Answers to practise exercise 2:page 26

1.Non-current assests(fixed assets): 191

2.Currents assets: 57

3.Current liabilities: 26

4.Net current assets (working capital): 31

5.Non-current liabilities: 16

6.Net assets (total net assets): 206

7.Total equity(capital): 206

Group exercise 5:An armaments manufacturer saves 1000 jobs by supplying arms to North Korea!

Supplying arms is one of the main businesses for the Government.Therefore,Governments of many countries will be the main customers of this business.Especially in the countries that have wars,or cold wars,demand for arms will be price inelastic.So arms manufacture may make a big revenue by supplying arms to other countries.

They will have to invest in the defence army of the country.Therefore,thay have to buy arms for protecting,and suppliers will be satisfied because of the high demand in the war,the place of killing and fighting.So,this is an ethical problem as well.PEople who sell arms facilities will be against moral thoughts.They sell products and material which kill people,so they are killers as well.

In another hand,unemployment will be reduced as it will safe more than 1000 jobs.Which is quite a lot.So it improves country's economy because of reduction in redundancy and unemployment.Also,the government may put a high tax on it,and may increase their budget.So that this is the good way of making a budget surplus

Dilemma 7:The liar

Poor Zjamel.Her boyfriend seems to spend more time with Ethel than with her these days."Are you two having an affair?" she asks him,more by way of a reminder that she exists,than out of any real concern

But Bernand is having an affair with Ethel.On the other hand,he doesn't look on it as a "serious" affair.Ethel is married,and he is basically quite committed to Zjamel,who has been through a rough patch recently.He doesn't want to upset her,eventhough he doesn't like lying either.Gritting his teeth then,and remembering Nietzsche's dictum that "lying is a necessity of life",just part of the "terryfying and problematic character of 'existence",he says:"Of course not,darling",and gives her a big kiss.

Zjamel's heart picks up ,and she feels much better.And anyway,in a few months Bernand and Ethel have got bothered of the affair and no one ever thinks about the matter again

To discuss this,first of all,....I'm not married...how can I know???????????

But anyway,I think he did the right choice."Lying is a necessity of life"This makes sence as well.

Friedrich Wilhelm Nietzsche was a 19th century German philosopher and classical philologist. He wrote critical texts on religion, morality, contemporary culture, philosophy and science, using a distinctive German language style and displaying a fondness for metaphor, irony and aphorism. Nietzsche's influence remains substantial within and beyond philosophy, notably in existentialism and postmodernism.

"Lying is a necessity of life",just part of the "terryfying and problematic character of 'existence",especially in this case,probably this lie saves his future marriage and could be his life.Even though lying is negative but in some cases,it's needed.The easiest example of that is doctor's ethic.If the doctor recognised the patient has deadly illness,he can't say straight face to face with him that there's no way of saving him.If he told so,it will be the same as kill the patient.Therefore,he will have to lie to cheer him up and there could be chances to help him to escape from the illness.

According to the business,lie could be beneficial but also causes problems as well.Imagine every worker in a company cheats on the financial factor of the company,and reports fake reports to the manager,of course it won't be equily between workers and managers.This may affect the future of a whole company or the sales and profit of the company.
In my opinion the only person who can lie is the head of it.As they have the highest power of the business,therefore,they can do without affecting other members of the company

It's about philosophy+business,,,my brain is not for phylosophy...= =,,I hate it

Business Idea(Why not?)

Today when I was eating lunch,I and my friend were talking about how awful the breakfast is and how repitetive the lunch is!

And then I found out that why not open up a small fast-food restaurant right next to EF?Ok,Now I'll evaluate this idea.I think this idea is really relevant and reasonable for residence students

First of all,This fact is well known in EF.Everyone can interview any student who's living in EF residence..how awful the breakfast is...It's always always always the same!!!!Bread and cereals.I love cereals so much,but when I came here...I eat it everymorning...And I started to feel EWWW when I see it...Ok...Can u imagine everymorning FOR WHOLE 2 YEARS eating bread and cereals!!!!!!!!!!!!:(((((((((If you want to know detailed about breakfast u can see my old post)

And also,students complain about the lunch food is becoming worse and worse.What's the problem.Maybe because eating the same food for a year,like me, is tooo boring and all people who were studying here for a long period of time get tired of it...
Why???We paid a lot of money,to get awful breakfast and lunch...No WIFI in their own rooms,broken cases in the room,broken washing machines even though they have just been replaced..and totally new....= =

So by opening a fast food restaurant next to EF school will attract EF students very much in my opinion.They can exchange their meal.sometimes eating in the new restaurant with delicious and cheap food...and sometimes in EF.The main customers will be EF students.It can't be located right in the Pullens Lane because there are no people around to advertise.In another hand,it can be located in London Road right next to Pullens LAne,so the time to move to the restaurant won't be wasted a lot....

Nice idea isn't it?:D...Surely one thing,the demand for EF students will be price inelastic.

Mind Map:Business Studies A2 Unit 1 Chapter 1 Revision

Here is my mind map about the key points of chapter 1

How can EF increase their profit(continuos)

I just recognised that the first and the most important factor that EF may increase their profit is.......Increase the WIFI QUALITY!

Why not?.WIFi is one of the facilities that a school must have.For example,before I have a choice between 2 colleges.One in Reading and one EF Oxford.So I asked both of them,do they have WIFI?And the college in Reading they said,they just open it on weekends...not like in EF,WIFI is opened widely and full timed.So that's why I chose EF...but......
Well,Ef tried so well....to create a new assess point in new residences but...without turning on for a whole week!!!!!And from when I came to the school,there is no WIFI in my room!!!!!OMG!!!!.....
How about blogs???How about UCAS????How about tutor2u?????...Without WIFI..I cant come tot hose usefull websites:D........

Please......Please EF...I beg u....can u instal for us a normal WIFI access point...with normal quality...I can't do my daily blog!!!!!!!!!!!!!!!!!!

Beavis and Butt Head

HAhahahaha:)))BEavis and Butt Head is so funny:)))Recommend to all to watch this cartoon...
A big thanks to Mr.Chris=))))

Niall Ferguson-Historian and author

Reduce the national debt

There is usually a budget deficit in the country's economy,and UK is not the exception.UK has high economic growth ,but that doesn't mean that UK has a budget surplus.UK imports a lot form many countries such as China,or imports high technology products such as Japan.So the Organisation for Economics Co-operation and Development estimates that the UK national deficit will rise to 14 percent in 2010-the highest in the Western World.

Therefore as you can see how big is the debt for British economy.In longterm,this will cause many other problems.Furguson argues that the scale of this debt burden will cause interest rate on government bonds to rise,making long-term inflation likely.

So probably,Ferguson's way is quite reasonable for the situation like this.But the problem with this is the government will reduce their spendings and may raise taxes.It could be a direct tax or indirect,which will not be beneficial for people and this may lead to inflation as well.Because,with high tax,people will claim for higher wages.So the labour cost has increased and this may increase the price of all products.

Also,the government will reduce their spendings on national health service and education,or in infrastructure investment.Furthermore, ceteris paribus,the aggregate demand will reduce

High-speed rail

High-speed rail is a type of passenger rail transport that operates significantly faster than the normal speed of rail traffic. Specific definitions include 200 km/h (125 mph) and faster — depending on whether the track is upgraded or new — by the European Union, and above 90 mph (145 km/h) by the United States Federal Railroad Administration, but there is no single standard, and lower speeds can be required by local constraints.

High speed trains in the Midwest would be three times as energy efficient as cars and six times as energy efficient as planes. Additionally, trains pollute less than cars and airplanes, improving air quality.
At distances of less than 400 miles, high-speed trains can deliver you downtown-to-downtown almost as fast as airplanes at a fraction of the cost, and can do so in virtually all weather.But the problem is,is it neccessary for a short trip such as from Oxford to London?OF course not because the ticket fee is probably much higher than taking a coach,so it's more convinient to sit on a coach for just almost an hour to come London

Furthermore,to invest in those infrastucture such as high speed rail needs a big amount of money!So it will reduce government's budget.This will lead to a decrease in investment of the Government to NHS or education.
But The economic value of the improved mobility has been valued at $13.2 billion through 2030.But this is just expectation,with a credit crunch like now,people will not be easily to attract to this way of travelling.

Cost-effective

• Costs just $1 million per mile – less than 1/10th the cost of highway construction.
• Every dollar of cost yields between $1.70 and $2.50 of benefits

But this is a really good way of reducing congestion for the country's economy.Many people like travelling and also in the future high speed rail will be instead of underground system so there will be less public transports,such as normal trains or buses.And there will be less negative externalities because of pollution

WOW Finallyyyyyyyyyyyyyy!!!!!!!!!!!!!!!!

How EF can increase their profit?

Firstly,EF can increase their sales revenue.By that way,if the cost will be the same so the profit will increase.Therefore,EF can make or encourage people to come to learn.So there will be more customers for EF.There are quite many ways of attracting people to come to learn.Because EF is a global English learning system so advertising is quite important.Otherwise,other language learning schools will have opportunity to compete with EF.EF can advertise on the TV,and because EF is well known and in my opinion, it has a big benefit from finance,so the cost of advertising is not a big deal for EF.Or EF can advertise straight to people like providing and supplying school bags,pens,stationery stuffs with their brand name in it.And also they can add some interesting phrases in it to attract people to buy.
But the most important factor to consider about,especially in the period of the credict crunch is lower their PRICES PRICES PRICES.(especially fo books:D).Considering thi stationery stuffs,the main aim for supplying i could be just advertising.So it can provide those stuffs with low prices but high quality.
Or EF can create some activities and more facilities directly in schools.Some schools such as in Oxford they have machines for drinks already.So it will be beneficial if there will be game machines but you have to pay for it.Some game addicted people,demand for it will be inelastic....And I know in EF there are some:D
Also EF can reduce its cost.Reducing cost is easy,for example buy lower price facilities,such as EF Oxford billiard:D.It was broken for a short period of time,so maybe because it has a low quality and low price as well.
Anyway,the best way of increasing EF’s profict,is lower the price in everything...books,learning fees..Everything,then I will love EF so much:)))<3<3<3

Shai Agassi - alternative energy pioneer

Oil is one of the scarce resources.As we all know there are limited scarce resources but unlimited wants.So one day those scarce resources may cause a high increase in inflation because of the demand for oil.It will cause a demand pull inflation..Therefore,there are many invations creted to substitute the usage of oil.One of those invations is electri vehicle which use battery in stead of oil...= =.....

"Agassi's new place applies the business model of mobile phones to cars:the customer buys or leases an electric vehicle from a partner car company,and then pays a per-mile rate for battery usage"Don't you thing this idea will attract people to invent on?
The materials to use in this invention is very dear.Therefore ,the product can't be cheap as well.

Also it's more convinient to use oil than charge electricity because it won't waste your time on your way.Furthermore,it will be a big trouble for users to use it..if the battery is empty and you're on your long way.

Well the biggest benefit from it I think will be :

• Lower the demand pull inflation because the demand for oil is lower.
• And less pollution which causes negative extrenalities.

Cars using oil,causes a lot of pollution and it will cause many troubles in the long run for third party people,especially on health.This also will lead to an increase in cost of National Health Service.

"we're going to spend 800 million pounds in teh off-chance that we'll get the entire countru going without oil-oh,and 650 million pounds will go into creating green jobs tomorrow morning.Would you say it's worth a try?" said Mr.Agassi....Well he's right but not all poeople know about the cost of oil,so I think this way won't help a lot.especially within the crisis period, with a such an high price of the new product...poeple won't buy it:D

Extra work page 23

Economics ia a social science ,a study of people in society and how they interact with each other.Is it possible to use a scientific approach effectively in a subject that deals with human beings???

What????= = ><

Case study question 2

*Using examples,discuss the extent to which appropriately set functional objectives and well-planned trategies might help Sainbury's achieve its corporate objectives

• Space growth-10% new space by March 2010.
• Development of grocery and non-food ranges.
• Costs -cost savings of 155 million pounds in 2007/08,thereafter ongoing cost savings to offset half their operating cost inflation
• Channel growth through online and convinience expansion
• Profit-profit growth flowing through at a percentage rate in high single digits
• Sales growth-total addition sales of 3.5 billion by March 2010
• Capital expenditure of 2.5 billion by March 2010
  
• Cash flow neutral over 3 years

To achieve it's corperative objectives Sainsbury has to maximise its profit and increase their reputation.

By increasing it's profit the company has to increase their sales.For example:"reaching more customers through additional channels" so more customers will come..more products they will sell...the sales increased.
Or by lower the cost it may also increase the profit."Cost savings of 155 million pounds in 2007/08""OR "capital expenditure of 2.5 billion pounds by March 2010" which can be a miinimum investment to have the lowest cost.

To increase their reputation,for example:" great food at fair prices: to build on and stretch the lead in food."Of course for a customer,the factors that they care most is the price and the quality.By that way,with a cheap price,more people will join to be Sainsbury's customer,and the reputation of the supermartket of course will be improved.OR " Channel growth through oonline and convinience expansion",by internet more people might know about Sainsbury because interenet is very well know and well used in the last 20 years.OR" growing supermarket space will encourage and attrat consumer to be satisfied and the image of the supermarket will be good and it's beneficial for the supermarket's reputation:D

Hurbank plc

Hurbank plc is a long established British producer of luxury clothing and accessories.Heavy investment in marketing,extensive use of British image in it's promotions and good media coverage have positioned Hurbank as a premium brand.Therefore,this brand supply giffen goods.

According to the table of details of Hurbank plc,annual pay of factory floor staff is 18000 pounds per annum,which is generally suitable for the floor staff.Annual labour turnover 3% per annum which is very low,and a big benefit for the company.Percentage of shirts returned by customers last year due to defects is 0.01% and it's very very beneficial!According to that data we can conclude that their products are high quality products and may have a good reputation.

According to appendix B unemployment in the region of the new factory in China is 14%.Well China is a coutry which is over popullated ,therefore 14% of unemployment is quite high in my view.So it could be a benefit for the company because it will be easy to recruit wokers there.Average annual pay within Chinese region and average proposed annual pay for the staff in Chinese factory is very low.So the cost of labour is reduced a lot.But I'm not sure about the lead time to retailers is benefiacial or not.Because it's 4 weeks...So it's 4 times longer than in Cellton factory.So if the lead time is too long,the quality of the product and the trust of customers will be reduced.

In appendix C Sales and profit has been improved .And may have a positive trend so the financial problems to open up in China is quite not a big deal.But percentage of shares owned by international investors including pension funds and banks is 55%,so therefore 45% is a share for manageres and authorities,which in my view is quite low

But in overall,Investing and opening a factory in China is beneficial for the company,and I would invest on this :D

Chris Anderson-Pop Theorist

Reinvent business woth digital economics

Chris Anderson shows us how digital businesses and online services are so usefull and well known nowadays.Therefore,people may use this strength to start up a business or use them during the business progress.

His 2006 book "The Long Tail" explained the economics miracle of Amazon.com,illustrating how a company could make more money selling niche products than mass products thanks to the internet's infinite shelf space.It catapulted him to the A-list of best selling pop theorists.

I totally agree with his idea.Nowadays,almost all people know how to use computers and networking,which was not quite well-known 4o years ago.The advantage of that is,it's easy to research,easy to trade and also the fastest way to find informations about the products.There are no shops that don't have a website included.

Furthermjore,the cost for the owner of the business will be less.They don't have to spend a lot on advertising.Advertising on the internet is also very easy.OF course,by television,the details and information about the product will send faster and also higher quality advertisement.But for simple products,which can be inferior goods,which are reasonable for the crisis ,is quite a good way to advertise.

Anderson says the most interesting new business models follow a "freemium" template:that is,free product that sell premium services.This is the model used with success by software applications such as Spotify,Skype or Wordpress.

So Chris Anderson's Theory is quite right and I agree with his opinion."The old model for business was 'make something people will pay for'.The new model is people will want and something they'll pay for'.

OMG!

I cant access to the network....There is no wifi in my room..and It's so cold outside to sit and post blogs...Anyway it's till Tuesday..So I'll do it tomorrow.....EF is still....BS!

Evaluation:Lapdesk

A new business idea has come out,which called a lap desk
The All new UNIQUE "Desk for Your Lap" - overcomes back posture problems and uncomfortable sitting positions when you are trying to write on a pad of paper balanced on your lap.
Perfect for Meetings and Conferences, Ideal for work in the office or at home, Brilliant for children in the back of the car on journeys, THE Best companion for wheelchair users.
The LAPDESK features a quick and easy to use system of creating the perfect lap-based angled writing surface while the folder sits comfortably on the users lap.

So this new product is definetely suitable and reasonable for disabled people,especially people on wheelchairs.It's hard for them to stand up and use a desk so they can use lapdesk ans their moving desk.Therefore,any wheelchair people can be a businessman.The strength of this product is the design.It's a really small size and light bag,which we can put anything in it.

But why people have to invest in such a product that have so many competitors.Even just a book which u carry with can be a desk as well.Or as a businessmen,they all have their own laptops,where they can put papers on it and use as a desk.
Also the lap desk won't be useful at night or in the dark places,because it doesn't have light on it.

*Strengths:

• Easy to carry with
• Useful for disabled people
• Can be a general bag in stead of a desk
• Good design
  

*Weaknesses:

• Too many substitutes
• Too simple business idea
• Just useful for businessmen,not for students or non-business people

In my opinion I won't invest in it because of those weaknesses.

• 
  

Kip McGrath

This is what I found about KipMcGrath centre.This post is for tomorrow lecture for AS students.
Speaker: professor Lex...xD xD xD

There are over 680 Kip McGrath Education Centres in 20 countries around the world. The curriculum is adapted for each country but the successful learning and business methods are maintained. Last year Kip McGrath Education Centres earned approximately $80 million in tutoring fees. In any school week over 50,000 children are being helped in our centres.

All Kip McGrath Education Centres are owned by franchisees (in the same way that individuals own McDonald's restaurants). The company provides support to all Kip McGrath Education Centres around the world. If you’re interested in buying a franchise, review the links below to investigate the current opportunities.

Our business methods work and our franchisees are very happy people. We have brought sound business practices to education, an area that traditionally has lacked these procedures.

Part of our success is making sure that:

• Our Franchise Owners are well trained and engaged in the process.
  
• We provide organised and easily accessible materials.
  
• We’re always finding new ways to introduce new technologies that excite our teachers and students.
  
• We promote a culture of success.
  
• We always provide company support.
  
• If you’re interested in buying a franchise, review the links below to investigate the current opportunities.

To own a Kip McGrath Education Centre you must:

1. Really care that children are literate and numerate.
2. Be willing to learn our business methods that are taught in our training courses.
3. Be able to interact with the teachers employed in the centre.
4. Be a trained and qualified teacher or employ teachers.

Sir Richard Branson-Virgin Boss

"Entrepreneurs-meet the developing world

Smile and say:"the worst the crisis,the greater opportunity.".That's Sir Richard's view of the recession.It might be yours,too,if you were just finishing your lunch of chilled champagne and grilled lobster on your private,sun-washed beach.But then nobodo offered the Virgin maestro his own Caribbean island.Nor the chef.Nor the maseuse waiting for him under the palm tree.

Sir Richard knows a thing or two about recessions-he reckons he's lived through a handful of them,and if he's sure of one thing,it's that recessions provide an abundance of opportunities.

"A good entrepreneur,very early in life,thinks of the world as one place,",he maintains.Chase after the opportunity wherever it arises.With a wry smile,he nuances that old advice,saying you might do better yet to hop on a Virgin Atlantic plane.He shares the emerging consensus that developing countries will lead the world economy out of recession,and that returns on investments will be higher there for the foreseeable future.That's where to look for the next dawn."

Sir Richard Branson tried to prove that there are plenty of opportunities to make a business be more successful and suitable for the crisis.His opinion shows people just need to catch a chance and have a relevant business idea to suit the credit crunch.

Virgin Group Ltd is a branded venture capital organisation founded by British business tycoon Sir Richard Branson. The core business areas are travel, entertainment and lifestyle, among others. Virgin Group's date of incorporation is listed as 1989 by Companies House, who class it as a holding company, however Virgin's business and trading activities date to the 1970s. The net worth of Virgin Group Ltd as of September 2008 is £5,010,000,000.So that,Virgin is quite well-known brand.

In my own idea,I think he's definetely right.There are many opportunities for many businesses to be better.The main key point is the price.In reccession,the lower price,more people will buy your products.So the only way to increase sales,is increase the volume and sell it with a low price.People might not buy expensive and high quality products like giffen goods because their income is low.

For example: supermarkets might have more customers because it sells cheap products.In stead of going to pubs and buy expensive can of beers,consumers may buy those inferior goods in the supermarket because of the low price.Therefore,in the crisis period of time,supermarkets,which is one of the examples,will have an opportunity in business

Revenge!!!!

I'm back!!!!...From now on.....I'll come back to my daily useful blog!!!:))..And "now on"...will be next Monday:))