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April 4, 2011

Squaring the ECO circle – theory and practice

Firms make much noise about their environmental credentials. Huge sums are spent on producing reports and policies on sustainability, carbon footprints and recycling. It is easy to be cynical and see this as merely an attempt to create competitive advantage or at least to keep up with market and customer expectations, rather than a deep seated commitment to environmentalism. However, at least it appears that firms are taking the issue seriously and investing time and energy into the process of becoming exemplary global citizens.

Where, however, is the incentive for consumers to be environmentally aware and sustainable? In theory, I would like to minimise my carbon footprint and to care for my environment. In practice, the decision on what I end up doing is often a balance between my nagging conscience and the economic reality of spending significantly more to assuage my guilt. If I am honest my moral compass is normally put away in its case as I just seek to maximise my economic utility.

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August 6, 2010

A wave becomes a ripple as Google waves goodbye

Innovation is a risky and uncertain process even for the largest of corporations.  The marketplace is littered with innovations that fell by the wayside, sometimes in a wave of bad publicity. Most notorious in my mind is the demise of new Coke in 1985 when the Coca-Cola Company attempted to replace the original formula of its flagship soft drink.   The new cola was a major marketing disaster. The latest in a long line of  market failures was signalled this week when Google announced on its official blog that it has decided to pull the plug on Wave, its web application for real-time  communication and collaboration, just a year after its launch. Wave has simply not seen the user adoption rates Google required.

However, writing in his blog for the Harvard Business Review, Karim R. Lakhani, argues that Google made “exactly the right move and provides some very important lessons for managing innovation in both small and large organizations.” He adds:

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March 24, 2010

Lipsmackin’thirstquenchin’acetastin’motivatin’healthgivin’ Pepsi?

Filed under: Business & Management — Tags: , , , , — Paul Clark @ 11:50 am

The iconic tagline of the 1974 Pepsi advert promised a whole series of benefits for the consumption, but none of them extolled the virtues of Pepsi as a healthy alternative. Times have changed amid rising pressure from governments to encourage healthier lifestyles and as the more discerning and health-conscious consumers adjust their purchasing behaviour. Pepsico, which in addition to Pepsi owns the Frito-Lay and Quaker brands, has promised to cut levels of salt, sugar and saturated fats in its top-selling products by a quarter during the coming decade.   It also pledged to eliminate direct sales of full-sugar canned drinks to primary and secondary schools and substitute artificial sweeteners for sugar.

The presentation of these changes to existing and potential consumers will be crucial. This case presents a perfect opportunity for your students to develop a new marketing mix for a Pepsico product and could also form the basis of an excellent internal assessment or extended essay.  However, if chosen as an assessed project , it is advisable to examine only one or two elements of the mix to make it manageable within the word limit.

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March 17, 2010

dot.coms@25

Filed under: Business & Management — Tags: , , — Paul Clark @ 10:52 am

Like so many technological advances – it is difficult to remember the time when we could not check the cinema listings, or identity the actor for the television quiz question, online. What did we do BG – ‘Before Google’? Yet it is only twenty five years since Symbolics became the first company to register as a dot-com. Twenty five years later it is estimated that there are 200 million websites in existence. However, this disguises the rocky path in between, which saw the market values of dot-coms soar and then plummet with thousands of dot-com businesses joining the ’99% club’ – technology businesses that had lost more than 99% of their highest share value. In 2000, the Nasdaq’s index of tech and biotech stocks hit 5,132 – today it has settled closer to the 2000 mark.

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