Mr Marcus McGowan MSc PgDip BA (Hons)

This Business Education Learning Blog is aimed primarily at Higher Business Management students/teachers and ICT students/teachers.

The aim of this blog is to provide you with interesting articles, news, trivia as well as resources or links to materials which will help in your course of study.

I am a Teacher of Business Education and I have written for Education Scotland and BBC Bitesize.

If you'd like to contact me please click on the link to: email me

Thursday 24 January 2008

PR - Public Relations

Public Relations is a form of unpaid promotion.

PR tries to put a positive spin on events surounding the firm and can do this by:

writing and preparing press releases that are sent to newspapers and magazines informing them of upcoming events (perhaps the launch of a new product - The Angus Burger?)

Prepare and hand out company literature for potential customers to read and be influenced by.

Another job for PR is to try and respond to critics but in a good, positive way. To put a spin on it. For example if a company is caught out employing workers in Thailand who are getting poorly paid, the PR Dept will be on the case trying to argue that compared to other Thai workers they actually get a decent wage.

PR people arrange Press Conferences where the media can speak to people involved in the product or organisation for free. Think about Movie Stars publicising their latest blockbuster.

PR can also try to improve their image by arranging and organising donations to charrrrrriiitttteeeeeee (as Smashie and Nicey would say). So they look good and caring etc.

PR can invite in visitors or stakeholders in for a tour to try and develop good relations with them. Or even with the local community. Schools do this all the time! Getting parents in to see the new facilities or to show off some new initiative and show off how good we are!!!


One of the most famous faux pas by PR people was the blunder by Jo Moore who worked for the Labour Government. As the 9/11 attacks were going on she decided that "Today would be a good day to bury bad news". She knew the world's media had only one story to write so she tried to sneak her bad story out (I think it was to do with job losses) but unluckily for her, her email was leaked to the press. Jo Moore had to resign.

Research and Development


This is really part of product development.

So what's good about R&D?



  • You can create a competitive advantage by having a product that outstrips rivals (i-Pod?)

  • company image is improved if it is seen as innovative and forward thinking (Virgin, Apple?)

  • you can get a PATENT which then again increases competitive advantage due to limiting imitators

  • Prototypes can be developed and tested to try to satisfy customer needs

  • R&D could also mean that the firm becomes more productive with the development of new technology which in turn could mean they become more efficient and also reduce costs.

  • New production techniques can be created and implemented (again increasing production and lowering costs)

  • Staff may be highly motivated because they are being creative

Interestingly...
99% of products don't reach market
Dragons' Den deals with much of the R&D as they meet inventors who need cash to turn their prototype into a reality
R&D is very expensive, but if firms want to be around in the future they have to invest in their future or be left behind

Outsourcing


Outsourcing is when a company contracts out work to another firm.

eg. The School can and probably in the past has created a Yearbook. But normally it is contracted out to a Printer.

Indeed even the School Modernisation could have been done by the Council, but it was contracted out to a Construction company.

So why?


The good things for the company are:



  • the work will be done professionally and of high quality.

  • They can focus on their own, main business.

  • They can buy in the contractor on a job by job (or project by project) basis (saving labour costs)

  • They do not have to buy specialist equipment (as the contractor will provide the equipment)

  • The firm may not have the staff or indeed the equipment to actually perform the job

Bad things are:


  • it can be very expensive

  • you have less control over the job (there may be delays which you can't influence)

  • information may be accessed by the contractor that is confidential

  • the firm may layoff workers who were doing the job in order to bring in the contractor

2008 Prelim Advice for Higher Business Management

If you follow the link for my Higher BM page you will find the links to the 2007 past paper and the solutions.

Remember the COMMAND WORDS.

Remember SECTION ONE is compulsory.

SECTION TWO is the one you get to pick 2 from 5.

Also in Section One remember that the first question involves looking at the case study and mentioning the PROBLEMS of the company and not the solutions.

The following topics will be discussed over the next few days online:

POCGADSCIE
OUTSOURCING
STAKEHOLDERS
DOWNSIZING
SOURCES OF FINANCE
PRIMARY & SECONDARY INFORMATION
R&D
PUBLIC RELATIONS
TRADE UNIONS

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