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BP China communication costs CSR demography digital communications e-commerce economies of scale external environment Flexible working focus groups GDP Google HRM innovation joint venture marketing PEST Population promotion recession Resources risk stakeholders strategic alliance Strategy SWOT technology Topic 1.5

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January 18, 2012

Wikipedia protests blacks out website in piracy row

Filed under: Business & Management — Tags: , , , , , — Paul Clark @ 1:36 pm

As digital technologies increasingly dominate personal and commercial activities, the issue of copyright protection becomes ever more controversial with stakeholder groups lining up to protect their interests. In a row dubbed by some (but denied by Wikipedia) as a clash between Hollywood and old media, and Silicon Valley, the US Congress has been attempting to enforce copyrights on the Internet, by proposing new legislative controls on internet service providers of websites that offer access to pirated material.  The Congress Act, Stop Online Piracy Act  (SOPA), and the Senate bill, the Protect IP Act (PIPA), have focused on targeting copyright infringers online and imposing a series of harsh penalties. The Bills would force ISPs to block non-U.S. websites accused of having infringing material, meaning sites from other countries might not be available in the United States. SOPA and PIPA are attempts to deal with the problem of online filesharing by granting powers to close down websites that are making material, such as films, music and television programmes, available without the permission of the rights holder.

In December, a group of influential technology figures, including founders of Twitter, Google and YouTube, published an open letter to lawmakers saying that the legislation would enable Internet regulation and censorship on par with the government regulation in China and Iran. They argue that ISPs should not be required to police the internet. Last month, an article in the Stanford Law Review described the bills as “an unprecedented, legally sanctioned assault on the Internet’s critical technical infrastructure”. However, the backers of the legislation, including the Motion Picture Association of America (the MPAA), the major movie studios and television networks, most major book publishers and several ISPs, say that without the legislation at least 2.2 million industry jobs would be at risk. Rupert Murdoch, the chairman of News Corp, which backs SOPA and PIPA, equated copying a film with publishing pornography and hate speech.

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December 9, 2011

Using averages can be a poor marketing strategy

Filed under: Business & Management — Tags: , , , — Paul Clark @ 5:38 pm

In a time of recession, and when business confidence is low, we know consumers begin to tighten their belts and demand falls across the economy. There are several measures of recession.  The US National Bureau of Economic Research (NBER) defines an economic recession as: a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. Other economic bodies define recession as a contraction in GDP over two successive quarters (6 months). A depression, such as occurred in the 1930s, is both deeper and longer lasting than a recession. The US president Harry S. Truman said that a ‘recession is when your neighbour loses his job; depression is when you lose yours. ‘

The following GDP data from tradingeconomics.com graphically indicates contrasts between the economic performance of different countries and regions. Of course, the problem with measuring the overall economic performance of a country is that there are significant differences between individual groups and geographic areas within that country. Contrasting performance between groups and regions will be exacerbated when figures are provided at a global level, and it is unlikely that the message that some groups and/or countries are still doing very well, will be adequately communicated when national or international statistics are reported in the news media. For example, although Greece and Italy are in economic turmoil, significant enough to bring down their governments and to raise the spectre of national default on loans, there will be individuals and groups within those countries whose incomes are increasing substantially.

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November 25, 2011

Filling the gap with a different voice

Filed under: Business & Management — Tags: , , — Paul Clark @ 6:15 pm

I must admit to loving the radio and take it with me wherever I am. The advent of the podcast and interactive radio means that I can catch up on programmes I have missed. Several blogs have been stimulated by a radio programme or part of a programme. The BBC is an excellent source of news, ideas and views. Over the last week, I have been listening to lunchtime broadcasts and have been fascinated by two particular series.

In the first of these, the wonderful Stephen Fry traced the evolution of the mobile phone, from hefty executive bricks that required a separate briefcase, to sleek fashion smartphone carried by billions of people around the world. This social, technological and economic history of the telephone examined the development of cellular networks, messaging and texting and traced the miniaturisation of the components that made these possible. This was achieved through five accessible 15 minute programmes, now available from the BBC website, which has a huge range of downloadable programme suitable for the classroom and offering stimulus for debate and research. You will have to hurry though, because the Stephen Fry programmes are only available until 2nd December.

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November 21, 2011

Economic contagion threatens global business

Filed under: Business & Management — Tags: , , , , , — Paul Clark @ 2:11 am

The Eurozone economy’s growth almost ground to a halt in the third quarter of 2011 with just a 0.2% rise, reinforcing expectations that the region could slip into a ‘deep and prolonged recession’ next year. There is much debate in global financial and investment markets as to whether a European economic recession will pull US and Asian economies down in its wake. The European Union said last week that the Eurozone is expected to grow just 0.5 per cent in 2012, far below the 1.8 per cent growth predicted in the spring. Economic and financial turmoil has spread rapidly from Greece into other Eurozone countries. Third quarter results showed the Portuguese economy remaining in recession with a 0.4% fall in GDP, the Dutch economy contracting by 0.3%, and the Spanish economy stalling with zero growth between July and September. The Greek, Italian and Spanish governments have all fallen in recent weeks in the wake of economic concerns and the spiralling debt crisis. The BBC has produced an excellent interactive graphic showing how much money is owed by developed economies to banks in other nations providing a rough guide to the extent of the problems of each of the featured economies. In an increasingly interdependent world where businesses operate across national frontiers, economic anxiety in one country is contagious, quickly spreading to markets across the globe negatively affecting consumer confidence and demand.

The European Union is the United States’ most important trading partner with almost $475 billion in goods exchanged between the regions in the first nine months of 2011.  Approximately 14% of revenues for the 500 biggest U.S. companies (roughly $1.3 trillion) comes from Europe and the weak U.S. economy makes it especially vulnerable to the European crisis. However, recent economic data in the US is inconclusive.  Retail, housing and employment figures have all improved over the last two months, underpinning the rising trend in the US currency.  Indeed, 70% of the revenues and profits of recently listed-company profit and revenues have been above analyst forecasts following deep cost-savings and improved domestic consumer demand.

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November 15, 2011

The demographic dividend

Filed under: Business & Management — Tags: , , , , — Paul Clark @ 11:20 am

Three weeks ago the world’s population passed seven billion with predictions that it could reach 15 billion by the end of the century. Naturally the emphasis of media stories was on the planet’s ability to support such a figure and the stark environmental dangers of a population explosion.  Certainly the figures are staggering. It took 250,000 years for the global population to reach 1 billion, another century to reach 2 billion and 32 years more to reach 3 billion. However,  the increase from 5 billion in 1987 to 6 billion took only 12 years; and 12 years later, it stands at 7 billion. By 2050, the UN estimates there  there will be 9.3 billion people.

In fact, the growth in the world’s population is actually slowing, with the peak of population growth in the late 1960s, when the total was rising by almost 2% a year. Now the rate is half that figure. The last time it was so low was in 1950, when the death rate was much higher. The result is that the next billion people, according to the UN, will take 14 years to arrive, the first time that a billion milestone has taken longer to reach than the one before. The billion after that will take 18 years.

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August 9, 2011

Controlling the speed of social networking

Filed under: Business & Management — Tags: , , , , , , , , — Paul Clark @ 11:33 am

As I watched the looting and burning of buildings and shops in parts of London and other UK cities orchestrated and co-ordinated by vandals using blackberries and mobile phones and social networking sites such as Twitter and Facebook, it made me think about the speed and ability of societies and institutions to control ideas and communication.

The unrest in London has already been described as ‘Britain’s first 21st century riot’. The use of social networking has also been a key feature in the Arab Spring as civil unrest spread across the Middle East, with video from smartphones and Facebook messages and Twitter feeds to some extent replacing official press coverage, especially in areas where journalists are banned.

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July 1, 2011

Listen to your focus group!

Filed under: Business & Management — Tags: , , , , , , , , , — Paul Clark @ 12:08 am


Market research is neither an exact science, nor infallible, as many marketing failures will attest. Nonetheless, it is not the best idea to do the exact opposite of what your target market is telling you. On the UK’s TV version of the The Apprentice, two teams of budding entrepreneurs fighting to win a £250,000 prize fund to invest into their own business, were given the task of developing a new ‘free’, premium magazine (‘freemium’). Both teams carried out market research on their chosen demographic – one young and one old, and both promptly chose to ignore their focus group feedback. One of the two competing groups, Team Venture, had decided to target their magazine at the 60 plus audience. Their focus group, hosted at a bowling club, sought the views of the over 60s on the type of magazine they would read and enjoy.

Things started badly when one of the two researchers, Susie, began the conversation with the question: “What do you guys do?”, which received the immediate sarcastic response of, “bowl”. When asked specifically about potential content, the over 60 group said categorically they did not feel old and wanted a magazine that highlighted enjoyable, fun activities such as holidays without kids, skiing and bungee jumping. What they definitely did not want was content that was condescending and stereotypical, such as knitting puzzles and quizzes.

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May 30, 2011

The battle for Arctic riches heats up

Filed under: Business & Management — Tags: , , , , , , , — Paul Clark @ 10:19 pm

In recent posts I have identified the growing issues of declining energy reserves and those countries and firms seeking to protect their self-interests. Clearly, the oil industry is facing uncertain times, not just in terms of the declining reserves, but also in light of rapidly changing technologies and expectations in terms of the environment.

The state of oil production is beginning to cause alarm. Oil production peaked during 2006 with global oil production from mature oil fields now declining at a rate of between 6-7% per year. Oil is becoming more difficult, expensive and energy intensive to extract.  The Peak Oil Crisis website has real time clocks of global oil consumption and graphics illustrating the impending crisis as well as articles, graphics and links to industry articles. Countries reliant on oil imports are desperately seeking new oil and gas sources with global oil companies jockeying for position to extract any new reserves found. Power politics are coming to the fore and environmental organisations are increasingly concerned about the ramifications of the rush for oil on the global environment as multinational oil giants seek out previously untapped reserves in the remotest of regions.

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May 16, 2011

There is no avoiding the issue – Sport is Big Business

Filed under: Business & Management — Tags: , , , , , , , , , — Paul Clark @ 9:44 pm

The English Premiership is the most successful football league in the world in commercial terms, thanks in part to satellite television and the exposure created by BSkyB. Supporters of the game may wish at times that this was not so and that the ‘beautiful game’ was left unsullied by business imperatives and realities, but this is like harking back to the good old days of amateurs competing in the Olympics. What really matters to most clubs in the Premiership is the bottom line rather than the goal line. In February 2010, I wrote in my blog about the perilous state of Portsmouth football club who were on the brink of administration. In that post I made the following statement, which is as true now as it was then:

No business, whether a bank or a fashion house like McQueen, can spend more than it earns for a long period. If costs are higher than revenues there will come a time when the business is financially unsustainable. A business may represent the heart and soul of a community or be the brand choice of Hollywood stars, but if it fails to make a profit it is dead.

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April 15, 2011

Bridging the Gulf a year on

Filed under: Business & Management — Tags: , , , , , , , , — Paul Clark @ 9:09 am

It is nearly a year since the Deepwater Horizon rig explosion killed eleven crew members and resulted in 206 million gallons of oil pouring into the Gulf of Mexico until the BP well was finally sealed. This was one of the worst environmental disasters in U.S. history and was detailed in previous posts.

Although there is uncertainty about the severity of the long-term effects of the spill on the environment and the Gulf ecosystems, it is generally accepted by scientists that the major impacts of the Gulf spill will be addressed by the end of 2012 and the environment will begin to recover. Nonetheless, the clean-up continues on the Gulf coast beaches and although the environment may be in a recovery phase, the human cost continues as the perception of the disaster is slow to adjust to the reality.

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