July 30th, 2010
A global survey shows social networking has become a mainstream marketing business tool in the B2B world with fully 40% of businesses having successfully used social networks to win new business. The survey by workspace solutions provider Regus, reveals well over a quarter of businesses world-wide (27%) have set aside a proportion of marketing budget [...]
July 30th, 2010
Much has been made recently of Australia’s superior economic performance and ways NZ can catch up. Grant Amos, a Registered Psychologist at Selector Ltd, has 10 tips for improving your organisation’s productivity - and helping your country.
1. Focus on investment, not cost. Many Kiwi managers focus on what salary job candidates want, rather [...]
July 28th, 2010
Resources Minister Gerry Brownlee first floated exploiting the nation’s most protected conservation lands - those covered by Schedule 4 of the Crown Minerals Act - last September. He busily talked up the benefits of the “fast growth” pursuit of extractive industries - oil and gas as well as other minerals - could produce.
It gave [...]
July 23rd, 2010
Another step in the integration of the trans Tasman economic and regulatory _systems. Aust and NZ are now one step closer to having a common set of financial reporting standards, as a result of the release of exposure drafts amending financial reporting standards. In August 2009, both Govts signed a Joint Statement of Intent which [...]
July 23rd, 2010
A new BNZ survey has identified a plunge in business confidence, which the bank says is a result of the economic recovery failing to live up to expectations. Confidence has fallen for a third month in a row.
Only a net 2% of 542 respondents expect the economy to improve during the coming year, down from [...]
July 21st, 2010
In what could be a huge boost for NZ Inc, local offshore ironsands explorer Trans Tasman Resources (TTRL) believes a 10m tonne a year steel mill using local ironsands as feedstock could be established as the world’s largest and most competitive plant of its type, either in Asia or NZ. TTRL keeps a low profile [...]
July 16th, 2010
A survey released by the UN Global Compact and Accenture says 93% of CEOs believe sustainability will be critical to success. 766 CEOs were questioned worldwide, with 80% indicating the credit crisis has elevated the importance of sustainability as a source of cost efficiency and revenue growth. It revealed this year, 81% of CEOs believ [...]
July 16th, 2010
Customer loyalty can be a huge boon to your business. But building strong customer loyalty takes time and consistent effort on your part. Committing to a strong customer loyalty marketing effort requires three critical things:
• Make it mutually beneficial. You create loyalty through give-and take relationships. If you want repeat customers, give them something you [...]
July 14th, 2010
A new prosperous middle class is rapidly emerging in countries such as China, Russia, Brazil, India, Turkey and Indonesia. In 2009, 70m new middle class* people made an appearance on the world stage. Goldman Sachs estimates they will be joined by roughly 2bn others by the year 2050. These people buy things. The Chinese purchased [...]
July 7th, 2010
NZ businesses should take note of a new study which shows NZ consumers are fighting back against poor customer experiences by removing their business from companies whose service doesn’t meet their expectations. The study, by RightNow, found 61% of NZers have taken this course of action.
Consumers were asked about their customer experiences with seven [...]
July 2nd, 2010
The NZ Institute is about to release a discussion paper on NZ’s economic strategy. The findings include:
• NZ has many opportunities to improve labour productivity, the main determinant of prosperity. Choosing policies which differ from those followed by more successful countries has contributed to economic underperformance. Other OECD countries have become wealthy by expanding exports [...]
July 2nd, 2010
Immigration is a leading driver of economic growth, and latest figures show it is on the wane. Official seasonally adjusted figures show the number of long-term arrivals exceeded the number of long-term departures by just 200 in May, the lowest monthly increase since late 2008. It continues a worrying downward trend of recent months. The [...]
June 30th, 2010
1. Take your time. You can’t proofread a document at the same speed you read a novel - slow down and concentrate.
2. Increase the text size. Catch more errors by printing out the document and reading it through a magnifying ruler one line at a time. If you’re proofing on the screen, enlarge the document, [...]
June 25th, 2010
Consumer law, some of it more than 80 years old, is in for a shakeup. Consumer Affairs Minister Heather Roy has launched a discussion document which has taken a year to prepare. She wants to develop “strong and relevant” legislation which promotes competition, consumer confidence and a simple “one door” policy for advice and help [...]
June 23rd, 2010
Reserve Bank Governor Alan Bollard says more household belt-tightening and a stronger switch by banks away from unproductive personal credit growth are necessary if NZ’s ongoing risk of economic shocks caused by the country’s high foreign indebtedness is to improve. He says the Govt’s books are in good order, but when only the external accounts [...]
June 18th, 2010
With sovereign debt fears stalking global markets, news NZ’s debt position is not improving will be of concern. Latest figures show the Government’s cash flow and financial statements have remained similar to forecasts, and though the tax take is in line with projections, the country’s net debt position has climbed 0.3% to $27.8bn, or 15% [...]
June 18th, 2010
The latest Manpower Employment Outlook Survey Employer has found hiring activity in NZ is expected to continue its uphill climb back to a pre-recession pace in the third quarter. Job seekers should find the most opportunities in the Manufacturing and Services industry sectors in the quarter ahead.
The seasonally adjusted Net Employment Outlook is at +18%, [...]
June 16th, 2010
Hospitality Association CEO Bruce Robertson has questioned the strength of the economic recovery, saying trading conditions for its more than 2500 members were still getting worse, with winter expected to claim more victims.
He says the Hospitality Association’s members, mainly bars and restaurants, “have not seen any significant improvement” and are expecting a tough winter, with [...]
June 11th, 2010
Treasury Secretary John Whitehead says the Government could be receptive to lowering investment screening thresholds for foreigners looking to buy assets in NZ. The Treasury’s top man has been talking about policies which might benefit the economy. On TV One’s Q&A programme he said there’s plenty to be gained from “open flows of people, open [...]
June 11th, 2010
The IMF says NZ is likely to grow faster than most of the developed world in the medium term. It points to rising commodity prices and a growing share of exports going to Asia as positive for the NZ economy, but warns external debt levels are still too high, and if interest rates rise it [...]
June 9th, 2010
Although the Russians may have the cynical motive of getting WTO recognition as a result, NZ has nevertheless scored a big coup in becoming the first country to start negotiating a free trade deal with Russia. NZ currently exports $200m of goods to Russia a year, but the Russians are desperate for food. As always [...]
June 4th, 2010
The verdict on this year’s budget from business leaders is the Govt must do more to keep NZ competitive internationally. While the decision to drop corporate tax to 28% has been hailed, business leaders say a lower company tax rate is only part of the picture for companies deciding to invest. Business NZ CEO Phil [...]
June 4th, 2010
A new international study which looked at NZ management skills, focusing on manufacturing, has found management practices in NZ are ‘middling to average.’ This is a real concern as effective management practices are closely related to higher productivity and output in NZ manufacturing firms. The study benchmarked NZ management practices against 16 other countries, including [...]
May 28th, 2010
Although some may cringe at the name, more SMEs are turning to mentoring to help them through economic tough times in the wake of the recession. Business Mentors NZ, says between 1st April 2009 and 31st March 2010, 2,385 new clients applied for a mentor. Volunteer mentors carried out 8, 972 mentoring sessions, a 44% [...]
May 28th, 2010
Consultancy Deloitte says the task of adjusting business systems to account for a rise in GST will be a bigger job, and thus potentially costlier, than expected. The Computer Society says some businesses will need entirely new software packages. Deloitte says companies need to find out where GST “touches” their systems. Some are looking at [...]
May 26th, 2010
The NZ Institute’s latest recipe for boosting NZ’s economic fortunes is boosting skills. It says labour productivity - output per hour worked - is the most significant driver of a nation’s GDP per capita. NZ performs relatively poorly on measures of labour productivity, ranking 22nd of 30 OECD countries, whereas Aust ranks 13th. The NZ [...]
May 21st, 2010
US Demand for food safety products in the United States is expected to rise 6.7% a year until 2014. The US food processing segment accounted for 70% of total demand for food safety products last year. FoodProcessing.com says the largest share of food safety product demand will stem from the meat industry, with disinfection and [...]
May 21st, 2010
In a challenge to National’s business friendly credentials, a new survey by software company MYOB has found NZ business owners strongly oppose several of the proposed changes likely in the budget and are struggling with the current regulatory environment, with almost a third unhappy with the support of the Govt overall.
The MYOB Business Monitor has [...]
May 19th, 2010
Prime Minister John Key’s announcement science and innovation will be at the heart of next week’s Budget is a positive step forward, say business and manufacturing industry leaders, but the biggest challenge will be commercialising the research for the benefit of New Zealand.
Businesses are looking for the focus to be changed away from research on [...]
May 14th, 2010
Peter Sherwin, a business adviser for accounting firm Grant Thornton NZ, warns while Emerging Markets are leading the world out of recession, NZ businesses need to be well prepared and targeted before they engage with them. He says for NZ companies to reap the undoubted benefits, they have to be thoroughly prepared and with a [...]
May 14th, 2010
The latest edition of the bi-annual Regus BusinessTracker survey shows global economic growth is progressing steadily, but full recovery will not be reliably under way until December 2010. The survey’s 15,000 respondents report a higher percentage of businesses seeing revenue and profit growth than are experiencing decline. However, respondents, asked “When do you expect economic [...]
May 12th, 2010
Australian company tax cuts give NZ some breathing space. The Henry tax review had recommended the corporate tax rate be slashed to 25% but the Aust Govt is only dropping the rate from 30 to 28% by 2014. This gives the NZ Govt time to think about what we need to do to be [...]
May 7th, 2010
Businesses worried over electricity supply security will be pleased Transpower has been given approval from the Electricity Commission to proceed with a $170m upgrade to the national grid between the Waitaki and Clutha river systems. It means big new wind and hydro-electricity project proposals in the lower South Island will be able to feed seamlessly [...]
May 7th, 2010
Pressure on the Govt to drop NZ’s ETS is likely to increase with revelations the Aust Govt has shelved its emissions trading scheme for at least three years. It has been dropped to defuse Opposition leader Tony Abbott’s “great big new tax” attack in this year’s election campaign. The scheme has been dropped from the [...]
May 5th, 2010
Despite a Free Trade deal being negotiated with India, South Asian countries - India, Nepal, Bhutan, Bangladesh, Sri Lanka, Pakistan and Afghanistan - are pretty much off the radar for our exporters and importers. A study by the Asia NZ Foundation says businesses have so far failed to take advantage of developing trade potential in [...]
April 30th, 2010
It appears NZ businesses performed better than their Australian counterparts during the global financial crisis. Accounting software firm MYOB’s business monitor study surveyed 1000 businesses on both sides of the Tasman in July last year and found the proportion of businesses whose revenues fell was higher in Aust than NZ.
It found 35% of NZ [...]
April 30th, 2010
The Govt’s $1.5bn plan to put 75% of NZ homes on fibre optic cable broadband has been backed by the OECD. The Paris based organisation says the NZ and Aust Govts are pretty much alone in the OECD in proposing national fibre networks, but are being very forward-looking. It says in NZ it will be [...]
April 28th, 2010
The Tertiary Education Commission is interested in boosting workplace literacy. Its Workplace Literacy Fund helps eligible employees boost literacy, language and numeracy skills. Your business can qualify for 85% of the cost of a literacy programme. Information at Source
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April 23rd, 2010
The Department of Labour (DoL) and ERMA NZ have developed a guide to help businesses keep themselves and others safe. “Chemical Safety in the Workplace” applies to a wide range of industries. When completed, the workbook provides a full list of the chemicals stored and used in the workplace, including where they are located, how [...]
April 23rd, 2010
Last issue’s article “Advisory Boards Can Fill The Gaps,” led to a number of emails asking how to work with an advisory board. They can be low-cost, depending on how you handle meetings and mailings. They can have as few as four people and as many as 12, depending on how you want to [...]
April 22nd, 2010
John Key has been doing the hard yards in the US, meeting with Vice President Joe Biden, touching base with trade representatives and gaining plenty of plaudits and more outpourings about how much of a friend NZ is to the US. But there is a bigger fish the Govt should be putting its effort into, [...]
April 16th, 2010
Businesses will need to carefully assess the impact of the changes to New Zealand’s Emissions Trading Scheme (ETS). Carbon obligations for liquid fossil fuels, stationary energy and industrial processes under the ETS begin in July this year. Waste and synthetic gasses join the scheme in 2013 with agriculture joining the ETS in 2015.
While a limited [...]
April 16th, 2010
A private sector working group is to advise on the steps needed for New Zealand Inc. to create an international fund services industry.
The International Fund Services Development Group, chaired by long-time financial markets participant Craig Stobo, will look at what is needed to establish such an industry, along with associated activities to make NZ a [...]
April 14th, 2010
The latest Institute of Economic Research survey of business opinion shows the economy is getting better, but the recovery will be fragile and more gradual than businesses had hoped for. The worry is the recovery will benefit small businesses last, as the larger outfits race ahead. Seasonally adjusted, a net 5% of businesses say their [...]
April 9th, 2010
The NZ Institute is calling on the Govt to create an Innovation Council, saying it should be chaired by John Key. It says economic performance in advanced economies like NZ is strongly influenced by success at innovation. Trade growth is much stronger for the high value products and services which rely on innovation. Productivity is [...]
April 9th, 2010
Trucking industry representatives are warning freight customers to expect a rise in cartage rates this year as transport companies are forced to pass on rising operating costs. The primary culprit of higher costs is the surge in global oil prices which have reached a 12 month high. Exactly how much oil prices will rise in [...]
March 31st, 2010
Business NZ Chief Executive Phil O’Reilly says NZ will be the winner in gaining a Productivity Commission. He notes “productivity growth is fundamental to growing a competitive economy. It is of the utmost importance for growing all NZers’ living standards, but it is so easily derailed. Poorly conceived legislation and unnecessary laws can add costs [...]
March 26th, 2010
What started as a 2001 FTA with Singapore is set to become a powerful “new generation” regional FTA the US has made a top trade priority. The US also wants to expand the Trans Pacific Partnership (TPP) beyond the current eight countries involved in the talks and make it much broader. It has already told [...]
March 26th, 2010
OECD chief Angel Gurria says global economic recovery will be stronger than previously estimated this year, helped by robust growth in China and India. He’s picking global growth of 4 to 4.5%, way ahead of the OECD economy which will grow at around 2 to 2.5%. In November the OECD was picking the global [...]
March 24th, 2010
NZ’s top professional engineers say it’s a pipedream to think the country can have 90% renewable energy by 2025. IPENZ, the Institution of Professional Engineers has released a report on electricity generation and by its calculations, the amount of power generated in NZ from renewable sources - such as hydro, wind and geothermal - will [...]
March 19th, 2010
The 2009 “Managing Reputation” survey, by Senate Communications and Baseline Consultancy shows social media was instrumental in creating reputational damage for NZ organisations in many of the corporate crises over 2009. Neil Green, Managing Partner of Senate Communications, says public reaction expressed and fuelled by social media has helped double CEO awareness of the importance [...]
March 19th, 2010
Manpower’s Employment Outlook Survey shows overall employment optimism across NZ continues to improve. But hiring intentions for the next three months have softened somewhat after notable improvements reported last quarter, with the seasonally adjusted net employment outlook at +14%, up from +13% in the first quarter. This is due to an increase in the proportion [...]
March 17th, 2010
International investors could bypass NZ if problems with the Financial Advisers Act are not sorted out. Colin McKinnon, Executive Director of the NZ Private Equity and Venture Capital Association, is concerned about the requirement to have all financial advisers registered and qualified under definitions for parties giving investment advice under the new Act.
He warns [...]
March 12th, 2010
You would have thought perceptions of business and the financial sector took a hammering during the Global Financial Crisis. But the 2010 Edelman Trust Barometer shows global trust in business is up modestly. However the rebound is fueled by a spike in a handful of Western countries, especially the United States where it jumped 18 [...]
March 12th, 2010
A new survey by accounting firm Grant Thornton show the wage gap with Aust is set to widen, and may herald the start of another brain drain from NZ. The survey found 78% of Aust businesses are set to increase wages either in line with inflation or higher, compared with 55% of NZ companies.
Coupled with [...]
March 10th, 2010
The public library is going through a major revamp. The library of the future is a modern multi purpose building, complete with multi media labs, recording and broadcast studios, conference rooms and in some cases workshops.
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March 5th, 2010
Analysts JP Morgan now think the Reserve Bank is going to hold off its tightening till July, with a 50bp hike. Previously, JP Morgan had expected a 25bp move in April, because the deteriorating medium-term inflation outlook would prompt the RBNZ to tighten policy before official guidance suggested. In December The RBNZ said providing the [...]
March 5th, 2010
Andrew Gawith a director of Gareth Morgan Investments has been looking at the vexing problem of how to improve NZ’s economic position in relation to Aust. Writing in the NZ Herald, he says our thinking has to change if we’re to have a chance of meeting such a difficult goal. “The problem seems to be [...]
March 3rd, 2010
Businesses now have the ability to reach potential customers anytime, anywhere, and to target only the most promising prospects. This is changing how buyers and sellers interact. A crucial new part of this is data mining. This lets marketers collect and analyse billions of bits of information to understand the needs of consumers and appeal [...]
February 26th, 2010
A discussion paper looking at options criminalising of cartels has published for comment. Hard-core cartels are formed when rival firms agree to not compete with each other, and limit or remove competition that would provide products at competitive prices. Criminal penalties for cartels have recently been introduced in Australia, but here, while hard-core cartels are [...]
February 26th, 2010
The IMF is turning economic orthodoxy on its head in the wake of the Global Financial Crisis, and is calling for the overthrow of inflation targeting as the central goal of economic management. It says inflation should be allowed to rise to 4% to give Govts more chance of managing downturns. It says [...]
February 19th, 2010
ASB Bank’s economics team is warning businesses despite NZ coming out of recession, there are still several things to be aware of as the upturn gathers pace.
The first key change is the global availability of credit will not be as easy as it was - but with greater competition for the funds available. NZ [...]
February 19th, 2010
While John Key and Alan Bollard lock horns over whether NZ can or can’t catch up with Aust by 2025, business performance specialist John Haylock says the gap won’t be narrowed by tinkering with the tax system, changing macroeconomic policy or setting new educational standards. He says the real opportunity lies with improving the performance [...]
February 17th, 2010
Analysts have been lining up to take John Key’s “Step Change” plan for the economy apart. The speech was probably one off the most crucial delivered in this country - Reactions are mixed.
John Armstrong, “Those expecting something special in the Govt’s new economic plan which will prompt the “Step Change” in the pace of [...]
February 12th, 2010
Business analysts McKinsey say globalisation is under fire and declining due to decreased support for global trade liberalisation in the face of economic challenges. McKinsey sees increased protectionist activities, like the Buy-American clause in President Obama’s stimulus package, reducing the flow of people, jobs, goods and services. Their advice is to stress test [...]
February 12th, 2010
NZ has signed the Copenhagen accord, reaffirming its basic global climate change pledge of a conditional emissions reduction target in the range of 10%-20% below 1990 levels by 2020. John Key described the formal move, required by Feb 1 if NZ is to retain good faith with the UN-led climate change negotiation process, as “a [...]
February 10th, 2010
The Technology Investment Network’s 2009 report says technology was NZ’s third-biggest export industry last year, outpacing wine and meat exports. Tech exports last year were up 4% to $5.1bn. Technology firms came through the slow down better than most, with 37% reporting a profit Only 27% of other industries stayed in the black.
Accountants Ernst [...]
February 5th, 2010
The Environment Ministry is warning it can only promise “best endeavours” in giving trade-exposed industrial emitters of greenhouse gases covered by the Kyoto Protocol certainty about their allocations by the deadline of June 30. MfE says “this will be a complex, resource intensive process.” The timetable for completion critically requires cooperation and early preparation of [...]
February 5th, 2010
Trust shapes every relationship. It is the foundation of commerce. Eroding trust levels raises the cost of doing business. Management consultants McKinsey points out low trust increases transaction costs, lowers brand values, and creates greater difficulty attracting customers and retaining talent. Internally, the effects of a low trust environment are corrosive for governance and compliance [...]
February 3rd, 2010
A new survey of public and private sector CEOs by PricewaterhouseCoopers has found the nation’s business leaders are gaining confidence about the year ahead but believe it is “crunch time” for Govt policy. The CEOs expect the Govt to roll out significant announcements in key policy areas including regulation, infrastructure, business innovation, education and tax.
While [...]
January 29th, 2010
Businesses struggling with inconsistent, and at times non-existent, broadband services are calling for improved internet access and speed. Many are pinning their hopes on the Govt’s ultra-fast broadband initiative to allow organisations such as local lines and fibre companies to establish extensive regional fibre networks, catering for urban and rural customers,
The NZ Regional Fibre [...]
January 29th, 2010
Credit agency Dun and Bradstreet is tipping the NZ economy will grow by 1.8% in 2010. But this is somewhat lower than Westpac’s prediction for growth of 3.7% this year and 4.3% next year.
Dun and Bradstreet’s 2010 Economic and Risk Outlook Report says the risk of sluggish and weak growth internationally this year is becoming [...]
January 27th, 2010
The Govt is to focus this year on lifting the economy’s performance. A big part of this is centred on tax. This makes Budget 2010 one of the most crucial documents for NZ so far this century. The pressure is on the Key/English regime to come up with some incentives to get the country’s productivity [...]
January 22nd, 2010
Most business productivity is attributed to people. Focus on people, both employees and customers to gain a huge business advantage over your competitors. As a business owner, it is vital you understand what your staff and management need to know and action to ensure your business succeeds. These people are your ‘front line’. How [...]
January 22nd, 2010
JP Morgan has some good news for business as we go into 2010. It says:
• Expansion will quicken in 2010 as exports lead economy out of recession
• Improved confidence will buoy consumer and business spending
• RBNZ policy tightening to begin in March; OCR to reach 4% by end-2010
JP Morgan economists say in the second quarter [...]
January 20th, 2010
The NZ Herald’s Editors say the tax issue is one of the most crucial facing NZ, particularly as Auckland University professor of tax law Craig Elliffe points out a weakness in our taxation is we rely more heavily than most countries on revenue from personal incomes and company profits, which are “mobile” in the sense [...]
January 18th, 2010
In its report, the 2025 Productivity Task Force points out the typical NZer has less than the typical Australian here are some examples:
• The average size of a new Aust house or apartment built in 2007 was 212m2. In NZ, the comparable average was 193m2.
• Australians have 619 cars per 1000 people, while NZers [...]
January 18th, 2010
Business NZ Chief Executive Phil O’Reilly says the first report of the 2025 Task Force displays a comprehensive grasp of the factors which could propel NZ’s economy into higher growth. He says while the report covers the broad range of actions required for prosperity, its strength is its focus on Govt spending, noting “all [...]
December 4th, 2009
As we approach the end of 2009, a turbulent year on financial markets, many economies probably feel like they have dodged a bullet - but another may still be speeding towards them - unemployment. The millions who have lost their jobs in the recession are unlikely to see a reprieve any time soon. Unemployment is [...]
December 4th, 2009
Treasury has just released a report it prepared for the Govt in August, in advance of Cabinet’s meeting to prepare its economic strategy for the country. The report “Getting Started on Closing the Income Gaps,” focuses on the difficulties of NZ’s economy catching those of Aust and the rest of the OECD by 2025.
It makes [...]
November 27th, 2009
Treasury has just released a report it prepared for the Govt in August, in advance of Cabinet’s meeting to prepare its economic strategy for the country. The report “Getting Started on Closing the Income Gaps,” focuses on the difficulties of NZ’s economy catching those of Aust and the rest of the OECD by 2025.
It makes [...]
November 27th, 2009
There have been a fair share of businesses go under recently. Some may have suffered from these two easily cured problems:
1 - Copying Your Competitors. The best you can hope for if you do it right is to look just like they do - and even when you succeed, you lose, because price becomes the [...]
November 27th, 2009
A new Ministry of Education report shows two-thirds of bachelor degrees last year went to women, the highest figure ever. The report says women have dominated tertiary education for more than a decade, but the number of men who finish bachelor degrees is falling. If the trend continues there will be far-reaching social and [...]
November 20th, 2009
The Free Trade Agreement NZ and Malaysia have signed will help deepen ties with the southeast Asian nation which already takes $1bn of exports, making it NZ’s 8th biggest export destination. For New Zealand, the deal helps build momentum towards a broader Southeast Asian accord, which leaders signed up to at a meeting in Bangkok, [...]
November 20th, 2009
Remuneration consultant Strategic Pay doesn’t think NZ CEOs are being paid above the odds. It says most pay excesses are in the private sector. Its latest CEO and Top Executive remuneration survey dispels some myths about the public sector. It says in the largest organisations, those in the private sector could expect an average package [...]
November 18th, 2009
A new Ministry of Education report shows two-thirds of bachelor degrees last year went to women, the highest figure ever. The report says women have dominated tertiary education for more than a decade, but the number of men who finish bachelor degrees is falling. If the trend continues there will be far-reaching social and [...]
November 12th, 2009
The NZ Business Council for Sustainable Development says NZers oppose nearly all the major changes the Govt proposes to make to emissions trading and climate policy. They don’t want:
• Extended assistance to large emitters for up to 70 years.
• Large emitters being allowed to lift production and keep increasing emissions without a cap on overall [...]
November 12th, 2009
The Department of Labour has been looking at immigration and its value to the economy, and it seems policy settings are all wrong. It says attracting highly skilled immigrants will not significantly benefit the economy, because NZ needs people of all skill levels to boost growth. The Dept’s study, Economic Impacts of Immigration, says having [...]
November 6th, 2009
The NZ Business Council for Sustainable Development says NZers oppose nearly all the major changes the Govt proposes to make to emissions trading and climate policy. They don’t want:
• Extended assistance to large emitters for up to 70 years.
• Large emitters being allowed to lift production and keep increasing emissions without a cap on overall [...]
November 6th, 2009
The Free Trade Agreement NZ and Malaysia have signed will help deepen ties with the southeast Asian nation which already takes $1bn of exports, making it NZ’s 8th biggest export destination. For New Zealand, the deal helps build momentum towards a broader Southeast Asian accord, which leaders signed up to at a meeting in Bangkok, [...]
November 6th, 2009
Remuneration consultant Strategic Pay doesn’t think NZ CEOs are being paid above the odds. It says most pay excesses are in the private sector. Its latest CEO and Top Executive remuneration survey dispels some myths about the public sector. It says in the largest organisations, those in the private sector could expect an average package [...]
October 30th, 2009
The Free Trade Agreement NZ and Malaysia have signed will help deepen ties with the southeast Asian nation which already takes $1bn of exports, making it NZ’s 8th biggest export destination. For New Zealand, the deal helps build momentum towards a broader Southeast Asian accord, which leaders signed up to at a meeting in Bangkok, [...]
October 30th, 2009
These practical tips are adapted from comments by personal branding consultant Alan Weiss.
• Don’t try to restore everything you cut, but do restore your highest priorities.
• Analyse some things you’re doing without to see if you really need them, even in better times.
• Start to treat yourself more. Make this a high priority.
• Learn the [...]
October 30th, 2009
The Energy Management Association (EMANZ) is lamenting the poor showing by NZ companies when it comes to sound energy efficiency and energy management practices. A survey carried out by Synovate on behalf of the Energy Efficiency and Conservation Authority (EECA) shows while 79% of businesses rate energy management as critical, only 23% are committed to [...]
October 28th, 2009
The Northern Employers and Manufacturers Association says employers are wary about the reintroduction of an open competitive market for ACC workplace accounts. It says the single year when there was a private market for ACC turned into a bun fight between insurers trying to capture business and employers trying get accident insurance within prescribed time [...]
October 23rd, 2009
Despite the country sliding into recession last year, figures for the 2008 year, the latest available, show it wasn’t all bad for NZ businesses. Statistics NZ says -
• Total income for all NZ businesses increased to $560.8bn for the 2008 financial year. Somwhat suprisingly, the 7.1% ($37.2 bn) rise is higher than the 6.4% [...]
October 23rd, 2009
For once something for manufacturers and unions to get excited about together - the Govt says there will no unilateral reduction of any tariffs until 2015 at the earliest. Unions welcome the move saying it will help protect jobs. Council of Trade Unions Secretary Peter Conway says while tariffs provide much less security for local [...]
October 23rd, 2009
The NZIER’s latest survey of the business mood has found firms are not expecting to lay off more staff in the December quarter, after chopping workers for the past 18 months. The survey also found businesses are not likely to boost wages either. Business confidence is now at its highest level for a decade, pointing [...]
October 21st, 2009
The NZ Institute of Chartered Accountants says the Govt’s tax review is ignoring small businesses, so it has come up with its own scheme to reduce compliance costs for SMEs, while increasing productivity through the tax base. In the first instance the Institute wants a special rate for very small businesses - those with no [...]
October 16th, 2009
The NZ Institute of Chartered Accountants says the Govt’s tax review is ignoring small businesses, so it has come up with its own scheme to reduce compliance costs for SMEs, while increasing productivity through the tax base. In the first instance the Institute wants a special rate for very small businesses - those with no [...]
October 16th, 2009
The importance of tourism and its business potential have been outlined in new figures from the Ministry of Tourism. They show international tourism expenditure (excluding airfares) is forecast to grow by an average of 4.7% a year to reach $8.2bn in 2015. This means inbound tourists will boost their spending by $2.3bn a year by [...]
October 16th, 2009
After last week’s optimism from Treasury, pessimism this week from forecasters BERL. The group says in the short term a boom in log sales to China and a recovery in the meat trade points to a better economy. But the medium-term picture is not great because a recovery based on the export sector is not [...]
October 14th, 2009
For once something for manufacturers and unions to get excited about together - the Govt says there will no unilateral reduction of any tariffs until 2015 at the earliest. Unions welcome the move saying it will help protect jobs. Council of Trade Unions Secretary Peter Conway says while tariffs provide much less security for local [...]
October 9th, 2009
Despite the country sliding into recession last year, figures for the 2008 year, the latest available, show it wasn’t all bad for NZ businesses. Statistics NZ says -
• Total income for all NZ businesses increased to $560.8bn for the 2008 financial year. Somwhat suprisingly, the 7.1% ($37.2 bn) rise is higher than the 6.4% rise [...]
October 9th, 2009
Human Resources professionals are warning businesses to be prepared for a possible return to a labour shortage. Trade Me is reporting a “significant” jump in job ads, and recruitment firm Hays says Seek and some newspapers are experiencing the same. Hays NZ MD Jason Walker says “the economy is starting to improve and the rise [...]
October 9th, 2009
After last week’s optimism from Treasury, pessimism this week from forecasters BERL. The group says in the short term a boom in log sales to China and a recovery in the meat trade points to a better economy. But the medium-term picture is not great because a recovery based on the export sector is not [...]
October 6th, 2009
Research by Westpac economists shows over time, the exchange rate has helped rather than harmed commodity producers. The bank’s economists say the Kiwi tends to move in the same direction as world prices for NZ export commodities.
This limits the hurt for commodity exporters’ when world prices fall, though it also limits some of the [...]
October 2nd, 2009
A review of NZ’s venture capital industry has recommended continued Govt involvement in the sector to build on “encouraging but modest” growth in the sector’s activity. The NZ Venture Investment Fund commissioned international consultancy firm LECG to review the sector’s development in NZ. Among the report’s conclusions are:
• Venture capital has the potential to contribute [...]
October 2nd, 2009
Labour’s small business spokesperson, Manukau East MP, Ross Robertson, has called on NZ businesses to set up a small business lobby group to represent their interests. He says “in the USA, the small business lobby group, the National Independent Business Federation, has a powerful voice among senators and Congress. Aust small businesses do too, [...]
October 2nd, 2009
The NZ Business Council for Sustainable Development says the ETS deal National has put together with the Maori Party and which will now go to a Select Committee means emissions are likely to increase and cost taxpayers a lot more than under the current law. At the same time, the prospect of a broadly based [...]
October 1st, 2009
Human Resources professionals are warning businesses to be prepared for a possible return to a labour shortage. Trade Me is reporting a “significant” jump in job ads, and recruitment firm Hays says Seek and some newspapers are experiencing the same. Hays NZ MD Jason Walker says “the economy is starting to improve and the rise [...]
September 25th, 2009
Find a product attribute which captures the customer’s imagination. Look at the problem with fresh eyes and fresh data. Find a new attribute customers can get excited about and focus your positioning around it.
Market share gains are expensive. Market share comes at a heavy cost and your product planning and positioning must reflect this or [...]
September 25th, 2009
Economists come under pressure from investors when their forecasts miss the mark. And justifiably so. Aust analysts CommSec have looked at the performance of economic forecasters in estimating 77 indicators over 2009. The top five forecasters over 2009 so far are UBS, Westpac, CBA, Goldman Sachs JB Were and ANZ. But the rankings change dramatically [...]
September 25th, 2009
Over time, Apple has built a seasoned management team optimised to support bold new product initiatives (and recover from the occasional flop). Here are a few of the techniques Apple’s management uses to make the magic happen.
1. Ignore fads. Apple has held off building a cheap miniature laptop to respond to the “netbook” fad, because [...]
September 25th, 2009
In a piece of huge positive news, Treasury says the recession may be over and unemployment is not likely to reach previously expected heights. Its prediction is based on the international recovery, positive migration figures, rising business and consumer confidence and an improving housing market.
Treasury expects the June quarter to be “the last quarter of [...]
September 18th, 2009
Foreign-exchange traders are betting Reserve Bank Governor Alan Bollard will abandon his promise to keep interest rates at a record low. Bollard has hit back, saying the markets have difficulty accepting the fact interest rates can stay stable and they are frequently wrong.
But the evidence for a shift is compelling. With the Kiwi dollar appreciating [...]
September 18th, 2009
Oil production is becoming a fourth pillar of the NZ economy, behind dairy, meat and tourism. Latest figures show in 2008 oil export earnings ranked third behind dairy and meat in merchandise trade.
Crude oil and condensate production rose 57% to 2.5m tonnes in the year to December 2008 from 1.6m tonnes in 2007. The [...]
September 18th, 2009
What Gerry Brownlee proposes as far as mining on conservation land goes can be summed up in three sentences: “We are going to be far more pragmatic and supportive than the previous administration towards exploration and mining activity. Of course we must be cognisant of our responsibility to the environment. But mining and the environment [...]
September 11th, 2009
Commerce Minister Simon Power is hinting the Govt is likely to move supervision of market trading away from the NZX. Power points to a recent Aust decision to move supervision and enforcement of Aust’s domestic licensed financial markets from the Australian Securities Exchange to the Australian Securities and Investments Commission. This is the equivalent of [...]
September 11th, 2009
A new business confidence survey shows the engine room of NZ business, the SMEs are starting to come out of recession, but they’re upset with the Govt’s response to their sector’s suffering. The Research NZ Business Confidence Report for July shows some strong positive sentiment, with half of those surveyed predicting better conditions within six [...]
September 11th, 2009
Regional transport committees for most of the upper North Island - including Auckland - oppose allowing heavier trucks on main roads despite Govt and industry predictions of productivity gains and fuel savings. Local Government NZ has also raised concern about the costs for ratepayers of fixing local roads, as diesel road user charges cover only [...]
September 8th, 2009
The Govt has ignited a new storm with hints it will push forward NZ’s game of catch up with Aust in the economic stakes by opening parts of the Conservation Estate to mineral exploration. Aust’s ability to withstand the current recession has been down in large part to the Asian driven resources boom, which, apart [...]
September 4th, 2009
Figures from Britain show the value of having older workers. They show over-sixties employed by McDonald’s are making the fast food chain more profitable than their younger colleagues.
Data from its 400 British outlets shows customer satisfaction is 20% higher where older people are on the staff. About 60% of McDonald’s UK’s 75,000-strong workforce are under [...]
September 4th, 2009
Dennis Laundy business advisory director at Adelaide firm William Buck says businesses need to be ready to ramp up production when the economic recovery takes off and recent indications suggests it is not too far away. Laundy says the upswing, when it arrives, is likely to happen very quickly.
Consumer optimism is rising, and Laundy says [...]
September 4th, 2009
Cadbury is to get rid of palm oil from its chocolates after a public outcry. The firm started using the oil recently as part of a cost-cutting exercise which also saw the 150g and 250g bars shed about 20% of their weight. Replacing a portion of the cocoa butter ingredient with palm oil raised the [...]
September 1st, 2009
Most societies are ageing rapidly and simultaneously facing a dramatic decline in the number of births. What are some of the main implications of this demographic change? Japan is ageing so quickly it is investing in robotics, especially for childcare and aged care. Another spin-off from ageing is bio-technology; in short, a race is on [...]
August 28th, 2009
Associate Professor Kevin Voges of Canterbury University has co-authored a study with two Queensland academics which has found consumer perception of a company which sponsors a sports team is influenced by the team’s fortunes.
This the first international study to demonstrate how results interact with sponsorship. It followed the Queensland State of Origin rugby league [...]
August 28th, 2009
The Securities Commission wants some company directors banned for life, and more sent to jail, as part of an overhaul of securities laws.
At present, errant directors can only be banned for up to five years. But the Commission is looking to take a harder line, saying it wants the ban extended to life and any [...]
August 28th, 2009
Finance Minister Bill English says NZ is a decade behind other countries in using public-private partnerships to accelerate, manage risk, and get value for money from big national infrastructure investments. He says the Govt is set to make extensive use of PPPs, in which private investors share in both the risks and upside of [...]
August 21st, 2009
Reserve Bank governor Alan Bollard says the exchange rate is not helping the sustainability of future growth and if the easing in monetary conditions the bank forecast in June did not eventuate he ” would reassess policy settings,” shorthand for dropping interest rates. ASB chief economist Nick Tuffley says the absence of any mention of [...]
August 21st, 2009
Business NZ has been casting its eye over productivity and how to lift it in NZ. It says the buck stops with the private sector to generate more wealth and lift the country’s living standards. It says every NZ business large and small should be addressing the basics of productivity. These are:
1. Management investing in [...]
August 21st, 2009
Continuing his anti-recession “rolling maul” John Key has promised further measures to tackle soaring unemployment on top of a $152 million plan to get thousands of young NZers off the dole. But he has indicated they won’t be as generous as the nine programmes targeting youth. The next measures being worked on will vary in [...]
August 14th, 2009
More discussion on how to bring the dollar down - the NZ Manufacturers and Exporters Association is warning overly optimistic comment and forecasts of a recovery from Reserve Bank Governor Alan Bollard are contributing to the dollars’ rise and threaten any export led recovery.
Assn CEO John Walley says “we risk missing the opportunity to [...]
August 14th, 2009
While NZ and Aust draw closer to a single economic market, there are other indications of how closely related the two economies are even without further loosening of rules. Finance Minister Bill English says if Aust makes big changes to its GST or personal tax rates, the pressure would be on NZ to respond to [...]
August 14th, 2009
Employers & Manufacturers Association (Northern) CEO Alasdair Thompson says the “40% cut by 2020′ being promoted by Greenpeace cannot be afforded by NZers, and neither can we afford the 15% reduction hinted at by Climate Change Minister Nick Smith. The ‘40% cut by 2020′ campaign trivialises the seriousness of the emissions target cuts facing all [...]
August 7th, 2009
Wealthy Kiwi investors are not putting their money into the productive economy - they are sitting on their fortunes and resisting the temptation to play the sharemarket. ING’s quarterly investor survey shows sentiment among our wealthiest private investors improved by 25% in the second quarter, lifting their overall outlook from “pessimistic” to “neutral” for the [...]
August 7th, 2009
In what will be seen as a blow to NZ Inc’s long term competitiveness, Professor Peter Gluckman chief science adviser to John Key, says the local science community is in the doldrums, is losing bright young minds and cannot be competitive if scientists are continually marginalised. Professor Gluckman says “bright young NZers are simply not [...]
August 7th, 2009
A new book ‘Employment Relations in NZ,’ by AUT employment relations Professor Erling Rasmussen says NZ’s low productivity goes back several decades and there are very real barriers to the country lifting its performance. He notes NZ is a small market trying to build a service and knowledge economy and this brings enormous and sustained [...]
July 31st, 2009
1. Not defining the problem. A business plan should define a problem and explain how your business will solve it. It should be focused on potential customers, not on the fix itself.
2. Not recognising the target market. Business plans which make unrealistic claims about the potential market share they can gather show not enough research [...]
July 31st, 2009
Treasury is increasingly concerned about the strength of the NZ dollar, which it says is one of the big potential spoilers both for economic recovery by the end of this year and for a sustained reduction in the current account deficit. It says if the currency stays high effecting export growth, the ratio of the [...]
July 31st, 2009
Infometrics CEO Gareth Kiernan says the pain of the recession is not deep enough to teach NZers what they need to learn. He says a predicted gradual improvement in the financial situation will accelerate to the point where debt and savings habits will again be a problem. He predicts NZ is in for a tough [...]
July 24th, 2009
You can have the best product or service out there, but if you do not treat your customers well, they will not come back. The three common pet peeves of customers when dealing with any type of business are: waiting for a long time, being ignored by employees, and not feeling appreciated as a customer.
Let [...]
July 24th, 2009
The Govt looks set to pass an Amendment to transport regulations allowing trucks to operate at up to 50 tonnes on certain routes. The current limit is 44 tonnes. A trial run last year found productivity increased between 10 and 20% - trip numbers fell by 16% and fuel use dropped 20%. The Govt says [...]
July 24th, 2009
Imports are collapsing but exports are rising, especially to China after the FTA which came into force late last year. This helped push May trade figures to a “very healthy” $858m surplus, the highest level in 16 years. The surplus for the month was equal to 21.7% of exports the highest percentage since 1993. Exports [...]
July 17th, 2009
The Reader’s Digest Trust survey has found NZers have lost faith in big Aust owned banks, and think Cadbury and Tip-Top are the best brands. Sony, Toyota, Panadol, Sanitarium, Fisher & Paykel, Colgate, Panasonic and Heinz Watties round out the top 10. The banks have taken a hammering as a result of the global financial [...]
July 17th, 2009
If you are facing the possibility of making staff redundant remember the four R’s.
Reason: Redundancy is a situation where employment ends because the position filled by the employee is no longer required: It’s the position itself which is redundant and the decision to make a position redundant should have nothing to do with the particular [...]
July 17th, 2009
A joint study for the Ministry for the Environment by the NZ Institute of Economic Research and Infometrics into climate change policy concludes introducing a carbon price, while not costless, will not significantly affect its potential growth rate. The two organisations support a broad emissions trading scheme - with free allocation of units to sectors [...]
July 10th, 2009
The Business Council of Australia wants the company tax rate to be halved, with GST lifted from 10% to cover the revenue shortfall. The Council also wants tax on capital gains and interest income to be slashed to 15%, saying the reforms would attract international investment and raise economic growth. Both Wayne Swan and [...]
July 10th, 2009
A joint study by Govt, business groups and unions has identified seven key drivers for improving productivity.
1. Building your organisation’s leadership and management capability.
2. Working to create productive workplace cultures.
3. Encouraging innovation and the use of technology in the business.
4. Investing in people and skills.
5. Organising work.
6. Networking and collaboration.
7. Measuring what matters.
While company HR [...]
July 10th, 2009
A new report showing only four of the country’s 84 councils are fully complying with the law by processing resource consents on time proves the case for reforming the system, and the need to get on with it.
The NZ Business Council for Sustainable Development says failings revealed in the latest two yearly report on how [...]
July 3rd, 2009
The Swiss-based Bank for International Settlements, the only international organisation to predict the global financial crisis, is now saying the worst of it has probably passed. The bank says “glimmers of hope” are sparking a “rebound of risk appetite among investors,” pushing up borrowing by more than a quarter so far this year. In its [...]
July 3rd, 2009
New University of Waikato Management School research has shown the most significant factor in building a new brand is distribution, rather than the traditional marketing tools of advertising, discounting and a long product line. The research is co-authored by Waikato’s Professor Harald Van Heerde. His research found broad distribution has the largest direct impact on [...]
June 26th, 2009
Accounting and business advisory firm Grant Thornton says despite the recession it’s not all gloom for retailers - here’s why:
?Recessions, even deep ones, come to an end.
?Some retailers are performing well as they take advantage of more price-conscious consumers, they are gaining market share.
? The strong will survive so the sector will be more robust [...]
June 26th, 2009
Older workers are becoming a crucial component of the labour force as employers continue to battle a skills shortage. But these older staff members can be a management challenge. Managers must create a climate in which older workers will remain engaged and productive. Here’s How:
Throw out all your assumptions. Get rid of your stereotypes. Your [...]
June 26th, 2009
Massey University Agricultural trade policy specialist Professor Allan Rae says the US decision to reintroduce export subsidies on dairy products is disappointing and could prompt the EU to further increase its subsidies. But the US move, prompted by falling dairy prices, was foreshadowed in last year’s Farm Bill, which outlined plans to use dairy export [...]
June 19th, 2009
Many important qualities good leaders possess become even more critical during tough times. Demonstrate personal integrity and maintain personal credibility. When faced with unpleasant tasks like downsizing, many leaders lose sight of these and give into the temptation to cut corners.
To combat this, you must tell the truth. Talk to customers, engage staff, [...]
June 19th, 2009
Accounting and business advisory firm Grant Thornton says despite the recession it’s not all gloom for retailers - here’s why:
?Recessions, even deep ones, come to an end.
?Some retailers are performing well as they take advantage of more price-conscious consumers, they are gaining market share.
? The strong will survive so the sector will be more robust [...]
June 19th, 2009
Poor work culture and a lack of workplace leadership are costing NZ businesses more than $2.6bn a year. Culture & leadership expert Paddy Steinfort says Kiwi companies are flushing money down the toilet through low productivity. Research shows less than half of employees trust their bosses, and 25% simply don’t care about their jobs. Steinfort [...]
June 12th, 2009
The success of books about business and the economy has been as much of a surprise to the publishers as to many of the authors. Books such as The Economic Naturalist, by Robert Frank, have sold hundreds of thousands of copies. Nielsen Book-Scan says the specialist non-fiction market was the only publishing area to grow [...]
June 12th, 2009
A new book with contributions from some of the world’s leading economists, challenges the myth the recent banking crisis was caused by insufficient statutory regulation of financial markets. The book “Verdict On The Crash,” finds statutory regulation failed, and market participants took more risks than they should have done, but statutory regulation made matters worse [...]
June 12th, 2009
A new report on life in NZ, called ‘Attitude New Zealand’ has a few lessons for businesses. It shows widespread concern for household finances. Following the release of poor retail sales figures for the March quarter comes news most NZers are not planning to buy anything costing more than $2,000 in the next six [...]
June 5th, 2009
All Chief Financial Officers of top companies exhibit most of these habits:
1. Take a seat at the strategy table. The CFO should be involved in strategy as an independent arbiter, providing “staff” advice on strategic options.
2. Define and manage earnings expectations for brands within a company.
3. Manage the portfolio. Brands make up a portfolio and [...]
June 5th, 2009
Economic forecasters are tipping the US economy will begin growing in the second half of this year, while the jobless rate is expected to peak in the first quarter of 2010. The Blue Chip Economic Indicators newsletter for May has questioned a panel of economists who say economic growth, as measured by real GDP, will [...]
June 5th, 2009
The Reserve Bank is calling on trading banks to keep lending to “creditworthy” borrowers. As signs of improving confidence appear, the Reserve Bank warns credit growth has slowed in recent months. RBNZ Deputy Governor, Grant Spencer, says NZ has been fortunate its banking system has not experienced the “distress” seen in some countries. But [...]
May 29th, 2009
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How hard is recession hitting your region?
May 28th, 2009
Despite the fact there’s a recession on, people looking for a move to a new position shouldn’t be scared to negotiate on salary. Specialist recruitment firm Robert Half says when a candidate is presented with an offer is the time to make a play for a better deal. Robert Half director Tim Hird says a [...]
May 28th, 2009
Standards NZ has just published a new standard - a compliance programmes standard. It helps organisations develop compliance programmes which demonstrate adherence to legislative requirements, industry codes, organisational standards and standards of good corporate governance, ethics and community expectations.
NZS/AS 3806i will be of particular interest to:
• Company directors and CEOs responsible for their organisation’s governance.
• Accountants who [...]
May 28th, 2009
An index developed decades ago by the US Independent Economic Cycle Research Institute suggests the US economy, and thus the world, may recover before the end of the year. The growth rate of the Weekly Leading Index, composed of forward looking indicators for jobs, sales, income and output, has improved by a third from its [...]
May 21st, 2009
Two innovative online services have been launched for the benefit of local businesses. Wellington’s Synthesis Marketing has developed a service which gives business owners access to practical marketing assistance for just over $1 a day. The site is packed with “how to” information and is easy to access.
Christchurch firm Fried has launched Texsys, a [...]
May 21st, 2009
While employment conditions have changed considerably since Statistics NZ did its Business Operations Survey in 2008, it reveals some telling facts about the way businesses see workers today.
In the survey 47% of businesses reported skilled vacancies were hard to fill, but the reasons they gave are the most interesting factor - rather than actual skills [...]
May 21st, 2009
David Mahon, MD of Mahon China Investment management says NZ businesses must look to China for impetus to bring about much needed economic change. He says the FTA negotiated with China, the world’s first, gives this country unparalleled opportunities there, but with other nations already knocking on the door, the time for vacillation is over. [...]
May 15th, 2009
A new Australian study claims putting money into higher education will yield greater benefits for an economy than spending on industry and general tax cuts. A report by KPMG, commissioned by Aust’s 38 universities says real GDP could increase by an extra $1.6bn pa on average over the next decade, then to an average $38bn [...]
May 15th, 2009
Most people who are in work would welcome the extra money and responsibility which comes with a promotion - but a new study suggests it can be bad for your health. Researchers at Britain’s University of Warwick say when people get promoted they suffer about 10% more mental strain on average, and are also [...]
May 15th, 2009
John Key says the banks “pulled the pin” on the job summit’s proposed $2 billion equity fund. It was to have been co-sponsored by the banks and the Govt to take shareholdings in struggling companies. The banks are blaming the Govt for the collapse, saying Treasury officials got cold feet worrying the scheme could have [...]
May 8th, 2009
Many growing companies consider certain supplier relationships to be above review. This removes any incentive for suppliers to give you the best deal. Take these steps to encourage suppliers to revisit their prices.
• Get better data. Before beginning your next business development plan, find out as much as you can about what other companies of [...]
May 8th, 2009
We all know successful organisations are about engaging people, employees, partners, and customers, but many businesses find it difficult to convert this knowledge into action. To genuinely make things different and create a sustainable change, managers have to change their way of looking at themselves relative to their work. In the words of Gandhi [...]
May 8th, 2009
Arguments over whether to de-float the NZ dollar have picked up. BERL Chief Economist Ganesh Nana says the kiwi dollar is one of the top ten most traded currencies in the world, which subjects the country to unnecessary volatility. Exchange rate volatility hurts exporters who are meant to lift the economy out of recession. [...]
May 1st, 2009
We all know successful organisations are about engaging people, employees, partners, and customers, but many businesses find it difficult to convert this knowledge into action. To genuinely make things different and create a sustainable change, managers have to change their way of looking at themselves relative to their work. In the words of Gandhi [...]
May 1st, 2009
Treating top performers the same as weaker ones is being called “strategic suicide.” HR researchers at America’s Rutgers University say the current vogue of slashing perks and pay is managerial insanity. They say the tendency to treat everyone the same is “misguided and absolutely the wrong approach.”
They argue it is like an airline sticking its [...]
May 1st, 2009
Arguments over whether to de-float the NZ dollar have picked up. BERL Chief Economist Ganesh Nana says the kiwi dollar is one of the top ten most traded currencies in the world, which subjects the country to unnecessary volatility. Exchange rate volatility hurts exporters who are meant to lift the economy out of recession. [...]
April 17th, 2009
The traditional formula for selling a healthy business is between one and two times turnover, or four to eight times earnings. But relying on these formulas results in 75% of private businesses being sold for less than they are worth. Consider these alternatives:
First, you recast your income statements for a few prior years. [...]
April 17th, 2009
A survey of 92 of NZ’s top businesses by remuneration specialists, dsd Consulting, has found businesses are seeking innovative ways to manage their costs rather than cut jobs. Dsd says it has been surprised by the number of organisations looking internally and actively engaging with their staff in finding solutions, and really promoting the message [...]
April 17th, 2009
The NZ Manufacturers and Exporters Association Figures has lashed latest official figures showing NZ’s Multifactor Productivity (MFP) has grown by an average of only 0.6% since 2000. The Association says this performance is pitiful, but not surprising given our economic framework.
The Association’s top man, John Walley, says “the lack of growth in productivity is a [...]
April 6th, 2009
Lack of cashflow forecasting is the single largest problem small businesses face. National Bank specialist business manager John Eaden says not enough businesses map out their expected cashflow. This affects their potential survival in a challenging economic climate. He says businesses only planning once a year have a 36% survival rate over five-years. This contrasts [...]
April 6th, 2009
Most business owners know they need a mission statement, but having one doesn’t guarantee success. In fact many are so massaged they say nothing. If you’re developing a mission statement, keep these ideas in mind:
• Make sure the mission is clear. If staff can’t remember it, or express it in their own words, they can’t [...]
April 6th, 2009
The Govt needs to think carefully before deciding to limit temporary work visas for skilled migrants or interfere in any way with the retention decisions of companies. The Productive Economy Council says the Govt needs to consider why a productive company chooses to retain migrant workers over local workers, This would be the “skilled migrant” [...]
March 9th, 2009
In the current economic climate, delivering relevant offers and information is critical for connecting with budget-strapped consumers and getting them to spend. Donna Richardson of Mobilize Mail says businesses often react to recession by retreating into their caves and cutting costs everywhere, but cost cutting alone will not usually put them in good stead. [...]
March 9th, 2009
Researchers from University College London and the Finnish Institute of Occupational Health warn working long hours damages employees’ brain function and is as bad as smoking as a risk factor for dementia. Their research clearly indicates working overtime can reduce well-being and cognitive function of employees. In what is the largest study of its kind, [...]
March 9th, 2009
Not so long ago, credit card companies were throwing money at people to get them to sign up. Now, as they struggle to contend with a wave of defaults, they may pay you to leave. American Express, is actually offering some card members $300 to pay off their remaining balance and close their accounts.
Selected members [...]
March 9th, 2009
While the US economy is forcing many consumers to make sacrifices in order to save a few bucks, a handful of must-haves remain on the list. A recent survey… conducted by BIGresearch found Americans have redefined what’s “untouchable” and what is “expendable” in their lives to adjust to the current economic climate.
An overwhelming majority [...]
March 9th, 2009
While the mainstream media has focused on gloomy headline figures in the NZIER’s latest quarterly survey, there is some positive thinking in it as well. The organisation says over the next year, a combination of lower interest rates than in 2008, lower petrol prices, still relatively high wage inflation, further tax cuts in April and [...]
March 9th, 2009
John Key and Kevin Rudd, say they will work together to help each other’s country emerge from the global recession. Rudd says “governments will remain in absolute close contact on the appropriate actions.” Simplifying investment opportunities, making travel between Aust and NZ easier so as to boost tourism, helping each other out of the global [...]
March 6th, 2009
After “subprime” comes “Alt-A.” There are fears the global banking system will be hit by a second wave of huge losses, caused by defaults in the US on what are known as Alternative-A mortgages.
Ranking between prime and subprime, Alt-A loans were taken out by middle class Americans. As the recession deepens and more white-collar workers [...]
March 6th, 2009
Many bosses admit the current economic crisis is giving them a chance to restructure their firms in ways they should have done before, but found a hard sell when things were going well. As a rule of thumb, a careful cull of the 10% of lowest performers can make a firm leaner by removing fat [...]
March 6th, 2009
While the Govt desperately tries to find an emissions trading formula to suit everyone, the issue could be moot anyway - the price of carbon has lost almost two-thirds of its value in the past six months, threatening future investments in the energy sector and undermining confidence in emissions trading across the globe. An EU [...]
March 2nd, 2009
An emphasis on focus, speed, streamlining processes, and finding common platforms has characterised the best companies for years. But simplification is not the norm, and this is a problem. Companies sow the seeds of their own decline in adding too many things - product variations, business units, independent subsidiaries - without integrating them. They create [...]
March 2nd, 2009
Leadership guru Jack Welch says keeping yourself pumped up during tough times is crucial as your employees need to see your confidence. He says there are a few tried and tested ways to keep your morale up.
To remain motivated as a leader you can’t abdicate your confidence. You need to pump yourself up every day. [...]
March 2nd, 2009
Keeping up with R&D is a vital part of making sure your business is in good shape on the other side of the downturn. Here are some points to consider:
• New opportunities can show up during challenging times, as people think, search and turn over new stones. This will create new products and services ready [...]
February 27th, 2009
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February 23rd, 2009
Global marketing maestro Martin Lindstrom, has been scanning people’s brains to see how they react to ads, jingles and product smells, and he says sex doesn’t sell, Nokia tunes make people feel physically sick and Apple is a mini-religion. Lindstrom, author of the best-selling book, Buyology - Truth and Lies About Why We Buy, says [...]
February 23rd, 2009
Exceeding expectations is the means by which value is created and things get sold. You can exceed expectations in price, quality or service and possibly all three - but you must understand what it really means to exceed expectations before you can actually do it. The first thing to understand about exceeding expectations is the [...]
February 23rd, 2009
To be influential in business and earn the respect of potential clients, you need strong personal credibility. Having people believe you is critical to becoming a better leader and building your business. Here’s how:
1. Earn Respect With What You Do. Don’t try to earn it from status, position or power, which is counter-productive.
2. Let People [...]
February 20th, 2009
Is NZ being taken for a ride by Aust? Our economic future is tied strongly to theirs, but in certain areas, we are letting Aust take a lead when NZ should be acting more independently. There are real concerns NZ’s Pacific policy may be playing out through relations with Canberra. When he was Opposition Leader [...]
February 20th, 2009
Economists are predicting the dollar could be depressed for years yet, with a potential exchange rate below US50c. Good for exporters, but not the economy in general. The Kiwi has dropped by 15% against the US dollar in the past three months and is now about 30 cents below its high. The underlying factors in [...]
February 20th, 2009
In July 2007 The Main Report quoted NZ Institute head David Skilling, who was calling for NZ to take more control of its currency rather than leaving the determination of its value to foreign currency markets. At the time Skilling advocated either merging the NZ dollar with the Aust dollar or at the very [...]
February 16th, 2009
Current tools available for local businesses to calculate their carbon emissions are disappointing. A Waikato Management School masters student, Pauline de Haes, has tested four widely available carbon calculators developed for NZ small businesses. She looked at Catalyst R&D ACE www.sustainable.org.nz, The NZ Business Council For Sustainable Development Emissions Calculator www.nzbcsd.org.nz, the Trees of Canterbury [...]
February 16th, 2009
Here are some proven niche marketing tips to help your business weather the economic downturn:
• Clarify your value. In times of turmoil, customers analyse their buying decisions, and they’re not just searching for the lowest price. Companies must hone their marketing messages to define their value and competitive advantages. And they must develop a niche [...]
February 13th, 2009
Your premium renewal process should really start around four months before renewal if you are to avoid nasty premium increases. If you ran into renewal problems in 2008, consider these factors this year:
• Start negotiations early and ask tough questions.
• Do your homework on exposure to risk.
• Make sure you confirm the timetable in writing.
• [...]
February 13th, 2009
In tough times an entrepreneurial spirit might be the difference between your business staying afloat or going bust. Here are five traits which make a good entrepreneur.
1. It’s not just the idea. Where people go wrong is in thinking the idea is the most important thing. Ideas are actually not hard to find – it’s [...]
February 13th, 2009
Robert Peston, a BBC financial commentator says the semi-permanent nationalisation of the banking system, soon to be followed by significant taxpayer support for real companies in the real economy, means banks and private sector companies will have to work much harder to sustain the goodwill of those who are keeping them alive: taxpayers.
He says, “those [...]
December 8th, 2008
In some positive news for us all in the lead up to Christmas, the New Zealand Institute of Economic Research says a pick-up in consumer spending will haul the economy out of recession in the first half of next year.
The Institute says the current recession will remain relatively shallow, but on the downside it [...]
December 1st, 2008
Despite detractors saying NZ has a high corporate tax rate, a new PricewaterhouseCoopers World Bank study shows NZ businesses are well off when it comes to the amount of tax the Govt takes. NZ is the 10th easiest country in which to pay tax and 8th best for having a system which takes the least [...]
November 27th, 2008
Some of the country’s biggest businesses - the state-owned electricity enterprises and other Crown entities - can expect a major shake-up under the new Govt. Deputy leader Bill English, who will take up the Finance portfolio and will also be the country’s first Minister for Infrastructure, says the country needs higher performance from these enterprises. [...]
November 10th, 2008
JM Keynes was one of the 20th century’s most influential economists. He disputed the idea recessions are self-correcting. He made the argument it is quite possible for an economy to be in equilibrium with less than full employment, and high unemployment will depress demand, thus making an escape from recession difficult and slow. In his [...]
October 23rd, 2008
John Key has concentrated his top Ministers into the economic portfolios (himself with Tourism, Bill English, Finance and Infrastructure, Gerry Brownlee, Economic Development, Energy & Resources, Simon Power, Commerce & State-Owned Enterprises) as part of the drive for growth. “This cluster of Ministers and related portfolios demonstrate that getting the economy going will be front [...]
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