Tuesday, March 20, 2007
How Countries compete ? - Richard Vietor
" Let us think a bit about the near term future using scenarios. We should start with Singapore, the most developed state in Souteast Asia. For the foreseeable future, Singapore is being incresingly pressed by China and India on the low end, and more competitively by Korea, Taiwan, the US, and Europre on the high end. Either its strategy of low taxes and networked culsters, particularly biotechnology, will work - or it won't.
If it works, we can expect Singapore to become a services powerhouse in Southeast Asia, quickly catching up with the income levels of Europe. But if not, what would happen to Singapore's growth as it loses lower-end jobs and investments to China ? Developing scenarios for China is a more striking exercise...
China has been growing at more than 8 % annually and running larger surpluses on its current account....
If Hu Jintao encourages consumption , allows the renminbi to apreciate, and gradually liberalises the polity, his trading relations ( and thus foreign relations ) will doubtlesslyl improve.
If he agressively helps banks write off bad debt, creates a reasonable system of governance, and further privatises the state-owned sectors, then, China can continue to grow fast for at least another decade.
But if China continues on its present path, growting exports too rapidly without liberalising trade, then trouble will certainly be coming. I suppose the odds favour continued growth and gradual reform.
Richard Vietor book review page at amazon is here :
http://www.amazon.com/s/ref=nb_ss_gw/002-3711215-2568031?url=search-alias%3Dstripbooks&field-keywords=%22Richard+Vietor%22&Go.x=6&Go.y=11
One book of his, " Business Management and Natural environment " has gotten a five star rating at amazon.
Book DescriptionBusiness Management and the Natural Environment presents the new set of managerial and strategic challenges posed by environmental questions. By drawing from concepts throughout the traditional business management curriculum and applying them to this new set of managerial challenges, the authors demonstrate the impact of environmental problems on every functional area: marketing, production, finance, control and strategy.
If it works, we can expect Singapore to become a services powerhouse in Southeast Asia, quickly catching up with the income levels of Europe. But if not, what would happen to Singapore's growth as it loses lower-end jobs and investments to China ? Developing scenarios for China is a more striking exercise...
China has been growing at more than 8 % annually and running larger surpluses on its current account....
If Hu Jintao encourages consumption , allows the renminbi to apreciate, and gradually liberalises the polity, his trading relations ( and thus foreign relations ) will doubtlesslyl improve.
If he agressively helps banks write off bad debt, creates a reasonable system of governance, and further privatises the state-owned sectors, then, China can continue to grow fast for at least another decade.
But if China continues on its present path, growting exports too rapidly without liberalising trade, then trouble will certainly be coming. I suppose the odds favour continued growth and gradual reform.
Richard Vietor book review page at amazon is here :
http://www.amazon.com/s/ref=nb_ss_gw/002-3711215-2568031?url=search-alias%3Dstripbooks&field-keywords=%22Richard+Vietor%22&Go.x=6&Go.y=11
One book of his, " Business Management and Natural environment " has gotten a five star rating at amazon.
Book DescriptionBusiness Management and the Natural Environment presents the new set of managerial and strategic challenges posed by environmental questions. By drawing from concepts throughout the traditional business management curriculum and applying them to this new set of managerial challenges, the authors demonstrate the impact of environmental problems on every functional area: marketing, production, finance, control and strategy.
Saturday, March 17, 2007
stocks for the long run by Jeremy Siegel
" STOCKS FOR THE LONG RUN " by Jeremy Siegel --------------------------------------------------------------------- tHE FOCUS OF EVERY LONG TERM INVESTOR SHOULD BE THE GROWTH OF PURCHASING POWER - THE MONEARY WEALTH ADJUSTED FOR THE EFFECT OF INFLATION. tHE GROWTH OF PURCHASING POWER IN EQUITIES NOT ONLY DOMINATES ALL OTHER ASSETS BUT ALSO SHOWS REMARKABLE LONG-TERM STABILITY. dESPITE EXTRAORDINARY CHANGES IN THE ECONOMIC , SOCIAL, AND POLITICAL ENVIRONMENTS OVER THE PAST TWO CENTURIES, STOCKS HAVE IELDED BETWEEN 6.6 % AND 7 % PER YEAR AFTER INFLATION IN ALL MAJOR SUBPERIODS. tHE SHORT TERM FLUCTUATIONS IN THE STOCK MARKETS ARE INSIGNIFICANT WHEN COMPARED WITH THE UPWARD MOVEMENT OF EQUITY VALUES OVE TIME. iN CONTRAST TO THE REMARKABLE STABILITY OF STOCK RETURNS, REAL REURNS ON FIXED-INCOME ASSETS HAVE DECLINED MARKEDLY OVER TIME. sOME ECONOMISTS HAVE MAINTAINED THAT, THE SUPERIOR RETURNS TO EQUITY ARE A CONSEQUENCE OF CHOOSING DATA FROM THE us, A COUNTRY THAT HAS BEEN TRANSFORMED FROM A SMALL bRITISH COLONY TO THE WORLD'S GREATEST ECONOMIC POWER OVER THE LAST 200 YEARS. However, the ability to create value also springs from skiful management, a stable political system that respects property rights, and the capacity to provide value to consumers in a competitive environment. Swings in investor sentiment resulting from political or economic crises can throw stocks off their long term path, but the fundamenal forces producing economic growth enable equities to the regain the long term trend.
Friday, March 09, 2007
" capital rules" by Rawi Abdelal
" The idea that capital ought to flow unrestrictd across the globe became the reigning orthodoxy of international finance over the course of the 1980 s and the 1990 s, that orthodoxy is already in decline and its reign in question.
As a matter of capital flows, global finance is as strong as ever. But when it comes to the norms and rules of global finance, the very ideas and laws that sustain the system, th height of this era of blobalisation has already been reached.
Policy makers understand the international financial system very differently in the first decade of a new century.
Caution toward full capital mobility now previls within the international fianancial community.
The IMF, oecd, AND CREDIT-RATING AGENCIES HAVE BEEN CONGRATULATED, OCCATIONALLY BY ONE ANOTHER AND TEHMESELVES, FOR HAVING " LEARNED " VALUABLE LESSONS FROM THE EMERGING MARKET FINANCIAL CRISES AND THEIR APPARENT CONTAGIOUS SPREAD ; THE DANGERS OF EMBRACING HOT MONEY INSTEAD OF LONGER TERM CAPITAL FLOWS ; AND THE IMPORTANCE OF A COUNTRY'S DOMENTIC INSTITUIONAL FUNDATIONS FOR A SOUND BANKING SYSTEMS AS A PRECONDITION FOR THE FULL LIBERALISATION...
The internatinal financial community has formulated lessons for itself of the rises of the 1990 s that, in both principle and language, are nearly identical to those that policy makers believed they had lerned from the crises of the 1930 s.
As a matter of capital flows, global finance is as strong as ever. But when it comes to the norms and rules of global finance, the very ideas and laws that sustain the system, th height of this era of blobalisation has already been reached.
Policy makers understand the international financial system very differently in the first decade of a new century.
Caution toward full capital mobility now previls within the international fianancial community.
The IMF, oecd, AND CREDIT-RATING AGENCIES HAVE BEEN CONGRATULATED, OCCATIONALLY BY ONE ANOTHER AND TEHMESELVES, FOR HAVING " LEARNED " VALUABLE LESSONS FROM THE EMERGING MARKET FINANCIAL CRISES AND THEIR APPARENT CONTAGIOUS SPREAD ; THE DANGERS OF EMBRACING HOT MONEY INSTEAD OF LONGER TERM CAPITAL FLOWS ; AND THE IMPORTANCE OF A COUNTRY'S DOMENTIC INSTITUIONAL FUNDATIONS FOR A SOUND BANKING SYSTEMS AS A PRECONDITION FOR THE FULL LIBERALISATION...
The internatinal financial community has formulated lessons for itself of the rises of the 1990 s that, in both principle and language, are nearly identical to those that policy makers believed they had lerned from the crises of the 1930 s.
Thursday, March 08, 2007
Brand Strategy by David Aaker
BRAND STRATEGY
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“ by David Aaker “
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The strategic brand is one with strategic importance to the organisation. It is a brand that needs to succeed and therefore should receive what ever resources are needed. The identification of strategic brands is a huge step toward ensuring that brand building resources are allocated to the strategically most important business arenas.
There are , in general , three types of strategic brands : A current power brand ( or mega brand ) now generates significant sales and profits and is not a candidate for a cash cow status. Perhaps it is already a large , dominant brand and is projected to maintain or grow its position. Microsoft Windows is in this category. A future power brand is projected to generate significant sales and profit in the future, even though it is now a small or emerging brand. Centrino would qualify for Intel.
A linchpin brand will indirectly influence ( as opposed to ‘ generate’ ) significant sales and market position in the future, serving as the ‘ linchpin’ or leverage point of a major business area of the firm. The classic problem is that, if future power brands and linchpin brands have no current sales base, they get starved of resources.
The other side of the coin is when emerging areas and the linchpins of the future organizational vision get too much attention, and the existing power brands get neglected. Discipline must be used to identifying and prioritizing strategic brands based on future prospects.
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“ by David Aaker “
---------------------------------
The strategic brand is one with strategic importance to the organisation. It is a brand that needs to succeed and therefore should receive what ever resources are needed. The identification of strategic brands is a huge step toward ensuring that brand building resources are allocated to the strategically most important business arenas.
There are , in general , three types of strategic brands : A current power brand ( or mega brand ) now generates significant sales and profits and is not a candidate for a cash cow status. Perhaps it is already a large , dominant brand and is projected to maintain or grow its position. Microsoft Windows is in this category. A future power brand is projected to generate significant sales and profit in the future, even though it is now a small or emerging brand. Centrino would qualify for Intel.
A linchpin brand will indirectly influence ( as opposed to ‘ generate’ ) significant sales and market position in the future, serving as the ‘ linchpin’ or leverage point of a major business area of the firm. The classic problem is that, if future power brands and linchpin brands have no current sales base, they get starved of resources.
The other side of the coin is when emerging areas and the linchpins of the future organizational vision get too much attention, and the existing power brands get neglected. Discipline must be used to identifying and prioritizing strategic brands based on future prospects.
Wednesday, March 07, 2007
"management craft " by Ram Charan
" MANAGEMENT CRAFT "
by Ram Charan.
All companies have a budget. It is, however, astonishing how little detail about revenue and sources of revenue growth you can find htere. Almost all of the lines in the budget are cost related. Few, if any, identity resources explicitly earmarked for growth.
The growth budget provides a foundation that will allow a compay to increase revenues instead of just talking about it. It includes all critical actions over the short , medium, and long terms that require resources to achieve revenue growth goals. One of the key missing links for generating revenue growth at most companies is - upstream marketing.
What most people visualise as marketing involves advertising, promotion, brand-building, and communicating with customers though public relations, trade shows, and in store displays. Those activities are primarly " down sream " in nature - they enhance the acceptance of a product or service that already exists.
Upstream marketing takes place ast a much earlier stage, by developing a clear maket segmentation map and then identifying and precisely defining which customers segment to focus on... In any company of reasoanlbe size, nnovtion is a social proces that required collaboration and communication for idea generation, selecting those ideas for revenue growth that are to be funded. and shaing those ideas into product prototypes and launchin g them into market place.
by Ram Charan.
All companies have a budget. It is, however, astonishing how little detail about revenue and sources of revenue growth you can find htere. Almost all of the lines in the budget are cost related. Few, if any, identity resources explicitly earmarked for growth.
The growth budget provides a foundation that will allow a compay to increase revenues instead of just talking about it. It includes all critical actions over the short , medium, and long terms that require resources to achieve revenue growth goals. One of the key missing links for generating revenue growth at most companies is - upstream marketing.
What most people visualise as marketing involves advertising, promotion, brand-building, and communicating with customers though public relations, trade shows, and in store displays. Those activities are primarly " down sream " in nature - they enhance the acceptance of a product or service that already exists.
Upstream marketing takes place ast a much earlier stage, by developing a clear maket segmentation map and then identifying and precisely defining which customers segment to focus on... In any company of reasoanlbe size, nnovtion is a social proces that required collaboration and communication for idea generation, selecting those ideas for revenue growth that are to be funded. and shaing those ideas into product prototypes and launchin g them into market place.
