Posts Tagged ‘corporate strategy’

The Road to China…

Thursday, July 29th, 2010

…would appear to be the A14, which runs from the intersection of the M1 and M6 through the lower East Midlands, past Cambridge, Newmarket, Bury St.Edmunds and Ipswich to its end point at Felixstowe Docks.

I came back from Suffolk along the A11 on Monday, which combines with the A14 for a few miles near Newmarket and I was amazed at the number of lorries carrying shipping containers going the opposite way — one about every fifteen seconds.

This traffic says a huge amount about the British economy as all these (presumably mostly empty) containers were heading back to the container port at Felixstowe, which handles 35% of the UK’s container traffic. Nowadays, almost all consumer goods seem to be imported, mainly from China — and essentially the A14 is a conduit for all these goods to be shipped into the country from the far east.  (A fascinating fact quoted by Wikipedia and also very apposite to the state of the country today is that much of the land that’s occupied by Felixstowe Docks belongs to Trinity College, Cambridge — so we have another instance of the old money of the elite profiting from the removal of livelihood of those further down in the social pecking order.)

I’ve always thought Argos epitomised the flooding of British households with dirt cheap, almost instantly disposable consumerist tat imported directly from China. Because they don’t need to use nice packaging your product is usually handed over in some grubby beige box with Chinese lettering and some barely understandable instructions in some strange variant of English. However, I didn’t realise quite how efficiently their operation works.

In 2007 Argos opened a warehouse (or what it calls a Direct Import centre) in Kettering (by the A14) which basically receives the containers from the docks at Felixstowe (or perhaps Immingham or Southampton) and pulls out the many smaller boxes from within and then loads them on to lorries to their regional distribution depots — which tend to be dotted around the motorways and trunk roads — predominantly in the Midlands as that’s where all the imports are channelled towards — flowing inwards to the depots and then radiating back out again to the stores. They handled 12,000 containers in 2007 — which is about 33 a day assuming 7 day a week operation. There’s a few big ones on the M1 (near Leicester and Milton Keynes) and there’s a huge one at Burton on Trent.

Argos has quite a useful website where you can check whether items are in stock at your local store and, if they aren’t, then search for stock at nearby branches. However, this facility isn’t quite as useful as it might seem because their stock control seems to be so centralised and ‘just-in-time’ that once an item disappears from one store then it’s often unavailable anywhere because the reason it’s not in stock at the first store is because there’s none left at the huge warehouses that serve more or less the whole country. If there’s been an unexpected rush on any stock then the replenishments are likely to be in a container going through the Indian ocean or, just as likely, it’s gone forever as the factory in China will now be making something else.

This is unlike the things we still produce in this country — food perhaps — where the supply lines are short enough to mean the producers can respond to demand.

The new Argos catalogue came out this week — a massive doorstep of a thing. It covers the period up until Christmas so shows the lead time involved. The catalogue will need to have been sent to the printers a couple of months ago so all the merchandising and pricing decisions will need to have been made several months ago…and the buying before that. The stuff will need to have been designed before that. It’s quite likely there’s at least a year’s lead time on a lot of the products before the catalogue goes on sale.

Of course there’s then a massive risk that these products — once manufactured won’t sell in the quantities that are required. That’s why global capital tends to associate a lot of the riskier stuff, like faddy toys, with huge marketing events — like films aimed at children.

Argos, because of their catalogue, are only an extreme example of this process of feeding global capital — big companies like Tesco and, perhaps, even those nice people at John Lewis are all rolling their containers along the A14, disguised anonymously with names like Hapag or China Shipping — but they’re still full of junk that they’ve decided we’re going to buy and their marketing departments will succeed in brainwashing us to comply.

Eruption of Naked Vested Interests?

Monday, April 19th, 2010

The ash cloud from the Icelandic volcano has had a transformative effective on some aspects of life. For the first time in probably seventy years or so the skies have been almost completely quiet and as nature intended. The vast majority of northern Europe’s population will never have experienced life without the intrusion of aircraft noise or the despoliation of blue skies with vapour trails.

I guess the magnitude of the effect depends on where one lives — those near other sources of noise, such as busy roads, won’t notice much difference nor will those who live a long  distance from airports and away from flight paths. Here it’s been noticeable as we tend to get low-flying take-offs from Luton in the summer when they have to keep to low altitude to avoid the increased traffic coming to and from Heathrow. In the winter the planes seem to be able to climb more quickly. We also have a lot of activity associated with the Bovingdon stack for Heathrow but, as these planes are circling and their engines idling, that doesn’t create so much noise. Nevertheless, we’re experiencing an alternative that is completely unexpected and people will be much more aware of the environmental costs when flights do eventually resume. I would expect the relative tranquility over West London will now put paid to any thoughts of a third Heathrow runway.

The response of the airline industry to the crisis has been completely self-serving and casts the managements in an appalling light. When they thought the ban was very transient, they were reasonably happy to shut down their operations and many have left their passengers abroad in appalling conditions — with little regard for their welfare or even legal obligations in providing food and accommodation. British Airways, bmi and Ryanair have consistently extended their own cessation of operations beyond the NATS deadlines. BA decided to cancel all its flights for today when NATS had only announced a closure of airspace until one in the morning (it’s now been extended to 1 am tomorrow). Theoretically, airspace could have been opened and the airlines would not have started their operations up until it suited them.

Now the closure of airspace has extended to several days the airlines have changed tune and seem to be more motivated by their bottom lines than any other consideration. Sending up one or two of their own planes seems to be nothing more than a sick publicity stunt designed to undermine the credibility of the air traffic regulators. The point about this cloud is that it’s not homogenous. There are concentrations of ash that can’t be forecast. A hundred planes could go up and fly through it without too much trouble but one may hit a concentrated plume of ash that would bring it down. Naturally, if the airlines manage to pressure the regulators into opening up airspace and a disaster occurred then they would be first to pass the buck on to the air traffic control authorities who declared the skies safe. They are basically putting pressure on someone else to take responsibility for a decision that may cost thousands of people their lives — which is despicable. The pressuring of the safety authorities by the airlines makes me question their overall commitment to safety and makes me glad that aviation is such a heavily regulated industry — it needs to be with such unprincipled sharks for management.

Another effect is to remind everyone who takes the Internet and mass air travel for granted that the world is a bigger place than it seems. When people take long haul holidays they really are going a long way away from home and it’s perhaps not a bad thing that we all realise that globalisation in its various guises depends on some very tenuous and fragile links: some big, expensive, vulnerable machines (there can’t have been more than a few thousand long-haul jets ever been manufactured) and perhaps a few hundred cables and a few dozen satellites to carry communication. It only took a ship’s anchor to cut through the main cable that links India with Europe a couple of years ago.

There are some genuinely distressing cases of suffering caused by the cessation of air travel, such as the people waiting for bone marrow transplants. However, most of the consequences should give us cause for thought — do we really need to cause so much environmental damage to bring green beans and baby corn to our supermarkets, especially as these products use up so much water in the developing countries that grow them? There will be a lot of manufacturing supply chains disrupted — high value items like computer processors are flown from the Far East to Europe and North America on a just-in-time basis. No-one should feel any sympathy for the companies whose business models have been disrupted by this — it’s a risk of doing business that way. They’ve made a lot of money by not having working capital invested in stock and it’s no bad thing that they are reminded of the inherent recklessness of just-in-time and lean manufacturing. Unfortunately it’s likely that workers in manufacturing industries might get laid off due to parts shortages but this isn’t due to the volcano — it’s down to their spiv managements and those who feed the destructive demands of global capital — the bankers and management consultants.

And is it really so important that the elite athletes can’t make the London Marathon for a year or that Liverpool might have to go on a train to a football match? Or that Mylie Cyrus can’t make her film premiere in London? (Actually, the increasingly hysterical ‘something must be done’ tone of the news reports seems to reflect the frustrations of the journalists themselves who can’t fly off on jollies and are being forced to slum it on the trains or on the motorways.)

It’s tempting to think that this volcano is some sort of Gaia response from the planet to stick two fingers up at globalisation and global capital through its dependence on aviation. Those not completely in thrall to global capital might want to look back on the last few days and consider whether things always have to be the way we’ve come to accept them.

Strangest Places to Camp?

Sunday, April 11th, 2010

I thought this was quite funny. Often shops pitch tents up in pseudo-idealistic scenes but I was quite surprised to see where they’d put this example in B&Q.

B&Q Tent

B&Q Tent

I thought it quite amusing to imagine there was some sort of squatter living on the tops of their shelves. Even without this anarchic interpretation I was quite puzzled as to why they’d pitch the tent there where most customers wouldn’t see it –the photo was taken from the recently-added mezzanine level which has the show bathrooms and kitchens.

Spying on the Spies

Thursday, March 18th, 2010

Like most web users I’m an almost habitual user of Google search and I remember being one of its earliest adopters around 12 years ago when the likes of Yahoo and Alta Vista were the dominant search engines. I’m also quite an enthusiastic user of some of its derivative services, like Google News and Maps and I’m a tentative user of Google Scholar. However, I’ve thought for a while that its influence is far too dominant on the web to the extent that its famous motto ‘Don’t Be Evil’ is pretty meaningless — it’s almost irrelevant whether the people running this size of organisation are evil or not (and it would be very surprising if they were) as the fact of its very pervasiveness and power is inherently a ‘bad thing’.

I’m particularly suspicious of its plans to ‘digitise the world’s information’ because of its potentially disastrous effect on intellectual property rights — potentially creating much more widespread damage than Google News is currently wreaking on newspapers. Showing that these principles are generally as old as the hills it’s a classic case of killing the goose that laid the golden egg. It’s amazing how many people’s considered judgement is disregarded by puerile ‘my enemy’s enemy is my friend’ arguments because Murdoch’s News International is the biggest critic of Google in this area. If Google undermines intellectual property principles then it will be the viability of the small, niche publishers which vanishes first — not the Digger’s empire.

I also find Google’s arguments that it is a mere directory and conduit for other content to be completely disingenuous. It could make a lot more effort to remove links to illegal material — it’s just a cost that it doesn’t want to pay. After all, when it came to a question of making money or not in China it was happy to side with the censors then. Moreover, Google’s business strategy is primarily now devoted to loading content on to its site — either through user e-mails, videos or blogs or by uploading cheaply sourced material like scanning books (out of copyright ones for the time being). One of these sources of cheap content that I’m not convinced about is Google Street View so I was very interested to see the spy camera car in action today around Princes Risborough. It was happily cruising around taking six photos at once of everyone and everything on the road around it so I followed it for a while in my car with the objective of taking a picture of the spy vehicle itself.

Google Street View Car

Google Street View Car on Station Road, Princes Risborough

When the driver realised I was following him he seemed to get quite agitated — quickly pulling over to let me past but I then stopped in front. After all what’s wrong with trying to take a photograph of someone who’s literally taking thousands of photographs with the sole intention of publishing them so everyone in the world can see them? I got a couple of photos but decided not to follow too long as I didn’t want every photo of Princes Risborough to also feature me. As far as Street View goes, I can see it may have some limited value in very public places like city and town centres but I can see no benefit whatsoever of it taking photographs of residential streets. They just do it because they can — and if an organisation has that sort of ethos then it’s on the slippery slope to becoming what some people may term ‘evil’.

Google Spy Car

Google Street View Camera Car on Poppy Road, Princes Risborough

Google should learn the lessons of other companies who have tried to dominate a platform — Microsoft has arguably inflicted more damage on itself with disasters like Vista which no doubt had root causes in the company becoming too big for mistakes to be spotted and rectified by competent managers — maybe managers whose time was being taken up fighting anti-trust suits. In desktop terms Microsoft really fulfilled what customers wanted with XP and late 90s/early 200os versions of Office. It’s a feature of global capital that it demands ever more growth but the pursuit of this is problematic when your company’s products have met about 95% of what any customer will ever need. Perhaps Google is in the same position now. It should stop expanding its empire — concentrate on what it does well — boring old search and leave the intrusive, customer-alienating expansion alone?

See Lindeman’s Tollana Shiraz/Cabernet Being Bottled

Sunday, February 7th, 2010

Ever wondered how Asda and Tesco can sell their supposed £6 a bottle wine for 3 for £10. One trick is to cut the distance between the manufacture of the glass bottle and the place where it is filled with the unctuous liquid. In the case of Lindeman’s Tollana Shiraz/Cabernet the distance is probably about a few hundred yards.

If you look very carefully at the label you’ll see the wine is bottled at CH2 4LF — doesn’t sound very Australian as it’s not. It’s actually on an industrial estate, not near South Australia’s Barossa Valley, but next door to the picturesque Stanlow Oil Refinery on the plains of the Dee outside Chester (yes, in Cheshire). You can see an aerial view here.

It’s a long way from the old French ‘mise en chateaux’ guarantee of quality as the Aussie wine is transported in bulk to its export markets and bottled close to its eventual consumers. There’s a sound environmental reason for doing this — it prevents carbon being wasted by unnecessarily transporting the weight of glass bottles around the globe (and it also means the recycled bottles don’t need transporting back again.) However, it’s an interesting reminder of how economics and globalisation have made the wine come to the bottler and not vice versa.

The concept is taken to its extreme in Chester as the bottler is also the glass maker — a company called Quinn Glass. They even have a video on their website of the 400 bottles per minute production line where your Aussie plonk is put into bottle — get to it via their filling page.  They also operate a bonded warehouse which means they can hold their customers’ stock so they don’t have to pay duty until the wine leaves the premises just before delivery. It’s a clever and lean operation with the cullet (smashed up recycled glass) arriving at the factory and conceivably being turned into a full wine bottle within hours. There’s no doubt this ingenuity must knock a substantial amount of the cost of a bottle of wine — which makes the con of something like Hardy’s Crest being retailed at an RRP of £9.99 even more ridiculous than most people already realise when they see it perpetually ‘on offer’ for £4.99.

Quinn don’t just do wine. They do beer, spirits, alcopops — the lot. One interesting page on their website exposes the manufacturing process for a lot of drinks: ‘Product can be processed at sales gravity or high gravity product then diluted and carbonated. Flavoured Alcoholic Beverages and soft drinks can be made from concentrate or from a recipe.’  That is to say that a lot of commercial drinks are watered down on bottling. Again, it might be an economic and environmentally smart idea to produce alcopops or even beers in concentrated form although it makes the stomach churn to think of what some concentrated version of WKD or Smirnoff Ice might be like.

Another Low Blow from Scabways

Friday, January 22nd, 2010

BA has announced it will victimise any cabin crew going on strike by threatening to remove their staff travel concessions. These are, like many employer benefits, non-contractual. However, for many airline employees they are the only factor that encourages loyalty (particularly to a company that clearly holds its staff in contempt) and they play a big part in preventing staff turnover. No wonder that Walsh is rattling this sabre — his agenda would no doubt be served well by a mass exodus of  BA staff with long service. 

This low blow shows the management has moved back into the dark ages of industrial relations by resorting to crude threats that will further divide its workforce into scab and non-scab if carried out: imagine how the ambience in Club World might ooze the unique charm of a Nottinghamshire mining village with colleagues refusing to speak to each other. Perhaps the crews will need to be segregated into sections on the plane. Passengers might be asked at check in ‘Would you like to sit in scab or non-scab?’

RIP ‘Caring Capitalism’

Tuesday, January 19th, 2010

The Quaker founders of Cadbury’s will be gyrating in their graves after the company — an original model of benevolent capitalism — has been sold out by its management to bland global capital processed cheese makers. It might be an appropriate epitaph for the era of New Labour — so much meaningless bluster and posturing (such as came from Mandelson’s reported hostility to the bid) ends up being utterly cynical and worthless.

Maybe it’s appropriate for the times. The Cadbury family cared enough about the people who worked in their Bourneville factory that they built houses (with gardens) for their Victorian workers and set up other countless benevolent institutions for their workforce.

New Labour have been mystifyingly craven towards global capital so it’s perhaps appropriate that they impotently preside over the destruction of one of the last companies that seemed to offer a compromise between the naked greed of capital and the humane welfare of the people who worked in that organisation.

If ever there was an award for meaningless, misleading and insincere prattle it should go to Mandelson’s words on Cadbury as reported in ‘The Times’: ‘Lord Mandelson, who was unable to intervene in the bid process, nonetheless warned Kraft last month: “If you think that you can come here and make a fast buck you will find that you face huge opposition from the local population . . . and from the British Government.”’

Let’s see what he does rather than says.

Boeing Has A Dream(liner) — Nightmare for BA

Wednesday, December 16th, 2009

The infamously delayed Boeing 787 ‘Dreamliner’ actually got off the ground today – two and a half years late. This is a pretty good achievement seeing as one of the latest delays was caused by a fairly important structural flaw — apparently the part of the plane where the wings join on wasn’t strong enough. It wouldn’t have been much of a dreamflight if the wings had fallen off. According to the BBC, the wings managed to stay on for the duration of the test flight, although it landed earlier than schedule.

BA has 24 of the 787s on order but the papers have been speculating whether BA will even exist when they’re ready to be delivered — not because of more interminable Boeing delays but due to the death-wish that the management seem to want to inflict on the company. Willie Walsh seems to have backed himself into a corner — trying time-wasting wheezes like trying to sue the company over technicalities. He should look at the majority in favour of industrial action instead — 9 to 1. That can’t be blamed on militant union bosses — it’s the result of catastrophically bad management. This is no surprise when the company can’t decide whether it’s a low-cost airline that abolishes free food or an upmarket brand for the business and more discerning end of the market.

The BBC’s reporting of the strike has been woeful. They ask people who’ve booked holidays on BA what they think of the strike — what sort of response do they think they’re going to get? Yet the next item on the news is about Copenhagen and climate change. While there are people travelling over Christmas for necessary reasons there are an awful lot of the BA customers who are just jetting off for a sunny second (or third or fourth) holiday — so we’re expected to emote when Samantha and Toby can’t easily take their brats to the Caribbean for Christmas but then wring our hands over climate change? It seems like the editors of certain broadsheets are peeved that their own getaways are possibly being jeapordised — the Independent bizarrely wants the union to play down its huge majority for action.

Another inconsistency and hypocrisy is that the management of BA has the customers’ interests solely at heart — those nice men. Think who installed an abrasive chancer like Walsh into his position — the back-scratching clique of institutional shareholders like pension funds, stock market gamblers, hedge fund managers and so on. Exactly the bunch of economic micro short-termists whose judgement (along with Brown’s complacency) landed us the credit crunch. BA’s management has no-one’s interests at heart but global capital.

It’s a hugely irresponsible management that has had this strike ballot pending since the summer and seems more intent on provoking a showdown than resolving the underlying issues. They are a bunch of chancers and the union has hugely called their bluff by planning a strike of a length that would cripple the company. (For one thing, if all BA’s planes were grounded they would have no room for them, certainly at Heathrow.) The Daily Telegraph is considering if BA will be completely destroyed. It seems that Walsh is about to hand Branson and O’Leary a nice Christmas present.

Mars and Sexists?

Thursday, November 19th, 2009

I must side with my friends the feminists and express outrage, shock and horror at the latest Marks and Spencers TV advertisement. (See it on the Guardian site here.) Let’s recruit Stephen Fry (oh, we can’t as he’s in the advert himself) and organise a mass Tweet of outrage at the sight of a French underwear model appearing in a television advert for a shop that sells, er, 25% of all women’s lingerie in the UK. Or is it the corrosive sight of Philip Glenister as Gene Hunt threatening to lure all men back to Neanderthal 70s sexism — his line ‘That girl prancing around in her underwear’ is incredibly demeaning to women, isn’t it? Ah, but he was at a bar drinking. We’ve already got bans on young people enjoying themselves drinking in adverts — maybe we need to ban washed-up, semi-alcoholic seventies throwbacks from endorsing products too? The funny thing is that companies like M&S spend thousands on focus groups to find out what television actors and celebrities their customers empathise with (‘Our research shows that his on-screen character in Ashes to Ashes is extremely popular with our customers and his lines in the ad are in keeping with that role’). It’s difficult to believe that M&S would pay Glenister’s no doubt large fee without being fairly sure about his popularity with their core customer base, which is principally women.

BA’s Bum Year

Friday, November 6th, 2009

In the old days before its management came up with wheezes like charging passengers for choosing seats and getting rid of food (see previous posting), British Airways used to make a profit in the period April to October while usually making a cyclical loss in the winter. The new management have taken the cyclicity out by ensuring the airline loses money in the summer too — to the tune of nearly £300m.

Perhaps the twin track strategy of destroying customer service and constantly antagonising its own workforce is a deliberate attempt to turn BA into a low-cost airline? There can’t be any other explanation for this wanton destruction.

Positioning v. Core Competencies, X-Factor and New Labour

Sunday, November 1st, 2009

Thinking about ‘The Restuarant’ again I was struck how the format reflected two polarising concepts of corporate strategy. In the programme the chef of the pair had to cook their signature dish for Raymond’s assessment. Then the front of house person had to pitch the concept of their restaurant to Raymond and his minders.

This reflects the debate between the positioning school of corporate strategy and that of core competencies. Michael Porter’s famous market positioning theories emphasise how organisations should have a clear idea of where their objectives in a market — do they go for mass market leadership or for niche differentiation. This has filtered down into companies’ much reviled mission statements and goals and, in the process, Porter’s original insight has been lost. So you have companies that come out with the absolute banal like ‘we want to serve all your leisure travel needs’ which really says nothing apart from the company is in the leisure travel market. A brilliant definition of strategy is that it’s the decision about what NOT to do — as that decision can’t be reached by meaningless platitudes. This distortion has seeped into popular culture in shows like The Apprentice, X-Factor and the Restaurant where contestants always say they just want to ‘be the best’ or ‘kick the competition’s ass’ . It’s completely stating the obvious and not what Porter’s original analysis meant — which was to emphasise the role of careful choices and decision making — such as serving a gap in the market. So the clever X-Factor contestant might rationalise that there isn’t a successful act in a particular niche. Of course, it would be pretty impossible for them to do that as they’re all picked to a stultifying unoriginal formula.

It’s all very well saying what you want to be but it’s worse than useless to believe in an ambition if you have no capability of achieving it. This is where Hamel and Prahalad’s Core Competencies come in. This theory states that  organisations have inherent capabilities that cannot be easily imitated by competitors. These could be cultural, organisational, intellectual, political, managerial or directly related to the quality of the staff. The theory argues that companies often fail to realise and capitalise on their core competencies, especially if they are being crisis managed or ‘turned round’ by firefighting managers or management consultants (how often have ailing companies been completely finished off by new managements — the Royal Mail comes to mind at the moment).  The same is completely true of people (and contestants in reality shows). Everyone has things they are good at and not so good at and it is absolutely futile to try and persue an ambition if you don’t have the skill to ac hive a level of competence at it (never mind to achieve exceptional talent). So if you can’t open a tin then it’s pretty unlikely you’ll end up a Michelin starred chef, however much it’s your dream and ambition.

Of course shows like the Apprentice and X-Factor have this tension between positioning (what the contestants want to be) and competencies (what they are actually able to do) at their heart. The Apprentice is also brilliant at showing the dramatic irony of when contestants don’t have the self-knowledge to realise that that they don’t have the competencies to achieve their desired positioning. Sometimes the two things co-incide well and what the value of these shows (even the X-Factor) is to show that often ‘ordinary people’ have the most extraordinary, unexploited competencies and that they have as much talent as ‘the stars’.Yet the programme makers like to concentrate on the deluded people who think their competencies match their desired positioning like the ridiculous twins from Ireland.

It’s surely no co-incidence that when our government likes to maintain the ludicrous pretence of complete equality in everything (and in the process ensure there is less real equality than ever before), particularly in the education system, that the highest viewing figures are for programmes where people are judged – almost to the point of humiliation. Like the leaderboards in these programmes, people have a deep-seated sense of status and want to gain status (by definition at the expense of others). The programmes make sop to New Labour’s pathetic ‘Every 1′s a Winner’ mentality by having audiences which jeer and boo any negative comment (not realising that positive comments need some critical comment to achieve credibility and balance). It’s the equivalent of the ambition of giving every 16 year old an A* grade in GCSEs and thinking that demonstrates the brilliance of their education system.

Sad Geeks Reward Desperate for A New Vista?

Wednesday, October 21st, 2009

I’ve just seen one of the saddest sights imaginable — a straggle of IT geeks were queueing up outside PC World at the top of Tottenham Court Road waiting until midnight so they can get their sweaty fingers on Windows 7 (yes, I’m blogging  from a moving train!). Apparently there’s a massive demand for the new Microsoft OS which shows one of two things: a) people have forgotten how many bugs Vista originally had in it or b) people are so unhappy with Vista they are desperate for something to replace it with (even if it’s from the same pedigree as Vista). Of course there’s also option c) — that the IT industry is populated with dsyfunctional, anti-social freaks who thrive on novelty and their possession of some bit of software that no-one else has yet. However, that’s a given.

I use both Vista and XP and have never really ‘got’ Vista. Although my version seems to work ok, it seemed to be designed by some marketeers who wanted to replace old features from XP for the sake of it. Perhaps there’s a way of getting back some of my favourite XP dialogues and short cuts but I’m not prepared to waste my life in discovering them (not being an aforementioned anal retentive geek — though sad enough to blog on it, if not queue up for it).

Pubs — The Preserve of the Middle-Class?

Tuesday, October 6th, 2009
King William IV Speen

King William IV Speen

Today I drove through Southcourt in Aylesbury: a large, 1930s-60s housing estate which was originally almost all council housing. Such estates used to be bastions of working-class ale drinking but the smoking ban and the credit crunch have finished off two of the three pubs and the closest pub in the direction of the two centre is also shut. A pub that tried valiantly to keep going in the face of cheap supermarket beer and home-based entertainment like videos and Sky TV was the Steeplechase, which did some decent real ale at times. It has been boarded up for a year now and is a sad sight.

However, on the bright side, a report partly supported by CAMRA and publicised on the BBC website reported that cask ale was the only type of beer now with growing sales and partly because twice as many women enjoyed drinking it in the past couple of years. There was also a very interesting report on the Radio Four Food Programme about hops and their use in real ale — which gave an opportunity for Roger Protz to yet again claim that beer is far more interesting than wine. The brewer at Brewdog commented on his Punk IPA, which the female presenter found very tasty. (I love this beer and its weaker sister — Trashy Blonde – Brewdog are so non-pc they even make an 18% beer.)  The programme noted that the trend towards using more (and more assertive) hops started by US craft breweries and is now being adopted by ale brewers here. Such beers have to either have a high alcohol content to balance the bitterness or need to be drunk in much smaller quantities (such as thirds of pints) to be palatable.

The two themes above suggest that there’s a trend for both beer and pubs to lose their long-time association with the working man and instead to become the preserve of the middle-classes. A valid criticism of CAMRA is that while it has spectacularly succeeded in preserving real ale and increased the variety available, it has done so mainly for the benefit of a minority of beer snobs and tickers. Real ale is not the drink of the working man any more — that accolade was lost to lager a long time ago — the fact that real ale quality is dire in a large number of workaday, non-CAMRA-Good-Beer-Guide pubs might have a lot to do with this. However, it seems that these sort of workaday, average, unremarkable pubs are the ones that are suffering most at the moment and, as the cask report says, it’s the affluent real ale drinkers who are able to afford £3 a pint in the pub and don’t go for the £10 24 can Stella pack at Tesco as an alternative.

So perhaps the saviours of the English pub as we know it are the middle-classes, much as that might be an anathema to some of the more revolutionary founders of the real ale movement. The middle-class seem to have saved real ale and pubcos should perhaps target these high-spending, but demanding customers more. Another factor in the pub’s favour is brought to mind by having forty-something politicians paraded at the party conferences over the past couple of weeks: it seems the annoying, social-skills free nerds that inhabited student politics in the 80s are now making their bids to be the annoying, power-crazed nerds that run the country. But if that’s reflected in other walks of life there may be a silver lining in that the middle-class, especially Generation X who are entering middle-age, have very fond memories of the pub from their student days (mostly rose-tinted in terms of the amount they drank and time the spent there). Yet this almost sentimental attachment to the pub as a hub of student life might yet save the great British institution. The middle-classes might not be propping the bars up swilling ten pints of mild a night but they might be pretty solid campaigners to ensure that pubs are still there for people that do.

Crown, Sydenham, Oxfordshire

Crown, Sydenham, Oxfordshire

To illustrate the point there are a number of examples of local pubs being saved from closure by being bought by (presumably relatively wealthy) members of the local community and re-opened and run on a community basis. The Unicorn at Cublington and Crown at Sydenham, Oxon are good examples. I went tonight to a pub, the King William IV at Speen, that’s not owned by the community but run in a way that is designed to be community minded — to the extent of having a small room of a perfect sized for committee meetings. It also has an ice-cream parlour selling locally sourced ice-cream. A group of local charity volunteers were also enjoying the evening in the pub. These pubs aren’t, of course, exclusively full of middle-class people but they’ve benefited from the sort of activism that the middle-classes (and, dare I say it, CAMRA) have shown to be very successful.

Skinflint Airways

Monday, September 28th, 2009

Further evidence that current BA management is continuing to lose the plot comes thick and fast. Most recently was their ‘Enhanced Seating Policy’ — http://www.britishairways.com/travel/flightops/public/en_gb?p_faqid=3863 . This raises the prospect of people travelling together, like families, having to pay extortionate prices to sit together on one of BA’s flights. Charter airlines like Thomson have been making a tidy profit on this particular wheeze for a few years now (in practice it’s pretty unlikely that groups of passengers would be seated apart anyway unless this was done deliberately by the airline). BA are planning to charge £50 to book an exit row seat (a tax on tall people, perhaps?) and £10 per person per sector in Pig class — which would work out at £80 for a return for a family of 4. The irony is, of course, that if air travel was a remotely pleasurable experience then passengers wouldn’t be scrabbling around on the Internet to try and bag themselves the best seats of a bad lot.

And how much does it cost BA to bring in this technology? Hardly anything. The facility to prebook seats has been around since about 1985-6 on BA’s reservation system, having been bought from KLM in the mid-90s. What may have cost a little is adding a bit of code in to siphon money for the privelege out of customers’ credit card accounts.

What this shows is that BA’s bonkers management seems to be dominated by the sort of penny-pinching, marginal revenue obsessed idiots who have no clue about maintaining the brand value of a full-service airline. It’s only a few weeks since food was phased out on most Euro traveller flights. Now they’ve gone further down the low-cost airline route. This might make sense if BA had the remotest hope of competing with the likes of Ryanair and Easy Jet on costs but with a ‘mature’ workforce and operating out of high-cost hubs like Heathrow then this is pie-in-the-sky.

As with upmarket retailers like John Lewis, BA must compete by convincing customers that it represents value and, while it won’t be the cheapest, it will provide the best service.

Whenever companies introduce something like this that means poorer service and higher prices, it’s funny how they always say it’s in response to ‘customer demand’. I have a theory there is a special focus group for hire of masochistic individuals who make their living from telling market researchers ‘Sure I’d like to pay more to the company and get less for it.’  Probably the only company who wouldn’t make use of this resource would be Ryanair, whose strategy BA seems to be increasingly trying to ape.