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Cash is king but jewellery looks nicer…

Before cash came along, people used to barter. Somebody who had grown vegetables would exchange potatoes they’d grown with a baker who’d baked bread. A farmer would exchange a cow with someone who had grown rice. And so on…

This was all very well if you had lots of vegetables or lots of cows but exchanging 1,000 kg of potatoes for the latest Xbox or taking a cow with you to pay for cinema tickets was never going to work.

As a result, along came cash.

The Lydians (now part of Turkey) are widely believed to be the first Western culture to make coins and their first coins came in to existence way back around the time of 700 BC.

Since then things have developed.

Bills of Exchange were introduced in Italy in the 12th century (Bills of Exchange are paper documents which enable traders to buy and sell goods without having to carry cash).

The Bank of England introduced printed cheques in 1717.

The first credit card in the UK was issued in 1966.

Online banking was launched in the late 1990s.

Through all of this cash has remained and there are now 180 currencies recognised as legal tender by the United Nations member states.

Things are changing though and Apple, Samsung and Google all have contactless payment systems whereby money is loaded onto an app on your phone and payment can be made by scanning your phone at a contactless terminal.

The company Ringly have taken things a step further though and have a partnership with MasterCard which enables you to pay for items with the tap of a ring.

The rings that Ringly sell (including the ring shown in the photo above) cost between $195 and $260 and use technology to link the ring to your phone to access the Ringly app. The app will then enable payment to be made. This is pretty impressive given that all the technology has to be fitted onto the surface of the ring.

The end result is that you will be able to purchase items via a contactless terminal by simply tapping your ring without getting your wallet or purse out.

So, is this a genuinely useful idea or just a “gimmick”? After all, you’ll still need your phone with you to make a payment.

Either way, it’s a nice excuse if you were thinking of buying a new ring.

Would you stand for this?

Do you work in an office? Do you sit down at your desk most of the working day?

If you do, then it may be a good idea to ensure you stand up and move around a bit during the day.

Recent research has estimated that 1 in 9 deaths can be blamed on sitting down for at least 6 hours a day.

Let’s pause for a moment as that’s a shocking figure!

In the UK alone that would equate to thousands of people dying every year due to lack of movement and the cost to the National Health Service is estimated at £700 million annually.

Research published in the Journal of Epidemiology and Community Health estimated that 17% of diabetes, 5% of heart disease and 8% of lung cancer cases could be avoided with less sitting.

Leonie Heron from Queen’s University Belfast was the lead author of the study and said “You need to put your body under a little bit of stress to maintain a healthy heart and whole system”.

She went on to say that “It suggests that it is bad for our health how our working lives are structured for a lot of people. You can attenuate that risk by being more active in your leisure time, but it’s something employers can look at. Maybe they should be providing opportunities for employees to be active during the day, perhaps making sure people move every hour…or providing opportunities during lunch and coffee breaks.”

My guess is that a lot of you do sit down for at least 6 hours a day working at your computer. It’s probably a good idea therefore to remind yourself to get up and move a bit when you can as it will be good for your health.

Unless, that is of course, you’re getting up to walk out of the office to have a cigarette…

Superman helps hackers.

It’s a sign of the times that hackers are constantly on the lookout for weaknesses in people’s computer security systems.

Individuals can go a long way to making things more difficult for the hackers by ensuring they have up to date anti-virus software in place and that their passwords are good passwords.

But what is a good password?

Before answering that, let’s look at some bad passwords.

The National Cyber Security Centre (NCSC) released a report on some of the most hacked passwords. They analysed hacked accounts where details were being sold by hackers.

In one year alone an astonishing 23 million people around the world with the password “123456” were hacked.

You should really hang your head in shame if your password is 123456 as it’s very easy to hack into.

OK, what about the name of your favourite football team as your password. Would that provide you with more protection?

Alas not as football team names are very common passwords.

Roughly 280,000 accounts were breached in a year with the password “Liverpool”. 

“Chelsea” and “Man-Utd” passwords were breached 216,000 and 59,000 times respectively.

Using the names of your favourite music artist also isn’t a good idea.

The most popular passwords using the names of music artists are “blink182” and “50cent” (these are probably popular as they satisfy the need to have letters and numbers in a password).

If you’re a fan of superheroes then avoid Superman, which was the most common superhero inspired password.

So, onto good passwords.

According to Ian Levy, the Technical Director of NCSC, “Using hard to guess passwords is a strong first step and we recommend combining three random but memorable words. Be creative and use words memorable to you, so people can’t guess your password.”

There you go.

As easy as 123 or should that be, as easy as “123456”…

I’ll stick to that…

New product innovation is vital for lots of organisations. Sometimes though the idea for a new product can come from unusual places.

VELCRO is a type of hook and loop fastener which we’ve all seen. It has that characteristic “rasping” sound when you pull it apart and will stick back together with the minimum of fuss. It’s commonly used in clothing and shoes to replace buttons, zips and laces.

So, who came up with the idea?

George de Mestral was a Swiss engineer and in 1941 he got the inspiration for VELCRO whilst out with his dog in the Alps.

He noticed that as his dog ran past Burdock plants, the burrs of the plant (a tiny seed covered in hundreds of microscopic ‘hooks’) would catch onto his dog’s fur.

That was his “eureka moment” and he spent the next 10 years investigating how he could get “hooks” like those found on the plant to engage with the “loops” found on materials.

The key thing was to be able to secure it together but then pull it apart (and then keep on repeating this without it breaking!)

Luckily, he had friends in the weaving industry who helped him work on prototypes and the end result was that in 1955 he filed his first patent for the hook and loop fasteners.

He also needed a distinctive name to go with his invention and he came up with VELCRO.

VELCRO is in fact a combination of the French words “velour” (velvet) and “crochet” (hook). VELCRO therefore in effect means “hooked velvet”.

Since it’s launch it has gone on to become one of the most used items in clothing and all of this came about as a result of a man walking with his dog in 1941.

Exams for sale….

One of the five fundamental ethical principles is Integrity.

Being straightforward and honest is a vital characteristic of being a professional accountant.

Most people who are studying for their professional exams have one thing on their mind. Namely, to pass their exams but four students who were studying for their ACCA exams had other things on their minds and at the same time, were not the brightest individuals out there.

What they planned to do was to register for some Computer Based Exams (CBEs) and then whilst sitting the exams they would use their mobile phones to take photos of the computer screen showing the questions. They would then sell these photos with the questions on them via the internet.

The four individuals involved, Chen Yiyun, Hiujiao Ru, Zehui Gong and Ziying Wang decided to sell the questions on Taobao Marketplace, a Chinese shopping website.

They no doubt thought that this was an extremely clever way of making some money. What could possibly go wrong by taking photos of the questions and then selling them online?

One of the other fundamental ethical principles is that of Professional Competence.

Now, if these individuals had even a minuscule amount of Professional Competence, they would have reviewed the photos before selling them.

Alas for them they didn’t review them.

If they had reviewed them, they would have seen at the top of the computer screen in the photos their ACCA student registration number and the exam centre.

ACCA were made aware of the questions being for sale and made a test purchase on the Taobao Marketplace. Given the student registration numbers were on the screen, they didn’t need a team of top detectives to identify the individuals involved.

Unsurprisingly, the four individuals are now ex-students of ACCA having been found guilty of misconduct and they were ordered to pay costs ranging from £3,500 to £7,000.

Some spicy people to follow…

There are over 300 million twitter accounts and more than 500 million tweets are sent per day. That’s an impressive figure that works out at over 5,000 tweets per second.

It can be a useful tool for companies. They can use it to engage with their customers and potential customers by way of branding and promotional activities. They can also use it as a form of a helpdesk or customer support. The Dutch airline KLM for example uses Twitter and Facebook to enable customers to contact them and get a reply within an hour.

Most companies will use Twitter to promote items or get their message out but Twitter user @edgette22 has identified a secret the fast food giant KFC has been keeping within their Twitter account.

KFC is the world’s second-largest restaurant chain (as measured by sales) after McDonald’s, with nearly 20,000 locations globally in over 100 countries.

They also have over a million Twitter followers.

But they only follow 11 people.

And the 11 people they follow are a strange mix.

KFC follows:

Geri Halliwell, Mel B, Emma Bunton, Mel C and Victoria Beckham (in other words the 5 ladies who made up the Spice Girls).

They also follow Herb Scribner, Herb J. Wesson Jr, Herb Waters, Herb Dean, Herb Sendek and Herb Alpert.

Or to put it another way, KFC follow five Spice Girls and 6 Herbs.

Five spices and six herbs?

That sounds familiar as the secret recipe for KFC chicken is 11 herbs and spices.

Either the social media department of KFC were having a quiet day and decided to play a few games or it was a deliberate move to get people talking about KFC when their followers were noticed.

Either way, congratulations are due to whoever was behind the idea.

Enjoy the freeze…

Working from home has become a fact of life for a lot of people due to the Covid-19 pandemic. Synonymous with working from home are the video conferencing facilities such as Zoom, Google Meet and Microsoft Teams.

The growth in use of these technologies has been phenomenal. Back in December 2019 for example there were on average 10 million daily meeting participants on zoom. Fast forward to today and the daily averages are around 300 million.

The technologies have been incredibly useful for keeping teams together and maintaining working practices but with back-to-back zoom meetings sometimes going on for hours some people are suffering from “zoom fatigue”.

There’s also the issue of what happens if you are desperate for a cup of coffee or a call of nature during a particularly long and boring meeting?

It’s pretty obvious on the screen if you try and sneak out for a couple of minutes and taking your laptop with you to the kitchen or toilet is best avoided.

Enter freezingcam.com which as the name suggests enables you to simply click a button on screen and your webcam will freeze and give the impression that you are having internet connection issues.

After quickly popping out of the room to do whatever you wanted to do, you can get back to your desk, click the unfreeze button and lo and behold you are back at the meeting and everyone thinks you were having internet issues rather than looking for those chocolate digestive biscuits in the kitchen…

Don’t worry, he’s ok…

A few years ago if a company wanted to advertise their products they mainly used the traditional media methods of TV, radio and print.

Nowadays the world is awash with viral marketing and social media promotion.

Although the main delivery methods used in advertising have no doubt faced rapid change I would argue that the basic technique of getting peoples attention and keeping it until the message is delivered in a memorable way is still key.

The “advert” below is in my opinion a great example of how advertising should be done.

It’s got the viral marketing angle to it as it’s great for viewing on phones and computers (and of course pausing and replaying it). It also works for the traditional TV ads.

What’s nice about it is that in less than one and half minutes it covers a range of human emotions. There are also no words spoken and the only text comes up at the end.

It also highlights the power of music in advertising. Three well known songs were used so there was no need to specially commission some song writing.

If you watch the advert without the music it has a far lower impact.

Have a look (and listen) and see what you think.

Oh and in case you get concerned mid way through don’t worry as it’s got a happy ending.

The interesting thing about this though is that it’s actually a fake advert. It was created by filmmaker John Nolan to showcase his animatronics skills.

John is clearly a creative genius when it comes to animatronics film making and I’m sure the big cheese companies would love to have somebody with his skills working for them.

Is this worth smiling for?

Are you happy when you spend money? I guess the answer depends on what you’re spending the money on but over in China, KFC have technology which enables a person to pay for their KFC meal with a smile.

Yes, a smile.

Nothing else is needed – no bank card, no phone app. Just a smile.

That’s a pretty advanced system and involves facial recognition technology.

Customers who want to get their dose of fast food at the KFC branch in Hangzhou can leave their cash and cards behind and instead smile at a scanner, press confirm and then hey presto you’ve paid for your meal without moving your hands and you will soon be tucking into your Kentucky Fried Chicken.

Payment is taken from a cash account which has been linked to the person’s face.

China has some of the most advanced facial scanning technology in the world. Collecting images of the public doesn’t need any consent in China and the technology is likely to spread.

For example, it’s been reported that students in several universities in China are now registering by scanning their faces and lecturers will soon be able to track the facial expressions of students to see how well they are following the lectures.

It may be advisable for these students to master the act of hiding those yawns during a boring lecture and instead start to practice for the KFC they’re planning to get after the lecture…

Would you do this with your job?

If a company outsources jobs, in some situations it can be seen as good business practice but if an individual outsources his own job then what is that seen as?

Outsourcing is where a company gets another organisation to undertake a job or business function that would have previously been completed in-house. This is often done for cost saving reasons and an illustration of outsourcing would for example be getting another organisation to maintain your payroll.

A while ago there was the first example I’d heard of an individual outsourcing his own job.

Verison is one of the leading telecoms companies in the US and their security team provided details of a case study where an employee by the name of “Bob” who was a top developer had actually outsourced his own job to China without his employers knowing about it.

In other words, he had received his salary from his employers but had personally paid for somebody else to do his job at a cheaper rate without his employer knowing about it!

He was paid in excess of USD 100,000 for his job and yet he was paying a Chinese consulting firm less than 20% of that to do the job for him.

According to Verison a typical day for Bob was:

9:00 a.m. – Arrive and surf Reddit for a couple of hours. Watch cat videos (!!)
11:30 a.m. – Take lunch
1:00 p.m. – Ebay time.
2:00 – ish p.m Facebook updates – LinkedIn
4:30 p.m. – End of day update e-mail to management.
5:00 p.m. – Go home

Despite not actually doing any of the work himself his performance reviews were excellent and he had been regarded as the best developer in the building.

So, in summary – he was paid a pretty good salary and all he did was play around on the internet.

All his real work was outsourced by him to a Chinese company. He paid them whilst his employer paid him 5 times the amount that he had paid the Chinese company.

Bob lost his job but it does raise an interesting debate as when a company outsources it’s seen as a clever move but when an individual outsources their own job they end up losing that job.

Anyway, whilst you’re thinking of that particular point I’d like to mention that the next blog article will be written by a Chinese company but please don’t tell my employer.

Meanwhile I’m off to watch some cat videos…

Flying high with creativity.

Sometimes a little bit of creative thinking can go a long way. This bit of creativity though went a very long way indeed.

Creativity can add value to all types of businesses and this particular project involved technology and one of the largest sea birds.

There are 22 species of the albatross bird. With a wingspan of up to 3.5 metres, the wandering albatross species has the largest wingspan of any living flying bird. Importantly for this project though, they are also capable of flying long distances out to sea.

Illegal fishing by trawlers can seriously impact on fish levels. Organisations tasked with protecting fish levels can find it almost impossible to prevent this illegal fishing. In simple terms, the ocean is very large and the boats are pretty small so keeping track of them and what they are fishing for is very difficult.

In an innovative project led by the French National Centre for Scientific Research, 169 Albatrosses have been equipped with sensors. If the birds are in the vicinity of a boat, these sensors are able to tell whether the boat’s Automatic Identification Systems (AIS) are switched off.

Having the AIS systems switched off on a boat is common when the boat is fishing illegally.

The beauty of this project is that the albatrosses can cover huge areas and when the sensors identify boats with their AIS switched off, the enforcement boats can head to that location to investigate further.

The initiative was trialled off the coast of New Zealand and over a 6 month period the birds located 353 boats, 37% of which were not emitting the AIS signal.

Best to take it back…

Most of you have probably had an interview. In fact, some of you may have had a number of interviews but a boss of one of the top companies in Australia has recently disclosed a pretty unusual way of deciding who not to offer a job to.

Trent Innes, who heads up Xero in Australia said that he will greet the person when he or she arrives for the interview and then take them to the kitchen to offer them a drink before heading to the meeting room with the drink. Even if they aren’t tea or coffee drinkers they will generally walk away with a glass of water.

He explained in the Venture Podcast with Lambros Photios that after taking the drink back for the interview “one of the things I’m always looking for at the end of the interview is, does the person doing the interview want to take that empty cup back to the kitchen?”

He explained that what “I was trying to find was what was the lowest level task I could find that regardless of what you did inside the organisation was still super important that would actually really drive a culture of ownership.”

He went on to say, “You can develop skills, you can gain knowledge and experience but it really does come down to attitude, and the attitude that we talk a lot about is the concept of ‘wash your own coffee cup’.”

That’s quite a smart move by Mr Innes as he said that attitude was the most important trait he looked for when hiring people.

He said that “Especially in a fast growth company or a start-up environment or scale up environment – you need people with a really strong growth mindset and that comes back to their attitude.”

So, how many interviewees do you think offered to take their cups back?

Perhaps surprisingly, the number of people who offered to take their cup back to the kitchen was pretty high. According to Mr Innes only 5 to 10 per cent of the interviewees didn’t offer to return their empty coffee cup back to the kitchen.

So there you go. If you’re attending an interview and you go to the kitchen with the boss to get a drink, it’s probably a good idea to offer to take the cup back.

A great recovery

We’ve all made mistakes but the key thing is how you recover from those mistakes. ASOS, the global internet clothing company recently made a mistake but recovered from it really well.

ASOS is an incredibly successful company. They sell over 80,000 products on their website and last year had over 15 million active customers and sales of nearly £2 billion.

One thing they are not that good at though is using the spell check function as they printed 17,000 packaging bags with the slogan “discover fashion online” spelt using “onilne” instead of “online”.

Now, what would you have done in that situation?

Would you have ignored it and hoped that no one noticed or cared about it?

Would you have scrapped the bags?

ASOS did neither of those and recovered brilliantly by tweeting:

“Ok, so we *may* have printed 17,000 bags with a typo. We’re calling it a limited edition”.

So, depending on how you look at it you’ve either got a bag with a typo on it or a limited edition collector’s item.

A brilliant recovery by ASOS. Turning a typo into some great publicity.

An unexpected ending…

A lot of you may have been on business trips but I bet your trip wasn’t as exciting (and tragic) as this gentlemen’s trip was.

What was also surprising was that his employer was found liable for his death as it was classified as an industrial accident.

The exact cause of death was a cardiac arrest whilst he was having sex with a stranger he had met on the business trip.

Now, whilst having a heart attack during sex with a stranger probably wouldn’t meet most people’s definition of an “industrial accident” a French court found otherwise. The court stated that the employer was responsible for any accident occurring during a business trip and ruled that his family were entitled to compensation.

The man who died on the job, named as Xavier X, was working as an engineer for TSO, a railway services company based near Paris and his employer had perhaps quite reasonably argued that he was not carrying out professional duties when he got into an extra marital relationship with a total stranger in his hotel room.

This opinion though wasn’t accepted by the court and they upheld the view that sexual activity was normal, “like taking a shower or a meal”.

As a result of it being classified as a normal activity on a business trip, the death was considered to be an industrial accident and under French law, partners or children of industrial accident victims receive up to 80 per cent of their salary until what would have been the person’s retirement age, with pension contributions paid from then on.

An Apple for 100 Companies..

Whilst a lot of companies around the world are struggling or going out of business due to the Covid-19 pandemic, some are doing very well.

Apple is currently the world’s most valuable company and it’s share price has shot up during the pandemic. Like a lot of tech companies, Apple’s valuation has increased as it’s expected to do well in the post Covid-19 world where people are more reliant on tech as they work and shop remotely.

Apple’s valuation is pretty spectacular and at the time of writing the value of Apple is $2.3 trillion (or to write it in it’s full glory $2,300,000,000,000).

To put that into perspective, the valuation of Apple is now higher than the value of the 100 largest companies in the UK – the market value of the FTSE 100 (the 100 largest companies in the UK) is $2.1 trillion compared to Apple’s $2.3 trillion.

Apple’s shares also recently rose by 3.4% due to a four-for-one stock split.

As the name suggests, a stock split is where the shares are split into more shares. The underlying value of the company doesn’t change as it is merely dividing the shares into a larger number of shares.

For example, if you held 1 share before the split which was worth $8, after the split you would hold 4 shares which (in theory) would be worth $2 each so your total holding would still be valued at $8.

Each individual share in Apple though was trading at over $500 before the split and after the split the equivalent value of the new shares was up by 3.4%.

One of the reasons share prices can increase when there is a stock split is that the shares are now within the reach of a larger proportion of individual buyers.

Some individuals who may not have been able to afford to spend $500 on a share may instead be able to spend $125 on a share.

This “opening up” to a wider range of shareholders can cause the share price to increase.

Either way, I’m sure that shareholders of Apple are pretty pleased with the performance of the company.

The most valuable car company is…

Which of the following two motor manufacturers would you say is the most valuable?

The first one produced 2.4 million cars whilst the second one produced 103,000.

This isn’t a trick question but an illustration of how market valuation is very much based on expectations of future rather than historical performance.

The car manufacturer who produced 2.4 million cars was Toyota and up until yesterday was the highest valued motor manufacturer in the world.

The company that only produced 103,000 cars was Tesla and yesterday it’s shares increased to above $1,000 for the first time. This valued the company at £207 billion which was over $6 billion more than Toyota was valued by its investors.

So, despite only producing approximately 4% of Toyota’s production, Tesla is currently the most valuable motoring manufacturer in the world.

There are views that the market sees Toyota as a lumbering giant who is being slow to get into full electric vehicles whilst Tesla is leading the way in terms of the future of driving and electric vehicles in particular.

Tesla certainly seems to have turned the corner. After years of making losses, Tesla has reported 3 straight quarters of profits and is now worth more than Ford, General Motors, Honda and Fiat Chrysler combined.

As well as being pretty innovative in terms of their car designs, Tesla have come up with an impressive idea for their car names.

Earlier this year, Tesla’s Senior Director of Artificial Intelligence Andrej Karpathy gave a presentation on the use of artificial intelligence for full self driving.

During the presentation it became clear that the names of the cars spelt out a nice marketing message.

Their current car models are the Models S, 3, X and Y which near enough spells out SEXY (they couldn’t have the Model E as Ford had already trademarked that so Tesla called it the Model 3 but stylised the 3 so that it looked like E).

They also have 4 vehicles in the pipeline.

Namely, the Cybertruck, the All-Terrain Vehicle, the Roadster and the Semi.

The first letters from the names of the 8 Tesla vehicles spell out SEXY CARS…

Time up for Swiss watches?

Switzerland has a reputation for being the home of some of the most prestigious watch manufacturers.

Omega, Tag Heuer and Breitling are just three if the many famous brands of Swiss watches that produce extremely high-quality timepieces.

But things are changing though and there’s a modern-day challenger to their dominance.

That modern-day challenger is Apple.

Last year Apple sold more watched than the entire Swiss watch industry.

A recent report by Strategy Analytics estimated that Apple sold 30.7 million smartwatches last year (an increase of 36% on the 2018 figure).

Estimates for the entire Swiss watch industry showed sales of 21.1 million units last year (a 13% fall on the 2018 figures).

This is a difficult time for the Swiss watch industry as they face a number of challenges.

The younger generation especially are keen on the tech side of watches and these are very much in fashion.

Although some Swiss watch brands such as Swatch and Tissot are launching their own smart watches, their competencies and skills are very much based around the mechanical engineering of watches compared to software engineering which is needed for smart watches.

Another major challenge is their distribution channels and where they are sold.

Swiss watches are typically sold in jewellery shops whereas smart watches such as the Apple watch are sold in phone shops and Apple stores.

Certainly a challenging time for the Swiss watch industry.

Will these Swiss watch brands survive?

Only time will tell…

Manchester Utd and Deloitte

Deloitte has stated that Manchester United are better than Liverpool.

Now before anyone starts getting concerned that Deloitte are moving away from finance and becoming football pundits, I should stress that I’m referring to the Deloitte Football Money League.

Deloitte has been compiling the Football Money League since 1996/97 and the League lists the top 20 clubs in the world for revenue in a football season. They have recently released the figures relating to the 2018/19 season and a few records were broken.

The combined revenue for the 20 richest clubs in the world grew by 11% and reached a new high of €9.3bn (£8.2bn).

It’s a Spanish top two for the second consecutive year. This time though the positions are reversed with Barcelona taking top spot and Real Madrid dropping to second place.

In terms of the fortunes of the eight English Premier League clubs in the table, Manchester United remains in third with revenue of €712m.

United’s closest Premier League rivals, Manchester City and Liverpool, generated revenues of €611m and €605m respectively.

The Deloitte Football Money League measures a club’s earnings from match day revenue, broadcast rights and commercial sources, and ranks them on that basis. The study doesn’t include player transfer fees though.

More details on the report can be found here and the top 10 in the league are:

1 Barcelona €841m
2 Real Madrid €757m
3 Manchester United €712m
4 Bayern Munich €660m
5 Paris Saint-Germain €636m
6 Manchester City €611m
7 Liverpool €605m
8 Tottenham Hotspur €521m
9  Chelsea €513m
10 Juventus €460m

Would the real Hugo Boss please stand up?

Joe Lycett is a British comedian. In fact, I should say that Joe Lycett used to be a comedian because although the person still exists his name doesn’t.

This sounds all very confusing and also, what has it got to do with the leading fashion house, Hugo Boss?

Like most large companies around the world, Hugo Boss defends it’s name when it feels other businesses are using similar names which could cause confusion in the eyes of the consumer.

If for example you decided to set up a clothing brand called “Hugo Bass” I’m pretty sure Hugo Boss would take legal action against you.

Hugo Boss was involved in a high-profile case involving a brewery in Wales called Boss Brewing and in particular two of the beers that it made called Boss Boss and Boss Black.

Hugo Boss took legal action against Boss Brewery but it was held that there was no need for the Brewery to change it’s name.

That was all very well for the Brewery but it cost them a significant amount of money in legal fees to defend the issue in court and for a small business that was challenging.

Joe Lycett wasn’t happy about this and decided to legally change his name as a protest.

His new name is… yes, you guessed it… Hugo Boss.

He tweeted a picture of the official confirmation of his name change and wrote

“So @HUGOBOSS (who turnover approx $2.7 billion a year) have sent cease & desist letters to a number of small businesses & charities who use the word ‘BOSS’ or similar, including a small brewery in Swansea costing them thousands in legal fees and rebranding.

It’s clear that @HUGOBOSS HATES people using their name.

Unfortunately for them this week I legally changed my name by deed poll and I am now officially known as Hugo Boss.

All future statements from me are not from Joe Lycett but from Hugo Boss. Enjoy.”

In what could have been a bit of bad PR for Hugo Boss (the company), they responded well to the new Hugo Boss (formerly Joe Lycett).

They released a statement saying: “We welcome the comedian formerly known as Joe Lycett as a member of the HUGO BOSS family.

As he will know, as a ‘well-known’ trademark (as opposed to a ‘regular’ trademark) HUGO BOSS enjoys increased protection not only against trademarks for similar goods, but also for dissimilar goods across all product categories for our brands and trademarks BOSS and BOSS Black and their associated visual appearance.

Following the application by Boss Brewing to register a trademark similar to our ‘well-known’ trademark, we approached them to prevent potential misunderstanding regarding the brands BOSS and BOSS Black, which were being used to market beer and items of clothing.

Both parties worked constructively to find a solution, which allows Boss Brewing the continued use of its name and all of its products, other than two beers (BOSS BLACK and BOSS BOSS) where a slight change of the name was agreed upon.

As an open-minded company we would like to clarify that we do not oppose the free use of language in any way and we accept the generic term ‘boss’ and its various and frequent uses in different languages.”

Fancy working for the Queen?

I’m not sure where you work or what your office is like but my guess is that it’s not as historic as where you would work if you were successful in applying for this job.

The Royal Family has advertised for a new Management Accountant to look after the “Privy Purse” (the British sovereign’s private income). The job is based at Buckingham Palace.

Candidates for the job need to be qualified and should have “outstanding problem-solving skills”. They will need to produce management information and financial accounts and the advert promises that “no two days will be the same and the deadlines we work to will stretch you. Yet in all that you do, you’ll rise to the challenge and deliver faultless accuracy and a first-class service to this unique organisation”.

It’s not just a solid knowledge of figures that they require as the advert goes on to say that candidates need to demonstrate that they are “as good with people as you are with numbers, which is crucial given the customer focussed nature of this role”.

Now let’s get down to the exciting part and how much are they prepared to pay for this position?

According to leading recruiter Robert Half, the average salary for a Management Accountant in London is currently £58,100.

The salary that is being offered for the Royal job is £40,000.

Cashless or cash?

Over 1 billion consumers are forecast to use cashless payment methods in 2020. Contactless cards and smartphone payments can make payments very easy for an individual and for the retailer it avoids security issues dealing with cash.

A number of shops are moving to “cashless” shops where all the payments have to be made by contactless cards or smartphone apps such as Apple Pay.

Not everyone is happy though as to make a cashless payment you need one important thing.

Namely, a bank account.

Globally, 1.7 billion adults do not have a bank account and whilst you may be thinking that these people without bank accounts are in the emerging markets around the world, that’s not always the case.

New York City, is one of the most famous cities in the world.

According to a recent report by the New York City Department of Consumer and Worker Protection (DCWP), 354,100 households (11.2 percent) have no bank account (unbanked) and another 689,000 households (21.8 percent) have a bank account but use alternative financial products for some banking needs (underbanked).

In other words, 33% of the New York City households are either unbanked or underbanked.

That’s a pretty big proportion and as a result, the New York City Council has voted to require shops and restaurants to accept cash for payments of USD 20 or less.

The law is expected to be in place by the end of 2020.

New York won’t be the first city in the States to ban cashless stores as last year Philadelphia and San Francisco banned them.

Whilst several retail organisations have appeared to be championing cashless shops it’s looking like it won’t be possible in a number of locations around the world.

These organisations may be initially frustrated at being prevented from being cashless but in reality, this isn’t necessarily a bad thing. As well as the ethical debate about refusing to accept people who can only pay in cash, if they did go cashless they would be missing out on a significant part of the population who want to spend their cash, albeit “cash” and not “cashless cash”.

Ericsson fined $1 billion for bribery.

The Swedish telecommunications group Telefonaktiebolaget LM Ericsson (or Ericsson as most people refer to it as and how my spell checker prefers) is an incredibly successful organisation.

The group provides services, software and infrastructure in information and communications technology.

Oh, and they were also recently fined $1 billion to settle bribery charges.

The company was founded in 1876 by Lars Magnus Ericsson and now employs nearly 100,000 people and operates in around 180 countries.

Not all of these employees were ethical though and Ericsson’s Egyptian subsidiary recently pleaded guilty to conspiracy to violate the anti-bribery provisions of the US’s Foreign Corrupt Practices Act.

This bribery had been taking place for 17 years and was reported to have netted the group business worth more than $400m.

US attorney Geoffrey Berman was quoted as saying “Through slush funds, bribes, gifts, and graft, Ericsson conducted telecom business with the guiding principle that money talks.” He went to say “Today’s guilty plea and surrender of over a billion dollars in combined penalties should communicate clearly to all corporate actors that doing business this way will not be tolerated.”

The bribery took place in a number of countries. It appointed agents and consultants to bribe government officials in Djibouti, China, Vietnam, Indonesia and Kuwait.

One example of the techniques involved was in Kuwait where an Ericsson subsidiary agreed a payment of approximately $450,000 to a “consulting company”.

No consulting actually took place but a fake invoice for the consulting services was issued to Ericsson.

As a result of this payment, inside information about a tender for the modernisation of a state-owned telecommunications company’s radio access network in Kuwait was obtained.

The end result was that the modernisation contract, which was valued at $182m, was awarded to an Ericsson subsidiary. In return Ericsson paid the $450,000 to the consulting company and improperly recorded it in its books as consulting fees rather than as a bribe.

IRS Criminal Investigation head Don Fort was quoted as saying that “Implementing strong compliance systems and internal controls are basic principles that international companies must follow to steer clear of illegal activity. Ericsson’s shortcomings in these areas made it easier for its executives and employees to pay bribes and falsify its books and records. We will continue to pursue cases such as these in order to preserve a global commerce system free of corruption.”

You can’t McFlurry Love

Until recently, Steve Easterbrook was the boss of McDonalds. He had been with them for a long time having started working for them back in 1993 as a manager in London.

Mr Easterbrook no doubt had a lot of affection for the company he ran but it turned out that he also had a lot of affection for a colleague as he had started dating a lady who also worked for McDonalds.

Although the relationship with his colleague was consensual, it didn’t go down too well with McDonalds.

According to the company, Mr Easterbrook had “violated company policy” and shown “poor judgement” (by “poor judgement” I assume that refers to him having the relationship rather than the choice of who he had the relationship with).

Now, whilst some people may say that it was a consensual relationship between two adults so let them get on with it, the key thing here is that it was against company policy and the two people involved had agreed to the company policy when they joined the firm so it’s a straight forward case of a breach of that policy.

More and more companies are having either outright bans on any relationships or are requiring individuals to disclose any relationships (I’m not a legal expert here but it does raise some interesting questions as to what is the definition of a relationship and how quickly after reaching that definition you need to notify your employer – is it minutes, hours, days…).

Mr Easterbrook won’t be short of funds to carry on wining and dining his new love as the termination package is pretty significant. He earned nearly $16m last year and will receive 26 weeks of pay on his departure.

Bloomberg estimate that his total leaving package which includes previously granted shares will be in excess of $37m.

That should buy a few romantic meals at Burger King for the two love birds.

You’re fired…

How many CEOs of top global companies were replaced last year?

Well, the answer may surprise you and what also may surprise you is the reason they lost their job.

PwC have been keeping track of the movements of the CEOs of the largest 2,500 global publicly listed companies since 2000 and the most recent data for 2018 has been released and it shows some interesting things.

In 2018 the number of departures of CEOs reached a record level with nearly 18% being replaced (up from 12% in 2010).

It was the reason for their departure though which raised some eyebrows.

CEOs can leave their jobs for a variety of reason and PwC categorised the reasons as planned (e.g. they were due to retire), forced (e.g. they did something a bit “naughty”) or M&A (e.g. they were no longer needed due to a merger or acquisition).

The latest split showed the 18% of departures as:

Planned – 12.0%

Forced – 3.6%

M&A – 2.0%

Digging a bit deeper though into the forced departures shows some worrying reasons.

Historically the main reason CEOs were forced out was due to poor results but for the first time the largest group of CEOs forced out was due to integrity reasons.

In 2018, 39% of those forced out were due to integrity reasons. Ten years ago in 2008 the corresponding figure was only 10%.

These integrity issues could include scandals such as improper conduct, fraud, bribery, insider trading, environmental disasters, misleading CVs, and sexual indiscretions, according to PwC.

So, in summary more CEOs are being fired and the main reason is integrity issues.

All in all, a pretty poor performance…

Dog seized to pay tax bill…

It’s always best to keep up to date with your tax affairs. Although most people don’t enjoy paying their taxes, it’s the law and if you don’t pay there can be serious consequences.

Over in Germany reports have emerged that make it fairly clear that you don’t mess with the German authorities when it comes to taxes.

An unnamed lady was behind in paying her taxes.

The authorities sent a debt collector around to collect whatever assets the family had to settle the tax liability.

According to the lady in question, two valuable items were identified.

One was the wheelchair of her paraplegic husband. Now, before even getting into the rights and wrongs of taking a disabled person’s wheelchair to settle debts, luckily for the family it was not an issue as it turned out that it was owned by a local association and was not the property of the family so the debt collectors couldn’t take it.

The authorities though have denied they tried to take the wheelchair and a spokesman said “Mobility aids for the disabled are absolutely exempt from being seized as collateral.”

One item though which was not exempt from being seized was the family pet.

Alas for Edda, the family dog, she was taken by the debt collector.

Edda is a pug and they are a pretty fashionable dog breed at the moment and the debt collector took the dog as settlement for the debt.

Edda was then listed on eBay and was sold to Michaela Jordan, a local police officer for €750 (approx. £650).

There’s a twist in the “tail” though in that the new owner has now sued the local authorities who sold Edda as apparently, she was advertised as being a healthy dog but has required veterinary treatment costing approximately €1,800.

We wish Edda well.

Would you send a selfie of your legs for a bonus?

I’m all for equal rights in the workplace. It doesn’t matter whether you’re male or female. It doesn’t matter what the colour of your skin is or your religious preferences. The only thing that does matter is whether or not you can do your job.

Not everyone shares the same view though and in Russia, aluminium manufacturing company Tatprof is offering a bonus to its female employees if they wear a skirt and makeup.

Oh, and to get the bonus they have to send a selfie of them showing their legs and make up to their (mostly male) bosses.

The bonus is 100 Russian Rubles (approx. £1.25) and it’s been reported that 60 people have so far sent in selfies to get the bonus.

Some may say that there are 2 sides to the argument.

The first, and probably most obvious, is that this is a step backwards in the workplace. A person should be judged by their ability to do their job rather than what their legs and make up look like. It’s 2019 for goodness sake and not the 1950s.

A counter argument though was put forward by Anasasia Kirillova, who works for the company’s department of corporate culture and internal communications who said that “Many women automatically put on trousers, so we hope that [the campaign] will increase our ladies’ awareness, allowing them to feel their femininity and charm when they make the choice of wearing a skirt or dress”.

It seems the message is coming from the top of the company.

According to Ms Kirillova, Tatprof’s male CEO Sergei Rachkov “really wants to maintain the female essence in every female employee of the company, so that young women do not have male haircuts, do not change into trousers, so that they engage themselves in handicraft, project all their warmth into raising children”.

Now, I’m personally not convinced by this counter argument but what about opening up the bonus option to everyone in the company?

What about offering the bonus to men as well as women who send a selfie of themselves wearing a skirt?

Is this for real?

If you buy a Chelsea or Manchester United football shirt and it turns out to be a fake it can be annoying but if you buy medicines and they turn out to be fakes it could be a lot worse as it could kill you.

Illegal copies and fakes of products are one of the big problems facing businesses today (£300 billion is the estimated size of the global counterfeit market) but some scientists have recently developed what they believe could be a cheap solution to the problem.

The technology is currently being developed by a company called Quantum Base and in simple terms involves placing an extremely small microdot onto the product which gives off a unique light signature.

The microdot is really small and I do mean really small – it’s a tiny flake of atoms which is a thousandth of the width of a human hair. Not only will it be impossible for a human to see but it will be unique. The flake of atoms which will make up the microdot will be unique and cannot be cloned. They will be placed on the product at the production facilities and then the atomic structures will be recorded on a database.

The technique for preventing fake products is that when an individual buys a product such as medicine or designer clothes they can scan their phone over the label and an app on their phone will identify the light source from the atomic structure on the microdot and send it to the database to confirm whether or not it is on the database.

If it is on the database, it’s genuine. If it’s not, it’s fake.

An excellent way of identifying whether the product you are buying is real or fake.

As mentioned, the technology is still be developed and made ready for the market by Quantum Base but it looks very promising in terms of helping to eradicate the problem of fake products.

Are you better looking than your boss?

So who’s better looking – you or your boss?

Well, if you are male and your boss is also male there could be some disappointing career news for you if you think you are better looking than your boss.

A study has suggested that male bosses are less likely to promote good-looking men who work for them.

The study by University College London’s School of Management concluded that good-looking men were considered competent by their male bosses but as a result were also seen as a threat to them and their own personal career aspirations.

This raises an interesting point. Organisations no doubt want to employ the most competent people but if a male boss is reluctant to recruit or promote good-looking men because they take the view they are a threat to them personally then it means that good-looking men could be discriminated against whether or not they are competent.

Dr Sun Young Lee, the lead researcher on the study was quoted as saying “organisations want to hire competent candidates but individuals have their own agenda. When employing someone, they do not want the newcomer to do better than them and show them up”.

“What about good-looking females” I hear you say?

The study concluded that the same prejudice did not apply to women. Being a good looking lady was not associated with competence according to the study.

The study was published in the Organisational Behaviour and Human Decision Processes journal and Dr Lee felt her results suggested that organisations should consider appointing external recruitment consultants to avoid personal preferences impacting on recruitment decisions.

One additional point though is that if you yourself are male and have recently been overlooked for a promotion by your male boss then surely the only reason you didn’t get the promotion was because you are better looking than him…

What’s the link between almonds, PESTEL and water?

It wasn’t long ago that you only saw almonds in health food shops but things are changing quickly.

The health benefits of almonds are extensive. They are a rich source of vitamin E, calcium, iron and zinc to name just a few items. They can be eaten raw, made into almond oil or almond milk. They are one of nature’s super foods.

If almonds have been around for a long time, why is there suddenly such an interest in them?

If you link it to the environmental analysis model PESTEL you could argue that one of the areas within the “Social” element of PESTEL that has changed recently is that people are more health aware (if you are tucking into your burger and chips whilst reading this I should stress that health awareness doesn’t necessarily mean everyone undertakes healthy eating!)

However, it does seem that people around the world are eating significantly more almonds. So much so that there is a rush to plant almond trees.

The world’s almond crop is estimated to be worth nearly $5 billion per year and the centre of almond production is California where 80% of the world’s almond crop is produced. During the last three years alone 150,000 acres of almond trees have been planted in California.

Whilst the ever increasing number of almond eaters around the world are no doubt happy about this, there are a number of people who are far from happy.

California farmers have been removing tomato, melons and other crops to replace them with almond crops. There is a problem though as the almond tree require significantly more water than the other crops.

To produce a single almond requires about 4.5 litres of water. Multiply that by the millions of almonds that will be produced on the land and you can see what an impact it will have on the local water supply.

California has been suffering droughts for a number of years and in the past there have been certain water restrictions in place for individuals. So far, the almond growers have escaped these water restrictions but a number of activist groups have been set up and this situation could soon change.

Will we see a lot of thirsty almond trees in California in the near future….

Causing a bit of a stink…

There’s no room in the modern workplace for bullying and intimidating work colleagues.

Companies should have anti bullying practices in place and in most countries around the world there are laws to protect people who are being bullied.

The Oxford dictionary defines bullying as seeking to “harm, intimidate, or coerce someone perceived as vulnerable” but in some situations it’s difficult to decide whether or not an activity is actually bullying.

Over in Australia a worker claimed that he was bullied by a colleague who repeatedly broke wind at him.

David Hingst claimed that his ex-colleague Greg Short would “lift his bum and fart” on him up to 6 times a day.

Mr Hingst didn’t take this well and sued his former employer for A$1.8m (nearly £1m).

Now, let’s pause here for a moment and hold our breath.

Bullying in the workplace is clearly wrong but claiming damages of nearly £1 million when somebody breaks wind in front of you does seem a bit steep.

Mr Hingst was adamant though and last year took his case to the Supreme Court of Victoria.

The Court found that there was no bullying.

Mr Hingst didn’t agree with the decision and appealed against it and last week the appeal was heard by the Court of Appeal.

Mr Hingst reportedly told the Australian Associated Press that “I would be sitting with my face to the wall and he would come into the room, which was small and had no windows. He would fart behind me and walk away. He would do this five or six times a day”.

Mr Short, the alleged perpetrator of this “crime” had said that he may “have done it once or twice” but denied doing it with the intention of distressing or harassing Mr Hingst.

Alas for Mr Hingst, the Court of Appeal rejected his appeal and found there was no bullying.

Mr Hingst though isn’t taking this sitting down and reportedly has said that he plans to appeal to the High Court.

Free ACCA Study Materials

All of us here at ExP are excited. We’re excited for 2 reasons.

First of all, we’ve just gone over 350,000 followers on Facebook and a huge thank you to all of our followers.

In fact, 350,000 thank you’s!

The second reason is that we’ve just released our free ACCA eBooks. These can be downloaded free of charge on the following page:

Free ACCA Study Resources

We hope that all of you that are studying for your ACCA exams find them useful. If you’re not studying ACCA, you’ll find the eBooks useful if you want an overview of some key finance and business topics.

Thanks again for the Facebook follows and best wishes from all of us at ExP.

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.

(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.

This is how not to do first aid in the office.

Having people trained in the office to undertake first aid is an important health and safety feature.

Organisations can send people to health and safety training or like the organisation in the video below, can get health and safety professionals to provide on site demonstrations.

Now, whilst most demos will be educational and very professional, as the video below shows, this particular demonstration was more like a slapstick comedy film.

A volunteer was asked to pretend that he was injured but unfortunately when the health and safety “professional” came into the demonstration he accidentally knocked over a shelf which then fell onto the “pretend victim” who suddenly became the “real victim”.

Luckily for all concerned nobody was seriously injured and if you want to see a fine slapstick comedy moment demonstration of health and safety then enjoy the video below.

Put the kettle on (or maybe not?)

Tea and coffee have been around for a long, long time. Many a person has grabbed a strong coffee to keep them going over a long day in the office or a long night studying.

Coffee is said to originate from East Africa where legend has it that a 9th century Ethiopian goat herder by the name of Starbucks Kaldi noticed that after his goats had ate some coffee beans they started bouncing around like teenagers at the local disco.

This started the journey of coffee and associated caffeine hits so loved by students around the world.

Tea however is often seen as a healthier option but the tea industry is facing several challenges at the moment. In particular, the 16 to 34 age group in the UK are changing their drinking habits.

Only 1 in 6 people in this age group now drink 5 or more cups of tea a day.

People in the 55 to 64 age group on the other hand drink twice as much tea.

And the reason for the reduction in drinking tea amongst the younger population?

A number of reasons have been put forward. These include the fact that the younger generation feel that black tea could stain their teeth. It is also felt to be unhealthy given the amount of caffeine black tea contains.

It’s not all bad news for the tea industry though as the younger generation are drinking more green teas and fruit teas. Green tea is claimed to enhance brain function and sales are up by 39% over the last two years.

The increase in green tea sales though has failed to stop the fall in overall tea sales as the combined market in tea was down 5%.

Maybe the famous quote “Keep calm and drink tea” should be changed to say “Keep calm and drink green tea”…

Gentlemen, you’ve got 55 seconds to beat your best…

One of life’s great mysteries for men when they are at a bar or club is why women always seem to go to the ladies “powder room” in groups.

There could soon be an equally mysterious occurrence that women will puzzle over and that is why men will soon disappear to the “gents” together during a social evening out.

Well, it won’t be to adjust their makeup or to catch up on the local gossip.

No, if UK company Captive Media has anything to do with it the visits to the toilet by men could soon be a great marketing opportunity.

It’s been estimated that on a night out a man spends on average 55 seconds relieving himself each time he visits the urinals in the gents (if you ever saw a person with a clipboard and a stopwatch behind you at the urinals now you know why…)

In the eyes of Captive Media this represents a great advertising opportunity as rather than staring blankly at the wall in front of you (or telling the person with the clipboard and stopwatch to go away) they have developed a urinal-based games console which allows men to, how can we say it but aim and shoot at targets with their “stream”.

The games are mixed with adverts and include for example a downhill skiing game which is controlled by your “stream”.

It remains to be seen what products will be advertised in this way but one thing for sure ladies is that if your boyfriend or husband returns from the gents whilst you’re out together on a social evening and he says that he’s just beaten his personal best then you know what it refers to.

This is shocking…

A lot of our readers are accountants or are training to be accountants. It should arguably follow therefore that you are good with figures. You are good with numbers and can manage your finances.

Not everyone though may be as good at managing their own personal finances and for any of you who may have problems controlling your spending, a new product will shortly be hitting the market which could be of interest to you.

A British company by the name of Intelligent Environments has developed a wristband that will deliver an electric shock to the wearer when they exceed pre-set spending limits.

The Pavlok wristband links to an individual’s online bank account and when a pre-set limit is exceeded a 255-volt electric charge is delivered to the wearer. The wristband is named after the Russian scientist Ivan Pavlov whose research showed that the behaviour of dogs could be altered by the prospect of reward or punishment.

Submitting yourself to an electric shock to stop yourself spending money does seem a bit extreme and with a cost of £120 then the buyer may well end up having an electric shock earlier than anticipated…

Nicely said Mr Musk

We’ve all been there haven’t we? Long boring meetings that don’t seem to be going anywhere.

Maybe you’ve tried to give the impression of being interested in what was being said but in reality the meeting wasn’t relevant for you and your mind was wandering to other more interesting things.

Well, if you’re not a great lover of excessive meetings then you are not alone. In fact, you share the thoughts of an incredibly successful and admired business person. Namely, Elon Musk.

Mr Musk’s current business interests include Tesla and SpaceX.

In the past he founded x.com which later became PayPal. Paypal was subsequently bought by eBay for $1.5 billion.

He currently has a net worth in excess of $20 billion.

But what does he think about meetings?

In an email to his staff that was leaked to the electrek website there were a few productivity recommendations:

In the words of Mr Musk, these include:

– Excessive meetings are the blight of big companies and almost always get worse over time. Please get of all large meetings, unless you’re certain they are providing value to the whole audience, in which case keep them very short.

– Also get rid of frequent meetings, unless you are dealing with an extremely urgent matter. Meeting frequency should drop rapidly once the urgent matter is resolved.

– Walk out of a meeting or drop off a call as soon as it is obvious you aren’t adding value. It is not rude to leave, it is rude to make someone stay and waste their time.

– Don’t use acronyms or nonsense words for objects, software or processes at Tesla. In general, anything that requires an explanation inhibits communication. We don’t want people to have to memorize a glossary just to function at Tesla.

– Communication should travel via the shortest path necessary to get the job done, not through the “chain of command”. Any manager who attempts to enforce chain of command communication will soon find themselves working elsewhere.

– A major source of issues is poor communication between depts. The way to solve this is allow free flow of information between all levels. If, in order to get something done between depts, an individual contributor has to talk to their manager, who talks to a director, who talks to a VP, who talks to another VP, who talks to a director, who talks to a manager, who talks to someone doing the actual work, then super dumb things will happen. It must be ok for people to talk directly and just make the right thing happen.

– In general, always pick common sense as your guide. If following a “company rule” is obviously ridiculous in a particular situation, such that it would make for a great Dilbert cartoon, then the rule should change.

Nicely said Mr Musk.

How much do Big 4 partners get paid?

KPMG UK released their results last month for their most recent accounting period and they showed a fall of 10% in pay for the KPMG partners when compared to the previous year.

Although the firm’s revenue rose by 5% to £2.2 billion, it’s profit fell to £301 million.

The firm wrote off a number of technology investments.

KPMG, like the rest of the Big 4, have invested heavily in technology companies in an attempt to stay at the forefront of technology.

Unfortunately for KPMG, not all of their investments were successful. Bill Michael, the Chairman of KPMG, highlighted one investment that hadn’t done so well – KPMG had committed £3 million to Flexeye, a tech company that analyses large amounts of data and it hadn’t proved to be the wisest investment.

Whilst profits fell, it hasn’t all been bad news for KPMG as their audit practice grew by 10%.

Back to the average pay of the KPMG partners though and although their average pay fell by 10% I’m sure that the partners will still be able to afford to buy a sandwich for lunch.

The average pay for the KPMG partners was £519,000 each.

That’s not too bad is it?

But how does it compare with the average pay from the partners of the remaining Big 4.

The most recent reported results show the following average pay per partner:

Deloitte – £865,000

EY – £677,000

pwc – £652,000

It looks like Deloitte partners will be having the more expensive sandwiches for lunch.

It will be a pleasure to go shopping with you…

It may be stating the obvious but if you’re a retailer in a shopping centre you’ve more chance of making a sale if people are in the shop.

Retailers in shopping centres face a number of threats. Some of these are a more recent phenomenon (e.g. the rise of internet shopping) whilst others have been around for a number of years.

One of these threats which has been around for a while is something which I’m sure a number of our male readers can sympathise with.

Let me ask the male readers out there who are married a question – have you ever gone shopping with your wife and at the start of the shopping trip things were going well but it soon descended into a long and windy journey through shops which to the male eye looked very similar but to the female eye were all different and offered new and exciting opportunities to try new items of clothes?

With the wife enjoying every moment but the husband getting more and more frustrated it is only a matter of time until stress levels rise, an argument ensues and the shopping trip is cut short.

A number of shops have chairs for the men to sit on and magazines to read but over in China, Shanghai’s largest shopping centre has come up with a novel way of keeping men occupied so that the wives are free to shop without the husbands getting bored.

Global Harbour shopping centre has introduced “Video Caves”. These are glass booths with a comfortable chair, a games console and a large screen. Men can be left to play computer games free of charge whilst their partners can shop to their heart’s content. The booths are soundproof so the computer games won’t disturb the other shoppers.

All in all, a great idea to keep the both the “lady shopper” and the “dragged behind man” happy but is there a potential problem?

After all, if you ask a lady how easy it is to get her other half off of a computer game when he’s nearly reached his top score, will we start to see women looking bored whilst waiting for the husband to finish his video game…

KPMG fires unethical partners

Picture the scene – you’re the senior auditing partner of KPMG in America with more than 30 years of experience serving some of KPMG’s most prestigious clients. There are over 9,000 KPMG people in the US who look up to you as the boss.

You receive some leaked information about which of your audits the US audit watchdog is going to examine as part of their annual inspection of how well KPMG perform audits.

Do you:

(a) Disclose this unethical breach immediately, or

(b) Try to keep things quiet and make sure that the audit files of the audits selected are perfect?

Unfortunately for Scott Marcello, the (now ex) head of KPMG’s audit practice in America, he didn’t choose option (a).

The background to the issue is that every year the US audit regulator, the Public Company Accounting Oversight Board (PCAOB) selects a sample of audits to inspect and ensure they have been performed properly.

A former employee of the PCAOB had joined KPMG. A friend of his who was still working at the PCAOB tipped him off about which audits would be selected for inspection this year.

The confidential information was then passed up the KPMG hierarchy until it reached Mr Marcello.

We can only guess what Mr Marcello and 4 other KPMG partners were planning on doing with the leaked information but one thing was for sure and that was they didn’t disclose the leak.

Whilst the 5 partners clearly weren’t very ethical, KPMG as an organisation acted quickly once they found out about it.

The 5 partners were fired and Lynne Doughtie, the chairwoman and chief executive of KPMG was quoted as saying “KPMG has zero tolerance for such unethical behaviour. Quality and integrity are the cornerstone of all we do and that includes operating with the utmost respect and regard for the regulatory process. We are taking additional steps to ensure that such a situation should not happen again”.

The PCOAB publish the results of their inspections and the previous results of the KPMG inspections perhaps give a reason for why Mr Marcello was keen for any help, whether it was ethical or unethical.

In 2014 and 2015, KPMG had more deficiencies in their audits than any of the other Big 4 in America.

38% of their inspected audits in 2015 were found to be deficient whilst in 2014, 54% were found to be deficient.

Your new (waggy tailed) baby

It’s a busy time for new parents when a baby comes along. Lots of employers give maternity and paternity leave for the new mums and dads but what about when your “baby” has 4 legs and a waggy tail?

Artisan Brewers BrewDog are a Scottish beer company who are very successful and sell their craft beers around the world.

They are also pretty unusual. They have grown from having two staff and two investors in 2007 to a current global team of in excess of 500. It has broken crowdfunding records with more than 32,000 shareholders.

More recently though, they became the first major company to offer their employees a week off if they get a new puppy. This will enable the humans to bond with their new pets without worrying that their work will suffer.

Founders James Watt and Martin Dickie, who themselves founded the company with their dog Bracken, said in a company statement that ‘Yes, having dogs in our offices makes everyone else more chilled and relaxed – but we know only too well that having a new arrival – whether a mewling pup or unsettled rescue dog – can be stressful for human and hound both.

‘So we are becoming the first in our industry to give our staff help to settle a new furry family member into their home,’

If any employees are thinking of getting a new puppy, then they won’t be the first in the company with a dog.

As well as providing time off for new dog owners, BrewDog also allow their employees to take their pet dogs into the office and there are currently over 50 employees at their head office alone who take their dogs to the office every day.

Restaurants and children…

Nowadays more and more children are eating at restaurants with their parents. Whilst this can be great for the restaurateur, there can also be problems.

On the positive side, allowing children into restaurants with their parents should bring more family customers into the restaurant but on the negative side, if the children misbehave or run around causing chaos then some customers will be put off spending time in the restaurant.

If you head to a child friendly restaurant such as the fast food giant McDonalds then you would expect children to be children and to be loud, excitable and bouncing around.

But what about if you run an upmarket, select restaurant with clientele who are looking for a quiet time to relax over a good quality meal and fine wines. Boisterous children could damage the image and banning children from the restaurant would be a bit extreme.

Antonio Ferrari, the owner of an upmarket restaurant in Padua, Italy has come up with a novel approach to encouraging good behaviour amongst the junior member of families visiting for a meal.

He has introduced a “polite children discount” which offers 5% off of the bill if children are well behaved.

The Times newspaper quoted Mr Ferrari saying “We are not set up for kids – we have no crèche, the spaces are tight, bottles can be knocked over and we have a clientele that spends a bit of money to be tranquil while eating well.”

Has it been a success?

Well, one thing’s for sure and the discount hasn’t been offered that often.

In the 6 months the scheme has been active, there have only been 3 occasions the polite children discount has been offered.

Not very ethical…

When is a bribe not a bribe?

US bank JP Morgan Chase thought they had the answer to this question. Unfortunately for them (but fortunately for all the hard-working ethical people out there..), the US Securities and Exchange Commission and the Justice Department saw through their plans and found them guilty of violating the US Foreign Corrupt Practices Act.

JP Morgan designed a scheme which they hoped would help them win lucrative contracts in China.

Their plan was to offer highly paid jobs to individuals who were not qualified for those particular jobs.

“Why would you pay excessive amounts of salary to people who weren’t capable of doing their job?” I hear you say.

Well, the answer was that those people they were going to pay the high salaries to were relatives or friends of government officials and those officials were in a position to offer lucrative contracts to JP Morgan.

So, in summary if JP Morgan had offered money directly to the state officials it would clearly have been a bribe. Instead, they thought they could get away with it by paying excess salary to family and friends of the officials. Over a period of 7 years, approximately 100 interns and full-time employees were employed who were connected to foreign government officials.

This enabled JP Morgan to win or retain $100 million in revenue.

A clever plan. Or at least they thought it was.

The Securities and Exchange Commission and the Justice Department thought otherwise though and started investigations back in 2013.

The Department of Justice called the scheme “bribery by any other name” and at the end of the investigation JP Morgan had to pay $264 million to settle the claims.

In the end, a highly unethical and very expensive way to try to win and retain clients.

It’s maturing nicely…

“Don’t worry, it’s secured with cheese” isn’t the most common phrase you hear when discussing the bond markets but a €6 million bond issue may well change that.

When a company issues a bond, the investor is lending money to that company in exchange for the bond. When the bond matures the company will repay the money that was lent (together with interest).

If you put yourself in the shoes of the investor, then what type of company would you invest in?

The chances are that you would be looking for large, well established and financially secure companies to invest in. That means that smaller companies generally find it challenging to raise funds via bonds.

An Italian cheese manufacturer has found a novel way around this problem.

4 Madonne Caseificio dell’Emilia is a relatively small Modena based cooperative firm which produces 75,000 wheels of Parmigiano cheese annually (nearly 2% of the world production of the famous cheese). It has issued a €6 million bond offering an annual yield of 5% with the capital being repaid in 5 annual amounts starting in 2018 and ending in 2022. The funds raised will be used to support their commercial expansion plans.

The interesting thing about the bond issue though is that it is secured by Parmigiano cheese worth 120% of the bond value. This means that if the company fails to repay the money the investors can get Parmigiano cheese from the company.

€7.2 million worth of cheese – that’s a lot of cheese! Let’s hope the bond matures nicely without any problems.

Is it you or your competitor?

Sometimes it’s not what you do that counts but what your competitor does.

Apple are without doubt a great company and one of the most successful organisations that has ever existed.

They released their iPhone 7 the other week and whilst the die hard Apple fans will say that it is a big step forward for the iPhone, a number of commentators were not overly impressed with it.

But, and it’s a big but – their share price has been performing phenomenally well over recent weeks.

Just over 3 months ago at the end of June the price of an Apple Share was $92.04.

Since then the share price has increased by nearly 28%. This increase is partly due to the introduction of the new iPhone but the problems of their biggest competitor have also played a major part in their share price increase.

Samsung’s Note 7 has been a disaster for the South Korean company. Reports of the newly introduced Note 7 catching fire and the subsequent withdrawal of the phone from the market have caused big problems for Samsung.

Not so for Apple though as the 28% increase in their share price driven by the new iPhone and the problems at Samsung has resulted in the company increasing its value by $138 billion in the 109 days from 27 June to 14 October. Yes, the market value of Apple increased by $138,000,000,000 in just over 100 days.

$138 billion in 109 days is equal to

$1.27 billion per day, or

$52.75 million per hour, or

$879,205 per minute, or

$14,653 per second.

That’s not too bad an increase is it?

A good excuse to buy another handbag?

How much do the Louis Vuitton handbags cost?

A lot is the simple answer but some recent research by Deloitte’s has shown that the price of luxury items varies significantly around the world and foreign exchange movements play a big part in that valuation.

According to Deloitte, in US dollar terms London is now the “cheapest” city to buy designer and luxury goods.

Since the Brexit vote in June, at the time of writing the pound has fallen by more than 17% against the dollar (i.e. you need 17% more pounds now to buy the same amount of dollars you would have received back in June).

According to the research, on 7 October a Speedy 30 handbag from Louis Vuitton costs £645 ($802) in London, €760 ($850) in Paris and $970 in New York. China was the most expensive place to buy it with the handbag costing 7,450 Yuan ($1,115).

Nick Pope, fashion and luxury lead at Deloitte, told the BBC that “the trend in luxury pricing in the UK is being driven mainly by the depression on the sterling – thus making the same item more affordable in the UK than in any other luxury market”.

Of course, if your income is in British pounds then the cost to buy the handbag in London remains the same. If however your income is in another currency such as US dollars then it is $313 cheaper to buy in London than in China for example. If you are stocking up on your luxury handbags should you be planning a trip to the UK?

It’s not just the ladies from outside the UK who are buying luxury handbags who could be benefiting from the exchange rate movement.

Any male readers may be interested to know that a Brunello Cucinelli cashmere V-neck sweater now “only” costs £650 ($843) in the UK compared with $942 in France and $995 in the US.

$843 for a sweater?

Please form an orderly queue as you rush to the shops to buy one. Or maybe two…

It’s a dog’s life…

Greece has had a bad time of it over the last couple of years in terms of their finances but a recent announcement by their Finance Ministry may result in animals coming to the rescue.

When I say animals, I should be more specific and say that dogs will be helping out and not just any dogs but dogs who can sniff out money.

Let me explain a bit.

It’s been well documented that Greece has had a few financial problems. There were fears that they would crash out of the euro. Capital controls followed and there was a new international bailout for the country.

As a result, a lot of the Greek population perhaps understandably didn’t feel that confident in trusting the banks to look after their cash and a significant amount of money is being held outside of banks.

From November 2014 to July 2015 over 50 billion euros was withdrawn from the banks and It’s been estimated that between 15 to 20 billion euros is still being held by Greeks outside of the banking system.

That’s a lot of mattresses to be storing cash under and people are looking at avoiding capital controls and instead take the money out of the country without the authorities knowing.

Taking a suitcase of cash out of the country is seen as a safe option for a lot of people.

So, where do the dogs come in?

Well, a recent posting on a government website said that a team would be put together to assess tenders for the provision of dogs whose job is to detect cash. The dogs would be in place to sniff out significant amounts of cash being taken out of the country at border points.

Given all the money problems in Greece, one big advantage of this plan is that the dogs won’t be paid in cash. Instead, they will be more than happy to be rewarded with a biscuit or two…

This is shocking…

A lot of our readers are accountants or are training to be accountants. It should arguably follow therefore that you are good with figures. You are good with numbers and can manage your finances.

Not everyone though may be as good at managing their own personal finances and for any of you who may have problems controlling your spending, a new product will shortly be hitting the market which could be of interest to you.

A British company by the name of Intelligent Environments has developed a wristband that will deliver an electric shock to the wearer when they exceed pre-set spending limits.

The Pavlok wristband links to an individual’s online bank account and when a pre-set limit is exceeded a 255-volt electric charge is delivered to the wearer. The wristband is named after the Russian scientist Ivan Pavlov whose research showed that the behaviour of dogs could be altered by the prospect of reward or punishment.

Submitting yourself to an electric shock to stop yourself spending money does seem a bit extreme and with a cost of £120 then the buyer may well end up having an electric shock earlier than anticipated…

Thank you 200,000 times from ExP…

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Whether you attend one of our classroom courses, our online courses or access our free courses on our website thank you so much for your trust in us and we hope we’ve helped you in your professional development.

Thanks again from all of us here at The ExP Group.