Business Economics

Are The Five Forces Wrong?

by Paul Simister on March 18, 2013

One of the very best known strategy models is the Five Forces Of Industry Profitability that has been developed and promoted by Professor Michael Porter. Background To The Five Forces Analysis Model The Five Forces Analysis model was first introduced in the Harvard Business Review in 1979 in an article by Michael Porter called “How […]

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Is Economic Growth A Force Of The Past?

by Paul Simister on December 6, 2012

In the UK the Chancellor made his Autumn Statement yesterday updating Parliament and the electorate on the economic woes. Things don’t look good and it’s hard to see how the UK can keep its AAA credit rating that keeps government interest rates down. The basic message is that government spending is high while tax receipts […]

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What Can Be Done To Boost The UK Economy?

by Paul Simister on December 2, 2012

Chancellor George Osborne will give his autumn statement later this week  (December 2012) with GDP 3.1% below the 2008 pre-recession peak. The peak was 18 quarters or 4.5 years ago and with average annual growth rates of 2.5%, we are more than 13% behind where we could have been if the recession had been avoided. […]

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Tax Dodging Companies & Conscientious Consumers

by Paul Simister on November 24, 2012

With many Western governments running large and unaffordable annual public spending deficits (despite claims of austerity) attention has turned to giant companies who use aggressive tax saving schemes. This includes companies like Google,  Facebook,  Amazon and Starbucks which make high sales in the UK but pay little corporation tax.

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The Well Timed Strategy by Peter Navarro

by Paul Simister on November 27, 2011

The Well Timed Strategy :  Managing the Business Cycle For Competitive Advantage by Peter Navarro is an important book which many business leaders will wish they’d read before the 2007 credit crunch and the 2008/9 recession. For too long, talk about the wider business environment through PEST analysis and scenario planning was seen as an […]

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The Misery Index & The Impact On Business

by Paul Simister on October 29, 2011

The Misery Index is a term which is gaining popularity in the press as economic problems and social unrest increase in 2011. What is The Misery Index? The misery index is a composite measure made up of two important measures of economic activity:

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Economies Of Scale & Minimum Efficient Scale

by Paul Simister on October 27, 2011

Today I want to step away from differentiation and look at the cost side of strategy and in particular the impact that economies of scale can have on an industry and how, in some markets, size really does matter in business strategy. Background To Business Strategy I have looked at what is strategy and why […]

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Impact Of Tax On Business

by Paul Simister on October 4, 2011

As part of helping you to apply PEST Analysis for scenario planning I want to examine the impact of tax on business. First a disclaimer. Although I’m a chartered accountant I know next to nothing about tax and this article in written from a UK perspective although I expect its lessons for strategy purposes will […]

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It’s pretty clear that many of the major economies of the world are in a mess and that austerity and cuts are going to be on the agenda for years. This presents a challenging economic environment for businesses to operate in day-to-day and to plan for the future strategically. I get very frustrated with the […]

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June 24th was a quarter day and that means in the UK, rents became due for the next three months and it created a wave of insolvencies among big retailers like Jane Norman, Habitat, TJ Hughes and Moben. Allegedly other retailers are under severe financial pressure like Clinton Cards and HMV. Even the giant electrical […]

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Economists have a concept called perfect competition but as a business owner it won’t sound perfect to you. What is Perfect Competition? Perfect competition is a world where markets are in equilibrium and none of the firms who are competing make a profit, they just cover their cost of capital. This is the enemy to […]

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The Basics Of Supply & Demand

by Paul Simister on February 15, 2011

If you learn economics, one of the first things you’ll be taught is the law of supply and demand. It’s like a great big X on a graph of prices and volumes. The demand curve slopes downwards with the basic rule that as price decreases, then demand increases. Or vice -versa – as prices increases, […]

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