Alex's blog

The fall of the high street

2 mins. reading time

As briefly mentioned in previous blogs, technology is advancing rapidly which has left our high street neglected. After the closure of Toys R Us, Woolworths and BHS to name a few, it is clear that the UK just aren’t using the high street like they used to.

The decline of the high street has happened due to a number of reasons, including the major shift to online shopping, lower incomes and changing tastes. The financial crisis of 2008 saw numerous brands go into administration due to their large debts and growing overheads. This, combined with the rise of e-commerce, inevitably sent the UK’s high street into a downwards spiral. The convenience of online shopping has encouraged so many consumers to ditch the high street, especially with the growth of Amazon and their next day delivery service, Amazon Prime. The increase in individuals working longer hours at work also means that they may not have the time to go to a shopping centre during the week after work, and therefore more people are turning to the ease of online sales and therefore accelerating the decline of the high street.

The fall of the high street clearly has a profound impact on shareholders, CEOs and senior management within these businesses, however it is an extremely difficult time for employees working on the shop floor who have lost their income and job security. In an ideal situation, these employees would be re-deployed in other areas of the organization such as fulfilling online sales or in customer service (more so now due to the rise in omni channel distribution). Leadership in these businesses who have suffered is crucial due to the need to adapt to the situation in order to minimize the impact of their store closures for as many stakeholders as possible.

Can and should robots replace humans in the workplace?

2 mins. reading time

Oxford Economics have predicted that by 2030, up to 20 million manufacturing jobs may be replaced by robots. Whilst robots and automation appear to be more effective than employee in terms of consistency in working, needing less breaks and not needing salaries, it begs the question: should automation really be replacing humans in the workplace?

In some cases, yes, it may be best for robots to replace humans. This is evident in the case of Amazon factories owned by Jeff Bezos who has often showed a lack of care for his employees. In terms of Maslow’s hierarchy of needs, Amazon workers are barely fulfilling the security element and are essentially being treated as robots already. Due to the huge amount of pressure put on them, it’s likely that the quality of goods is falling due to the need to fulfill quotas. So, in Amazon’s case, it may be more appropriate for robots to replace workers.

On the other hand, roles including human resources, service providers and teaching cannot really be replaced by robots. These roles require empathy and the ability to react to new or uncertain situations and it is questionable whether automated systems can be developed well enough to react in the same way that humans would.

It is largely dependent on the role, management style and costs involved as to whether robots can and should replace humans in the workplace but due to the acceleration of modern technology, it is inevitable that jobs in the future are at risk of being replaced by robots.

The real cost of fast fashion

2 mins. reading time

Fast fashion is a growing industry. From the high street, online, to its seemingly endless streams of advertising, consumers are encouraged to keep up with seasonal trends.

Although the monetary cost of fast fashion is low, the environmental cost is high. Water usage is a large issue in this industry – it takes 2700 litres to create just one t-shirt, and 7000 litres for a pair of jeans. When consumers are encouraged to constantly buy and replace their wardrobes in a cyclical habit, it is evident that this industry and our shopping habits are damaging the planet and using up more resources than is really necessary. Although I am sure that most people are ‘guilty’ of buying fast fashion, this proves that actions that we may deem as insignificant do accumulate to have a paramount impact.

Additionally, fast fashion is impacting our oceans. Due to the release of microfibers when we wash our clothes, scientists have proved that small aquatic organisms are eating these microfibers from our synthetic clothes. Therefore, not only is fast fashion using up a vast amount of water, but it is also slowly damaging the oceans.

The rise in the use of Depop, eBay and charity shops appears to be a way to relieve the nature of this harmful cycle. Although there is a long way to go before the fast fashion industry is able to be environmentally sustainable, the rise in the purchase of second hand goods suggests that maybe there is a greater awareness of the impact, or whether individuals are just keen to find a more financially viable way to update their wardrobes.

Despite how convenient and inexpensive fast fashion is, a change in how we purchase and discard our clothes will lead to a wealth of environmental benefits.

COVID-19 against the economy

3 mins. reading time

After the World Health Organisation declared a global health emergency at the end of January, nations began to prepare for social distancing, increased hospital intakes and ultimately the slowdown of the economy.

The key message in the UK has been to ‘stay home, save lives, protect the NHS’, and this has had a paramount impact on our economy. Where pharmaceutical companies are embracing and prospering during these unprecedented times, non-essential and small businesses are hugely suffering due to the UK lockdown and therefore lack of access to these businesses. Whilst this is crucial to save as many people who have contracted coronavirus as possible, many sectors excluding healthcare have been negatively hit by the key message for the public to stay at home. Organisations who are still in their early growth stages may not have the financial backing to develop an omni channel distribution method and therefore will be hugely knocked by the lack of sales they will receive as their physical stores have had to close.

The Bank of England have also lowered their interest rates to the lowest they have ever been, to 0.1%. This clearly impacts businesses as the cost of borrowing and loans will decrease and therefore make their costs more manageable in a time where most businesses are suffering, individuals with variable rate mortgages will also benefit from a slight reduction in their housing costs. However, on the other hand, the value of savings and incentive to save cripples for individuals and businesses alike.

The combination of both staying home as well as reduced income has only accelerated the speed that the high street is crumbling and people have been encouraged to turn e-commerce and interacting with businesses online.

It is unlikely that the UK’s economy will go back to ‘normal’ anytime soon, but in the meantime, the British public can play their part by helping small businesses to survive.

The changing faces of today’s CEOs

2 mins. reading time

The CEO position is most traditionally imagined as a white, heterosexual, middle-class male. However, 21st century CEOs such as Bozoma Saint John challenge this largely backwards idea. Saint John is the CEO of Uber and is a young, black women who has suffered discrimination in her career, including her negative experiences when flying business class where she is often questioned if she is sat in the right place.

I think that this makes it clear that in a largely diverse society, women in the BAME (black and minority ethnic) community are still being treated unfairly. Women of colour are still limited in their careers, where their opinions are disregarded in decisions and they’re consequently at a disadvantage. This is potentially because we are not used to seeing diverse individuals in such senior roles because they simply have not been given the chance yet.

This suggests that perhaps as a society, we still are brainwashed by this traditional yet backwards way of thinking of business leaders. It is important for women and members of the BAME community to be given opportunities to advance their careers so that they can receive the same acknowledgements for what they do as their male, white counterparts. To do this, diversity quotas will play a large role to ensure that women and the BAME community receive the representation within business that they need and deserve.

The fact that quotas may be the most appropriate way to help women and BAME members advance their careers suggests that employers are still unknowingly discriminating and preventing women and BAME members from accessing higher levels of organisational management.

In such a diverse and multicultural society, it is key for today’s CEOs to not only be capable in their jobs but also to represent how diverse the UK is.