Business News

Bali’s Mt Agung eruption shows how businesses should and shouldn’t react

Tourism businesses should start by communicating precisely what they are going to do about the situation to the customer – quickly and clearly, to reduce uncertainty and avoid confusion. Russel PJ Kingshott, Senior Lecturer in Retailing, School of Marketing, Curtin Business School, Curtin University There’s nothing like an erupting volcano to reveal who does and doesn’t have their crisis management plans sorted out. Sudden uncontrollable events are an inevitable part of any tourism operation. Businesses worth their salt should at least in principle have the capacity to remedy situations that go wrong, as part of their modus operandi. Conventional marketing wisdom says that when organisations react properly to uncontrollable events, it has positive consequences for their overall relationship with their customers. But for this to be effective, those affected customers need to have a quick response from businesses or it could simply be counterproductive. The closure of Bali’s Ngurah Rai Airport left many passengers stranded. And while the volcano and its ash cloud are beyond airlines’ control, how they respond to the needs of stranded passengers is completely within their remit. How to prepare and handle uncontrollable events Tourism businesses should start by communicating precisely what they are going to do about the situation to the customer – quickly and clearly, to reduce uncertainty and avoid confusion. This needs to be backed up by tangible actions, namely doing the specific things promised and making amends with the customer. Fail to do this, and businesses run the risk of further negative consequences. Speaking from recent personal experience during a short vacation in Bali, Jetstar Australia quickly communicated that relief flights departing from the island would come into operation immediately (weather permitting). They also made it clear to any inbound Bali passengers that there would be no flights bringing them to the island unless longer-term weather conditions were deemed […]

The truth behind big bubbles and crashes

When Katherine Hunt’s dad asked her whether or not he should invest in Bitcoin, alarm bells rang, first she thought “he’s a musician”. Hunt is a lecturer in accounting at the Griffith Business School, and as someone who knows the five stages of a bubble and crash, she was worried when it seemed everyone was thinking they needed to “get in on” Bitcoin. “The stock market is a manifestation of the psychology of everyone who is investing, so of course there is going to be these crazy stages,” Hunt says. There is a boom, as momentum behind a new stock or asset speeds up and the media starts to cover it, fuelling its price rise. Then the euphoria sets in, the value of the asset skyrockets and people start to make a profit. But looming around the corner is the panic. Investors feel the last phase of a crash far more than they do the elation of the price rising, Hunt says. Panic breeds more panic and the price falls. Hunt is seeing this pattern play out with the stocks of the more well known gig economy businesses like Airbnb and Uber. These businesses now enjoy the privilege of being the only, or one of a few of their kind, in the marketplace. But Hunt says this can’t last. “In an open market that’s not the case at all, there’s always going to be competition and these companies will fall. It’s just probably that they’ll fall in 30 or 40 years, not necessarily tomorrow,” she says. Of course this is all easier to see in hindsight. Remembering the global financial crisis John Crosby, now a senior lecturer in finance at the University of Technology Sydney, was once working as an investment banker at Lloyds of London in 2007 when he […]

Media Kit updated

The Mirror Media Kit has recently been updated and is available for viewing at: https://issuu.com/kimalves/docs/mhb_17059_mirror_media_kit If you have inspiring stories, disruptive ideas, and ways of bringing about social change, let us know. publisher@xtra.co.nz

Why you should eat a plant-based diet

Katherine Livingstone Alfred Deakin Postdoctoral Research Fellow, Institute for Physical Activity and Nutrition (IPAN), School of Exercise and Nutrition Sciences, Deakin University. Plant-based diets are often shown to be good for health. Yet Australians eat a lot of meat and are sometimes reluctant to completely cut meat from their diet. So it’s important to know that eating a plant-based diet doesn’t have to mean becoming a vegetarian. Plant-based diets are high in vegetables, wholegrain bread and cereals, legumes and whole fruits, yet can still contain small amounts of lean meats and reduced-fat dairy products. A survey of Australians found most (70%) thought a plant-based diet would prevent disease. But what does the literature say? And is meat really bad for you? Health benefits of plants Plants are rich sources of many nutrients that are important for good health, including unsaturated fats, vitamins (such as folate), minerals (such as potassium), fibre and protein. Eating a plant-based diet has been linked to lower risk of obesity and many chronic diseases, such as heart disease, type 2 diabetes, inflammation and cancer. A recent study that followed more than 200,000 US adults for more than 20 years found that eating a diet high in plant foods and low in animal foods was associated with a 20% lower risk of diabetes compared with individuals eating a diet low in plant foods. Well known variations to plant-based diets include the Mediterranean diet and the Dietary Approaches to Stop Hypertension. These dietary approaches are known as dietary patterns as they focus on the overall diet rather than single foods. Rich in vegetables, fruits, legumes and reduced-fat dairy products, these dietary patterns have been linked to lower risk of obesity and chronic disease. Is the processing of plant foods important? Processing can remove many of the nutritious benefits of plant foods and can often result in the addition of salt and sugar. For example, whole foods, […]

4 ways Africa can achieve a manufacturing renaissance

Manufacturing production in Africa more than doubled over the past decade. For the 50th anniversary of the creation of the Organisation of African Unity (now the African Union), African leaders adopted the Agenda 2063: The Africa We Want– a vision for a prosperous Africa based on inclusive growth and sustainable development. One of the defining features of this agenda is the structural transformation of African economies towards achieving shared growth, decent jobs and economic opportunities for all. So far, the structural transformation that shifts productive resources from agriculture and mining to manufacturing – which has helped many countries achieve greater prosperity – has bypassed most African countries. According to a recent International Monetary Fund report, the limited structural transformation in Africa has not translated into more jobs, because the manufacturing sector itself requires extensive reform. Therefore, what Africa needs is a manufacturing renaissance, with more local value-addition that would create more and better-paid jobs, and contribute to fulfilling the aspirations of the Agenda 2063. It could make African countries become more resilient to economic shocks and less dependent on natural resource exports. Africa can achieve this ambitious goal if it taps into available opportunities, while mitigating the challenges it faces. There are already several positive signs. Overseas Development Institute datashow that African manufacturing production, exports and Foreign Direct Investment (FDI) have developed positively over the last decade. Between 2005 and 2014, manufacturing production within Africa more than doubled from $73 billion to $157 billion, growing 3.5% annually in real terms. Some countries, such as Uganda, Tanzania and Zambia, have achieved more than 5% annual growth in the recent past. Overall, sub-Saharan African manufacturing exports almost tripled between 2005 and 2015 to more than $140 billion. A reduced reliance on the traditional OECD market is also clearly visible, with China and […]

This is how a universal basic income can end financial exclusion

A customer withdraws money from a Bank of Baroda automated teller machine (ATM) in Mumbai, India The main argument for a universal basic income (UBI) is that it would reduce poverty and income inequality. Yet UBI advocates often overlook a range of other potential benefits. Digital UBI payments can bring people into the financial system and build their financial capability, unlocking a range of development benefits for citizens and governments alike. Take Mongolia for example. In 2014, 92 percent of adults had a bank account—by far the highest share in the developing world. (By comparison, only 43 percent of adults are banked in similar lower-middle income countries.) Young adults, a population often financially disenfranchised, see some of the most impressive usage of financial services; account ownership among Mongolians aged 15-24 years old is 93 percent. Smart policies, digital payments, and greater inclusion of traditionally marginalised groups all helped Mongolia achieve nearly universal account ownership. The Mongolian Human Development Fund (HDF) distributes revenues from the mineral and mining sectors with the objective of redistributing wealth. A flagship program funded by the HDF is the Child Money Program (CMP), launched in 2012. As part of CMP, the government makes monthly electronic deposits into savings accounts opened in children’s names, helping to ensure that all Mongolians will eventually be banked. The program pays about $10 a month to all children aged 0 to 17, thus ensuring that the parents of every newborn open an account in their child’s name. Alongside South Africa, Mongolia has one of the developing world’s largest shares of adults receiving government transfers—35 percent—with two-thirds of these payments made directly into bank accounts. Seventy percent of account owners in Mongolia make or receive any payment through their account, while in East Asia and the Pacific as a whole the share is 50 percent. These accounts […]

Oslo just decided to get rid of its parking spaces

Oslo had hoped to be the first major European city to ban cars, but a furious backlash forced the council to think again. In October 2015, a progressive political alliance gained control of Oslo’s city council and announced its aim to make it a greener capital. The Guardian reports that it committed to slashing greenhouse gas emissions to 95% of 1990 levels by 2030. Transport accounts for 61% of the city’s CO2 emissions, making it the obvious place to start. The council notes: “The transport sectors will require the most determined efforts moving forward.” The Norwegian capital already has the world’s highest proportion of electric vehicles, and runs one third of its bus fleet on biogas and biodiesel. So the city looked to private cars, which produce almost 40% of Oslo’s transport emissions. Initially it proposed a car-free zone: a 1.7km sq area in the centre of the city. The vast majority of the 1,000 residents in this area – almost 90% – do not own a car. Just 7% commute by car, compared with 64% who travel to work on public transport, 22% on foot and 7% by bike. Oslo’s proposed car-free zone Residents, however, felt bullied while businesses feared the plans would create a “dead town”. Beathe Radby Schieldrop, communications manager for the city’s trade association, the Oslo Handelsstands Forening (OHF), told the Guardian: “It’s too much and too soon. Shop owners and visitors need time to adapt.” The council took note and has settled instead on getting rid of all of the 650 on-street parking spaces in the centre. It will then extend pedestrian networks, close several streets to private traffic, and build 40 miles of bike lanes. The council has not completely abandoned the idea of banning cars. The plan is to see if the removal of parking and restrictions […]

What China’s soccer spending teaches us about globalisation

On 4 June 2002, the national football team of the People’s Republic of China took to the field for its first ever match in the FIFA World Cup. For the few thousand Chinese fans in the stadium, and the 500 million or so watching at home, the fact the team had made it there at all was considered the greatest accomplishment in China’s football history. ‘The Great Wall’ would go one step further if they were able to score a goal during the tournament. They didn’t. Playing against Costa Rica, Brazil (the eventual tournament winners) and Turkey, China finished bottom of their group and conceded nine goals. They haven’t been back to a World Cup since. Failing to qualify in 2006, 2010 and 2014, the team could still make it to Russia in 2018 – but even if they don’t, there’s still plenty of time for China to realise its ambition of winning a World Cup by 2050. If they were to achieve that lofty goal – some cynical followers of the England national team might even bet on China lifting the trophy before the Three Lions do so again – they would very likely be thanking their current President, Xi Jinping. A professed football lover, President Xi wants the country to become a global leader in world football, and has pledged the money to make it happen. This includes setting up soccer academies, hiring coaches from abroad, and even offering citizenship to foreign players. But Chinese football fans might also be thanking globalisation. Globalisation, the process by which markets, people, goods and culture become more integrated, is already exemplified in European football. The Dubai-based airline Emirates sponsors some of history’s most decorated teams, including in England, Spain and France. More than 20% of Premier League teams are run by American owners, and over […]

Australia can’t lose in the global race for cheaper, cleaner energy

Paul Graham, Chief economist, CSIRO energy, CSIRO. Despite our sometimes heated national debate about our energy future, Australia is well positioned to benefit from innovative low emission technologies. No matter which avenue we take to cleaner energy, our energy-rich resources means there are opportunities for Australian businesses – and cheaper energy for Australian consumers. That’s the conclusion reached by CSIRO in our Low Emissions Technology Roadmap, which outlines potential pathways for the energy sector to contribute to Australia’s emissions reduction target. Our target under the Paris climate agreement calls for a 26-28% reduction of emissions by 2030 from 2005 levels. Our analysis also considers how the energy sector could meet the more ambitious aspiration of avoiding 1.5-2℃ global warming. Looking past the political wrangling Perhaps one of the reasons the energy debate in Australia is so vehement is that, with the exception of oil, we are rich in energy resources. While we cannot wait indefinitely, the lack of resource constraints means we can monitor and test what options emerge as the most cost effective. Technology neutrality is often called upon as a key policy design principle. Another reason for caution is that technological change is inherently unpredictable. For example, at the start of this century, few would have expected solar photovoltaics to be one of the lowest cost sources of electricity. Current expectations of sourcing cost-effective bulk electricity storage would have seemed even less likely at the time. However, there are two key choices that will determine how we reduce greenhouse gases, and the shape of our energy future. First, we must decide how much weight we give to improving energy productivity, versus decarbonising our energy supply. This is essentially a policy decision: should we use our existing energy more intelligently and efficiently in our buildings, industries and transport, or […]

IoT start up set to benefit farmers

A BloomSky weather station on display at the Farming2020 event in South Waikato. Fonterra farmers will come together to trial innovative technology that will allow them to take insights from the weather and bring greater precision to New Zealand dairy farms. Fonterra is playing its part in fuelling the revolution of on-farm weather forecasting by working with MetService and BloomSky – a smart weather camera station that delivers hyperlocal weather information in real-time to any laptop, tablet or smartphone. More than 70 BloomSky weather stations will be installed by farmers across the country in the coming months. MetService will use observations from the devices to provide forecasting and greater seasonal insights through data analytics to all users of Agrigate – the online dashboard developed by Fonterra Farm Source and LIC to give farmers the data they need to make faster and smarter decisions. Fonterra farmer Kevin Argyle is trialling the solar-powered ‘SKY2’ device as well as the wireless add-on called ‘Storm’, and has seen first-hand how the BloomSky system measures temperature, humidity, rainfall, wind speed, wind direction, UV and barometric pressure to give him a detailed view of his farm’s climate. “It really personalises it and enables us to make optimal on-farm decisions,” says Argyle. “People often underestimate the variability within relatively small geographical areas. The other day we had 29 millimetres of rain and a few kilometres down the road they had five. That’s a big difference when you’re thinking about the best time to cultivate a paddock or move stock. “Weather is one of the more significant risks that impacts a farming operation so to have a real-time app that provides insights in terms of what has happened, what the current weather is and what it’s forecast to be for your property has huge potential value.” BloomSky, which […]

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