Internal Organisation

Here is some information and study material from the Times 100 website for the topic of Internal Organisation:


http://www.thetimes100.co.uk/theory/theory--internal-organisation--230.php

In the News...

JAPAN AIRLINES IN TROUBLE

Japan Airlines (JAL), which entered bankruptcy protection last month, has announced a massive increase in loses. The airline said it lost 177.9bn yen ($1.99bn, £1.3bn) in the last nine months of 2009 - up from a loss of 1.9bn yen a year earlier.

JAL is continuing to operate flights while it undergoes major restructuring under court supervision. The company is expected to cut staff, routes and aircraft numbers in an attempt to return to profitability.

SPANISH OIL FIRM DRILLS NEAR FALKLANDS

Spanish oil company Repsol is to drill for oil in an area near the Falkland Islands.
It will drill about 200 miles off Argentina's coast by December, "well within Argentinean waters".

The move comes as UK oil companies begin to search for oil in the Falklands, despite strong opposition from Argentina. An oil platform started drilling in Falklands territorial waters this week.

The platform, the Ocean Guardian, has been towed 8,000 miles from the Cromarty Firth in Scotland. Repsol said it would explore for oil in a "few" wells in the area.

MORE JAPANESE CAR RECALLS

Three Japanese automakers have announced the recall of thousands of vehicles, mostly in their home market.

Suzuki Motor is recalling 432,000 small vans in Japan because of a potential problem with air conditioning units.

Nissan's recall involves about 76,000 cars in Japan and more than 2,000 overseas due to a defect that may cause engine failure. And some 60,000 Daihatsu vehicles are being recalled due to faulty airbags that could accidentally inflate.

The announcements come as 8.5 million Toyota vehicles are being recalled worldwide because of safety concerns.

UNIONS INVOLVED IN CORUS DISPUTE

Union leaders have been meeting in London to discuss "orchestrated action" in the wake of the partial mothballing of the Redcar Corus plant.

The GMB, Community and Unite unions want to force the company to make a firm commitment to finding a buyer for Teesside Cast Products (TCP).

The blast furnace was shut down at the plant on 19 February, leaving 1,600 workers facing the axe. Corus said it remained open to credible offers for TCP.

The site has been at risk since April 2009 when international buyers pulled out of a 10-year contract to buy steel slabs.

Source: BBC News

Why literacy and numeracy are STILL important!

It used to be called the 3 Rs.

Reading
wRiting
aRithmetic

Now we call it literacy and numeracy.

A shocking study of Scottish pupils has indicated that 66% leave Primary Education lacking these basic skills.

This will have a huge long term impact on not only our education system, but our economy.

Reading and writing in particular seem to be a lost art at times. I implore pupils, students and learners to realise just how important these basics are in life and work. You cannot expect to be a lawyer, doctor or accountant if you cannot master the basics! You will no be able to function in your job.

Pupils have to take more responsibility for their own learning and realise that not every lesson should be entertaining. Teachers are here to educate and pass on knowledge and skills. When you get to the 'Big Bad World' no-one is going to hold your hand and guide you through the basics.

To complete many tasks you will need to find information out for yourself, by guess what? Not by drinking a magic potion or watching the latest US import on TV, or even by listening to your iPod in one ear.

No.

By reading!

So please consider your future and the future of even your own potential children and start trying to think independently and making more of an effort.

We do not want to have a future like in the film Idiocracy, where a man from the 20th century wakes up in the distant future to find he has the highest IQ on Earth!

Skills employers are looking for

Here are some of the Transferable skills that are needed among the workforce of today and indeed tomorrow:

The competencies or transferable skills that are particularly popular with graduate recruiters include:

communication - ability to communicate orally, in writing, or via electronic means, in a manner appropriate to the audience;

teamwork - being a constructive team member, contributing practically to the success of the team;

leadership - being able to motivate and encourage others, whilst taking the lead;

initiative - ability to see opportunities and to set and achieve goals;

problem solving - thinking things through in a logical way in order to determine key issues, often also including creative thinking;

flexibility/adaptability - ability to handle change and adapt to new situations;

self-awareness - knowing your strengths and skills and having the confidence to put these across;

commitment/motivation - having energy and enthusiasm in pursuing projects;

interpersonal skills - ability to relate well to others and to establish good working relationships;

numeracy - competence and understanding of numerical data, statistics and graphs.

Source: Prospects

World's Biggest Swimming Pool

San Alfonso Del Mar in Chile holds the current record for the longest swimming pool in the world! The pool is some 1000 metres long. It is reputedly 19 acres!

It is an incredible feat of engineering.

In the News...

US SCHOOL SPYING ON STUDENTS!

Parents in the US have accused a school of spying on children by remotely activating webcams on laptops. A couple from Pennsylvania have filed a lawsuit against a school district which gave laptops to its high school pupils.

They say their son was told off by teachers for "engaging in improper behaviour in his home" and that the evidence was an image from his webcam.

Lower Merion School District says it has now deactivated a tracking device installed on the laptops.

It says the security feature was only used to track lost, stolen and missing laptops.
But it was deactivated on Thursday and would not be re-instated without informing students and families, the district said.


UK CAR PRODUCTION RISES

UK car production saw a sharp increase in January, rising 64.8% from the same month the previous year.

That was the biggest year-on-year increase in monthly production since May 1976, the Society of Motor Manufacturers and Traders (SMMT) said.

Some 101,190 cars were produced in January, up from 85,316 in December.

Car production levels fell to a 25-year low in 2009, but the SMMT said it expected "modest growth" in the year ahead.


AIR INDIA BAILED OUT BY GOVERNMENT

The Indian government has approved an injection of $173m (£110m) for the ailing national carrier Air India.
The instalment is part of an expected $432m ($277m) financial aid package for the company, which has reported massive losses in recent years.
The money would be paid out in two phases, officials said.
Last year, the airline agreed to restructure the company, cut costs amounting to £407m over two years and to boost its revenues.
The airline reported a loss of $875m in the fiscal year ending in March 2009.


PLEASE ROB ME

A website called PleaseRobMe claims to reveal the location of empty homes based on what people post online.

The Dutch developers told BBC News the site was designed to prove a point about the dangers of sharing precise location information on the internet. The site scrutinises players of online game Foursquare, which is based on a person's location in the real world.

PleaseRobMe extracts information from players who have chosen to post their whereabouts automatically onto Twitter.

"It started with me and a friend looking at our Twitter feeds and seeing more and more Foursquare posts," said Boy Van Amstel, one of PleaseRobMe's developers.

"People were checking in at their house, or their girlfriend's or friend's house, and sharing the address - I don't think they were aware of how much they were sharing."


ONLINE RADIO STATION LISTENERS UP

In an online world saturated by struggling streaming music services, Internet radio site Pandora appears to be making all the right moves.

Last year, the 10-year old company recorded its first profitable quarter, doubled its subscription base to more than 40 million users and took in $50 million of revenue. The company also announced several new partnerships that allow users to take Pandora with them in the car and on the TV.

Pandora certainly seems to have found its sweet spot, making it a standout among other streaming services that have not been able to make it on their own. Social music site iMeem was scooped up by MySpace in December for just $1 million, and Apple (AAPL, Fortune 500) bought cloud-based music service Lala for not much more. Analysts say even mighty MySpace Music may be unable to sustain itself for much longer.

The company attributed its ability to rise through the rubble to its substantial user growth over the past year. With a rapidly increasing number of subscribers, Pandora has been able to attract better advertisers and demand higher ad prices.


GE NUCLEAR WASTE RECYCLE PLAN

Eric Loewen won't even utter the words "spent nuclear fuel." That's the industry term of art for the nuclear fuel bundles that are pulled out of today's reactors after they're done making electricity.
Loewen, a nuclear engineer at General Electric, doesn't see them as "spent" at all. He sees them as raw material for a new type of nuclear reactor. "It's used, but it's an energy asset," he says.

GE's joint venture with Hitachi, called GE Hitachi Nuclear Energy, would like to build both the reactor and facility that creates the new fuel at a single site, which GE calls an advanced recycling center, or an ARC.
Loewen and GE suddenly have a captive audience. The Obama administration plans to offer $54 billion in loan guarantees to help America start building new nuclear reactors again.

Sources: BBC Business News, Fortune, Forbes

Exam Tips for Higher Business and Higher Administration

Here are some tips and mnemonics for my classes to use in my two Higher classes.

HIGHER BUSINESS MANAGEMENT

TCP

Time (how long does it take? Is communication and decision-making affected?)
Cost (financial cost? training cost?)
People (Managers, Customers, Employees)


HIGHER ADMINISTRATION

TTT
Time - (how long does it take? Is communication and decision-making affected?)
Technology - (impact? cost?)
Training - (do employees need training? What type? Impact and effect?)

DDDD
Discipline - (are workers organised and productive?)
Distractions - (what types of things put them off?)
Deadlines - (what happens with targets and deadlines?)
Delegation - (what happens with work for subordinates or even superiors?)

Yorkhill Children's Foundation

Thank you to everyone who sponsored me online and offline. I have raised the princely sum of £450 for Yorkhill which will be added to my colleagues total for Hamilton Grammar.

You can still donate online at www.justgiving.com/marcus-mcgowan

Any donations are welcome.

I am sure you agree that it is a very worthwhile charity.

Not so famous Scots...

While on my February break, I have been reading an excellent book on the history of the British Army. As my students will know I am interested in history and I am fascinated by the British Empire - not in terms of its actual span and influence, but in the way it seemed that many of the people in the Victorian age in particular seemed to live incredible lives.



For example, a boy born in Glasgow could join the Army or Navy and end up in India, South Africa and many points in between. Travel broadens the mind, and I wonder just what kind of lives these people had?



Naturally they did have to put up with disease and on occasion famine, and the soldiers saw sights that would have either hardened them or broke them, or possibly a delayed mixture of both.



Now we are all aware of the superb reputation of Scots in the British Army who were among the bravest men and women on the planet. What I was not aware of was in particular 3 famous Scots who should really be far more well known:



Sir Ralph Abercromby - A veteran of the Seven Years War, and the Napoleonic Wars. He planned and led the amphibious invasion of Abukir (still one of our military's finest achievements) and in the same campaign he became a fallen hero of the Battle of Alexandria (1801).


Sir John Moore - a legendary General of the Peninsular Wars and the fallen hero of the Battle of Corunna (1809). Corunna is famous as a precursor to Dunkirk, in that the Army escaped almost intact when it could have been destroyed. Moore was also an MP (1784-90) for Lanark Burghs. To truly appreciate his legendary status, Sir John Moore has a statue in George Square! He also has a House named after him at the High School of Glasgow.



Sir Colin Campbell - a hero of Crimea and the Indian Mutiny (1857). He was the son of a Glasgow carpenter (or joiner as we would call him!) and was a well respected General. He is perhaps not as well known or remembered as the men mentioned above, but this is perhaps because he did not die in battle.

Here is another question with which to think and reflect. Why is it that such a small country as Scotland has produced a dis-proportionate amount of soldiers for the Armed Forces? Is it to do with poverty? Our education? Or is it a cultural thing?

I am not sure, but as a student of history (be it economic or military - though often they are intertwinned) we must remember that war is unedifying.

However, as I mentioned earlier, I am fascinated by the lives people of those eras lived. We travel for fun and pleasure, but often only spend a week or two at the most in far flung exotic locales. The men and women of the 1700s and 1800s spent their lives on different continents and far from home.

6 Failed Car Companies

Fortune have recently illustrated some of the automotive industry's greatest failures. Here are some names with which you may or may not be familiar. If I am honest I only know Tucker and DeLorean, but hey, we are here to learn new things, eh?

Crosley Motors (1939-1952)

Tuck Corporation (1944-1949) - made famous by the George Lucas produced movie: Tucker: The Man and His Dream

Cunningham Motors (1950-1955)

Bricklin Motors (1974 - 1976)

DeLorean Motor Company (1975 - 1982) - the Back to the Future car

Vector Motors (1971 - 1993)


Perhaps when I get more time I will have a look at some of the lesser known car companies in due course.

For the full article, please follow the link to Fortune:

http://money.cnn.com/galleries/2010/autos/1002/gallery.failed_car_companies.fortune/index.html

Higher Business Management - Sources of Finance

Leasing
Renting of vehicles or equipment
More expensive in the long term than buying the asset
Asset is replaced when obsolete
Spread payments

Share issue
Dividends have to be paid to shareholders
Loss of control possible
Can generate large amounts of money/capital

Debentures
A long term loan to plcs
Debenture holders receive fixed interest
Debenture holders receive the money lent back

Venture Capital (think Dragons' Den)
Venture capitalists lend money when banks think it is too risky
Large amounts lent but interest is high
Part ownership often needed in exchange for finance

Hire purchase
A deposit is required and the rest of the price is paid in instalments
Ownership remains with the finance company until the last instalmentis made

Mortgage
A large sum of money borrowed from a bank or building society to purchase property
Monthly repayments required (interest)
Long term borrowing eg 25 years

Grants
Some of the money paid by eg Local Authority or Government
No need to repay a grant
May be given if organisation is creating jobs in an area of highunemployment etc

Sale of asset (Divestment)
Equipment or property which is no longer required is sold off to raisecash

Retained profits
Profits made are not distributed to the owners but kept back for reinvestment

Higher Business Management - Cash Flow Question

From 2005 Past Paper

Identify 4 sources of cash flow problems and suggest one solution for each source you have identified.

Sources of cash flow problems:
too much money tied up in stock
allowing customers too long to pay debtors
not paying on time
high levels of borrowing along with high interest rates
high drawings
low sales
high expenses
purchasing capital equipment

Solutions
introduce JIT
offer discounts to encourage prompt payment
offer discounts/promote cash sales
sell any unused assets
reduce loans by eg increasing number of investors
debt factoring
sale and leaseback
extended credit
arrange overdraft/loan
cut costs
promote product or services

This is a question that turns up in one shape or another. The important thing to remember is the difference between identifying the problems and the actual solutions.

This is the kind of question that seems daunting, but in actual fact if you get to know it well, you will realise that the question can never really be worded too differently and that the same answers normally apply to what is in effect a banker question.

Demergers on the rise during the recession

Demergers - the dividing up of an organisation into two or more parts, is once again becoming common.

I remember years ago when first creating my slides and notes for Higher Business Management at Mearns Castle High that finding examples of demergers were pretty rare. Rarer still were examples pupils had heard of! The only one I recalled was Racal Instruments splitting up and Vodafone being one of the new companies.

However there is an increase in the trend of the demeger.

Cable & Wireless, the famous UK communications firm will demerge into Cable & Wireless Worldwide plc and Cable & Wireless Communications plc, the new name for Cable & Wireless International.

Carphone Warehouse will split into New Carphone Warehouse (focusing on the retail) and TalkTalk (service provider).

Motorola are the latest big name to announce plans for a demerger.

Study Question:
What are the benefits to an organisation of demerging?

Greece in Turmoil

Greece is one of the PIGS (Portugal, Italy, Greece and Spain) the Souther European nations that traditionally have not always been economically strong.

Greece has found itself in major trouble... with massive national debt. The figure quoted recently was 12.7%, which is FOUR times more than the Euro nations allow! Greek spending has been wild, whereas tax coming into the Greek coffers has been dwindling.

Greece as a member of the Euro currency and the Single Monetary Policy are looking to nations such as France and Germany to bail them out. But they do not seem so keen.

Other commentators are wondering whether this crisis could see the eventual collapse or devaluing of the Euro itself.

The Greek Government is under intense pressure from the rest of the EU and naturally those EU members who are in the Euro.

They have come up with some ideas to help stem the rising debt:

1. Cut budget deficit below EU ceiling of 3% of GDP by 2012, from 12.7% in 2009
2. Freeze public sector salaries and cut bonuses
3. Replace only one in five of people leaving civil service
4. Raise average retirement age by two years to 63, by 2015
5. Raise taxes on fuel, tobacco, alcohol and property (Source: BBC Business News)

Perhaps even more draconian measures will be needed to save the Greek economy and indeed the Euro.

Higher Business Management - The Stages in Recruitment and Selection

This is an often asked exam question which to be honest is not always answered that well, yet as you will see it is throwing away reasonable marks!

1. IDENTIFY JOB VACANCY

Is there a job at all? Reasons for vacancies could be retirement, promotion, people leaving or quitting, or a new job being created.

2. CONDUCT A JOB ANALYSIS

A study of what the job entails will be conducted to see if a new job has to be advertised or whether existing people can take part of the remit.

3. WRITE A JOB DESCRIPTION & PERSON SPECIFICATION

If a job is needed, then we need to write the 2 recruitment documents that applicants will need. The job description outlines what the job entails: the job title, the duties and responsibilities of the said job etc...

Person specification is more about the qualities needed by the ideal candidate. It is divided into essential and desirable qualities.

4. ADVERTISE JOB INTERNALLY OR EXTERNALLY

Once the recruitment documents are ready to make up the recruitment pack, then you have to decide whether to advertise internally or externally. Both have advanatges and disadvantages, but that is a whole other post!

5. SEND OUT RECRUITMENT PACKS (APPLICATION FORMS and/or CVs)

Potential applicants will phone up or email to receive the recruitment pack. They have to complete and return by a certain deadline.

6. FILTER APPLICATIONS AND PREPARE THE LEET

The panel will go through the application forms and quickly filter out the useless ones and select the ones that show potential. The leet is prepared - this means the candidates being invited for interview.

7. SELECTION METHODS (INTERVIEW MOST COMMON!)

Normally most jobs are decided upon by interview.

Though make sure you know all about:
TESTS (IQ, Psychometric, Attainment, Fitness, Aptitude)
ASSESSMENT CENTRES (for Graduate or Managerial jobs)
GRAPHOLOGY (ridiculed in the UK and US, but big in France and Poland!)

8. INFORM SUCCESSFUL AND UNSUCCESSFUL CANDIDATES

Letters are sent out informing the lucky person who got the job, and also to all the people who will have to try again.

The Miracle on the Han River

After the stalemate of the Korean War South Korea was a developing nation. It was on a par with the British Gold Coast (Ghana) and Malaya (which became Malaysia and Singapore).

However, something truly remarkable happened in South Korea. It has been called the Miracle on the Han River (the Han River runs through Seoul, South Korea's captial city) and has been used as a template for economic growth and development for a developing nation.

Seoul was a typical developing city. High unemployment and high poverty. However the US Government, determined to keep the South out of the hand of the Communist North, followed the template of the rebuilding of both Germany and Japan.

Rapid industrialisation began in the late 1950s and the aim was to become a massive exporter to the Western markets of goods such as electronics, ship building, textiles, cars, and steel.

Influenced by Reaganomics, the South Koreans also kept inflation low by reducing the money supply, but also embarked on many public works to rebuild infrastructure such as transport links and communication links.

A major announcement to the World that South Korea was a major player in the global economy was the succesfull 1988 Summer Olympics held in Seoul.

South Korea is often cited as an imitator of Japan, but with the US influence and the gradual move away from a Government controlled market to one that reflects consumer needs, the comparison is actually a natural one.

The benefits to the average South Korean has resulted in an incredible rise in the standard of living, and superior education to what was available in comparitor nations of the 1950s.

The Tiger Economies of Asia have attempted to copy South Korea and many have grown their own economies but none have had the impact on the ordinary people as the South Koreans have.

Malaysia has the aim of being developed by 2020, and the influence of South Korea is apparent. A move away from agriculture to manufacturing, and the building of public projects such as the KL monorail and the KLIA (Kuala Lumpur International Airport) in addition to hosting an Formula 1 race and the 1998 Commonwealth Games.

But as we have seen with India, the problem is that if a nation moves too quickly to the services sector they run the risk of having nothing unique. The same could be said of manufacturing, but as we all are aware, South Korea, Japan, and Taiwan have built their economies on cheap but good quality goods, relying on cheap labour, but also excellent quality control and standardisation where possible.

Singapore and Hong Kong are different in that they have built their prosperity on being financial hubs. But again they are relatively small city-states (well Hong Kong does have a unique status in China!) compared to the behemoths of India and China.

I think the Miracle of the Han River may be replicated in other nations but they do rely on the backing of a major importer like the United States and they need to create global brands that will attract consumers.

But there is no doubt that the 21st Century will belong to Asia and the Pacific.

India's Economic Growth

India is the World's largest democracy and has a staggering population of 1.1 billion, second only to China.

India has some 467 million workers who are divided into three main sectors:

Agriculture 52%
Manufacturing 14%
Service Sector 34%

India's current GDP is $3,548 trillion. The average wage for a worker is $3,100.

Inflation is at 9.8%. Unemployment is 9.5%.

However some 25% of people still live below the poverty line.

The main reasons given for the increase in India's economy of late is the amount of Foreign Investment. The service sector has expanded rapidly in the form of investment banks and the well documented relocation of many Western call centres.

How sustainable these markets are is open to debate, as China or another global workhorse could tempt many of these investors away from India.

However when looking more carefully at India's financial sector boom, Foreign capital accounts for only 5%! 70% of the money sitting in Indian banks comes from households and consumers. But again the long term effect could be disasterous. The Government-owned banks have not always invested wisely.

Life insurance, pensions and normal bank deposit savings are not giving the returns expected to keep financing health care, old folk care, and schools.

So if we look at India from an Educational point of view, it is really a tale of Private sector vs Public sector and how when it comes to Finance and investment, basing an economy on that sector is high risk. If shares and savings crash what are you left with?

Perhaps India has moved too quickly from agriculture (Primary Sector) to services (Tertiary sector) and not invested enough in manufacturing (Secondary sector).

India has not followed China, Japan or Korea in becoming a world name for manufacturing cars or electronics for example. Perhaps India's 21st Century will be characterised by new brand names emerging from Mumbai or Kolkata as global players.

Top 20 Car Manufacturer's in the World

Following on from the Toyota crisis and also my own personal interest in the Tata Motor Company of India, I have found the rankings of the top car manufacturer's at present.

1. Toyota Motor Corporation (Japan)

2. General Motors (USA)

3. Volkswagen (Germany)

4. Ford Motor Company (USA)

5. Honda Motor Company (Japan)

6. Nissan Motor Company (Japan)

7. Peugeot / Citroen (France)

8. Hyundai Motor Company (South Korea)

9. Suzuki Motor Corporation (Japan)

10. Fiat Motor Group (Italy)

11. Renault (France)

12. Daimler (Germany)

13. Chrysler Group (USA)

14. BMW (Germany)

15. Kia Motors (South Korea)

16. Mazda Motor Corporation (Japan)

17. Mitsubishi (Japan)

18. OAO (Russia)

19. Tata Motors Ltd (India)

20. First Automotive Group Corporation (China)


Notable absentee in the top 20 are Volvo (Sweden) at number 28, though it was bought by Ford and now sold again!

Japan is the dominant nation, just as it was in electronics with 6 out of the top 20.

Toyota - Product Recall Recent History

Toyota for many years has been a name synonymous with quality and perfection. Not for nothing is the Corolla the biggest selling car of all time.

However, Toyota's seemingly unblemished image is unravelling at speed.

Here is a history of product recalls over the past 3 years from the Japanese automobile giants.

September 2007, US: 55,000 Camry and Lexus cars in floormat recall

October 2009, US: 3.8m Toyota and Lexus vehicles recalled due to floormat problem

November 2009, US: floormat recall increased to 4.2m vehicles

January 2010, US: 2.3m Toyota vehicles recalled due to accelerator pedal problems (of those, 2.1m already involved in floormat recall)

January 2010, US: 1.1m Toyotas in floormat recall

February 2010, Europe: 1.8m Toyota's in pedal recall

February 2010, Japan, US: 200 reports of brake faults in new Prius. Cars recalled

February 2010, worldwide: 436,000 hybrid vehicles in brake recall. Also, 7,300 Camry vehicles recalled in the US over potential brake tube problems

February 2010, US: 8,000 Tacoma pick-up trucks recalled over concerns about defective shafts

With a dreadful start to 2010, perhaps this is Toyota's annus horibillis?

How can Toyota recover from such bad press and negative perceptions about reliability and quality, their biggest strengths when taking on the US giants of Chrysler, General Motors and Ford?

Perhaps the question should be how long will it take for them to recover. But in this global recession who knows?

In the News...

ANOTHER TOYOTA RECALL

Toyota is to recall 8,000 Tacoma pick-up trucks in the US, over fears about defective front drive shafts. The recall involves four-wheel drive Tacomas built from mid-December 2009 to early February 2010.

The move is the latest in a string of recalls in the past few months, totalling more than 8.5 million Toyota vehicles around the world. Previous recalls - including the flagship hybrid Prius - were due to accelerator and brake problems.

Toyota said it was voluntarily recalling "a small production run of certain 2010 model-year Tacoma 4WD trucks".

US RETAIL SALES UP

US retail sales rose more than expected in January, providing a boost to hopes for a strong economic recovery. Sales grew 0.5% month-on-month, while December's figure was revised to a 0.1% fall from a first estimate of a 0.3% fall, the Commerce Department said.

Compared with January last year, sales were up by 4.7%. But separately, a closely-watched survey suggests that confidence among US consumers remains fragile as concerns about unemployment remain.

Retail sales are followed particularly closely in the US, as consumer spending accounts for about 70% of overall US economic activity.

AC MILAN TIE UP EMIRATES DEAL

The Dubai-owned airline Emirates has announced a 60m-euro (£52m, $82m) sponsorship deal with AC Milan. The four-year deal, due to begin in July, will see Emirates become Serie A team AC Milan's shirt sponsor in place of the Austrian betting company BWin.

Emirates already sponsors several football teams including Paris Saint Germain, Hamburg and Arsenal. The airline has a pre-existing sponsorship deal with AC Milan that does not include shirt sponsorship.

Speaking to reporters on Friday, AC Milan's vice president Adriano Galliani said the £52m deal could eventually be worth even more to the club if results on the field go its way.

INDIA FACTORY OUTPUT RISING

India's industrial production has risen at its fastest pace in more than a decade, providing further evidence of the country's strong economic recovery.

Factory output rose by 16.8% in December compared with a year earlier, much faster than analysts had expected. Subdued growth last year as a result of the global economic downturn helped to boost this year's figure in comparison.

The strong growth will strengthen the case for the government to withdraw its stimulus measures, analysts said.

Source: BBC News

Office Sickie Day

Today is apparently the most common day for people to take an Office 'sickie', which costs UK firms millions of pounds a year.

You can watch a BBC video here:

http://news.bbc.co.uk/1/hi/business/8489763.stm