IB Business Management

A really good look at the implications of growth - and success in growing a company can alter brand image and organisational culture. Whereas at its inception, BrewDog was rightly seen as an upstart, revolutionising the sector, it is now looked at in a less flattering light, dogged by allegations about an unhealthy culture and some poor marketing choices.

However, to what extent is this inevitable when a company grows as rapidly as it did - to become the 7th biggest beer brand in the UK? And does the CEO who is standing down James Watt, really care given the extent to which he's profited from the business? 

This Business Insider looks at the rise of the latest on-trend shoe brand, Hoka, the producer of an increasingly prominent sports shoe. Within just over a decade of its creation, the brand has grown from a niche product serving mountain runners to something more mainstream. 

This clip looks at how this can happen, considering how the shoe's design, and subsequent marketing have created its value proposition allowing it to claim a $1 billion stake in the lucrative sports shoe market. 

Here's the BBC Business News on Apple's records, revealing that Samsung is now the world's leading handset, and sales in Greater China were down 8%. However, this exceeded expectations, and a big share buyback boosted its share price.

There's evidence that Apple are starting to focus on AI and will be launching some new products, not least the first new iPad for a while. 

So what Business Management concepts can you apply? 

This lengthy FT clip looks at whether an employee-owned retail business, like John Lewis, can continue to thrive in an increasingly competitive retail market. 

But not only is the external business environment more challenging, but the business also faces a number of other internal challenges, some of which may reflect a business that's struggling to control its costs and modernise. 

Unilever has seemingly signalled that it is going to abandon a number of significant environmental and social pledges, reducing its commitment to corporate social responsibility. The article suggests that this move is part of a more general trend among a number of large businesses, as well as that the commitment to CSR is cyclical.

The latter is an interesting notion - I'd imagine that we'd all want to become ever more environmentally aware, but this would suggest otherwise. 

Just an interesting insight into the fate of one-time darling of the online fashion sector, Asos, who've posted sizable pre-tax losses of £120m and recorded an 18% in like-for-like sales. 

The story is a familiar one - more competition in the sector, and the need to reduce stocking levels - remember, holding stocks is both a cost, and selling discounted stock might also affect brand image - are both essential if the company's to be turned around.

Tax avoidance by a large MNC? Really? 

Starbucks in the frame again, with the company only paying £7.2m in UK corporation tax out of gross profit of £149. Campaigners highlight the fact that Starbucks UK makes royalty and licensing payments to the parent company, a well-known form of tax avoidance. The company, of course, will argue that it complies with the letter of the law, will argue that not only does it pay a lot of tax, most notably in the form of its income tax contributions, and that is does a lot of good work for charity. 

Ordinarily, I'd put this in my Microeconomic board but I'm going to pop it here: it deals with production methods, economies of scale and innovation, and so is equally applicable to here. It shows how mechanisation allows Papa Johns to produce its dough balls and might get you thinking about its costs of production relative to their final sales price.

However, equally, you might also think about motivation - do you think that working on the dough ball production line lends itself to having motivated employees? So how might you go about motivating them? What techniques and what motivation theories could you apply?

This is a really good article about reshoring and the factors that are currently driving it: higher wages in previously low-wage economies, a desire to get things quicker, the risks associated with an extended global supply chain. 

It also introduces some concepts that I'm not familiar with: "near shoring" and "friend shoring" which are associated with reducing the risks of the global supply chain. An essential read for all Business Management students. 

One of the poster boys of my Business Management teaching, Timpson, are at it again, with James Timpson penning a piece in the Guardian about so-called upside-down management and looking after staff well-being as the best way of driving an organization forward. It makes for compelling reading and might get you thinking about the importance of motivation in giving a firm a competitive advantage. 

Given the IB Pre-Release material for Paper 1, I'd have thought that this would have been a must read for ALL students, given that it's looking at the rising costs of festivals. 

The Association of Independent Festivals’ (AIF) notes that already in 2024, 9 independent festivals have been cancelled because costs have gone up by more than 40% in some cases. There are variety of contributory factors, and also a number of other implications of this for all stakeholders concerned. 

Standard Business Management fare - with Tate & Lyle altering their logo, the the world's oldest unchanged brand packaging, dating from 1888 and inspired by the biblical quotation "out of the strong came forth sweetness". 

The revamp is designed to appeal to modern consumers, although I don't think that the market for golden syrup will really notice that much, but I'm prepared to be proved wrong. 

An nice look at how an established entertainment giant is still looking for different revenue streams to increase its profitability. It this case it's Disney who invested in Fortnite maker Epic Games, and also bought the rights to stream Taylor Swift's Eras Tour,

This was announced as the company announced a significant uptick in quarterly profits - by 49% to $1.91bn - in the 3 months to December.  However, these moves also suggest that it's not content to rest on its laurels.

This article in the Guardian highlights a dramatic turnaround in the fortunes of one-time darling of the fashion sector Boohoo. The company who owns a range of brands - Debenhams, Warehouse, Dorothy Perkins and Pretty Little Thing - has moved from a position of having £6m in net cash a year ago to net debts of £95m by the end of February.

The first thing you might want to investigate is how firms can easily keep trading in such circumstances - but I'd then want to know what has happened to produce such a change and how the business might be expected to respond. At the moment, it has very much lost its lustre. 

The BBC's Theo Leggett looks at the current woes of Tesla - falling sales, job cuts, a product recall of the Cybertruck, and the sacking of the supercharger network - and wonders what it means for the organisation.

It's suggested that the perception of the brand has changed. Tesla is no longer seen as the disruptor it once was, it face increased competition, notably from China and it will be interesting see whether the renewed focus on driver autonomy really is the way forward. 

Apple's quarterly results make for interesting reading - with sales of the iPhone down in every geographic region, apart from Europe. 

The company have attributed this to supply disruption, but is this a consequence of increased competition, and maybe the product life cycle model applies to the iPhone too?

A nice application of the Ansoff Matrix for you: in response to falling profits, Tesla is reported to be accelerating the roll out of some new models from the end of 2025.

It's classic product development, and part of a response to falling profits by looking to boost revenues as well as by cutting jobs, with 6,000 jobs going in Texas and California. 

Potential damage to the brand reputation of Tesla, as they've had to recall thousands of Tesla Cybertrucks because of concerns that the accelerator snags on the interior trim, with potentially fatal consequences.

Product recalls are rare but interesting, and not always detrimental; it can also signal a commitment to safety standards and protecting consumers which might enhance trust in the brand in the longer term.

Business Management gold dust: Superdry - the pseudo-Japanese, but actually founded in Cheltenham  fashion company - is thinking of leaving the London Stock Exchange - and in doing so converting from a public limited company to a private limited company as it seeks to restructure and save money. 

It is hoping to save cash - because listing as a public limited company does come with a variety of costs, and, I suspect, it will be pursuing a range of other strategies - seeking alternative sources of finance, as well as "improving its product ranges and reallocating marketing spend", highlighted in the article. 

I could put this on a number of board but think it's most appropriate here - showing a great example of diversification, allowing for a reference to the Ansoff Matrix - with Xiaomi looking at diversifying revenue streams, and exploiting its strong brand.

It also  highlights the extent to which China is trying to gain a dominant position in the electric car market.  

This BBC article offers a look at a firm that has a track record of engaging with its internal stakeholders, notably its workers. The John Lewis Partnership is famous for both for the extent to which its employers participate in its decision-making and its profit-sharing. 

However, in this case despite returning to profit, the company have dropped the staff bonus for the second year running, and only for the third time since 1953. This should also prompt thoughts about the impact of this on staff morale, staff motivation and potentially recruitment by the firm. 

An interesting example of diversification, with Chinese tech giant Xiaomi entering the market for electric cars. It will be interesting to see whether this is a successful move or not, and allows for consideration of where it fits in the Ansoff Matrix, the importance of branding and the importance of context. Whilst Xiaomi is a household name in China, the brand doesn't have much global traction.

Greggs pre-tax profits are up, however, for me the major focus is the use of profit-sharing. In this case, it is a way of attracting and retaining staff, with the bonus pot totalling £17.6m.

Additionally, it's interesting to note that according to the company it has usurped McDonalds as the country's leading breakfast spot. 

That's why they earn the big bucks!

Always nice to see that 'speaking truth to power' is sometimes too much for some people, which might get you to reflect on a number of things, notably the leadership style of Brad Banducci and the organizational culture that is incapable of inuring a CEO to criticism. 

However, given the concerns about Woolworth's using price gouging, neither are really that surprising. 

Because I've already put this on my Microeconomic board, I'll post this here to give a good example of destocking and perhaps to get you thinking about Tetley's margin of safety too, in a tea-mad country.