@30/07/2010

GLOBAL ECONOMY- The OECD says that the world is flirting with a double-dip recession because of market pressure on Europe governments to slash spending. The low capital values of euro area banks are also aiding in the slow recovery.                  Australia's fortunes are alligned more to Asia and accordingly there is a concern of a slowdown in this region and possibly coupled by any European economic slump.

CONSUMER SPENDING - The CBA reports the Australian job market is stronger, consumer spender is at its weakest level since the height of the global financial crisis. The chief reasons behind the decline over the last quarter, which was the the worst result since the start of 2008, were higher interest rates, doubts over the state of the global economy, rising utility charges and council rates, all of which were weighing on consumer minds.

LABOUR MARKET, STAFF RETENTION, EMPLOYMENT & UNEMPLOYMENT - There is difficulty for +/- 33% employers to find suitable staffing. Accordingly, the tightening labour market has resulted in employers having to invest in training as well as wage increases to maintain a suitable staffing kudos. However, there are anomalies within the labour market infrastructure. Some of the flaws include (a) a large pool of under-employed workers, who want to work full time but can only find part-time work (b) the claw back of means tested benefits as incomes rise has the perverse effect of locking people into part-time work, with part-timers losing up to 70% in every $ they earn to government (c) Australia's unemployment rates are worse than the unemployment figures suggests, because 25% of those with jobs are working part-time, and 21% of people of prime working age (25-54) have no job at all

JOB CREATION & JOB ADVERTISEMENTS - There is a disconnection between number of jobs advertised and number available...say 5 jobs per 1 advert.

JOB STRATEGY - Most states are contingencies in this area are on target.

WAGES - ahead of a series of pay agreements coming up for renegotiation, unions are pushing wage claims of up to 7%

SMALL BUSINESS - While in the current economic climate, SME's would like to switch lenders to gain better finance deals. MAny SME's have failed to comply with new ATO employee share plan rules.

GOVT. GRANTS - There are +/- 403 state and federal grants currently on offer for businesses, totaling more than $16 billion  of which $5 billion is allocated each year. Most companies don't apply because they don't know what's available or they are scared of all the red tape. information per Govt. grants can be found  at http://business.gov.au/Grant finder/Grantfinder.aspx

HOUSEHOLD DEBT - there is a rise from 18.8b to 19.6b in credit card debt @ 05/2010. Expert note that consumers as well as small business, are more likely to use credit cards now due to rising mortgage and commercial loan costs, with higher interest rates. Retailers, however, are not seeing any parallel boost in turnover.

SKILLED MIGRANTS & AGEING POPULATION - It is estimated that circa 2050, people over 65 will make up 23% of the population

To alleviate this, skilled migrants is being promoted especially in non-suburban areas.

FOSTER'S GROUP - is still pursuing a separation from its wine division. Has abandoned the divestment of 4 vineyards.

SIGMA PHARMACEUTICALS- has decided its generic drug business.

AXA ASIA PACIFIC-NAB and takeover target have extended their acquisition arrangement DULUX- the Orica spun-off group has listed on the ASX. Orica is now seeking mining sector acquisitions.

HEALTHSCOPE-Currently in divestment mode with TPG and Carlyle group.

BHP BILLITON-have advised +/- 150 Adelaide Finance Division staff of impending retrenchment .

BILLABONG- currently in staff rationalisation/retrenchment kudos.

JETSET TRAVELWORLD & STELLA TRAVEL- looking at a JV; currently with the ACCC.

MACQUARIE GROUP-talking to US Spirit Finance Corp.

EMECO HOLDINGS- Considering divesting of its Vic. civil equipment rental business

Companies Reporting Poor Results...

NUFARM

SIGMA PHARACEUTICALS

WOOLWORTHS [NSW]

GOODMAN FIELDER

MIRRABOOKA INVESTMENTS [VIC]

ERA [ACT]

BRAMBLES LTD [NSW]

TELSTRA [VIC]

AXA ASIA PACIFIC [VIC]

PLATIUM CAPITAL [NSW]

COUNTRY ROAD [VIC]

SCANTECH LTD [SA]

PAPERLINX LTD [VIC]

PHOTON GROUP [NSW]

NTH. QLD. METALS [QLD]

AIR PACIFIC

Companies Reporting Good Results...

COCHLEAR LTD [NSW]

APN NEWS & MEDIA [NSW]

ORICA [VIC]

COLLECTION HOUSE [QLD]

RHG LTD [NSW]

INDEPENDENCE GROUP [WA]

KMART AUSTRALIA [WA]

WEBJET LTD [VIC]

WOODSIDE PETROLEUM [WA]

RSM BIRD CAMERON [WA]

M2 TELECOMMUNICATIONS [VIC]

BHP BILLITON [VIC]

MT. GIBSON IRON [WA]

FORTESCUE METALS GROUP [WA]

STUART PETROLEUM [SA]

SANTOS [SA]

PEABODY ENERGY [QLD]

ALCOA [US/WA]

Resolve to organise and track your leads. Make certain all leads are in the computer, rated adequately cultivated and followed up. This should increase business by 15%.

Resolve to be more visible in your market. Don't assume everyone knows you. Work on ways to be seen in your market place. Use public relations to attract attention.

Resolve to polish your business. Is your business projecting the right message with its logo and printed materials? Give your business a new look and see how many more customers notice you.

Resolve to make sure your customers see you as their first choice. Don't assume that customers are satisfied just because they are doing business with your company. Look for opportunities to communicate why it's prudent to do business with you.

Resolve to create a new marketing niche. Find a niche where you can be the expert. Then go to work developing new business. Become the leader in this niche.

Resolve to develop a marketing program. Every business needs marketing program.

Every business needs marketing power to thrive today.

Put on paper a program that will give you the edge.

Nothing happens without a road map.

Resolve to think longer term. You need to think about who your customers will be 2, 3 & 5 years from now. Begin communicating with these prospects.

Resolve to improve customer communications. Review letters you send & think about those you could be sending. Create new, conversational letters that communicate using the word 'you' more often than 'we'.

Resolve to let customers know that you appreciate their business. It's dangerous to assume that your customers know you care. Find ways to present your commitment to customers.

Resolve to marketing as an  investment in the future of your business. A constant flow of new customers who want to do business with you is the result of investing in an adequate marketing & sales effort.

Resolve to create some excitement! It's time to beat the drums, turn up the music and let it roll. If you're not making the customers heart go pitter-patter, you're not doing the job.