...Privatisation of Royal Mail: Will this lead to further efficiency improvements? 1. Background In recent years, the postal industry has changed. We have seen a recent boom in internet shopping, and while once Royal Mails sole purpose was to deliver letters, there is now an increasing emphasis on parcel deliveries. The shift in focus as well as the ever increasing competition in the industry, often from firms serving the 'bulk mail' side of the market such as UK mail and TNT is posing threat to the sustainability of the universal postal industry. It was decided in 2011 under the postal services act that in order to maintain competitive and to preserve the longstanding future of Royal Mail that 90% of the company would be privatised. This was seen as the most appropriate option, as the falling demand from consumers as they switched to their electronic communications came at a time where the government was not willing to add to public spending. In the event of this, responsibility for economic regulation was passed from Postcomm to Ofcom, who designed and implemented a new regulatory framework. Throughout this report, we will look at the potential benefits and detriments of privatisation; this will be applied in order to draw a conclusion as to whether the privatisation of Royal Mail was the most appropriate action. 2. Reasons for Privatisation One of the main reasons why privatisation may lead to greater efficiency than public ownership is that governments may not have exercised...
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...Unit 2 Assignment 1 Task A 1. The aim is what an organisation is trying to achieve. The objective is the steps that are taken to achieve an aim. Examples of aims: * Increasing market share * Growth of profit * Survival 2. SMART objectives: * Specific: Clear objectives of what they want to achieve; * Measurable: The organisation has to measure whether they could achieve or not; * Achievable: the organisation sets up objectives so he could achieve it; * Relevant: To assess if what they are going to do it’s going to be as they forecasted; * Timed: it’s the deadline when they set to achieve it. 3. The purpose for setting aims and objectives is to have a clear view of what the organisation is going to do, so that every member of the organisation is going to easily follow it and all of them to work towards the same target. Another purpose would be to give the organisation focus, achieve efficiency, helps plan strategies, gives a basis for assessing performance and allows managers to monitor performance and make changes if necessary. 4. The first person that is interested in an organisation’s aims and objectives is the owner, and after the stakeholders: they could be investors and shareholders. Because they also have invested money in the business. Investors They are the people that put money in an organisation/business and expect that the profit will be high and the risk will be low. They are also concerned about the...
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...the government still has a controlling interest. The Austrian Government indirectly owns the 52.8% of its post office. In the following table compares Royal Mail with Deutsche Post and Austria Post, in terms of revenues, earnings and profits. | Royal Mail | Deutsche Post | Austria Post | Revenues (£m) | 9,279 | 46,347 | 1,975 | Earnings before interest and taxation (£m) | 367 | 2,225 | 152 | Earnings (or profit) | 562 | 1,384 | 103 | Share Price (£m) | £5.64 | £20.48 | £30.01 | Market Capitalization (£m) | 5,640 | 24,758 | 2,028 | Earnings per share | £0.56 | £1.15 | £1.52 | P/E ratio | 10.0 | 17.9 | 19.7 | Return on Sales | 3.96% | 4.80% | 7.70% | % state of ownership | 30.00% | 21.00% | 52.80% | | | | | Financial performance The revenues of Royal Mail, at £9.3 billion, are significantly higher than Austrian (£2.0 billion). However, Deutsche Post’s revenues, at £46.3 billion are nearly five times greater than the revenues for Royal Mail. Profits measured by earnings before interest and taxation has increased for Royal Mail from £277 million in 2010/11 to £367 million in 2011/12. This is mainly due to revenue growth. Parcel revenue increased 13 per cent year on year, with letters revenue growing three per cent. Whilst this is strong year-on-year performance in profits for Royal Mail, profits as a percentage of revenues (referred to as “return on sales” in the table above) of 3.96% is a little lower than the 4.80% for Deutsche Post, but...
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...From 1997 to 2005 conservative party lost three general elections in a row. David Cameron has introduced much reform into the Conservative Party since his ascension into power of the Conservative Party, in December 2005. He has, in many ways, modernised the Party, and has introduced measures that are so wide reaching, that his brand of Conservatism has a name, Social Conservatism. Conservative traditionally believes on less intervention by the government. It means that if any industry and company found itself in financial difficulties then government will not help them. For example if royal mail found itself in financial difficulties then government won’t help them. But Cameron has changed this policy. He said that it is the role of government to help industries if they find. He believes that state has a key role in increasing opportunities and reducing poverty because if any industry finds itself in difficulties then it also affects unemployment. He believes that state has a key role in increasing opportunities and reducing poverty. Conservative traditionally believes on low taxes. They believe that taxes on income and company profits should be kept to minimum. So it is a natural conservative instinct to want to cut taxes. But the David Cameron and his...
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...Unit 15: Managing business activities to achieve results Introduction: There are three sectors of the economy which are public, private and voluntary sector. I have chosen to do research on Royal mail they are they are the largest postal service up to date and has a long history of postal service dating back to the 18th century which is why I will do research on Royal Mail for the public sector along with John Lewis for the private sector. Task 1 Assessment Criteria 1.1 Evaluate the inter-relationship between the different processes and functions of a selected organisation. Include the following for a selected business organisation: mission statement, corporate culture, aims/objectives, business functions (e.g. human resources) business processes (e.g. management, operational and supporting processes). Selected organisation: John Lewis John Lewis Mission Statement John Lewis mission statement is to for the sole purpose ‘happiness of all our members, through worthwhile, satisfying employment in a successful business’. Where success is measured on our ability to sustain and enhance our position both as an outstanding retailer and as a thriving example employee ownership. With this in mind John Lewis strategy is based on three interdependent objectives partners, customers and profit. Corporate culture John Lewis has a good corporate culture which sets a standard for other businesses who do not follow this culture. John Lewis believe that all their employees...
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...structured hierarchy with the most powerful people at the top. There is a leader such as Gordon Brown for Labour, then senior members, which in a government would be the cabinet. Then there are lower MPs and also whips to enforce party policy. 2. Explain Three ways in which ‘new’ labour differs from ‘old’ labour. 10 marks New Labour removed clause IV from its constitution. This was a reference to common ownership and so removal of old labour policy of nationalisation. Old labour’s core socialist value of common ownership meant that everyone had a share in business and so an equal share of rewards and input. New Labour, however, has adopted capitalist ideas of a free market with private businesses. There were even talks of part-privatisation of the royal mail. New labour has also abandoned its socialist core value of class. This was that they fought for the rights of the working class alone and believed that over time there should be no classes. They rejected the idea of Natural Order. New Labour has largely abandoned this ideology in pursuit of political power. To gain office New Labour needed votes from all levels of society and so introduced policies to please all different classes in Britain. New Labour has also become less dependent on Trade Unions. Old Labour was basically formed by trade unions and had the financial backing of them as well as...
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...Margaret Thatcher revolutionised the Conservative party, bringing life back into what many felt was a tired Tory party. She was dogmatic rather than pragmatic, she believed in the value of the individual and she was a strong advocate of the free market economy. She irrevocably changed the Conservative party and politics. Leaders since her may have felt they were living in her shadow – none of them would dare publically question her, and many of her ideals have stuck. Even Labour accepted some of her policies, such as anti-trade union laws and privatisation. However, she also bred bitterness, so Cameronist politics cautiously echo Thatcherism, whilst trying to appeal to a wider audience. Cameron respected Thatcher rather than worshipped her – he set about what the media called “detoxifying” the Tories, but he still shared many core values with Thatcher. Cameron faces a different backdrop to Thatcher and his challenge has been to adapt rather than revolutionise – he admired Thatcher but is pragmatic enough to change rather than blindly follow her unshaking beliefs. Cameron’s Conservatism is different to Thatcherism – and although much of it can be put down to the coalition diluting the more hard-line Tory policies, there are many decisions Thatcher would never have taken – again highlighting the difference between Thatcher’s dogmatism and Cameron’s pragmatism. Cameron had also planned to match Labour’s public spending increases from 2010-11 - whilst abandoned the idea shows he...
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...Coalition Cuts: “Tough But Fair” Immediately as I write this essay Britain’s national debt stands at around £946,319, 240,034, 83.7% debt to GDP ratio whilst the US has a national debt of over $13,492,377,103,199. ‘Thanks to Mr Osborne, Britain now has the earliest, most aggressive programme to cut government borrowing in the G7, despite widespread fears about the strength of the UK and global recovery’ (Flanders, 2010). In this essay I will focus on Britain’s budget deficit, in particular the Emergency Budget, presenting various topics for debate in relation to different aspects of the budget. I will further expand into broader topics such as the recession as a whole, the previous Labour government, other countries situations and subsequent response and the theory behind the policies undertaken, whether driven by political or economic incentives for example. Throughout the essay I will attempt to present ideas in a balanced approach, clearly showing the difference between positive and normative statements. An economies growth rate fluctuates over a period of time, known as the economic cycle. It shows the changes over time in the macro economy such as a recession where growth falls below the trend growth rate: a negative output gap. Such events are cyclical and the general period of time between one boom and another is usually five to eight years (Peter Cramp, Informe). Gordon Brown was keen to avoid successive budget deficits...
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...Monopoly is a term used by economists to refer to the situation in which there is a single seller of a product (i.e., a good or service) for which there are no close substitutes. The word is derived from the Greek words monos (meaning one) and polein (meaning to sell). Governmental policy with regard to monopolies (e.g., permitting, prohibiting or regulating them) can have major effects not only on specific businesses and industries but also on the economy and society as a whole. Two Extreme Cases It can be useful when thinking about monopoly to look at two extreme cases. One is a pure monopoly, in which one company has complete control over the supply or sales of a product for which there are no good substitutes. The other is pure competition or perfect competition, a situation in which there are many sellers of identical, or virtually identical, products. There are various degrees of monopoly, and rarely does anything approaching pure monopoly exist. Thus, the term is generally used in a relative sense rather than an absolute one. For example, a company can still be considered a monopoly even if it faces competition from (1) a few relatively small scale suppliers of the same or similar product(s) or (2) somewhat different goods or services that can to some limited extent be substituted for the product(s) supplied by the monopolist. A business that produces multiple products can be considered a monopoly even if it has a monopoly with regard to only one of the products. ...
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...of media are becoming obsolete, people are participating in more on-line discussions and organisations are much more accountable as more and more people have access to computers, phones and applications 24 hours, seven days a week. ‘In a world where e-mails are returned faster than phone calls and decisions may be made based on corporate websites, it is becoming increasingly important for businesses and business professionals to create and maintain and effective online presence.’ (Gale Cenage Learning, Madiha Bilal Kapadia, 30 November 2011) Recently Qantas was involved in a potential on-line disaster or was it a stroke of Public Relations genius that shifted the focus from the trade union discussions to a pair of first class pyjama’s? Qantas is Australia's largest airline and one of the oldest airlines in the world. Qantas was founded in Winton, on 16 November 1920 as Queensland and Northern Territory Aerial Services Limited by Paul McGuiness, Hudson Fysh, Fergus McMaster and Arthur Baird. Initially the airline operated air mail services subsidised by the Australian government, linking railheads in western Queensland. Between 1926 and 1928 Qantas built several aircraft in Longreach and made the inaugural flight of the Royal Flying Doctor Service of Australia, departing from Cloncurry. Qantas Empire Airways Limited (QEA) was formed by Qantas and Britain's Imperial Airways in 1934. They flew internationally from May 1935, when the service from Darwin...
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...This article was downloaded by: [Edith Cowan University] On: 31 March 2015, At: 12:08 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Development in Practice Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/cdip20 Globalisation Shalmali Guttal a a Focus on the Global South, CUSRI , Chulalongkorn University , Wisit Prachuabmoh Building, Bangkok, 10330, Thailand E-mail: Published online: 18 Nov 2010. To cite this article: Shalmali Guttal (2007) Globalisation, Development in Practice, 17:4-5, 523-531, DOI: 10.1080/09614520701469492 To link to this article: http://dx.doi.org/10.1080/09614520701469492 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions...
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...Charities are outmoded institutions that have no contribution to make to modern society. What is needed are social enterprises. Discuss. Introduction In this essay I will start by looking at definitions of both “Charities” and “Social Enterprises” before going on to look at a short history of the development of the voluntary sector in the UK. I will then move on to examine the arguments suggesting that charities have become outmoded and the perceived benefits of social enterprises as an alternative approach. In the final section I attempt to critically assess these arguments and to draw some conclusions. Some definitions Charities are essentially organisations established to provide some form of public good, with most of their funding being generated through donations from individuals, companies or government departments. In the UK a charity must be registered with the Charity Commission and the purposes of the charity must meet the “public benefit requirement”. Its purposes will be defined in its governing document or constitution, and ALL of its purposes must be exclusively charitable. This is the main distinction between charities and social enterprises. This latter term is used to describe a wide range of organisations which are run as businesses (and often constituted as companies rather than charities) but don’t exist purely to make money for their stakeholders. Instead they have other goals such as to benefit the community, the environment or any other social interest...
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...is paying Rs. 22 lakh each month for its upkeep , 15 of its 23 florrs are lying vacant. 10. Old gas guzzling aircrafts still running 11. Poor marketing and campaign management competitiors like spice jet and kingfisher do effective marketing. 12. Employees not paid salaries. 13. Employee strikes further taking it out of business and competitors taking advantage. 14. The airline has not posted a profit since merging with duopoly partner Indian Airlines in 2007 and relies on hand outs from new delhi to survive. Flight to survival: It needs to 1. Secure a massive debt and operational overhaul if it is to survive in a market growing at 20% a year. 2. $ 4 billion of working capital debt 3. Privatisation – free from government interference 4. To lure customers and grab market share 5. To lease some of the 14 floors lying idle in the south Mumbai to raise about $1 billion over 5 years. 6. To clear $9 billion in debt as well as outstanding dues both to airport delevopers and state oil firms. 7. To tackle a bloated cost structure , a difficult task given a work force...
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...RESEARCH REPORT 16 CORPORATE SOCIAL RESPONSIBILITY A ROLE IN GOVERNMENT POLICY AND REGULATION? Constantina Bichta The University of Bath School of Management is one of the oldest established management schools in Britain. It enjoys an international reputation for the quality of its teaching and research. Its mission is to offer a balanced portfolio of undergraduate, postgraduate and post-experience programmes, research and external activities, which provide a quality of intellectual life for those involved in keeping with the best traditions of British universities. CORPORATE SOCIAL RESPONSIBILITY A ROLE IN GOVERNMENT POLICY AND REGULATION? Constantina Bichta Desktop published by Jan Marchant © The University of Bath ISBN All rights reserved Centre for the study of Regulated Industries (CRI) The CRI is a research centre of the University of Bath School of Management. The CRI was founded in 1991 as part of the Chartered Institute of Public Finance and Accountancy (CIPFA). It transferred to the University of Bath School of Management in 1998. It is situated on the 8th floor of Wessex House (North), adjacent to West car park. The CRI is an interdisciplinary research centre investigating how regulation and competition are working in practice, both in the UK and abroad. It is independent and politically neutral. It aims to produce authoritative, practical contributions to regulatory policy and debate, which are put into the public domain. The CRI focuses...
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...1.1 The Concept of Business and Profit (slide 2) Introduction: Alberta tar sands: Oil. lack of water, lack of energy. Major companies: Suncor Energy Inc., Canadian Natural Ressources Ltd., Petro-Canada and Syncrude Canada Ltd. Producing thousands of jobs and millions of barrels. Voisey’s bay: Nickel mining project. Labrador, Newfoundland. building a new smelter, innu population asks 3% royalty. Provided job for around 1000 people, will drop to 400 after. Profit or problem? * Business: organization of people that produces or sells goods or services for profit. * Profit: what remains after a business’s expenses have been subtracted from its revenues; it rewards the owners of taking the risks involved in investing their time and money. * A loss: a negative profit. * Examples of profitable companies: 2005: RBC ($3.3 bil.), Manulife Finacial ($3.2 bil.) and Imperial Oil Ltd. ($2.6 bil.) * Non-profit organizations can be seen here too as they give something to the owner. In this case, motivation is not profit, but personal satisfaction throughout volunteerism, others through representing their constituents in public office. * Business owners essentially want to be rewarded by profit to open their business. Try to find something that people will pay them to do. * Consumer demand: what they want or need; no matter how efficient, a business will not survive if no one asks for what it can give. * Good business: will identify unmet consumer needs...
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