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Speaker 1: This is what the plucks.

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Speaker 2: I'm brand, I'm justin and a Friday, the twenty sixth

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Speaker 2: of July, Dozzy boy. We already know that Sydney and

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Speaker 2: Melbourne are quote million dollar cities, but we may have

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Speaker 2: some new entrance soon. According to Domain, they expect Brisbane's

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Speaker 2: median house price will cross the one million dollar mark

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Speaker 2: in the next three months, and Perth is expected to

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Speaker 2: hit the one million dollar marks by June next year.

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Speaker 2: I'm thinking more like a million dollar nation.

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Speaker 1: Getting harder and harder, be man. But one way to

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Speaker 1: get a little bit of cash in your pocket is

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Speaker 1: through our weekly game Quick six plus dam. If you

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Speaker 1: knew which ASEX listed company just sold a twenty percent

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Speaker 1: steak in Nobu, you'd be one third of your way

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Speaker 1: to winning the fifty bucks from last week's quiz. And

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Speaker 1: we are on again today. All you need to do

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Speaker 1: is download the Bucks app, have you notifications turned on,

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Speaker 1: and were the first to answer three business or finance

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Speaker 1: questions correctly? And it's all yours.

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Speaker 2: Three highly insightful stories today, Dozzy boy, Let's do it

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Speaker 2: for our first Deloitte Australia has seen its revenue dropped

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Speaker 2: by more than seventy million dollars for the last financial

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Speaker 2: year after its consulting division was hit hard by a

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Speaker 2: slowdown in spending.

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Speaker 1: And here I was thinking the Big four were finally

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Speaker 1: out of the woods. He's not those so tell me more,

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Speaker 1: be man, Jusey boy.

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Speaker 2: Deloitte is one of the big four global professional services firms,

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Speaker 2: alongside PwC, EY and KPMG.

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Speaker 1: They do everything from order to risk, to accounting, to

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Speaker 1: consulting to digital whatever digital means, Juzzy Boy.

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Speaker 2: Since PWC's scandal and sale of its government division, Deloitte

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Speaker 2: has actually taken the top spot in Australia amongst the

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Speaker 2: big four.

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Speaker 1: But that doesn't mean it's all daffodils and roses and

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Speaker 1: billings for Deloitte.

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Speaker 2: That's because it warned of a two point four percent

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Speaker 2: drop in its FY twenty four revenue, or around seventy

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Speaker 2: million buccarinis.

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Speaker 1: And what's the reason for this decline?

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Speaker 2: Well, Jesse Boy, it seems like quote scrutiny is the

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Speaker 2: word they're running with here.

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Speaker 1: We're talking political and public scrutiny off the back of

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Speaker 1: the PwC controversy and.

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Speaker 2: Also economic scrutiny in that companies are being a little

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Speaker 2: more conservative with their spending on these sorts of services.

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Speaker 1: And it's like the PwC saga has also heard other

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Speaker 1: organizations as well.

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Speaker 2: Is that right, Josy boy Well, I'm wondering what is

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Speaker 2: the key learning here? One bad actor can tar all

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Speaker 2: actors with the same brush. We know the impact that

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Speaker 2: the PwC tax scandal had on the PwC wider business.

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Speaker 1: Selling out their government business for one dollar, then CEO

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Speaker 1: stepped down, then an intense Senate inquiry. But what we

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Speaker 1: didn't know is how this scrutiny has significantly impacted the

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Speaker 1: consulting industry as a whole. And it's all happening at

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Speaker 1: a tough time economically for professional services firms. In fact,

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Speaker 1: j Boy KPMG has cut more than five hundred staff,

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Speaker 1: or more than ten percent of its workforce, and that's

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Speaker 1: just over the last eighteen months. EY has cut more

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Speaker 1: than three hundred and eighty staff since November last year.

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Speaker 2: And PwC made more than five percent of its staff

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Speaker 2: redundant in March this year.

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Speaker 1: So Deloitte's got a bit of work to do if

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Speaker 1: it wants to maintain its title as the leading professional

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Speaker 1: services fan.

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Speaker 2: For our second story. Tesla has seen at share price

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Speaker 2: drop twelve percent after it saw an enormous drop in

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Speaker 2: quarterly profit thanks to more and more electric vehicle competition.

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Speaker 1: I feel like Tesla's shareholders are just on a roller coaster,

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Speaker 1: but they don't want to get up. Tell me what

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Speaker 1: now does he? Boy? We know?

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Speaker 2: Tesla is the electric vehicle company run by Elon Musk,

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Speaker 2: which was the leader in the EV pack, but.

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Speaker 1: B man as the electric vehicle market has become more

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Speaker 1: appealing for consumers. Almost all existing carmakers have created their

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Speaker 1: own electric vehicle divisions as well, but now be man.

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Speaker 1: After a topsy turvy year, Tesla has warned that while

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Speaker 1: its revenue is nearly one billion dollars above expectations, it's

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Speaker 1: quarterly profits dropped get this forty five.

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Speaker 2: Percent and this was the second straight quarterway Tesla had

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Speaker 2: suffered a loss.

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Speaker 1: But the good news Elon Musk reckons he can produce

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Speaker 1: twenty billion humanoid robot that everyone on Earth is going

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Speaker 1: to want. He's also got the power wall. He's also

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Speaker 1: got the robut taxis as well. Next minute, Tesla's share

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Speaker 1: price drops twelve percent. Investors aren't really sure what Tesla's

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Speaker 1: core business is anymore. So what is the key learning here?

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Speaker 2: As an evolving business, you've always got to keep your

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Speaker 2: eyes on the main prize.

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Speaker 1: More recently, be Man. It's fair to say that Tesla

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Speaker 1: has had a shifting focus on what's important to its business.

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Speaker 2: And the twelve percent drop in its share price really

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Speaker 2: reveals the risks when investors lose faith in a company's

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Speaker 2: core business. And right now, Juzzy Boy investors patients with

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Speaker 2: big pivots from the world's biggest tech companies, it's proved

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Speaker 2: to be thin.

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Speaker 1: Remember when Facebook made a mega shift to the metaverse.

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Speaker 2: I do it cost them more than forty six billion

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Speaker 2: US dollars.

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Speaker 1: Thankfully for them, they were able to backtrack and refocus.

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Speaker 2: Now, Josi Wait Tesla investors are concerned that Tesla may

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Speaker 2: continue pushing these new initiatives a little too far, and with.

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Speaker 1: That it could become hard to go back to what

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Speaker 1: actually made Tesla successful in the first place, electric vehicles.

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Speaker 2: For our third and final story, Country Road Group is

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Speaker 2: expected to restructure its business and reshape its team after

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Speaker 2: a tough couple of years in the retail space.

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Speaker 1: Rough days ahead for Country roadstaff by Man. So what

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Speaker 1: is the story.

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Speaker 2: Here well, Juzy Boy. Country Road Group is the fashion

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Speaker 2: retailer that's currently owned by South African company Woolworth's Holdings.

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Speaker 1: They also own Nimco, Trenery, Witchery and Politics now be Man.

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Speaker 1: We know Country Road as the kind of up market

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Speaker 1: but not two upmarket retailer of simple and stylish clothes.

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Speaker 2: But does it boy thinks have been anything but simple

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Speaker 2: and stylish over the past few years.

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Speaker 1: Yep. Not only has country Road been facing financial issues,

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Speaker 1: but it's also faced arrange at workplace scandals.

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Speaker 2: Earlier this year, which actually led to two executives leaving

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Speaker 2: and an external investigation into the company.

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Speaker 1: But now be Man, country Road has brought in a

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Speaker 1: consulting firm that specialized in mending culture within organizations.

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Speaker 2: And this could see a major restructure of Country Road

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Speaker 2: Groups operations and is likely to see a number of

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Speaker 2: jobs cut as well.

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Speaker 1: And if that wasn't about enough, Country Road has been

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Speaker 1: struggling with a five percent drop in sales for the

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Speaker 1: first half of twenty twenty four.

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Speaker 2: Sounds like Country Roads seeing more than just employee morale

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Speaker 2: drain from the company.

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Speaker 1: So what is the key learning here?

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Speaker 2: As sour company culture can very easily sour the bottom

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Speaker 2: line of a business man.

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Speaker 1: We know poor culture and an organization can directly or

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Speaker 1: indirectly increase a business's costs and impact its profitability.

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Speaker 2: Think high employee turnover and the associated recruitment costs. In fact,

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Speaker 2: Josey Boy disengaged employees cost their companies around eighteen percent

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Speaker 2: of their annual salary. And then, separate to the employee stuff,

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Speaker 2: there's the cost of potentially losing customers.

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Speaker 1: Yeah, because in a time where company culture is more

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Speaker 1: visible than ever, customers can pull away from brands which

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Speaker 1: don't align with their value.

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Speaker 2: So for Country Road, working on its organizational culture isn't

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Speaker 2: just about lifting employee spirit.

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Speaker 1: Nope, it's also about protecting the business's profitability and its

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Speaker 1: long term sustainability. Yep, Flux Am, if you want fifty

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Speaker 1: bucks in your pocket this Friday before a big weekend ahead,

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Speaker 1: there is one place to go. It's all in the

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Speaker 1: Flux app. Three business of finance questions. If you're the

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Speaker 1: first to answer, the fifty bucks is yours. Make sure

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Speaker 1: to download the Flux app and turn your notifications on.

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Speaker 2: Thanks for listening and we'll see you on Monday.