More than a coke…

When people think of Coca Cola, they almost certainly will have a red can or bottle with the ubiquitous “Coke Red” in their mind.

Coca Cola as a business though is much more than the coke drink.

Whether it’s organic tea, juices, coconut water, sports drinks, mineral waters, ready-to-drink coffees or protein drinks they’ve got it covered.

They have over 500 brands in their portfolio and the company has done a great job of diversifying into other non-alcoholic drinks. In the UK for example, they purchased Costa (the coffee chain shop) last October for £3.9bn.

They have just released their latest set of financial figures though and the market didn’t react favourably.

The company is quoted on the New York stock exchange and yesterday their share price fell by 8.5%. This was their largest one-day percentage decline for over 10 years.

The company reported their 4th quarter results and revenue had fallen from $7.5bn in the corresponding period last year to $7.1bn.

The company warned that weak overseas sales would hit profits this year. Areas highlighted as performing below expectations were Argentina, Turkey and the Middle East. There were also foreign exchange issues in connection with the strong dollar.

In summary, there were a few issues which spooked the investors a bit yesterday but it’s fair to say that the future looks ok for Coca Cola as their market value is still pretty impressive.

Even after the 8.5% fall the company is valued at $212 billion.

Burning calories and cash

Do you have a bank card and do you go to the gym?

If you do, then watch out if the gym has lockers which are locked using a code on a pin pad.

London accountant, Matthew Spencer, had nearly £10,000 stolen from his bank account and he believes it all happened while he was working out at an upmarket gym in Canary Wharf.

The fraudsters were very clever as it looks like they saw what pin code Matthew used when locking his locker and then when he was out of the changing room used that code to open his locker. Rather than steal his whole wallet though they only stole his HSBC debit card from his wallet.

Having taken his debit card they then correctly assumed that the pin code he’d used on the locker was the same for his debit card.

It was only later that day when Matthew went to buy a tube ticket that he realised his debit card was missing and after checking with the bank found that nearly £10,000 had been spent that day on computers, top restaurants and cash withdrawals.

Unfortunately for Matthew, the bank is refusing to refund the money as the card was used with the pin code. It’s currently being considered by the Financial Ombudsman Service but it’s not looking good for him.

The moral of this unfortunate situation though is that if you do go to the gym and use lockers with a pin code then make sure it is a different code from the one you use on your bank cards.

Something to drone on about…

Years ago, when I was an audit junior, I remember having to attend year-end inventory counts. Given that a lot of clients had 31 December year ends then a number of these inventory counts took place on 1 January which was never conducive to a great New Year’s Eve night out.

Things have moved on though and PwC has just undertaken their first inventory count using a drone.

The drone, which was manufactured and operated by UK drone company QuestUAV, was used to take over 300 images of a coal reserve in Wales owned by the giant German energy company, RWE.

The images were then used to create a “digital twin” on the coal pile in order to measure it’s volume. Impressively, the digital twin enabled the value of the coal to be calculated to within 99%+ accuracy based on the volume measurement.

Richard French, audit partner at PwC, commented:

“Coal stock has a material value on RWE’s balance sheet, so we carry out an annual stock observation and evaluation as part of our audit process. We observe the manual coal count carried out by RWE’s external surveyor, then assess the resulting data which feeds into the financial statements. The traditional stock count method involves climbing over the coal pile and using a two metre GPS tracking pole to measure the area and elevation from the ground at various points. The data is then used to build a contour of the reserves and estimate its volume.

“While the traditional method remains reliable and will still be used for RWE’s formal year-end financial statements, the drone trial was conducted to explore ways of challenging the traditional method of stock counting. It was a classic example of new technology challenging the old – and based on our results, the potential is groundbreaking.”

PwC went on to mention that there were several benefits including:

  • The traditional method of manually traversing the coal pile can take around 4 hours, whereas using a drone it can be done in half an hour – a reduction of 85%;
  • The drone captured c.900 data points per cubic metre, obtaining impressive overall accuracy levels of 2cm. This is compared to c.1,200 readings taken across the whole site using the traditional method, therefore the drone enhances accuracy by providing a true, continuous representation of the coal pile;
  • The preparation for the drone flight requires access to only a limited area of the coal pile and therefore poses less of a health and safety risk, particularly when parts of the coal pile are unstable; and
  • The flight does not interrupt normal operations on the coal pile, e.g. movement of machinery, and therefore is a less disruptive method.

All in all, a great use of technology and for any audit team members who previously had to climb over the coal, the use of a drone is no doubt very welcome news.

Banking benefits for babies…

Life can be tough for new mums when they go back to work after having a baby. Being away from the new arrival, tiredness and getting back into things at work can all increase the pressure on the new mum.

Goldman Sachs, the giant investment bank, used to have a pretty tough reputation when it came to employees. For example, they reportedly only used to give staff four hours off of work for bereavements.

Times are changing though and they have now becoming more flexible and family friendly for their workforce.

Goldman Sachs employs 6,000 people in the UK and they have become the first company in the UK to offer to pay for its breastfeeding working mums to courier their expressed milk back to their babies if they are travelling with work.

The bank told their staff that “Parenting and work can sometimes feel at odds. Goldman Sachs aim[s] to make the balancing act a little easier”.

Whilst some people may feel that this is a way of putting pressure on mums to return to work as soon as possible, it has to be said that the company offers some of the most generous maternity leave out there. They currently offer six months’ full paid maternity leave to new mums.

Whilst Goldman Sachs are the first company in the UK to offer this benefit to new mums, there are already several companies in the US that provide a similar “baby milk shipping” service to their staff.

IBM, Twitter, EY and Accenture all provide this benefit.

All in all, a nice initiative and I’m sure the new babies are especially happy.

Who are you sat next to?

If you’re in the office at the moment take a look at the person next to you. Would you say that he or she is a “good worker” or a “toxic neighbour”?

A recent bit of research by economists from Harvard Business School has shed some light on the type of person you should be sitting next to.

If you’re an “average worker” and you sit next to a hard working and diligent person then your performance is likely to improve.

Unfortunately though the opposite is true and if you’re an average person who sits next to somebody who isn’t very good at their job then that badly performing person could well take you down to their level.

The researchers studied data from seating plans and reports from over 2,000 employees. The performance of these employees was rated based on the time they spent to complete a task as well as quality and effectiveness. Their efficiency was based on how often they had to ask for help.

One of the interesting bits of the research was finding out whether when a person sat next to a high performing individual that person’s performance improved because they learnt from the better performing individual or they were inspired by him or her.

When the research team split these people back up again the average worker’s performance reverted back to the average level rather than stay at the high performing level. This implied that the improvement was not due to learning new skills but instead was due to being inspired by the good worker.

When it comes to sitting next to a “toxic employee” who doesn’t perform, the bad news is that the negativity rubs off on the good employee almost immediately.

So it may well be worth trying to sit next to the stars of the office rather than the toxic ones

A quick word of warning though and if the person you sit next to has recently asked their boss to move away from you asap then the chances are that you aren’t the star of the office but instead are…

Remind me – what was I going to buy?

Do you wish you had a better memory? Perhaps you do but you can’t remember whether or not you do.

If this is the case then help may be at hand.

University researchers have recently suggested a simple technique which could improve your memory.

Dr Mark Moss from Northumbria University led a research study which found that students studying in a room with the smell of the herb rosemary (in the form of essential oils) achieved 5% to 7% better memory results than students undertaking similar studying in a room without the smell of rosemary.

Dr Moss reported that the sense of smell in humans is highly sensitive and sends messages to the brain which can set off reactions and responses.

In the case of rosemary, the smell could well result in a better memory.

This view isn’t new though as ancient Greek students used to wear garlands of rosemary in their exams and Ophelia, the young noblewoman in Shakespeare’s play Hamlet said “There’s rosemary, that’s for remembrance.”

So, in conclusion, the next time you are studying hard for an exam it may be an idea to buy some rosemary essential oils to help your memory.

That is of course, if you can remember to buy some in the first place…

(Details of some of the work done by Northumbria University can be found here).

Happy New Desk

Well it’s that time of year again when a lot of people set themselves a New Year Resolution.

On average, approximately a third of people in the UK will set themselves a New Year Resolution with the most popular ones being to be exercise more, eat healthily and give up smoking and drinking alcohol.

New Year Resolutions have their origins in a variety of places.

The Babylonians, an ancient culture from the Middle East, used to make promises to the gods at the start of each year and the Ancient Romans used to start each year by making promises to Janus – the Roman God of beginnings and after whom the month of January is named.

The majority of resolution nowadays though are unsuccessful and a study from the University of Bristol found that 88 per cent of people who make New Year’s resolutions fail.

But what can you do if your resolution is to be healthier but you’re working long hours at the office?

After all, long working hours and keeping fit don’t tend to work well together.

Well, now there’s an answer to this problem as you can buy a treadmill desk.

Yes, lifespanfitness.com offer a selection of treadmill desks and treadmill desks can be pretty expensive. Some cost nearly £3,000.

That’s quite a lot of money and I’m not sure your boss would react too favourably if you asked him or her to buy you a desk which nearly £3,000.

Then again, you could point out that if you had a treadmill desk instead of the normal desk then you would be more productive as you would be running and wouldn’t be able to drink the bottle of wine that you normally have in the office whilst sat at your desk…

When is an ice cream not an ice cream?

It sounds like the start of a riddle but there’s an important underlying message. Namely, organisations should be monitoring the environment they are operating in to see if any changes could be impacting on their business.

A classic model for analysing the impact the external environment can have on an organisation is the PESTEL model. Those of you that are thinking of studying for your professional exams will possibly be thinking that it stands for Parties, Eating, Sleeping, Talking, Entertaining and Laughing but if you’ve passed your exams then you are probably more comfortable with the fact that it stands for Political, Economic, Social, Technological, Environmental and Legal.

Whilst all the components of this model can be important, one area which is particularly topical is the “social” component.

Within the social component one change which a lot of countries are currently seeing is people’s increased health awareness and the increase in demand for vegetarian (no meat) and vegan (no meat or dairy) food.

Ben & Jerry’s is one of the world’s leading ice cream companies and they no doubt have a very sophisticated approach to monitoring the environment. One of the more impressive things they’ve done over the last couple of years is to launch some new products which will appeal to the vegan market.

If you are a vegan, then you don’t eat meat or dairy products and whilst you are unlikely to find an ice cream made out of chicken you are extremely likely to find an ice cream made out of milk.

Ben & Jerry’s though have nicely got around this problem by launching a number of flavours of vegan ice cream.

“How can they be vegan if they are ice cream?” I hear you say.

Well, the vegan ice creams are made with almond milk as opposed to dairy milk. Now technically that means they are frozen desserts and not ice cream but I can’t see any vegan being particularly upset about that.

The non dairy range has recently expanded in the UK and Ben & Jerry’s have just launched their first coconut flavoured vegan ice cream.

It’s called “Coconutterly Caramel’d” and blends coconut-flavoured ice cream with ribbons of caramel, Fair Trade chocolate, and cookies.

“Coconut ice cream, caramel, chocolate and cookies” – I don’t know about you but just reading that description makes me feel peckish.

Should you employ good looking people?

Should you employ good-looking people or not so good-looking people?

Whilst the obvious answer would appear to be that it doesn’t matter what a person looks like as long as they can do their job properly, researchers in Japan have found out that the attractiveness of an employee can have an impact on the sales of a business.

Interestingly though, it’s probably not the correlation most people would think applies.

Researchers at the Chinese University of Hong Kong studied retail sales in shops and found that the more attractive the shop assistants of the opposite sex were, the lower the sales were. The researchers found that male shoppers were less likely to go into the shop if the more attractive woman in the research study was serving.

Even if they entered the shop with the attractive shop assistant in it, only 40% of them bought something. This compared to 56% who purchased something when a less attractive assistant was serving.

Lisa Wan of the University said “attractive service providers can lead consumers to become self-conscious or embarrassed. This is especially true when the provider is of the opposite sex. Even when the attractive salesperson is the same sex, consumers may feel a sense of inadequacy through self-comparison.

In either case, the shopper may avoid interacting with physically attractive providers, rendering the salespeople ineffective”.

It’s worth mentioning though that the scientists undertaking the research were monitoring a shop selling figures from Japanese comics and the male shoppers were obsessed with computers.

“Male shoppers obsessed with computers” – surely they would only notice the female shop assistant if she was holding a computer?

(Un) Happy Christmas Mr Orangutan

Advertising can have a dramatic impact on what people buy and in countries which celebrate Christmas, one of the busiest buying seasons is upon us.

It’s traditional in the run up to Christmas in the UK for the big retailers to release a major TV advert. The retailer John Lewis for example has released it’s Christmas advert staring Elton John (who reportedly received a fee of £5 million for his input).

For me though the clear winner in the Christmas adverts is the “Rang tang” advert by the supermarket chain Iceland.

The advert was originally produced by the global charity Greenpeace and highlights the destruction of the rainforest caused by the production of palm oil (palm oil is found in many everyday products ranging from food staples such as bread to cosmetics).

The companies that produce palm oil are cutting down vast amounts of trees and as a result the Orangutan apes are really suffering. In simple terms, their homes are being destroyed and they are dying as they have nowhere to live.

Iceland spent £500,000 on putting the advertising campaign together and have pledged to remove palm oil from all their own brand products.

The advert, which was voiced over by actress Emma Thompson, has run into some problems with Clearcast, the body which approves or rejects television adverts in the UK. They have ruled that it is too political and as a result it has been banned from being shown on television.

The good news for this advert though is that Clearcast don’t regulate social media and the advert has been a hit on Facebook and YouTube.

At the time of writing, the advert had been viewed over 5 million times on YouTube.

If you haven’t seen it yet, I’d urge you to watch it below as it’s a great advert which raises awareness of an important global issue.

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