Crack spread - Oil Industry

Crack spread is a term used in the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it - that is, the profit margin that an oil refinery can expect to make by "cracking" crude oil (breaking its long-chain hydrocarbons into useful shorter-chain petroleum products).

In the futures markets, the "crack spread" is a specific spread trade involving simultaneously buying and selling contracts in crude oil and one or more derivative products, typically gasoline and heating oil. Oil refineries may trade a crack spread to hedge the price risk of their operations, while speculators attempt to profit from a change in the oil/gasoline price differential.

Factors affecting the crack spread

One of the most important factors affecting the crack spread is the relative proportion of various petroleum products produced by a refinery. Refineries produce many products from crude oil, including gasoline, kerosene, diesel, heating oil, aviation fuel, asphalt and others. To some degree, the proportion of each product produced can be varied in order to suit the demands of the local market. Regional differences in the demand for each refined product depend upon the relative demand for fuel for heating, cooking or transportation purposes. Within a region, there can also be seasonal differences in demand for heating fuel versus transportation fuel.

The mix of refined products is also affected by the particular blend of crude oil feedstock processed by a refinery, and by the capabilities of the refinery. Heavier crude oils contain a higher proportion of heavy hydrocarbons composed of longer carbon chains. As a result, heavy crude oil is more difficult to refine into lighter products such as gasoline. A refinery using less sophisticated processes will be constrained in its ability to optimize its mix of refined products when processing heavy oil.

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MVNO Demystified

A mobile virtual network operator (MVNO) is a company that provides mobile phone service but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have the entire infrastructure required to provide mobile telephone service. As per the MVNO directory 2009, there are 366 active MVNOs and there are another 89 potential MVNOs. The concept of MVNOs was coined by Sir Richard Branson of Virgin Mobile in UK in 1999 and Virgin is still the largest MVNO with over 4 million subscribers in UK. There are currently over 50 MVNOs in US and Netherlands. However in almost every country, the share of subscriber base with MVNO is less than 10% 

There are various forms of MVNOs depending on the value chain activities they cover. The figure below provides an overview of the various activities performed by different entities: 

Image Copyright with Telecom Circle

 The fourth entity depicted as MVNO in the above diagram is essentially the “Thick MVNO” and is the most prevalent form of MVNO.  Key examples of Thick MVNO are Virgin, Lebara, Helio and while that of Mobile Virtual Network Enabler (MVNE) are Ztar, TMNG, Convergys and ASPIDER Solutions.

What does MVNO offer?

MVNOs normally try to leverage on one of the three strategic assets – Brand, Distribution or Existing Customer Base. The existing customer base can be non-mobile customer base that can be cross-leveraged for mobile services. There are MVNOs that try to offer better services for their customers, e.g.  Rabo Bank launched its own MVNO to serve its banking customers better. Communities of interest can come together to form a community MVNO, e.g. fans of Manchester United or McLaren can potentially brand an MVNO to display their sporting affinity. Wal Mart can use its distribution reach and loyal customer base to venture into the MVNO space.

The key strategic asset that MVNO brings to the table also defines its positioning in the market place. The broad classification of MVNOs is as follows

Business MVNOs focus on catering to the mobile services needs of business houses, e.g. Abica in UK offers cost savings on business mobile, landline and broadband services

Discount MVNOs provide cheaper services to their customers and price is their key differentiation

Niche MVNOs focus on a specific niche of the market and charge a premium for the brand

Ad Funded MVNOs have a business model that is based on advertisements and offer to provide free mobile services to their customers return for viewership of the advertisements, e.g. Blyk in UK

Ethnic MVNOs targets ethnic communities or other communities of interest by offering significant value to their customers, e.g. Lebara in UK offers reduced tariffs to its ethnic customers for calling their home countries

Convergence MVNOs are set of MVNOs that leverage on convergence, e.g. BT Mobile in UK and Italy. BT Mobile encompasses not only GSM but all wireless telecoms technologies and leads the field in Fixed-Mobile convergence­

Why do carriers (MNOs) find MVNOs attractive?

Operators look at MVNOs as an outsourcing partners to either reduce cost or increase productivity by reaching out to more customers profitably. No market is homogenous and consists of various segments which may not be equal in size. Operators may find it difficult to profitably target all the segments. MVNOs are a medium to implement a more specific marketing mix to suit the needs of the niche segments. MVNOs also help carriers reduce their costs as they take away a significant portion of operator costs like customer service delivery, billing, marketing, etc. MVNOs are able to offer these services at a lower cost by leveraging on their current assets. MVNOs may also help increase the revenues by way of reduced churn and increased ARPU.

Operators are particularly interested in MVNOs to better utilize their excess capacity. They can off load their excess capacity at marginal costing (at a discount to the normal tariffs) and can thus offer discounts to specific segments without having to offer it to its entire base.

Future of MVNOs

Despite the benefits that MVNOs can bring, the current share of subscribers in most of the markets they operate in is less than 10%. I am not sure if any MVNO is really making enough money to cover its expenses. The reason for this is that there is now a new entity in the form of MVNO that is trying to gain a pie of the value chain without increasing the value of the chain. This means that the margin needs to come from the carriers or through operating efficiencies. There is not enough inefficiency in the operator domain and hence the high margin opportunities are limited. The carriers are already under margin pressure and have a threat of getting marginalized and hence feel squeezed with the arrival of MVNOs.

An MVNO is only as strong as its ability to differentiate its services. An MVNO can differentiate itself through niche segments, its distribution depth and loyal customer base.

According to Whitey Bluestein, widely recognized as the creator of the first MVNO when he developed a virtual network operation for pre-WorldCom MCI in the mid 1990s,

There are three key areas that most new entrants simply have not thought out either tactically or strategically: distribution, customer churn and industry technology.

In many cases, the MVNOs do not have a clear technology roadmap and hence are not able to transition from 2G to 3G to 4G. Being asset light (read headcount), most of MVNOs have a limited ability to forecast future trends, pace of technology changes and hence miss out on opportunities. They have limited access to latest handsets in the operator driven markets unless they tie-up with the operators themselves for the handset deals.

Refer: http://telecomcircle.com

Customer Experience Seminar 2014: Truphone

Objective vs Subjective

 

	Objective	Subjective
Based upon	Observation of measurable facts	Personal opinions, assumptions, interpretations and beliefs
Commonly found in	Encyclopedias, textbooks, news reporting	Newspaper editorials, blogs, biographies, comments on the Internet
Suitable for decision making?	Yes (usually)	No (usually)
Suitable for news reporting?	Yes	No

Examples of Objective and Subjective Writing

Here are some examples of objective and subjective statements:

• "47% of Americans pay no federal income tax. These people believe they are victims and would never vote for a Republican candidate." In this quote (which paraphrases Mitt Romney), the first statement is objective. It is a measurable fact that 47% of Americans do not pay federal income taxes. However, the second statement is Romney's personal point of view and is entirely subjective.
• Apple only allows apps that the company has approved to be installed on iOS devices. The company does not care about openness of their platform. Once again the first statement here is objective, while the second is subjective because fans of the company could argue, as Steve Jobs did, that iOS is indeed an "open" platform.

Refer: http://www.diffen.com/difference/Objective_vs_Subjective

 

 

BT turns attention to shaking up UK mobile market

©Johnnie Pakington/BT

BT is to mount a fresh challenge to mobile operators with cut-price bundled offers using its broadband network and the 4G spectrum it unexpectedly acquired last year.

Having shaken the pay-TV market with free Premier League football, BT is turning attention to reviving its lacklustre mobile business. The telecoms group has not been a major provider of mobile services since the sale of O2 more than a decade ago. 

BT will offer households a TV, broadband, and fixed and mobile telecoms on combined tariffs – the so-called “quad play” bundle that is increasingly popular in the US and Europe. 

It will launch offers for businesses towards the end of the year, according to people familiar with the situation, before focusing on the consumer market.

Those people say the central proposition is around data – taking the group’s fixed-line superfast data connections into the mobile market. BT is in early talks with handset makers about supplying devices, according to people familiar with the negotiations.

Analysts see the strategy as partly defensive. BT wants to reduce the loss of its lines in homes, which have been in decline for many years with people increasingly forsaking fixed-line calls for mobile. 

Offering an additional service has been proved as a way to strengthen customer loyalty, if only because people are less inclined to move a large number of services at one time to different suppliers.

But there is an offensive element to the mobile strategy, at least as far as the traditional mobile operators are concerned. They see the prospect of BT’s strong telecoms brand swinging in with disruptively low prices to entice customers to its premium broadband packages.

Quad play potential

The British market for quad play services is relatively small, with less than one in 10 households with fixed-line broadband also taking a mobile service and most of those signed up by Virgin Media.

But the option of offering such bundles is becoming important in European markets, even to the extent of influencing M&A activity. Telecoms groups such as Vodafone have aggressively pursued fixed-line businesses while media companies such as Liberty Global are adding mobile.

Large incumbent operators such as Holland’s KPN already offer quad play, which chief executive Eelco Blok says has boosted firepower in winning and retaining customers.

Analysts at Espirito said BT was “well placed to do similarly” and convert its 9.7m residential customers to additional mobile services. Espirito estimates that BT could win “several million mobile customers over the next few years”, offering about 5 per cent of revenue market share and adding 1-2 per cent to BT’s growth.

Disruptive deals

As on the continent, BT can innovate in both technology and tariffs to win mobile customers. Over time the company is expected to upgrade existing WiFi “home hubs” linked to its broadband network with so-called “femtocell” technology – in effect creating a small mast (or “small cell” in industry parlance) in the home that uses the 4G spectrum acquired for £200m in the government auction last year.

“How disruptive can BT be?” said analysts at Berenberg. “BT has form in using non-core products like BT Sport to defend its core products like broadband. We believe that it could take the same approach with mobile.”

Berenberg points out that fixed voice minutes on BT’s network have halved in the past six years, and estimates that two-thirds more would be lost by 2020. This is equivalent to £600m of high-margin revenue. “In our view, BT’s mobile opportunity is a disruptive offer aimed at defending its eroding fixed-voice revenue stream.”

BT’s long mobile history
BT has been a competitor in the mobile market since launching one of the UK’s first networks in 1986. However, the 2002 spin-off of O2, which was then called Cellnet, put the mobile business on the back burner, writes Daniel Thomas.
Read more

And that – with the potential to cross-subsidise bundled offers on services – means lower prices for customers and a headache for mobile operators. Although there are scores of cheap branded offers using their networks on a wholesale basis – from virtual operators such as Tesco and Asda – none has the brand or network that BT can leverage.

For example BT could offer an unlimited voice/SMS Sim for as little as £3 per month, with £4 per month charged per gigabyte of data, according to Berenberg analysts. “If BT can defend 30 per cent of the high-margin £600m voice revenues that we expect it to lose by 2020, it could be worth as much as £2bn in value.”

It is not just cheap Sim-only deals, however. A range of pricing options is expected from BT, including longer-term contracts that come with expensive smartphones, and mobile data bundles covering the home.

BT has not yet detailed its plans, only saying that services would build on a “strong WiFi presence”, while otherwise using EE’s network. Further details are likely to be confirmed after its full-year results on May 8.

Rival response

Mobile executives say it is difficult to gauge the impact of BT on their businesses until its packages are revealed. Indeed, analysts still question how disruptive they will be for the mobile industry. 

How disruptive can BT be? BT has form in using non-core products like BT Sport to defend its core products like broadband. We believe that it could take the same approach with mobile
- Berenberg analysts

UK mobile prices are some of the lowest in Europe, and the concept of quad play has not yet taken root, with only Virgin Media backing the strategy. Meanwhile, even if BT managed to sell mobile to half its broadband customers, that would account for only a single-digit share of the overall market.

But given existing pressures on revenues in the sector, mobile executives admit that the additional competition from a fifth mobile player with its own network is unwelcome and could put further pressure on prices.

BSkyB may also need to respond by adding mobile to create its own quad play offers. The recent talks about commercial deals between Sky and Vodafone have been seen by analysts as partly a response to the threat to both groups from a BT that spans the telephony, internet and TV markets.

It remains to be seen whether the average British household wants all these services bundled into one tariff – but this is a question that the former British telecoms incumbent is not afraid to explore.

Job Interview: Why Only 3 Questions Really Matter

Even for the most fearless amongst us, job interviews can be nerve wracking. In order to give us the best chance of success we tend to prepare for many of the difficult questions we anticipate, questions like:

• Why should we hire you?
• What can you do for us that other candidates can’t?
• What are your key strengths and weaknesses?

Of course, you can never predict how an interview will go and what questions you will get. You might get an interviewer who fires one tough question at you after the other, or one that turns the interview into a more comfortable, natural two-way conversation. Preparing, therefore is difficult. In most cases we practice the answers to a long list of possible questions. The problem is that this can leave you over-prepared and as a consequence your pre-conceived answers can come across a bit robotic.

From my experience, there are really only 3 questions you have to prepare for and you can link most of the interview questions back to these three. Preparing for these three questions also means you can answer most questions more naturally, simply by referring mentally back to your preparations for these three questions.

Basically, any interviewer wants to establish 3 key things:

1. Have you got the skills, expertise and experience to perform the job?
2. Are you enthusiastic and interested in the job and the company?
3. Will you fit into the team, culture and company?

However, during the job interview, the interviewer might use many different questions and angles to get to the answers. If the interviewer doesn’t get what he or she wants from one question, they might ask them in different ways. Or they might probe from different angles to test for consistency in your answers.

Here is what’s behind these 3 questions:

1. Have you got the skills, expertise and experience to perform the job?

Think about the key skills you might need for the job you have applied for and assess your own level of expertise and experience in that context. It makes sense to identify the more specific or technical skills that your potential employer might expect as well as some more generic skills such as being a good communicator, having good IT skills, being a team player, etc. Once you have prepared for this question it will help you answer many different interview questions without getting sidetracked into talking about things that are not relevant. Remember that you want to demonstrate that you are aware of the key skills, expertise and experience required to do the job and that you have what it takes to perform it. Always go back to the key skills, expertise and experience when answering scary (and sometimes silly) questions like:

• Tell me about yourself?
• What are your greatest strengths / weaknesses?
• What can you do for us that other candidates can’t?
• Why do you think you are right for this job?
• What do you think the main challenges will be?
• Etc.

2. Are you enthusiastic and interested in the job and the company?

Any potential employer wants to know that you are interested in the company and excited about the prospect of working there. You therefore want to demonstrate that you have researched the company, understand its strategy, current performance, structure, market position and products and that you can’t wait to join them. For most, you will have done your homework before you even applied for the job, but if you haven’t then check out the ‘about us’ section on their website and search for the latest strategy documents, annual reports, key statistics as well as the company history. Show that you know them and demonstrate your enthusiasm for the job and company. Here you might also want to think about your ambitions and how they fit into the company you have applied for. You can then use the insights for answering questions such as:

• What do you know about our company?
• What do you think our company is aiming to achieve?
• What do you know about our products and services?
• Why do you want to work for this company?
• Why do you think this job is right for you?
• What motivates you?
• Etc.

3. Will you fit into the team, culture and company?

This final key question is about your personality and your style and how you as a person fit into the team and culture of the company. Companies have different cultures, which translate into different ways of behaving and working. It is important to make sure you fit in and don’t feel like a fish out of water. In fact, it is important for the company as well as for you. Again, hopefully you will have done some research prior to applying for the job. Sometimes, it can be tricky to find detailed knowledge about the company culture, in which case you simply talk about your assumptions and why you feel you fit in. One relatively new website that offers a glance inside companies is Glassdoor. The site is still in it’s infancy but provides a growing amount of data and information about what it is like to work for different companies. You want to map the culture of the company or the team you are planning to join and compare this to your personality traits, style and behaviors. Again, once you have done this you can use it to answer questions such as:

• How would you describe your work style?
• How would you describe yourself?
• How would your colleagues describe you?
• What makes you fit into our company?
• What makes you a good team member?
• If you were an animal, what animal would you be?
• Etc.

Of course, any interview is a two-way process. In the same way the interviewer wants to find out that you are right for the company, you need to assess whether the company is right for you. Each of the questions can be turned around so that you can assess:

1. By joining this company, will I make best use of my skills and expertise and will they help me to grow them further?
2. Is the company excited about having me work for them and will they give me the necessary support?
3. Is the company culture the right fit for me so that I can flourish and be myself?

If you ask relevant questions from your point of view then this will make the interview more balanced and create a more natural conversation.

I hope this is useful? Please let me know your thoughts and share any comments you might have on the topic.

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2013 Telecommunications Industry Perspective

The central paradox inherent in the business of telecommunications over the past several years was at its most vivid in 2012. Having finally recovered fully from the global economic downturn and come to terms with the challenge of mass broadband and digitization, the industry had to contend with the ongoing issues of how to grow and become more profitable. We define digitization as the mass adoption of connected digital technologies and applications by consumers, enterprises, and governments—a revolutionary movement that is reshaping the sector. - See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

In 2012, data traffic grew at explosive rates, but monetization lagged behind; telecom companies must resolve this paradox this year by choosing how they approach the market.

- See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

In 2012, data traffic grew at explosive rates, but monetization lagged behind; telecom companies must resolve this paradox this year by choosing how they approach the market.

- See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

The central paradox inherent in the business of telecommunications over the past several years was at its most vivid in 2012. Having finally recovered fully from the global economic downturn and come to terms with the challenge of mass broadband and digitization, the industry had to contend with the ongoing issues of how to grow and become more profitable. We define digitization as the mass adoption of connected digital technologies and applications by consumers, enterprises, and governments—a revolutionary movement that is reshaping the sector. - See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

The central paradox inherent in the business of telecommunications over the past several years was at its most vivid in 2012. Having finally recovered fully from the global economic downturn and come to terms with the challenge of mass broadband and digitization, the industry had to contend with the ongoing issues of how to grow and become more profitable. We define digitization as the mass adoption of connected digital technologies and applications by consumers, enterprises, and governments—a revolutionary movement that is reshaping the sector. - See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

The central paradox inherent in the business of telecommunications over the past several years was at its most vivid in 2012. Having finally recovered fully from the global economic downturn and come to terms with the challenge of mass broadband and digitization, the industry had to contend with the ongoing issues of how to grow and become more profitable. We define digitization as the mass adoption of connected digital technologies and applications by consumers, enterprises, and governments—a revolutionary movement that is reshaping the sector. - See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

The central paradox inherent in the business of telecommunications over the past several years was at its most vivid in 2012. Having finally recovered fully from the global economic downturn and come to terms with the challenge of mass broadband and digitization, the industry had to contend with the ongoing issues of how to grow and become more profitable. We define digitization as the mass adoption of connected digital technologies and applications by consumers, enterprises, and governments—a revolutionary movement that is reshaping the sector. - See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

The central paradox inherent in the business of telecommunications over the past several years was at its most vivid in 2012. Having finally recovered fully from the global economic downturn and come to terms with the challenge of mass broadband and digitization, the industry had to contend with the ongoing issues of how to grow and become more profitable. We define digitization as the mass adoption of connected digital technologies and applications by consumers, enterprises, and governments—a revolutionary movement that is reshaping the sector.

On the one hand, data traffic over both wireless and fixed networks continued to increase at explosive rates. Traffic growth is driven by the massive uptake of smartphones and tablets, the mobile Internet, and digitization technologies such as cloud computing, and to a far lesser extent by rapidly increasing machine-to-machine services. Indeed, data traffic appears to have risen even faster than expected.

The result was that many mobile operators struggled to meet demand, and instances of substandard network performance were more frequent. In response, telecom operators continued to invest heavily in their networks. With wireless broadband speeds fast approaching those of fixed-line connections, and with ever more users shifting their online activities to their smartphones, operators will need to rethink their roles within the PC and mobile value chains. In particular, the mobile value chain is becoming increasingly intricate.

Given these challenges, operators must treat 2013 as the year in which they double down on their efforts to resolve this paradox. They must settle on better ways to monetize the flow of traffic over their networks and capture considerably more of the revenue now going to Internet players. They must then use these new sources of income to keep making the investments in new technologies that are needed to build out truly ubiquitous mobile broadband networks on par with the current state of fixed-line broadband, and speed up their restructuring and innovation efforts.

Simply relying on higher demand over networks with limited capacity to boost prices and restore growth will certainly not be acceptable to policymakers and regulators increasingly aware of the importance of fixed and mobile broadband to promote economic growth.

Restructuring for Growth

These will not be easy tasks. Every telecom player will have to make numerous critical decisions regarding its strategic focus and its operating model, as well as the capabilities needed to operate coherently in its chosen markets. These decisions will lead to a significant increase in fundamental restructuring efforts on the part of operators, as they prepare to become Fit for Growth℠ by making the right choices about streamlining their cost structures in order to be able to fund their expansion and investment plans. We expect these restructuring activities to fall into three categories:

Defending the core. All operators must determine exactly what their core business is, and then build it up to the point where it can thrive as an organic growth machine that drives both revenues and profits. At the same time, they must focus on transforming the core into a highly efficient and lean operation. This will require that they learn to tailor offerings to their chosen customer base and segments using sophisticated customer analytics to develop profitable pricing schemes, while offering these targeted customers the best user experience possible.

Expanding into adjacencies. Even as they defend their core business from interlopers coming from outside the traditional telecom space, telecom players must themselves seek out opportunities in adjacent sectors. Which areas they decide to venture into, and to what degree, will depend on their chosen business model. Indeed, some may prefer to concentrate on enabling their business customers to make such moves into adjacent sectors, rather than doing so themselves. In every case, entering adjacencies will require the willingness and the ability to develop suitable innovative products and services—not a traditional strength for most telecom operators. They must also be willing to enter into partnerships with companies that may have more experience in these adjacent areas. Most important, if they are to succeed outside their comfort zones, they need to begin soon to narrow their strategic focus and start making the tough and possibly expensive decisions about where to invest, and which assets—even possibly network assets—to divest.

Pursuing coherence at scale. Restructuring is a difficult process, particularly for companies as complex as telecom operators. Nonetheless, their ultimate goal must be to achieve coherence at the correct scale in whatever new form they choose to take on, and they must end up with an optimal portfolio of products and services if they are to thrive. For some, this may be a relatively simple process. For most, however, it is likely to require a wrenching combination of divestment and consolidation in their search for the correct combination of organic growth and synergistic new businesses.

The Right Models

How telecom operators will pursue these necessary activities of defending the core, expanding into adjacencies, and pursuing coherence at scale will vary. We believe that four business models can move telecom companies away from the vertically integrated structures of the past and enable them to meet the challenges of a disrupted sector while benefiting from existing opportunities. These business models are the network guarantor, the business enabler, the experience creator, and the global multimarketer—models that are not mutually exclusive.

The network guarantor. In this model, operators concentrate on providing their network infrastructure and related services to retail and business customers, promising high quality, reliability, and smoothly integrated platforms and applications, while operating as cost-effectively as possible. Until recently this was perceived as the “dumb pipes” model and was much too conservative for the new digital world. However, more operators are pursuing this model as network traffic grows and businesses look to operators for more and more essential services. Some companies have decided to advance this model by pooling their resources and those of their customers, offering them the ability to choose among different networks and services while saving considerably on operations and network maintenance.

The business enabler. This model depends on a strategy that extends traditional telecom network services to include helping businesses in different verticals serve their own business and retail customers. The business enabler assists its business customers in capturing the benefits of digitization through reliable virtual networking, cloud services, and other integrated services and applications. One model might involve extending the operator’s own billing and collection capabilities by developing platforms and selling them to customers. Another might include providing services that help customers to expand their online retail offerings.

The experience creator. Operators pursuing this model seek to provide their customers with an attractive combination of targeted applications and content and the best possible user experience. Services might include e-wallets, personalized information apps, and access to music, video clips, and games. This model requires deep insight into customers and excellent customer management and service. Thus far, few operators have succeeded in fully implementing this model, because of the strong innovation skills needed and the stiff competition they are meeting from established Internet players.

The global multimarketer. Large operators have the opportunity to expand beyond their home markets into multiple segments and markets, creating value by combining the other three models, carefully managing the resulting product and service portfolios, and reproducing these models and portfolios in new markets efficiently. This in turn will allow them to provide their many customers with unique digital identities and the broadest possible range of digital services.

Operators would do well in their restructuring efforts to consider carefully which combination of these models will be most conducive to their future success. That decision will depend on how well the distinctive capabilities they already possess match up with the set of capabilities that each of these models requires.

The Right Capabilities

The coming year, then, will be one of restructuring. Operators must build the right set of distinctive capabilities for success. This will require the appropriate combination of five key capabilities: enhanced customer analytics, customer experience management, digital enablement, strategic partner management, and yield management. No operator is likely to be able to build all of these capabilities simultaneously and to perfection. What is important is to select the ones most critical for the chosen business model.

Enhanced customer analytics. The success of all four business models depends to a considerable extent on this critical capability. Companies need the ability to gather and analyze data about customers and then use it to create the right mix of price and services for each customer segment and determine profitability over the entire customer life cycle.

Customer experience management. Operators will need the capability to create innovative products and services that are designed to attract and retain customers, and to manage a complete portfolio. Different models will require different types of services: Experience creators may look to provide seamless service across different screens. Global multimarketers will need to be able to replicate this capability in their many markets. By contrast, network guarantors do not need to acquire this capability.

Digital enablement. This capability will enable companies, and especially business enablers, to transform their own internal services and processes—such as billing, authentication and identification, and location-based services—into products they can then offer to business customers, which can in turn resell them to others. Telecom players that succeed in understanding the relationship between online marketing and offline sales, for example, could build platforms for managing so-called multichannel attribution issues for their customers (multichannel attribution includes the relationship between online marketing and its offline effects). Other options might include digital identity services, e-commerce, and cloud computing.

Strategic partner management. Telecom players looking to move into adjacent sectors and new markets will most likely need to partner with others in the broader digital space, because those partners can provide the market footprint, experience, or services portfolio needed to succeed. Managing these deals can be challenging, but those who build a solid capability in this area will be most likely to find and keep the best partners.

Yield management. For every operator, understanding the nature of all their assets and managing them for optimal value are an essential part of creating the appropriate cost structure and freeing up funds for investment in developing the correct model, or models, for the future.

The digital revolution is in full swing, and the telecommunications industry is in the thick of it, providing infrastructure, enabling other players, and waging its own battles. Opportunities exist, but every player in the industry must choose its strategic direction and build the corresponding set of capabilities necessary for success. This choice, and the ability to pursue it, will determine how each player finishes in this critical race: as a leader or an also-ran.

- See more at: http://www.booz.com/global/home/what-we-think/industry-perspectives/display/2013-telecommunications-industry-perspective?pg=all#sthash.wPPUs1ma.dpuf

Improving cost structures

Margins can only be improved by increasing sales prices, or reducing costs. As prices in real terms for many of the industry’s staple products have eroded over many years, the focus has long been on reducing costs. Indeed, in our recent report CEO Perspectives, Viewpoints of CEOs in the forest, paper & packaging industry 2010 virtually all CEOs report that their companies have been actively cutting costs. These measures do not guarantee increased margins, if they do not offset increases in the cost of raw materials or in other key inputs such as energy and transportation. The industry tendency to pass cost savings through to customers rather than building returns for its investors will need to change.

The volatility of energy costs is of particular concern, and potentially affected more by government action than by market forces. Many executives attempt to hedge against this volatility by increasing energy efficiency and their own capacity to generate power internally.

Transport costs represent another significant line item, largely linked to oil price fluctuations. For some, locked into high transport costs, it may mean a shift in production locations.

Improving cost structures means reducing the cost of inputs and processes through savings and efficiencies and not competing away those gains by chasing sales prices down. It means a change in mindset away from volume and capacity utilisation, to focus on margin. It therefore means the closure of both unprofitable capacity and even currently profitable capacity if that enhances the overall return on the remaining assets. In short, a radical overhaul of business models may be necessary to achieve real and sustained margin improvement from existing product platforms

Industry Cost Structures

By Alan Stratton

Different industries have different cost structures. Some industries are labor intensive. Others are material or capital intensive. In distribution, regardless of industry, most of the costs are the acquisition of products purchased from manufacturers.

The same is true for retail operations like a grocery store, where 70% or more of expenditures go toward the food and merchandise displayed in the stores.

Performance management and measurement differ between industries and should reflect the cost structures of those businesses.

In a typical manufacturing organization, half the costs are raw materials or component parts purchased from suppliers.

For the manufacturer, the acquisition costs of material and component parts are critical.

The emphasis of performance management should be on the processes and activities for product manufacturing and the activities associated with the procurement of materials. Effective supply chain management is critical.

In the capital intensive semiconductor industry half the cost structure is deprecation of the capital investment. Once the investment is made, the deprecation cost is fixed for the foreseeable future.

Emphasis should be placed on project management and activities related to capital investment analysis, authorization, and decision.

In a service organization, like a consulting firm or software developer, as much as 75% of the costs can be people and people related (offices, telephones, and computers).

For the service organization, it’s all about managing the effectiveness and efficiency of human labor.

Harder to measure but critical for performance are the ideas and innovations that come from knowledge workers.

For a company like Nike that invests heavily in its brand, the largest expenditures are related to marketing, advertising, and promotion.

In the Nike like example the key activities to manage might include those related to the design and procurement of advertising or management and recruitment of celebrity endorsements.

In the oil and gas industry significant expenditures are made to drill wells to explore for oil and natural gas, many of which are dry or not commercially viable.

Activities related to collecting seismic data and evaluating underground formations are critical to the overall success rate.

Use a simple pie chart to identify the overall cost structure of your business. Review your performance management and measurement systems to determine that they address the large cost items…

Usef Websites for Execs and Managers

Executive Web Sites

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http://sloanreview.mit.edu/issue/ - MIT Sloan magazine

BT Retained Earnings

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Microeconomics Practice Problem - The Shut-Down Condition

US Telecom Consolidation

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Standard Industrial Classification (UK)

SIC 2007

The United Kingdom Standard Industrial Classification of Economic Activities (SIC) is used to classify business establishments and other standard units by the type of economic activity in which they are engaged. The new version of these codes (SIC 2007) was adopted by the UK as from 1st January 2008.
With the agreement of the Office of National Statistics (ONS), Companies House uses a condensed version of the full list of codes available from ONS. Please be aware that only the codes made available on the condensed Companies House list below can be used on the Annual Return. Codes used from other sources than the Companies House list may mean your document is rejected, and your filing delayed. Even if your company is dormant (99999) or non-trading (74990) this still has to be indicated by using the appropriate SIC code.
Refer: http://www.companieshouse.gov.uk/infoAndGuide/sic/sic2007.shtml

SIC 2007	Description
SECTION A	Agriculture, Forestry and Fishing
01110	Growing of cereals (except rice), leguminous crops and oil seeds
01120	Growing of rice
01130	Growing of vegetables and melons, roots and tubers
01140	Growing of sugar cane
01150	Growing of tobacco
01160	Growing of fibre crops
01190	Growing of other non-perennial crops
01210	Growing of grapes
01220	Growing of tropical and subtropical fruits
01230	Growing of citrus fruits
01240	Growing of pome fruits and stone fruits
01250	Growing of other tree and bush fruits and nuts
01260	Growing of oleaginous fruits
01270	Growing of beverage crops
01280	Growing of spices, aromatic, drug and pharmaceutical crops
01290	Growing of other perennial crops
01300	Plant propagation
01410	Raising of dairy cattle
01420	Raising of other cattle and buffaloes
01430	Raising of horses and other equines
01440	Raising of camels and camelids
01450	Raising of sheep and goats
01460	Raising of swine/pigs
01470	Raising of poultry
01490	Raising of other animals
01500	Mixed farming
01610	Support activities for crop production
01621	Farm animal boarding and care
01629	Support activities for animal production (other than farm animal boarding and care) n.e.c.
01630	Post-harvest crop activities
01640	Seed processing for propagation
01700	Hunting, trapping and related service activities
02100	Silviculture and other forestry activities
02200	Logging
02300	Gathering of wild growing non-wood products
02400	Support services to forestry
03110	Marine fishing
03120	Freshwater fishing
03210	Marine aquaculture
03220	Freshwater aquaculture
SECTION B	Mining and Quarrying
05101	Deep coal mines
05102	Open cast coal working
05200	Mining of lignite
06100	Extraction of crude petroleum
06200	Extraction of natural gas
07100	Mining of iron ores
07210	Mining of uranium and thorium ores
07290	Mining of other non-ferrous metal ores
08110	Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate
08120	Operation of gravel and sand pits; mining of clays and kaolin
08910	Mining of chemical and fertilizer minerals
08920	Extraction of peat
08930	Extraction of salt
08990	Other mining and quarrying n.e.c.
09100	Support activities for petroleum and natural gas mining
09900	Support activities for other mining and quarrying
SECTION C	Manufacturing
10110	Processing and preserving of meat
10120	Processing and preserving of poultry meat
10130	Production of meat and poultry meat products
10200	Processing and preserving of fish, crustaceans and molluscs
10310	Processing and preserving of potatoes
10320	Manufacture of fruit and vegetable juice
10390	Other processing and preserving of fruit and vegetables
10410	Manufacture of oils and fats
10420	Manufacture of margarine and similar edible fats
10511	Liquid milk and cream production
10512	Butter and cheese production
10519	Manufacture of other milk products
10520	Manufacture of ice cream
10611	Grain milling
10612	Manufacture of breakfast cereals and cereals-based food
10620	Manufacture of starches and starch products
10710	Manufacture of bread; manufacture of fresh pastry goods and cakes
10720	Manufacture of rusks and biscuits; manufacture of preserved pastry goods and cakes
10730	Manufacture of macaroni, noodles, couscous and similar farinaceous products
10810	Manufacture of sugar
10821	Manufacture of cocoa and chocolate confectionery
10822	Manufacture of sugar confectionery
10831	Tea processing
10832	Production of coffee and coffee substitutes
10840	Manufacture of condiments and seasonings
10850	Manufacture of prepared meals and dishes
10860	Manufacture of homogenized food preparations and dietetic food
10890	Manufacture of other food products n.e.c.
10910	Manufacture of prepared feeds for farm animals
10920	Manufacture of prepared pet foods
11010	Distilling, rectifying and blending of spirits
11020	Manufacture of wine from grape
11030	Manufacture of cider and other fruit wines
11040	Manufacture of other non-distilled fermented beverages
11050	Manufacture of beer
11060	Manufacture of malt
11070	Manufacture of soft drinks; production of mineral waters and other bottled waters
12000	Manufacture of tobacco products
13100	Preparation and spinning of textile fibres
13200	Weaving of textiles
13300	Finishing of textiles
13910	Manufacture of knitted and crocheted fabrics
13921	Manufacture of soft furnishings
13922	manufacture of canvas goods, sacks, etc.
13923	manufacture of household textiles
13931	Manufacture of woven or tufted carpets and rugs
13939	Manufacture of other carpets and rugs
13940	Manufacture of cordage, rope, twine and netting
13950	Manufacture of non-wovens and articles made from non-wovens, except apparel
13960	Manufacture of other technical and industrial textiles
13990	Manufacture of other textiles n.e.c.
14110	Manufacture of leather clothes
14120	Manufacture of workwear
14131	Manufacture of other men's outerwear
14132	Manufacture of other women's outerwear
14141	Manufacture of men's underwear
14142	Manufacture of women's underwear
14190	Manufacture of other wearing apparel and accessories n.e.c.
14200	Manufacture of articles of fur
14310	Manufacture of knitted and crocheted hosiery
14390	Manufacture of other knitted and crocheted apparel
15110	Tanning and dressing of leather; dressing and dyeing of fur
15120	Manufacture of luggage, handbags and the like, saddlery and harness
15200	Manufacture of footwear
16100	Sawmilling and planing of wood
16210	Manufacture of veneer sheets and wood-based panels
16220	Manufacture of assembled parquet floors
16230	Manufacture of other builders' carpentry and joinery
16240	Manufacture of wooden containers
16290	Manufacture of other products of wood; manufacture of articles of cork, straw and plaiting materials
17110	Manufacture of pulp
17120	Manufacture of paper and paperboard
17211	Manufacture of corrugated paper and paperboard, sacks and bags
17219	Manufacture of other paper and paperboard containers
17220	Manufacture of household and sanitary goods and of toilet requisites
17230	Manufacture of paper stationery
17240	Manufacture of wallpaper
17290	Manufacture of other articles of paper and paperboard n.e.c.
18110	Printing of newspapers
18121	Manufacture of printed labels
18129	Printing n.e.c.
18130	Pre-press and pre-media services
18140	Binding and related services
18201	Reproduction of sound recording
18202	Reproduction of video recording
18203	Reproduction of computer media
19100	Manufacture of coke oven products
19201	Mineral oil refining
19209	Other treatment of petroleum products (excluding petrochemicals manufacture)
20110	Manufacture of industrial gases
20120	Manufacture of dyes and pigments
20130	Manufacture of other inorganic basic chemicals
20140	Manufacture of other organic basic chemicals
20150	Manufacture of fertilizers and nitrogen compounds
20160	Manufacture of plastics in primary forms
20170	Manufacture of synthetic rubber in primary forms
20200	Manufacture of pesticides and other agrochemical products
20301	Manufacture of paints, varnishes and similar coatings, mastics and sealants
20302	Manufacture of printing ink
20411	Manufacture of soap and detergents
20412	Manufacture of cleaning and polishing preparations
20420	Manufacture of perfumes and toilet preparations
20510	Manufacture of explosives
20520	Manufacture of glues
20530	Manufacture of essential oils
20590	Manufacture of other chemical products n.e.c.
20600	Manufacture of man-made fibres
21100	Manufacture of basic pharmaceutical products
21200	Manufacture of pharmaceutical preparations
22110	Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres
22190	Manufacture of other rubber products
22210	Manufacture of plastic plates, sheets, tubes and profiles
22220	Manufacture of plastic packing goods
22230	Manufacture of builders ware of plastic
22290	Manufacture of other plastic products
23110	Manufacture of flat glass
23120	Shaping and processing of flat glass
23130	Manufacture of hollow glass
23140	Manufacture of glass fibres
23190	Manufacture and processing of other glass, including technical glassware
23200	Manufacture of refractory products
23310	Manufacture of ceramic tiles and flags
23320	Manufacture of bricks, tiles and construction products, in baked clay
23410	Manufacture of ceramic household and ornamental articles
23420	Manufacture of ceramic sanitary fixtures
23430	Manufacture of ceramic insulators and insulating fittings
23440	Manufacture of other technical ceramic products
23490	Manufacture of other ceramic products n.e.c.
23510	Manufacture of cement
23520	Manufacture of lime and plaster
23610	Manufacture of concrete products for construction purposes
23620	Manufacture of plaster products for construction purposes
23630	Manufacture of ready-mixed concrete
23640	Manufacture of mortars
23650	Manufacture of fibre cement
23690	Manufacture of other articles of concrete, plaster and cement
23700	Cutting, shaping and finishing of stone
23910	Production of abrasive products
23990	Manufacture of other non-metallic mineral products n.e.c.
24100	Manufacture of basic iron and steel and of ferro-alloys
24200	Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
24310	Cold drawing of bars
24320	Cold rolling of narrow strip
24330	Cold forming or folding
24340	Cold drawing of wire
24410	Precious metals production
24420	Aluminium production
24430	Lead, zinc and tin production
24440	Copper production
24450	Other non-ferrous metal production
24460	Processing of nuclear fuel
24510	Casting of iron
24520	Casting of steel
24530	Casting of light metals
24540	Casting of other non-ferrous metals
25110	Manufacture of metal structures and parts of structures
25120	Manufacture of doors and windows of metal
25210	Manufacture of central heating radiators and boilers
25290	Manufacture of other tanks, reservoirs and containers of metal
25300	Manufacture of steam generators, except central heating hot water boilers
25400	Manufacture of weapons and ammunition
25500	Forging, pressing, stamping and roll-forming of metal; powder metallurgy
25610	Treatment and coating of metals
25620	Machining
25710	Manufacture of cutlery
25720	Manufacture of locks and hinges
25730	Manufacture of tools
25910	Manufacture of steel drums and similar containers
25920	Manufacture of light metal packaging
25930	Manufacture of wire products, chain and springs
25940	Manufacture of fasteners and screw machine products
25990	Manufacture of other fabricated metal products n.e.c.
26110	Manufacture of electronic components
26120	Manufacture of loaded electronic boards
26200	Manufacture of computers and peripheral equipment
26301	Manufacture of telegraph and telephone apparatus and equipment
26309	Manufacture of communication equipment other than telegraph, and telephone apparatus and equipment
26400	Manufacture of consumer electronics
26511	Manufacture of electronic measuring, testing etc. equipment, not for industrial process control
26512	Manufacture of electronic industrial process control equipment
26513	Manufacture of non-electronic measuring, testing etc. equipment, not for industrial process control
26514	Manufacture of non-electronic industrial process control equipment
26520	Manufacture of watches and clocks
26600	Manufacture of irradiation, electromedical and electrotherapeutic equipment
26701	Manufacture of optical precision instruments
26702	Manufacture of photographic and cinematographic equipment
26800	Manufacture of magnetic and optical media
27110	Manufacture of electric motors, generators and transformers
27120	Manufacture of electricity distribution and control apparatus
27200	Manufacture of batteries and accumulators
27310	Manufacture of fibre optic cables
27320	Manufacture of other electronic and electric wires and cables
27330	Manufacture of wiring devices
27400	Manufacture of electric lighting equipment
27510	Manufacture of electric domestic appliances
27520	Manufacture of non-electric domestic appliances
27900	Manufacture of other electrical equipment
28110	Manufacture of engines and turbines, except aircraft, vehicle and cycle engines
28120	Manufacture of fluid power equipment
28131	Manufacture of pumps
28132	Manufacture of compressors
28140	Manufacture of taps and valves
28150	Manufacture of bearings, gears, gearing and driving elements
28210	Manufacture of ovens, furnaces and furnace burners
28220	Manufacture of lifting and handling equipment
28230	Manufacture of office machinery and equipment (except computers and peripheral equipment)
28240	Manufacture of power-driven hand tools
28250	Manufacture of non-domestic cooling and ventilation equipment
28290	Manufacture of other general-purpose machinery n.e.c.
28301	Manufacture of agricultural tractors
28302	Manufacture of agricultural and forestry machinery other than tractors
28410	Manufacture of metal forming machinery
28490	Manufacture of other machine tools
28910	Manufacture of machinery for metallurgy
28921	Manufacture of machinery for mining
28922	Manufacture of earthmoving equipment
28923	Manufacture of equipment for concrete crushing and screening and roadworks
28930	Manufacture of machinery for food, beverage and tobacco processing
28940	Manufacture of machinery for textile, apparel and leather production
28950	Manufacture of machinery for paper and paperboard production
28960	Manufacture of plastics and rubber machinery
28990	Manufacture of other special-purpose machinery n.e.c.
29100	Manufacture of motor vehicles
29201	Manufacture of bodies (coachwork) for motor vehicles (except caravans)
29202	Manufacture of trailers and semi-trailers
29203	Manufacture of caravans
29310	Manufacture of electrical and electronic equipment for motor vehicles and their engines
29320	Manufacture of other parts and accessories for motor vehicles
30110	Building of ships and floating structures
30120	Building of pleasure and sporting boats
30200	Manufacture of railway locomotives and rolling stock
30300	Manufacture of air and spacecraft and related machinery
30400	Manufacture of military fighting vehicles
30910	Manufacture of motorcycles
30920	Manufacture of bicycles and invalid carriages
30990	Manufacture of other transport equipment n.e.c.
31010	Manufacture of office and shop furniture
31020	Manufacture of kitchen furniture
31030	Manufacture of mattresses
31090	Manufacture of other furniture
32110	Striking of coins
32120	Manufacture of jewellery and related articles
32130	Manufacture of imitation jewellery and related articles
32200	Manufacture of musical instruments
32300	Manufacture of sports goods
32401	Manufacture of professional and arcade games and toys
32409	Manufacture of other games and toys, n.e.c.
32500	Manufacture of medical and dental instruments and supplies
32910	Manufacture of brooms and brushes
32990	Other manufacturing n.e.c.
33110	Repair of fabricated metal products
33120	Repair of machinery
33130	Repair of electronic and optical equipment
33140	Repair of electrical equipment
33150	Repair and maintenance of ships and boats
33160	Repair and maintenance of aircraft and spacecraft
33170	Repair and maintenance of other transport equipment n.e.c.
33190	Repair of other equipment
33200	Installation of industrial machinery and equipment
SECTION D	Electricity, gas, steam and air conditioning supply
35110	Production of electricity
35120	Transmission of electricity
35130	Distribution of electricity
35140	Trade of electricity
35210	Manufacture of gas
35220	Distribution of gaseous fuels through mains
35230	Trade of gas through mains
35300	Steam and air conditioning supply
SECTION E	Water supply, sewerage, waste management and remediation activities
36000	Water collection, treatment and supply
37000	Sewerage
38110	Collection of non-hazardous waste
38120	Collection of hazardous waste
38210	Treatment and disposal of non-hazardous waste
38220	Treatment and disposal of hazardous waste
38310	Dismantling of wrecks
38320	Recovery of sorted materials
39000	Remediation activities and other waste management services
SECTION F	Construction
41100	Development of building projects
41201	Construction of commercial buildings
41202	Construction of domestic buildings
42110	Construction of roads and motorways
42120	Construction of railways and underground railways
42130	Construction of bridges and tunnels
42210	Construction of utility projects for fluids
42220	Construction of utility projects for electricity and telecommunications
42910	Construction of water projects
42990	Construction of other civil engineering projects n.e.c.
43110	Demolition
43120	Site preparation
43130	Test drilling and boring
43210	Electrical installation
43220	Plumbing, heat and air-conditioning installation
43290	Other construction installation
43310	Plastering
43320	Joinery installation
43330	Floor and wall covering
43341	Painting
43342	Glazing
43390	Other building completion and finishing
43910	Roofing activities
43991	Scaffold erection
43999	Other specialised construction activities n.e.c.
SECTION G	Wholesale and retail trade; repair of motor vehicles and motorcycles
45111	Sale of new cars and light motor vehicles
45112	Sale of used cars and light motor vehicles
45190	Sale of other motor vehicles
45200	Maintenance and repair of motor vehicles
45310	Wholesale trade of motor vehicle parts and accessories
45320	Retail trade of motor vehicle parts and accessories
45400	Sale, maintenance and repair of motorcycles and related parts and accessories
46110	Agents selling agricultural raw materials, livestock, textile raw materials and semi-finished goods
46120	Agents involved in the sale of fuels, ores, metals and industrial chemicals
46130	Agents involved in the sale of timber and building materials
46140	Agents involved in the sale of machinery, industrial equipment, ships and aircraft
46150	Agents involved in the sale of furniture, household goods, hardware and ironmongery
46160	Agents involved in the sale of textiles, clothing, fur, footwear and leather goods
46170	Agents involved in the sale of food, beverages and tobacco
46180	Agents specialised in the sale of other particular products
46190	Agents involved in the sale of a variety of goods
46210	Wholesale of grain, unmanufactured tobacco, seeds and animal feeds
46220	Wholesale of flowers and plants
46230	Wholesale of live animals
46240	Wholesale of hides, skins and leather
46310	Wholesale of fruit and vegetables
46320	Wholesale of meat and meat products
46330	Wholesale of dairy products, eggs and edible oils and fats
46341	Wholesale of fruit and vegetable juices, mineral water and soft drinks
46342	Wholesale of wine, beer, spirits and other alcoholic beverages
46350	Wholesale of tobacco products
46360	Wholesale of sugar and chocolate and sugar confectionery
46370	Wholesale of coffee, tea, cocoa and spices
46380	Wholesale of other food, including fish, crustaceans and molluscs
46390	Non-specialised wholesale of food, beverages and tobacco
46410	Wholesale of textiles
46420	Wholesale of clothing and footwear
46431	Wholesale of audio tapes, records, CDs and video tapes and the equipment on which these are played
46439	Wholesale of radio, television goods & electrical household appliances (other than records, tapes, CD's & video tapes and the equipment used for playing them)
46440	Wholesale of china and glassware and cleaning materials
46450	Wholesale of perfume and cosmetics
46460	Wholesale of pharmaceutical goods
46470	Wholesale of furniture, carpets and lighting equipment
46480	Wholesale of watches and jewellery
46491	Wholesale of musical instruments
46499	Wholesale of household goods (other than musical instruments) n.e.c
46510	Wholesale of computers, computer peripheral equipment and software
46520	Wholesale of electronic and telecommunications equipment and parts
46610	Wholesale of agricultural machinery, equipment and supplies
46620	Wholesale of machine tools
46630	Wholesale of mining, construction and civil engineering machinery
46640	Wholesale of machinery for the textile industry and of sewing and knitting machines
46650	Wholesale of office furniture
46660	Wholesale of other office machinery and equipment
46690	Wholesale of other machinery and equipment
46711	Wholesale of petroleum and petroleum products
46719	Wholesale of other fuels and related products
46720	Wholesale of metals and metal ores
46730	Wholesale of wood, construction materials and sanitary equipment
46740	Wholesale of hardware, plumbing and heating equipment and supplies
46750	Wholesale of chemical products
46760	Wholesale of other intermediate products
46770	Wholesale of waste and scrap
46900	Non-specialised wholesale trade
47110	Retail sale in non-specialised stores with food, beverages or tobacco predominating
47190	Other retail sale in non-specialised stores
47210	Retail sale of fruit and vegetables in specialised stores
47220	Retail sale of meat and meat products in specialised stores
47230	Retail sale of fish, crustaceans and molluscs in specialised stores
47240	Retail sale of bread, cakes, flour confectionery and sugar confectionery in specialised stores
47250	Retail sale of beverages in specialised stores
47260	Retail sale of tobacco products in specialised stores
47290	Other retail sale of food in specialised stores
47300	Retail sale of automotive fuel in specialised stores
47410	Retail sale of computers, peripheral units and software in specialised stores
47421	Retail sale of mobile telephones
47429	Retail sale of telecommunications equipment other than mobile telephones
47430	Retail sale of audio and video equipment in specialised stores
47510	Retail sale of textiles in specialised stores
47520	Retail sale of hardware, paints and glass in specialised stores
47530	Retail sale of carpets, rugs, wall and floor coverings in specialised stores
47540	Retail sale of electrical household appliances in specialised stores
47591	Retail sale of musical instruments and scores
47599	Retail of furniture, lighting, and similar (not musical instruments or scores) in specialised store
47610	Retail sale of books in specialised stores
47620	Retail sale of newspapers and stationery in specialised stores
47630	Retail sale of music and video recordings in specialised stores
47640	Retail sale of sports goods, fishing gear, camping goods, boats and bicycles
47650	Retail sale of games and toys in specialised stores
47710	Retail sale of clothing in specialised stores
47721	Retail sale of footwear in specialised stores
47722	Retail sale of leather goods in specialised stores
47730	Dispensing chemist in specialised stores
47741	Retail sale of hearing aids
47749	Retail sale of medical and orthopaedic goods in specialised stores (not incl. hearing aids) n.e.c.
47750	Retail sale of cosmetic and toilet articles in specialised stores
47760	Retail sale of flowers, plants, seeds, fertilizers, pet animals and pet food in specialised stores
47770	Retail sale of watches and jewellery in specialised stores
47781	Retail sale in commercial art galleries
47782	Retail sale by opticians
47789	Other retail sale of new goods in specialised stores (not commercial art galleries and opticians)
47791	Retail sale of antiques including antique books in stores
47799	Retail sale of other second-hand goods in stores (not incl. antiques)
47810	Retail sale via stalls and markets of food, beverages and tobacco products
47820	Retail sale via stalls and markets of textiles, clothing and footwear
47890	Retail sale via stalls and markets of other goods
47910	Retail sale via mail order houses or via Internet
47990	Other retail sale not in stores, stalls or markets
SECTION H	Transportation and storage
49100	Passenger rail transport, interurban
49200	Freight rail transport
49311	Urban and suburban passenger railway transportation by underground, metro and similar systems
49319	Other urban, suburban or metropolitan passenger land transport (not underground, metro or similar)
49320	Taxi operation
49390	Other passenger land transport
49410	Freight transport by road
49420	Removal services
49500	Transport via pipeline
50100	Sea and coastal passenger water transport
50200	Sea and coastal freight water transport
50300	Inland passenger water transport
50400	Inland freight water transport
51101	Scheduled passenger air transport
51102	Non-scheduled passenger air transport
51210	Freight air transport
51220	Space transport
52101	Operation of warehousing and storage facilities for water transport activities
52102	Operation of warehousing and storage facilities for air transport activities
52103	Operation of warehousing and storage facilities for land transport activities
52211	Operation of rail freight terminals
52212	Operation of rail passenger facilities at railway stations
52213	Operation of bus and coach passenger facilities at bus and coach stations
52219	Other service activities incidental to land transportation, n.e.c.
52220	Service activities incidental to water transportation
52230	Service activities incidental to air transportation
52241	Cargo handling for water transport activities
52242	Cargo handling for air transport activities
52243	Cargo handling for land transport activities
52290	Other transportation support activities
53100	Postal activities under universal service obligation
53201	Licensed carriers
53202	Unlicensed carriers
SECTION I	Accommodation and food service activities
55100	Hotels and similar accommodation
55201	Holiday centres and villages
55202	Youth hostels
55209	Other holiday and other collective accommodation
55300	Recreational vehicle parks, trailer parks and camping grounds
55900	Other accommodation
56101	Licenced restaurants
56102	Unlicenced restaurants and cafes
56103	Take-away food shops and mobile food stands
56210	Event catering activities
56290	Other food services
56301	Licenced clubs
56302	Public houses and bars
SECTION J	Information and communication
58110	Book publishing
58120	Publishing of directories and mailing lists
58130	Publishing of newspapers
58141	Publishing of learned journals
58142	Publishing of consumer and business journals and periodicals
58190	Other publishing activities
58210	Publishing of computer games
58290	Other software publishing
59111	Motion picture production activities
59112	Video production activities
59113	Television programme production activities
59120	Motion picture, video and television programme post-production activities
59131	Motion picture distribution activities
59132	Video distribution activities
59133	Television programme distribution activities
59140	Motion picture projection activities
59200	Sound recording and music publishing activities
60100	Radio broadcasting
60200	Television programming and broadcasting activities
61100	Wired telecommunications activities
61200	Wireless telecommunications activities
61300	Satellite telecommunications activities
61900	Other telecommunications activities
62011	Ready-made interactive leisure and entertainment software development
62012	Business and domestic software development
62020	Information technology consultancy activities
62030	Computer facilities management activities
62090	Other information technology service activities
63110	Data processing, hosting and related activities
63120	Web portals
63910	News agency activities
63990	Other information service activities n.e.c.
SECTION K	Financial and insurance activities
64110	Central banking
64191	Banks
64192	Building societies
64201	Activities of agricultural holding companies
64202	Activities of production holding companies
64203	Activities of construction holding companies
64204	Activities of distribution holding companies
64205	Activities of financial services holding companies
64209	Activities of other holding companies n.e.c.
64301	Activities of investment trusts
64302	Activities of unit trusts
64303	Activities of venture and development capital companies
64304	Activities of open-ended investment companies
64305	Activities of property unit trusts
64306	Activities of real estate investment trusts
64910	Financial leasing
64921	Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors
64922	Activities of mortgage finance companies
64929	Other credit granting n.e.c.
64991	Security dealing on own account
64992	Factoring
64999	Financial intermediation not elsewhere classified
65110	Life insurance
65120	Non-life insurance
65201	Life reinsurance
65202	Non-life reinsurance
65300	Pension funding
66110	Administration of financial markets
66120	Security and commodity contracts dealing activities
66190	Activities auxiliary to financial intermediation n.e.c.
66210	Risk and damage evaluation
66220	Activities of insurance agents and brokers
66290	Other activities auxiliary to insurance and pension funding
66300	Fund management activities
SECTION L	Real estate activities
68100	Buying and selling of own real estate
68201	Renting and operating of Housing Association real estate
68202	Letting and operating of conference and exhibition centres
68209	Other letting and operating of own or leased real estate
68310	Real estate agencies
68320	Management of real estate on a fee or contract basis
SECTION M	Professional, scientific and technical activities
69101	Barristers at law
69102	Solicitors
69109	Activities of patent and copyright agents; other legal activities n.e.c.
69201	Accounting and auditing activities
69202	Bookkeeping activities
69203	Tax consultancy
70100	Activities of head offices
70210	Public relations and communications activities
70221	Financial management
70229	Management consultancy activities other than financial management
71111	Architectural activities
71112	Urban planning and landscape architectural activities
71121	Engineering design activities for industrial process and production
71122	Engineering related scientific and technical consulting activities
71129	Other engineering activities
71200	Technical testing and analysis
72110	Research and experimental development on biotechnology
72190	Other research and experimental development on natural sciences and engineering
72200	Research and experimental development on social sciences and humanities
73110	Advertising agencies
73120	Media representation services
73200	Market research and public opinion polling
74100	specialised design activities
74201	Portrait photographic activities
74202	Other specialist photography
74203	Film processing
74209	Photographic activities not elsewhere classified
74300	Translation and interpretation activities
74901	Environmental consulting activities
74902	Quantity surveying activities
74909	Other professional, scientific and technical activities n.e.c.
74990	Non-trading company non trading
75000	Veterinary activities
SECTION N	Administrative and support service activities
77110	Renting and leasing of cars and light motor vehicles
77120	Renting and leasing of trucks and other heavy vehicles
77210	Renting and leasing of recreational and sports goods
77220	Renting of video tapes and disks
77291	Renting and leasing of media entertainment equipment
77299	Renting and leasing of other personal and household goods
77310	Renting and leasing of agricultural machinery and equipment
77320	Renting and leasing of construction and civil engineering machinery and equipment
77330	Renting and leasing of office machinery and equipment (including computers)
77341	Renting and leasing of passenger water transport equipment
77342	Renting and leasing of freight water transport equipment
77351	Renting and leasing of air passenger transport equipment
77352	Renting and leasing of freight air transport equipment
77390	Renting and leasing of other machinery, equipment and tangible goods n.e.c.
77400	Leasing of intellectual property and similar products, except copyright works
78101	Motion picture, television and other theatrical casting activities
78109	Other activities of employment placement agencies
78200	Temporary employment agency activities
78300	Human resources provision and management of human resources functions
79110	Travel agency activities
79120	Tour operator activities
79901	Activities of tourist guides
79909	Other reservation service activities n.e.c.
80100	Private security activities
80200	Security systems service activities
80300	Investigation activities
81100	Combined facilities support activities
81210	General cleaning of buildings
81221	Window cleaning services
81222	Specialised cleaning services
81223	Furnace and chimney cleaning services
81229	Other building and industrial cleaning activities
81291	Disinfecting and exterminating services
81299	Other cleaning services
81300	Landscape service activities
82110	Combined office administrative service activities
82190	Photocopying, document preparation and other specialised office support activities
82200	Activities of call centres
82301	Activities of exhibition and fair organisers
82302	Activities of conference organisers
82911	Activities of collection agencies
82912	Activities of credit bureaus
82920	Packaging activities
82990	Other business support service activities n.e.c.
SECTION O	Public administration and defence; compulsory social security
84110	General public administration activities
84120	Regulation of health care, education, cultural and other social services, not incl. social security
84130	Regulation of and contribution to more efficient operation of businesses
84210	Foreign affairs
84220	Defence activities
84230	Justice and judicial activities
84240	Public order and safety activities
84250	Fire service activities
84300	Compulsory social security activities
SECTION P	Education
85100	Pre-primary education
85200	Primary education
85310	General secondary education
85320	Technical and vocational secondary education
85410	Post-secondary non-tertiary education
85421	First-degree level higher education
85422	Post-graduate level higher education
85510	Sports and recreation education
85520	Cultural education
85530	Driving school activities
85590	Other education n.e.c.
85600	Educational support services
SECTION Q	Human health and social work activities
86101	Hospital activities
86102	Medical nursing home activities
86210	General medical practice activities
86220	Specialists medical practice activities
86230	Dental practice activities
86900	Other human health activities
87100	Residential nursing care facilities
87200	Residential care activities for learning difficulties, mental health and substance abuse
87300	Residential care activities for the elderly and disabled
87900	Other residential care activities n.e.c.
88100	Social work activities without accommodation for the elderly and disabled
88910	Child day-care activities
88990	Other social work activities without accommodation n.e.c.
SECTION R	Arts, entertainment and recreation
90010	Performing arts
90020	Support activities to performing arts
90030	Artistic creation
90040	Operation of arts facilities
91011	Library activities
91012	Archives activities
91020	Museums activities
91030	Operation of historical sites and buildings and similar visitor attractions
91040	Botanical and zoological gardens and nature reserves activities
92000	Gambling and betting activities
93110	Operation of sports facilities
93120	Activities of sport clubs
93130	Fitness facilities
93191	Activities of racehorse owners
93199	Other sports activities
93210	Activities of amusement parks and theme parks
93290	Other amusement and recreation activities n.e.c.
SECTION S	Other service activities
94110	Activities of business and employers membership organisations
94120	Activities of professional membership organisations
94200	Activities of trade unions
94910	Activities of religious organisations
94920	Activities of political organisations
94990	Activities of other membership organisations n.e.c.
95110	Repair of computers and peripheral equipment
95120	Repair of communication equipment
95210	Repair of consumer electronics
95220	Repair of household appliances and home and garden equipment
95230	Repair of footwear and leather goods
95240	Repair of furniture and home furnishings
95250	Repair of watches, clocks and jewellery
95290	Repair of personal and household goods n.e.c.
96010	Washing and (dry-)cleaning of textile and fur products
96020	Hairdressing and other beauty treatment
96030	Funeral and related activities
96040	Physical well-being activities
96090	Other service activities n.e.c.
SECTION T	Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use
97000	Activities of households as employers of domestic personnel
98000	Residents property management
98100	Undifferentiated goods-producing activities of private households for own use
98200	Undifferentiated service-producing activities of private households for own use
SECTION U	Activities of extraterritorial organisations and bodies
99000	Activities of extraterritorial organisations and bodies
99999	Dormant Company