Passive ESG Investment


usa business ESG Investment

Environmental, social and governance (ESG) investment is when a person decides with whom they should invest with beyond monetary benefits, mainly based upon social, environmental and ethical reasons. There are two different types of ESG investors; active and passive.

An active ESG investor is somebody who still keeps their profit in mind. While they will bear in mind the environmental, social and ethical values of a company they decide to invest in, their top priority is the profit they can make. An active manager would be somebody looking for a financially beneficial reason to integrate ESG factors into their business. An example of this would be a company switching to wind power to provide electricity for them because their consumer base was demanding a greener process, and so therefore to appeal to more like minded customers the company decides that the best way to expand on their business is to integrate a more environmentally operation.
Passive ESG investment is when an investor is not so interested by the profit they will make from an investment, but rather the ethical contribution it will make towards their portfolio. An example of this would be choosing one company over another to invest in as, although their projected growth was lower, the chosen company invests a large portion of money in environmental protection programmes that align with the investors values and so therefore strengthens their portfolio by non-profit means and towards an ethical goal.
To analyse a passive investors portfolio, first you must decide which values you wish to emphasise with. While some people choose to measure ESG using a point scoring system, the reality of it is much more fluid as it is based on consumers and investors opinions and beliefs over something as black and white as a fact. Basically, what is important to one person could be insignificant to somebody else.
As well as deciding which factors are deemed significant enough, investors have to decide the best ways to measure them. This can vary drastically on the investors beliefs and values and overall understanding of what they consider important.
One of the most common factors considered when making investments is fossil fuel consumption and greenhouse gas pollution. The general consensus is that we are running out of fossil fuels, so investing in green renewable energy is a long term solution for when these limited supplies are exhausted. Risky investments are not considered stable for long term investors.
When creating a passive investment portfolio it is also worth considering which industry sectors most align with your values. Energy companies tend to have low ESG scores, however industries such as technology tend to be much more favourable due to the nature of the underlying business models.
As the world develops and changes and consumers and investors wish to be better informed of the nature of a company and their values and beliefs, access to this information is becoming more accessible, and it is becoming more possible to refine your portfolio to something which goes far beyond merely producing a profit; you can produce a statement with where you decide to place your money.


Product Placement Ads


usa new biz product placement

Product placement is when a company uses subtlety to promote their product through non traditional advertising. This is usually achieved by paying for their product to be featured in television shows or other forms of media. With the decreasing interest in standard advertisements and the increase in users ability to skip them, product placement and insertion have been becoming more popular. Technically speaking, we are exposed to thousands of advertising messages every single day.

To show just how effective it can be, after featuring in the film E.T, the sale of Reese's Pieces increased by 65%. If we identify with a particular character, we can implicitly prefer a product even if externally we prefer something else as we feel it is a way to interact with that character's life.
Product placement is a very powerful form of advertising because we follow and watch our idols religiously, and if a company can identify a particular fan base as their target market, for them to see somebody they look up to with a particular brand associated with them makes that entire audience want your product. They are emotionally invested in the character or actor, and as a result, product placement is often a lot more effective than traditional advertising. Around 75% of all network shows feature product placement of some sort, accumulating to 71.4% of all paid placements in the media.
Products even have an influence off the screen. If you provide a cell phone for an actor, while it may only appear on the screen for a short moment, they could be seen using it off the set, or in their trailer, and this also influences potential consumers but in a much more subtle way that you may not be able to measure so accurately.
It's not just television and movies - companies also pay popular individuals or influencers on websites such as Instagram to wear their brand or to use their products. Companies either pay the individual to associate with the brand, or they will send them products for free so that they can wear them publicly and in their photos on social media platforms. Website advertising used to cover all of this till advertisers dreamed up the idea of programmatic ads which basically meant the publishers would end up getting lower and lower revenue and profits, forcing many out of business. Now many online advertisers are wondering where the online volume is but they effectively brought down their own industry. Who's left, well the big duopoly of Facebook and Google because they have a closed walled garden community which advertisers can reach. Sure there are still some big publishers left like The New York Times and The Guardian who've gone for subscription revenue models but digital publishing has been pounded badly since 2018.
To convince media firms and people to insert your product into theirs, there are a number of things you can do to help. Firstly, be flexible. If you can adapt your product to fit their needs in colour, shape and size, they're more likely to want to put it in their media. You have to be willing to provide your product instantly as media companies tend to work on tight deadlines, and if you are aiming for a television market, it pays to provide replacements as well. You have to be professional and polite with the people you are working with, and with a bit of luck and enthusiasm, they may well come back for more.
It's a long term investment with most companies seeing an effect between a month and a year after the product has been aired. While the profit to losses ratio is rather persuasive, you have to understand that the benefit is not instant.

Quickly growing industries in the US


usa new business Quickly growing industries in the US

As the world we live in constantly develops and changes, some industries are emerging as more essential to the current consumer market. Here are a few industries that seem to be on the rise.
Electronics - The demand for electronics is constantly increasing as more people rely on smart phones and computers to navigate through their lives. Entire corporations rely on functioning technology and so the market for creating and developing electronic hardware and software will always be big. There is a real shortage in people with the brains to develop software and there is a lot of money in making the next big advancement in technology.
Translation and interpretation - As business becomes more international and more people are travelling and living abroad, the need for translators and multi-lingual minds is on the rise. Over the next five years, there is a predicted 28% increase in jobs in the US in this particular field. The highest language in demand in the US is Spanish.
Internet publishing and broadcasting - almost everybody in the developed world relies on the internet in one way or another, and the need for content for business and entertainment will only increase as the number of people using the internet increases and the amount of time spent on the internet also rises.
Health - the health industry seems to growing in size across all sectors, including the nurses who take care of retired people, the offices associated with health services, home health care services, psychiatric care and support, even ambulance drivers, as well as the demand for doctors and nurses in hospitals.
Financial investment - there has been a positive trend in the amount of financial investment activity occurring. This means there are more jobs and opportunities in the stock market as well as associated businesses, for example, financial advisors.
Marketing consulting - it seems we need more experts in the field of marketing as businesses strive to make an image for themselves and to advertise effectively. This industry has a predicted 20% increase over the next five years.
Environment, conservation and wildlife - businesses have seen a trend in ethical investment over the last few years and the demand for ESG consideration has increased. As a result, there is also more demand for people who work with the environment and more jobs in conservation and protection. In the last decade there has also been an increasing trend in people studying subjects such as Environmental Economics and Environmental Sciences as the consumer market becomes more aware of some of the threats to the ecosystems we rely on to survive. There is a predicted 19% increase over the next five years in this industry.
A few industries are seeing a decline in growth, mostly the manufacturing of glass and metals and therefore metal ore mining also, pesticide, fertiliser and agricultural chemical manufacturing, US computer manufacturing as, despite growing demands, more companies move to Asia for cheaper labour and quicker technology advancements, the postal service and the manufacturing of communication in the US, as this can also be made for cheaper abroad.


Robots in the workforce


Robots 2019 usa new biz

It has been predicted that in the next 30 years, many roles in the work force will be replaceable by automated devices. As the world of technology is evolving, our dependency on human actions is decreasing.

Moley Robotics has invented a completely automated intelligent robot that has the ability to cook and prepare meals as well as clean up after itself. This particular device can be replicate precise recipes preloaded into its internal memory from everything between a fast food hamburger and a gourmet dish.
Robots have been used in surgery since 2000, albeit still operated by a human. The benefit here is that they are extra precise and accurate providing the human operating the machine is precise and accurate.
Soon, in Japan, the world's first automated farming system will launch. The robots will be able to grow, water, and farm the crops. The only thing they won't be able to do is to sew the seeds. In fact robots are replacing humans everywhere, from delivery drivers to pharmacists, from telemarketing to construction. The obvious benefit is saving money on paying staff wages, and although the initial setup is currently very expensive, this is likely to decrease over time, and soon many more companies will be able to afford the long time investment.
Also, with the aim of a larger profit, machines will be able to work quicker than humans; mass production is something that can be programmed. If a machine can also self replicate, then it becomes a catalyst to its own process.
Robots, unless programmed to do so, will not have feelings and social problems which could potentially slow down or effect their work in a negative way. They also don't need to be paid wages or have staff benefits, or even have lunch as they are purely machines. Robots are able to work in space, and underwater, and in very hot and very cold climates where humans cannot without very expensive equipment.
Machines are much more accurate and consistent. Once a machine is mass producing it should, in theory, produce exactly the same product over and over again, whereas a human has a higher chance of error and a lack of consistency. Machines can create anything on any scale; from buildings to microscopic devices. They will eventually only be confined by the laws of physics.
The major disadvantage is the lack of emotion when dealing with customers. People have developed the expectation to be greeted warmly when they enter a hotel by a receptionist, or to talk to somebody over the phone who understands on the same scale that they do. Also, as the popularity of robots increases, alongside the growing world population, unemployment is likely to become a larger issue when automated machinery takes over. Ironically, the demand jobs developing robots and automated devices is likely to increase as companies will look to automation as a way of saving money, and until a robot can think for itself, it will not be able to develop new ideas.
Machines are not learning devices, they are only capable to doing what they are programmed to do. This means that a machine will not improve over time unless somebody has programmed an improvement. Robots are also very expensive to set up, to maintain, and to repair. Setting up an automated production line has to be seen as an investment rather than an immediate saving.


Should you go to a bar with your boss


usanew biz bar boss work professional

It's a delicate situation. The person in charge of your pay checks and any potential promotions has invited you after work for a couple of casual pints, and of course you have to say yes because he's your boss, and you want to be appealing and liked by him as he is the person who will be able to push you higher up the corporate ladder, but you have to remember that it's never really casual and that it's a minefield of possible disasters. Here are some things to look out for.

When it comes to settling the cheque, while you know that your superiors earn a considerable more than you do and you're possibly down to your last few dollars to last you the rest of the week, offer to pay. Your boss will most likely decline your offer of payment, but it will leave a positive impression. By tipping the bar staff you will also imply that you are a generous and kind person.
Be careful with your intake. Your boss may peer pressure you into drinking copious amounts, and while he or she may be disappointed that you cannot keep up, they will be even more disappointed if you become embarrassingly drunk. Be careful to control your consumption, even when somebody else is paying - you have to be in control of your actions and your words to ensure you leave them with the correct impression.
Try not to talk about work. This is a chance to get to know your superior on a personal level and to appeal to his more intimate and less professional self. Also, by talking about work you can possibly slide into back chatting or gossiping over employees in the company which your boss might not see eye to eye on.
Make sure not to linger too long, especially if the boss is paying. This will show that you don't want to be an expensive inconvenience and that you're not taking advantage of their generous offer, but also the longer you stay and the more alcohol you consume, the more likely you are to bring up something in conversation that you will later regret. While this is a casual and intimate environment, you still need to be perceived as a professional to be able to impress your boss.
By consistently refusing the offer to go to the bar, you could be perceived as a negative person who is not open to suggestion, adaptation or new ideas, and it can also suggest you are an anti-social person. You do not have to drink alcoholic drinks to be in attendance, and a non alcoholic drink allows you to keep your wits about you and ensures that you are still bonding with your employees and not purposely missing the opportunity. Nobody will judge you negatively for not drinking something alcoholic.
And above all, remember that the reason for attending is networking, and not to get drunk and party. The drinking is merely the setting, the purpose is to create stronger connections.


Smart Phones and Business


smart phone

Almost everybody owns a smart phone which connects to the internet these days. Whereas before, online data could only be accessed through a computer terminal, now emails and communications are available 24/7 at the touch of a button. These advancements in technology have had several effects on business and business continuation.

Workers now possess more flexibility as they are able to catch up with their business on the go with much more ease. Even when travelling to and from the office, or while you are away on business trips or even on holiday, as long as you have access to a 3G network you are able to continuously communicate with your clients without the need for a computer or laptop. Smartphones often come with smart software that allow you to update your schedules and calendars on all your devices at once, so even adjusting these isn't problematic from your cellar device, and having a cellular device on you at all times also has the added ability of reminding you of important dates and events in your schedule through push notifications, alarms and reminders that you are guaranteed to see, regardless of your location.
Employees have a greater ability to be able to take their work home with them. Even without a computer or laptop, people are able to write and send emails, adjust and send documents, amend schedules and access the internet which means that when you have approaching deadlines that put pressures on you that regular office hours simply don't suffice for, tasks can still be completed outside of the office and on the move. With the ability to access anything from anywhere, working on the move is becoming more and more popular.
With the ability to conduct teleconferences and Skype interviews from your mobile device, international hour differences are less of a problem as you can conduct these from anywhere where you have access to a network or wifi connection. This means that this is no longer restricted to office hours.
Smartphones are multitasking devices which allow you to complete several tasks at the same time through multiple applications which leave each other uninterrupted. Often these apps can communicate with each other so that you can transfer files and data between them. With such a simple interface, often it is easier to control several applications at once through your smartphone than on your computer device.
Smartphones give you immediate access to your bank accounts and you can manage, make and receive payments at your fingertips from anywhere. You also have instant access to platforms such as Facebook and Instagram which can be used to promote your business within seconds, as well as quick and easy access to stock reports and essential business data.
The biggest disadvantage to this development in technology is that where people used to just leave the office and switch off, now they are more likely to take their work with them all the time. This can lead to an increase in stress levels, a more agitated sleep pattern and more disruption to their private lives, however, overall, smartphones have had a very positive impact to businesses all over the world.


Successful advertising for today’s market


advert example

In an age where the internet dominates our lives and people spend the vast majority of their time scrolling through a news feed, advertising has had to adapt to capture attention even quicker than before. The use of visuals in advertising have become even more important as often a potential consumer's eyes will only glance over the advert for a fraction of a second as they scroll past it on their screen.

If you think about it, Instagram is a very strong media platform because it says so much with so few words. People simply don't have the time to sit and to read through pages of information and they want quick, easy access to mass content with quick and easy responses to show their support or appreciation for what is on display.
So how can we apply this to advertising? What visual features make you stand out from an endless stream of mediocrity?
Colour is a very important tool. Your reaction to certain colours is very personal and emotional and can completely change your mood. As an advertiser, you have to decide which mood you want to inflict upon your target audience that would be most effective to persuade them to buy your product. Bold and bright colours will make you stand out from other advertisements and media, but may not portray the message or the mood that you wish to deliver.
Creating a brand and a strong image for yourself is important. If you can reach the stage where a small logo or a simple typeface is immediately recognised as your brand, such as the Apple logo or the purple used in Cadbury's advertising, then you have really implanted your company and your product into people's subconscious. This can be achieved through repetition and ensuring that you have a strong brand and logo. Just be careful not to over stimulate with repetition that they decide to block out your advertising campaigns.
The people in your advertisements obviously play vital roles. Consider the body language of the people in the pictures. Do they look confident? Do they look happy? Viewers of your adverts will automatically assume that your product will have the effect on them that it has on the people in your images.
You have to be careful not to overcrowd your imagery. The use of negative space is very effective as it promotes simplicity and draws focus very quickly to a particular point on the advert. Also when composing your image, consider using the rule of thirds for maximum impact, or to be really direct with potential customers, central composition can also be really effective. Patterns are visually satisfying to consumers and can have a very positive effect.
People remember about 80% of what they see and only 20% of what they read. The way to truly speak to somebody on a personal level is through their eyes and not through words. Imagery is a language that transcends all language barriers, although it can be interpreted differently by different cultures. Especially in today's markets where people simply don't have the motivation to read large amounts of text, it is the quickest and most effective way to promote your product.


The coffee business



After water, coffee is the most consumed drink in the world. From your humble cup of nescafe gold instant all the way to a single origin dark roast barista crafted flat white in a modern independent cafe, with so many formats enjoyed by a bullion people worldwide there is something to satisfy every palette and it is easy to see how it has become such a big and important business in todays society.

On average, an American spends $14.40 a week on coffee from cafes. On average, Americans drink 3 cups each every day. The average net profit on a cup of coffee is between 400% and 500%, with roughly 80c spent on labour and materials and the average cup costing $3.50. There are 25 billion small producers relying on coffee for a living. Around 30 million coffee brewing machines have been sold in the US every year since 2010. 45 hours are spent every year on Americans waiting for coffee, compared to the 48 hours they spend in the shower. 46% of coffee drinkers visit a cafe more than three times a week, and 56% percent of these people will buy a pastry with their drink. Needless to say, the market is massive.
The majority of coffee is consumed at home, however the three companies boasting the largest sales in coffee are McDonalds, Starbucks and Dunkin' Donuts. There is however a trend developing which is complicating the art of coffee. The daily consumption of espresso based beverages in the US has tripled since 2008, and a lot of this growth has been seen in the younger generations. The coffee industry remained largely unaffected by the 2008 recession as millennials proved that it had become a staple that they were willing to pay for, even in trying times, who also tend to spend money on products from companies that reflect their personal values more than previous generations. This is seeing an increase in fair-trade and organic products.
There is a rise in consumption out of home and in a social environment, with consumers expecting to have their coffee served precisely as they wish. This is boosting business in smaller, independent cafes and also creating more competition amongst these companies as they all try to bend and adapt to an ever changing market as well as provide something unique.
Apps are changing the way that people buy coffee. These days, you can order your coffee from your phone and so you don't have to wait in line to acquire it. This also opens a potential stream of information which, whilst before was largely unappreciated, today is expected, so that consumers can find out where their coffee beans are sourced, how they are roasted, and the best ways to have it prepared for their particular taste.
The rise in app usage comes alongside a rise in interest in technology. More consumers are looking to buy coffee related gadgets so that they are able to produce high quality beverages in their own home, and the market for this is sharply inclining.


The cost of your bathroom break


company bathroom

There's that old saying “you gotta go when you gotta go”, but just how much is your bathroom break actually costing your company?

The average size of a bathroom is 40 square feet. The average rent of an office is $23.23 per a square meter every month. The average time spent on the toilet, as a mean between men and women, is 95 minutes a week, which comes to 13.57 minutes a day and roughly 4.5 minutes during your eight hour shift. There are 43800 minutes in a month, which means that one square foot costs $0.00053 every minute, and 40 square feet cost $0.02121 every minute. This figure multiplied by 4.5 minutes is $0.09546.
During those 4.5 minutes on the toilet, your wages are still being paid for you to be essentially idle. The average American is paid $24.57 every hour, which equates to $196.56 for an eight hour day, and $0.4095 every minute. Your time in wages, on average on the toilet during company time is $1.84275 every day.
The average price of water is $1.50 for every 1000 gallons. The average amount of water used to flush the toilet is 1.6 gallons, which means that each flush costs $0.0024. Then of course we still have to clean up, and let's just say a roll of paper costs a reasonable $0.25 which consists of 500 sheets, 8.6 of which are used on average every trip to the bathroom, the price of this will be $0.0172.
If we add all of those figures together, we come to $1.95781, or $1.96 when rounded to the nearest cent, and this doesn't include factors like the water and soap used to wash your hands, the time spent walking between your desk and the computer, the cost of lighting the bathroom, the cost of maintenance and cleaning, the cost of heating, the cost of wear and tear on the office carpet, the cost of running your computer while you're not using it and most importantly the share of the 6.5% annual profit margin which you will not be making whilst you are taking a bathroom break.
The amount of money that a company spends on its employees being idle racks up very quickly when you begin to consider every element that a company spends simply on existing. It is absolutely essential that a company does their best to eliminate time wasting in order to be successful. Going to the toilet is an essential part of our day, being mammals we simply cannot live without it, but what about time on social networks, or time socialising at the water cooler, or the time waiting on hold for a conference call, or the time waiting for your computer to power up in the morning? Are there any ways that you can cut out unnecessary elements in your time to save your company money? And if not, is there anything else you can do while your computer is loading up? Are there emails you can be answering while you are waiting for a conference call to start?
Time is money, and time is the most valuable resource that we have. Make sure to use it effectively.


The Digital Age




With advancements in technology constantly in the pipeline, the world has come a long way in the last few years. Gone are the days of vinyl, film photography, tape decks, CD, VHS, polaroid cameras, DVD and board games…. or are they?

While we have music streaming websites such as Spotify dominating the music industry, and likewise Netflix taking a lot of consumers away from their traditional televisions, it seems that it is becoming fashionable to revel in the processes of our pastimes. More and more people are falling back in love with their film cameras, chasing the analogue systems over their digital counterparts. More people are sitting down with the warm crackle of a vinyl; a sound that was almost lost in the digital age. There are even new advancements in film photography so that photographers can develop their film on the go. There seems to be a certain romance with the physical connections with our music and photos.
While on the rise, it is still a very small market, and the majority of consumers will opt for the newer and more practical solutions. There is an upwards trend in paying for subscriptions for services like Netflix and Spotify, where instead of paying once for a DVD or a CD, people will pay a monthly fee for unlimited access to the services that website provides. This eliminates clutter around the house, makes media completely portable by putting everything in one place - inside a smart phone or computer device, and also gives users more access to content that before they would have had no exposure to.
With over 100 million people subscribed to a music streaming service worldwide, it is certainly a booming industry. Initially, the introduction of digital files in the music industry was problematic as music piracy became more common. While still very popular, the introduction of services like Spotify is beginning to tackle that problem. The drop in demand for the physical product is saving record companies a fortune in shipping, storage and production as effectively, all they need to do is to allow access to a digital file, which also combats issues such as pollution generated when moving vast amounts of a product as well as the reducing the plastic used to create CDs and CD sleeves.
Youtube poses a potential threat to paid streaming services as there are more consumers listening to music on youtube than through Apple and Spotify combined. While royalties are paid out through this service, the inflation of royalties has not kept up with the increase of streaming creating a a value gap. Money is obtained through advertising and distributed accordingly, instead of through a paid subscription.
Despite revenues being $195 billion for Spotify in 2015, the company doesn't produce a profit as the price of royalties increases. Spotify's sustainability is questionable, despite the fact it is still going strong. Still, in a rapidly developing environment, it's only a matter of time before everything changes again, and music streaming becomes, like film photography and vinyl, a thing of the past.


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