Author: banfieldconsulting

The Importance of Ethical Business Practices: News of the World

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Watching the proceedings of Rupert Murdoch’s appearance before British MPs this morning, it became clear that a post about the media mogul and News of the World would be imminent.  It was surreal to see the proceedings with the tycoon in general, and then a man attacked the 80-year-old Mr. Murdoch with a pie.  This incident very clearly demonstrates that when business ethics are involved, emotions can run very high on all sides.

Where does accountability begin and end when it comes to business ethics?  During the hearing, Mr. Murdoch stated that he did not accept responsibility for the wrongdoings that took place at the British tabloid.  Instead, he placed the responsibility on those running the newspaper (although he did use the word ‘laxity’ when describing himself).  James Murdoch, Mr. Murdoch’s son and deputy COO of News Corporation, insisted that he wanted to ‘put things right’ when it came to dealing with the scandal and its victims.  Simultaneously, both Murdochs insisted that they had no knowledge of the unethical practices going on at News of the World.

When it comes to business ethics, what does this perspective say about Rupert and James Murdoch and their responsibilities to stakeholders as Chairman and CEO and deputy COO, respectively?  Do they not have a fiduciary role to stakeholders when it comes to the responsible operation of News Corporation and its subsidiaries?  How seriously will NewsCorp tackle business ethics and corporate social responsibility enterprise-wide?  Similarly, with the likes of British PM David Cameron, among other public figures, and the entire FOX Broadcasting Company tied into the NewsCorp web, how seriously will NewsCorp be tackled by the public arena?

A clear lesson for any company, large or small, multinational or local – do not let ethics fall by the wayside when operating a business.  It should permeate operations, not be shunned as a lofty aspiration.

Regional Focus: England and Consumer Spending

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Consumer spending and confidence has taken a hit in England and it seems as though this trend will not be fading in the near future.  It has also been noted that consumers in England are shifting their purchasing habits towards lower-costing and lower quality goods.  In a predictable fashion, consumers are also moving away from non-essential purchases and spending.  A textbook example of this switch can be seen in the shift from dining out at restaurants to increasing consumption of fast food.  Interestingly, English consumers have also cut back on use of private cars, opting for utilizing the many public transportation networks and systems across the country. It would be wise to do a thorough assessment of key target markets in England before entertaining the idea of a new venture there in order to ensure that a demand present.

Regional Focus: India and Corruption

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The 2011 BRICS Summit took place in Sanya, China on April 14th with the focus of talks on economics, international law and the ongoing confilict in Libya.  This will be the first post in a series on the five countries.

India

One of the integral cogs in the BRICS countries is India.  This post will focus on roadblocks that India is facing as a growing economy, as opposed to a general overview of the country.

One of the most serious problems in India, along with many other nations across the globe, is that of corruption.  Transparency International currently puts India as its 87th least corrupt country, with a score of 3.3/10, on a list numbering to 178.  This is about halfway through the list and is not something to be proud of as a country that is supposed to be one of the leaders of tomorrow.

From the recent telecom scandal, that has seen some of the most prominent businessmen in India come under fire, to the disastrous Commonwealth Games in Delhi, India must reign itself in and implement measures to get corruption out of its system, not further integrate it.  This is a necessary and critical step in order to promote continued and sustainable economic growth.

Successful Strategies: Don’t Overlook the Small Player

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History has taught us that the little guy has consistently proven himself as a force to be reckoned with.  This precedent does not fail to carry over into the world of business.  Often times, it is the little guy, the upstart, or a previously overlooked small competitor that provides large, established companies with the hardest of attacks.

Time and time again, this small competitor is barely addressed in strategic meetings or even pushed aside altogether.  Simply because established companies have weathered attacks in the past and persevered does not mean that this approach will work forever.

When these attacks comes, they should be considered carefully.  What basis are they competing with us on?  Are they actually offering something better than us?  Are our offerings sub-par?  Can we improve upon them and increase our own competitiveness?  Should we avoid a price war?  Should we open a new front?  How do we avoid cannibalization with our counter-attacks?

Each situation will vary.  In some situations action is warranted and in others, it is not.  The important thing is to simply not ignore attacks.  Each should be analyzed for effectiveness, potential impacts and severity and a plan should then be established for addressing it.

Successful Strategies: Don’t Overlook Trends

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Every savvy entrepreneur knows the value of pertinent trends when strategizing, especially for start-up businesses.  Although trends play such an important role in strategizing, they are often not used to their full potential.  Many times, the surface of the trend is solely examined, while its deeper meaning is ignored.

For example, one of the most prominent trends today is that of the growing number of green consumers.  Over the past several decades, but especially in the new millennium, companies have been going green; changing core mandates to include factors such as carbon footprints and overall impacts on the environment.

However, adjusting mandates and mentalities is simply step one of the process of successfully incorporating trends into a strategy.  Companies must be able to truly understand the meaning of the trend.  Going back to the example of green consumers, companies must be able to see that many of the same consumers are also wary of companies trying to adapt to sustainable and environmentally-friendly initiatives.  Therefore, the strategy must not only take into consideration the green consumer, but also to the skeptical consumer.

Overall, it is important not to just look at a trend superficially and address it as such; a company must delve deeper to meaningfully and successfully incorporate a trend into its strategy.

If you would like to read further on the topics of trends or green consumers, feel free to contact us and we will provide a list of interesting and relevant articles.

Banfield Consulting’s Official Site Launch

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Welcome!  This new website has been in the works for many months.  In addition to our services, we intend to put some valuable information out there for a variety of users:  the avid reader, the new entrepreneur, the researcher, and everyone in between.

One of the prime initiatives at Banfield Consulting is to provide insight and analysis on many topics and issues.  From current events to regional profiles, we intend to provide information that is pertinent to our users.  To illustrate this, Banfield will be initiating a Regional Focus series of posts that will help users, such as new entrepreneurs, who intend to do business in different parts of Canada and around the world.  Stay tuned!