Day: 8 May 2012

With a market share of up to 17 percent, Sainsbury’s is the third biggest supermarket chain in the country behind Tesco and Asda, but in Fallowfield Sainsbury’s arguably benefits from a monopoly.

Tesco and the Co-operative stores are also in close proximity to most students residing in Fallowfield, but neither of them is big enough to offer the wide range of products available at Sainsbury’s. This gives Sainsbury’s a very privileged position; they sell what others don’t and therefore attract the majority of regional consumers almost by default. There is, however, a suspicion that Sainsbury’s are taking advantage of this scarcity power by setting their prices higher than the market average.

To determine whether this was fact or fiction, we went to Sainsbury’s, Tesco and Lidl and bought an identical basket of products from each one. The basket included 12 generic student purchases such as pasta, ten-inch pizzas and beer. None of the goods purchased were from the basics or values range; nine were house brands and the other three were recognised brand products that can be located at any store.

Contrary to popular belief, Sainsbury’s was not the most expensive supermarket from the sample.  Whilst the basket purchased at Lidl was predictably cheaper than the other two stores at £17.17, the purchases from Sainsbury’s amounted to £20.39, just over 50p shy of the £20.97 total from Tesco express.

On top of shopping at the mentioned locations, the same basket of goods was also purchased from the Sainsbury’s online store. This was to check if there was any truth to the widespread rumour that the Sainsbury’s in Fallowfield is more expensive than its other outlets. Results point towards the most expensive Sainsbury’s myth to be just that. The basket amounted to exactly the same as the basket purchased in Fallowfield.

As these results show the problem isn’t Sainsbury’s, it’s inflation. Since the beginning of 2010, the rate has not fallen below three percent and has at times soared above the two percent target by the Bank of England, consequently putting a strain on students.

There are social ramifications to these higher inflation levels. Students intent on getting more for less will consider unorthodox methods to save money, even if it means stealing.  A common tactic used by shoplifters was to subtly pick up a crate of beer on offer at the entrance of the Fallowfield Sainsbury’s and walk straight out of the door with a random receipt in their mouth to cast away any suspicion of stealing. Countermeasures have now been put in place to prevent such fraudulent behaviour. Whenever a crate of beer is purchased, staff immediately place orange tape across it to signify that it has been rightfully purchased.

Alternative cost-saving methods include freeganism. Cost wary customers may wish to trawl through the Sainsbury’s bins to pick out any food that has been discarded by the supermarket because it is approaching its sell by date. An anonymous source who has regularly been ‘bin diving’ told us that although it is illegal, the behaviour can be justified. “With money at such a premium, it seems stupid not to pick out unwanted food that is in perfectly good condition. I consider myself a champion of conservation!” they said.

The cost of effort is much higher for students than other demographics and Sainsbury’s could indeed capitalize on a large group of people too lazy to venture to lower profile supermarkets that are perhaps cheaper. Their prices, however, are merely a reflection of increasing prices in every industry. Until inflation falls, Sainsbury’s are going to have to shoulder the blame from angry students who are struggling to cope with rising prices.

The Government has released the details of a pilot scheme announced in this year’s budget to provide start-up business loans to young people. The move aims to tackle the paradoxical situation that makes it much easier to get a loan to study business at degree level than to get the money to actually start a business. Anyone aged between 18 and 24 with a feasible business idea could be eligible for one of the loans, which will be on average £2,500 from a fund totalling £9m. The loans will have a 12-month repayment holiday, a loan period of three-five years and an interest rate equal to the RPI plus three percent (the same as the interest on a student loan for graduates earning over £41,000).

After the Labour Government’s push to get more young people to university in their 2001 manifesto, this initiative seems like a positive step towards righting some of the wrongs of that policy, as well as a proactive means of boosting the economy and helping young people with an interest in business. The scheme is supported by the National Youth Enterprise Working Group, a nationwide network which includes the Prince’s Trust, Virgin Media Pioneers and the Institute of Directors, which is working towards coordinated support for young entrepreneurs.

Richard Branson said of the initiative, “This has the potential to transform the prospects of thousands of young people. The entrepreneurs of today will be the job creators of tomorrow so I’m delighted that the Government has listened to those at the very start of their careers.”

“The country is full of gifted and enterprising people so this pilot, which crucially has business mentoring and support at its heart, will help prevent a lost generation of talent.”

As well as the loan, successful applicants will receive access to business mentors and training, hopefully giving recipients a greater chance of success.  Though pitched as an alternative to studying at university, there currently seems to be no condition on the loan excluding anyone with a degree, so one of these loans may also be an interesting alternative to facing the tough graduate jobs market for this year’s graduates (aged up to 24).

Up until 2^nd May the Government was seeking expressions of interest from businesses and consortiums that could help support the scheme. Further details of the scheme are expected in the next few weeks. The pilot scheme will run from May 28^th 2012 until March 31^st 2013.

Students and their fees or loans have seemingly taken a battering recently on both sides of the Atlantic. Student fee rises in England received a great deal of media attention. However it seems that this interest is shifting to that of the United States, as once again Obama seems to be fighting against Congress.

Obama is currently on a major mission to push through Congress a cap on student loan costs, hoping that in doing so he will reconnect with many of the young voters who were so instrumental in his historic 2008 Presidential victory.

Currently standing at 3.4 percent, there is a possibility that interest may double in July. This will cause the average college graduate in America to lose $1,000 each year in interest rate costs over the life of the loan.

Although it would seem improper to argue for the rise, there are some sound financial and moral arguments from both sides. Many, including leading Republican candidate Mitt Romney, are firmly in favour of the proposal, citing ‘bleak job prospects’ as a reason to ‘extend the current low rate’. It would mean that individuals looking at further education would not be put off and those through and out the other side not so monetarily squeezed. Obama himself at 51 said he only paid off his loans eight years ago and previous to landing arguably the most prestigious job in the world, had struggled to save up for his children’s college educations whilst still trying to pay off for his.

On the other hand, those in favour of the rise see it as an opportunity to pay off the national debt with the higher revenues received. It is unsure how much the money gained would offset the $15 trillion debt, however every change would provide a better future for all involved, not only the college educated.

America would be more financially stable and hopefully able to spend the revenue increase on social benefits that would aid every American and not just the fortunate educated few.

Once again there lies a tough road ahead for Obama. With the US national debt ballooning furiously, it might be time that students take a hit to help carry the burden of a nation.

For those interested in watching Obama slow jam with Jimmy Fallon and The Roots, follow this smart code to the Youtube channel. You could never imagine David Cameron doing such a thing!

With youth unemployment making headlines, it is clear that CV building whilst at university is vital for access to the limited places on both internships and for a graduate job. Whilst first job expectations have been considered to be unrealistically high, I want to argue that such jobs are within the reach of students from any background and university, so long as they put in the effort and initiative.

Second year internships, whilst massively beneficial, are not the be all and end all and for first year students, good use of this summer can really help with developing and demonstrating the skills required for future work experience or internship applications. Too many students today give up at the first hurdle, be it unsuccessful past applications or the belief that if a work experience is unpaid it is automatically inaccessible to them. This does not have to be the case. The opportunities are vast and demonstrating to employers that you don’t just give up there can be incredibly valuable.

The University of Manchester has fantastic funding and bursary schemes aimed at helping people pursue work experiences that may go unpaid and award money in the hundreds to students with viable and beneficial (be it for degree or career) summer plans. Whether it’s an official programme or your own personal applications to work shadow, picking up the phone, searching the web or sending an e-mail can make all the difference, especially when combined with university or even governmental support.

CV building does not have to stop there however and sitting in an office over the summer isn’t necessarily the only thing a future employer looks for. With the emphasis on work experience being vital for first jobs, many students find themselves in similar positions to those they are competing against in their applications, all of whom have a couple of weeks work experience here and there. To think outside the box and demonstrate that you won’t just get the job done, but that you will contribute to a positive and interesting working environment is something that can make applicants that little bit different.

From charity fundraising, to career or interest based travel, or even setting up a small summer business, the opportunities for both an enjoyable and productive summer are vast and can all be covered through various forms of funding.

Written by Emily Bunting & Oliver Taylor

From signing university contracts, to stern e-mails and talks in lectures, plagiarism in the world of academia can ruin a degree, a career and even a profession. The hard line taken by the University of Manchester demonstrates the seriousness of such offences, with online essay submissions being scanned through the use of high-tech software and a strict illegal drugs policy. With university end of year exams just around the corner, we here at the Business and Finance section of the Mancunion have decided to look into a market where the apparently stark line of plagiarism and performance enhancement becomes all the more grey.

Thousands of students across the country will be graduating this year, with minimum expectations of achieving a 2:1 degree (the minimum class required for most graduate jobs). With the environment of a near-saturated jobs market, the looming repayment of student loans on the horizon and alternatives of increasingly expensive masters programmes, the pressure to perform is higher than ever. This can be seen to have contributed to the creation of a more alternative student market. The seemingly most lucrative of businesses designed to exploit these fears, are businesses set up to write tailored essays for students and the demand for cognitive enhancing ‘smart drugs’.

Students across the country appear willing to cough up as much as £200 of their hard earned government loans to pay for essays written to their specification in under 24 hours. This comes with a guaranteed classification for the essay (prices varying according to the desired grade) and apparently no risk of being caught by the essay scanning systems. With such an attractive offer, it is no surprise that the essay writing market in the UK is valued at over £200 million.

The widespread occurrence, and even to some degree acceptance, of cheating is apparent on looking at the results of a 2010 Manchester University study, which found that 45 percent of students were ‘sure’ that in the past year another student had cheated in some form of work submitted towards their degree. Such figures illustrate the extent of demand for services such as essay writing.

It is clear however, that students will not stop there. The demanding student lifestyle of continuous essays and early morning lectures, on top of late nights (every night) and hours of sport training for some, seems to have made it ever harder to study and make productive use of time spent in the library. A growing number of students find drugs such as Ritalin and Modafinil (intended to treat disorders such as ADHD and narcolepsy) can help them block out distractions, stay awake for longer and therefore study harder.

Whilst there seem to be mixed conceptions of the extent of the ‘smart drugs’ market, on asking around, we needed little effort to find many students who had at least tried one of these (technically illegal if not prescribed) smart drugs. Simply googling ‘buy Ritalin’ directs you to a large number of websites openly selling the class B drug without prescription, where it retails for around £1 – £3 a pill. The equivalent search for Modafinil is even more startling. A company called Sheffield Modafinil actively markets the drug towards students and the testimonials page contains two from students at the University of Manchester. On the black market, Modafinil retails at between £2-£3 a pill depending on the quantity purchased. It is more expensive to buy legally (in other countries) and the equivalent dose costs £4. The illegal and therefore unregulated market, as well as the taboo nature of the product, means that some unscrupulous sellers are profiteering by selling placebos or less effective substances to boost their profit margins. No academic has ever tried to estimate the value of the UK smart drugs market, however increasing jobs and university pressure could suggest potential for growth.

If buying smart drugs and online essays are as effective as some (but importantly not all) claim, it may become difficult to compare a student’s performance and the value of their degree. For now however, the current situation is far from ideal. Manchester University has no official policy on cognition enhancers and whilst essay purchasing is contractually cheating, the expanding market seems to suggest certain levels of their success.