over a long period of timeGDP, employment, investment spending, capacity utilization, household incomes and business profits all fall during recessions. So, most business people think it is not good to start a business in a reccesion.

There are some examples have been given from this article to show us how to catch the opportunities in a reccesion, after I summarised, i think the first thing that the business peopole have to do, is to think of what needs may emerge. For example, many unemployed people need assistance to help them to find new jobs. This is a good time to consider starting an employment agency, a life coaching service, a job skills training centre. Aslo, the people who had started a businnes already could consider what alternative options they have if they go out of business.

Anyway, opportunities are limited, business people should have full of passion and innovated ideas to survive in a reccetion.

Balance sheet analysis (Lapdesk)

Report for Hebden Design ltd

Balance sheet is a list of the resource that a business owns and the amounts it owes to others.
By looking at the balance sheet of Hebden Design Ltd in 2008 and 2009, first of all, I see the shareholder's funds(net assets) goes down from -3,037 pounds to -4,674 pounds, this is absolutely not good to the company, the reason for this decrease might be the reduction of the profitability. So the value od business is getting less and it might cause to lose shareholders. However, the liquidity of this company has increased because the debtors increases, but it means that the risk of bad debts aslo increases. Also, the whole curent assets still decreases from 447 pounds to 419 pounds because of the reduction of stock, so the profitability still falls. This company is suffering from its profit, so they'd better to do something to increase their profit as soon as possible.

Survey of HONESTY

1. If there's a product that would help you to cheat in your examination successfully, would you buy it?

2. If that cheating product is too expensive to your income, would you still buy it?

3. A membership card provides discounts to the individual only, however, people sometimes leand their cardsto the others. Do you think whther it is dishonest or not?

4. Do you think whether it is honest to sell weapons at very low price or not?

5. Do you think whether there's a strong reationship between HONESTY and LEGALITY?

Please comment your answers, u ll really help me alot ! Thx ! ^^

Solution 1: Break up the banking system.

People debate about how long banks such as RBS and Lloyds should remain nationalised, and some people think that it will be sold off at a substantial profit to the taxpayer.

OK, every time I see"BANK" i think about the CREDIT CRUNCH. With the consumer credit and commercial real estate mortgage loan defaults increase, the financial system is suffering from a shock. That means banks don't have enough money, also, people decide to take their money from the banks, they don't dare to deposit their money into the banks.

Well, first i want to talk about the strengths of bank nationalisation. Under the governmental control, the advantages of creditors and depositors are being protected, the assets of the banks will be improved obviously, also it helps the financial markets to be stable.

However, we realize that to remake the banking system by the government must be a real ly tough progress, and how many operations which involved in the business will be damaged by the reorganisation during 10 years?

Case Study = =

The breakeven point for a firm is when total costs equals total revenue. Expenditure and income are the same and the firm makes neither a profit or a loss. If the firm can sell at production levels above this point, it will be making a profit. If sales fall below this point, it will be making a loss. Establishing the breakeven point helps a firm to plan the levels of production it needs to be profitable. Break even analysis can also be used to analyse the potential profitability of an expenditure in a sales-based business.

But in this case, the experience of Nick Hess and Doodeaze show that break-even analysis is of little value to an entrepreneur starting a new business, Foodeaze ceased operations due to mounting losses after opening of a new atore nearby selling similar products. So, there must be some drawbacks about break-even analysis, suck as everything produced is sold whereas it is often the case that not all output will be sold; It assumes that all of the output is sold at the same price - often a business will have to lower its price in order to increase its sales; There are competitors that may lead to sales falling but break-even analysis can't forecast it. There are also some limitations such as it never consider tax or some others.

When sart a business, break-even could be helpful, but entrepreneur can't make all decisions just by a result from the calculation.

Using a computer in business and impact on staff

Computers are commonly used items in many areas. It is an important thing to people, especially the people who run organizations, industry, etc. . .Most of the jobs today require the use of computers. These 'mechanical brains' made a huge impact on our society. It would be hard if we didn't have the computer around.

So, how do computers impact on staff in business?
First of all, I'll talk about the advantages:

• Computers always take quicker than human can, so it can help increasing productivity.
• Reduce waste.
• More effective and efficient delivery of goods and services to customers.
• More productive staff utilisation, stall can be transfered to more urgent or complicated tasks.
• Better communications both internally and externally.

Then, I'll say something about the disavantages:

• Computers may create an increased need for staff training.
• Staff may lose jobs becouse computers can replace human staff which are dangerous, repetitive or boring, which can be demotivating for staff.

TQM Improves management and profits

What is Total Quality Management(TQM)?
TQM means the whol workforce has to be committed to quality improvements. This idea is to build quality into every department and not let quality get squeezed out.

• With TQM, every employee has o try to satisfy customers.
• It takes time to introduce TQM--workers need training so they see qulity as their responsibility.

So, TQM improves management and profits, let's see some advantages here.

• Create constancy of purpose toward improvement of product and service, with the aim to become competitive, to stay in business, and to provide jobs.
• Improve constantly and forever the system of production and service to improve quality and productivity, and thus constantly decrease costs.
• Institute training on the job.
• Drive out fear so that everyone may work effectively for the company.
• Break down the barriers between departments. People in research, design, sales, and production must work as a team to foresee problems of production and use that may be encountered with the product or service.
• Eliminate work standards that prescribe numerical quotas for the day. Substitute aids and helpful supervision.

Dog is GOD!?

This business idea is about luxury designer homes for dogs.


Italian designer Marco has dedicated his life to God. I mean Dog. His six tailor-made and exclusive Doghouses bark exclusivity, class, elegance and comfort. The only thing these pooch pads don’t have is a toilet. But then again, the dogs don’t really care because they know we’ll cleanup after them anyway.

This idea is not bad. Although I don't have any dogs, but I think if one day I can have a dog, I will love it so much and treat it as a god = =, I know this is crazy, but most people who have dogs love their dogs crazily and majority of them are very rich. So, the market size is not the problem, but i'm worried about the demand.

Strengths:

• luxury design
• good quality

Weaknesses:

• High price
• Small demand
• Difficult to find the product
• Small demand

Transparent Toaster(Concept Only)

I think this business idea is not so good.
When I saw the picture of this product, I found the kitchen gadget that has me intrigued; it’s a transparent toaster, this is a most stylish toaster I ever saw.
This transparent toaster allows you to see the bread while it is toasting so you're never surprised by toast that comes out too dark. This idea is based on a transparent heating glass technology. But the problem is the glass does not currently get hot enough to toast bread, the thing’s only a design concept and not a working device.
Ok, let's see the strengths and weaknesses.

Strengths:

• Stylish-looking
• Can see the bread aross to the glass

Weaknesses:

• Glass does not get hot enough
• It is only a design concept
• Not usefull that normal housewives won't buy it.
• High price.

My accommondation!!!!

I have a really really lovely bedroom ! ^_______^
It's a single room with cute pink wall paper, and there's a double bed for me !!hahaha!!



My big big big big bed!~ ^^So comfortable!!~


My colourful wall ^^



Nice desk, but not so big = =


Everyday you can see me sitting here and working hard! hehehe,,

I love my pretty wardrobe+dresser! ^^

Daisy always comes to my room, as you see, we aways work hard together and help with each other~~ ^^hahaha,, I never feel lonely and boring here~

You will never want to lose weight after watching this !!

Flybar Pogo Stick

This is a kind of 21st century pogo stick, by using aircraft-grade aluminium, can reach heights of 9 feet. The Flybar may be attractive people who are interested Extreme Sports.
About the product:Light in weight not by nature! This model incorporates the same patented technology as the flagship Flybar 1200 along with a host of NEW features. Weighing in 7lbs lighter than the 1200, the Flybar 800 is ideal for anyone overawed by the power of the 1200! With an ideal user weight at 80-180lbs this model would suit younger users or those who want to practice before moving on to the Flybar 1200 Currently available in Ireland is the Flybar 1200 and 800
I think this business idea is not bad. Let's see the strengths and weaknesses.

Strengths:

• Can play everywehre everytime
• High safty
• High-tech (using aircraft-grade aluminium)
• Can buy both online and in shops (there are a lot of sport shops sell this product)
• Light weight.

Weaknesses:

• Extreme aports (limited people are interested)
• High price(Young people can't afford)
• Small market size
• Too many competetors
• Not popular now

Wonderful Gays!!

I don't know what to say = =``

It's happened in Tailand, may be it is about sociology ....

P.S. Lex said he will learn it and show this fantastic dance to us few days later!!

We are looking for a business teacher >0<

Xixixixi...^0^
Calm down, calm down !~ This is just our business homework = =
Ok, we were supposed to make an advertisement of EF looking for a teacher, and our wise, laborious and lovely Mr C#### ( I'm worried that other teachers will be jealouse) teaches THREE different subjetcs, that must be so tired!!.So, we decided to find a new business teacher to share his tribulation. ^^

Business Teacher

• Location: Oxford
• Salary: secret (won't be low)
• Company: EF International Academic
• Employee type: Contract
• Job type: Permanent(NOT GOING TO TEACH IB and break A level students' hearts)
• Date posted: 02/03/2009

Description:
This International Academic school is looking to appoint a teacher who can offer Business Studies to AS and A2 standard. You must be a suitably qualified and experienced teacher and available to start as soon as possible. Our students are all from other countries, such as China, Russia, Kazakstan, etc, so if you come to our school, please do NOT talk about the problem between China and Taiwan. All students in our school must improved their english, so you must speak english nomatively and fluently, and don't speak too fast in class and ask them to do their blogs everyday. Some of students may be absent most of the time because they were drunk or wenk shopping or took drugs or became a monk , ( ^^ just kidding), so you must be kind, tolerent and patient, always be confident when you face to these student. The last thing, save people from group A!

You will have a oppotunity to work in a school with good environment , interesting staff and excellent students!

Please email your CV to ian@ef.com match the requirements.

Image-on-Nails Inkject Printer

I like this business idea, and I really want to have a try! ^^


Nail fashion is the biggest news in the nail care industry this decade and ImagiNail is leading the way. Leading fashion designers, accessory manufacturers, and major retailers all now agree with the nail industry that "Nails truly do complete the look" And, only the ImagiNail Nail Fashion PrinterTM can apply high quality fashion images - in vibrant color and photographic clarity - directly onto natural or artificial nails.

Let's see the business opportunity:

• your profit per client .
• Attract new clients and Increase the frequency of client visits
• Gain a competitive edge

And also, here's a marketing support to increase success:

• In-salon marketing materials including posters and buttons.
• Event marketing kits that attract new customers
• Listing your salon on our website.

About the products, there's a range of strengths:

• High quality
• Quick to learn and easy to use.
• Big marketing size.
• Less competitor.
• Professional.
• Special.

But, there are still some weakness:

• High price.
• Less advertisements.

China's Economy: Soft or Hard Landing?

A significant slowdown in China's economic growth in the third quarter is posing daunting challenges to the government's macro-control policies.

Pushing structural reform

The government's policy adjustment will determine whether China can prevent an economic slowdown from evolving into a meltdown.
China should transform its economy from an export-driven to consumption-driven growth model and from one that relies on highly polluting and energy-consuming heavy industries to one that depends on the hi-tech and service industries.

The cyclical fall in commodity prices offers the best timing for China's energy price reform as well as for increasing its energy efficiency. (Currently, the government decides most of the energy prices; hence cost fluctuations cannot be reflected in the final sales price.) In the 1960s-70s, Japan, Germany, and Latin American countries such as Mexico and Argentina boasted the highest economic growth in the world. But four decades later, the first two edged into developed countries, while Latin American countries are still lingering in the domain of developing countries. This is because they adopted completely different development models after being punched by high oil prices in the 1970s. Japan and Germany adopted favorable policies to encourage innovation in energy efficiency projects, and their energy efficiency levels have doubled in the past 30 years. But developing countries tried to stimulate economic growth by offering subsidies and price caps on energy. At present, the energy problem has increasingly become a bottleneck restricting developing countries' development. China should avoid the Latin American pattern and embark upon a project to refurbish its national energy policies to develop its economy in a more effective way.

Moreover, China should perfect its social security system in a bid to boost domestic consumption. High household deposit rates and low consumer consumption are partly caused by the lack of a sufficient social security system. China's expenditures for social security are far less than the average spent by developed countries. Therefore, its citizens tend to save as much money as possible for their retirement and possible illnesses, thus leading to inefficient consumption. The government should invest heavily in social security, public health and education to reassure its people that it is safe to spend money now.

Apart from the above-mentioned suggestions, the government should continue its land reform program to improve farmers' income, speed up urbanization and enhance intellectual property rights protection to promote innovation.

China opens key economic policy meeting

This is for our presentation of impact of China's economy policy on firms in China.


China's top leaders gathered in Beijing Monday to determine economic policies for 2008 amid efforts to prevent the economy from overheating and to curb inflation.

The Central Economic Work Conference, an annual event initiated more than a decade ago, has served as a crucial mechanism for the Communist Party of China (CPC) Central Committee and the State Council to run the Chinese economy.

Despite spectacular economic and social development since the start of the year, on the agenda at the conference is how to cool off booming investment and bank lending, address the soaring trade surplus, and improve the people's livelihood, sources said.

The conference will work out specific strategies and resolutions for these problems China is confronted with in its development.

China's economy is expected to expand 11.5 percent this year, fueled mainly by investment spending which rose 26.9 percent in the first ten months.

Its foreign exchange reserve topped US$1.43 trillion by the end of September - a main factor that have triggered the persistent liquidity problems.

Due to rising prices of food, the inflation rate will be 4.5 percent to 4.6 percent for the full year, compared with the government target of three percent, China's top statistician Xie Fuzhan said last week.

In a prelude to the conference, the Political Bureau of CPC Central Committee convened a meeting last week, saying next year's top macroeconomic priorities would be preventing the economy from overheating and the current price rises from evolving into "evident inflation".

"China would seek steady progress, give priority to good development (over excessive development) and adhere to its reform and opening-up policy," the Political Bureau was told.

The country would also strive to make bigger progress in improving the people's livelihood, especially the lives of low-income families.

Chinese Premier Wen Jiabao has also admitted that "prices have been on the rise these days and I'm aware that even a one-yuan (US$0.13) increase in prices will affect people's lives."

(Xinhua News Agency December 3, 2007)

Business Vocabulary (part 2)

12. person specification----The skills that a job candidate must have in order to complete the tasks of a position offered by a company.

13.Induction----Alternative term for inductive reasoning.

14.Employee empowerment----Employee empowerment is a strategy and philosophy that enables employees to make decisions about their jobs

15. Job enrichment----Job design technique that is a variation on job enlargement concept

16.Job enlargement----Job design technique in which the number of tasks associated with a job is increased (and appropriate training provided) to add greater variety to activities, thus reducing monotony.

17.Capacity utilisation----Capacity utilisation is the percentage of the firm’s total possible production capacity that is actually being used.
Capacity utilisation is calculated as follows:

Capacity utilisation (%) =
actual output per month (or per annum) x 100%
________________________________________
maximum possible output per month (or per annum)

18.Rationalisation----the organization of a business according to scientific principles of management in order to increase efficiency.

19.Quality control----Steps taken to make sure that a company's products or services are of sufficiently high quality. also called quality assurance.

20.Quality assurance----the same as quality control.

21.Productivity---The amount of output per unit of input (labor, equipment, and capital).

22.Product portfolio analysis----



23.price taker----An individual or company which is not influential enough to affect the price of an item.

Business Vocabulary (part 1)

1. market mapping---Market Mapping is a distinct, well-codified methodology for organizations seeking to align their marketing strategies and processes and/or product development priorities more closely with the problems that customers need to solve most urgently.

2. market segmentation---A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs.

3. Brand positioning---When a new brand appears in the market, the consumer gets acquainted with it and starts collecting information about it. On the basis of this information the consumer creates an opinion of the brand and establishes a beand image.

4. Advertising elasticity---Advertising elasticity of demand is the change in sales that results from each monetary unit (e.g. each pound or dollar) that is spend on advertising.

5. Cash flow---Cash flow (also called net cash flow) is the balance of the amounts of cash being received and paid by a business during a defined period of time, sometimes tied to a specific project.

6. Loss leader---A loss leader or leader is a product sold at a low price (at cost or below cost) to stimulate other, profitable sales.

7. Adverse variance---It is the difference between actual and budgeted spend. Managers look at variances to help them understand and control business performance.

8. Net profit margin---Profit margin, Net Margin, Net profit margin or Net Profit Ratio all refer to a measure of profitability, it is calculated by finding the net profit as a percentage of the revenue :


9. Organizational structure---An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim.

10.Off the job training---Off the job training involves employees taking training courses away from their place of work. This is often also referred to as "formal training".

11. On the job training---Employee training at the place of work while he or she is doing the actual job.

* P.S. Here's a business dictionary!! It is very useful!!

Rubik’s cube

The Rubik’s cube is more popular then ever. It’s getting a spherical updated, it’s also a lamp and it makes a great alarm clock too. So this touchscreen Rubik’s cube makes perfect sense. It’s a natural progression. Obviously the TouchCube works just like the old version, but instead of turning it’s segments, just swipe a finger in a straight line or an ‘L’ shape. There’s even an accelerometer built in so that only the upwards-facing surfaces respond to your touch.

Strengths:

• Multifunctional
• Easy to use
• Stylish design ( attracts a lot of children and teenagers)
• Less competitors
• Creative

Weaknesses:

• Too expensive ( 150 pounds, and most target audiences are children)
• Only can by online

"Clocky"Evasive Alarm Clock

This is a clock, a friendly, wheel-footed alarm clock which is with a lovely name--CLOCKY!^^
The patented alarm clock that runs away and hides to get you out of bed. CLOCKY gives you one chance to get up. But if you snooze, CLOCKY will jump off your nightstand and wheel around your room looking for a place to hide, beeping all the while. You'll have to get out of bed to silence his alarm. CLOCKY is kind of like a misbehaving pet, only he will get up at the right time.
I think this is a really good idea!~..Especially for people like me---very very very difficult to get out of my lovely, comfortable, warm bed.
Strengths:

• Stylish(Attracts young people, especially girls)
• Small(Size: 5.25" x 3.5" x 3.5")
• Creative and high technology.
• Can buy online and also in the shops.

Weaknesses:

• Expensive($50)
• Limitation(Only can but in America)

What can Toyota do?

Toyota meets some problems.
Let's see what can Toyota do?
1)Reduce production, stock falls. The marckedt has over capacity by reducig production costs(labour, materials)are reduced.
2) Create a new hybrid. (electric and petrol)car. This will attract customers as running from costs over cheaper. There is a competition based on quality from general motors (Battery prondes, more energy and has a longer life cycle).
3) Ask the government for subsidies, this would compare cash flow and reduce costs os investment.
4) New market. (Ansoff matrix)
5) New products, e.g. a flying car.
6) Close plants, e.g. truck companies.
7) Establish the emergency profit improvement committee.
8) Manager's bonuse.
9) Reduce workforce.
10) Reduce hours.
11)Reduce payment.
12) Sell of part or all the company.
13) Drop price.
14) Use Toyota brand to make other products(high quality).

Gneration G

THAT G WOULD BE "GENEROSITY", NOT G FOR "GREED" ^^

Read this first:

Sometimes big events and ongoing trends clash in a beautiful way, only to converge soon after. Consider the following:

GENERATION G "Captures the growing importance of 'generosity' as a leading societal and business mindset. As consumers are disgusted with greed and its current dire consequences for the economy—and while that same upheaval has them longing more than ever for institutions that care—the need for more generosity beautifully coincides with the ongoing (and pre-recession) emergence of an online-fueled culture of individuals who share, give, engage, create and collaborate in large numbers.
In fact, for many, sharing a passion and receiving recognition have replaced 'taking' as the new status symbol. Businesses should follow this societal/behavioral shift, however much it may oppose their decades-old devotion to me, myself and I.”


Well, I think it is very important for corporations to ditch the greed and embrace generosity. It's something that countless individuals have already started doing, of course: giving is the new taking, and sharing is the new giving. People realize that this month's Trend Briefing is massive, but in this business climate, they must spend some more time figuring out how to get a little closer to their customers.

Fashine Laptop Carry Cases

I want to their website, it was a not so gool commerce site, but their business idea is not bad.

The products there are normally for women because women are more likely to pursure and fashion. There are a range of stylish and pretty designed laptop bags which are casionally to be found in normally shops, so they must attract many many female customers,especially stendts in colleges and office ladies.

Strengths:

• Fshionable Products.
• Stylish reputation.
• Cheap prices.
• Nice Quality.

Weaknesses:

• Not famouse brand
• Limitation(only for online shopping and only pay in US dollar)

Solar Charging Backpack

Dicribtion about this bag:
The Voltaic Converter is the most versatile model. It is a small light weight day bag with a compartment for a water bladder, so it is ideal for biking and hiking.
Multiple attachment mechanisms mean it can work as a pannier on a bicycle, a tank bag on a motorcycle, a saddle pack, or a day bag attached to a lager rucksack.

Well , I think this is a good idea. From my point of view, I think this bag is very useful because I'm studing abroad overseas so I must spend so many hours in airplaines every year. This bag may be the best choice for me to carry with to take the flights! It's small light weight and versatile, it is very suitable for small people! But I don't like its design and colour~~

Strengths:

• Cheap
• Easy Attachment
• Specifications ( light weight but big volume)
• Environmental(4 Watts of Solar Power)
• Versatile (Battery Included,etc.)
• Sell Online.

Weaknesses:

• Poor design. (Not good looking)
• Poor brand.
• Too many competitors

LEX JACKSON

One of my friend asked me that how is my school life in the UK.

I just sent this picture to her.

She said:"NICE!"

Hyperlocal newspaper turns blogs in to print

The Printed Blog is the world's first daily newspaper comprised entirely of blogs and other user generated content.It seeks to change the way people share and interact with news from the world around them. Therefore,we can read opinions of different people meanwhile .I think it will be more convenient and efficient for people to discuss or learn things from others.

So,let's see how it works first--

1.Submit content.

2.Upcoming issures.

3.Advertise with us.

4.Community input.

5.On social networks.

6.Talk with us.

7.Work with us.

8. Lastly,just know more about us.

On one hand, advantages are very obvious that this independent outlet that aggregates user-generated content from the internet that it can meet a lot of different people's demands.Secondly, the newspaper is fully tactile that it reads and functions like a web feed, but that can still be spread across the breakfast table or enjoyed on the train. Moreover,there are lots of contents that include not only blogs but also photographs, puzzles, events, reader comments and other items of local interest.

On the other hand,the disadvantages exist that can not be avoided but not too many.One is that it just fits for people who have computers. The other weakness i think, is that the paper for printing sometimes may costs more than buying a piece of newspaper.

As a whole,i have confidence on this product.And it is on its way now!!!

Powering restaurant with kitchen grease

Very good idear! Let's see how it work.
Vegawatt focuses on the upside of grease, turning restaurants' waste oil into electricity and hot water.
After filtering a restaurant's used vegetable oil, the unit combusts the refined fuel in a diesel engine, feeding electricity and hot water straight into a restaurant's system. The units won't provide all the power and electricity that a business needs, but can significantly improve its carbon footprint and running costs, as a unit typically provides 10-25% of electricity requirements.
Strengths:

• Save on electricity and heat.
• Generate clean energy.
• Easy to use, no fuss, no muss.
• No more over lowing oil barrels.
• The reputation boost gleaned from going green.
• Businesses further benefit by not having to pay or arrange for used oil to be removed.

Weaknesses:

N/A!

Super-Light 'Aircraft'

“This is a universal kind of transportation. It can fly at the height of 4,000 meters above the ground and cover the distance of up to 400 kilometers without additional refueling. Its 30 horse-power motor allows to develop the speed of 160 km/h in the air and 80 km/h on land. An on-board computer controls pilot’s actions,” Alexander Begak told ITAR-TASS.

Weakesses:
It's made of ultra-strong materials, so it must be a vey high cost.
Limitative customer.

Strengths:
Super light, only 60 kilos.
Benefit of strategic defense goals.
Useful (It can patrol frontiers, conduct day and night photography, mapping and monitoring)

Toy Rentals For Kids

I think this business idea is very good.

Strengths

First, it works easily, because it is online, there are a lot of conveniences provided. So, let's see how it works:

1.Choose a membership plan that is right for you
2.Select as many toys to add to your wishlist as you like
3.You will receive toys from your wishlist within a few days
4.Keep the toys for 30 or 60 days, depending upon the plan, or longer if you wish. You will still only be charged your low monthly membership fee, with no late fees ever! *Customers receive only One Shipment Per Month or One Shipment Every 2 Months, depending upon the plan*
5.When you are ready to get some fresh toys, place the toys that you wish to return back in the original shipping box, tape up the box with the provided tape & adhere the provided postage paid Fed Ex shipping label, then drop off at any Fed Ex shipping location. (Visit www.fedex.com to find the closest location to you)
6.When we receive your returned toys, we will send out your next shipment.

And second, it saves your money! Nowadays, children's toys are very expensive if they are high quality, and they ar elimilated quickly because diffenrent types of toys are for childrn in different age.
Third, if you rent toys so you have to give them back to the company, then there will be less clutter in your home.

Weaknesses

The toys may be damaged, then the consumers will be unsatisfied.

Many people don't trust the safety of the toys.

Most children want to own the toys, so it is difficult to parnts to give the toys back.