Tag: annual report

Panasonic announces job cuts

seppuku-p1000701Panasonic has announced that 5,000 of its staff will be axed over the next three years.

The Japanese company has said those in its automotive and industrial units will fall on Panasonic’s sword as the company scales back its operations and tries to recoup huge annual losses of $7.5 billion, announced in March.

According to Channel News Asia, the company, which has already cut 20 percent of its workers will now move to slash its staff of around 111,000 people by March 2016. The move is part of an overall strategy to recover its business after a flagging year.

In March, rumours circulated that the company would further salvage its business by cutting its plasma business over the next three years.

It is thought Panasonic’s TV business, which generated sales of $10.5 billion during its peak in 2009 and 2010, accumulated less than half of that amount in 2015 and 2016.

It announced that it would end plasma TV panel production at its main plant in Amagaskai in western Japan around fiscal year 2014.

Halfords reports crash

halfsHalfords has seen a steep drive down in profits.

The company, which is mainly known for its bike and car part offerings, as well as staff who aren’t at all driven in helping their customers, reported a drop of 25 percent to £71 million in pretax profits for the 12 months to March 2013.

Despite it seeing a small profit in the group revenues, which were up by one percent, and a surge in cycling sales following the success of London 2012 and Sir Bradley Wiggins’ victory in the Tour de France, the company admitted it had seen a “demanding” trading environment.

It also admitted that its car repair arm, Autocentres, which in my opinion is regarded with as much trust as an Only Fools and Horses product, had seen a decline in profit.

However, this didn’t put the company off with it announcing it had opened 23 new Autocentres as investment for long-term growth continues

It has also tried to rectify its losses and appease shareholders,  with chief exec Matt Davies announcing an investment plan – codenamed the very original Getting Into Gear 2016 – which will aim to reposition the retail arm of the company and focus on sales growth to support “ongoing sustainable profitability”.

The company has also pledged to improve customer service as well as refit its shops.

ASA aims to show it’s no fool

beanteddyThe Advertising Standards Authority (ASA) has attempted to show that it has a backbone.

The toothless watchdog has released its annual report which it claims highlights its “big five” misleading advertising priorities, including free trials, pricing, daily deals, testimonials and health claims and what its been doing to tackle them.

The ASA said that last year 70 percent of its cases were about misleading advertising. It said making sure that responsible advertising isn’t being under-cut by the irresponsible helped get a fair deal for consumers and competitors.

It added that last year it received 31,298 complaints about 18,990 ads, while its work led to  3,700 ads being changed or withdrawn. It also dealt with 6,273 complaints about 5,338 online ads, which made up 28 percent of  its workload

The moves will do nothing to appease critics of the watchdog, which last year was described as “toothless” and “feared as much as a monster under the bed.”,  after it gave a company, which repeatedly violated ad terms, a tiny slap on the knuckles.

And it seems it’s continuing with its softly, softly approach, this week partly upholding two separate complaints about DSG Retail and Plusnet.

DSG was given a slap on the wrist after the ASA received two complaints about the company. It said two issues were investigated, one of which was upheld and the other not upheld.

The complaints centred around a TV and a press ad for tablets and e-Readers. The TV ad for PC World featured various tablets and e-Readers. The voice-over stated “At Currys PC World, get up to £80 Cashback on tablets and e-readers when you buy a case too”. At the same time there was also a large bauble that displayed text that stated “up to £80 Cashback”. On-screen text also stated “Conditions apply. Excludes Ipad”.

Images of the Blackberry Playbook, Google Nexus and Samsung Note appeared separately on the screen, each offering cashback options.

The press ad also stated “up to £80 Cashback on tablets and eReaders when you buy any case”. The ad featured a number of devices which detailed the price of the item “after cashback”.

The ad included an image of a Kindle. Text stated “£10 Cashback* 6” eReader The new Kindle features built in Wi-Fi allowing you to download a book in 60 seconds and weights less than 170grams. £59 AFTER CASHBACK* £69 payable in store + cost of case”. Text at the bottom of the ad stated “*when you buy a case”. The ad also included a box, which include the text “the largest range of tablet and eReader cases on the high Street From only £9.99”.

Two complainants challenged whether the TV ad was misleading because it did not make clear the extent of the consumers’ commitment in order to obtain the advertised discounts.

The press ad was queried for the same reason. DSG tried to get clever in its defence claiming that by definition, a ‘misleading advert’ had to be one that created a false impression and that an ad could not be considered misleading by not including a piece of information that a consumer may wish to know.

It said the absence of such information would only cause an ad to be misleading if it subsequently created a false impression and believed a case for a false impression had not been set out by the ASA.

However the ASA fought back claiming that an ad did not need to contain false information or create a ‘false impression’ in order for it to be misleading and that it should be considered misleading if it omitted significant information about the featured offer that would affect a consumer’s informed decision about whether or how to buy the product.

It let the company off the press ad but ruled the TV ad should not be shown again.

Over in the broadband camp Plusnet faced a similar fate after  airing a TV ad claiming that everyone was “a winner with the PlusNet broadband half price sale.”

It promised unlimited broadband from £4.99 a month with the smaller text claiming “with £13.99 monthly line rental” and “new customers only; £8.49 a month for customers in certain areas. £5.99 router delivery. 12 month minimum term.”

However, viewers weren’t impressed. One challenged whether the on-screen text was legible, while a second viewer challenged whether the ad was misleading, because the offer did not apply to “everyone”.

Other viewers challenged whether the claim “All broadband’s [sic] half off” was misleading, because they understood the offer applied only to packages that included line rental whereas broadband-only services remained at full price.

PlusNet said it understood the on-screen text was of the required minimum height. It said the offer was available to existing customers as well as new customers so the on-screen text would be amended to state “£8.49 a month for customers in certain areas. £5.99 router delivery. 12 month minimum term.
The ASA agreed that the TV ad conformed to its code.

However it didn’t like Plusnet’s claim that everyone was a winner, claiming that although the offer was in fact available to existing customers it considered the inclusion of that condition, which was in any case contradictory, in the ad was likely to lead existing customers to believe they could not benefit from the offer and that they might miss out on the promotional price as a result. It therefore concluded that the ad was misleading.