Business Homework

What extent is profit a good indicator of the success of a business such as BP?

what is profit?
The positive gain from an investment or business operation after subtracting for all expenses. opposite of loss.

profit is a good indicator of the success of a business such as BP, because, If a company get high profit, which means they have large potential of market share, and customer's loyalty. So it will be attract some investors. Therefore they have high market share and financial guarantee, people will think this business may is good. However,if people just concentrate on how is the profit going on, I do not think it is a good way to measure a business is success or not, I know get high profit is the most important aim of every business. But there are other way to measure a business. For example the communication between employer and employees, the manage skills and the cash flow, all of them are good indicator of the success of a business, because if there are bad relationship between employees and employers how a company can operate normally, it will be demotivate their labour, as well as productivity. So if labour has low confidence and a industry has low productivity how a business can achieve successful? Also get high profit not only in long term , but also in short term, for example in summer the demand of ice cream is very high, so people will spend a lot of money on it, thus the ice cream company will get high profit. Whereas in winter, just a few people will purchase on ice cream, so the company will loss a lot, Therefore we can not measure this business is successful or not.

However profit is a good indicator of the success of a business, but it need related other aspect as well, because profit is not a full picture to a business.

Group Exercise 9

In fact, a company employing child labour is illegal, and we always say that is against business ethic in general, Because the child labour is under 16 years old which means they did not achieve the minimum standard education, and because of they spend a lot of time to work instead of to go to school, it bad for their future,which bring the negative externality to the society as well. Whereas,what is business ethic stand for? Business ethic means a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment. In my opinion it is difficult to measure if the business is ethics or not.

For example,Nowadays more and more child would like to take a job rather than to be educated , especially the children's family who living in poverty,in terms of this situation, if the child who can find a job it could helps them in the future development of life standard. So some company, like sportswear business, they want to cut the cost so they recruit and use child labour, even though it is illegal, however, if children want and willing to do it may help them to get money, and for those business use child labour can reduce their cost which is achieve their corporate objective. therefore in this situation it good for both of them. But in another hand, Child do not have enough experience or power to be responsible a job which is suitable to a adult, in constract an adult had completed his education and maybe richness knowledge. Also the child labour in some countries is really poor, they work very hard, but their boss still give them low wages, or some managers in a company do not care if they are child or not and give them some massive missions, and because of that some children get ill or keep bad health. So this behavior is absolutely against the business ethics.

I would like set the sport wear business moves production of its trainers to a country that employs child labour in order to cut the production cost at first of the rank. Because to my way of thinking they may employ the child labour to the first floor to produce the materials,and because they want to reduce the cost they would like to pay low wages to those children, and the mission of children there will not be relax. For example some of those child labour in order to earn more money, they may over working, then they eat a little, go back home very late and so on. those elements above will leading the child labour keep a bad healthy and some safety problems also if they make some mistakes they boss can easy to cut their wages , meanwhile they will be easy to fire by their boss. So i think it is not fair for these child labour. In another hand because of child labour is illegally, they may get a bad work condition from this company because this company need hire them and the child labour do not really care about the work condition, but there are some potential problem. For example if they work there for a long term it will be demotivating, also there will be some accident happened cause of the bad work condition.

In summarise , I think the 9th action is first if the rank, the reason of this is which I mentioned above. How do you think of it?

Dilemma 7 The liar

OK, after I read this Dilemma, I think Bernard do the right thing. Because Bernard and Zjamel have a extent love affair, and for both of them believe each other. However Zjamel doubt Bernard has an affair with Ethel, but I think even though Zjamel doubt them in fact she do not want to trust it, because girls always like this. Therefore if Zjamel ask Bernard about this thing, he will not tell her the truth. For Bernard this is like opportunity cost, because if he tell Zjamel about this truth, it will be hurt her, and then they will break up maybe, and cause of Bernard and Ethel just affair which is means they will not keep a long time, so when they stop this affair, Bernard lose Ethel as well. So the resulting for tell truth to Zjiamel is lose two of them. In contract, if Bernard lying the will change the situation. Like the article mentioned about the Nietzsche's dictum that 'lying is a necessity of life' , so if Bernard tell Zjamel he do not have an affair with Ethel, it makes Zjamel feel better, and then their heart will become more close maybe. This is like trade off, Bermard tell the lie to Zjamel but he keeps Zjamel to stay with him, but he lost Ethel, at the end of the article, they mentioned about that Bernard and Ethel have got board of affair, so it means they stop their affair. Bernard and Zjamel still together. So i think Bernard did a right thing.

The law of diminishing return

After I read Siyi's blog, I decide that I will write about the law of diminishing return as well.

In economics, diminishing returns refers to how the marginal production of a factor of production, in contrast to the increase that would otherwise be normally expected, actually starts to progressively decrease the more of the factor are added.

For example the land, it leading to restrict the production, unless increase the land and improve the production then the performance will be getting better. How is the law of diminishing return relative marginal cost marginal cost is the change in total cost resulting by one extra output per unit.Thus once the diminishing return start, the marginal cost curve slop upwards,
because when the diminishing return achieve the obtain points it start to increase, for example, there are one people use computer to produce a product, therefore when he stop use computer, the product will be stop to produce. Then the industry will recruit one more labour, thus when the first staff go to rest, then second one will continue to produce, therefore the output will be increase. However if the industry still recruit more labour to work in this industry,For instance if there are 3 people use the computer together, it increase the output, but the marginal cost will increase as well, because the company will spend more on the labour salaries, and also the third one may get less salaries than the first and second one, so he will think it not fair and demotivating too.

Transport Economics

What is transport means? Transport is the movement of people or goods for various personal and business reasons. Transport as a derived demand, people want transport because it enable them to do something, for example, business require goods transport in order to carry out activities within their supply chain( supply chain means is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer)
The mode of transport
1. Road-private car
2. Road-bus
3. Rail
4. Air
5. Ferries

Now let’s talk about the factors determine whether a manufacturer should use road or rail transport for distribution of its goods.
I think it depends on different manufacturer. for example for some industries, the road transport almost use van, but the capacity of those car is not enough for transport a lot of goods, so the supplier may need cost more to transport the goods again and again. Opposite, if manufacturer choose rail transport may will solve this problem, because the capacity of rail is quite big, therefore, it reduce the cost. However, sometimes, car transport can satisfy different places demand, but rail can not, because rail transport has specific destination, and road transport is more convenient, it can go to the place which rail transport can not arrive. In another hand, the risk of rail transport may worse than road, because use rail transport will meet some natural problem, like when they transport some goods very expensive and cause rail transport use the train, so the capacity of train is big, so they transport all the goods at once, but if they meet some natural problem like earthquake, they may lost all the goods, but if they use road transport, the natural problem will be better, people can avoid it. Thus I think it depends on different situation.

Explain the main factors affecting the supply of transport services for a transport mode of your choice

I would like talk about rail of transport services.
what are the factors might affect railway,let's see the characteristics of it. At passenger transport side, provide a speedy means of transport over middle to long distance, and into and out of congested cities and towns. Also it can carry large volumes of passengers in an environmentally acceptable way and is able to compete favorably with air on certain domestic routes. At the fright transport side comparative advantage over road for bulk shipments of basic products and for container traffic over longer distance. there are interchange limitations for certain types of potential traffic. Increasingly used fir intra-EU loads. After know these information above that I think infrastructure may affect it, for example if there are some damage of rail, the rail transport services can not operate, also if they meet some natural accident,like coast,Niagara and so on,those accident will stop the rail and it need a long time to fix the rail. In another hand, the factors of economic also can influence it. For example , with the income of people increasing, people may think about to use rail or not, some of them think about maybe rail will be more quickly than other transports services, because their are lower congestion and may lower price, and then they can save more money. Also they may think about, use rail transport services may waste the time, because almost use railway to transport some things need full capacity, if not the cost of railway will increase, so they need to wait, and also there will be some risks, like the natural accidents.So according to the opportunity cost, they may choose use car or another transport services. Also maintain rail, how to operate rail transport will effect it . etc.

I am not sure about my answer is right or not, I tried to understand the question and answer it,Mr Chris can you give me some suggestion.

Economic:How world's biggest ship is delivering our Christmas-all the way from China

Let's talk about the benefits and the cost of use the biggest ship to transport!
benefits:
I think there will be less pollution for unit carried and massive the capacity, because they can transport a lot of containers by a big ship. Also it will be reduce the price , because the cost of transport will decrease for instance the biggest ship just need transport thoes goods at once so it save the cost. low labour cost as well, because there are only 13 crews which this case study mentioned. Also low fuel cost per container carried.
costs:
Build a biggest ship must cost a lot, also if a ship is very big, the speed will be reduce because when they want to pass some canal, for example Suez canal, they will use a lot of time. Also ore railway line needed. If they want to save money, the capacity of this ship must be full.
Then, I would like talk about if UK trade with China.
If UK trade with China, they can spend less money to import, also when they transport some products from China to UK, they can creates jobs for transport. Also it leading to lower cost push inflation, because the products from China is cheap which reduce the price of goods. However, trade with China might reduce the manufacture job in UK.

Problem 7 The unexpected exam: Has teacher been Hypocritical?

This is a interesting article which talk about Logic. Now I am going to discuss the question 'Has teacher been Hypocritical'

As Patricia said there will not have exam between now and the end of the term, which seems like the teacher was joking, he not really want to held a exam. Normally, this behavior like hypocritical, because he said that doesn't mean he will do that things, just because those words can make people to achieve other aims. I think teacher do this because he want to motivate his student to work hard, like Bob said in this case study. Also this idea possible is a real test,just do not need paper and pen, only need these students to thinking, and then it can reflect how those students logic thinking. Bob and Pracitia here are different example, Bob thinks they will have exam and he wants to read all text book before the test day, I think this is a little bit cheating, because short term memorise do not mean can remember for a long time, past the exam doesn't mean it will be fine in the future, so for teacher simple thinking of Bob is a result for this testing. In another hand, Pariticia is a good example for use logic thinking to pass the exam, because she thinking about teacher might be have a joke with them, teacher does not want to have a real test, just according to this way to receive the information of his students which is how will they thin of this question and deal with it. Also, if it a no paper exam, the result of particia is good, because she use logic thinking to solve the question.

Therefore, if teacher hypocritical or not depends on what does the teacher think about, and basis on it the teacher must want to motivate students to work harder harder and harder.!!!!!!!!!

The costs and benefits of High Speed Rail.

costs of High Speed Rail:

• the cost on build and maintain a high speed rail is very expensive.
• high speed rail has limited function, because people can not walk or ride a bicycle on high speed rail it just use for the car.
• very noisy, it effect people who live next to the high speed rail.
• Drive car with high speed will leading to accident
• use a lot of land

benefits of high speed rail:

• high speed is a benefit as well, because more convenient.
• huge capacity f car
• low congestion
• save time
• good for transport

10 solution, End Britain's oil addiction

I do not think end Britain's oil addiction is a good idea, because it influence the economy all over the world and Britain can not live without oil. We know that oil is a scarce resource, and we can not use it for forever, it must be finish for one day. But now we can not stop to use it.

but in another hand, maybe in 15 years we can exchange the or to electricity, which is mentioned by Shai Agassi. if this will be come true, this is a business for Britain, because they can produce electric car, and sell it, and then they make a lot of revenue from this, and also the oil is save by them. However to invent this new technology car need a long time, and we can not calculate how much money we will spend. Also ,in fact, to end oil addition the other countries which apply oil will effect by this decision, for example, if Arabia can export oil, their economic will decline, because export oil is their main trade which can earn a lot of money.

Anyway, this idea is possible to become reality in the future, because with the information age, nothing us impossible. yeah!!

How can EF increase the profit

EF is the biggest personal English Educational institution, and it include language study, study in aboard, travel and courses. Nowadays more than 5o countries have EF, which means the scale of EF is very big.

Now, I would like suggest which can help EF to get more income.

• set up more symbiosis with other countries agency, which include tourism agency and educational agency. EF has a fantastic advertising, they have video, poster and so on. But expand the scope with those agency will increase the demand, because agency like a advertising.
• Nowadays EF has running A level course, this is a good point which add a new types education in EF. Because almost EF is a language school. Because of EF do not have a lot of experience when they establish A level course just for 1 year, therefore, they do not attractive people. However, EF is quite popular of the world, So I think people believe they have a good quality of education,and some of them may want to try to study A level here. In my opinion, to expand the size of A level course is quite important, because it is like if they have a lot of student study in there, it is more attractive, but if just a little, consumer may think maybe something not very good in this school, and of course they may change their mind. Thus I think to expand the size of A level course is quit important.
• signet EF logo on bag, note book, pen, pencil box, and anything that can signet, because consumer like those things which may make them feel confidence, like I am from this school, and also people will see EF logo when they go to shopping with that bag or others. Therefore it like a people to people advertisement which can make more people to know what is EF, what does EF do.etc.
• pay attention to their competitors, because now more and more educational institute has established and some of them have the same quality of EF, therefore know their competitors very clearly can help EF cut the cost and get more revenue.

these 4 advises above are my own thinking I hope it is useful and if you have more idea please tell me.

Hurbank plc report

Hurbank is a long established British producer of luxury clothing and accessories.At the start of 2008, Henry,who is the Chief Executive in this company,was asked by Board of Directors to consider cutting costs by relocating Hurbank plc's shirt production from cell ton, in the north of England, to China. In this case study, they give us some data which I will analyse below.

From Appendix A, it seems like the cost of Cell ton factor is more than the benefits. Because according from this data, it shows the trade union membership is 80% of all employees which means trade union is very powerful, this is a good thing for the workers, but I do not think it is good for their boss, because if the power of trade union is very strong, the boss of this company may spend more on them, for example they may ask boss for higher wage or higher work condition and so on. But in this appendix also has a benefit which is the labour productivity compare to five years ago is 40% more, which means they may get more profit. However, overall of this appendix, I do not think Cell ton factory will cut the cost, and also this might be the cause of why they want to relocation of their factory.

let's have a look Appendix B. In this appendix it shows Unemployment in the region of the factory in China is 14% which is very high and that is good for Hurbank to recruit those people with lower price. there is a data shows the average annual pay within Chinese region is 2000 pounds which is very low. in another hands it shows forecasting percentage of shirts returned by customers due to defects if factory is basedin China is 1%, this is a good news 1% is quite low. However, forecasting lead time to retailers is 4 weeks which is take a long time and I do not think retailers want to wait their supplier for a long time. Also the exchange rate of pounds will decrease 18% which means Hurbank will loss some money when they exchange their money to Chinese currency.

Anyway In appendix C, it shows Hurbanks plc get more revenue than before which is a good news and it tell us relocating in China help them save money and get more revenue. these graphs shows in another page approve this point. In appendix D and E are shows the revenue goes up if they relocate the factory in China.

Overall, I think if the company relocate the factory in China they will save a lot of money on employees, land, material, and so on which means they will get more revenue. But before they relocate it , they should do more research to prove if this decision is right or not.

Extra work

I am not sure about how to write this topic for a right way, after I read Nara's article, it gives me some enlightenment.

I think it is possible to use a scientific approach effectively in a subject that deal with human beings.
Economic exist everywhere and every time. In our life when you leave your house and close the door, you will meet the economics. In this information age, economics is essential for our normal life, especially for our communication. But, for some people who live out with economic society, for example for some tribal society, they do not need money, they do not know what is money. therefore they might do not need think about what is economic and will not have communication with economic. In other hands, like use psychoanalysis, it possible to deal with human beings, because when you know somebody very well, when he/she talk about something, according to her/his face, you will know what will he/she say at the next step. Also about biology, it can measure the action that people might to do. etc.

all the content that i mentioned above are use different way to reflect that it is possible to use a scientific approach effectively in subject that deal with human beings, but I do not think it is easy to carry out, there are some problem they will meet in the future. But I am not sure what those problem are.

Assess the extent to which Sainsbury's plan for 2007-10 likely to enable it to meet its corporate objectives

In this case study, they mention about 8 plans for 2007-10, there are those plans below:

• space growth-10% new space by march 2010.
• development of grocery and non-food ranges
• cost-cost saving of 155 million pounds in 2007/08.thereafter ongoing cost savings to offset half our operating cost inflation.
• channel growth through online and convenience expansion.
• profit-profit growth flowing through at a percentage rate in high single digits.
• sales growth-total additional sales of 3.5 billion pounds by March 2010.
• cash flow neutral over 3 years.

Because this is a team homework , Nara wrote about Space growth. Here I would like talk about Sales growth- total additional sales of 3.5 billion by March 2010.

I think this plan is likely to enable it to meet its corporate objectives, because Sainsbury has a big market, and it has a good reputation. the demand of it almost is elastic, they catched the customer loyalty that helps them to improve the sales volunm easier. For example they can open more stores which can saticfy more demand, and also expand the advertisement also can let the demand increase. Also they have the experience for how to sale and how to attractive consumers, it is good for enhance the sale. By the way, for a big company they have enough finace to produce more products, also increase the economic of scale which can help the sales growth.

However, additional sales of 3.5 billion pounds by March 2010 is not very enough to achieve this aim. Because in terms of Sainsbury, profit is not that changeable, they almost get the same profit because they are a supermarket. 3.5 billion is quite a lot, and just use 1 year may is not very easy. Just think about if they face to some current situation of economy is not good, for example recession, they may not can get the profit as much as before. Also they nee pay attention to their competitors, because if they reduce the price or got a better customer services ,more and more customer will go there and purchase on those products. In other hands they need do some market research and make some SMART objectives in order to achieve it. Therefore they may spend a lot of time. Also the material price may increase, so it depends on different situations.

At the end, I still think sales growth is likely to enable it to meet its corporate objectives, the reason of that like I mentioned above.

case study,question 2

Functional objectives are the overall aims and mission which in order to achieve the corporate objectives. In this case study, one of the corporate objective channels. Actually, there is a functional objectives that the case study mentioned, which is to extend the reach of sainsbury's brand by opening new convenience stores. Well, let's talk about the functional objective. openning new convince store, for example 24 hours supermarket which can help increase the demand. Also if the sainsbury has more stores it can enhance the reputation of this brand, Sainsbury will become more popular, because if you can see sainsbury everywhere, it will be attractive, and then the demand will increase. Indeed, Sainsbury could become a franchiser and they can seek some franchisee. From those franchisee, sainsbury can get more income of entry fee, also depends on the brand franchisees can get revenue more easier or get more revenue as well. Well I think this is a good correlation. However, to opening a new stores not very easy,because they need spend time to look for the land where is a good place that can build a new store. Almost the function of the land include high population, good environment, and so on. But id all functions are achieved which means it will be very expensive to rent. Also opening over demand stores that they need care about is every store of sainsbury has a good reputation, I do not think so .. Therefore they need think about those problems and if they want to solve them, it must be waste the time and money.
Anyway, I would like introduce my opinion which is they can make a limitation that the amount of how many store should be open and what is the different size of each shop. If they make those rules the problem may easier to deal with. Because there will not have over demand stores, and some of them will not waste, also a limitation of the size of store will save the money for example do not need spend a lot of money to maintaim some facilities or easier to layout and so on.

meeting the developing world

Sir Richard Branson said developing countries will lead the world economy out of recession and that returns on investment will be higher there for the foreseeable future.

What I am thinking about that is catch a opportunity from the crisis is a successful entrepreneur's skill. like Richard said"the worse the crisis, the greater opportunity."

what is the opportunity in recession for a entrepreneur,for example some products will reduce the price when is recession, because that time the demand had decreased. therefore, some of people buy a lot and stock them after the economy recovery, they will sale it again but with higher price. So they can earn more profit. in another hand, when the world face to recession, a lot of people loss their job, so, some people know not every people who loss their job are not useful, then they may recruit them with low wages but those people achieve the standard that they need. etc.

But the problem of catch a opportunity from recession is the risks, they might get loss if they make a wrong decision , because in fact we can say recession is means the economic is negative and not stable. therefore, entrepreneurs need spend time to think about is this opportunity help them a lot or just do nothing.

10 solution of rebooting Britain-revive the export economy

Export means sell the product and services to other countries.
Nowadays not only Britain face to recession, but also all over the world meet this problem. Therefore we cannot measure revive the export is good or not, thus I would like talk about the advantages and disadvantages of if revive the export.
There are some advantages of producing manufactured goods and export them. Because of the government wants promote the injection,which including the government spending, export and investment. Then they should producing manufactured goods, because it is cheaper than import those goods from other countries,actually they can save money. Secondly, the market of those goods may become competitiveness, because it can motivate the market share growing, which may let more people to know it, and demand of this goods will increase, Also exports can help the international trade of Britain. Thirdly, because of the government wants to growing with an injection of investment, therefore , they can get the invest from other countries, which means they can get more capital to produce more products,then the demand can be satisfied.
However, because of the recession, manufacturing some products it's quite difficult to start. This because they need to know what are the appreciate to produce, are there a lot of competitors and so on, all of these question that they need think about, so they will spend more time, more money as well. Where they can buy the materials, if they have, that's fine, if they do not have which means they need buy materials from other countries. In fact recession is globally, therefore, the price of materials is more expensive than before, so they will spend more. They can borrow money from other countries which can help them to produce more products and then export. But this is not good for the future, because they will receive a lot of national debts which may give them lots of pressure in the future.

Anyway, revive the exports economy is a solution which can help rebooting Britain.

Examine the problems that might emerge if Sainsbury's does not set SMART objectives

Firstly, what is SMART stand for?
S means specific
M means measurable
A means agree
R means realistic
T means time bound

after we know what is SMART mean, now, let me examine the problems that might if Sansbury's does not set SMART objectives one by one.

1) if the objectives are not specific:
let's have a look of the plan for 2007-10, in case study, they describe their plan very clearly, for example, space growth, there are 10% new space by March 2010 will be build. Actually, this example reflect that this is a specific objective, therefore if they have a specific objective that means they can make a specific strategy which can achieve it. So they may save money and time , which means the problem of this might be, they will get loss if they do not have a specific objective.Also they do not know how many time they need, they might waste the time on some thing which are not useful. Also it may demotivate labours, because staffs do not know what should they do and how to do, and also they do not know the value if they do this non-specific objective.

2)if the objectives are not measurable:
If the objective is measurable, it means that the measurement source is identified .Measurement is the standard used for comparison. For example, what opportunity cost means to me may be different compared to what is means for you. So if you know and you can measure which means you may can manage it. because if a Sans bury can measure,it will encourage and motivate them, measurement will tell us when we need do what, and maybe how to do, but if the objective is not measurable, which means we can not get a encourage and motivation, the productivity may decrease and the benefits above are difficult to achieve.

3)if the objectives are not Agreed(same as Achievable)
Objectives need to be agreed , if the objective is too far in the future, you’ll find it difficult to keep motivated. Also because Agrees objectives need manager and coordinate are involved in setting the targets, therefore if it not agreed it might waste the time to setting a target.

4)if the objectives are not realistic
If the objective are not realistic which means they might be difficult to achieve the objective and then may have conflict with other objectives. I think it will be waste the money and time. by the process, the staff may demotivate because of the time and so on.

5)if the objective are not Time bounds
if the objective are not time bounds, they may become more difficult to organise the finance because sans bury will not have a specific plan of future and they do not know how much money they will spend, for example they said sales growth- total additional sales of $3.7 billion by march 2010. If they do have a time bounds they will make a plan if they achieve this objective what will they do, if not what Will they do as well. therefore just opposite id they do not have a time bounds objective.

at the end, hope you can give me some suggestion if you think i am not right of the content above, thanks

Chapter 1 my version(50 words)

Functional objectives are set for each division or department of a business.Also the functional objectives will use to ensure that the business can achieves its corporate objectives.
corporate objectives are design to enable a business achieves the aims and mission.
A strategy is basis on a specific objective, strategies are the medium to long term plans that how a business achieve their objectives.

10 key points

1. functional objectives basis on corporate objectives.
2.functional objectives is an individual department of business.
3.strategies basis on objectives.
4.it is important to make sure that all members are understanding the overall objectives.
functional and corporate objectives are SMART:
5. specific-very clear and easy to define
6.measurable-quantifiable( e.g to reduce the market share from 40% to 25% in next 2 weeks.)
7.agree-manager and coordinate are involved in setting the target.
8.realistic-no conflict with other objectives
9.time bounds- basis on the accurate time (e.g build 10 news stores)

10. business strategies is a medium to long term plans.

Niall Ferguson-- reduce the national debt

According to the news, that I can know, if UK wants to reduce the national debt, the government needs to increase the tax and cut the government spending. therefore the government will get more income which may help the treasury to increase their financial assets. Then the national debts will decrease.
advantages:
For a long term, a low national debts is good for the development of domestic economic. Because less debts will reduce the pressure of the government, they do not need think about how to return the debts anymore. Then they can pay more attention on their own economy. Also reduce on national debts classify the economic of this country is not bad, it may growth which is better than before. Also reduce the debts may save more money, because the government may not pay the interest rate, and nowadays, the exchange of English pounds is depreciating, which means they will pay more money to the country that lent money to UK.

disadvantages:
In another hand, reduce the national debts is not a good idea, because if some crisis suddenly happened, for example global recession, the government can not deal with it on time, cause they do not have enough money. also they can not spend more to encourage their domestic business,such as invest some small firm, help some company which face to bankrupt and so on.
For instance, in 2012, UK will hold the Olympic games, for the government this is a quite big leakage, so they need borrow money from other countries.
But for the content above depends on the different countries. some rich countries are not really a debtor, they might be a creditor. otherwise for some poor countries, their treasury may become empty, they need help from other countries. Also it depends on different situation of different time. For example, nowadays, all the world face to global recession, America which is the richest country,but they borrow more than 10 billion dollor s from China ti deal with the problem.
conclusion:

At the end, I think reduce the debt or not depends on the different situation of different countries, because for different time reduce the national debts will bring the different effects for them, even though the good or bad effects.