Dr Bharati Singh, Course Leader, Business Innovation and Entrepreneurship
The Business Innovation and Entrepreneurship course is not only about being an entrepreneur or setting up your own business but it is actually understanding how innovation and entrepreneurship should really be at the heart of any business decision. Successful businesses today are the ones who have been really innovative, they have fresh thinking with an entrepreneurial mindset. In today’s dynamic business setting, both small and large companies harness entrepreneurial streaks.
Entrepreneurship and innovation play a very important role within businesses of all shapes and sizes. Employees are expected to think outside the box which can only happen if employees can think innovatively. Today’s world is rather dynamic with the speed of innovation becoming faster, a shorter product life cycle, ever-changing consumer taste, technological advancement, competitor threat, changing government and legal landscape and other external factors not in the control of businesses.
In the face of the current pandemic, it becomes ever so important
to be aware of the surrounding economic conditions and the political climate.
To explore the ethical and unethical anomalies in the contemporary global
political and global economic systems. Such systems can provide both challenges
and opportunities.
Sustainability has become a buzz word today. It is not only about
shareholders and profitability anymore. Consumers, suppliers, governments and
many other stakeholders now question the practices of businesses. Companies are
expected to run their businesses with a social responsibility. The triple
bottom line (Elkington 2018); which translates to people, profit and planet,
need to be considered.
Creative Destruction (Schumpeter, 1942) has taken a different
meaning altogether in todays business environment. We are in the midst of the
fourth industrial revolution and ‘disruption’ is at the heart of it. Companies
go through continuous organisational change and hence, have to assess how to
leverage innovative business models to remain competitive.
Of course, to innovate or have an entrepreneurial streak and to
sustain a competitive edge, it is imperative for individuals and companies to
have a strategy. Strategy is key in business planning and entrepreneurial
success.
Thus, to gauge global challenges and opportunities, understand about the social enterprise, develop an entrepreneurial mindset, to be creative and innovative, develop sustainable business practices, leverage change management and have a strategy to maintain competitive advantage, reading for a degree in Business Innovation and Entrepreneurship will enable students to hit the ground running.
References:
Elkington,
J. (2018). 25 Years Ago I Coined the Phrase “Triple Bottom Line.” Here’s Why
It’s Time to Rethink It. Harvard Business Review, June 25, 2018
Schumpeter, J. 1942. Capitalism, Socialism, and Democracy. New York: Harper & Bros.
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.
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.
Hazel Squire, Head of Department Staffordshire Business School
Global Entrepreneurship Week is a collection of tens of thousands of activities, competitions and events aimed at making it easier for anyone, anywhere to start up and scale a company.
This November 16 – 22, as
part of GEW 2020 Staffordshire Business School together with Staffordshire
University Innovation Enterprise Zone will be hosting a range of activities
aimed at both local businesses and students.
As a nation, the impact of
COVID-19 means we are all seeking and finding new ways of doing things. In an
effort, to build resilience and come together in leveraging the power of new
ideas and innovation we will be launching our Innovation Enterprise Zonehttps://www.staffs.ac.uk/business-servicesthat
will give businesses access to:
Skills
development and support
Researchers,
student talent and experts
Grants
and business support programmes
Innovation
infrastructure and incubation facilitates
Announced last
year, Staffordshire University was one of 20 University Enterprise Zones
(UEZs), launched with a £20 million investment by Research England, part of UK
Research and Innovation.
Furthermore, be inspired offers a full year of start-up support including: information,
advice and guidance from an experienced team of business advisers, regular
meetings with industry mentors of your choice, full business processes
induction, industry-led specialist workshop sessions, networking opportunities,
access to personal growth software, access to personalised legal documentation,
a £3000 tax free grant and, as your idea grows, access to investment
opportunities. Information detailing how to access all this help will be provided
at the be inspired session on Friday 20th November.
Finally, Enterprise
Education has never been more important, as it allows us to equip future
generations with the skills and mindsets, they need to navigate a world of work
that may not even exist yet. Through entrepreneurship activities, learners can
gain key entrepreneurial skills such as critical thinking, problem-solving,
communication, risk-taking and teamwork. Entrepreneurship can offer alternative
pathways for young people, improving their skills, employability and life
chances, while supporting wider economic and social development.
Thus, Enterprise Education is
embedded in to all our courses and as part of GEW Staffordshire Business
School will be providing a week of challenging enterprise activities
working with guest speakers and the be inspired Graduate Start up Programme.
Here is a list of all our free and exciting activities – to book your place use the links provided in the table below:
*Our Innovation Enterprise Zone is one of the only 20 awards around the UK and is embedded at the heart of our campus, IEZ offers unprecedented access to specialist advanced materials, manufacturing and digital facilities, research, student talent and funding to support and accelerate innovation-led growth.
*Introduction to our new Incubator and Accelerator facility, what it is and how it supports start-ups and SME’s. Delivered by Kelly Bradley. Programme Manager
*Whether you are looking for research and development advanced manufacturing techniques or process improvement – hear how we can help you succeed! Delivered by Rachel Wood. Programme Manager
THURSDAY 19TH NOVEMBER
*An outline of the programme, benefits of knowledge exchange and how to get involved. Delivered by Marc Wootton. Programme Manager
*This webinar is an introduction into our dedicated project SCIMIA and other wide support for businesses, Delivered by: Marek Hornak – Head of Employer Partnerships and Enterprise
The MSc in Digital Marketing Management is one of our awards to meet the changing demands of industry. Marketing is going through a fundamental change with ever more marketing carried out online – a major consequence of this is the incredibly detailed data that is generated which leads to data driven policy.
The marketing industry is booming, examples from our partners include, Synectics Solutions in Newcastle under Lyme, Don’t Panic who organise many digital award nights and conferences or alumni who have set up businesses such as Jill Quick, or Louise Holland
To get our Masters students ready for the industry we have two modules:
‘The Management of a Digital Marketing Project’ – this module will prepare a tri-partite agreement between the student, the academic staff and the organisation as to the focus of the project, existing benchmark measures, what is to be achieved and how to make the project sustainable (so that it can continue after the student leaves). This is carried out between January to March/April
The Work Based Digital Marketing Project – a credit work experience (450 hours) to deliver the project with the organisation concerned. (April to August)
The project can be in any type of organisation e.g. private sector, public sector, charity or a university. It is desirable but not essential for the work project activity to take place at the premises, or it could be a mix with some days in the company and some work off site.
We have built in flexibility to the work-placement so it could be that you would like a portfolio of tasks to be completed rather than just one main project. Examples could be – creation of a digital marketing strategy, audit and re-launch of social media, budget and investment plan for marketing, devising and implementing a training plan for existing staff.
As the module is part of the course then paid remuneration is not required. However, we would expect travel expenses and any other identified costs of the project to be paid – these can be discussed and agreed before the placement starts.
Below are profiles of some of the students on the course so reach out direct to them if you are interested or if you want to discuss it with a staff memebr contact Jon Fairburn 01782 294094 jon.fairburn@staffs.ac.uk
Alex Bedford
Alex Bedford
I have
a lot of experience developing and leading teams to achieve results. This is
proven through a history of achievement working with Active Lives Education, Cheshire
Football Association, Birmingham County Football Association, Walsall Local
Authority, Sported UK, Sports Across Staffordshire, and The Football
Association.
I have a keen interest in Digital Marketing. I am pursuing a Master’s degree in Digital Marketing Management. I have experience in creating and managing marketing and communication strategies and also have experience in website management, email and text marketing, social media management, content curation, and online paid advertising.
I currently run a business called Active Lives Education however am looking for a project that helps me gain further experience in digital marketing, to develop my skills and develop a career or business in this field.
I hold a foundation degree of science in Film and Television Production and have recently graduated from my BA degree in Events Management (2 year fast track) which I gained a 2:1 in. I have a large work experience portfolio from volunteering to paid work. For 4 years I was a manager of a Children’s play centre then moving onto the cash manager of B&M. I now work as an Events Assistant at Moddershall Oaks. For my volunteer work I have experience of working for the likes of Channel 4, Woman of the Year and Stone Food and Drink Festival. I have also worked several corporate events such as the Hotel Marketing Conference and Land Rover.
I have skills within Web design, as well as using all social media
platforms for brand building. I also have quite a good understanding with
photoshop and other computer software that may be needed, I am a quick learner
and can pick up things fairly quickly.
Ideally, I would like a placement within a sector that holds
Events, but I would be open to offers.
Or if you’d like to have a look at some of my volunteer work you can find this on Instagram: @amottevents
Lewis Copeland
Lewis Copeland
I have recently graduated from my BA Events Management (2 Year Accelerated) in which I achieved a first-class honours. I have previous work experience as a bar supervisor for three years as well as voluntary work experience with Channel 4, The Stone Food and Drink Festival as well as being a student representative for my course.
I currently work for The Student Hub at Staffordshire University as a Digital Marketing Ambassador. In this role I manage multiple platforms (Facebook, Twitter and Instagram) as well as improving the overall engagement and reach of the platforms.
I am able to use social media
platforms to build and uphold brand image. I have experience in using analytics
to improve the reach of posts as well as identifying demographics which not be
being reached and making steps to target them.
Ideally I would like a placement
in tourism, events or hospitality but I am open to offers.
I have recently graduated with a First-Class BA (Hons) Degree in Events Management and have now started studying MSc Digital Marketing Management. I have a large work experience portfolio from both paid and volunteer work. I have been a chef for the past three years at The Orange Tree Bar and Grill, I also hold a range of customer service skills which I have been able to develop by working at a bar and on a hotel reception. To broaden by experience in events management I have volunteered at numerous events such as Woman of the Year 2018, Stone Food and Drink Festival and The Royal Oak Gin festival.
I have skills in web design, brand building and analytics, I
can also use all forms of social media and some computer software which may be
required. I am a reliable team player who learns quickly, I enjoy expressing my
creativity when carrying out jobs and ensuring all tasks are completed to the
best of my ability.
If possible, I would like to find a placement within the
events, tourism or hospitality sector although I am open to other
opportunities.
I
have recently graduated with a 2:1 in BA (Hons) Events Management and am now
currently studying MSc Digital Marketing Management. I have a wide work
experience portfolio varying from paid work to voluntary. Over the last three
years I have been a bar staff member for Stonegate pubs working for Walkabout
until it closed down in April this year and now Yates Newcastle-under-Lyme.
Within my role at Yates I tend to work on the bar and occasionally the kitchen,
but recently I have taken on the role to be more involved in the social media
for the business. To help to widen my knowledge of events and volunteers I
volunteered for the Stone Food and Drink Festival in 2017/18.
My
main stills revolve around social media and helping to design promotional
material. I am a reliable person with work ethic and put all my effort into
anything that I do.
My
ideal placement if possible would be within the events, tourism or hospitality
industry. However, I am willing to try anything new that may broaden my
knowledge and skills
I recently
graduated from Staffordshire University with a 2:1 BA (Hons) degree in Business
management and I’m now studying an MSc in Digital Marketing Management. I am a
team leader at the Staffordshire
University Students’ Union. This role requires excellent communication
skills, the ability to delegate tasks to the team I am managing and making sure
the venue (LRV and Verve) is running as smoothly as possible. This has taught
me a multitude of transferable skills within customer service as I have
developed my interpersonal and leadership skills. This is reflected within my
dedication to the Staffordshire
Stallions American Football as a team player and a defensive captain.
I’m currently
looking for a digital marketing placement for my work based digital marketing
project. This will give me a chance to utilise the skills and knowledge that I
have learnt within my masters and apply it to a professional environment. Any
opportunity to be able to get this experience would enable me to further my
employability.
My degree has
given me an insight into a variety of different aspects within Business
Management. This has given me fundamental knowledge on topics that also relate
to the MSc in Digital Marketing Management. I have extended my academic skills
and abilities by studying into a specialised area of Business. An MSc has enabled me to have a greater
understanding of analytics, search engine optimisation and the ability to
design a global digital marketing strategy.
I have graduated with a BA (Hons) Journalism and I am now studying my MSc in Digital Marketing Management. Throughout university, I worked as a venue member for Staffordshire University’s Student’s Union in front and back of house customer service roles and as a Student Ambassador. These roles have instilled me with strong interpersonal skills and self-organisation through working in these multifaceted positions.
I have experience working as a Trainee Journalist at The Sentinel newspaper and Staffs Live, where I was responsible for researching and writing feature and news content for print and online publication. I utilised my qualifications in Reporting and Shorthand at 100WPM from the National Council of Training for Journalists, ensuring accuracy and time management.
I am an experienced CRM Marketing Assistant, where I was responsible for curating content for email marketing campaigns and market research. Studying Digital Marketing has developed my knowledge within integral marketing theories, brand development and content curation/SEO. I am now implementing this in the creation of my own lifestyle blog, The Wordsmith.
I
am interested in opportunities in the content marketing sector, and I am open
to writing diverse content in an array of industries.
If
you are a business owner and you are looking for a driven, creative and
hardworking individual that has a keen interest in digital marketing, SEO and
business development…then look no further!
I
am currently looking for a placement within an organisation that will help me
gain further knowledge and experience in the digital marketing field.
I
have recently graduated from Staffordshire University with a 2:1 in Tourism
Management. My main interests lie in SEO, content curation, analytics and brand
building through social media.
I
have consolidated experience working in fast-paced environments, working in a
team, customer engagement and I have the desire to learn and help businesses
grow!
So,
what are you waiting for? Get in touch via LinkedIn or email!
Prof. Vish maheshwari, Associate dean and professor of marketing
It is that
time of the year again when festivities are in full swing for the imminent
arrival of Christmas. There is a special feeling around mostly ‘merry’ but with
a touch of somewhat uncertainty about few other developments that I would like
to avoid discussing on this occasion!!
However, concentrating on the interesting #racetowin approach from most retailers to acquire as much customer interest, awareness and conviction (in the form of business), it is fascinating to see and experience how power of branding and varied marketing communication strategy is put in action.
From emotion
to cognition, symbolic to functional and logical, social to societal aspects,
but all with a touch of empathy, being crafted by retailers to connect with
their customers at the time of this wonderful festive season. Below are some of
the examples to understand application and delivery of brand essence through
impactful storytelling:
McDonalds’ Christmas
advert portrays close bond between Archie the imaginative reindeer and a young
girl called Ellie, displaying the love and togetherness for families.
(Image: McDonald’s)
As usual much
awaited each year, John Lewis (and Waitrose) advert this time aims at combining
the sense of joy, love, compassion, excitement and friendship between a little
girl Ava and a young dragon called Edgar.
(Image: John Lewis & Partners/PA)
Whereas, Boots
have focused its advert around practicalities and struggle to find the right
gift for your loved ones and is part of its wider festive campaign ‘Gift Like
You Get Them’. This is alongside the launch of its new and creative approach
through developing various personas to find perfect gifts using curated edits
online called Boots ‘Boutique’ covering both offline and online platforms.
On the other
hand, the online retailer Very.co.uk has focused its Christmas campaign around
important aspect of community spirit promoting a powerful message of social
responsibility and sharing the joyfulness of festivities by ‘act of giving’ and
collectiveness.
Finally, it’s the return of Amazon’s singing boxes again for third year in a row but with a better emotional touch where the delivery of Christmas gifts through these boxes claim to play an important part in bringing smiles for your loved ones and create wonderful festive memories.
The examples above demonstrates that the concept of delivering brand essence and identity through meaningful interactions. Using relevant messages helps in connecting with customers through different attributes across all channels of integrated marketing communication. It also develops a recognisable brand image for recollection and reconnection with a positive impact and assured conviction during ‘selection/choice making’ stage as part of buying behaviour process. It reinforces the power of brand and branding that goes beyond mere physical and experiential attributes of a product or service.
To end – it is important to assert what philosopher Stephen King once stated that ‘products can be quickly outdated but a successful brand is timeless’
From the 18-24November, Global Entrepreneurship Week inspires people everywhere through local, national and global activities designed to help them explore their potential as self-starters and innovators. These activities, from large-scale competitions and events to intimate networking gatherings, connect participants to potential collaborators, mentors and even investors—introducing them to new possibilities and exciting opportunities…Continue reading
Written by Angela Lawrence, Associate Dean at Staffordshire business school
There’s an Autumn nip in the air, the Great British Bake Off has begun and the annual McMillan World’s Biggest Coffee Morning is just around the corner. Kenwood mixers are whirling into action in kitchens across the UK.
Meanwhile, bags are being packed, goodbyes said, and freshers are itching to begin their university life. Around the World lecturers are preparing to welcome their new students and planning for the academic year to come.
It strikes me that these two situations have something in common. I wouldn’t go as far as to say that all lecturers are good bakers (far from it!), but there is something vaguely familiar about the nurturing, caring principles of baking and lecturing; the desire for a good outcome and the commitment to working hard to achieve this.
Quality Ingredients
Ever tried baking a cake with less than quality ingredients – with a dodgy cooker and scales that don’t quite weigh correctly? The chances are your cakes won’t turn out to be as good as you would like them to be. Quality, fit-for-purpose equipment and excellent ingredients are needed to guarantee the bake that you are looking for.
When choosing a university to spend three or more years of their life at, prospective students similarly seek quality – high rankings in the league tables and TEF, good NSS scores, high levels of student satisfaction and committed, highly qualified academics. A quality university is needed to turn out a top-notch, highly qualified and work-ready graduate.
The Recipe Even quality ingredients can’t ensure a perfect bake if the recipe is wrong. One too many eggs or not enough baking powder and the cake’s a flop.
The same balance needs to be considered within the course that a student selects. The onus is on academics to create a balanced mix of exciting learning content, activities, guest lecturers, trips and course materials to ensure that students learn exactly what they need to know. Miss out a vital ingredient and students will struggle to achieve success in their assessments.
The Temperature
Too hot an oven and your cake will burn. Too cool an oven and your cake won’t rise. Getting the temperature right is as important as having the correct recipe.
Lifelong friendships are made at university, so a good balance between studying and fun is needed. The correct work-play balance creates an environment in which students flourish – without the fun some students struggle with the pressure of study and can be tempted to drop out. Too much fun and grades may suffer. A good university seeks to provide exactly the right balance between social and study. Student Unions, personal tutors, pastoral care and student guidance teams are all there to support students in getting it right.
Decorations
Jam and cream fillings, a sprinkle of icing sugar here, a coating of chocolate there and your cake is more than a cake, it’s a thing of beauty. It’s those finishing touches that make your cake the one that everyone wants to take a bite out of.
Similarly, a degree is not enough. Employers are inundated with graduate applications for advertised vacancies, and applications that stand out are those where the candidate has more than just a degree. Work experience, success in student competitions, self-awareness, confidence, professional presentation, global awareness…these are many of the added extras that lead an employer to choose YOU over other applicants.
Staffordshire University has a recipe for success. A university that has risen to within the top 50 universities in the league tables, been awarded a gold in the TEF, achieved one of the highest graduate employability rates in the UK and provided a supportive and fun environment in which students flourish.
Would you like a taste of our recipe? Come and visit us at one of our Open Days to find out for yourself – we can promise you a delicious time.
Productivity differences between different producers exist and persist, even among those operating within the same industries (Syverson, 2011; Van Reenen, 2011). Achieving higher productivity is of an utmost importance for firms as it leads to better firm performance and leads to increased profits. These increased profits can be used for future investment and wage rises. The panacea for low productivity is often sought, however, the factors determining productivity are numerous, differing in their scope, level of influence and complexity.
One of the factors determining productivity is innovation. While some studies establish that innovation in general is positively linked with productivity (Movahedi et al., 2017), some limit this link to product innovation (Cassiman and Golovko, 2011). Porter (1990) argues that firms often have no choice but to innovate, as they face competitive pressures coming from their buyers or competitors.
The productivity of a firm may be determined by talents and practices of its managers. Bloom and Van Reenen (2010) have shown that firms that employ better management have higher labour productivity. Management practices differ widely both among different firms and different countries. They are influenced by numerous factors, some of them being: product market competition, labour market regulations, relationship between ownership and management of a firm, education of managers and workers, etc. (Bloom and Van Reenen, 2010).
Quality of inputs is another factor that determines productivity. Rather than clinging on basic resources (or lack of those), it can be argued that productivity is mainly determined by superiority of labour and capital inputs (Porter, 1990; Syverson, 2011). Education, training and experience can all affect quality of labour inputs. Quality differences of capital inputs can influence productivity (Syverson, 2011). The lack of basic resources can push firms to innovate and improve (Porter, 1990). It has been shown that differences in intangible capital and IT can also affect productivity (Syverson, 2011).
Another significant factor that can influence productivity are different decisions regarding the organisation and structure of a firm. Different process improvements through learning-by-doing can also influence productivity (Syverson, 2011).
Productivity spillovers and competition are important external determinants of productivity of a firm. Productivity spillovers occur mainly within the same or similar industries. Competition can hugely affect productivity and firms can face competitive pressures from both other domestic and foreign firms (Syverson, 2011).
The theoretically established ‘learning-by-exporting’ hypothesis states that exporting can improve productivity of a firm. On the one hand, a firm participating in an export market is exposed to a larger competition. On the other hand, by participating in an export market, a firm can gain new knowledge from its buyers and competitors (Wagner, 2007). Some empirical research has confirmed this hypothesis (Damijan et al., 2010).
As discussed above, productivity of a firm is influenced by a numerous factors. Some of the above-mentioned factors can be influenced to a greater extent than the others and some of those factors require shorter periods to be adjusted than the others. However, given that there is variety of factors, their complexity and the level of their potential interactions, the question still remains: is there really a panacea for low productivity?
References:
Bloom, N. and Van Reenen, J. (2010) ‘Why do management practices differ across firms and countries’, The Journal of Economic Perspectives, 24(1), pp. 203-224. Available at: https://www-jstor-org.ezproxy.staffs.ac.uk/stable/25703489 (Accessed: 24th June 2018)
Cassiman, B. and Golovko, E. (2011) ‘Innovation and internationalization through exports’, Journal of International Business Studies, 42(1), pp. 56-75. Available at: http://www.jstor.org.ezproxy.staffs.ac.uk/stable/25790105 (Accessed: 28th March 2018)
Damijan, J.P., Kostevc, C., & Polanec, S. (2010) ‘From innovation to exporting or vice versa?’, The World Economy, 33(3), pp. 374-398. Available at: http://onlinelibrary.wiley.com.ezproxy.staffs.ac.uk/journal/10.1111/%28ISSN%291467-9701/issues (Accessed: 24th March 2018)
Movahedi, M., Shahbazi, K., & Gaussens, O. (2017) ‘Innovation and willingness to export: Is there an effect of conscious self-selection?’, Economics: The Open-Access, Open-Assessment E-Journal, 11(25), pp. 1-22. Available at: http://www.economics-ejournal.org/economics/journalarticles/2017-25 (Accessed: 1st May 2018)
Porter, M. (1990) ‘The competitive advantage of nations’, Harvard Business Review. Available at: https://hbr.org/1990/03/the-competitive-advantage-of-nations (Accessed: 4th June 2018)
Syverson, C. (2011) ‘What determines productivity?’, Journal of Economic Literature, 49(2), pp. 326-365. Available at: http://www.jstor.org.ezproxy.staffs.ac.uk/stable/23071619 (Accessed: 30th April 2018)
Van Reenen, J. (2011) ‘Does competition raise productivity through improving management quality’, International Journal of Industrial Organisation, 29(3), pp. 306-316. Available at: https://ac-els-cdn-com.ezproxy.staffs.ac.uk/S0167718711000208/1-s2.0-S0167718711000208-main.pdf?_tid=48b828f4-40fc-4fad-a130-5cec9cbc83ab&acdnat=1530139607_684e48c04c59ac476baa4ece54f7c606 (Accessed: 22nd June 2018)
Wagner, J. (2007) ‘Exports and productivity: A survey of the evidence from firm-level data’, The World Economy, 30(1), pp. 60-82. Available at: http://onlinelibrary.wiley.com.ezproxy.staffs.ac.uk/journal/10.1111/%28ISSN%291467-9701/issues (Accessed: 16th April 2018)
It is often claimed that the United Kingdom has benefited from joining European Union in terms of its economic performance. On the other hand, some authors argue that the rate of economic growth in the United Kingdom did not rise as a result of its accession to the European Union in 1973[1] (Coutts et al., 2018).
However, different estimates show that the United Kingdom will experience negative consequences of its exit from European Union, but the magnitudes of those estimates vary. The impacts on productivity are argued and there is no general consensus of the scale that Brexit will affect overall productivity in the United Kingdom.
Coutts et al. (2018, p. 20) state that “no aggregate link exists between trade and productivity for advanced open economies, unlike emerging economies where a relaxation of constraints on trade allow multi-national companies to enter, and to raise both exports and productivity”. At the same time, Dhingra et al. (2017) recognise that losses in terms of productivity are possible and list several factors that may contribute to productivity and welfare losses such as: “reductions in the variety of goods and services, weaker competition, the erosion of vertical production chains, falls in foreign direct investment (FDI), slower technology diffusion, less learning from exports or lower Research and Development” (p. 3).
Productivity, exporting and innovation of a firm are three seemingly distinct concepts. More in depth analysis shows that these concepts are indeed related and that it is almost impossible to examine either one of them without examining the other two. Characteristics of exporters and innovators depict well the extent of the link between the three concepts:
Exporters tend to be more productive than non-exporters (Wagner, 2007; Damijan et al., 2010; Caldera, 2010; Movahedi et al., 2017) and often have higher productivity growth (Wagner, 2007).
Furthermore, exporters are more likely to innovate (Damijan et al., 2010; Caldera, 2010), spend more on innovation (Caldera, 2010; Monreal-Perez et al., 2012) and have more (major) innovations (Bleaney and Wakelin, 2002; Monreal-Perez et al., 2012) than non-exporters.
Innovators tend to be more productive (Bleaney and Wakelin, 2002; Damijan et al., 2010; Caldera, 2010; Cassiman et al., 2010; Movahedi et al., 2017) and are more likely to export (Bleaney and Wakelin, 2002; Damijan et al., 2010; Cassiman et al., 2010) than non-innovators.
Exporters and innovators also share the set of common characteristics: they pay higher wages (Bleaney and Wakelin, 2002; Caldera, 2010) and are present in the sectors characterised with higher R&D intensity and greater amount of intra-industry trade (Bleaney and Wakelin, 2002).
A recent report published by Centre for Cities (2018) shows that in Britain, exporters constitute more productive firms. Figure 1 shows that British economy is characterised by large number of firms with low levels of productivity, but also that local service firms are predominantly less productive firms. Exporting firms account 13.2% of all the firms examined. The share of exporting firms among the top ten per cent of the most productive firms in 2015 was 31.2%, while the share of exporting firms among bottom 33 per cent was 5.6% in the same year. (Centre for Cities, 2018).
Figure 1: Productivity of all firms, UK (2015)
Figure 2 Productivity of exporting firms compared to local service firms in the UK (2015)
*The report indicates that productivity was calculated as “gross value added per worker at a branch level” (Centre for Cities, 2018).
** Original data source is limited to non-financial business economy
***Only private sector productivity was examined
**** Article in Financial Times (Strauss, 2018) on the report indicates that, in this case, all firms engaged in markets beyond their local one are considered to be exporters. However, it can be assumed that certain portion of these firms export abroad as well.
The link between exporting and productivity is also theoretically grounded. It is commonly hypothesised that exporting and productivity are linked in the following manners:
(1) self-selection hypothesis, suggesting that more productive firms self-select into export markets, and
(2) learning-by-exporting hypothesis, suggesting that firms increase their productivity by participating in export markets (Wagner, 2007). Empirical findings prove the existence of both the link leading from productivity to exporting (Caldera, 2010; Cassiman and Golovko, 2011; Movahedi et al., 2017), as well as the link leading from exporting to productivity (Damijan et al., 2010).
Furthermore, previous research shows that exporting is linked to innovation (Damijan et al., 2010) and, at the same time, that product, process and organisational innovation have an influence on exporting (Basile, 2001; Bleaney and Wakelin, 2002; Caldera, 2010; Cassiman et al., 2010; Cassiman and Golovko, 2011; Monreal-Perez et al., 2012; Fryges et al., 2015; Azar and Ciabuschi, 2017).
Some authors suggest that there exists complementarity between exporting and investment in productivity, in the sense that one raises the profitability of the other (Lileeva and Trefler, 2010). Firm’s productivity can be tackled through factors internal to a firm (i.e. managerial practice and talent, quality of labour and capital inputs, decisions about firm’s structure, etc.) and influenced by the factors that are external to a firm (i.e. productivity spillovers, intramarket competition, regulations, etc.) (Syverson, 2011).
Empirical research has shown that innovation positively influences productivity (Cassiman and Golovko, 2011; Movahedi, Shahbazi and Gaussens, 2017).
Four types of innovation can be distinguished:
(1) product innovation, “the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses” (OECD/Eurostat, 2005, p. 48),
(2) process innovation, “the implementation of a new or significantly improved production or delivery method” (OECD/Eurostat, 2005, p. 49),
(3) marketing innovation, “the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing” (OECD/Eurostat, 2005, p. 49), and
(4) organisational innovation, “the implementation of a new organisational method in the firm’s business practices, workplace organisation or external relations” (OECD/Eurostat, 2005, p. 51). Schmookler (1954) suggests that size of the market is one of the determinants of the level of inventive activities.
Brexit will almost certainly result in larger trade costs for the firms involved. Van Reenen (2016) indicates that there are three distinct categories of trade costs that will increase following Brexit:
“(i) higher tariffs on imports;
(ii) higher nontariff barriers to trade, arising from different regulations, border controls, and the like; and
(iii) the lower likelihood of the United Kingdom participating in future EU integration efforts, such as the continued reduction of nontariff barriers”.
Following the lines of the discussion above, trade costs are likely to have a greater impact on the more productive firms in the British economy. Also, due to the existence and the complexity of the links between exporting, productivity and innovation, adverse effects can be expected to go beyond influences on productivity.
We have a free event on 5th July at Staffordshire University as part of the Silver Workers project to support over 50s looking to get back into work or start their own enterprise. There is still time to join the project.
Debbie Assinder – West Midlands Enterprise Champion
Debbie is a SFEDI/ILM Gold Accredited Business Adviser. She has delivered business startup advice for 20 years +across the region becoming the Enterprise Champion for the West Midlands in 2015.
Debbie Assinder
Highlights in her career include working on Birmingham City Council’s £4.2 million Enterprise Catalyst Programme, delivering on the PRIME (Prince’s Initiative for Mature Enterprise) startup support programme for the 50+, working as an Associate for Birmingham Chamber of Commerce on their national Start and Grow programme and delivering on behalf of Barclay’s Bank their “Get Ready for Business” and “Let’s Start a Business”.
Currently contracted by Innovation Birmingham on their Serendip Digital Incubation programme. Also working with Enterprise Nation, extending early-stage support to the growing number of new owner/operated businesses across the UK. Delivering workshops and events as well as providing a much-needed campaigning voice for the startup business community.
Austin Knott – Walk the Moorlands
Austin Knott; after 32 years in local government and building on his experience as a local walk leader and hillwalking representative for the British Mountaineering Council, Austin has set up ‘Walk the Moorlands’ to share his love of the hills and moors in the south west Peak District and Staffordshire Moorlands.
Participant in the Silver Worker project and who is starting his own business Walk the Moorlands.
Lesley Foulkes
Lesley Foulkes studied at Staffordshire University as a mature student. Following successfully completing her post graduate diploma in Psychotherapeutic Counselling she worked as a Specialist Mentor at the university until December 2017 and is an accredited member of the British Association for Counsellors and Psychotherapists.
Lesley Foulkes is a participant in the Silver Workers project and is in the process of setting up her own business Counselling without Walls
Rebecca Loo and Fiona Uschmann – Catch the Dream
Rebecca Loo works as an NHS Occupational Therapist with children with disabilities in North Staffs. She is also a health activist, running local and national Orthotics Campaigns (www.orthoticscampaign.org.uk) which press for improvements in the provision of braces and specialist footwear for people with disabilities.
Rebecca Loo of Catch the Dream
The daughter of a local business man and having seen the effects of the 1980’s and 1990’s recessions, she vowed never to enter business herself. That was until she heard of how Ebola had shattered the lives of villagers in Lungi Village in West Africa. In May 2017 she and Fiona Uschmann incorporated “Catch the Dream Community Interest Company” (www.catch-the-dream.co.uk). They have been on a steep learning curve ever since as they work with the villagers to help them regain their livelihoods and dignity.
Fiona Uschmann is a PA and HR Manager at a local secondary school in Stoke on Trent. She has been involved in the yearly immersion programmes to Sierra Leone over the past 11 years with groups of sixth formers.
Fiona Uschmann of Catch the Dream
When immersion was unable to take place because of the catastrophic effects of Ebola in West Africa, she decided that she wanted to do more. In May 2017, Fiona and Rebecca Loo started a Community Interest Company called Catch the Dream. Catch the Dream CIC has been working in partnership with a rural community in Bo, Sierra Leone to help them recover from the loss of their agricultural livelihood by kickstarting their farms again after they were devastated from the Ebola outbreak.
Sandra Butterworth – Business Innovation Centre
Sandra Butterworth is Director of Innovation at the Business Innovation Centre in Staffordshire which was set up in 1995 to encourage and promote Innovation in the region.
Sandra Butterworth will be taking about support and funding for start up businesses
During her 20 years at the BIC, she has been the Champion for Innovation encouraging everyone connected with the BIC to embrace Innovation which she believes is the way forward for local businesses as statistics show that Innovative businesses outperform their competitors.
Sandra is a SFEDI qualified Business Advisor, Member of the Institute of Business Counselling and Institute of Leadership & Management and helps companies to identify, research, develop and market their innovations. Sandra organises and delivers the BICs Self Development workshops and events on Innovation.
Tony Bickley – Staffordshire University
Tony Is a Chartered Accountant who has been a Senior Lecturer at Staffordshire University since 2016. He has an MBA and is a Senior Fellow of the Higher Education Academy.
Tony Bickley
Prior to working at the University he previously held several managerial roles in the Financial Services industry following his early career in the Accounting profession.
His areas of teaching speciality are Financial Accounting, Taxation and Financial Services.He is a Silver worked himself – has a wife, four children, 3 grandchildren and 3 dogs!
Patricia Roberts
Patricia has been working for North Staffordshire based Aspire Housing since 2016. She has played a prevalent role in the development of a new Community Living Service and challenging the way people think, act and talk about Dementia. Patricia’s career spans some fifteen years in both the private and third sector which makes her well placed to meet challenges presented by current welfare reforms and an ageing population.
Patricia Roberts – Older Persons Strategy lead for Aspire Housing
Caring by nature she is passionate about collaborating with partner organisations to ensure vulnerable customers are acknowledged and listened to. Volunteering for the Alzheimers Society as a Dementia Champion, she has helped over 500 people become dementia friends and is currently developing a network of champions within we are aspire.
Born and bred in Cambridge Patricia has a keen interest in local faith groups and encouraging people to fulfil their full potential. Patricia lives with her husband in Hill Ridware, and takes great delight in exploring the great outdoors especially if it raises money for the Alzheimer Society.
Hazel Squire
Hazel Squire is a senior lecturer at Staffordshire Business School. She is the award leader for undergraduate business courses and delivers on the `Silver worker` business start up training.
Hazel Squire
Having worked in the retail sector Hazel set up and ran her own business before returning to university as a mature student. She is currently undertaking a PHD looking to identify the barriers faced by older people thinking of setting up their own business.
Jon Fairburn is Professor of Sustainable Development at Staffordshire University. He teaches on the MSc Digital Marketing Management award and established the Business School twitter account @BusinessStaffs which has twice won best Business School account from Edurank.
Prof Jon Fairburn
He has previously worked on the SEE GREEN project (with senior citizens) as well as delivering on the Silver Workers project.
On Friday, 2 March 2018, at the Mansion House in London, Theresa May delivered her most comprehensive Brexit speech to date. It was a speech designed to bridge the divide between Remain and Leave voters as she tried to explain Britain’s future relationship with the EU.
To international business economists like myself, this was a welcome speech, with very insightful details into how Britain was looking to trade with the EU and other countries after D-day a.k.a. “Transition Period“. The Prime Minister spoke about approaching a crucial moment in the negotiations and specified that existing models like the Norway modelwould not work because that would mean having to implement new EU legislation automatically and, in its entirety and would also mean continued free movement.
A Canada model would also not be suitable on World Trade Organisation terms because that would mean customs and regulatory checks at the border and damage the integrated supply chains of both EU and British firms – inconsistent with the commitments that both Britain and the EU have made in respect of Northern Ireland.
The most positive thing about the speech however was its tone. It was in many ways a call to partnership and not protectionist mantra. Mrs May is right in many aspects but in one key detail in particular.
When other countries seek to become part of the EU, they have to make their laws, regulations and standards align with those of the EU. In this case however, Britain is already aligned with the EU. What Britain wants is some leeway to be different in certain respects. When Britain leaves the EU, the Withdrawal Bill will bring EU law into UK law.
In the future, Parliament might choose to pass an identical law to EU law in some cases – when businesses who export to the EU indicate that it is in their interest to have a single set of regulatory standards that mean they can sell into the UK and EU markets. If Parliament on the other hand decides not to achieve the same outcomes as EU law, it would be in the knowledge that there may be consequences for British market access.
TRUMP’S PROTECTIONIST TARIFFS
A few days after the British Prime Minister’s speech, the US President, Mr Trump signed an order for a 25% tariff on imports of steel and a 10% tariff on aluminium into the US, saying some exceptions will be made for Canada and Mexico, prompting fears of trade war. While the US steel industry is obviously happy about the plans, it seems everyone elseis upset.
Recall that Mr Trump campaigned on saving US steel and aluminium jobs, which have been lost to cheap foreign imports. But these tariffs threaten to undermine decades of agreement in international trade and have split the Republican party. There was no congressional member of his own party present for the White House announcement.
The US President is planning tariffs on $60bn worth of Chinese goods, in part because of alleged Chinese theft of intellectual property – which means design and product ideas. The White House said it has a list of more than 1,000 products that could be targeted by the tariffs of 25%. Companies will get a chance to comment before they are put into effect. Mr Trump wants to cut the trade deficit with China – a country he has accused of unfair trade practices since before he become president.
Officials from China and Europe have threatened retaliation. Richard Warren, head of policy at UK Steel, said the US was a significant export market for British producers, accounting for around 15% of UK steel exports. “This really does throw a spanner in the works” he said. The European Union has indicated it could retaliate, potentially starting a trade war with the US.
European Commission President Jean-Claude Juncker said: “We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk.” “I had the occasion to say that the EU would react adequately and that’s what we will do.” “The EU will react firmly and commensurately to defend our interests. The Commission will bring forward in the next few days a proposal for WTO-compatible counter-measures against the US to re-balance the situation.”
It’s not just Europe and the UK that have voiced concern, Australia’s trade minister said it will distort global trade and cost jobs. He also highlighted the risk of retaliatory measures as Asian exporters sought more detail on the plans.
AN OVERVIEW
A trade war is when countries try to attack each other’s trade with taxes and quotas. One country will raise tariffs, a type of tax, causing the other to respond, in a tit-for-tat escalation. This can hurt other nations’ economies and lead to rising political tensions between them. This is a form of protectionism. Protectionism is trying to use tariffs to boost your country’s industry and shield it from foreign competition.
A trade war will be bad in this scenario, but Mr Donald Trump does have a point. China has been flouting international property rules and will have more to lose in a trade war. This flouting of international property rules has also resulted in a huge US trade deficit with China.
No party wants a trade war. Britain’s tone on Brexit is much softer and open to compromise. The US tone on trade seems to indicate a much tougher stance. Analysts might argue that this is because one side has more to lose than the other. Maybe what all sides need however is a more reconciliatory tone. Partnership will be better than conflict.
On Monday, 2nd of April 2018, China imposed tariffs of up to 25% on 128 US imports, including pork and wine, affecting some $3bn (£2.1bn) of imports. Beijing said the move was to safeguard China’s interests and balance losses caused by new US tariffs. The markets fell as a result, International Business Economists continue to monitor the situation.
There’s an Autumn nip in the air, the Great British Bake Off has begun and the annual McMillan World’s Biggest Coffee Morning is just around the corner. Kenwood mixers are whirling into action in kitchens across the UK.
something in common. I wouldn’t go as far as to say that all lecturers are good bakers (far from it!), but there is something vaguely familiar about the nurturing, caring principles of baking and lecturing; the desire for a good outcome and the commitment to working hard to achieve this.
The same balance needs to be considered within the course that a student selects. The onus is on academics to create a balanced mix of exciting learning content, activities, guest lecturers, trips and course materials to ensure that students learn exactly what they need to know. Miss out a vital ingredient and students will struggle to achieve success in their assessments.
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