What makes Ireland great, makes Ireland great for business

IDA Ireland, the agency responsible for overseas investment in Ireland has released its new TV ad for June 2013. IDA Ireland’s current strategy is based on a policy of attracting investors who are seeking locations for advanced manufacturing or office based activities which depend on highly skilled processes or are involved in high value added activities e.g. ICT, knowledge based industries and biotechnology.

Ireland has an excellent track record as a location for foreign direct investment (FDI) and has been chosen by many of the world’s leading global brands. For more information visit the IDA Ireland YouTube Channel and the IDA Ireland website.

To read real life case study examples about foreign direct investment (FDI) in Ireland visit the SBP Business 2000 website and read the Microsoft Ireland case study Productivity Driving Economic Growth and the Department of Finance Case Study Promoting a Growing Economy.

Understanding Customers to Improve the Customer Experience

Identifying who your customers are and understanding them is essential when designing a successful business strategy. Put simply, understanding your customers helps you service them better. A Company’s mission and vision should put the customer and the customer experience centre-stage. And in terms of delivering its mission and vision, a business needs to be able to understand:
•        Who its customers are?
•        What are their needs?
•        What is their customer experience?
•        How are they performing?

In order for a Company to deliver a strong customer-focused strategy, it must have a clear and detailed understanding of who its customers are and their specific needs. Each customer group, segment or target market will have a specific set of needs.

Market research
Businesses can perform both primary and secondary market research to inform its key performance indicators (KPIs) and help understand the market. 

KPIs help a business evaluate how it is performing over time. A business must agree a number of KPIs in different areas of its strategy so that it can periodically review these and measure how it is doing. It is important to constantly measure performance to further meet customers’ needs in the future.

Primary market research is research you can compile yourself or hire someone to gather for you. A Company conducts primary market research to understand its customers’ specific needs and wants and to track:
• customer satisfaction with a range of service areas
• market trends in performance over time
• performance measured against competitors.

To understand its customers businesses can use quantitative and qualitative research. Quantitative research can be done by conducting surveys, focus groups and interviews. This involves the gathering and analysis of data that is measurable and can include statistical results, financial data or demographic data. These can take place on-site but can also be performed online or via telephone. Qualitative research involves collecting, analysing and interpreting data by observing what people do and say. It refers to the meanings, concepts, characteristics and descriptions of data collected.

Primary research
There are strict market research standards to ensure that the research is of high quality, relevant and accurate. Often research is conducted in partnership with independent research and data management agencies.

Market research must be:

• relevant – the Company must be clear on the overall objective/ goal of its market research i.e. what it wants to find out.
• representative – appropriate methodology and sampling procedures must be followed. The goal is to obtain a sample that is representative of the group as a whole, without having to survey or interview every customer.
• timely – the research must be conducted on a regular basis to ensure that it is up-to-date.
• objective – it is important that research is objective to ensure its accuracy. Research can be conducted by independent research agencies that operate to international standards.

Secondary research
Secondary research, also known as desk or field research, involves measuring a business itself against competitors and referring to research compiled by other parties. It can include reports by government agencies, trade associations or other businesses within the same industry. Other industry analysis and reports from peers can be used as well as information from customer comments and complaints.

Creating opportunities using market research
Through market research and data collection, businesses are able to get a clear understanding of the demographic profile of its customers and their needs. It helps gains a greater understanding of how its customers use products and/or services and gain insight into how to manage the customer experience. In turn this allows a company to develop marketing strategies and to tailor its products and services with these target groups clearly in mind. This will give customers confidence in the business or brand and will make their experience more relevant, compelling and enjoyable.

For more information on Understanding Customers read the Dublin Airport Authority case study Market Research to Improve the Customer Experience in the Sunday Business Post Business 2000 13th Edition. For a full list of SBP Business 2000 DAA business case studies, including Visual Communication at Dublin Airport and DAA Terminal 2: Designed for the Customer visit the DAA case study archive.

And for for other teacher resources, student revision tips and classroom teaching tools, visit The Sunday Business Post Business 2000 website.

16 Ways Teachers Are Using Pinterest

Pinterest is for more than just looking at photos of brands you want or recipes you love. It’s a powerful tool for teachers and students around the world.

This infographic from OnlineUniversities.com, shows 16 different ways teachers are using Pinterest for education including innovative ways to curate content and collaborate ideas. There are many, many more.

Pinterest is free and can be used to curate and share images, diagrams quotes and all forms of visual content including suggested reading materials. It can also be used to encourage students to participate and present student work. It can also be used to link with other educators and promote collaborative learning among students.

For other teacher resources, student revision tips and classroom teaching tools, visit The Sunday Business Post Business 2000 website.

CSR and Environmental Sustainability

Corporate Social Responsibility (CSR) is the concept that companies have an obligation to consider the interests of all its stakeholders and environmental concerns in all aspects of its operations.

Stakeholders are all the people involved in a business. They include the investors who finance the business, the employees who work there, the local communities where the business is situated and the consumers who purchase the product or service.

A successful business must identify and recognise the needs of its various stakeholders. CSR is closely linked with the principles of sustainable development, which argues that companies should make decisions based not only on financial factors such as profits or dividends, but also based on the immediate and long-term social and environmental consequences of their activities.

Characteristics of an environmentally responsible company include:
• Consultation with stakeholders prior to developing new products or policies.
• Honesty about the actions of the company.
• Awareness of how the company’s policies can impact on stakeholders.
• Openness and transparency with stakeholders about company practices.
• Sensitivity to the requirements of the local community and environment.

Environmental responsibilities of businesses

The environmental sustainability of any business is restricted by planet earth’s finite resources and the limited capacity of the land, water and air to assimilate waste. As part of a CSR strategy, a business should minimise where possible the resources it needs and the waste it generates.

This is achieved by adopting efficiency measures and by switching to renewable resources and finding ways to re-use or recycle waste which does not degrade the environment.

Socially responsible companies conduct environmental audits to assess the impact of their business on the environment.

To learn more about Corporate Social Responsibility and Environmental Sustainability in business read the Diageo Ireland Environmental Responsibility and Sustainability case study from the Business 2000 11th Edition.

Conflict in Business

In the majority of workplaces, employers and employees work agreeably together. However, conflict in the workplace is almost inevitable. Potential sources of conflict in business can be heightened by differing objectives, negotiating style or a lack of trust between employers and employees.

The list of possible causes of conflict is endless but the Industrial Relations Act, 1990 defines the following as legitimate causes of official disputes:
● claims for improved working conditions
● claims for better pay or bonuses
● an unfair disciplinary procedure
● the threat of redundancies
● discrimination or unfair dismissals.

Sometimes relationships in the workplace can suffer for more personal reasons as well: the employees might feel that the boss is unfair, picks favourites, or pushes them too hard, and the boss might feel that his or her employees are underproductive or do not listen to him or her. There can also be tension among the employees, caused by bad relationships, differing objectives, or different tactics for achieving the objectives.

Competitive relationships

Competition between employees can also cause workplace conflicts. Undoubtedly, a certain amount of competition between employees can help a business, if it means that employees are working a little harder trying to distinguish themselves from their colleagues.
However, this type of competition can be carried to a destructive extreme.

Consider the following workplace scenarios:
● one employee taking credit for another’s work or ideas
● an employee trying to make another look bad by sabotaging his or her work
● two employees competing overzealously for a promotion and causing stress to those around them
● one employee benefiting at the expense of another, by stealing his or her clients or accounts.

Some of these types of conflict are more serious than others, but they all ultimately hurt the business. Conflicts cause stress, both to those directly involved and those around them, and stress can badly hurt productivity. Less work gets done, and the work that does get done is not done as well.

Conflict can also cause absenteeism – workers taking more sick days, both legitimately (as stress can cause health problems) and illegitimately (e.g. the employee decides not to show up to punish the employer). If the conflict doesn’t get resolved, it can cause disgruntlement or low morale among the workers. This makes them more likely to quit their job, so that the company has to bear the expense of hiring and training in somebody new.

Workplace conflict could even affect a company’s customers, if, for example, the salesperson is less enthusiastic in pitching a product he or she no longer believes in, or if the customers read about the conflict in the newspaper and it gives them a negative impression of the company.

To learn more about Industrial Relations and workplace conflict resolution read the Working together is better for business case study from the Labour Relations Commission from the Sunday Business Post Business 2000 14th Edition.

The Product Lifecycle

Businesses must evolve to meet the changing needs of its consumers and to respond to the market in which it operates. In order for a business to remain competitive it needs to be dynamic, adaptable and responsive to changes in the market. Businesses can do this by researching and listening to its customers and constantly evolving to meet their needs.

needs to be dynamic, adaptable and responsive to changes in the market. Businesses can do this by researching and listening to its customers and constantly evolving to meet their needs.

The product lifecycle model helps businesses identify the different stages that the sales and profits of a brand go through during the course of its lifetime. There are five stages to the traditional ‘S’ curve product life cycle: introduction, growth, maturity, saturation and decline

1. Introduction: In this stage, costs are high due to heavy marketing spend to create awareness. Sales tend to be slow as the brand is not yet known and is building its customer base.

2. Growth: This stage shows growing market acceptance and increasing profits. Sales increase and the customer base expands.

3. Maturity: The rate of sales growth slows down during this phase. The company now focuses on creating brand extensions and promotion offers to boost sales. Extensive understanding of the market and its needs is critical to ensure future sales. This is the most critical stage of the lifecycle. If a brand is handled well at this time it can survive indefinitely.

4. Saturation: Sales slow down as the market becomes saturated. Profits even out and can decline at this time. There is normally an increased investment in marketing to defend against competitors.

5. Decline: Sales slow down dramatically and profits fall off. The brand may be dropped to make way for new brands so the cycle recommences.

There are variations on the traditional ‘S’ curve product lifecycle. Examples include Christmas toys, which are often fads in that sales rise quickly and subsequently fall quickly and style which is cyclical while fashion follows the more traditional ‘S’ curve.

To learn more about the product lifecycle and brand development read the Musgrave Brand Development case study (11th Edition) from the Sunday Business Post Business 2000.

New Product Development

The development of successful new products is one of the ways in which companies can achieve competitive advantage*. New Product Development (NPD) is a process which carries a great deal of risk – over 40% of all new product introductions fail at launch! For NPD to be effective, companies have to nurture an innovative corporate culture** so that everyone in the organisation is encouraged to be innovative in their work

There are many great ideas – many of them generated by chance. However, only few products make it through to the end of the process. The further a product goes through this process, the more expensive it becomes. As products progress, the company is making an increasing commitment in terms of resources. Once a product is developed, the launch marketing costs are significant; so a company must carry out extensive market research to ensure a product has the best chance of appealing to the market.

There are many great ideas – many of them generated by chance. However, only few products make it through to the end of the process. The further a product goes through this process, the more expensive it becomes. As products progress, the company is making an increasing commitment in terms of resources. Once a product is developed, the launch marketing costs are significant; so a company must carry out extensive market research to ensure a product has the best chance of appealing to the market.

Market Research
Market research is the gathering, recording and analysing of information about markets and their probable reaction to product, price, distribution and promotion decisions. Market research is critical for successful NPD and marketing mix planning.  Gathering information can be done by either desk or field research. Desk research involves analysing all the internal and external information available. Field research is done by contacting consumers either using surveys, questionnaires, feasibility studies or sampling, among other methods to get primary data from the target market.

There are various ways of carrying out market research:

◗ Do it yourself: For small companies with limited resources.

◗ Market research department: Very large organisations may have their own dedicated market research department.

◗ Market research agencies: These companies specialise in market research. Research may be done with the collaboration of the company’s marketing department, but fieldwork will be carried out by the agency.

◗ Problem definition: This is the realisation that a marketing problem needs information to find its solution.

◗ Research design: This defines what form the research will take and what will be achieved. It encompasses objectives of the research. The research design also includes a timeframe and the all-important costings.

◗ Data collection: This involves the actual carrying out of the research. There are two main categories of market research:

◗ Qualitative research: This is exploratory research which aims to determine consumers’ attitudes and values in a way that sampling using questionnaires cannot. For this reason qualitative research relies on some form of interaction with the consumer. Main forms of this are focus groups, in-depth interviews and observation.

◗ Quantitative research: Surveys and short interviews are the main forms of quantitative analysis. Here values and attitudes are measured and questions are generally given in a “yes-no” or scale from 1-5 format.

◗ Data analysis: The form of analysis will depend on the type of research used e.g. qualitative analysis will generally involve identification of some major issues and present the nature of the comments made on them. While there are now computer programmes which can help interpret data this is generally used for interpreting qualitative data, which is more statistical.

◗ Report writing: The final report will summarise the objectives of the research and give detailed analysis. This is presented in graphic form where possible (bar charts, pie charts etc). It’s important that the information is clearly presented so that managers can draw clear conclusions from the report. An executive summary at the beginning summarises all major findings.

Glossary:
Competitive Advantage: When a company has an advantage over its competitors which they cannot copy – at least not in the short term. A successful brand or good cost management system would be sources of competitive advantage.

Corporate Culture: The values, processes and encouraged behaviours in an organisation. “The way things are done around here”.

To learn more about New Product Development and Market Research read the Cadbury Ireland “New Product Development” case study from the Sunday Business Post Business 2000 10th Edition.

Click here to see the full archive of SBP Business 2000 case studies and follow us on Facebook.

Business Innovation during Recession

Multinational companies generate much interest in the media when they announce investment and job creation in Ireland. Less media coverage is given to the many small and medium enterprises (SMEs) that create fewer jobs at any one time but account for circa 700,000 jobs in total. SMEs form the backbone of the Irish economy and we depend on them for our future economic recovery.

Recession is a tough time for business but it is also a time for innovation. Some people lack the confidence to start a new business in uncertain times.

However, a business created during a recession can work out well for a variety of reasons:

1.  Everything is cheaper – from land and equipment to office space and supplies.

2. You can hire more and better-qualified staff due to the high number of available employees who have been made redundant in the past few years.

3.  You can get good PR in the media for going against the trend and becoming a success in such difficult times.

4. If your business can survive in a recession when discretionary income* is lower, it will be even more successful when the economy recovers

The rewards of setting up your own business include:

• Personal satisfaction and meeting your esteem and self-actualisations needs (Maslow’s Hierarchy of Needs).

• Profits and income earned can be greater than the salary you would earn as an employee.

Business planning is crucial to success in business. It is the key to getting things done and making things happen.

*Discretionary income: The amount of an individual’s income that is left for spending, investing or saving after taxes and personal necessities (such as food, shelter, and clothing) have been paid. Discretionary income includes money spent on luxury items, holidays and non-essential goods and services.

To learn more about business enterprise and innovation and supports for SMEs in Ireland read the Sunday Business Post Business 2000 15^th Edition, Ulster Bank case study “Supporting Enterprise”.

Business Expansion: Organic & Inorganic growth

The two main methods of business expansion are known as organic growth and inorganic growth. Organic growth is the growth that comes from a company’s existing businesses, e.g. opening a new branch, increasing sales by selling to new markets or by selling new products and by franchising or licensing the businesses products. Inorganic growth on the other hand is the quick expansion of a business which is achieved by merging with, taking over or forming an alliance with another business.

1.  A merger is a friendly/voluntary amalgamation of two firms for their mutual benefit. It involves the mutual consent of two equal companies to combine and become one entity. A single legal entity is formed once the merger is approved by shareholders and neither business has control over the other.

2.  A takeover (acquisition) occurs when 51% (or more) of the shares in a business have been purchased in either a hostile or friendly manner. The acquiring company absorbs the other company, which may lose its identity after the acquisition, becoming part of the acquiring company. The cost of a takeover can be very expensive, as it may be necessary for the acquirer to pay more than the nominal value of the company to achieve control.

Benefits of mergers and takeovers include:

•  Quick method of expansion compared with organic growth.

• Although mergers and takeovers are expensive, in the long-run costs will be lower due to availing of economies of scale and sharing of costs and resources.

•  By merging/taking over a business in another country

•  Possible spreading of risk by diversifying into new product areas. This avoids a business “having all its eggs in one basket”.

Risks of mergers and takeovers include:

•  Different organisational cultures can lead to conflict between different management teams who are used to their own styles and systems. These risks can be reduced by having a comprehensive integration plan.

•  There will often be redundancies, which can cause industrial relations problems.

3.  A strategic alliance or joint venture is an agreement between two or more businesses to share resources and/or expertise and work together over a specified period of time to complete a specific project. Unlike mergers and acquisitions, all parties maintain their separate identities. With strategic alliances/joint ventures all the businesses involved benefit from sharing complementary expertise and skills and increased resources.

The benefits of alliances as a form of expansion are:

•  It is a cost effective method, as resources are shared and costs are divided between the parties.

• The risks of expansion are shared between the partners.

•  It provides each business involved with an extended business network and market.

To learn more on business expansion and growth strategies in action, read the CRH case study ‘International Performance and Growth’ from The Sunday Business Post Business 2000 15^th edition and the CRH ‘Growth Strategies’ case study from Business 2000 11^th Edition.

To access the full archive of CRH case studies, visit the SBP Business 2000 CRH Homepage.

Why is a Business Plan so important?

A Business Plan is a document that sets out the business strategy
and goals and how the business is going to achieve those goals.
It will also contain some other information including what it
sells, to whom and how and when it will make a profit. Whether
starting a new business or looking to expand an established
business, it’s essential to have an up-to-date Business Plan for
your business.

Business plans establish objectives for the business and provide direction for the future. They help give investors (including banks) or shareholders confidence in the viability of the business. Business Plans act as a reality check for management as to the status of the business, actual performance can be checked against targets previously set.

A well prepared Business Plan
is vital when approaching any financial institution for finance. It helps them to assess whether it is appropriate to lend money to the business based on revenue projections and other information included in the Business Plan. If for instance a clothes shop is experiencing short term financial difficulties, (such as reduced cashflow due to a reduction in sales) an updated business plan with cashflow projections, demonstrating the long term viability of the business will be necessary when approaching a bank for additional finance.

To see more on why Business Plans are so important to businesses, read the AIB business case study Managing a Business Through Challenging Times from the Sunday Business Post Business 2000.

Digital Hub’s 10th Birthday Competition

THE DIGITAL HUB IS INVITING PEOPLE TO PUT THEIR STAMP ON WWW.THEDIGITALHUB.COM BY DESIGNING A NEW BANNER IMAGE FOR THE WEBSITE’S HOMEPAGE.  

2013 marks the 10^th birthday of The Digital Hub, an initiative of the Irish government to create an international centre of excellence for digital enterprises.  To celebrate 10 years in existence, a number of events and activities will take place at The Digital Hub this year.

One of the initiatives is a competition to design a new banner image for the homepage of its website.  Widely visited and with a diverse audience, our website is a great platform on which to showcase your abilities.  We anticipate that our website will be visited even more in light of our 10^th birthday this year.

One of the initiatives is a competition to design a new banner image for the homepage of its website.  Widely visited and with a diverse audience, our website is a great platform on which to showcase your abilities.  We anticipate that our website will be visited even more in light of our 10^th birthday this year.

The person/organisation that designs the best banner each month will receive a €300 cash prize and see their design on the homepage of www.thedigitalhub.com.

How does the competition work?

• The Digital Hub Development Agency has set a number of themes for the year. They are: Animation, e-health, Mobile, Gaming, Digital Ireland and Video/Film
• Pick your theme, design the banner to the below specifications*
• Submit your entry by the closing date to exhibit@thedigitalhub.com
• You can enter as many times as you like
• You can enter as an individual or a group
• The monthly winning design will receive a €300 cash prize
• In December 2013, a public vote will take place to select the best banner design overall and that winner will take home a prize of €500
• The winning banner will be live online on the homepage of www.thedigitalhub.com throughout December 2013/January 2014

Specifications:*

• The banner image must be 940 x 287 pixels
• Formats that will be accepted are photos, drawings, graphic design, flash animation
• Entries must be in .jpg, .swf or .fla format
• Entries can be a standalone image or an image that links to an extra video/animation/audio file (eg on your YouTube /Vimeo/ Soundcoud channel etc,) relevant to the theme or to The Digital Hub.

If you have further questions, please email exhibit@thedigitalhub.com.