More and more companies are using social media such as Facebook to engage with their customers and potential customers.
KLM, the Dutch airline, has just introduced a new initiative which could make your next flight with them very interesting.
They are allowing their passengers to link their Facebook profiles to their check-in information.
This in effect means that when you check in you can view the Facebook profiles of other people on your flight who have agreed to show their profile.
If you like the look of them or think that they would be interesting to sit next to for the flight then you can choose a seat next to that person. KLM call it the “meat and seat” service.
A quick discussion in the office this morning showed opposing views on this one. Some thought that it would be a great opportunity to meet new and interesting people whilst others thought it would be a bit creepy for someone to select you to sit next to.
Either way, it’s certainly a novel approach by KLM in terms of integrating social media into a core function of their business.
Personally, I think it’s a great idea and I shall straight away set up a Facebook profile identifying myself as extremely overweight, opinionated and loud mouthed as well as suffering from severe personal hygiene problems.
With any luck that will mean that the seat next to me will be free and I can read the newspaper in peace and quiet…
The team here at ExP are now taking a break over Christmas and we’ll be back blogging in January but we will be posting on our Facebook page though and with no requirement to check into a flight, our Facebook page can be found here.
Thanks to all of you that read our blog and we’ll see you in 2012!
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-12-19 22:06:372011-12-19 22:06:37Will you be sat next to the love of your life or an obnoxious smelly person?
It’s a sign of the times but two of the UK’s highest profile high street shopping chains are in financial trouble.
La Senza, the luxury women’s underwear shop, has reportedly called in KPMG to help restructure the business.
Whilst some of the less professional male readers amongst you may well suggest that the first thing they should do is to undertake a reasonableness review of the lingerie brochures, the chances are that KPMG’s consulting work with La Senza will involve a lot more.
It’s possible that the retail chain will either get additional investment or perhaps more likely close a number of shops or even put the company into administration (this is where a company is controlled by an administrator who is independent from the directors and in effect decides for example whether the company can become a going concern again or whether it should be broken up or even liquidated)
Is it really a surprise though that the bottom has fallen out of the luxury underwear market?
With the onset of the recession many people are buying less luxurious underwear or simply making do with what they’ve got.
With the emergence of internet shopping there’s also the fact that the cost structure of these “bricks and mortar businesses” is significantly higher than retailers selling over the internet.
In simple terms, revenue is down but costs are still high. The end result is that a formerly profitable company has turned into a loss making business and La Senza is at risk of going bust.
Deloitte meanwhile have been appointed as Administrators of the shoe shop chain Barratts.
Barratts has nearly 200 shops in the UK and according to press reports Deloitte are said to be “working closely with suppliers to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.”
Whilst it’s not good news for the employees of La Senza and Barrats, I’ve got a feeling that unfortunately there will probably be more retail companies facing trouble on the high street in the near future.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-12-16 18:36:282011-12-16 18:36:28KPMG are into underwear and Deloitte are into shoes...
We’ve all heard of the big coffee chains such as Starbucks and Costa Coffee and with their growth over recent years it’s become more and more difficult for the smaller independent coffee shops to compete.
Over in Singapore though a novel approach to competing with these “coffee shop big boys” has just been introduced.
Lots of businesses have a “loyalty card” programme whereby people earn various points each time they spend money with a company. They can then use these points to buy various items with the company.
The giant Tesco supermarket chain for example has one of the largest loyalty card schemes in the UK whereby “Tesco points” can be used to purchase Tesco products. Most international airlines also have loyalty programmes such as Sky team and Star Alliance where the points earned can be exchanged for free flights.
Antic Studios, a creative agency in Singapore has just come up with a new concept and it’s a “disloyalty card”.
The aim is to help a group of 8 smaller independent coffee shops in Singapore develop.
The idea is that an individual picks up a disloyalty card at one of the independent coffee shops. If they then visit the other 7 independent shops they get their card stamped and can then return to the original coffee shop to claim their free drink.
It’s a novel way of smaller companies who are in effect in competition with each other joining together to create awareness of themselves and encouraging people to try them out instead of staying with the big guys.
Smaller competitors working together to create stronger competition against the big coffee chains – a nice idea and well worth discussing over a cup of coffee.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-12-14 22:25:492011-12-14 22:25:49Is it better to be loyal or disloyal?
It’s an exciting time in anyone’s career when they apply for a job. Unfortunately for a lot of people in today’s economic environment the chances of success in getting a job are not always that high.
I’m probably biased in my outlook though but for certain professions I think there will always be a demand and anyone that furthers their knowledge in the financial and business functions will be ahead of the game.
What about politics and agriculture though? And more to the point how important is your name in determining whether you get a good job or not?
There was a rather amusing mix up the other day when following Silvio Berlusconi’s resignation, Italy’s new government got a bit confused in its appointment of a new cabinet.
They contacted Professor Francesco Braga who is an expert in agriculture at the University of Guelph in Ontario, Canada and told him that he had been appointed as the new deputy agriculture secretary in Mario Monti’s new government.
This probably came as a bit of a shock to Professor Braga as although he’s an expert in agriculture he’s lived in Canada for 28 years.
He reportedly told The Toronto Star newspaper: “I thought, ‘Oh, my God.’ I replied to their email. Suddenly, there is a flood of emails from friends, foes and industry associations, all kinds of important players in Italian agribusiness, congratulating me. So I thought, ‘OK, it must be true.’”
Alas for Professor Braga though the appointment was meant for another Professor who is also called Franco Braga.
Now the second Professor Braga does in fact live in Italy but the interesting point here is that he is not an expert on agriculture as he is in fact a professor of construction engineering at Rome’s Sapienza University.
He had been recommended by Altero Matteoli, the previous infrastructure minister and to make matters even more confusing, he was not recommended for the agriculture post but was instead recommended for the position in infrastructure.
So in conclusion, the Italian economy was in turmoil and Silvio Berlusconi’s government were widely blamed for the problems.
A new government led by Mario Monti is being set up to hopefully bring some stability to the economy.
One of the new government’s first appointments was a deputy agricultural minister who they mistakenly thought was a Canadian agricultural professor but then it turned out that it was a professor of construction.
In summary then things appear to be all under control…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-12-09 18:34:302011-12-09 18:34:30It's really not me. It's him...
Money makes the world go around but does it matter if it’s paper or plastic money?
A few years ago if you looked in your wallet or purse you would probably have seen paper banknotes. Dollars, Euros, pound sterling and other currencies had paper notes of various denominations.
Today though there are 23 countries around the world that use plastic banknotes instead of paper notes.
Canada recently joined the list of plastic note countries and has just launched a plastic $100 note.
Why the switch to plastic notes though as after all the world has managed with paper notes for plenty of time. There are a few reasons for the switch.
Durability is perhaps the major one. The usable life of plastic banknotes for example can be up to 2.5 times longer than the traditional paper note.
There are also better security features on the plastic notes. Sophisticated holograms on plastic banknotes make it more difficult for counterfeit notes to be made.
So with all these benefits why don’t more countries use plastic notes?
On the downside of things, whilst the useful life is longer the initial upfront cost of production can be quite a bit higher with more complex banknote production facilities required.
Some people have also said that plastic notes are more slippery and therefore more difficult to count large amounts of money. To me though this wouldn’t necessarily be a major problem if the large amounts of banknotes that were being counted were mine!
Whichever way you look at it the chances are that over the next few years more and more notes will be plastic rather than paper and for any of you that have pulled a pair of trousers out of the washing machine and found a soggy broken paper banknote in the pocket this can only be a good thing.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-12-07 18:04:162011-12-07 18:04:16Paper or plastic - which is best?
Here’s an interesting development. MP3 players such as the iPod Nano are getting smaller and smaller but due to advances in technology the sounds that they emit are getting better and better.
Whilst music fans are appreciating the portability of the smaller MP3 players together with the flexibility of having quality music players on their phones there’s a trend at the moment of the headphones getting bigger and bigger.
It used to be bigger players and smaller headphones but now it’s the other way around.
As is often the case it’s the fashion conscious younger generation that are driving the change.
HMV, the UK chain of music shops where people used to flock to to buy the latest CDs has unsurprisingly seem a dramatic drop in sales of CDs as more and more people are now buying their music online via Apple iTunes for example.
There is some short term hope for HMV though at least in terms of their sales of headphones and it’s been reported that their sales from headphones and other technology will shortly exceed their sales of CDs and DVDs.
Now these headphones aren’t cheap. Some of the better known high end headphone brands such as Dr Dre go for in excess of £350. That’s quite a lot when you consider the iPod Nano that the headphones could be plugged into retails for less than £100.
Manufacturers have started to segment the market nicely for headphones with for example the Bob Marley Reggae inspired “House of Marley” headphone range recently being launched by Bob Marley’s son Julian.
So, what’s next on the horizon in the business world when it comes to headphones?
I mentioned one of the best known brands of headphones Dr Dre earlier and you’ve no doubt heard of HTC which offer very good Smartphones and are in competition to Apple and their iPhone.
Well, earlier this summer HTC paid $300 million for 51% of a US company called Beats Electronics. What’s the main brand that Beats Electronics has? Yep, none other than Dr Dre.
This could be quite a smart move by HTC.
They are building up their technology and design on the Smartphone side of things and by buying Dr Dre they are getting a sudden jump up in headphone technology.
Will this be the sweet sound of success for HTC?
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-12-05 17:53:322011-12-05 17:53:32Does $300m mean bigger is better?
We blogged earlier this year about Michel Barnier, the EU internal market commissioner announcing plans to issue new laws which would dramatically impact the “Big 4” (namely Deloitte, Ernst & Young, KPMG and PwC.)
Well, these changes have now got a bit closer as the draft law has just been released.
In an attempt to reduce conflict of interest and to introduce more competition into the industry the main proposal of the draft law includes the requirement for the Big 4 firms to separate their auditing and consulting divisions in the EU.
This is a pretty big issue as in simple terms if the law becomes final it could prevent the Big 4 “audit firms” from providing any non audit related services such as consulting, providing tax advice or running training courses.
This could see a major restructuring of the audit profession.
Other provisions in the draft law include banks being banned from insisting that a company uses a Big 4 firm if they are to be lent money by the bank (at the moment a number of banks make it a requirement for a company to be audited by a Big 4 firm before they will release significant loans.)
There is also a proposed requirement for audit firms to be rotated every 6 to 12 years.
Perhaps unsurprisingly the Big 4 are reported to be against any changes to the current rules (after all as the saying goes, “how many turkeys would vote for Christmas?”).
I’m pretty sure though that the “mid tier group” of auditing firms that are below the Big 4 in terms of size such as BDO, Grant Thornton and Mazars would maybe take a different view to the Big 4 and be in favour of Mr Barnier’s views as this could open up a number of opportunities for them.
Before everyone that works at a Big 4 company starts rushing to rearrange the office furniture though it’s worth noting that the law at the moment is only draft and the EU states and the European Parliament have to provide the final sign off before the law becomes a reality.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-12-02 14:33:362011-12-02 14:33:36The Big 4 don't appear to be happy about this...
10 years ago today the term “BRIC nations” was introduced by Jim O’Neill of Goldman Sachs
It represents an acronym for the 4 largest developing countries that have the potential to become some of the world’s most influential economies and whilst the people of Burundi, Rwanda, Iceland and Costa Rica may well hope that one day their economies will become powerhouses it’s the nations of Brazil, Russia, India and China that are leading the way.
The BRIC nations represent over 40% of the world’s population and it’s estimated that China will have more middle income families than the US by 2013 and India will have more by 2020.
If you think about it that’s a lot of middle income families that will be wanting to buy a lot of middle income products.
There has been an interesting trend though and that is that many companies saw the BRIC nations as the “factories” of the world where products would be produced. Some also saw a huge market opportunity where European and American firms could target sales as these nations became wealthier. Manufacturers of middle income products such as electronics equipment and cars were no doubt licking their lips in anticipation.
There has however been a movement towards intra-BRIC trade. For example, India and China are major importers of energy whilst Brazil and Russia are big exporters of resources.
As a group the BRIC nations are becoming more economically mature but is there a new challenger to the BRIC nations?
Well up step CIVETS, a group of countries that represent 8% of the world’s population and whilst the acronym isn’t as catchy as BRIC, the CIVETS group have combined economies that are growing faster than the BRIC nations and have suddenly caught the attention of a lot of investors.
For those of you that are good at geography see if you can guess what CIVETS stands for…
It’s Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa.
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-11-30 14:01:552011-11-30 14:01:55Are the BRIC nations building a wall?
According to a report released yesterday by Eurostat, if you’re in the UK and you’re speaking to a woman then there is a 24% chance that she is obese (or to use less technical terminology, she is very fat).
At the other end of the “fat scale” are ladies from Romania who have the privilege of being the “slimmest nation” in the EU with only 7% of Romanian ladies being classified as obese.
So nearly 1 in 4 ladies in the UK are obese. From an environmental analysis point of view this increase in the number of fat people over recent years is a classic movement in the “Social” part of PESTEL analysis.
As well as having serious implications for the health of those individuals that are overweight the movement towards “fat nations” can have serious implications for businesses over the medium to long term.
In the private sector, Airlines for example will need to invest in bigger seats and spend more on fuel costs to move all this heavier weight around the world.
The public sector will also be impacted with for example hospitals needing to have stronger and bigger beds.
One interesting thing I noticed within the Eurostat report though was the following statement:
The share of obese persons also varies according to the educational level. For women, the pattern is again clear: the proportion of women who are obese falls as the educational level rises in all Member States.
Wow – this is interesting as surely it means that the cleverer you are, the less likely you are to be fat?
So does this means that all your hard work spent improving your educational levels by studying for ACCA and CIMA not only helps your career but also reduces your chances of being obese??
This must be an additional incentive for studying and it also provides a great excuse for any gentlemen that are reading this.
After all, if your wife or girlfriend happens to catch you looking at a slim lady then all you have to say is that you were simply “admiring her intellectual ability”…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-11-25 20:28:062011-11-25 20:28:06Will passing your ACCA or CIMA exams make you slimmer?
In most industries if a company had revenue of £153m and a wage bill of £174m there would be serious questions asked.
Manchester City are the current leaders of the Premier league in the UK and they have just released their annual financial results.
The figures show that as well as being top of the league in terms of football they are also bottom of the league in terms of their financial results.
Their income was £153m and their expenses £348m. The resulting loss of £195m is the largest loss ever reported in English football history.
A loss of £195m on sales of £153m would have alarm bells ringing for most companies but Manchester City have got wealthy investors.
Sheikh Mansour of Abu Dhabi has so far invested over £460m on players since 2008 and has plenty of cash to invest.
The European footballing body Uefa though have introduced “Financial Fair Play rules” which come into full effect in 2013-14 and require clubs to break even over three years.
The reason for this is that Uefa are keen to prevent football becoming a rich man’s toy and these new rules will prevent wealthy backers from simply throwing money at a team to make it successful without caring about the loss that arises.
After all, if you’ve got a personal wealth of several billion then what does the odd hundred million here and there matter?
Manchester City have stated that they are confident that they will achieve a break even position over a 3 year time period and one of their recently announced revenue streams is a lucrative 10 year sponsorship deal worth £400m with Etihad Airways.
Press reports though have pointed out that Etihad Airways is based in Abu Dhabi, the home of Sheikh Mansour who is a member of the emirate’s ruling Al-Nahyan family and questions have been asked as to whether the £400m sponsorship deal was higher than would normally have been the case and was simply undertaken at an inflated price to artificially reduce the loss to get to the required breakeven point.
As a lifelong supporter of Bristol City (struggling in the division below the Premier League) I sometimes question whether it’s good for the sport of football if only a handful of clubs get huge amounts of money pumped into them.
It’s worth noting however that I would of course quickly change my mind should a wealthy backer invest in Bristol City…
https://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.png00Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2011-11-23 15:00:142011-11-23 15:00:14So are they top or bottom of the league?
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