Category: Businesses


Fifty years ago the first plastic wrapped sandwich loaf was created in Chorleywood. Since then it has spread across the world; David Sillito is now asking if this was a design classic or a crime against bread.gn classic or a crime against bread, asks David Sillito.

It is estimated that more than 80% of all loaves in Britain are now made the Chorleywood way. The work of the scientists at the Chorleywood Flour Milling and Bakery Research Association laboratories in 1961 led to a new way of producing bread, making the average loaf in Britain 40% softer, reducing its cost and more than doubling its life. The bread scientist, Stan Cauvain, who worked with the original inventors and has written the definitive work on the Chorleywood Process says they knew from the beginning they had changed baking forever.

Its origins lay in the late 1950s and the need to try to find a way for small bakers to compete with new industrial bakeries. The light brown “national loaf” during the long years of rationing had, for many consumers, outstayed its welcome. Soft, springy, white bread – that did not go stale quickly – was what the public wanted.

Already, thanks to the Chorleywood process, nearly half the wheat in our bread is British. The industry’s current development programme could bring about a situation where British bread is made from an even higher proportion of British wheat – thus making the British loaf even better value for money in relation to world bread prices.

The research bakers at Chorleywood discovered that by adding hard fats, extra yeast and a number of chemicals and then mixing at high speed you got a dough that was ready to bake in a fraction of the time it normally took. It allowed bread to be made easily and economically with low protein British wheat.
But with industrial bakers quickly adopting the process, rather than helping small bakeries, the research at Chorleywood helped put thousands of them out of business. For some bread lovers, particularly the “artisan bread movement” anything Chorleywood is simply not real bread. “This stuff is like cotton wool,” says Paul Barker, who himself used to work as an industrial baker and sold the emulsifiers, enzymes and other chemicals used in modern baking.

The classic white loaf – how it is made and what people think of it

The issue he says is about both taste and digestion. “Modern bread doesn’t taste of bread,” he says. “If it’s not allowed to rise and prove naturally then it doesn’t develop the proper taste.” There is also the matter of health. The Chorleywood loaf has twice the amount of yeast of a traditional loaf, it has enzymes and oxidants added and while certain chemical additives such as potassium bromate have been banned, Paul Barker and other bread campaigners believe it is behind the growth in the number of people who struggle to digest bread.

“Every day I have people who say they have given up eating bread and then find they don’t have a problem with bread that’s been allowed to develop slowly. My sourdough takes more than 70 hours to make.” Proving this, however, is another matter. Prof John Warner at Imperial College in London says there has been a marked increase in allergies and intolerance of wheat and bread over the last 50 years, just as there has been an increase in allergies to dust, nuts and dozens of other items.

  • 1928: First bread slicing machine, invented by Otto Rohwedder, exhibited at a bakery trade fair in the US
  • 1930: Large UK bakeries take commercial slicers and sliced bread first appears in shops
  • 1933: Around 80% of US bread is pre-sliced and wrapped. The phrase “the best thing since sliced bread” coined
  • 1941: Calcium added to UK flour to prevent rickets
  • 1942: The national loaf – much like today’s brown loaf – introduced to combat shortage of white flour
  • 1954: Conditions in bakeries regulated by the Night Baking Act
  • 1956: National loaf abolished
  • 1961: The Chorleywood Bread Process introduced
  • However, three-quarters of people who believe they have an allergy or medical intolerance to bread show no signs of any symptoms in blind testing. He, himself, though is wary of what sort of bread he eats. “We have several pounds of bacteria in our guts and there have been marked changes in this gut flora in affluent societies over the last 50 years.” While producers are not obliged to say what enzymes are added to the bread, Polson says there is no evidence that it is any harder to digest. “There are some additional additives to give it a bit more shelf life, a bit of extra softness – but all it’s doing is augmenting what is happening in the natural process.” So, the Chorleywood process has its critics but its success with consumers is undeniable. Even in France some stick loaves are now made the Chorleywood way, although not the classic “baguette”.

    The process is now used in more than 30 countries with Colombia and Ecuador taking it on in the last few years. Britain’s white bread market is worth about £1bn a year, and most of that is Chorleywood bread. It’s cheap, filling, soft, long-lasting and, because it can turn low-protein British wheat in to palatable bread, a boon to British farmers. While it’s considered by researchers at the food technology research institute in Chipping Campden to be a marvel of food engineering – the public does not seem to value it too highly.

    Almost a third of the bread bought in Britain – 680,000 tonnes a year – is thrown away.

This week chocolate maker Cadbury made the headline when they had to apologise to supermodel Naomi Campbell after one of its adverts “caused upset” to the supermodel. The advert that “upset” Campbell was part of a print campaign for Dairy Milk Bliss which featured the tagline “Move over Naomi, there’s a new diva in town”, next to a bar of chocolate standing in a pile of diamonds.

The company released the apology on their website when Campbell suggested that she may sue Cadbury. They said that they were “sincerely sorry” and that it was not their intention to cause offence to “Naomi, her family or anybody else.” Cadbury have also confirmed the advert had been withdrawn and the model’s solicitors had accepted the apology on her behalf.

Campbell told campaign group Operation Black Vote she was “pleased” with the public apology. She is quoted as saying: “The advertisement was in poor taste on a number of levels. It is also a shame that it took so long for Cadbury to offer this apology.”She continued: “I hope they and other multinationals can learn from this… Better still they should avoid causing offence in the first place, which is best achieved by having greater diversity at board and senior management level.”

The Advertising Standards Authority says it has received four complaints about the adverts and is in the early stages of deciding whether to launch a formal investigations. To be honest this all seems a little bit insane, the advert was merely a light hearted way to promote a new chocolate bar why it is being made into a big scandal I don’t know.

I have recently started a course with the Open University called, You and your money: personal finance in context (DB123). I started doing this course because I want more control over my money and wanted more knowledge about the various options, in simple terms from an impartial source. I can’t be the only one who doesn’t really understand all the financial jargon, and this was confirmed when some of the news headlines reveal that the younger generations don’t really have a clue when it comes to finances.

It would seem that now it is more important than ever due to the current economic climate. Also understanding finance and how to make the most of your money could potentially help you get out of debt….assuming that you have any. It can also help you save for both a rainy day and for when you retire.

Recently I took over the job of email marketing in addition to my other responsibilities. At first I thought that it would be a breeze until I got the email with all the information needed…boy was I wrong. There was so much information that I didn’t know where to start. Eventually I got the idea after going over and over it with a little bit of help from my partner.

It seems that everyone has the need to be thorough but is there anyway we can be thorough but keep simple? Before anyone suggests that cheesy advert from Bing.com; that’s not helpful. The trick is to break it down into smaller chunks, which makes it a whole lot easier but don’t forget to read the whole thing first.

Issues about structure are recurring matters of debate and dispute in most businesses. This is because they include matters relating to departmental and sectional groups, the pattern of reporting relationships, the cycle of meetings, information systems, and rules and procedures. A business might be structured in various ways: by function, by product, by service or by geography.

As is the case with most aspects of business, it is unlikely that there is any one ‘best’ model for structure. You would not expect businesses with a professional orientation, such as a legal or medical practice, or a not-for-profit business such as a church or theatre company with a strong values base, to have the same business or management structure as a supermarket or high street bank. The structure of a co-operative would enable the broad-based participation and involvement of its members, while a legal practice would need a more collectivist or collegiate structure. The challenge facing all types of businesses is to develop a structure that recognises what is required while still achieving an efficient use of resources and providing effective services to customers.

Whatever the business, however, structure is pivotal in the relationship between task (what the business does) and process (how the business does it). It is through the medium of its structure that the values, commitments, purposes and aspirations of the business are implemented. Structure has to translate values and processes into a practical, working reality – and to do this while delivering profit to its owners and value to its customers. Functional structures might work best when departments need regular communication with each other. However, a disadvantage may be that functions and the people who work in them may become rather insular.

Structuring by product or service can help to achieve better responsiveness to customer needs, although it might mean professional or functional expertise becomes fragmented. A geographic structure has advantages for a large international business because there are likely to be differences between the markets it serves. There are also likely to be language and cultural differences. However, structuring by location may be problematic in terms of communication and information flows, and support functions such as finance and ICT may have to be duplicated.

SWOT
• STRENGTHS
• WEAKNESSES
• OPPORTUNITIES
• THREATS
Analysing these gives businesses an overview of their position in relation to their external environment. The strengths and weaknesses of a business arise from its internal environment; that is, resources and their use, structure, culture and the different business functions. Which strengths a business decides to build upon and which it seeks to minimise depends on the impact of opportunities and threats from the external environment. Once the external influences on a business have been identified, they can then be judged to be either a threat or an opportunity and can be dealt with, or taken advantage of, as appropriate.

One method of undertaking a SWOT analysis is to consider strengths, weaknesses opportunities and threats in relation to four key business functions: marketing, operations, human resources and finance.

It is very easy to take a basic view of the relationship between business and society. On one hand, some people argue that the aim of business is to do good in the world. On the other hand, some economists claim that the business of business is simply to make profits and it’s not for business managers to make judgements about the needs of society, that is the concern of others, such as politicians. Like most simplified views, these are probably both wrong, or at least overstated. The reality is that society and business depend on each other – businesses are part of society and vice versa – and, like all forms of interdependence, this provides benefits, but also imposes obligations on both parties.

The role of business is largely economic. Unless a business performs its economic functions it will not have the resources to perform other roles, nor will it survive long enough to be an agent for any form of change. Businesses live to produce goods and provide services that society wants and needs, at a profit, and they can’t take on additional responsibilities unless they perform these tasks successfully. At the same time, business depends for its survival and long-term prosperity on society providing the resources – people, raw materials, services and infrastructure – which it needs to operate profitably. Society provides other, less corporeal, inputs to business. Which include a means of exchange (money); a legal system that is effectively policed and enforced; defence and trade arrangements.

These, in turn, depend on the members of the society supporting the values and norms that the business endorses. There is an unspoken contract between businesses and the communities in which they operate. A business is expected to create wealth, supply markets, generate employment, innovate and contribute to the maintenance of the community in which it is situated. Businesses, including their shareholders and other stakeholders, depend on the communities in which they operate for their existence and prosperity. The fundamental role of business is to provide the means by which the needs of the community are met, in the form of goods and services, jobs and income from taxes paid by the companies and their employees. The infrastructure on which industry depends requires long-term commitments (hospitals, schools and so on), and communities expect that businesses will match this with long-term investments. Business is also required to act legally and responsibly with respect to health and safety at work, employment conditions and environmental issues.

How do businesses in practice reconcile the demand for greater profit, lower costs, or ‘more for less’, with the interests of society to secure employment, protection of the environment and tax income? The degree of conflict between maximising profit and serving the interests of the community will depend on the type of business and its relationship with the community. If it is a major employer in the area, or a major customer of local suppliers, then its actions are going to have a substantial impact on the community. The community is a major stakeholder, and there are correspondingly serious obligations on the business to consider the interests and views of the local community when making decisions. This is likely to be in its interests because it will probably depend on local support for business plans. However, increasing globalisation can weaken a business’s ties with its local community. Its headquarters may be in one country, its plant managers from another, its suppliers from yet another, and its profits accounted for in whichever country it is most tax efficient to do so.

It is important that there is communication between the business and its stakeholders. This can be at both the formal and the informal level. Many businesses, for example, encourage their employees to participate in local activities. Typically, companies are good at communicating when they want something, such as planning permission, but allow communication links to lapse when there are no pressing needs.
Many decisions that may seem quite trivial to a business may be of great importance to the local community. An example would be the routeing of delivery trucks. Unnecessary bad feeling can be avoided if the community’s interests are taken into account.

Environmental issues often create tension. Businesses may seek to operate to the lowest legally permissible standards, and may thereby create distrust and suspicion among local residents. On the other hand, local opposition may be voiced through pressure groups that are overtly anti-industry and whose arguments are therefore instinctively rejected by companies, even when they express valid concerns.

The definition of a stakeholder is people or groups who have legitimate interest in activities of businesses and other organisations in their society.
The stakeholder concept is important for 2 main reasons. Firstly it emphasises the fact that stakeholder groups have differing interests. Secondly it highlights the relationship between businesses and their external environment.
There are 4 points that also need to be kept in mind when thinking about stakeholders:

• All businesses have internal stakeholders. They also have external stakeholders these are usually either strongly linked or affected by the business.
• A pretty obvious fact considering that stakeholders are human beings is that they can have differing interests which may conflict
• Culture, structure and control systems within a business will determine how conflicts, or trade-offs, are resolved, and in practice the interests of one stakeholder group often have a dominant position.
• Some stakeholder interests are protected by law, but not all. The interests of other stakeholders are protected, if at all, only by regulation or management discretion whereas owners and shareholders are protected by property and company law.
All businesses have difficulty balancing the interests of their different stakeholders, mainly when the political reality is that different groups have varying amounts of power. Such as:

• Commercial businesses have structures that recognise the dominance of shareholders. However, the legislative and regulatory environment, over, for example CO2 emissions, is increasingly imposing constraints to protect the interests of the other stakeholder groups.
• Voluntary organisations are typically less tightly structured, and priorities may depend on the power of their management committees or trustees. Employees may exhibit greater dominance than those in the commercial sector.
• Government bodies are answerable to taxpayers and to service users, both of which are represented by elected representatives (politicians); in some instances, the reality is that the dominant stakeholder is the employee.

The external environment is the world in which the business operates, it is a large ever changing place made up of:

• Organisations
• Employers
• Suppliers
• Customers
• Other Stakeholders

A business can’t operate with being influenced by and impacting upon the external environment. A key success factor for any business is an accurate understanding of the external environment. A long-term analysis of what is happening in all areas of a business can be monitored, anticipated and dealt with accordingly. The external environment can be defined & analysed using on of the following:

• STEEP – Sociological, Technological, Economic, Environmental, Political
• STEP – Sociological, Technological, Economic, Political
• PEST – Political, Economic, Sociological, Technological
• PESTLE – Political, Economic, Sociological, Technological, Legal, Environmental
• STEEPLE – Sociological, Technological, Economic, Environmental, Political, Legal, Ethical
The idea is the same for all of the models; that there are several main external influences on a business.
The STEEP model uses the 5 headings listed above.

Sociological Factors:

These include demographic changes in:
• Age
• Structure of the population
• Patterns of work
• Gender roles
• Patterns of consumption
• Changes in culture

Technological Factors:

• ICT is lowering the barriers of time and place
• ICT creates new industries
• Many individual jobs and internal service functions have been transformed and are now largely or solely based on ICT systems.

Economic Factors:

• Rate of economic growth
• Interest rates
• Inflation rates
• Energy prices
• Exchange rates
• Levels of employment

The state of a country’s economy pervades all aspects of business life as it affects demand for goods and services, the availability and cost of resources (land, labour, materials & buildings). Both individuals’ and businesses’ behaviour reflects their expectations of economic trends. Governments use changes in the interest rate to try to achieve short-term in levels of demand, investment and spending. Global communication technology has resulted in very high levels of currency trading, which leads to a great volatility in exchange rates.

Environmental Factors:

These are of growing importance as people all over the world are very concerned about the impact of businesses on the natural environment. The following are factors that businesses need to consider:

• Legalisation – Environmental Legalisation is increasing, with the emphasis on pollution control and waste disposal. However there are regulations affecting packaging, transport and distribution and sourcing materials.
• Information – Businesses report regularly on their environmental performance.
• Employees – Employees are interested &concerned about the environmental credentials of their employers.
• Shareholders – Most shareholders of larger businesses are financial institutions who are driven by financial performance. However in several countries a category of ethical investors is emerging.
• Pressure Groups –In the late 20th Century there was a massive growth in pressure groups, most of which were established to deal with particular issues. Many of them broadened their membership bases and became a permanent part of the political scene; these groups include groups such as Greenpeace and Stonewall.
• Customers – There are opportunities for businesses that are operating to high environmental standards to gain market advantage.

Political factors

Political influences affect/most of what we all do. Here are only a few political factors for businesses:
• Legislation – This affects a lot of different aspects of business life. The CIPD (Chartered Institute of Personnel and Development).
• Trading Relationships – Examples of this are the World Trade Organisation and the European Union.
• Government- In many cases the Government is either the largest employer or purchaser of goods and services or in some cases the only customer.
• Public Services – Health Services, Education and the Police Force are all determined on political grounds.
• Taxation – This is a pretty big one for businesses.

The distinction between the factors defined in the STEEP model are rather artificial, this is because in reality the factors are often interlinked.

In Images of Organisation, Gareth Morgan talks about learning the skill of “reading” situations. This is particularly important for people dealing with business situations. “Skilled readers develop the knack of reading the situations with various scenarios in mind and of forging actions that seem appropriate to the readings thus obtained”. The metaphor “implies a way of thinking and a way of seeing that pervade how we understand the world generally”.

Morgan wasn’t intending to categorise different types of business, rather offer different ways of looking at them. The metaphorical lens can help people understand their experiences with them.
Morgan uses eight metaphors to create “images of organization”:

  • A Machine – Businesses are often designed and operated as if they are machines, with highly visible structures and procedures. They offer continuity and security, but tend to fit people into jobs rather than allow much creativity
  • An Organism – This means seeing the businesses as behaving in similar ways to our own biological mechanisms. When the environment around us changes, so do our bodies. Successful businesses are often adaptable and open to change. This may mean that its structures and procedures are less fixed.
  • A Brain – Seeing a business as a brain means realising it has to be able to respond to change and also capable of rational thinking and intelligent change. Being open to inquiry and self-criticism often produces the ability to innovate: as Morgan puts it, businesses become “learning systems” that are able to self-organise.
  • A Culture – When you speak of businesses as cultures, we are referring to the fact that they are made up of sets of values, perspectives and principles, held and sustained by the people who work there.
  • A Political System – Businesses are not only about structures, cultures and hierarchies, they are also about politics. Politics in this context is about the social relations between individuals and groups in a business that involves authority or power. Organisational charts that plot the lines of communications between people will reveal some, but not all of the politics.
  • A Psychic Prison – This more abstract metaphor suggests that some businesses are constrained by themselves. Conventional or usual, ways of organising work and thinking about it can limit change and the adoption of alternative business strategies. Looking at the business in these terms encourages us to dig beneath the surface in order to see the restrictions real or otherwise that may be affecting the business and its ability to operate successfully.
  • Flux and Transformation – Morgan suggests that the secret to understanding businesses from this perspective lies in understanding the constant change shaping our lives. To understand a business we have to appreciate it as an ever changing thing. It grows & regenerates in order to survive.
  • A Vehicle for Domination – This metaphor introduces the idea that businesses can be or an attempt to be dominant. They can or try to impose their will on others. Again it encourages us to dig below the surface in order to understand and appreciate how business can exert power and influence.

Morgan’s framework is considered to be useful as one way of understanding business. It’s not intended to suggest fixed types of businesses. Businesses are likely to be a mixture of different metaphors, which can change over time, or according to circumstance. The metaphors can help to highlight the complexities of a business and their potential impact.