Latest Financial Results...

Financial performance doesn't just depend on sales. Wetherspoons, which announces it's financial position this week grapples with  a huge tax increase of 50 million pounds.

If you are looking at a PEST analysis of a company this might count as a political factor.

Wetherspoons recently attacked cost pressures from government legislation , including increases in excise duty, business rates and carbon tax.

Their total tax bill in the current financial year will be around 500 million.

(Daily Express, Monday July 9th, p.47)

Me in a Suit ( Made in Britain )

Well fancy that, with a family wedding coming up I've managed to squeeze into my suit. I last wore this to Chris Whitfield's wedding over 2 years ago. Chris is another of the academic liaison librarians here at Luton.

Even more surprises were in store when we found out that not only the suit but also Kathy's wedding outfit were made in the UK. In fact the dress which Kathy ordered online was made right here in Luton ( by Alexon Brands Limited ). It's hung up behind me in the photograph. Alexon - Eastex based in Guildford Street seems to be prospering quite nicely, and is one of the town's oldest firms.

Needing only a posh hat now we ended up in a shop which stoked boaters also made in Luton ( by the Olney Hat Company )Hardly suitable for a wedding though.

Who says UK manufacturing is dead !

Made in Britain ( my trainers )

Imagine my surprise when I realised that my new running shoes ( New Balance ) had been made in the UK. Unusually enough the label on the which announced this was in French. Nonetheless perhaps this is what Chancellor George Osborne meant when speaking about the march of the makers in last years budget.

Could be a good example of UK Manufacturing for those studying this topic.

British Brands not the only ones to get taken over....

If you are doing the piece of work on British brands which are disappearing spare a thought for Foster's lager...

The company is currently facing a hostile bid from SAB Miller ( formerly South African Brewers ). They make Peroni and Grolsh....

More on bikes....

At the risk of becoming fixated on the bicycle market here's a story about a British Brand which is doing well which might also be relevant. Bromptons make a folding bike, and are apparently doing well at the moment. I have seen quite a few of these on trains between Luton and London recently, although I'm not sure if there are any restrictions on taking them during the rush hour period.

The company which manufactures distinctive folding bikes ( pictured )at a plant in west Twickenham, saw its profits rise more than a quarter last year. The number of Bromptons sold in the year just ended - the majority of which go for export - was 80%up on the total four years earlier.

Without using FAME for detailed profit and loss accounts, it is now possible to check digestible company financials using the Keynote Database

Bicycle Market....

When students were set an assignment on bicycles last year Peter and I struggled to find much information. Neither Keynote, nor Marketline have produced a report on this market. The Mintel Report which we traced was unfortunately very expensive, and we feared that it may not reach the library shelves in time.

I recently found a article in a print journal which looks relevant ( albeit two years old ) about a UK manufacturer of cycles and the challenges that they face. The article is available in the LRC in print.

Lawell, F (2009) Raleigh : cycling to success ? Business Review Vol 15 (3) p. 16-17

The article got me thinking about a SWOT analysis of the whole Market

STRENGTHS
Cycling is being promoted for health purposes
Road congestion, improved cycle-paths, "Boris Bikes" might encourage people to try it
A cheaper option than your car ? And if the roads are congested, quicker too ( over a short distance ? )
WEAKNESSES
Most people still prefer their car - low uptake - I would try to back up this point with some statistics
Cycling in cities seen to be dangerous
Accidents and smog make it an unattractive option
OPPORTUNITIES
Government support of green transport
Bike Loan Schemes
Cycling charities
Reports on health benefits
THREATS
Government funding might be cut
Cycle manufacturers ( eg Raleigh ) may suffer in the recession
More production moving abroad ( most made in Bangladesh, Thailand, Sri Lanka, Eastern Europe and Vietnam )

Buying British

Not that easy to buy British, as Dominic Pearce discovered. In an article in the Daily Express ( Wednesday 19th January 2011 ) it is noted that even Thames Water was sold off to an Australian Investment Company ( Macquarie ) in 2006.

Roberts Digital Radios make 6 of their models in South Yorkshire. The remaining 54 models are made in the Far East.

Marks & Spencer long ago stopped using the UK as a source for their clothes. Virtually every shirt, suit and jumper made abroad.

Hurrah for the Henry Vacuum Cleaner. Nu Matic the company that makes it is based in Chard, Somerset and employs 800 staff.

Dyson Vacuum Cleaners are now made in Malaysia.

Breakfast demand boosts Wetherspoons

As well as the offers of cheap beer and food Wetherspoons Pub chain is now one of the biggest coffee chains in the UK.
There has been a 40% rise in sales since the chain started opening at 7pm recently.

Other good news for the pub chain

• Profits up 7%
• 2,400 new jobs
• 47 new outlets ( total is now 775)

In fact I wish I had some shares.....

Anon (2010) Breakfast demand boosts Wetherspoons, Yorkshire Post, 10th September [accessed via Newsbank Database] on 15th September 2010

New LUSH Shop in Luton...

Luton's new Handmade Cosmetics shop....

The latest addition to the Arndale Mall in Luton fascinated me enough to have a look at Mary Portas excellent review of the Lush Chain. Although this is a couple of years old there are some points here that are still relevant I think...
http://www.telegraph.co.uk/culture/3663833/Shop.html

LUSH is a shop which can often me smelt before it is seen. In Luton it is near to Greggs, so I wondered if their pasties would now of bath bombs.
Mary Portas is very complimentary about the chain's customer service and marketing strategies.

If you are studying the Cosmetics Industry, or maybe British brands in general there is a more recent Key Note Report Cosmetics and Fragrances 2010. Lush is a real success story of recent years, and seems to prove that even in tough economic times people will still treat themselves to a few luxuries...

Business Review

Another excellent source of UK case studies is this quarterly journal. Each 40 page issue is packed with them. The April 2010 issue looks at what has worked, and what has failed for Stelios Haji-Ioannou (Head of easyGroup) Although the journal is really aimed at A Level students you can always follow up your research on other databases such as Key Note and Business Source Premier.

In the meantime here are some 'easy' principles , and what they mean when you climb aboard your flight....

Price Elastic ( fall in price leads to high demand )

No frills ( High fixed costs but these reduced by no meals on the plane, quick turnaround on the runway )

Yield Management System Price changes according to demand. Book your plane early before the price goes up too much !

High Asset Utilisation Large % of seats will be taken on your flight.

Outsourcing to the customer ( Let them print out their own boarding card ).

Mike Sturrock ( Head of Operating Systems at easyJet ) has done some guest lectures at the University recently. These might be worth looking out for in the future.

Brands - and Telling Stories

If you are looking at brands these two books might be relevant.

Danesi, M (2006) Brands. Abingdon : Routledge

is a new addition to stock in the Park Square LRC.

Lots on what constitutes a brand and the psychology of branding.

Brand Failures is an older book, but very informative about why brands fail.

Harley Davidson for example is a well recognised brand throughout the world - their attempt to launch a perfume however was not so successful.

The image of rugged masculinity did not really work for a shampoo.

A British Brand ?

Whilst struggling to think of British brands the other day the Doc Marten Boot came to mind.

An iconic brand, worn by policemen and pop-stars alike.

The Griggs Family who own the company are among Britain's most wealthy ( worth £220 million in 1999 )

But how British are the boots these days ? Apart from some of the more prestigious lines several are manufactured in Thailand rather than Northampton...