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?
https://www.theexpgroup.com/wp-content/uploads/2016/10/apple-share-price.png9401671Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-10-16 15:23:262016-10-16 15:23:26Is it you or your competitor?
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…
https://www.theexpgroup.com/wp-content/uploads/2016/10/Louis_Vuitton_shop.png5751022Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-10-08 12:10:282016-10-08 12:10:28A good excuse to buy another handbag?
As England’s football manager there are certain things that you should do and certain things that you shouldn’t do.
Winning a major tournament is a thing that you should do for example whilst looking to receive large amounts of money to advise people how to get around football transfer rules is something you shouldn’t do.
Alas for Sam Allardyce he did the latter and not the former and is now no longer the England football manager.
There are plenty of ways that football managers can make money in a legitimate and ethical way and maybe Mr Allardyce should have followed the example of the current Manchester United boss Jose Mourinho.
In addition to the £12 million wages Mr Mourinho receives from Manchester United he also does pretty well from various other activities.
Hublot watches, Adidas, Jaguar, BT Sport, Lipton Tea and EA Sports all pay a significant amount of money to Mr Mourinho to endorse their products. They see him as an internationally recognised figure with global appeal.
The latest big name to sign him up is Heineken. They reportedly will pay him £4 million for a 2-year deal to be Heineken’s global football ambassador.
That’s a pretty nice sum of money to receive and it got the accountant in me thinking about the financials from Heineken’s point of view. How many additional litres of beer would Heineken need to sell to cover the cost of appointing José Mourinho?
Heineken’s latest set of published accounts show revenue of €20.5 billion with an operating profit of €3.4 billion. In 2015 they sold 18.8 billion litres of beer. Ignoring various accounting items such as contribution and fixed costs it follows that each litre of beer generates approximately €1.09 of revenue and €0.18 of operating profit.
To cover the £4 million (approximately €4.6 million) cost of José the company would need to sell an additional 26 million litres of Heineken!
This clearly shows the challenges involved when an organisation is deciding whether or not to undertake any form of sponsorship or increasing brand awareness as it is virtually impossible to accurately place a financial value to the benefits achieved. The marketing guys would argue that the value is more than purely an increase in immediate sales revenue.
The fact is that it is extremely difficult to directly link an appointment of a brand ambassador to an increase in sales. There are numerous other items which can impact on the sales of a product. For example, a sudden heatwave would increase the amount of cold beer that is drunk and not even Jose Mourinho could claim to be able to impact the weather.
Back to Mr Allardyce though and whilst I doubt that many companies will be approaching him to sign him up as a brand ambassador, at least he can claim to be the only England manager who won all of the games where he was in charge (even if it was only for one game…)
https://www.theexpgroup.com/wp-content/uploads/2016/09/corporate-sponsorship.png9371666Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-09-29 12:28:042016-09-29 12:28:04Sam Allardyce and José Mourinho
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…
https://www.theexpgroup.com/wp-content/uploads/2016/08/capital_controls.jpg8831569Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-08-26 18:37:352016-08-26 18:37:35It's a dog's life...
What’s one way of increasing the chances of getting hold of someone’s password?
Does it involve the use of the very latest supercomputer? Does it involve some clever IT geeks hacking into a computer for you?
Or does it involve chocolate?
A recent bit of research published in the journal Computers in Human Behaviour attempted to find out how people are obligated by the kindness of others. Or in other words, if someone does something nice for a person, how likely is it that the person will be nice back to them?
The researchers in Luxembourg conducted a survey of random people in the street asking them about internet security including questions about passwords.
Some of the people interviewed were given chocolate and some weren’t.
30% of those that were not given chocolate revealed their passwords which to me is a surprisingly high percentage and just goes to show that quite often human stupidity is the weakest link in internet security.
For the people who were given chocolate at the beginning of the interview the figure rose to 44% and if the chocolate was given just before the question on passwords was asked an incredible 48% gave their passwords! Yes, nearly half of the people asked their passwords as part of a survey told a complete stranger their password if they had been given chocolate.
Andre Melzer, the author of the study said that “when someone does something nice for us we automatically feel obliged to return the favour”.
So, in conclusion, if someone walks up to you in the office and offers you a piece of chocolate be careful what you say…
https://www.theexpgroup.com/wp-content/uploads/2016/07/chocolate.png9211637Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-07-01 12:55:442016-07-01 12:55:44Would you do this for a bit of chocolate?
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…
https://www.theexpgroup.com/wp-content/uploads/2016/07/Financial-Control.png8301475Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-06-12 11:53:422016-06-12 11:53:42This is shocking…
Let me ask the men who are reading this a quick question – how would you feel if you had to wear uncomfortable high heels during a 9 hour working day?
My guess is that unless you have a pretty unusual job, as a man you wouldn’t feel too happy wearing high heel shoes. There would also probably be some fairly blunt discussions with your employer if they made it compulsory that you wore high heels.
If you’re a woman though, then it’s a different matter.
Nicola Thorp, a 27-year-old lady was temping at PwC’s office in central London as a receptionist. She turned up for her first day of work at PwC in flat shoes but she was told she had to wear shoes with a “2 inch to 4 inch heel” (5 cm to 10 cm).
According to the BBC, when she refused and complained that male colleagues were not asked to do the same, she was sent home without pay.
To be fair to PwC though, they had outsourced the reception duties at their London office to outsourcing firm Portico and the dress code was not a PwC policy. A PwC spokesman told the BBC that “PwC does not have specific dress guidelines for male or female employees.”
Portico said that Ms Thorp had signed the appearance guidelines but would now review them.
Ms Thorp however has taken the matter further. She has launched a petition on the UK Parliament website calling for it to be illegal for companies to demand that women wear high heels.
The UK Parliament website works in such a way that if a petition receives more than 100,000 signatures the matter will be considered for debate in parliament.
As at the time of writing, the petition has received over 140,000 signatures so it’s likely that the matter will be debated in Parliament.
My guess is that being debated in the UK parliament was the last thing on her mind as Ms Thorp put on her shoes to head into her first day of work at the offices of PwC in London…
https://www.theexpgroup.com/wp-content/uploads/2016/06/pwc-heels.jpg8841571Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-05-29 17:29:252016-05-29 17:29:25High heels at PwC
Creativity and innovation in any organisation should always be welcome and whilst technology is often at the forefront of innovation it is sometimes the really simple ideas that can create benefits.
Unfortunately, in this particular situation it didn’t quite go according to plan.
The initial idea was good. Officials in charge of the 1,200 acre Minto-Brown Island Park in Oregon in America were concerned that several invasive plants were taking over the park and killing off a number of the native flora including maple and hazelnut trees.
The solution put forward was to create a crack team of 75 goats who would eat the invasive plants such as the Armenian blackberry and the English Ivy which would then mean that the native flora would thrive.
75 goats were duly obtained from a company called Yoder Goat Rentals (as an interesting aside I wonder how many of you were aware that you could rent a team of goats. I certainly wasn’t.)
The goats got down to work but 6 weeks later the project was cancelled.
There were a number of issues.
Firstly, the goats were fairly relaxed about what they ate. In terms of the invasive Armenian blackberry for example they decided to eat the tasty blackberry leaves but left the prickly bramble. This resulted in the plant carrying on growing.
Secondly, they didn’t show any distinction between the (tasty) maple and hazelnut trees which they were supposed to be helping and the invasive plants.
Thirdly, the total cost of the 6-week pilot programme was $20,719 which was nearly 5 times the $4,245 cost for a normal parks maintenance man supported by a prison inmate work crew.
Finally, according to a report to the city council the goats “had a barnyard aroma”.
In summary, a nice try but it didn’t quite work. Still, as any successful business person will surely agree, you don’t progress unless you try. Better luck next time and at least the goats had a nice 6-week holiday in a lovely park…
https://www.theexpgroup.com/wp-content/uploads/2016/03/goat-workers.jpg19193411Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-03-26 16:22:122016-03-26 16:22:12Grab your goat and let's go...
The Indian car manufacturer Tata Motors, part of the Tata Group, one of India’s largest conglomerates recently skilfully averted what could have been a major international marketing mistake.
Tata motors, who also own the Land Rover and Jaguar brands, are about to launch a new small hatchback car. They debuted it at the recent 2016 Auto Expo as the Zica (short for Zippy Car) but following the rapidly spreading Zika virus which has infected over a million people in Latin America and which was declared an international health emergency, they decided to change the name to avoid any unwanted links between the two names.
The car will now be launched as the Tiago and the change was impressively dealt with by the company. They reacted quickly to the similarity and ran a competition via social media for the public to choose the new name. Over 30,000 names were put forward in the competition but Tiago was selected by the public as the winner.
However, if you look up the definition of Tiago in the Urban Dictionary the top two definitions are firstly, “Tiago is a great Portuguese king” and secondly “Tiago is a sex God who is…”.
I’m not sure the Tata marketing guys looked at the Urban Dictionary before agreeing to Tiago but in any case, if you see a man driving a Tiago then surely he’s either the Portuguese king or a sex God…
https://www.theexpgroup.com/wp-content/uploads/2016/03/tata-zica.jpg17583125Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-03-10 17:48:252016-03-10 17:48:25What's in a name?
My Little Pony is a very successful entertainment brand developed by the giant US toy multinational company Hasbro. The My Little Pony range of products first started back in the early 1980s when a line of plastic pony toys was introduced.
Since then the toy line has been joined by a number of animated TV series as well as an animated full length feature film.
All in all, a great success but there’s now a potentially very serious issue concerning the font they use on their products.
Typeface company Font Brothers design fonts and last month filed a law suit against Hasbro claiming that My Little Pony uses one of their fonts without permission.
According to Font Brothers, Hasbro used their “Generation B” font for their My Little Pony products and website without obtaining the correct licence. In other words, they are claiming that My Little Pony is using a pirated font.
Now whilst some people may say that using a font is a minor issue, if the courts find that they have been using it without the proper licence then it could be a very serious matter.
The complaint filed at the New York federal court stated that “Defendant Hasbro has used or instructed others to use unauthorised copies of the Generation B Font in the creation of, but not limited to, all products, goods, merchandise, television and film properties, and advertising material connected with the ‘My Little Pony’ product line…”.
It went on to say that “Defendant Hasbro has created unauthorised and infringing copies of the Generation B Font software and impermissibly distributed the same to third parties.”
Some fonts are so similar that it is difficult to prove which font is being used but the style sheet on Hasbro’s website specifically mentioned the Generation B Font so it will be difficult for them to claim that they weren’t using the font!
It looks like Font Brothers tried to settle matters before it got to court as they wrote in their complaint that they had contacted Hasbro about the unauthorised use but the toy company refused to license the font for their products.
The matter is now in the hands of the court but seeing as the infringements cover such a significant product there is a chance that damages could amount to a significant figure.
It may well be that it wasn’t My Little Font but it was in fact Your Little Font.
https://www.theexpgroup.com/wp-content/uploads/2016/02/MY_LITTLE-PONY-EXPLORE-EQUESTRIA-FRIENDSHIP-EXPRESS-TRAIN.jpg8581524Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2016-02-22 19:01:562016-02-22 19:01:56My Little Pony or My Little Font?
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