Tuesday, October 11, 2011

Australia Post upgrades its parcel operation

TheAustralian.com.au
11/10/2011

In Commerce we have learnt that online shopping is becoming increasingly popular due to its convenience and the strong Australian dollar, which means that overseas items will be cheaper to the Australian consumer. As a result, Australia Post will be upgrading its delivery service to cope with the new influx of deliveries by opening 24 hour parcel collection and flat rate delivery for domestic shipping.

With the recent surge in email usage there are increasingly less letters sent across Australia, but according to Australia Post 'E-commerce is the new core of our business', as parcel deliveries increased by 10.9% over 2011, and a massive 57% in increase in parcels sent from overseas. This is due to the increasing demand of websites such as eBay and Amazon.

This new venture by Australia Post would be of more value to the customer and increase the amount of jobs, as it adds more services and therefore convenience to the public.

This change therefore reflects the changing times of Australia as it continues to look abroad, but also to the internet as an increasing destination for their shopping and their needs.

Australian Court Overturns Gillard Plan to send refugees to Malaysia

Bloomberg.com
31/8/2011

This article is stating at how the Malaysia deal was overturned by the High Court of Australia as it does not meet the criteria for dealing with refugees, as Australia is part of the UNHCR, and also from public backfire under this plan for the same reasons. At the time of the overturning of the Malaysia deal Gillard's approval rating was 33% and she was the most unpopular Labor leader of all time due to this asylum seeker deal and the carbon tax.

In Commerce we have learnt that laws reflect change in society- this reflects the change of the Labor Party's current popularity and how serious Australia is in its protection of asylum seeker policy, or possibly how desperate Australia is to get into the UN Security Council from this ruling. Through this it also shows the Australian people and their dislike for this Malaysia deal as it does not give protection from asylum seekers, who are attempting to get into Australia for its good human rights record and protection.

It also shows the power that the Australian High Court has over the Government to keep it in check and to only let through policy that is constitutional.

Monday, October 10, 2011

Reflection on Assessment Task No 4

Mark awarded: N/A, not received yet

I believed I did a good job in editing the video and organising times where our group was able to record the video, and also writing the script- it was difficult finding case studies for Unfair Dismissal and also attempting to find ones without swearing- in the end I couldn't so I had to make do with what I had.

In initial filming the film audio was hampered by background noise, this was a weakness as I was not able to hear this noise and I ended up having to film it again the night before this was handed in.

As this assessment task was not handed back yet I cannot comment on the areas I need to improve on but possibly organising my group to do more work as I seemed to be doing most of it.

Comments: I would have preferred the assessment task to have a longer duration of video but looking at the other assessment tasks this comment may not be true of the other workplace scenarios.

Reflection on Stock Market Game Assessment

Mark awarded: 15/20
Strengths: I believe I adhered to the word count well and still was able to write about my strengths and weaknesses I showed in the stock market game. I think I also wrote a good reflection while adhering to the word count which was very restrictive of the level of detail that I was able to write.

Weaknesses: I did not think that I wrote a very good spreadsheet and more research is needed before I do another one.

Areas to improve: Most probably the spreadsheets as it brought my mark down from a possible Excellent category.

Information learnt: It is very hard to write such an assessment task within 500 words as I could have been able to elaborate about many of the shares but I could not because of the word count.

My only comment is that in the future make the word count at least +-1000 words as I could have easily written that much as well and I had to stick to making one sentence answers to why I bought my shares and also possibly one statement for the reflection on how each of my stocks went.

Marketing Plan- Reflection

Mark awarded: 21/30

Strengths I believe I demonstrated in doing this task:
I believe I wrote a good Marketing Objectives and Goals area as the goals were realistic and also logical to what I believed would happen in the future if another Cafe was to be set up in the Oxford St area. I also believe that I made a good analysis of the surrounding competition and their strengths and weaknesses despite not having visited any of the precincts that I had described as competitors, and only using online reviews as my source of information. Since I am not a coffee drinker I probably did not do as well as others for the Target Market area of the assignment but I think I was able to target a realistic demographic for the coffee shop. I also think that I set this report out logically, which was a comment written by the marker.

Weaknesses I believe I demonstrated in doing this task:
I think that I could have written more under marketing strategies (especially under Place and Promotion) but that was hampered by the word count in which I had to summarise in some areas as I had previously written too much. I could also have written a shorter Executive summary as there was a comment stating that it was too long and some parts were irrelevant. I also think that I could have written a more detailed SWOT analysis but I could not think of too many relevant points.

In this assessment task I could have improved my SWOT analysis and marketing strategies as those are the main areas of my assignment that hampered me from achieving a higher mark. I also could have written a shorter Executive Summary as that could have helped me with the word count and therefore given more words to write in separate areas of the assignment.

I learnt that this particular marker (who is not from Arden) is probably marking this assignment at a much higher level than what we are used to and it is good preparation for the future if I decide to do any more marketing plans for my studies in Year 11 and 12. I also learnt that the SWOT analysis and Marketing Strategies are pivotal areas of a Business plan and I needed to include more detail in those areas.

No other comments, but however some practice in writing a Business Plan prior to doing this assessment could be good.

Sunday, October 9, 2011

Dollar jumps in relief rally

SMH.com.au
9/10/2011

As the Eurozone attempted to reach an agreement over their debt crisis the Australian dollar was affected as it rose to nearly 98 US cents, up from 96.56 cents on Thursday. The Australian dollar is influenced by global economic news which makes the dollar rise and fall depending on other currencies around the globe, and the influence that those economies have on Australia's- mostly the European and US economies and markets.

As the dollar had appreciated (then depreciated) against the US dollar in recent times it has pushed up the price of imports as the United States is one of Australia's largest trading partners and they are not as willing to import here as it would cost more for the business and supplier. As the Australian dollar had also risen against other currencies it also would affect trading in their countries, meaning that it would cost less for buyers in Australia, therefore more overseas.

Meanwhile the current depreciation of the Australian dollar against the US dollar has pushed it below parity meaning that Australian products are more profitable for overseas buyers, but overseas products are more expensive for Australian consumers. The rise of the US dollar is now better for investors as it is mainly a stable currency against Australia's, except for the recent GFC which meant that Australia was better off against America which was reflected in the currency exchange rate.

Sunday, October 2, 2011

Shares pile on 90 bn in 3 days

SMH.com.au
8/10/2011

In Commerce we have learnt that because of the many foreign investments in Australia we are highly affected by overseas financial news. In this case the ASX had jumped $90 billion in 3 days as Australian investors were more confident over the European debt crisis- the European Central Bank decided to keep interest rates steady despite fears of recessions in countries using the Euro, and as a result had decided to construct re-financing operations. The renewed confidence means that investors, governments and consumers are more ready to invest amd buy products in companies which pushes the share price up, indicating more confidence which drives this cycle.

Because of this renewed confidence shares in the US went up, as did Australia's, recovering from the recent downturn in share prices. This follows the pattern of the business cycle in the short team- shares fall but usually they expand again over time.

However this pattern is not to continue for long due to the general uncertainty in Europe over their debt crisis and the natural cycle of the business cycle- the economy (and other economies) will eventually slow down and contract.

Saturday, October 1, 2011

RBA tipped to stay on hold until 2013

SMH.com.au
30/9/2011

The Reserve Bank of Australia is to keep interest rates on hold for another policy meeting and a Reuters poll shows that interest rates may follow a trend of staying steady next year as well.

In Commerce we have learnt that the business cycle is affected by rising and falling interest rates- in booms there is a lot of spending that pushes inflation and interest rates up. There are other features of a boom such as high income and production, high employment levels and high salaries. Meanwhile in a recession there is little spending that pushes interest rates down- there is low income, unemployment is high as there is not enough money to sustain it, and therefore business demands are low.
In this case as Australia is not in either category the Reserve Bank has decided to keep interest rates on hold after it had risen significantly as Australia seemed to be recovering from the Global Financial Crisis.

Australia is a mixed economy which means that consumers and producers in Australia have power to decide what Australia produces, but there is also government involvement, in which the government through the form of the RBA regulates the economy- in this case, keeping interest rates on hold.

Friday, September 30, 2011

Latest Qantas strike hits 8500 passengers

SMH.com.au
30/9/2011


Qantas employees have begun a one hour strike today at 8am on the 30th of September. As a result 2 flights were cancelled and 33 were rescheduled or delayed. This followed a strike by the Transport Workers Union on September 20 and yesterday Customs and Quarantine staff stopped work for separate pay problems. Meanwhile today Qantas baggage handlers and ground staff were protesting over ongoing pay and conditions.

Trade Unions are the result of people in the same area of work coming together to bargain for more strength of improved pay and conditions. They generally aim to protect the interests of union members by negotiating higher pay rates, improve the working conditions of members and promote quality of life issues. When strike action occurs, it stops or slows the flow of profit that the company receives, and in the case of Qantas, it inconveniences the public as well, which may influence the public's decision in which airline carrier they decide to fly in the future. Here in Qantas they are attempting to exercise their right as part of the Trade Union to attempt to stop work and force Qantas to consider their case for better pay and conditions.


Thursday, September 29, 2011

Australian bonds follow US Treasuries higher

SMH.com.au
29/9/2011

Investors in Australia have chosen to go with more secure sources of investment by going with government bonds, and have followed suit with the US Treasuries, after a 10 year bond futures contract was trading at 95.750, while on Wednesday it was trading at 95.690, with a yield of 4.25%.

This is due to the ongoing uncertainty over Greece's debt crisis and the measures the G20 and the Eurozone are going to initiate to solve this problem.

In Commerce we have learnt that Government bonds hold less risk, but also less return. People that purchase these bonds generally prefer the security of these bonds, and therefore are prepared to take less risk. In these current times of economic uncertainty it is therefore a good time to hold these types of investments as stocks are likely to fall, or be very uncertain for an extended period of time. These types of assets are called Income or defensive assets. This is a particular area in most investment portfolios, which can also consist of investment accounts, shares, property, managed funds and superannuation.

Wednesday, September 28, 2011

Newspaper Article on Great Depression

In America during the Great Depression of the 1930's, living conditions for most Americans were very poor. At the beginning of the Depression in 1929, the employees of companies were the first to go. This meant that there was less money being spent on goods and services, which meant that more people became unemployed, and at the height of the depression 25% of Americans were unemployed. This cycle ensured that spending fell from $79 billion to $46 billion between 1929 and 1933.

This meant that businesses by the thousands were becoming bankrupt, unemployment was rife, and savings were wiped as banks went bankrupt. This meant that no money was now within the reach of people who needed to repay their mortgage, and therefore were evicted from their homes.

In America there were two main areas where people resided- in farms or in cities. As the Depression worsened farmers had to leave their livelihoods and properties after becoming bankrupt, and this was not helped by American Dust Bowl that was caused by severe drought that destroyed many farmer's crops from 1930 to 1936. Meanwhile in cities there were many 'food lines' which consisted of people lining up for soup or bread, as people did not have enough money to buy necessities. However these lines were usually a place of shame for the people, as it meant that they did not have enough money to care for themselves or their families.

President Hoover supported volunteer groups and charity and many groups heightened morale, but this effort was short lived as it relied on public support, which did not have enough money.
People that still had a place to live were most likely to have to offer their place to a friend or to extended family, and with the usually uncomfortable living conditions that had few furnishings and little hot water they soon became crowded.

For those who were evicted out onto the streets, shanty towns (named Hoovervilles, after President Hoover which was blamed for the Depression) were set up outside major cities that consisted of wood and cardboard boxes. Homeless men slept on park benches with newspapers as blankets, and as a substitute for meat gophers and rabbits were caught and then roasted on a fire.

Hoovervilles were usually constructed with material found in garbage dumps and construction sites, and were built next to rivers. Due to the high turnover in these homes, homes could be sold, and the top market price was usually $50. In some cities land was set aside for these Hoovervilles, but sometimes police and other intolerant groups would come and destroy these shanty towns.

By the year of 1933 many Americans were out of work. This meant a lot of pressure on the breadwinner of the family, and they also felt a lot of pain as he couldn't provide for the family. This would cause men to abandon their families and 'wander' America, looking for food, begging and looking for work- however usually hundreds of men would look for one place of employment, meaning that there was even more pressure.

These bread lines would often form as early as 4am on winter mornings as men prepared to have their soup. In 1931 there were 82 bread lines in New York, serving 85 000 meals daily.
In the bread lines they were served different things, depending on the demand of the food. There was usually stale bread and soup (that was watery, lukewarm, and with the odd vegetable). After a few minutes an authority figure would ask them to leave to make room for the people still waiting, and then the men would go into another food line to wait for another meal.

These poor living and surviving conditions were suffered by the people of America during the Great Depression, until it lifted in the middle of the 1930's.

BHP reveals WA Ambitions

SMH.com.au
28/9/2011

BHP has said that its growth ambitions are bigger than its main rival Rio Tinto. As both companies are doing battle in the current Australian mining boom, they are aiming to sell more iron ore to growing countries such as India and China, who are currently leading steel production growth.

This would mean that BHP would now have a consistent higher share price, possibly coming close or catching up to Rio Tinto as they attempt to grow their business at Pilbara by growing it to obtain 240 million tonnes annually, and an overall target of 350 million tonnes a year.

This growth would mean more money into the Australian economy because of the amount of exports BHP are producing to China and India, and this would mean more economic stability for Australia's economy as it prepares for another recession due to the European debt crisis, and also because mining accounts for over 5% of Australia's Gross Domestic Product.