EADS Loses profits

Airbus’s parent company, EADS, has seen a shocking 39% fall in quarterly profits. Last year in January, the profits went as high as 170mn a year whereas this January, profits went down to 103m euros.

These figures included a 7mn profit for the Airbus commercial planemaking unit. One of the supposed reasons for the down turn in profits is due to the A380 superjumbo programme. The large airliner costs a lot to produce and maintain, and this is the problem EADS are currently facing. The reason for the cost of the plane is due to the excessive size of the aircraft.

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Election goes in conservative way

Ever since the elections, the conservatives were always essentially in the lead, even though initially the election was a hung government. Labour were second best, with Lib Dems in third and others last.

Due to the Lib Dem’s fifty one seats, the conservatives couldn’t win outright. In the end, Gordon Brown, the leader and up until the elections, the Prime Minister, resigned. This led to a coalition between the Conservatives and the Lib Dems. Many would argue that this country needs a stable government that can promise to deliver us out of the recession and improve the economy, whilst cutting as few budgets as possible.

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Nike park

Nike, he US worldwide known sportbrand is in plans to build a ‘Nike park’ in Tokyo. This has come under criticism though. Nike paid the local authorities of Shibuya, the area in which the park is to be built, 17mn yen a year for a decade, for naming rights.

The plan is to turn the current park, into a park for futsal, football, skateboarding and build rock climbing facilities. Although homeless people have been moved from the park, activists have stepped in to help prevent the Nike park from being developed. The activists see the park as a home for the homeless.

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Icleand volcano effects global travel..but not the weather

Although the Icelandic volcano Eyjafjallajokull’s eruption lasted a whole week, it hasn’t surprisingly affected the climate. The ash clouds as of a reaction of the eruption created havoc for air travel, preventing and delaying many holidays for millions of people worldwide.

The ash hasn’t had an effect on the climate though, which is a relief for many, as if volcanoes do usually affect the weather, they can affect it in a bad way, usually lasting weeks. Many flights have now resumed as the ash has gone, including the Europa Cup Final flights, in which Fulham FC and Athletico Madrid need flights.

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Volcanic ash has an effect on global travel

A recent volcanic eruption in Iceland has spread lots of ash into the sky, preventing a high level of travel in the air. It has also effected the revenue of global airlines. The total amount of money lost due to the ash clouds has believed to have reached £1.1bn.

The International Air Transport Association (IATA) has stated that at its peak, the crisis hit two thirds of the global flights. On average, IATA calculated that 1.2mn passengers a day were affected by the ash clouds, having to rebook holidays for a late date as travel wasn’t safe enough until it passed.

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Types of business

There are two different types of business in the market, the first being a ‘chain’ business, and the other a local business. A chain business is otherwise a public business (i.e. including supermarkets such as Tesco, Sainsbury’s etc), whereas a private business are otherwise known as private business’s (i.e. individual shops which don’t have a replica store found in the country).

Chain business’s are more successful due to the amount of stores the business owns, leading to higher successful finance and reputation, whereas a private business can achieve great financial and reputation in its local area, but not on a nationwide, global scale.

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Before starting a business..

When looking into setting up a business, one must set targets in order for that business to be successful. There are many targets, but the most important targets (primary targets) include: what business type you are setting up and the financial cost of that business, the assumed income, mass and monthly for the income, how the business will be promoted and of whom the business will be promoted to.

Only after considering these targets/options, can the lesser targets (secondary targets) be identified, and these include: location of business, name of business and size of business, as well as how the business is advertised.

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Cadbury’s takeover

Cadbury, the nationwide chocolate food chain, have been taken over by Kraft. Although this isn’t recent news, the fact that Kraft have transferred a factory from England, to Poland, is. Over 400 jobs have been lost due to the transfer of the Cadbury’s factory in Somderdale, and MP’s have slammed Kraft for this particular bit of business.

Kraft has gone against its treaty, which stated they couldn’t make people redundant for two years. The firm will still produce the poular chocolate franchise across the United Kingdom, although now one of the factories in the UK, will not, instead, being in Poland.

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What it takes for a business to be successful..

A business, to be successful, has to have the right amount, and correct type of advertising. The funding for the advertisement usually has a direct outcome on how the advertisement will come across to the general public. Advertisements can include: newspaper articles, billboard displays, posters, leaflets and most commonly, television adverts. Secondly, having the right amount of advertising is fundamental to a companies future.

One advert alone, over the course of the business’s life will usually not be enough for it to survive (this is because other companies with adverts, selling similar products may overrule the business). So by setting up several adverts over the course of five years can be very financially awarding, as well as earning higher reputation.

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Buying business

A business takeover is where a large, successful and largely financial business, looks to buy a business in recession, or in financial turmoil. There are several reasons as to why business’s are bought, including: the franchise the ‘in-trouble’ business sells is successful, there will be a much larger base for the successful business to operate and sell and most importantly, the reputation of that company will increase (due to the fact by buying a business, and its stores, they increase productivity for their selves.

Buying companies can be carried out Nationwide, or Global, but this would depend on the amount of finance/recognition that company has.

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