The Times 100 Business Case Study News

Positive about disability

Gordon Wilson - gordon@mb-a.biz — Tue, 10 Nov 2009 00:00:00 GMT

Around 16% of working age adults in this country have a disability. Lloyds TSB has adopted a positive approach towards disability which has resulted in the development of good working practices. It has created an inclusive culture where all employees are encouraged to reach their full potential. Lloyds TSB goes beyond the legal obligations of the Disability Discrimination Act 1995 both during recruitment and when providing development solutions that meet the specific needs of each of its disabled employees. In addition to this, the Lloyds TSB Foundation supports disability charities and initiatives such as Disability Information and Support.

The writers of Skins and Shameless have developed a new TV show for Channel 4 which addresses disability throughout. In fact, it is a spoof reality TV show, where six disabled people are marooned on a remote island and left to fend for themselves. It will undoubtedly be controversial however lead writer, Jack Thorne, pointed out that the series 'tries to tell the story of contemporary disabled identity from the perspective of contemporary disabled people. In most cases they are not defined by their disability so it becomes a story about a group of people surviving on an island' (The Times 2nd November 2009)

Lloyds TSB has found that by taking a positive approach to disability it has benefited both its employees and the organisation. It has striven to remove the barriers that restrict disabled people from working effectively because it promotes the social model of disability. This states that it is society not disability that creates barriers for disabled people. Perhaps the writers of Cast Offs are hoping to change society's approach disability too in the hope of removing more of those barriers.

Questions

List three 'reasonable adjustments' that a firm may make to accommodate a disability
Other than disability, laws have been introduced to protect employees from discrimination on what other grounds?
Explain, using examples, what is meant by discrimination
Analyse the benefits to organisations like Lloyds TSB of developing a positive approach to disability

Answers to questions

List three 'reasonable adjustments' that a firm may make to accommodate a disability Examples might include: Installing ramps, Changing working hours, Providing software e.g. JAWS (Job Access With Speech) for blind employees
Other than disability, laws have been introduced to protect employees from discrimination on what other grounds? Age (Age Discrimination Act 2006), Race (Race Discrimination Act 1976), Sex (Sex Discrimination Act 1975)
Explain, using examples, what is meant by discrimination Discrimination could be defined as treating a group of people either more or less favourably than others. Discrimination can be direct or indirect. A possible example: direct discrimination would occur if someone was not promoted because they were a female; indirect discrimination would occur if only people over 5'10' were allowed to apply for a job because this would preclude most women.
Analyse the benefits to organisations like Lloyds TSB of developing a positive approach to disability When recruiting, attracting the best people for the job regardless of disability, Better retention of staff, Improved image of the business, Helps retain and attract customers, Results in a better approach to disabled customers as well as staff.

Using customer service to position a business

Gordon Wilson - gordon@mb-a.biz — Tue, 03 Nov 2009 00:00:00 GMT

We all hope to receive good customer service before, during and after purchasing a product or using a service. Customer service refers to the way a business looks after its customers. first direct is a division of HSBC Bank and it provides a range of banking services to its customers, such as current accounts, credit cards and loans. Customers can access its services through internet, telephone and mobile banking services. first direct has recognised the importance of good customer service and this can be identified from its mission statement which is 'pioneering amazing service'. Research has shown that this is paying off. first direct has a reputation for offering quality customer service and has been found to be the UK's number one bank in terms of customer satisfaction.

Despite the obvious benefits of satisfying customers' needs, last week the Institute of Customer Service reported that 30 percent of organisations have reduced their spending on customer service training this year. In addition to this, it has found that 21 percent of businesses have made customer-facing staff redundant. Earlier research by the institute has shown that companies that have a reputation for providing excellent service enjoy net profit margins of up to 24 percent more than their competitors. They also benefit from getting up to 71 percent more profit per worker. Although businesses may be forced to cut costs, these statistics suggest that managers question the wisdom of making cuts in this area. (The Times 26th October 2009)

first direct has found that its commitment to customer service has allowed it to provide a more personal service than many other banks. This has given it a competitive advantage and facilitated in it building a loyal customer base. With Christmas only weeks away, retail organisations will be competing with each other for our custom. Providing high levels of customer service may well be a factor in how well businesses cope this Christmas, especially as consumers are expected to spend less than last year.

Questions

In what ways can businesses provide good customer service?
Explain the benefits to organisations like First Direct of providing excellent customer service.
Analyse why it is important for businesses to maintain a focus on customer service and continue to invest in customer service training.

Answers to questions

1. In what ways can businesses provide good customer service? Examples may include: Provide quality goods and services, Have informative, polite and friendly staff , Respond quickly to enquiries, Deliver orders on time, Provide an after-sales service e.g. ability to easily exchange faulty goods or supply a helpline number for dealing with technical queries

2. Explain the benefits to organisations, like first direct, of providing excellent customer service. Competitive advantage, May reduce marketing and operational costs, leading to higher profit margins, Loyal customers, Positive recommendations and word-of-mouth promotion, Fewer complaints

3. Analyse why it is important for businesses to maintain a focus on customer service and continue to invest in customer service training. New employees will need to be trained, Customers' needs may change, Product and service ranges may alter or be updated, Organisations may grow necessitating different customer service skills. For instance, if a business moves into a different country the requirements of these new customers may be different.

Protecting the marketing mix through intellectual property rights

Gordon Wilson - gordon@mb-a.biz — Fri, 30 Oct 2009 00:00:00 GMT

Firms take steps to protect their physical assets such as buildings, by locking them up or taking out insurance, but how can they protect their intellectual property? The Intellectual Property Office is the government body responsible for granting intellectual property rights in the UK. Intellectual property is the term used to describe property that originates in the mind. The business writer Charles Handy describes it as the 3Is - information, ideas and intelligence, and it can include inventions, designs, brand names and recorded material such as songs. By preventing other businesses from using their ideas and information, firms can maintain a competitive advantage. Patents, registered designs, trade marks and copyrights are all ways that the Intellectual Property Office can support businesses in protecting their intellectual property.

Patents are widely used in scientific research. Huge sums of money are invested by organisations in this field and so researchers will look for ways of protecting their findings. Last week the Bill and Melinda Gates Foundation awarded 70 initial research grants of $100,000 (£65,000) to young scientists who are looking at ways of fighting infectious diseases. One of the ideas is for a chewing gum that can detect malaria. Another scientist is researching into the use of an electronic nose which could detect tuberculosis in a patient's breath. Should any of these ideas prove successful in the future, it is possible that they will need protecting. (The Times Online 21st October 2009)

With an estimated 75% of a firm's value is in its intellectual property, the work of The Intellectual Property Office is vital to ensure that businesses can exploit their own intellectual property, such as knowledge and brands, without risking their ideas being copied by others.

Questions

List the four ways that the Intellectual Property Office can help a business protect its intellectual property
What would be used to protect each of the following? a. The look of a mobile phone b. The lyrics of a song c. A brand name d. An invention
For the marketing mix of a firm with which you are familiar, explain how intellectual property protection has contributed to success
Analyse the benefits of protecting intellectual property

Answers to questions

List the four ways that the Intellectual Property Office can help a business protect its intellectual property Patents, Designs, Trade marks, Copyright
What would be used to protect each of the following? a. The look of a mobile phone - registered design b. The lyrics of a song - copyright c. A brand name - trade mark d. An invention --patent
For the marketing mix of a firm with which you are familiar, explain how intellectual property protection has contributed to success Any example could be used e.g. Forensic Pathways in the IPO case study or Dyson... Patent on the cyclone technology used in Dyson vacuum cleaners meant the product was different from any other on the market, The trade mark 'Dyson' insignia makes it easily recognisable and associated with this one organisation during promotion. The well known Dyson brand name has become synonymous with vacuum cleaners. Due to the unique nature and performance of the product when it was first introduced, prices could be set higher than its competitors
Analyse the benefits of protecting intellectual property - Prevents others from copying ideas, Provides competitive advantage, Incentive for firms and individuals to invest in and develop new ideas as they should be able to profit from them, Stimulates further innovation and competition, Intellectual property forms a major part of a firm's wealth

Using the marketing mix to drive change

Gordon Wilson - gordon@mb-a.biz — Tue, 20 Oct 2009 00:00:00 GMT

The marketing mix is the combination of the product, price, place and promotion which is used by organisations to ensure they meet the needs of their customers. Parcelforce Worldwide is a leading provider of parcel deliveries and is part of the Royal Mail Group. Using a network of partners across the world it can deliver to 99.6% of the world population and delivers 210,000 parcels each day. Even though Parcelforce Worldwide is a service organisation, getting the marketing mix right is still paramount. For instance, to inform customers about its services and persuade potential customers to use them it must employ the most effective methods of promotion.

Robbie Williams' appearance on X-Factor formed part of the promotional campaign for his new album, due for release in November, and its lead single Bodies. Since Williams has been out of the public eye for three years, there is a lot at stake for Virgin Records who signed the £80m recording contract with him in 2002. In addition to the X-Factor appearance, Williams has appeared on radio and television. Magazine and newspaper interviews with the star and a giveaway CD of his greatest hits have been focused at encouraging sales of his records. Despite this, however, Bodies was still beaten to the top spot in Sunday's singles chart by Alexandra Burke, last year's X-Factor winner. Perhaps Robbie Williams' reluctance to tour is the reason. In contrast, his former band mates in Take That supported their comeback with a lucrative concert tour. This not only raised their profile but allowed them to further develop their image and relationship with their fans. (The Sunday Times 18th October 2009)

Regardless of the type of industry, getting the right products in the right place at the right price is key. In addition to this, effective promotion is essential to encourage sales and provide competitive advantage, not only for organisations like Parcelforce Worldwide but also recording artists like Robbie Williams.

Questions

List the four parts of the marketing mix.
Explain why market research is so important to organisations such as Parcelforce Worldwide when they are developing their marketing mix.
Discuss the extent to which 'promotion' could be considered the most important element of the marketing mix in the music industry.

Answers to questions

1.List the four parts of the marketing mix: Product, price, place and promotion

2. Explain why market research is so important to organisations such as Parcelforce Worldwide when they are developing their marketing mix

Parcelforce is a market-oriented organisation and therefore must understand the needs of its customers
Parcelforce has a range of customers, from individual consumers to large organisations. It must ensure it is providing the services required by all of these
The delivery industry is becoming increasing competitive so it must ensure it maintains competitive advantage

3. Discuss the extent to which 'promotion' could be considered the most important element of the marketing mix in the music industry

On the one hand, promotion is the most important of the 4 Ps because:

If people do not know about a product they won't buy it
Customers only have limited funds. Promotion can therefore influence what customers spend their money on.

However:

Music tastes are very diverse. Promotion will not encourage people to buy music they simply do not like (product)
If the price is too high customers will be put off buying records, or may encourage them to download music illegally
Providing a convenient means of buying music (place) has become a major consideration in the music industry recently, resulting in the option to download music instead of having to go out to a physical store

Balancing stakeholder needs

Gordon Wilson - gordon@mb-a.biz — Mon, 12 Oct 2009 00:00:00 GMT

All businesses have stakeholders - those groups or individuals with an interest in the decisions they make. Shell, the multinational energy company, is no exception. In its challenge to meet the energy needs of both current and future generations, Shell aims to satisfy the needs of all of its stakeholders while balancing the impacts of its work on society, the economy and the environment. Shell's internal stakeholders are its shareholders, employees and suppliers. It also has external stakeholders such as customers, local communities and pressure groups. The decisions made by the organisation may have an impact on all or some of these groups.

On Friday 9th October, JJB Sports confirmed it was aiming to raise £100 million through a rights issue. This means it will offer new shares to existing shareholders. JJB is hoping to gain more than the current market value of the business which currently stands at just less than £80 million. This decision is likely to impact on a number of its stakeholders. As JJB made losses of £42.9 million in the first half of the year, this rights issue should make the employees feel more at ease of keeping their jobs and customers more confident that they will be able to continue to make purchases. Current shareholders have the opportunity to keep their percentage holding in the firm but may decide to waive this right to purchase more shares and therefore be forced to take a smaller share of profits as dividends. (The Times Online 9th October 2009)

Stakeholders are affected by, or can affect, a business. They all have different expectations of the business and these contrasting objectives may cause conflict. Organisations, like Shell and JJB, must balance the requirements of their different stakeholders as they constantly make decisions which could impact on them.

Questions

List the different stakeholders of organisations like JJB Sports
Explain, using examples, how there might be conflict between different stakeholder groups
Using the case study, analyse the benefits to Shell of working closely with pressure groups
To what extent are shareholders the most important stakeholders of a business?

Answers to questions

List the different stakeholders of organisations like JJB Sports

Customers
Employees
Shareholders
Managers
Local community
Suppliers
Pressure & interest groups
Government

2. Explain, using examples, how there might be conflict between different stakeholder groups

Conflicts can occur between stakeholders because their objectives may differ. For example:

Employees may demand higher pay but this would impact on the dividends being paid to shareholders.
Suppliers may want to be paid more for their goods but this in turn may lead to price increases for customers.

3. Using the case study, analyse the benefits to Shell of working closely with pressure groups

Benefits could include:

tapping into the knowledge and experience of the pressure groups e.g. how to dispose of old oil rigs in a way that minimises damage to the environment
ensuring that investments are made into positive projects such as the coastal erosion research laboratory in the USA
reducing negative media attention
improving reputation.

4. To what extent are shareholders the most important stakeholders of a business?

On the one hand, shareholders are important because:

They are providing capital required to set up and run the business
They will want rewarding for the risk they take when investing in the business
If shareholders in public limited companies are unhappy, share prices could fall

However:

Without customers, businesses would not exist
Motivated, well-trained and skilled workers impact on a business' sales and reputation
Suppliers are an essential stage in the chain of production, especially for organisations like Shell and JJB

Supporting new business start-ups

Gordon Wilson - gordon@mb-a.biz — Tue, 06 Oct 2009 00:00:00 GMT

Many people choose to start their own businesses instead of working for someone else. Over 400,000 new businesses started up in the UK last year. Some people spot a gap in the market that they wish to exploit; others aim to use a skill they already possess. Barclays, the major global financial services provider, offers a range of support for new business start-ups whatever their reason for wanting to strike out on their own. It has a special banking service specifically for small enterprises called Local Business. There are many considerations when starting a new business so Barclays provides support to entrepreneurs all the way through from the initial stages when they are generating ideas, through the business planning stages and continues on as trading commences.

It is expected that the economy has started growing again over the last four months. House prices have started to rise, as have share prices. The FSTE 100 Index is up by nearly 50% since March. Unemployment, however, is set to continue to rise by 150,000 by the end of the year according to the CBI. This is because employment does tend to lag about 12 to 18 months behind economic activity. Perhaps then, these conditions might result in more entrepreneurs wanting to start up their own businesses as confidence in the economy begins to recover and yet there are still few openings in current firms. (Times Online 30th September 2009)

Starting up in business carries risk but the right support and guidance can reduce these risks. In addition to services offered by Barclays to help entrepreneurs through the process of business start-up, such as seminars throughout the country and free banking for the first year, it can also provide the finance which is often required to get off the ground. Some firms will require very little funding whereas others will need to purchase premises and equipment. This combination of financial services and advice offered by banks gives many entrepreneurs the opportunity to realise their ambitions.

Questions

Define the terms bank loan and overdraft.
Using the case study, explain the type of support that banks like Barclays can provide to small businesses.
Discuss the extent to which writing a good business plan will determine the success of new businesses.

Answers to questions

Define the terms bank loan and overdraft

A bank loan is a sum of money borrowed for a given period of time which is paid back with interest.
An overdraft is when more money is withdrawn from a bank account than it actually contains.

Using the case study, explain the type of support that banks like Barclays can provide to small businesses

Business planning tools and advice
Financial forecasting software
Advice on how to improve cash flow e.g. guidance on effective ways to prevent late payments
Providing finance e.g. overdraft, loan, mortgage, company credit card
Free banking services for 12 months
Support of local business manager
Seminars for new and existing entrepreneurs

Discuss the extent to which writing a good business plan will determine the success of new businesses

On the one hand...

Provides goals and targets for entrepreneurs to work towards which can be motivating
Easier to control and monitor performance and take action if necessary
A comprehensive business plan will be required to obtain finance from a bank

However...

Other internal factors will affect the success of the business such as how well it is managed and the quality of any employees
External factors will affect the success of the business e.g. competitors setting up nearby, new laws being introduced

It may depend on...

How thoroughly the market research was carried out before writing the business plan
Whether the business plan is reviewed and updated regularly