RC Business

Toyota- a model of social responsibility or a company that puts profits before people?

Joe — Wed, 28 Apr 2010 21:40:43 +0000

A recent BBC world service documentary traces the development of Toyota from a small Japanese company to a global company-the biggest car maker in the world.

The company has in recent times had a number of recalls both in the Lexus and Toyota brands. Accusations of putting the “bottom line” ahead of all other considerations including safety have been levelled at the company. Toyota insist that they have at all times behaved ethically,and attempted to sort out problems as soon as they have been notified. Akio Toyoda, the company president has apologised through the U.S. congress and to the 95,000 Toyota employees in Japan.

The case study analyses the growth of the company. It includes business topics including-ethics/global business/outsourcing/just in time production/whistleblower/ and is well worth a listen.

Discrimination in the workplace.

Joe — Sat, 24 Apr 2010 18:40:02 +0000

“Discrimination is the treatment of a worker in a less favourable way than another worker is being,has been,or would be treated.”

In Ireland cases are referred to and investigated by the Equality Tribunal.

In its report for 2009 there were 117 referrals on the grounds of disability(up 21% 0n 2008)

95 referrals on grounds of gender(up 20% on 2008)

289 on grounds of race( 33% of all cases in 2008/2009 involve race issues)

Financial cutbacks, including a driving ban on staff, currently prevents the Tribunal from attending hearings in towns that do not have a train station!

TY Investment game

Joe — Mon, 22 Mar 2010 18:36:07 +0000

TY students are commencing a fantasy share investment competition with TY B in session now and TY A having their competition in a few weeks. The students are using www.bullbearings.co.uk/They will use live share prices from the London stock exchange. The students can at all times see their position on the league table The winner of each competition will receive a cash prize.

Iceland rejects repayment package.

Joe — Wed, 10 Mar 2010 14:24:40 +0000

Iceland held its referendum on its €3.9bn repayment package to UK and Dutch savers on Saturday last.Icelandic banks collapsed in both countries leaving savers at a loss. Icelanders are seething at the actions of the authorities in those countries. A final turnout of 62.7% cast their vote with 93% rejecting the proposed repayment package.

It looks like the Icelanders do not want to renege on the package but they want the terms of the repayment to be re-negotiated.

A €4.6bn IMF package for the Icelandic economy is on hold until there is certainty about how the foreign savers are to be compensated.

Is United for sale?

Joe — Mon, 08 Mar 2010 23:24:47 +0000

A consortium of investors calling themselves the “Red Knights” is attempting to buy Manchester United. Bought six years ago by American owners,the Glazer family have not won the hearts of the fans. Now a consortium of wealthy United supporters are attemting to buy the club. The Glazers have a reputation of being hardened businesspeople and will only sell if it makes economic sense to them.

The “Red Knights” value the club at £1.25 bn, including its £500m debt. This means the Glazers would receive £750m, having put in £272m in 2005.

“The Red Knights” hope to raise £250m from supporters, £500m from a group of wealthy investors and retain the £500m bond debt raised in January.

UEFA favours clubs being owned and run by their supporters. Barcelona, Real Madrid and several German clubs being held up as examples.

The finances of the Premiership clubs are very poor, with 18 of the 20 clubs having a combined debt that is more than the rest of Europe’s top divisions put together.

What chance the “Red Devils” being owned by the “Red Knights”?

Ethical Business Ranking List

Joe — Wed, 03 Feb 2010 17:33:13 +0000

Ethical business practice requires a business to act with fairness and justice to all its stakeholders and with social and environmental responsibility to the wider society. The stakeholders are those who make or are affected by the decisions of the business-its customers,suppliers,employees,shareholders etc.

In a recent ranking compiled by Swiss Ethical analyst firm Covalence, IBM came out on top followed by Intel.

Others in the top 20 include Nike,Microsoft,Starbucks and Vodaphone.

Guinness manufacturer Diageo came 39th.

Oil and gas companies tend to prop up the list. Ryanair came in the bottom 10,with a ranking of 575, with CRH at 557.

ESB expands into UK

Joe — Fri, 29 Jan 2010 17:15:32 +0000

The ESB’s new power station in Southampton,which opened yesterday, is the largest electricity generator built in the UK in the last five years and will supply one million people.

By 2020 the UK and Irish electricity markets will be one. Two more interconnectors need to be built. Britain is facing into having to replace many of its nuclear plants so the ESB have an eye on possible future opportunities.

It does not intend selling directly(retail) to the public,rather on to other electricity suppliers on a contract basis.

Apple launch IPad

Joe — Wed, 27 Jan 2010 22:28:18 +0000

Apple seeking to change the publishing business in the same way the IPod transformed the music industry today unveiled a tablet computer-the IPad.

The product is expected to challenge strongly the market leaders in the e-reader sector and intends opening up an e-reader store. Deals have been forged with many of the worlds main publishers to offer electronic books on the IPad.

The device will run the more than 140,000 apps already available on the IPhone and ITouch.

More than 60million Apple shares changed hands today,with the share price increasing by almost $2. The expected selling price is lower than what was expected and as a result massive sales are predicted.

Apple relies on sales of computers for 25% of sales,the IPhone for 33% and the IPod for 22%.

It has sold 250million IPods.(though IPod sales are now in decline.)

Want to know more about Apple?

Enterprise Ireland supports Carraig Donn

Joe — Wed, 20 Jan 2010 20:47:14 +0000

State company,Enterprise Ireland has recently provided support to local firm Carraig Donn from its growth fund, to aid the firm’s expansion plans.

The firm was established in 1981 and is Irelands largest indigenious knitwear manufacturer. It sells in the domestic and in a number of foreign markets.

In September 2009 a 24-hour sustained TV sales drive on US shopping channel QVC resulted in $1.4m in sales.

Cadbury Takeover-almost a done deal!

Joe — Tue, 19 Jan 2010 18:06:40 +0000

We have followed the proposed takeover of Cadbury’s with alot of interest. The deal looks like coming to an end as Kraft’s latest offer of £11.9 bn has been agreed with the Cadbury board. Cadbury’s chairman says “the offer represents good value for Cadbury shareholders.” The offer is £8.40 per share.

Cadbury’s employ 45,000 people worlwide including 5,600 in the UK and Ireland.

Still, many Cadbury shareholders may vote to reject the offer. Some view this as a hostile takeover by a company who may asset strip Cadbury’s in order to finance the deal. Unions fear redundancies. It’s still not too late for a counter bid, with Hersey said to be monitoring the situation.

“There’s many a slip between cup and lip!”

Kraft biggest shareholder is Warren Buffet.

Branson buys a bank.

Joe — Tue, 12 Jan 2010 22:41:10 +0000

Entrepreneur extraordinaire Sir Richard Branson has recently purchased Church House Trust,which has 3000 customers but no branches for £12.3m. The acquired banking licence will allow for the creation of Virgin Bank and paves the way for it to offer mortgages and current accounts in the UK later in the year.

Iceland to have a referendum on whether to repay UK savers.

Joe — Tue, 12 Jan 2010 22:31:39 +0000

The President of Iceland has moved against Icelandic parliament in refusing a deal that would see the repayment of €3.9bn to UK and Dutch savers in a failed Icelandic bank. This is creating diplomatic tension between the countries involved. President Olafur Ragnar Grimmson was reacting to a petition signed by thousands of Icelanders to refuse payment. The presidents move was a blow to Prime Minister Joanna Sigurdardottir’s government who backed the deal.

The matter will be decided by referendum on February 20th.

Gillette forced to adapt their advertising.

Joe — Thu, 03 Dec 2009 21:58:37 +0000

Gillette having employed three “sqeeky clean” sporting icons have rushed to adapt their advertising in the light of recent circumstances. Compare below the advertisements below. The advertisement on the right is employed in the French market,the one on the left in the remainder of their markets.

What other changes may be needed?

Advertising Standards Authority rejects complaints.

Joe — Mon, 23 Nov 2009 16:28:12 +0000

The Advertising Standards Authority in the UK have rejected 13 complaints that the new L’Oreal advertisement featuring Cheryl Cole is misleading. M/s Cole says in the add that “My hair is stronger,full of life,replenished with a healthy shine. Its got its mojo back.” What she doesn’t tell us is that she uses hair extensions,which cost up to £1000 a time ,to give her hair more bounce.

During the TV advertisement, a message flashes up,saying her hair is “styled with some natural extensions”,but it remains on screen for fewer than 2 seconds of the 30 second add.

In magazine advertisements, the hair extensions are mentioned in print 2mm high.

The advertising standards authority stated that no rules have been broken because of the inclusion of the 2 second message.

Cadbury rejects Kraft’s Takeover bid as too low.

Joe — Tue, 10 Nov 2009 18:10:52 +0000

Cadbury plc has rejected Kraft’s unsolicited (Hostile) takeover bid in the absence of an improved offer. The bid was first made public on September 7th.

The question now is, is that the end of the matter? How likely is it that Kraft(with Warren Buffet as its largest shareholder) will make another attempt in the months ahead? Is there a possibility of a “WhiteKnight“ company entering the fray? Could that company be Nestle plc?

A deal would have pushed Kraft past Mars plc as the worlds largest confectioner.

It will be interesting to see at what price the Cadbury share will trade at in the near future.