THE TIMES 100

What do young people

think
about business ?

July 2008
 THE TIMES 100
What do young people think about business?

Executive summary

Young people have to make numerous decisions. These concern, amongst other things, the
products and services they may want to buy and where they will buy them from. They also
need to consider what career options are open to them. Which sectors and companies
would they like to work in? Do they have enough knowledge to make an informed choice?

The purpose of this qualitative research was to identify the extent of students’ knowledge
about UK companies. 200 students were asked what they knew about 30 large UK and
international businesses of different types, both before and after they had studied The
Times 100 case studies on the companies. The Times 100 brings the business world to life
by illustrating real applications of business theory.

Prior to studying, the research showed significant gaps in knowledge: This was true of all
types of organisation from public sector to international businesses. Levels of knowledge
ranged from none at all - e.g. Syngenta - ‘I have never heard of the company. I do not know
what it does.’) - to a general awareness of Business to Consumer companies -e.g. ‘Marks
and Spencer was founded in the last century and I think at first it sold household items,
clothes and maybe groceries.’)

Conclusions
The research indicated that The Times 100 case studies enhance student knowledge and
understanding:
· 93% of students state it improves their understanding of the companies
· 84% of students report enhanced opinions of the companies who take part.

It provides:
· customer insights. It shows how businesses serve to meet customer needs and
requirements. ‘I now realise that there is a lot more to Siemens and its business
really does affect everybody’s life in some way.’
· employee insights. It shows why young people should consider working for the
companies. ‘Can I come and work as a project manager please? Network Rail’s
planning system looks incredibly interesting as well as challenging!’
· citizenship insights. It shows how business serves the wider community through
CSR activities. ‘Vodafone’s principle of ‘open and transparent’ communication
builds trust and loyalty with customers and employees. It also builds credibility
with other stakeholders for its responsible stance on business issues.’

The Times 100 creates a strong positive perception of all of the organisations.

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 THE TIMES 100
What do young people think about business?

Introduction

Young people have to make numerous decisions. These concern, amongst other things, the
products and services they may want to buy and where they will buy them from. They also
need to consider what career options are open to them. Which sectors and companies
would they like to work in? Do they have enough knowledge to make an informed choice?

As part of ongoing qualitative research, The Times 100 researched what 16-21 year olds
know and how they feel about a number of large organisations of different types including:
· raw material providers, such as Anglo-American,
· manufacturers, e.g. Nestlé, Leyland and Corus
· a selection of service sector companies, e.g. Enterprise Rent-A-Car and Marks &
Spencer
· utilities, including RWE npower
· independent service providers, such as BSi
· public sector organisations, e.g. HMRC and the Audit Commission
· trade unions, such as UNISON.
Quotes from students throughout the report are shown in italics.

The research assessed the extent of students’ knowledge about UK companies both before
and after they had read The Times 100 Case Studies.

The Times 100 provides up-to-date case studies informing students about business activity
in a way that is directly relevant to the business studies curriculum. The Times 100 is the
UK’s best known and most widely used resource introducing contemporary business case
studies. It provides real case materials for use in the classroom. Published annually, it
keeps business students and their teachers up-to-date with business practice.

200 students were asked what they knew about a group of 30 UK and international
businesses.

What do students typically know about businesses?

A number of key findings emerged from the research. Prior to studying, the research
showed significant gaps in knowledge:
· Most students were not able to describe what major businesses such as Corus, Land
Securities and RWE npower do.
· At best, students have only low levels of knowledge of most UK businesses.
· The lack of understanding relates to private sector businesses such as Corus,
Amway and Siemens, as well as to trade unions like UNISON and public sector

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 THE TIMES 100
businesses such as Her Majesty’s Revenue and Customs (HMRC) and the Audit
Commission.

Students’ knowledge and understanding was typically limited to the following:

· For goods and services targeted at young people and their families, the name of the
business and sometimes the ability to recognise its logo. This also included the
ability to recall aspects of advertising such as straplines.
· Topical issues relating to the business. They may recall a company if the business
is in the public eye at a particular moment in e.g. Siemens building wind turbines.
· The overall size of the business –is it relatively large or small?
· Examples of innovative products or services associated with the business – e.g. 3
and third generation phones.

The research indicated that initial levels of knowledge and understanding of UK and
international businesses varied significantly:
· Nearly all students were totally unaware of some organisations, e.g. The Audit
Commission.
· At a second level, students have some awareness of some organisations but only
realise this when prompted by the case study
· At another level, there are organisations where students are familiar with the brand,
e.g. NIVEA, but are not aware of the business that owns the brand (i.e. Beiersdorf).
· Finally, there are organisations for which students already have some prior
knowledge. Typically, these include high street retailers and FMCG companies -
Marks & Spencer, Kellogg’s, McCain Foods and Nestlé are obvious examples.

Students have a much lower level of knowledge about businesses that sell to other
businesses – for example, Leyland Trucks, Land Securities and Corus.

This lack of knowledge is illustrated by taking the case of Syngenta, the leading global
agricultural business. None of the students questioned were able to identify the company
with typical responses being:
‘I have never heard of the company. I do not know what it does.’

Students have a better knowledge of more familiar companies. For example, all students
were able to recognise Marks & Spencer as a high street retailer and could demonstrate a
good level of understanding of recent changes in the company. For example:
‘Marks & Spencer was founded in the last century and I think at first it sold
household items, clothes and maybe groceries. It was always associated with the
older generation but in recent years it has tried to change this. It also launched a
new clothing range called Per Una, which was aimed at a younger market.’

There were similar results for High Street banks, e.g. for Lloyds TSB:

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 THE TIMES 100
‘They are my bank, and so of course I have heard of them, they have advertising
and retail branches everywhere’.

In the same way, students have a good knowledge of FMCG companies. For example,
perhaps unsurprisingly, all students had some brand awareness of Kellogg’s as indicated by
the following response:
‘They are a food producer, predominantly famous for making cornflakes and other
breakfast cereals such as ‘Special K’. I know that they have a distinctive red
coloured logo encompassing the Kellogg’s name written in italic writing.

Whilst students may have considerable product knowledge about the specifications of
mobile phones, new technological gadgets such as I-Phones and laptops, their knowledge
of the companies that provide products and services is much more limited. They may have
a contract with Vodafone but very few are aware of, for example, the company’s strategies
or commitment to CSR. They may own a laptop computer but typically have very little
knowledge of Intel – the company that produces the chips inside the computer.

This gap in knowledge remains evident in the workplace. Employment Review’s 2008
survey of 132 employers showed that 89% believe younger recruits have a poorer
understanding of the world of work than their older counterparts.

Knowledge and understanding of business after using The Times 100

The findings of the research indicated that case studies help to broaden and enhance student
knowledge and understanding.

Working with The Times 100 created a higher level of engagement and a strong positive
perception of all of the organisations:
· Students could clearly and accurately describe organisations that they had initially
not been able to recognise.
· Those organisations for which students had only basic knowledge were now seen in
a much more detailed and positive light.
· Students also report that the case studies enhance their perceptions of the companies
featured.

This is best illustrated by the example of Go-Ahead - a transport company covering bus
and rail services. The case study focused on how Go-Ahead meets customer needs in a
competitive sector.

Prior to working with the study, students had a variety of perceptions of the company.
· These ranged from the mistaken: ‘Go-Ahead is a healthier food option, who
advertises its produce as ‘low calorie goods’. Their main products are biscuits and
cake bars.’

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 THE TIMES 100
· Other students said that they had no idea what the company does.
· A further group of students were able to supply limited information, e.g. 'Go-Ahead
is a business in the transport sector, operating buses.’

After working with the case study students were able to provide far more detail:
‘Go-Ahead is actually a transport company, involved in buses, trains, car parks and
aviation. Go-Ahead is interested in customers’ opinions of the company, because
they can use this information to improve its services. It has used its profits to
improve services.’

The development of more sophisticated understanding demonstrates the impact on the

student of using the case studies in class.

This transformation of understanding and attitudes is highlighted by AEGON, one of the

world’s largest pension and insurance groups operating in the UK. Prior to working with
The Times 100, none of the students was able to identify what the business does. After
working with the case study, students expressed positive attitudes about the Group’s ethical
business practices and about the prospect of working for the organisation.

‘By addressing the customers’ concerns of trust, AEGON’s products seem

attractive investment opportunities and AEGON’s willingness to change in
accordance with market changes makes the company appear a fresh change from
other financial companies.’

‘If AEGON can really simplify financial services for its customers and roll out an
advertising campaign that shows that it can do this effectively, I would definitely
consider working for this company.’

Knowledge and understanding grows through a number of levels. Prior to using the case
studies, even where students knew of the company, their knowledge of what the company
does tend to be poorly formed. They are often surprised by:
· the range of activities carried out by the business: ‘Kellogg has a large 42% share
of the UK’s breakfast cereal market and it is the owner of 39 different brands of
cereals, targeted at various market segments’.
· the spread of the business geographically: ‘From this case study I have learned that
Leyland Trucks is part of a US company called Paccar Inc. It manufactures trucks
under the DAF brand at Leyland, near Preston, as well as in Holland and
Belgium.’
· the additional aspects of running a business that they were not previously aware of
(e.g. market research, tracking customer perceptions, recycling etc):‘Corus is the
UK’s largest steel manufacturer. Corus is looking to expand; a large part of its
expansion is aimed towards recycling and manufacturing in a sustainable way.’

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 THE TIMES 100
· the career opportunities presented by the business: ‘Network Rail – can I come and
work as a project manager please? The planning system looks incredibly
interesting as well as challenging!’
The research also highlights increasing knowledge after reading the case studies:
· an understanding of the scope of the business – i.e. where it operates and the
product and service range: ‘I was shocked at how often I have used products
developed by Siemens without realising the company worked in that area of
business, such as baggage handling and trains. I now realise that there is a lot
more to the company and its business really does affect everybody’s life in some
way’.
· the customer/client orientation of the organisation: ‘Beiersdorf is the business
behind the well-known NIVEA brand and uses market research to reach its goal of
being as close to consumers as possible.’
· the importance that the organisation places on listening to stakeholders: ‘As part of
its Corporate Social Responsibility strategy Amway works with UNICEF and it
aims to show that it is more than just a company which provides good quality
products. Amway believes in the best quality life for everyone and therefore
provides low-cost business opportunities, based on selling high quality products’.
· career opportunities within the business: ‘M&S has identified that happy employees
make contented customers and happy customers always, on average, purchase
more goods. One of their strategies was to eliminate many layers of hierarchy
within a store. This not only makes employees more involved but also improves
accountability.’
· CSR commitments e.g. environmental concern, employee welfare, charitable
giving, etc: ‘Vodafone’s principle of ‘open and transparent’ communication builds
trust and loyalty with customers and employees. It also builds credibility with other
stakeholders for its responsible stance on business issues.’

The implications for companies wanting to attract the recruits and consumers of
tomorrow

The Times 100 has the immediate effect of increasing business knowledge and
understanding: Students have far greater confidence in their knowledge and
understanding of businesses and their role in the modern world.
· 93% of students state it improves their understanding of the companies
· 84% of students report enhanced opinions of the companies who take part.

For example, using a case study about HMRC showed students that this organisation not
only deals with income tax, but also handles family credits and repayments of student
loans.

Students also see organisations through new eyes. For example, one student’s feedback
stated: ‘I have learnt from this case study that Lloyds TSB is trying to create an
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 THE TIMES 100
environment where diversity in the workplace is very welcome. The case study also shows
how the company tries to help people such as gays and bisexuals to integrate within the
company.’

Businesses can enhance young people’s perceptions of them by sharing information on

particular aspects of business activity. Because The Times 100 focuses on specific areas of
the Business Studies curriculum, material in the publication has direct relevance to student
learning.

Students have far more positive perceptions of companies because they can:
· appreciate the consumer research that has gone into developing products and
services
· identify specific products as part of a portfolio of quality brands
· associate specific businesses with Corporate Social Responsibility, in particular in
relation to environmental concern, social concern and concern for consumer well-
being.

The qualitative research carried out shows that students are far more likely to consider a
career working for a company when they have an understanding of:
· the types of skills and competencies involved in job roles
· opportunities for development and a career path with a specific organisation,
· the way in which organisations value their employees.

These improvements are well illustrated by the case study about RWE npower. Positive
outcomes of working with the study are evidenced in the following student comments:
‘Working in RWE npower will expose engineers and other professionals to a lot of
problem solving. There is the chance to display creativity and teamwork in such
situations. Graduates who work for the company are able to make an impact
straightaway.’

‘I think this is an excellent company as it is constantly looking for new ways to

solve problems. I would certainly consider npower to be my employer as it allows
engineers to be creative in their problem solving.’

Conclusion
It is clear from the research that many young people have only a hazy view of the business
world.

Apart from the branded products which feature in their household shopping basket and that
are featured in the media, students typically have only a limited knowledge of other
business operations. For example, their knowledge of companies in transport, financial
services, land and property development, mining and manufacturing operations is limited.

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 THE TIMES 100
The Times 100 case studies provide a real grounding in contemporary business by
providing:
· customer insights. It shows how businesses serve to meet customer needs and
requirements e.g. through market research, and the creation of innovative new
products.
· employee insights. It shows why young people should consider working for the
companies.
· citizenship insights. It shows how business serves the wider community through
CSR activities.

This innovative combined approach enables teachers and students to move the boundaries
of their understanding forward.

By working with these case studies, they are able to build a picture of how businesses
research customer requirements, identify stakeholder concerns, engage in ongoing product
development, focus on quality issues, engage in CSR activities and produce innovative
products and services. The Times 100 brings the business world to life by illustrating real
applications of business theory.

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 THE TIMES 100
The Times 100
The Times 100’s vision is to open young minds to a world of business

Its mission is to make its clients' lives easier by:

· creating innovative ways to raise their profile and demonstrate their corporate citizenship
· preparing young people to be more effective employees and better informed stakeholders.

The Times 100, in partnership with its corporate clients, develops business case studies for use in
schools, colleges and universities. These have two clear and distinct aims:
· to be effective and relevant to the needs of teachers and students
· to be a highly effective means for corporate clients to build their brands.

Using real-life examples from companies helps students understand business studies theory. Each
case study brings a business studies curriculum topic to life.

The Times 100 provides organisations with the ability to highlight key messages about:
· the company and the role it plays in society
· the range of job opportunities it offers
· how the company responds to corporate responsibility requirements and environmental
challenges.

The Times 100 case studies are distributed to 5,600 schools, colleges and universities in the UK,
reaching an audience of over 600,000 aspirational young people aged 14-21 undertaking courses in
Business Studies.

www.thetimes100.co.uk