Which to use: Quick Ratio or Current Ratio for Liquidity Measurement in business

Status

Mayowa AKINBOTE

Just as businesses are adapting to the shock of Brexit, the global pandemic presents another disruption to businesses. These two events have created huge uncertainty for most small businesses while some have benefited . The striving small businesses are revaluating their strengths with financial metrics to enhance their sustainability as the new markets are emerging. Financial metrics present small businesses with the opportunities to increase efficiency in their operations, liquidity, profitability and stability during uncertainty period. Some commentators argue that inadequate liquidity is the major reason small businesses collapse during the uncertainty period.

The quick ratio helps the business managers to evaluate their businesses financial liquidity. This informs the business managers of how current assets excluding inventories can be quickly converted to cash to meet their current liabilities. This ignores inventory because it is not easily converted to cash. Unlike the current ratio which considers inventory value, the quick ratio is generally viewed as the conservative evaluation of business liquidity as it’s based on the business most liquid assets. For instance, a business has current assets worth £40,000 of which inventory is £10,000, and £15,000 worth of current liabilities thus the business has a 2:1 quick ratio. This indicates that the business can afford to meet the short-term liabilities twice with the short-term assets.

Money

Businesses with a 1:1 or lower quick ratio could be at risk of becoming a going concern. Thus, small businesses with limited access to funds might fire sale their non-current assets to meet the current liabilities.

Many businesses have already closed due to Brexit and the global pandemic and it has been estimated that a further approximately, 98,000 small businesses might not survive the current pandemic. Thus, small business managers that are currently struggling to survive should pay attention to their financial metrics especially the quick ratio.

Unlike the quick ratio, many commentators argue that the current ratio cannot accurately evaluate some businesses short-term liquidity power. For instance, a retail business that targets seasonal customers will stock up inventory for the season. Thus, toward this period the current ratio rises and fall after the seasonal sales. Hence, the quick ratio would be best to evaluation the liquidity ability of such businesses as it ignores the inventory value.

However, other commentators argue that excluding the inventory value from the current assets could be an inefficient way of evaluating liquidity ability for some businesses. For instance, small business such as corner shops that a large percentage of their current assets are fast-moving inventory. Thus, excluding the inventory from the current asset would relatively inflate the current liability. Hence, the quick ratio will present an inaccurate picture of the business to cover their current liability with their most liquid assets.

In conclusion, business managers need to consider both the quick ratio and current ratio, especially during the uncertainty period. This would provide a more accurate measurement of their business ability to pay their short-term liabilities without being forced to fire sale their non-current asset.

Business managers need to ensure that the quick ratio and current ratio is not too excessive compared to other competitors in their sector as this could indicate poor control of working capital. This might suggest that the business is not turning over its inventory quickly enough or is carrying slow-moving or obsolete inventory and has poor credit control practices resulting in their customers delaying payments beyond the agreed terms.

STOP PRESS: We are now recruiting for cohort 5 of the Small Business Leadership Programme (free starts 30th March).

Mayowa Akinbote FCCA
Lecturer in Accounting and Finance
Staffordshire Business School
Staff Page: https://www.staffs.ac.uk/people/mayowa-akinbote
LinkedIn: http://linkedin.com/in/mayowa-akinbote-33448895

Innovation to survive and thrive Part 2

By Tanya Hemphill

Part 1 of Tanya’s article can be found here

STAGE TWO

Once you have used these initial basic filters to find the strongest ideas, the next stage is to use a more in-depth filter to make decisions on the remaining ideas. Day (2007) recommends using a risk matrix. The R-W-W matrix is based to three key questions:

  • Is it Real?
  • Can we Win?
  • Is it Worth doing?

This is expanded into the following set of questions:


Is it
real?

Is the market real?
Is there a need or desire
for the product?
Can the customer buy it?
Is the size of the
potential market
adequate?
Will the customer buy the
product?

Is the product real?
Is there a clear concept?
Can the product be made?
Will the final product satisfy
the market?

Can we
win?

Can the product be
competitive?

Does it have a competitive
advantage?
Can the advantage be
sustainable?
How will competitors
respond?

Can our company be
competitive?

Do we have superior
resources?
Do we have appropriate
management?
Can we understand and
respond to the market?

Is it worth doing?

Will the product be
profitable at an
acceptable risk?

Are forecasted returns
greater than costs?
Are the risks acceptable?

Does launching the product
make strategic sense?

Does the product fit our
overall growth strategy?
Will top management
support it?

STAGE THREE

Once a few viable marketing innovation ideas remain, the next stage is to consider the risks even further. This is where conducting a pre-mortem is a useful tool. This helps organisations identify the possible failures of a project before they happen and mitigate risk by pre-planning so that those failures don’t occur.

The following pre-mortem exercise has been adapted from Gray et al. (2010).

Activity
Step 1Imagine we are two years in the future.
Things have gone completely wrong.
What could have caused this? Generate a list of all the reassons failure occurred.

Step 2List all concerns and rank them to
deterimine priority
Step 3Address the 2 or 3 items of greatest
concern and list what actions you would
need to take to stop the issues
happening.

The list of risks and actions that need to be taken to mitigate the risk can be used as Critical Success Factors (CSFs) for an innovation or project launch.

Hopefully, this article has helped you think about the different types of innovation you can potentially pursue and how to evaluate the best route forward, using a systematic filtering process.

STOP PRESS -We are now recruting for cohort 5 of the Small Business Leadership Programme (free starts 30th March)

References

Day, G. (2007) Is it real? Can we win? Is it worth doing? Managing Risk and Reward in an Innovation Portfolio. [Online] Harvard Business Review. Available at: https://hbr.org/2007/12/is-it-real-can-we-win-is-it-worth-doing-managing-risk-and-reward-in-an-innovation-portfolio (Accessed 11 February 2021).

Fisk, P. (2017). Gamechangers: Are you ready to change the World? Creating Innovative Strategies for Business and Brands. West Sussex: John Wiley and Sons Ltd.

Gower, L. (2015) The Innovation Workout. Harlow: Pearson Education Limited.

Gray, D., Brown, S. & Macanufo, J. (2010) Game Storming: A Playbook for Inovators, Rulebreakers, an Changemakers. Sebastopol: O’Reilly Media, Inc.

Keeley, L., Pikkel, R., Quinn, B. and Walters, H. (2013). Ten Types of Innovation: The Discipline of Building Breakthroughs. New Jersey: John Wiley & Sons, Inc.

Osterwalder, A. and Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers and Challengers. New Jersey: John Wiley & Sons, Inc.

Free Small Business Leadership Programme – starts end of March

Supporting SME leaders to create resilience and manage uncertainty in 2021 and beyond

Access free ideas, guidance, peer & 121 support to help your business to manage the uncertainty of steering through the pandemic and impacts of Brexit for up to TWO leaders in your business.

Staffordshire Business School is supporting regional business by delivering free training in leadership and management to provide exactly what business needs most to build a resilient future.

This is cohort 5 of the SBLP and the positive impacts of previous cohorts are being felt across the region. Here is what Rhys from XP VR thought of the course

Why choose to be part of the Small Business Leadership Programme?
▪ Make your business more resilient
▪ Boost business performance and growth
▪ Create an innovative and agile organisation
▪ Recover from the impact of COVID-19
▪ Find solutions to the impact of Brexit
▪ Build leadership skills, confidence and effectiveness
▪ Plan for a solid future for your business
▪ Build lasting relationships with small business leaders
▪ Improve risk management and efficiency

When does the course start?
Tuesday the 30th March 2021 (1st webinar at 3pm)

If you would like to have a chat about the course then please email one of our experienced Entrepreneurs in Residence with your phone number and they will call you back,

Jane Pallister – Jane.Pallister@staffs.ac.uk
Emily Whitehead – emily@staffs.ac.uk
Jonathan Westlake – j.c.westlake@staffs.ac.uk

Here’s what another business thought of the course: Geoff Barton, General Manager of Canalside Farm in Great Haywood near Stafford said: “It’s allowed me to connect with other businesses, and I’ve learned much and managed to strengthen a few knowledge gaps and boost my handling of the business during these unique times.”

What’s involved?
Eligibility requirements
▪ Your business must be a Small or Medium-sized Enterprise (SME) based in England.
▪ Your business needs to employ between 5 and 249 people and have been operational for at least one year
▪ The participant should be a decision maker or member of the senior management team within the business with at least one person reporting directly to them.
▪ The participant must be able to commit to attending the full programme


Time commitment
The programme is designed to be manageable alongside full-time work and furloughed staff can join the programme.

Participants will attend 8×90- minute webinars across ten weeks, and complete up to 2 hours of independent development and peer-supported engagement per week.

Places are fully funded by the Government to support the resilience,
recovery and growth of SMEs during and after COVID-19. The programme
is completely free to attend but places are strictly limited.

Register Now
There are two ways to register.

  1. Email one of the Entrepreneurs in Residence as listed above and they
    will talk you through the process.
  2. Follow the simple instructions below (this takes 3 minutes) and we will
    be in touch:
    • Go to https://smallbusinesscharter.org/sblp-registration/
    • Choose ‘West Midlands’ from the pink vertical menu on the left
    • Scroll through the list of centres until you find Staffordshire University
    (start date 30th march) & click register

PLEASE NOTE: Your business can send up to two eligible delegates to this programme and delegates can be furloughed. Please do one registration for each person.

How COVID-19 Exposed The Ethnic Poverty and Enterprise Rift (Participate in Our Research)

Dr Tolu Olarewaju, Lecturer, Staffordshire business School


The British Academy (the United Kingdom’s national academy for the humanities and the social sciences) has tasked us with investigating the specific challenges that UK business owners faced during the COVID-19 pandemic and lockdown, the strategies that they used to keep their businesses afloat, and how they engaged with financial and regional support.

We are also interested in how best to support members of the Black Asian and Minority Ethnic (BAME) business community.

To participate in our study, kindly fill the survey below and/or please share the URL with your networks if you know any other business owners:

URL: http://staffordshire.qualtrics.com/jfe/form/SV_50kNUNYOKJFFQNM

Photograph: benjamin lehman | URL: https://unsplash.com/photos/gkZ-k3xf25w | Unsplash

Ethnic minorities were particularly affected by the COVID-19 pandemic in the UK and US, as in some other countries. In particular, the risk of death for some ethnic minority individuals who contracted COVID-19 in these countries was two to three times more compared to white individuals.

This disparity was a result of the underlying social and economic risk factors that ethnic minorities face, such as living in overcrowded and urban accommodation, being employed in riskier lower-skilled jobs, reduced access to healthcare, and structural racism. In other words, ethnic poverty in developed countries is driving higher infection and consequently death rates for ethnic minorities.

Drivers of Ethnic Poverty

Underlying the drivers of poverty for ethnic minorities in many developed countries are several socio-economic factors which include historical factors, discrimination, educational and entrepreneurial variations, and employment and pay disparities between ethnic groups.

Despite facsimile policies that emphasize equal access to education and employment in many developed countries, discrimination remains a critical barrier to equal employment. Several studies have found that both ethnic minorities are called back for interviews 50% less frequently than comparable whites, hired less often for high-skill jobs, and once hired are paid less. Thus, despite the increasing educational gains made by ethnic minority individuals, many are overqualified for the jobs that they do. Ethnic minority workers also often report not being given pay rises and being passed over for promotion.

Another very important driver for the disproportionately high poverty rates among ethnic minority groups is the concentration of such workers in low-paid work. Ethnic minority workers are more likely to work in low-paid sectors with limited progression opportunities and lower wages. Lack of movement out of low-paid work increases the risk of poverty among ethnic groups. In addition, there is generally a lower percentage of ethnic minority workers who are managers, directors, and senior officials.

Photograph: Maria Oswalt URL: https://unsplash.com/photos/qFkVFe9_d38 | Unsplash

Business Ownership Disparities

Before the pandemic, BAME business owners were less likely than non-BAME business owners to obtain mainstream business support and in the early days of coronavirus, nearly two-thirds of BAME business owners felt unable to access state-backed loans and grants, leaving many on the brink of financial ruin.

BAME-owned businesses are traditionally concentrated in the sectors worst hit by lockdown such as retail, health and social care, education, restaurants and accommodation.

The economic crisis facing these businesses is aggravated by the fact that they are more likely to hire a considerable number of BAME employees and attract more BAME customers. The significantly higher risk among such groups from COVID-19 implies that these businesses would have had to incur considerable costs to protect their staff and customers.

Solutions

Ethnic minorities consistently report reduced access to education, lack of social and financial capital, unemployment, low-pay, and poor progression from low-paid sector work. This suggests similar solutions for all groups, which would lead to better-quality jobs and higher pay. However, given that some of the drivers of poverty, such as higher unemployment and inactivity rates disproportionately affect ethnic groups, specific forms of outreach activity and drawing on local knowledge may be needed in these contexts.

Similarly, government solutions to reduce ethnic poverty in developed country contexts include interventions that ensure that education, training and apprenticeships are provided for ethnic minorities as well as schemes that help tackle low pay among ethnic minority workers. There is a need for policies that focus the on education, skills and training for ethnic groups particularly digital, literacy, and numeracy skills. Moreover, policies should also be encouraged that monitor the workforce in relation to ethnicity, which should include the recruitment, retention and progression phases of jobs.

Authorities need to work with employers to provide better-paid jobs and they should do more to listen to and encourage employers to hire a diverse range of skills and experiences. It is advisable to consider putting targets for ethnic minority representation on boards, something that has proven successful in the case of gender. It is also important to recognise the benefits of positive discrimination in the labour market, rather than view legislation to combat ethnic inequality as red tape or political correctness. Mortgage market discrimination needs to be eliminated as this would allow ethnic minorities to take advantage of the benefits that come with owning a home.

State-backed grants and loans should be made more accessible as an incentive to business owners who have incurred additional costs to protect customers and staff. Crucially, the process to obtain them should not be too onerous and the criteria should be fair. Regional governments should also take care to plug BAME businesses into the supply chains of local projects in response to the pandemic.

Source: Author

All these should reduce ethnic poverty and the economic and health inequalities that the COVID-19 pandemic has highlighted.

Don’t forget to participate in our research if you a business owner: http://staffordshire.qualtrics.com/jfe/form/SV_50kNUNYOKJFFQNM

Notes: Excerpts for this essay was taking from my book chapter: “Ethnic Poverty: Causes, Implications, and Solutions” available at: https://www.researchgate.net/publication/344725834_Ethnic_Poverty_Causes_Implications_and_Solutions

Innovation to Survive & Thrive: Part 1

By Tanya Hemphill, Senior Lecturer

Over the last few months we have been running a module on ‘Innovation, Value and Markets’ to over 70 Staffordshire business people, as part of our Small Business Leadership Programme.

During the workshops it was very clear that most small businesses have had to rethink their business model to adapt to massive shifts in consumer behaviour (and supply chains) because of Covid. The UK Government defines innovation as: The successful exploitation of new ideas. Innovation may involve an organisation’s:

  • Products and services
  • Processes (e.g. exploiting new technologies)
  • Business model (e.g. new income sources/ improved supply chain)

 Business Model Innovation

According to Fisk (2021) although there are an infinite number of potential business models some of the most common formats (applicable to nearly every type of business) are:

  • Advertising-based models. Services are free to users, whilst advertisers pay to engage with the audience attracted, e.g. Google, Facebook.
  • Razor-and-blades models. The facilitating item, like a razor, is sold cheaply, then accessories, like blades, at a premium, e.g. HP, Nespresso.
  • Added-value models. The facilitating item, like an iPad, is sold at a premium, then accessories, like apps, sold cheaply, e.g. Apple.
  • One-of-one models. The company donates a product to a charity, or person in need, for every product sold, e.g. Toms, Warby Parker.
  • Cashflow models. High volumes are generated at low margins, payments received quickly from customers, paid slowly to suppliers, e.g. Amazon, Dell.
  • Platform-based models. These bring buyers and suppliers together, typically charging both of them to connect and transact, e.g. Airbnb, Uber.
  • Subscription-based models. These charge a regular, e.g. monthly, fee for unlimited use of a product or service, e.g. Netflix, Zipcar.
  • Freemium models. These encourage trial or a basic level of usage for free, but charge for additional or premium options, e.g. Spotify, Fornite.
  • Direct to consumer models. Products which in the past would have been sold through intermediaries are sold direct, e.g. Allbirds, Casper.

 

10 Types of Innovation

If we want to expand the UK Government’s three categories of innovation, recent research has identified ten main types of innovation (Keeley et al., 2013):

  1. Profit Model: The way you make money (e.g. Netflix changed the video rental industry by implementing a subscription model)
  2. Network: Connections with others to create value (e.g. Target works with renowned designers to differentiate itself)
  3. Structure: Alignment of your talent assets (e.g. Whole Foods has built a robust feedback system for internal teams)
  4. Process: Signature of superior methods for doing your work (e.g. Zara’s ‘fast fashion’ strategy moves its clothing from sketch to shelf in record time)
  5. Product Performance: Distinguishing features and functionality (e.g. OXO Good Grips costs a premium but its ‘universal design’ has a loyal following)
  6. Product System: Complementary products and services (e.g. Nike+ partnered shoes, sensors, apps and devices into a sport lifestyle suite)
  7. Service: Support and enhancements that surround your offerings (e.g. Zappos “deliver WOW through service” is their #1 internal core value)
  8. Channel: How your offerings are delivered to customers and users (e.g. Nespresso locks in customers with its useful members only club)
  9. Brand: Representation of your offerings and business (e.g. Virgin extends its brand into sectors ranging from soft drinks to space travel)
  10. Customer Engagement: Distinctive interactions you foster (e.g. Wii’s experience draws more from the interactions in the room than from on-screen)

This framework is expanded further by list of possible tactics, which can be found here: https://doblin.com/dist/images/uploads/TenTypesInnovation.pdf

The ‘Business Model Canvas’ is one of the most used templates in business to map a business model (Osterwalder and Pigneur, 2010). This is a useful tool for rethinking the whole business, seeing connections and then innovating the business.

You can download a copy of the Business Model Canvas and view an overview video of the tool at https://www.strategyzer.com/canvas/business-model-canvas

Sign up to the next cohort of the Small Business Leadership Programme here – starts 30th March

References

Fisk, P. (2017). Gamechangers: Are you ready to change the World? Creating Innovative Strategies for Business and Brands. West Sussex: John Wiley and Sons Ltd.

Keeley, L., Pikkel, R., Quinn, B. and Walters, H. (2013). Ten Types of Innovation: The Discipline of Building Breakthroughs. New Jersey: John Wiley & Sons, Inc.

Osterwalder, A. and Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers and Challengers. New Jersey: John Wiley & Sons, Inc.

Author

Tanya Hemphill can be found on twitter @DigitalTanya she has recently joined Staffordshire Business School. She teaches on the MSc in Digital Marketing Management which includes a credited workplacement.

Tanya Hemphill
Tanya Hemphill

Part 2 of this article will shortly be available

Fail to plan, plan to fail

Angela Lawrence, Associate Dean, Staffordshire Business School


This morning I was labelled a geek. I don’t mind being called a geek (I probably am a bit of a geek) but what is interesting is that this label was awarded as a result of me sharing a plan on twitter. The plan for my allotment in 2021.

Now I don’t feel that planning makes me geeky – I’m a big believer in planning and the saying “fail to plan, plan to fail” is one that I use often. I plan a work “To Do” list at the end of each working day, a shopping list before walking down to the shops, I plan holidays months if not years in advance and yes, I plan which vegetables I am going to grow at my allotment and which beds they will go into. That way I can be sure that the soil will be right for them, the light conditions will suit them and that everything grows together in harmony to produce bountiful harvests.

This Photo by Unknown Author is licensed under CC BY-SA

Planning is a big part of business success – we create business plans, marketing plans and project plans in all aspects of our working life. Without things like business continuity planning, risk management, financial planning, many businesses fail to survive in today’s fast-moving work environment. Students are taught planning not only as part of their studies, but also as part of their own lifestyle management as a student – our students even brought together some tips to share with others in this YouTube video.

Some would say planning has been difficult during 2020 and it’s hard to plan when we don’t know what we will be able to do. I think this is actually all the more reason to plan – if plans didn’t materialise, as so many failed to during 2020, then we suck it up and plan all over again, whether it be a holiday, a birthday, a wedding or a study plan for the year. What has been bumped from the top of the list now goes back into the list again for re-scheduling.

Plans give us hope and they psychologically prepare us, they build anticipation, and they demonstrate commitment. When we plan, we mentally get organised and prepare ourselves and this is a good thing – it saves us from stressing about the unknown, relieves some uncertainty and helps us to cope better

Plans don’t have to be big, they don’t have to be impressive, they don’t have to be written down (although I do get great satisfaction from planning on paper) and they don’t have to be shared. They may not mean a thing to anybody but you, and that’s just fine. I can guarantee that you will enjoy your planned activities far more for having planned them and that you will stress less and cope better with things that challenge you.

Happy planning – you have a whole year ahead of you, LET’S GO!


Staffordshire Business School is a premier centre for business education with decades of experience in providing business courses at the forefront of industry and technological developments. Business planning is integrated into all of our new business courses – click here to find out more.

Tax Avoidance and Competitive Advantage

Mayowa Akinbote, Lecturer, Staffordshire Business School


Apple Inc. (Apple) is a well-known technology company for designing, manufacturing and selling smartphones, tablets, computers and other digitals accessories. Apple has been the world most valuable brand in 2020 with revenue of $267.7 billion (£203.3 billion) and profit of $57.2 billion (£43.4 billion) and the largest public organisation in the United State of America (US) in 2018.

Image Source: Apple Facebook Profile


In 2016, the European Commission found Apple guilty of paying the below 1% effective tax rate to the Irish government in 2003 and that Apple was given preferential tax treatment. This tax advantage was declared illegal and the commission rule that of £12.7 billion in taxes and interest should be paid to Irish government coffers. This amount is equivalent to the Irish National Health budget.
Recently, Apple becomes the most valued traded corporation in the world, valued at £1.7 trillion bigger than £1.5 trillion value of all the FTSE 100 the UK top companies. While Amazon and Google followed Apple as the most valued traded corporations in the US. Some commentators suggest that such sudden growth in value could be aided by tax avoidance deals thus such could create competitive advantages over their competitors.

Tax Avoidance

Tax avoidance is legally bending of the tax rules to gain an undue tax advantage that the rules never intended and creating tax loopholes. Transfer pricing is the biggest enabler of tax avoidance. Big companies like Apple design, manufacture, test, hold patent rights and marketing rights of their products in different countries. This gives opportunities to allocate high costs discretionarily to the country that offers low tax advantage like Ireland thus, profit is channel across borders. The annual global tax avoidance is equivalent to the entire Belgium Gross Domestic Product (GDP) with British overseas territories such as British Virgin Island, Bermuda, Cayman Island followed by Netherland, Switzerland, Luxembourg and Ireland in Europe topping the list of tax avoidance enablers.

Similar to the other multinational companies such as Starbucks, Google, Amazon and Facebook, Apple legally channels 90% all its global profits to through Luxembourg and Ireland before profits were channelled to non-Irish residence subsidiaries to avoid paying taxes. This is not unknown, but the Irish government accept the deal in return for the inward investments and jobs creation. Besides Ireland pride herself as one of the countries with the lowest corporation tax rates in Europe at 12.5%.

In the UK airline companies like tax exile, Virgin Atlantic and EasyJet benefited from tax avoidance for decades. Avoiding paying taxes into the countries where they generate profits hence, reducing the funds available for the development of the key facilities that could save host community’s livelihood especially during this period of uncertainty such as coronavirus pandemic. Regrettably, these companies are also ripping where they did not sow. For instance, the air industry seeking £7.5 billion in bailout due to coronavirus lockdown. They also took the advantage of the government taxpayer-backed general support during the uncertainty period.

Competitive Advantage

Michael Porter explains four generic strategies which companies could adopt to gain high profits over their competitors such as cost leadership, cost focus, differentiation leadership and differentiation focus.

The first two strategies focused on cost leadership strategies are price-based competition in a targeted market. Companies such as EasyJet and Amazon adopt cost focus and cost leadership using both economies of scale and scope to achieve the lowest cost of production to their advantage thus generating high profits with their strategy. These companies rather paid shareholder(s) than to invest in their workforce or pay taxes to the host countries. For instance, at the start of the pandemic, EasyJet paid £60 million of dividend to Monaco tax resident founder Stelios Haji-Ioannou.

The other two strategies focused on differentiation strategies which require significant investment in marketing and consistent promotion. Companies such as Virgin Atlantic and Apple adopts differentiation leadership by targeting larger markets and positioning their products quality superiority, global brand loyalty uniqueness to the market. Despite, cost reduction through economies of scale, Virgin Atlantic and Apple continue to charge premium prices on its products and services.

Although, none of the Porters’ generic strategies includes the possibilities of tax avoidance creating competitive advantages. However, some commentators believe that tax avoidance increases the shareholders’ wealth and the companies’ value thus, encouraging investors to increase investments with the hope of increasing their wealth. Furthermore, some observers consider that these extra investments enable such companies to oblige their host countries into offering tax avoidance deals in return for inward investments and jobs creation in their countries.

Mayowa Akinbote FCCA
Lecturer in Accounting and Finance
Staffordshire Business School
Staff Page: https://www.staffs.ac.uk/people/mayowa-akinbote
LinkedIn: http://linkedin.com/in/mayowa-akinbote-33448895

Discover how accounting and finance underpins modern enterprise in our BA (Hons) Finance and Business Enterprise.

Staffordshire Business School – Research update

Staffordshire Business School aspires to be a leader in making a real impact on business and society through research and innovation. Our team have successfully delivered many industry/business and government funded research projects and have extensive experience of leading large team projects including local, UK, EU and internationally funded projects. Many of our team members combine rich industry and practitioner experience with academic rigour in conducting world-leading research in the areas of entrepreneurship and innovation, digital transformation, environmental health etc. Here are some of the exciting research projects that researchers at Business School have been doing:


Austerity, Welfare and Work: Exploring Politics, Geographies and Inequalities

In his new book, Prof David Etherington provides bold and fresh perspectives on the link between welfare policy and employment relations as he assesses their fundamental impact on social inequalities. Drawing on international and national case studies, the book reviews developments, including rising job insecurity, low pay and geographical inequalities.

Environmental health inequalities resource package

Prof Jon Fairburn is the lead author of a recent World Health Organization publication. The publication is aimed at local, regional and national policy makers hoping to improve environmental health especially for deprived and other groups. Jon has been collaborating with WHO for over 10 years on this subject.

Covid-19 and Smart Cities – What’s Changed? Getting ahead of the Game

Prof Fang Zhao and her team have been conducting research and analysis of a range of changing scenarios of smart cities in post-Covid-19 and pinpoint the opportunities and challenges for businesses, city councils and universities. Their research focuses on strategies, tactics and digital transformation.

The Impact of COVID-19 on BAME Owned Businesses in the UK

The project led by Dr Tolulope Olarewaju is investigating the specific challenges that BAME business owners faced during the COVID-19 pandemic and lockdown, the strategies that they used to keep their businesses afloat, and how they engaged with financial and regional support. The project is funded by the British Academy.

People, Place and Global Order: Foundations of a Networked Political Economy

This book co-authored by Dr Andrew Taylor explores how the convergence of technology and globalisation is shifting value creation out of products and processes and into digital networks and, in the process, leaving many people behind. He is looking into examples and models of how people and place may flourish within global networks. 

Leadership typology reveals how smart city leaders prefer to tackle inequality

The research of Associate Professor Alyson Nicholds sheds light on how leaders, operating in different organisations, roles and sectors prefer to tackle inequality differently. Her latest writing draws on organisational concepts of leadership and philosophy to show the benefits this type of understanding can reap for society.

Entrepreneurs in Residence

Business School has recently appointed Entrepreneurs in Residence providing students and staff with hands-on experience in conducting research to spot business opportunities, conduct market analysis and better understand consumer behaviour, leading to business venture creation.

For more information and collaboration and partnership, please contact Prof Fang Zhao – Associate Dean Research and Enterprise at fang.zhao@staffs.ac.uk.

Digital marketing students deliver for business

The MSc in Digital Marketing Management was developed to deliver the technical, strategic and organisation skills for this industry. As such the course includes a substantial project with an external client and this work is credited as part of the award. Carrying out a project at the height of the pandemic was even more challenging than usual with everything needing to be done remotely and ongoing changes to adapt to the new situation – so Congratulations to the students below for these excellent projects.

If you are interested in enrolling for this September we are putting on virtual course information events – 3.00-4.00pm 1st September register here or
3.00 – 4.00pm 10th September register here

Eerik Beeton carried out a project for The Waterfront Gallery, in Milford Haven, West Wales. This has involved developing the ecommerce offer on the website, creating social media channels Facebook, Instagram and helping to recruit volunteers for the gallery.

Eerik Beeton who carried out a project at the Waterfront Gallery in  Milford haven, Pembrokeshire
Eerik Beeton who carried out a project at the Waterfront Gallery in Milford Haven, Pembrokeshire

Charlotte Cunningham created a completely new website for Simply Hygiene which is already on the first page of google search due to excellent SEO optimisation. She has also started her own digital marketing company, Sharkey’s Digital Marketing and has also accepted a position as the Marketing Manager for The Aston Care Home group and The Learning College in Stone.

Charlotte has a new marketing job with the Aston Care group in Stone
Charlotte has a new marketing job with the Aston Care group in Stone

Craig Holdcroft carried out a project for the Donna Louise Trust developing the website and social media. He has also started his own marketing business, Holdcroft Digital Marketing while at Staffordshire University, completing projects for a number of Micro and SME’s.

Craig Holdcroft
Craig Holdcroft is running his own agency and part-time lecturing for business and marketing.

Grace Thomson started a student peer blog for the Staffordshire University Careers Studio and this has now been incorporated into the main careers website for the University. The project included providing guidance and training for students across the different faculties in blog writing and social media. The blog has already achieved 23,000 reads in the short time it has been up.

Grace Thomson
Grace Thomson

Amber Mottershead carried out her project for Stone Cricket Club providing a new website and turbo charging the social media channels on twitter, instagram and facebook. She now has a new job as marketing and events executive at The Retrofit Academy

Amber is now the marketing and events executive for the Retrofit group
Amber is now the marketing and events executive for the Retrofit group

Here’s a short film

If you want to find out more about the course please contact

Paul Dobson (Course leader) or Kat Mitchell or Jon Fairburn

Sign up to our virtual course information event here – 3.00-4.00pm 1st September register here or 3.00 – 4.00pm 10th September register here

Support for micro & SME’s businesses: Survive and Thrive

Project leads: e:Prof Jon Fairburn @ProfjonFairburn and e:Kat Taylor @KatTayloruk

There are two parts to the Survive and Thrive project – a series of webinars and 1 to 1 business support. This project aims to support businesses in Staffordshire and the surrounding regions.

The webinars are designed to be interactive and resources to download during the webinars will be made available, as well as examples and the opportunity for chat and questions. If you are unable to attend the webinar then you can watch a recording.

Several of the webinars link to each other and we would encourage you to sign up for all of the webinars.

Practical Hints and Tips for Small and Micro-businesses occurred on Staffordshire Day (May 1st)Recording here

How to critically assess your business operation and ask really good questions in light of Covid 19 – 2pm May 21st Recording here

How to Create Clear Messaging & Develop Customer Relationships Online – 2pm May 28th Recording here

Strengthening your business and its future prospects: adapting your operations and supply chain management 2pm June 4th Recording here

Are you in the right place? How to connect to the right audience & analyse your performance 2pm June 11th Recording here

E-commerce 1: A fun, no techno-babble guide to having a go with electronic commerce! 2pm 18th June Awaiting editing

E-commerce 2:  A detailed navigation of the e-commerce strategy template introduced in the E-Commerce 1 webinar 2pm June 25th Recording here

How to manage your staff and their wellbeing out of the lockdown and beyond 2pm July 2nd Recording here

Introduction to advanced operations for key social media platforms 2pm July 7th Recording here

How to develop & integrate email marketing into your business 2pm July 9th Recording here

Managing change, risk and longevity – what does the future hold? 2pm July 16th

Register here

Applications for FREE 1 to 1 business support are NOW CLOSED (All businesses that are due to receive help have been contacted).

CONTACT INFO Prof Jon Fairburn or Kat Taylor

#SurviveandThrive #Staffordshire #Staffsbiz #Businesstips