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The ACCA exam results are out today. If you’ve been successful then maybe head to the vending machine.

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It’s ACCA exam results day today and congratulations to those of you that have passed. All your hard work has paid off and it’s now time to celebrate.

I’ve often wondered whether the results day should be a Friday so you can celebrate on Friday night and Saturday night or whether it’s a good excuse to annoy everyone else in the office on the Monday with your shouts of happiness all day.

If by any chance you’re in Pennsylvania in America and want to have a little drink to celebrate your success then there is now a novel way of doing so.

We blogged last year about the use of vending machines in Germany for selling local fruit and vegetables but in Pennsylvania they are now piloting a new type of “outbound logistics” (using Porter’s Value Chain Analysis terminology).

You can now buy bottles of wine from vending machines. In order to buy the wine customers have to firstly prove they are old enough by swiping their ID and a credit card. They then have to prove they are sober enough to buy the wine by using a breathalyzer.

Wine aficionados may well be aghast at the thought of buying wine from a vending machine but if you’re the type of person that just doesn’t want to stand in a queue and talk to the shop assistant when you’re buying the wine then this could be for you.

Then again, if you’re buying it to celebrate passing your exams I would recommend that you buy it from the shop assistant so that you can tell them and the rest of the people in the queue the reason you’re buying it.

Things are getting more expensive in China but is this good news for McDonalds?

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A report issued by Credit Suisse this week highlighted the fact that costs of manufacturing in China are on the increase.

Average salaries for example have increased from $1,000 per annum in 2000 to nearly $4,000 in 2010. This increase, together with the cost of transporting goods to Europe and America, means that the cost base has increased significantly and importantly is likely to continue to increase.

A number of companies have invested in China principally on the basis of their low cost base.  The rising cost base though is causing concern for a number of companies.

Will they be able to switch production to other low cost locations such as Bangladesh or Vietnam? They probably will be able to but it could be costly.

Will they be able to pass on these cost increases to the end consumer by way of price increases? Given that we are only just starting to come out of recession my guess is that this will be challenging to say the least.

But does all of this really come as a surprise? With the explosion of globalisation over the last couple of decades and companies manufacturing in cheaper location or “off shoring” services then surely it’s simply a case of supply and demand.

If companies set up offshore operations in a certain territory which is renowned for having, for example, good quality cheap IT skills then when other companies join them there will be a surge in demand for these individuals and wages will increase.

It will take a number of years or even generations but some people’s view is that eventually there will be very similar wage levels wherever you are in the world.

Back to the increase in wages in China though and whilst this will be bad news for a number of companies there will also be companies that will benefit from the increase in local spending power. McDonalds for example are no doubt licking their lips in anticipation at all the Big Macs that could well be sold in China in the near future.

It’s a rather nice TV and a “bargain” at £6,999 but you’ll have to wait until 1 October to get the most out of it.

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If you are one of those people that keep on losing the TV remote control then you’re going to have fun when you need to keep track of your 3D glasses as well.

We blogged earlier this year about the launch of 3D televisions and their position within the product life cycle.

When it comes to the marketing mix (the 4Ps) there are certain characteristics that are found at the introduction stage.

Witness for example the high prices that are currently being charged for 3D televisions – a Samsung UE55C900 52 inch 3D TV was today for sale at the John Lewis shop in Oxford Street in London for £6,999 plus £139.95 for two pairs of 3D Active Glasses (this in itself provides an interesting example of pricing given that one pair of 3D Active Glasses costs £59.95 – if you need a calculator to spot the significance then maybe a career in finance isn’t for you!).

The lack of 3D content however was always going to be a problem at the initial stages. After all, a top of the range 3D TV isn’t that good if there aren’t a lot of 3D programmes to watch.

Sky TV in the UK though is about to come to the rescue. They announced today that they will be launching a dedicated 3D TV channel on 1 October. Some highlights of the launch weekend include coverage of golf’s Ryder Cup as well as the film Monster vs. Alien.

The good news for Sky subscribers with the latest Sky+ HD set top box is that they won’t need any additional Sky equipment to watch the 3D content. They “only” need one of the latest 3D TVs.

If you’re in the UK you can look forward to a rush of “P – Promotion” for 3D TVs in the autumn. We’ll report back in a years time but expect by then the “P-Price” to have fallen, the “P-Product” to have developed, the “P-Place” for purchasing to have increased and the “P-Promotion” to have…..

How much do condoms cost to buy? Well, I guess anywhere from £1 to £2.5bn…

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Reckitt Benckiser, the Anglo – Dutch consumer products group, has agreed to buy the maker of Durex condoms for £2.5bn.

Last week the board of SSL recommended that the shareholders accept the offer from Reckitt which was at an effective 33% premium on the share price.

In addition to Durex condoms SSL also make Scholl shoes but £2.5bn is a lot of money and a 33% premium is pretty good in today’s environment. Should the shareholders therefore grab this opportunity with both hands?

Students of business strategy will be aware that there are both pros and cons of acquisitions. The general view amongst analysts in this situation though appears to be that it represents a good fit for the Reckitt business.

Firstly, Reckitt will strengthen their health and personal care division which is currently their fastest growing area. Health and personal care is considered by many to be a key area for businesses going forward (this is a nice link to PESTEL within the syllabus).

Secondly, SSL has a larger presence in a number of emerging markets. In particular SSL are in a strong position in China, a country where Reckitt are relatively weak compared to their competitors.

Cost savings from synergies of course can never be ignored. If the deal goes ahead there could be reported savings of £100m a year in terms of removing duplicate jobs, combining distribution channels, etc.

Marketing synergies are also important. Reckitt for example produce the headache tablet Nurofen.

If you wear a business outfit to work then surely getting dressed in the morning is overtime?

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There was an interesting court case in Germany this week. Not only for people that follow employment law but also for people that have to wear certain outfits to work.

German Policeman Martin Schauder was awarded an extra 7 days of holiday a year after arguing that the time he spent changing into his uniform each day was part of his job. He therefore claimed that this time was part of his work time.

He stated that it took him 15 minutes every day to get his police outfit on and 15 minutes to take it off. These extra 30 minutes a working day amount to an extra 45 working hours every year.

The court in Germany agreed with the policeman and told his employers to either pay him the overtime or to give him holiday.

The police force have unsurprisingly said that they are going to appeal against the decision.

Now, if this case is upheld then it raises some interesting opportunities for me. As an accountant who meets clients then I am expected to be dressed smartly. My personal choice of clothes for the office however would be shorts and a t-shirt so the fact that I have to wear a tie surely means that the time it takes me to do my tie up is overtime.

This varies from a sleepy 1 hour plus on a Monday to a speedy sub 1 minute on a Friday. Adding this all up will amount to a significant sum of overtime money and this is before I take into account the time taken to tie up my shoelaces instead of slip on my preferred choice of footwear of flip flops.

What will make Ernst & Young different from the rest of the Big 4? Will it be an Executive Decision or…

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According to reports this week, Ernst & Young will be the first of the Big 4 to appoint non-executive directors to its global advisory council.

This is a major move for the accountancy profession.

The profession has been under increasing regulatory pressure for a while now and the decision to appoint non-execs is reportedly in response to the new audit firm governance code that was published earlier this year.

The revised Ernst & Young advisory council structure will in broad terms mean that Ernst & Young will have a board structure which is similar to the multi-national companies that are their clients. Their remit will include monitoring strategy and risk.

Their global advisory council currently includes 36 senior partners. These partners will soon be joined by 4 non-executive directors drawn from the business and regulatory world.

The names of these non-execs will be disclosed later this year and although I’m not a betting man I’d probably have a wager that their CVs will not include the names of Deloitte, KPMG or PricewaterhouseCoopers.

I’d like the classic novel “To Kill a Mockingbird” and a whole lamb delivered tomorrow please.

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So my plan for tomorrow night is to have a relaxing evening and settle down with a nice box of chocolates, a glass of Pinot Grigio wine and start reading the 50th anniversary edition of the book “To Kill a Mockingbird” which has just been released.

The only problem is that I don’t have chocolates, wine or the book…

Not to worry though as I can order these over the internet for delivery tomorrow. Two websites I’ve ordered from before are those of the supermarket Tesco and the online bookstore Amazon. Tesco have sold books as part of their offerings for a while now so I might as well order all of them from their website.

Hold your horses though as Amazon today announced that as well as books, DVDs and suchlike they would now be selling a range of grocery items online.  Over 22,000 grocery items in fact.

Items ranging from a packet of cinnamon sugar for 29p through to a Highland Fayre Royal Banquet for £1,203.97 are now available for home delivery on www.amazon.co.uk.

Is this a smart move by Amazon or simply an online bookstore trying to get some extra revenue? After all, shouldn’t they stick to what they do best and sell books?

Well, if you think about it, what do they do well? (what are their “core competencies” in strategy exam talk?)

I’d argue that they are pretty good at getting stock into their warehouses (using Porter’s value Chain: inbound logistics), processing orders (operations), delivering goods to customers (outbound logistics), running a website (sales and marketing) and dealing swiftly with any returns (after sales service).

Whether the item of stock being processed is the classic book by Harper Lee or a whole lamb for £119.99 then does it really make any difference?

Only time will tell whether this venture will be successful. Amazon has a trusted brand and is a world leader in processing orders over the internet so maybe they will be successful. The established supermarkets already have a successful internet presence though so it will be interesting to see how this develops.

Anyway, after writing this I’ve now made my decision and I’ll buy the chocolates, wine and books from the Sainsbury Express store next to the office and have the relaxing evening tonight.

It’s 225 years old and has just given birth to a beautiful newly born one pound baby.

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The Times newspaper in the UK is one of the oldest in the world. It was first published in 1785 and for 219 years until 2004 it followed the traditional route of quality journalism delivered via a “broadsheet” newspaper.

In 2004 certain traditionalists were shocked when the newspaper moved to the smaller compact size favoured by the tabloid papers. This move proved to be successful though and the new size appealed to both the younger generation and commuters who no longer had to try to read their paper without upsetting the person next to them.

This was a good example of a successful adjusting of the product component of the marketing mix.

The Times has had one of the better newspaper websites and last week they completed their transition so that their website no longer has any free content. Instead, readers now have to pay £1 to read the online version of the newspaper. The “product” costs the same whether it is a paper version or an electronic version.

From mid June users were asked to register free to read articles but from last week when you clicked through you were greeted with the following:

Reports suggest that since the requirement to register was brought in last month the viewing figures of the website have almost halved.

The requirement to pay for viewing will no doubt cause viewing figures to drop even further.

The paper’s owner, Rupert Murdoch’s News Corp, will be expecting viewing numbers to fall but importantly for them they believe that charging for content will enable them to continue at the forefront of quality journalism.

There are also reports that the Sun and the News of the World, two other UK titles in the News Corp portfolio, will also disappear behind a website paywall. These papers are more “down-market” than the Times so it will be interesting to see how this will work.

The traditional newspaper street vendor’s call of “Read all about it, read all about it” may soon become “Read all about it either in this newspaper or the online version for the same price”. But then again will there be any paper newspapers being sold in a few years or will it all be electronic?

Fabio Capello’s comedy version of Sydney Pollack’s classic film “Out of Africa” was complete and utter…

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So then, England’s football team are back home following their worst defeat in a World Cup ever.  As an Englishman, I care about this very much, but I’m trying to be brave about it.

Germany deserved to win.  They played better and importantly played as a team. England were fragmented and dreadful.

But the official score of 4-1 was rubbish.  The second goal went over the line by about a whole metre. Unfortunately, FIFA “disallowed” the goal because the linesman didn’t see it and they refuse to install goal line technology.  The official reason for this is that many countries can’t afford that technology, which is doubtless a fair argument.  But surely countries that can’t afford expensive “Hawkeye” style equipment that the major tennis championships use could still afford to pay a responsible person to stand by each goal line through the match and call when a ball goes over the line?  This feels like very poor judgement.

In the UK at the moment, we’re questioning three things in connection with the World Cup.

1.    How can England have been so bad? There are no immediate answers to that.

2.    How can FIFA possibly believe that their reputation can be held intact when they refuse to listen to the reasonable arguments of so many stakeholders?

3.    How is it that the England manager (Fabio Capello) can be entitled to a £12 million severance package if he’s fired next month?  His team’s performance was a dismal failure, so surely he should go.  £12 million is what’s technically known as “an awful lot of money to pay a loser”.

It feels to me that the Football Association in the UK could benefit from a reading of the ACCA paper P1 notes.  Executive remuneration being linked to performance and ease of firing a non-performing executive (Fabio Capello) and how to protect reputation (FIFA).

We’ll give them a course free if they want it.  They both need it.

Should Michael Jackson have had more of a bond with David Bowie?

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It’s one year since Michael Jackson died.  In the year since his death, his estate has made earnings of £670 million.

Given that he was allegedly in serious financial trouble at the time of his death, this must be the source of a certain amount of posthumous frustration to Mr Jackson.  His ability to spend the money has been significantly impaired in the period since the money started to roll in, on the grounds of his no longer being alive.

This is a quandary well known to many pop stars.  The murder of John Lennon in 1980 sparked a sudden and deep revival of his career.

I can’t help but wonder why none of Michael Jackson’s advisors pointed him in the direction of the Bowie Bond.

David Bowie issued bonds in 1990 that were secured on the future income to be earned from songs that he had written up until that date.  This is a simplification of course, but that’s the big picture.  By doing this, David Bowie was able to get the benefit of some of his post death earnings while he was still alive.  He is a smart business operator as well as enormously popular song writer, it seems.

The Bowie bond has been influential in business since it was issued.  In practice, I personally used it as the backbone of market data to help in the divorce settlement of another well known musician.

Its influence amongst accountants is significant, though less so with the pubic at large. Rock stars probably don’t shout about it because valuation and securitisation of intellectual property isn’t really very rock and roll.