Deloitte's disappointing day | Tesla's business is changing | Country Road's culture problem

This is what the plucks.

I'm brand, I'm justin and a Friday, the twenty sixth of July, Dozzy boy. We already know that Sydney and Melbourne are quote million dollar cities, but we may have some new entrance soon. According to Domain, they expect Brisbane's median house price will cross the one million dollar mark in the next three months, and Perth is expected to hit the one million dollar marks by June next year. I'm thinking more like a million dollar nation.

Getting harder and harder, be man. But one way to get a little bit of cash in your pocket is through our weekly game Quick six plus dam. If you knew which ASEX listed company just sold a twenty percent steak in Nobu, you'd be one third of your way to winning the fifty bucks from last week's quiz. And we are on again today. All you need to do is download the Bucks app, have you notifications turned on, and were the first to answer three business or finance questions correctly? And it's all yours.

Three highly insightful stories today, Dozzy boy, Let's do it for our first Deloitte Australia has seen its revenue dropped by more than seventy million dollars for the last financial year after its consulting division was hit hard by a slowdown in spending.

And here I was thinking the Big four were finally out of the woods. He's not those so tell me more, be man, Jusey boy.

Deloitte is one of the big four global professional services firms, alongside PwC, EY and KPMG.

They do everything from order to risk, to accounting, to consulting to digital whatever digital means, Juzzy Boy.

Since PWC's scandal and sale of its government division, Deloitte has actually taken the top spot in Australia amongst the big four.

But that doesn't mean it's all daffodils and roses and billings for Deloitte.

That's because it warned of a two point four percent drop in its FY twenty four revenue, or around seventy million buccarinis.

And what's the reason for this decline?

Well, Jesse Boy, it seems like quote scrutiny is the word they're running with here.

We're talking political and public scrutiny off the back of the PwC controversy and.

Also economic scrutiny in that companies are being a little more conservative with their spending on these sorts of services.

And it's like the PwC saga has also heard other organizations as well.

Is that right, Josy boy Well, I'm wondering what is the key learning here? One bad actor can tar all actors with the same brush. We know the impact that the PwC tax scandal had on the PwC wider business.

Selling out their government business for one dollar, then CEO stepped down, then an intense Senate inquiry. But what we didn't know is how this scrutiny has significantly impacted the consulting industry as a whole. And it's all happening at a tough time economically for professional services firms. In fact, j Boy KPMG has cut more than five hundred staff, or more than ten percent of its workforce, and that's

And PwC made more than five percent of its staff redundant in March this year.

So Deloitte's got a bit of work to do if it wants to maintain its title as the leading professional services fan.

For our second story. Tesla has seen at share price drop twelve percent after it saw an enormous drop in quarterly profit thanks to more and more electric vehicle competition.

I feel like Tesla's shareholders are just on a roller coaster, but they don't want to get up. Tell me what now does he? Boy? We know?

Tesla is the electric vehicle company run by Elon Musk, which was the leader in the EV pack, but.

B man as the electric vehicle market has become more appealing for consumers. Almost all existing carmakers have created their own electric vehicle divisions as well, but now be man. After a topsy turvy year, Tesla has warned that while its revenue is nearly one billion dollars above expectations, it's quarterly profits dropped get this forty five.

Percent and this was the second straight quarterway Tesla had suffered a loss.

But the good news Elon Musk reckons he can produce twenty billion humanoid robot that everyone on Earth is going to want. He's also got the power wall. He's also got the robut taxis as well. Next minute, Tesla's share price drops twelve percent. Investors aren't really sure what Tesla's core business is anymore. So what is the key learning here?

As an evolving business, you've always got to keep your eyes on the main prize.

More recently, be Man. It's fair to say that Tesla has had a shifting focus on what's important to its business.

And the twelve percent drop in its share price really reveals the risks when investors lose faith in a company's core business. And right now, Juzzy Boy investors patients with big pivots from the world's biggest tech companies, it's proved to be thin.

Remember when Facebook made a mega shift to the metaverse.

I do it cost them more than forty six billion US dollars.

Thankfully for them, they were able to backtrack and refocus.

Now, Josi Wait Tesla investors are concerned that Tesla may continue pushing these new initiatives a little too far, and with.

That it could become hard to go back to what actually made Tesla successful in the first place, electric vehicles.

For our third and final story, Country Road Group is expected to restructure its business and reshape its team after a tough couple of years in the retail space.

Rough days ahead for Country roadstaff by Man. So what is the story.

Here well, Juzy Boy. Country Road Group is the fashion retailer that's currently owned by South African company Woolworth's Holdings.

They also own Nimco, Trenery, Witchery and Politics now be Man. We know Country Road as the kind of up market but not two upmarket retailer of simple and stylish clothes.

But does it boy thinks have been anything but simple and stylish over the past few years.

Yep. Not only has country Road been facing financial issues, but it's also faced arrange at workplace scandals.

Earlier this year, which actually led to two executives leaving and an external investigation into the company.

But now be Man, country Road has brought in a consulting firm that specialized in mending culture within organizations.

And this could see a major restructure of Country Road Groups operations and is likely to see a number of jobs cut as well.

And if that wasn't about enough, Country Road has been struggling with a five percent drop in sales for the first half of twenty twenty four.

Sounds like Country Roads seeing more than just employee morale drain from the company.

So what is the key learning here?

As sour company culture can very easily sour the bottom line of a business man.

We know poor culture and an organization can directly or indirectly increase a business's costs and impact its profitability.

Think high employee turnover and the associated recruitment costs. In fact, Josey Boy disengaged employees cost their companies around eighteen percent of their annual salary. And then, separate to the employee stuff, there's the cost of potentially losing customers.

Yeah, because in a time where company culture is more visible than ever, customers can pull away from brands which don't align with their value.

So for Country Road, working on its organizational culture isn't just about lifting employee spirit.

Nope, it's also about protecting the business's profitability and its long term sustainability. Yep, Flux Am, if you want fifty bucks in your pocket this Friday before a big weekend ahead, there is one place to go. It's all in the Flux app. Three business of finance questions. If you're the first to answer, the fifty bucks is yours. Make sure to download the Flux app and turn your notifications on.

Thanks for listening and we'll see you on Monday.