What we have learned this week
4 events and a conclusion
1. Stat of last week – that struck me anyway – that Coca Cola uses 200,000 plastic bottles every MINUTE. It is not the only drinks manufacturer in the world. And those plastic bottles then get wrapped in plastic. Read the article from the Financial Times – it should let you read one article without a subscription – see below*
2. I was back “in the room” last week, running a Finance Training session with a group of scientists in Cambridgeshire, UK. One piece of feedback received was “he did a B***** good job” which apparently is praise indeed. We used a large conference room, there were just 9 of us at suitable distances, and everyone thought that preferable to another series of sessions on Zoom.
3. The UK Governments’ announcement of further Covid 19 restrictions dominate headlines, and they now recognise what most of us had already decided: this is in for another 6 months. Probably – no one knows what the future holds. But this does mean that in business we have more certainty – or less uncertainty – about the coming months than we have had so far in 2020. We may not like the outlook, but the view ahead is clearer than it has been.
4. Roger Harrop – the CEO expert – share a brilliantly simple planning tool, with the new restrictions in mind. You have to write these down: what you will do on the next 3 days, 3 weeks, and 3 months. If you want a bonus point you can add – what will you do in the next 3 hours to move yourself/your business forward. (You can start by making a plan of actions for the next 3 days/weeks/months)
What do all these random events bring together? You will draw your own conclusions, but here’s a thought. We are so busy handling our response to Covid 19, we may be overlooking other significant issues – like how much plastic we are using. We now know we are living with Covid 19; the virus is not going away in the next 6 months – maybe longer. What are the other big issues we need to remind ourselves about – and take some action to sort.
While making your plan, may I suggest not having a cool drink from a plastic bottle? Just for a start.
*https://www.ft.com/content/bb189a2a-57ca-44ce-82ab-1d015a20ca1c
Buzzwords of the Week – Capex (Capital Expenditure)
Definition – Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. Capex is often used to undertake new projects or investments by a company. Making capital expenditures on fixed assets can include repairing a roof, purchasing a piece of equipment, or building a new factory. This type of financial outlay is also made by companies to maintain or increase the scope of their operations.
Alternate View – The real question is not how much it is – but what happens if you do not spend money investing in your business. Big Tech companies in theory need less Capex than say manufacturers but every business will need IT and will need to innovate its products and/or processes. Look at as a % of revenue or operating profit over a period of time – a decline says they may be running out of ideas.