Just watching a Panorama programme about the extreme working conditions in a Chinese I-phone factory. Useful for your HRM studies. Also highlighted are the ethics of some tin supply sourced from Indonesia. The negative publicity may be damaging to the Apple brand but the global firm is so big, many people won’t be aware so won’t protest. What do you think? Does it change your perception of Apple? Micro market research too! All in one post! Watch the programme on i-player here.
Category Archives: Business in Contemporary Society
External (Economic) Factor – Oil Price
Oil is a very significant commodity and its price affects much of the economy. The most obvious is transport costs i.e. the price of petrol and diesel. Deliveries of raw materials to factories, distribution of finished goods from manufacturer to warehouse/retailers, then deliveries to customers. The oil price also affects energy costs e.g. heat, light and machine power.
The price is going upwards, partly to do with unrest in North Africa. There are now many articles in the media highlighting the effect, from small businesses struggling to cope @£1.47/litre of diesel in the Highlands to major holiday companies (e.g. Thomas Cook) adding fuel supplements (i.e. putting the holiday price up).
Higher distribution and energy costs will be reflected in higher prices for food and other products. For an example click here.
The UK and Scottish governments are being asked to intervene. Read relevant newspaper articles or watch TV reports to familiarise yourself with the debate/effects.
Product Placement
Product Placement is in the news for two reasons this week. Firstly, it is the Oscars and designers, jewellers etc. are competing to persuade Hollywood actresses to wear their products on the red carpet. Plus many films subtly (or not) promote cars, watches etc. in return for payments from the manufacturers. Secondly, from 28 Feb 2011, Product Placement will be allowed on UK TV programmes due to a recent government decision actioned by Ofcom.
Product placement will be allowed in films (including dramas and documentaries), TV series (including soaps), entertainment shows and sports programmes. But it will be prohibited in all children’s and news programmes and in current affairs, consumer advice and religious programmes made for UK audiences [1].
Read more of the Ofcom link here. Watch out for the big P at the start and end of programmes!
Political Factors & Stakeholders
This BBC news article highlights the long time taken to get planning permission for major projects/infrastructure. These strategic decisions are made by the Scottish Executive. Business leaders claim that e.g. the Aberdeen City Bypass is essential to business growth in the region but protesters have delayed its construction by making appeals to various courts. The protesters are mainly members of the local community (i.e. stakeholders) who don’t want their towns/villages affected. The business leaders regard improved road links as crucial to attracting new investment/businesses to the area. Click here.
Growth – B.A. to I.A.G.
From today, British Airways (B.A. plc) have merged with Iberia of Spain to become the International Airlines Group (I.A.G. plc) The B.A. story is like a snapshot of recent business history. Originally, British Airways was owned by the UK Government. In 1987, it was privatised i.e. it was floated on the London Stock Exchange and became B.A. plc. There have been many changes in the external environment (P.E.S.T.E.C.) since then which affected B.A. Several lessons’ worth! The company also instigated change e.g. marketing (colourful tailfins, catchy slogans “The World’s Favourite Airline” ), operations (stopping Concorde, using Heathrow to capacity) and human resources (reducing the workforce, changing working conditions). Its strong position in the market was challenged by e.g. Virgin and low cost airlines. Organic growth was difficult. So the strategic decision was taken to merge. The new company I.A.G. plc hope to achieve cost savings, economies of scale plus benefit from sharing routes and management knowledge, whilst retaining the separate brands. Watch out for some nostalgic articles about B.A. in the media this weekend. Starting with this BBC radio 4 broadcast.
BICS: Self Employed Couriers Adv/Disadv
BBC Newsnight article mainly highlighting the pitfalls of being a self employed courier. For example, no employment rights and getting paid 50p to deliver a 7 foot Christmas tree! Click here.
