Nissan profits slump on high yen

The impact of the exchange rate.

Nissan profits slump on high yen

Nissan has reported a 41% fall in half-year profits after it was hit by the high value of the yen and the "severe decline" in the US car market.
Japan's third-largest carmaker made a net profit of 126bn yen ($1.3bn; £803m) between April and September, down from 212bn yen a year earlier.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7701398.stm

BMI being taken over by Lufthansa

Here is a good example how one network level strategy (strategic alliance) has changed to another (M&A). The point of interest in this story is the fact that it is not a deliberate strategic option by Lufthansa but an emergent strategy.

BMI being taken over by Lufthansa

UK airline BMI is being taken over by Germany's Lufthansa.
Lufthansa is buying the 50% of firm owned by BMI chairman Sir Michael Bishop, who forced the purchase under a long-standing agreement.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7697261.stm

Ryanair to close base in Valencia

Considering that Ryanair is the 'supplier' for the Valencia Airport and/or the local Authorities; then this serves as a very good example of the 'suppliers' power.

Ryanair to close base in Valencia

Budget airline Ryanair is to close its base at Valencia in Spain with the loss of 70 weekly flights, it has announced.
The move will affect 750,000 passengers a year and 750 jobs in the region could be lost, according to the airline.

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7688509.stm

How do pound shops cope with inflation?

Lots of interesting stuff in this article. Firstly, it is worth noting the growth of 'price leader' strategies at times of economic downturn. Secondly, pound-shops' business model is very interesting and seems to depend on size and relationship with suppliers. (Who would have thought that Colgate is Poundland's supplier?)

How do pound shops cope with inflation?
By Anthony Reuben

Eighteen years since it opened its doors, some people are still struggling with the "everything is a pound" concept.
But enough people seem to be getting the hang of it to have boosted sales of the two biggest chains: Poundland with 191 stores and 99p Stores with 60.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7680302.stm

What is a recession?

After a talk with some of the students it seemed to me that recession is not clearly understood; that's why I am posting this link from BBC which is a quite easy to read text. I am sure that there are lot more scientific sources in the library.

Q&A: What is a recession?

The dreaded R-word - recession - is in the air as every day seems to bring more gloomy economic news.
Many commentators are now openly talking about the current slowdown turning into a recession.
But how do economists define a recession and when will we know if the UK is going through one?

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7495340.stm

Tougher climate target unveiled

That's an interesting announcement. In theory, tougher climate targets have significant effects on UK business; in practice though, this target is very long term, hence until this target is 'operationalised' with shorter term targets, the effects will be so visible.

It is also useful to note that the aviation and shipping emissions are not included. Could this be interpreted that these industries are not ready for such radical measures? Is this an opportunity for any companies?

Tougher climate target unveiled

The government has committed the UK to cut greenhouse gas emissions by 80% by middle of this century.
Climate change and energy secretary Ed Miliband said the current 60% target would be replaced by a higher goal.

Read the whole article at: http://news.bbc.co.uk/1/hi/uk_politics/7673748.stm

Mark Zuckerberg on facebook's long term direction

It is very interesting to note the clear strategic direction set up by Zuckerberg; at this stage they are not interested in capitalising on the existing success, hence profits are not the first priority! He believes that the sustainability of the facebook will depend on its members (asset/resources) and not on the financial returns (another type of asset/resource). This interview also serves as a good example of the differences between mission and vision for a company.

To see the interview: http://news.bbc.co.uk/1/hi/technology/7664384.stm

M. Porter on 'what is not a strategy'

Porter explaining the difference between steps to achieve a strategy and the actual organisational strategy.

John Paulson’s Hedge Funds Return 19% in a Down Market

A good example that the uncertainty of the future is not necessarily a threat.

John Paulson’s Hedge Funds Return 19% in a Down Market
Investors said the Paulson Advantage Plus fund was one of the best performers so far this year, with a net return of 19.44% for the year to the end of August. The fund made 158.75% last year and, through a combination of investment gains and new capital, has grown from about $100m (€70m) at the start of 2007 to almost $9bn, Financial News Online can exclusively reveal.

Read the whole article at: http://www.efinancialnews.com/homepage/content/2452026834

Northern Rock cuts savings deals

This is a very interesting case, as it shows the power of goverment owned (or nationalised) companies against competition. Similar concerns have been expressed in the past for the power of BBC.

Northern Rock cuts savings deals
Northern Rock has withdrawn a number of savings deals to new customers to ensure it does not abuse any competitive advantage.
The nationalised bank is one of few financial institutions that has a 100% guarantee for the safety of customers' savings, as it is government-backed.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7647914.stm