Woolworths Set To Leave Nigerian Market

The announcement that South African retailer Woolworths is set to pull out of Nigeria due to high rental costs and supply chain challenges caught retail analysts unawares.

This is against the backdrop of rising trend of retail mall constructions in Nigeria, the type of locations preferred by Woolworths and other such retail businesses including Shoprite, Game etc.

Following the success of The Palms Shopping Mall in Lekki- Lagos, other malls have since sprung up in other locations in Lagos namely Ikeja Shopping Mall, E-Centre Yaba, Galleria Victoria Island and also in other towns such as Abuja, Enugu, Ibadan and Benin.

In a statement, Woolworths which already has three retail outlets in Nigeria said "The Nigerian business was unable to sustain a compelling product and value proposition which represents the brand well, and meets the needs of the Nigerian customer".

While this may seem like good news for the fledgling indigenous fashion industry in Nigeria, it does not however paint a good picture for the county. Officials of the Federal Ministry of Trade & Commerce and other government agencies have been touring the world in search of foreign direct investments (FDIs). It does then appear that the competitive environment in Nigeria is still not very suitable. If Woolworths closes shop, they would take with them their fashion retail operations experience which would have impacted on the local retail industry in Nigeria. There will also be job losses and decrease in nation brand equity. Such negative business news will erode whatever little gains that may have been made by the recently launched 'Fascinating Nigeria' repositioning campaign. This is because no nation can claim to be a favorite destination for trade and investments if foreign businesses in such a country are closing shop as a result of unfavourable competitive business environment.

Government should look into some of the concerns raised by Woolworths and other businesses operating in Nigeria. For example, what is the reason for the high rental costs? Could this be as a result of high interest loans secured by the mall developers and the need to recoup back within the shortest possible time as the political and economic terrain continues to appear unpredictable?

Government should also do something about supply chain challenges. Woolworths imports the bulk of the goods it sells from abroad. Reports in the past have shown the difficulties faced by importers in clearing their goods out of Nigerian airports and seaports. The challenges include both administrative bureaucracy and multiple taxation. There is also the nightmare of transporting the goods out of the ports in Apapa and the traffic gridlock caused by bad roads.

 Addressing these challenges will help to enhance the competitive business environment in Nigeria and make the market more attractive for both local businesses and foreign investors.

 

Apple Knocks Off Coca-Cola To Become World's Most Valuable Brand

APPLE is the new most valuable brand in the world, according to a closely followed annual report.

The report,  is from Interbrand, a corporate identity and brand consulting company owned by the Omnicom Group that has been compiling what it calls the Best Global Brands report since 2000. The previous No. 1 brand, Coca-Cola, fell to No. 3.

Not only has Apple replaced Coca-Cola as first among the 100 most valuable brands based on criteria that include financial performance, this is the first time that the soft drink known for slogans like "It's the real thing" has not been No. 1.

The 2013 report begins: "Every so often, a company changes our lives, not just with its products, but with its ethos. This is why, following Coca-Cola's 13-year run at the top of Best Global Brands, Interbrand has a new No. 1 — Apple."

The report estimates the value of the Apple brand at $98.3 billion, up 28 percent from the 2012 report. The value of the Coca-Cola brand also rose, by 2 percent to $79.2 billion, but that was not sufficient to give Coca-Cola a 14th year as Interbrand's most valuable brand.

The top 10 Best Global Brands for 2013, five are in technology: Apple; Google; Microsoft, No. 5, unchanged from last year; Samsung, 8, compared with 9 last year; and Intel, 9, compared with 8 last year.

 Among other transformative technology brands that performed well in the new report was Facebook, which climbed to 52 from 69 last year, its first year on the list.

However, not all technology brands fared well. BlackBerry, which tumbled last year to 93 from 56 in 2011, has disappeared from the list. And Nokia, which dropped to 19 from 14 in 2011, finished this year in 57th place — "the biggest faller" among the 100.
Among nontechnology brands, a notable addition to the list was Chevrolet, at 89, the first General Motors brand to rank among the Best Global Brands.
Last year, when Coca-Cola finished atop the Best Global Brands list for the 13th consecutive time, an executive at the Coca-Cola Company acknowledged the streak but noted that "nothing lasts forever."
If it is consolation, Coca-Cola remains far ahead of Apple and Google in likes on Facebook fan pages. Coca-Cola has 73.2 million, compared with 9.8 million for Apple and 15.1 million for Google.

Austrian Baker Sued €4,000 For Showing Penis-Shaped Cake To Two Female Assistant

The owner of a bakery was sued by two female workers for showing them gingerbread biscuits shaped like erect penises and topped with whipped cream.

They demanded €2,000 each from their boss, claiming the cookies, which were decorated with dollops of icing sugar to simulate ejaculate, were intended to sexually intimidate them.

But the baker, 47, from Salzburg, Austria, whose name has not been revealed, claimed he was simply showing the assistants a new product.

He said it was the type of confection popular at parties held before weddings, and he hoped to that the pair would promote to his shop's customers

He may have got the idea for his phallic edibles from controversial U.S. pop star Miley Cyrus, who caused a stir when she bought her boyfriend an X-rated cake for his 22nd birthday last year.

Cyrus, then 19, gave Liam Hemsworth a giant penis-shaped cake at a party at Club Icon in Downtown Los Angeles - and then posed for photos pretending to lick and bite it.

But despite the acceptance of the luminaries of the U.S. music industry, the frauleins of Austria's fourth largest city were unimpressed with their employer's attempts to replicate the penis baked good.

But in comments quoted by the English-language Salzburg Times, he defended his actions.

'These cakes are really popular with stag nights and hen nights and other similar events,' he said.

'These clients like our sexy products and they use them in their own lives as a bit of fun. It's no place for prudes.'

Judges at Salzburg's labour court later dropped the case after hearing the two women had accepted an out of court settlement.

The court also heard they have since been fired from their jobs. As for the cakes? 'This item has gone on to become one of our very best sellers,' the litigants' erstwhile employer said.

Dusit Thani Maldives — Sparkling New Gem on the Atoll

It’s new…coming in December: Dusit Thani Maldives, being completed on Mudhdhoo Island, is a resort that will blend Thai hospitality and décor with top-of-the-line luxury. Only 40 minutes’ seaplane ride from the international airport, or 10 minutes by speedboat from the domestic airport, it’s an easy trip for the optimum in peace, quiet, and Maldives charm. Choose from private beach or ocean villas, stretched along the white sand beach seemingly into the sea itself — ideal for sleeping under the stars, in open-air rooms with just a thatched roof between you and the sky. Or, for pampering unlike any other place on earth, go for a session at Dervana spa — in a treetop pod, the only “in the trees” facility of its kind in the Maldives. (For those of you less courageous, there are ground-level pods as well!).


Besides lavish rooms, Dusit Thani offers a plethora of dining options: its flagship restaurant, Benjarong, is the place for the freshest Thai flavors. Try an international buffet for breakfast at The Market; the Sea Grill, as its name suggests, offers both the finest in seafood and steaks, with a romantic poolside setting and indoor or outdoor seating. When it’s time for liquid refreshment, the Sand Bar offers poolside service and a DJ on weekends; the Sala Bar, on the second floor of Benjarong, invites you to stargaze on the observation deck (complete with telescopes); and the Underground Wine Cellar will please the sommelier in you with wines from the far corners of the globe. Sound delicious? It’s meant to be: and it’s coming soon, at Dusit Thani.






































 

NIGERIA LOSES $1.6BN TO CRUDE OIL THEFT ANNUALLY – SHELL

 

Shell Petroleum Development Company, has expressed concern over the activities of crude oil thieves and illegal refineries operators in the Niger Delta, saying that the country was losing $1.6bn annually to oil theft.
The company cited its forced shut down of the Nembe Creek Trunk lines, NCTL, in Bayelsa State, a facility which produces about 150,000 barrels of crude oil per day and its declaration of force majeure on Bonny Light export.
This, according to the company, was to enable it remove crude oil theft connections, investigate suspected oil theft leaks and effect repairs.

Speaking at a workshop organised for media practitioners in Yenagoa, Shell Manager, Government/Community Relations, Evans Krukrubo,  said over 90 per cent of its pipelines in the region had been ruptured by suspected oil thieves.
He noted that the shut down of NCTL production would impact negatively on Bayelsa’s share from the Federation Account.
Represented by Funkakpo Fufyin, the company said the recent upsurge in illegal refining business in the Niger Delta should be a major concern to all stakeholders.
He said: “We are not worried by the money lost by Shell, but the harm and destruction unleashed on the environment.” He blamed most of the spills in the region on crude oil thieves and illegal refinery operators, when compared to operational failures.
He  cited Bodo, in Rivers State, Imo River, NCTL and offshore of the Niger Delta as areas  identified as major hotspots for oil bunkering and sabotage.
Krukrubo called on security agencies and state government to assist the firm in curbing the activities of oil thieves and illegal refinery operators.

BUSINESS START UP TIPS

Establishing a business can be a daunting task, but experts say it can be achieved with careful planning:

The thought of owning a business is amusing to many people. However, as much as people will ‘love’ to own their own businesses, many admit that they have little or no idea about what it takes to establish them; they don’t know where to start from.

But because the thought of starting out on their own has been so hard to ignore, many people braved the odds and set up businesses only for them to collapse because they failed to consider many vital aspects.

 According to experts, starting a business is quite tasking because it requires serious planning. They, however, say the process can be fun and easy for people who take the time out to either consult professionals or carry out some form of research.

Before saying goodbye to life as an employee, you have to be prepared to take certain steps; failure to do so, they explain, may only reduce your chances of achieving your goals. Some of these steps are explained below.

ARE YOU QUALIFIED?

As appealing as the idea of being your own boss is, experts are of the view that many people are incapable of running a business or becoming successful entrepreneurs. Unlike paid employment, which may only require expertise in an area and a few traits such as discipline and hard work, being entrepreneur requires much more. In addition to discipline, such qualities as self-confidence and credibility are important. You have to also have excellent communications and human and time management skills, among others. Of course, some of the skills required to run a business can be improved along the way, but experts warn that starting without the requisite skills would be a costly mistake. So, be sure you are qualified.

BE SURE ABOUT WHAT YOU WANT TO DO

Though experts admit that starting a business can be a very challenging thing for people, especially those who have been in paid employment for a long time, they say remaining in paid employment because of this fear can lead to regret later, if things don’t work out. This is why experts advise people against starting a business because that is the only option open to them. They say once you are sure about why you want to start your business, you will be able to approach it with a great attitude and find it easier to handle challenges and go through the process without relenting.

COME UP WITH A GREAT CONCEPT

Before you quit your job to become an entrepreneur, you must first think of a concept, product or service that will generate a steady stream of income. This may sound easy, but for most people, this is actually the hardest part. You should conceive a plan that puts your knowledge, experience and expertise to use in the most profitable way possible. Once you settle on an idea, research the marketplace to see how similar businesses have fared.
It is recommended that you start out with a business that you are passionate and knowledgeable about.

 CONSIDER SUPPORT

Whatever you want to do, you will require help and goodwill. So, when you are thinking about starting a business, it is important that you also consider what those whose help you would require think about your plan. Consult your family and friends and take their views into consideration, knowing that you are not going to do it all by yourself.

CREATE A BUSINESS PLAN

No matter the amount of support, expertise and funds at your disposal, experts warn that without a great business plan, you are unlikely to succeed in setting up a good business.
Your business plan is supposed to be the blueprint or guide to everything you do regarding the business. It contains everything from your goal (mission/vision) to the nature of product or service you want to provide, among other things.

SORT OUT YOUR CAPITAL

According to experts, many entrepreneurs make the mistake of thinking that a successful business is down to the amount of money available for the business. But businesses floated with millions of naira have gone on to fail, while those established with thousands of naira have grown to command billions of naira in assets and profit. Nonetheless, you will require capital to start your business; to produce your product and pay employees, etc.
In sourcing the funds, it is important that you go to the right sources. Financial experts say small businesses and startups are better off depending on friends, and relatives as well as the entrepreneur’s savings for capital. But many people turn to the banks and borrow huge sums at high interest rates, hoping that they would break even in a short while and pay off the loans. But the reality is that because of the interest rates, they find themselves using all their profits to service the loans, with little left to grow the business.

DRAW UP A BUDGET FOR THE BUSINESS

When it comes to raising funds or spending money to keep a business running, many people rely on assumptions. According to experts, for a business to utilize ‘scarce’ funds effectively, they are better off operating based on a budget. As such, it is important that you draw up budgets for your business. Do not become one of those who say things like, “With N5m, I will be able to cover all expenses.” Experts say you can come up with a proper budget for your business through research or market surveys and the likes.

GET A STRATEGIC OFFICE

The nature of the business you want to do and the location of your targeted customer base are some of the things you have to take into consideration in citing your office or workspace. Many people just opt for the available space, but this may not be good enough. Whether you are working from home or renting an office, be sure that your workspace is designed to enable you work efficiently. If you are running an ecommerce business, then you must ensure that your website is designed properly or professionally.

GET AS MUCH HELP AS POSSIBLE

Do not try to do it all by yourself. There are many professionals out there and also resources on the internet that can help you handle the technical aspects of establishing a business. Such things as getting your business incorporated and drawing up legal (proper) employment letters and terms for your workers are very important. So also is paying your tax and operating in line with the best practice in the industry you are setting up a business in. These are some of the areas where you need help.

BE CREATIVE, PLAN FOR THE FUTURE

It is important that your business is ahead of the competition and the times. To achieve this, it is important that you predict and react to possible trends in the future. You have to reinvent your business constantly. You have to plan for the growth of the business and the challenges that come with it. Also, you have to ensure that your business can adapt to changing times and economic challenges.

TIPS FOR GETTING BIG BUSINESS LOANS

While lenders have different loan packages with varying conditions, these are general information they all require from borrowers

It is true that many people, including economists, have complained about the high interest rates entrepreneurs have to pay on loans. It is also true that business owners are decrying the difficulties they face in their quest to access credit facilities from banks.

The impression several entrepreneurs give is that if the nation’s financial institutions become very stable and strong, and are willing to give out loans with interest rates that are much lower than what is obtainable now, their funding challenges will be over.

But even if things improve as expected, experts warn business owners to realise that they cannot just walk into the bank and get loans because they run a business with ‘great prospects’. It goes beyond that. Banks are expected to (and will) ensure that certain things are in place before they grant your request.

Some of the information will be about the entrepreneur and his team, while others will be about the business. For you to succeed in your quest to get business loans some of the things you will be asked to provide and what the bank will look out for are highlighted below.

PERSONAL INFORMATION

Before you get a loan, the bank will have you provide information about yourself. The information may cover such things as your background, educational qualification, work experience and address. You may also be asked to answer questions about your health and legal records. Surely, the bank would want to know if you have a criminal record or have been enmeshed in scandals and controversies, for instance.

While a bank will be less likely to give you a loan if you have a criminal record, for instance, experts strongly advise that you should avoid lying when asked to provide information because the bank is likely to find out in the course of its background check on you. Let’s say you own three different companies and you need additional funding for one. When you go to the bank, a question may be asked you is if you own other business. When this happen, even if you believe you stand a better chance of getting the loan if the other two remain unknown, tell the truth. By doing that, you still stand a chance, but when you lie and the truth is uncovered, it’s ‘request denied.’

STRENGTH OF MANAGEMENT TEAM

You may think this shouldn’t be the bank’s business, but it is. Top bank managers will tell you that as long as you have a management team that is incompetent, it means your business will stand little chance of recording growth, thereby risking failure. This, in turn, will make it impossible for you to repay the loan. That is not a situation any bank will be pleased to find itself in. So, to enhance your chances of getting that ‘seriously needed’ loan, ensure you have an impressive management team in place. It may make the management of the bank say, “With such a management team, we are sure to get our money back.”

CREDIT WORTHINESS

Banks run credit checks on entrepreneurs and companies before giving them loans. So, if you have been ‘notorious’ in your dealing with banks in the past, then brace yourself, the past is coming back to haunt you. Also, banks run credit bureau checks with the Central Bank of Nigeria, and if it is discovered that you are indebted to other banks, for instance, you may fail to achieve your goal. It is important that you are credit worthy and the CBN will have a say in that. So, find out what your credit rating is and if there is need to improve it, do so before sending in your loan application.

If you are already running the business, the bank will require a business credit report from you. It is important that you keep the report accurate as it will also have an impact on the process.

BUSINESS PLAN

Without a good business plan, you won’t get money from the bank. Banks will only approve your loan request if they know that your business is solid or that your plan has great prospects. So, in order to boost your chances of getting a business loan, have an excellent business plan. Your business plan should be designed in such a way that it is attractive and good and has projections.

TAX DETAILS

You will need to submit personal and business income tax returns generally for the past three years. You will likely have to also sign an authorisation form, so that the bank or lender can verify that what you said was filed with the Federal Inland Revenue Service was actually filed.

FINANCIAL STATEMENTS

Generally, all owners of businesses have to provide personal financial statements. So, you might as well start pulling that information together. The business will also need to provide current financial statements, including balance sheet, profit and loss, and sometimes a statement of cash flow.

BANK STATEMENT

You will need to provide personal and business bank statements for at least the past three months. Some lenders will require a full year’s worth of statements. Again, start pulling the information together, because you will need to provide it at some point.

PROOF OF COLLATERAL

The bank will want to see some kind of collateral for the loan. The bigger the loan or the higher the risk, the more collateral will be required. Prepare a statement that shows a list of all assets, along with descriptions and current fair market value.

LEGAL PAPERWORK

And, of course, you’re going to have to provide legal paperwork. Be ready –