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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.

Was this an Innocent transaction by Coke?

“Smoothie drinks” have become very fashionable over recent years.

Smoothies are drinks made out of crushed fruit and are seen as a healthy alternative to carbonated drinks such as Coke or Pepsi.

Perhaps the most famous smoothie manufacturer in the UK is Innocent Smoothies. The business was set up in 1999 by three friends who famously gave up their jobs to start the business after they invested £500 on fruit and turned it into smoothies and sold them at a music festival. The business has grown since then and been a true success story.

The brand has a “quirky, playful” image as well as promoting itself to be ethically aware (it donates 10% of its profits to charity).

So, what has Coca-Cola got to do with all of this?

Porter’s 5 Forces strategy model is well known to students of professional exams.

If a 5 forces analysis is done on for example the traditional Coca-Cola carbonated drink then a substitute product would be a smoothie. There is a general trend in a lot of countries towards healthier living and the threat of a substitute product such as a smoothie could be seen as a threat.

In 2009 Coca-Cola bought an 18% stake in Innocent for £30 million and then in the following year increased its shareholding to 58% for a reported £65 million. They then increased their shareholding to over 90% for an undisclosed sum. From a Porter’s 5 forces point of view this is a good move as it means that one of the substitute products is now within the Coke family.

There has been a fair amount of discussion since the aquisition about whether Innocent is still the ethical likeable  “under dog” that it was given that it is now part of one of the biggest companies in the world.

One thing is for sure though and whilst it was certainly an Innocent transaction it was also definitely a well thought out strategic acquisition.

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.

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.

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.

He won’t be scratching the surface on this one.

A good friend of mine collect labels from beer bottles. As he travels around the world on holiday or business he collect labels from bottles of the local beer.

I think it’s a nice idea as it is a unique souvenir of where he’s visited, it’s relatively cheap and perhaps most importantly it gives him a great excuse to try out some local beers.

Things may be about to become more difficult for him though as a number of beer producers seem to be changing their marketing mix to save money and (some would argue) make the bottles look more fashionable.

As a lot of readers will appreciate, the marketing mix is also known as the 4Ps (Product, Price, Place, Promotion). If you look at the product component of the mix then not only does it include the beer itself but it also includes the packaging. This packaging in turn includes bottles (both glass and plastic) as well as cans.

Drinking some bottles of beer during a recent evening out with friends at a restaurant got the accountant in me thinking about what it costs to create the bottle that holds the beer.

Well if you think about it the raw materials that go into the bottle are glass (for the bottle) and metal (for the top) together with paper and glue for the label.

How can you reduce the cost of the packaging?

Can you reduce the quantity or quality of the glass? This would be tricky as the bottle could break.

What about the top? Again, this is awkward as you don’t want the beer to suddenly start leaking from the top of the bottle.

That leaves the paper and glue for the label and what a number of manufacturers now appear to be doing is producing bottles without the main label on it but instead embossing the name of the beer on the bottle itself (no additional material costs) and having the only label as a small paper “collar” around the neck of the bottle. An example of such a bottle can be seen in the image above from the successful Fosters Beer adverts in the UK.

Reducing the label size seems to make sense for bottles of beer that are sold in restaurants. After all, the label on the bottle has little impact on the purchasing decision when a person is looking at the menu or asking the waiter or waitress what beer they have. They may even know what beer they want already or can’t see the bottle anyway so the bottle wouldn’t impact on their decision.

It seems a good idea therefore for the beer companies to save money by removing the labels. Even though the paper used by one label is quite small, if you multiply that by the thousands of bottles which are sold around the world every day it could turn into a very significant saving.

What is interesting though is that if you go into a shop or supermarket that is selling beer, you will see bottles which have larger more “attention grabbing” labels on them. As people are wandering through the supermarket aisles they haven’t necessarily made up their mind whether they want to purchase a bottle of beer or if they have, what particular beer they want so having a big label which will grab their attention is a good thing.

In summary then it appears that two out of three people are happy. The accountant in the beer company is happy as production costs have been reduced due to reducing the labelling on the restaurant bottles. The marketing person is happy as he or she can use their skills on the design and thought process behind the labelling for bottles that are sold in supermarkets.

As for my friend that collect the beer bottle labels well my guess is that he may soon be unhappy as instead of trying to peel off the labels from the bottles whilst sat at a restaurant table he’s having to try to do that at the supermarket…

Is the joke on Volkswagen?

The German carmaker Volkswagen said “we regret if it appeared to some that we overshot the mark of this campaign.”

The campaign involved announcing that it would change its name in North America from Volkswagen to “Voltswagen” as a reflection of its commitment to an electric car future.

The market was impressed by the news and the share price of the company shot up by 5%.

One of the leading newspapers in the UK, the Guardian wrote that “For 65 years, Volkswagen has been one of the most popular names in American motoring, its VW Beetle snaring generations of enthusiasts and selling millions of vehicles. But now, in North America at least, the Volkswagen brand is no more.”

Wall Street analysts provided guidance about the company’s strategic direction. Wedbush analyst Dan Ives was reported as saying to investors that the name change “underscores VW’s clear commitment to its EV [Electric Vehicle] brand”

The problem with the announcement though was that it was a joke.

An April Fool’s joke to be exact.

A lot of people were unhappy about the announcement.

After all, April Fool’s jokes tend to have a short life span being announced on the morning of 1 April and then revealed as a joke later that day.

Volkswagen took it a step further though.

They ran the news for several days in the run up to 1 April.

The campaign could get the company into trouble with the US Securities and Exchange Commission who are likely to look as the stunt in case it is seen as an attempt to manipulate the company’s stock price.

Volkswagen said in a statement to CNN that “It is a publicity measure in the context of the market launch of the ID.4 and the e-mobility push in the USA.”

Does your corporate logo cover a continent?

112 years ago Theodor Tobler and Emil Baumann invented the chocolate bar Toblerone. The name is a play on the names “Tobler” and “Torrone”, the Italian word for honey and almond nougat.

It is one of the most recognizable brands in the world and anyone that has travelled through a major airport will almost certainly have seen the famous chocolate bar produced by Kraft Foods for sale in one of the duty free outlets.

One of the most important aspects of a successful brand is the logo.

The Toblerone logo is well known but do you see an animal hidden inside it?

Toblerone originated in Bern, Switzerland – a city whose name is rumored to mean, “City of bears”. Look at the logo again closely and you will find a bear facing to the right and stood on its hind legs.

Although I’m biased I love the ExP logo. According to the designers it is fresh, sharp, simple and easy to remember. Also, the “ExP Man” in the middle emphasises the people aspect of the business.

It’s great but there is another logo which I think is extremely clever.

If you look at the Yoga Australia Logo what do you see?

At first glance the logo may look like a simple picture of a woman doing her yoga exercise but if you look at it carefully the body posture is creating the Australia Map.

A great design and thankfully I didn’t pose for it as the map would have looked like a crumpled mess.

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.