An Apple a Year Keeps the Consumers Coming Back
Apple has conditioned its customers to expect a new release of the iPhone each summer. That is an aggressive product release schedule, even for a giant like Apple.
Most likely the product development team at Apple would like to see a more staggered and longer product release cycle in order to integrate new and more features and possibly complete more extensive testing before releasing product.
With the release of the new Verizon phone this spring, this may provide Apple with the opportunity to not release the latest version of the iPhone this summer, but wait until fall or even the holiday season.
My guess is that we will not see the release of a new iPhone this summer.
S.A. Romeo
The Strategy Expert
Sunday, April 3, 2011
Saturday, March 26, 2011
U.S. Gov't Used the Wrong Economic Strategy
U.S. Gov't Used the Wrong Economic Strategy
As I write this post I am in Thailand. I continue to read the economic news back in the states and receive daily briefings. The stock market is up and employee pay has increased to an all-time high. Yet, the general public still feels that the recession never ended. The unemployment rate remains around 9%, many have lost their homes to foreclosure and those who still have a home have found that the value had diminished considerably.
One could determine that the results are clear when you look at countries such as Thailand - the U.S. Government made strategic mistakes when dealing with The Great Recession.
I have said all along that the stimulus package, that has now helped contribute significantly to the U.S. debt, was strategically handled wrong. The money was given to large institutions to shore up their asset base or given to finically struggling companies to erase bad debt when instead the money should have been given to the people. If you want people to pay their subprime mortgage payments, don't give the money to the bank, give it to the people. Bailing out struggling banks and automobile manufacturers just brings their accounts back to zero, it does not grow the economy. In other words, most of the money spent was used to erase debt and pay old bills, not grow the economy to the next stage. That is why we are seeing minimal growth (0.2%) while Thailand is expected to see a 3.8% growth over the next cycle.
Thailand entered the recession after the U.S. and it too had to introduce a stimulus package. Only the Thai government gave the money to the people, who then went out and spent the money and stimulated the economy.
Thailand recently collected it's annual income taxes. The economy grew faster than expected and the government collected nearly 15% more tax revenues than it had projected. While U.S. Representatives are looking for ways to cut billions of dollars from its budget, the Thai government has money left over. One hundred twenty billion bahts are being used for a local beach clean-up and revitalization project.
Meanwhile, the U.S. government is still in debt, the jobless rate is still around 9% and businesses are still not hiring.
Lets see how the U.S. does on April 15 compared to Thailand.
S.A. Romeo
The Strategy Expert
As I write this post I am in Thailand. I continue to read the economic news back in the states and receive daily briefings. The stock market is up and employee pay has increased to an all-time high. Yet, the general public still feels that the recession never ended. The unemployment rate remains around 9%, many have lost their homes to foreclosure and those who still have a home have found that the value had diminished considerably.
One could determine that the results are clear when you look at countries such as Thailand - the U.S. Government made strategic mistakes when dealing with The Great Recession.
I have said all along that the stimulus package, that has now helped contribute significantly to the U.S. debt, was strategically handled wrong. The money was given to large institutions to shore up their asset base or given to finically struggling companies to erase bad debt when instead the money should have been given to the people. If you want people to pay their subprime mortgage payments, don't give the money to the bank, give it to the people. Bailing out struggling banks and automobile manufacturers just brings their accounts back to zero, it does not grow the economy. In other words, most of the money spent was used to erase debt and pay old bills, not grow the economy to the next stage. That is why we are seeing minimal growth (0.2%) while Thailand is expected to see a 3.8% growth over the next cycle.
Thailand entered the recession after the U.S. and it too had to introduce a stimulus package. Only the Thai government gave the money to the people, who then went out and spent the money and stimulated the economy.
Thailand recently collected it's annual income taxes. The economy grew faster than expected and the government collected nearly 15% more tax revenues than it had projected. While U.S. Representatives are looking for ways to cut billions of dollars from its budget, the Thai government has money left over. One hundred twenty billion bahts are being used for a local beach clean-up and revitalization project.
Meanwhile, the U.S. government is still in debt, the jobless rate is still around 9% and businesses are still not hiring.
Lets see how the U.S. does on April 15 compared to Thailand.
S.A. Romeo
The Strategy Expert
Monday, March 21, 2011
Pattaya International Music Festival
Pattaya International Music Festival
This week I attended the Pattaya, Thailand International Music Festival. From a personal note, it was great to see so many local Thais and tourists sharing an event together. From a professional perspective, it was amazing to see their planning in action.
Pattaya has two main streets - one heading south along the beach and the other inland road heading north. The street heading south was closed for 3.5 km, meaning the usual busy traffic could be a nightmare. But the local authorities were able to accommodate the crowd with just half of it's major thoroughfares open.
The street that was closed had over 1500 vendors set up, in the street, allowing pedestrians to walk down the middle of this usually busy road with vendors on both sides.
I should add that the music festival was a three-day event and during the day, half of the vendors removed their stands allowing one lane of traffic. As darkness approached each day, the one-lane of cars was diverted and the vendors set up shop once again.
Now for the music. The festival included multiple concerts held simultaneously at multiple stages ( i think 4) set up along the 3.5 km road. So, as you walked along, there would be a stage set up in the road with hundreds, if not thousands, of people watching, singing and dancing. If you have never seen Thai dancing you are in for a treat. They have a fantastic time.
Imagine the planning and logistics involved in opening and closing streets twice a day, overseeing the traffic, organizing the multiple bands playing at multiple sites, providing security for the entire venue, designing contingency plans for the weather, getting the bands into the country, making hotel arrangements and even getting their equipment through the crowd. And then there are the logistics of clearing the stages and setting up for the next band. This is literally four concerts happening at the same time three times throughout the night.
The event (in it's 11th year) seemingly was nearly perfect. The weather cooperated, the traffic was manageable, the Thais danced and had a great time with minimal security required, the bands performed and while to the public it was a great time, knowing the amount of planning and preparation that is required for such an event, the organizers should be proud.
This week I attended the Pattaya, Thailand International Music Festival. From a personal note, it was great to see so many local Thais and tourists sharing an event together. From a professional perspective, it was amazing to see their planning in action.
Pattaya has two main streets - one heading south along the beach and the other inland road heading north. The street heading south was closed for 3.5 km, meaning the usual busy traffic could be a nightmare. But the local authorities were able to accommodate the crowd with just half of it's major thoroughfares open.
The street that was closed had over 1500 vendors set up, in the street, allowing pedestrians to walk down the middle of this usually busy road with vendors on both sides.
I should add that the music festival was a three-day event and during the day, half of the vendors removed their stands allowing one lane of traffic. As darkness approached each day, the one-lane of cars was diverted and the vendors set up shop once again.
Now for the music. The festival included multiple concerts held simultaneously at multiple stages ( i think 4) set up along the 3.5 km road. So, as you walked along, there would be a stage set up in the road with hundreds, if not thousands, of people watching, singing and dancing. If you have never seen Thai dancing you are in for a treat. They have a fantastic time.
Imagine the planning and logistics involved in opening and closing streets twice a day, overseeing the traffic, organizing the multiple bands playing at multiple sites, providing security for the entire venue, designing contingency plans for the weather, getting the bands into the country, making hotel arrangements and even getting their equipment through the crowd. And then there are the logistics of clearing the stages and setting up for the next band. This is literally four concerts happening at the same time three times throughout the night.
The event (in it's 11th year) seemingly was nearly perfect. The weather cooperated, the traffic was manageable, the Thais danced and had a great time with minimal security required, the bands performed and while to the public it was a great time, knowing the amount of planning and preparation that is required for such an event, the organizers should be proud.
Sunday, March 20, 2011
Rayong, Thailand
Rayong Thailand
I journeyed from Bangkok to Rayong yesterday. Rayong is an industrial city that is on the Gulf of Thailand and steadily growing.
Many find it surprising but 9 of the world's top 10 auto manufacturers now have plants in Rayong. It is referred to locally as "the Detroit of Southeast Asia". As the facilities continue to grow, employment has now risen to 25,000 people.
Look to Rayong to continue to grow as many look for I industrial port cities in the area.
S.A. Romeo
The Strategy Expert
I journeyed from Bangkok to Rayong yesterday. Rayong is an industrial city that is on the Gulf of Thailand and steadily growing.
Many find it surprising but 9 of the world's top 10 auto manufacturers now have plants in Rayong. It is referred to locally as "the Detroit of Southeast Asia". As the facilities continue to grow, employment has now risen to 25,000 people.
Look to Rayong to continue to grow as many look for I industrial port cities in the area.
S.A. Romeo
The Strategy Expert
Thursday, March 17, 2011
Time to Layoff Some Employees
Time to Layoff Some Employees
Many companies in the United States have laid off some employees as part of their survival during The Great Recession. While the economy has not yet fully recovered (it may take a decade or longer to fully recover what has been lost) there are signs of a recovery in the works. That means it is time to conduct one more employee performance evaluation and lay off another 10% of your workforce.
Why would you want to layoff employees now, when the recovery is on the horizon?
Companies that plan strategically today and prepare for this next growth cycle are likely to be leaders within their areas for the next decade or longer.
The unemployment rate is high, meaning there are some great people out of work looking for jobs - your jobs. Many of these potential employees can be hired at a salary that is 20-30% less than you would have had to pay just 3 years ago. But in order to hire these talented individuals and build your "dream team" for the next growth cycle, you have to clean house one more time and get rid of some fine mediocre performers in order to make room for this new talent.
Feeling bad about laying off employees? These are the same employees who could give you a two week notice and go to the competition for a 20-30% increase in pay so don't feel too bad.
Not sure this model will work? Generation Electric Company does it every year. It conducts performance evaluations on all employees and dismisses the bottom 10% every year - and has for decades. Many believe this is one reason why GE remains one of the top 5 of the Fortune 500 companies.
It's not personal, it's just business.
S.A. Romeo
The Strategy Expert
Many companies in the United States have laid off some employees as part of their survival during The Great Recession. While the economy has not yet fully recovered (it may take a decade or longer to fully recover what has been lost) there are signs of a recovery in the works. That means it is time to conduct one more employee performance evaluation and lay off another 10% of your workforce.
Why would you want to layoff employees now, when the recovery is on the horizon?
Companies that plan strategically today and prepare for this next growth cycle are likely to be leaders within their areas for the next decade or longer.
The unemployment rate is high, meaning there are some great people out of work looking for jobs - your jobs. Many of these potential employees can be hired at a salary that is 20-30% less than you would have had to pay just 3 years ago. But in order to hire these talented individuals and build your "dream team" for the next growth cycle, you have to clean house one more time and get rid of some fine mediocre performers in order to make room for this new talent.
Feeling bad about laying off employees? These are the same employees who could give you a two week notice and go to the competition for a 20-30% increase in pay so don't feel too bad.
Not sure this model will work? Generation Electric Company does it every year. It conducts performance evaluations on all employees and dismisses the bottom 10% every year - and has for decades. Many believe this is one reason why GE remains one of the top 5 of the Fortune 500 companies.
It's not personal, it's just business.
S.A. Romeo
The Strategy Expert
Tuesday, March 15, 2011
Not in Time Manufacturing
Not in Time Manufacturing
For decades, Japan has been a leader in Just in Time manufacturing: the premise that a company can reduce inventory amounts because an order to a Japanese partner or supplier would deliver the product to you, just in time for it's use.
With the three disasters (thus far) that have hit Japan, the auto plants are shut down, electricity production is on a three-hour rolling blackout schedule and Sony has stopped production at six of it's northern plants.
Companies around the world who have depended upon Japan for it's Just in Time delivery schedule may have to revisit their strategic plan and move to plan B, or the contingency plan, as Japan will likely be using a Not in Time production timeline for the near-term foreseeable future.
S.A. Romeo
The Strategy Expert
For decades, Japan has been a leader in Just in Time manufacturing: the premise that a company can reduce inventory amounts because an order to a Japanese partner or supplier would deliver the product to you, just in time for it's use.
With the three disasters (thus far) that have hit Japan, the auto plants are shut down, electricity production is on a three-hour rolling blackout schedule and Sony has stopped production at six of it's northern plants.
Companies around the world who have depended upon Japan for it's Just in Time delivery schedule may have to revisit their strategic plan and move to plan B, or the contingency plan, as Japan will likely be using a Not in Time production timeline for the near-term foreseeable future.
S.A. Romeo
The Strategy Expert
Monday, March 14, 2011
It's Not Driving Me Crazy
It's Not Driving Me Crazy
The price of gasoline continues to steadily increase ($3.50 per gallon in many areas and $4.00 in California) and the experts are now predicting a national average of $4.00 per gallon nationwide this summer.
With many people still unemployed and others working part-time or underemployed, at some point, the amount of driving is likely to decrease. Airlines have already increased fare by $10 to $20 to account for the fuel increase. If the amount of driving is reduced, that is likely to occur this summer when many families take their annual vacation.
If driving is reduced due to the price of gasoline, less products may be purchased and the summer tourist season could experience a decline, thus negating any minimal growth the country has experienced this year as it mightily struggles to escape the grasp of The Great Recession. Thus, the crazy driving season that clogs the roadways of the northeast may not be driving us crazy this summer.
S.A. Romeo
The Strategy Expert
The price of gasoline continues to steadily increase ($3.50 per gallon in many areas and $4.00 in California) and the experts are now predicting a national average of $4.00 per gallon nationwide this summer.
With many people still unemployed and others working part-time or underemployed, at some point, the amount of driving is likely to decrease. Airlines have already increased fare by $10 to $20 to account for the fuel increase. If the amount of driving is reduced, that is likely to occur this summer when many families take their annual vacation.
If driving is reduced due to the price of gasoline, less products may be purchased and the summer tourist season could experience a decline, thus negating any minimal growth the country has experienced this year as it mightily struggles to escape the grasp of The Great Recession. Thus, the crazy driving season that clogs the roadways of the northeast may not be driving us crazy this summer.
S.A. Romeo
The Strategy Expert
Saturday, March 12, 2011
Best Buy: Reinventing Itself, Yet Again
Best Buy: Reinventing Itself, Yet Again
It seems like just a short time ago that Circuit City, Best Buy's largest competitor went out of business, creating a huge opportunity for the company. A strategic analysis showed that Best Buy then sold 16 times the amount of electronics than its closest competitor, Wal-Mart, which allowed Best Buy to streamline operations and release much of it's store-level middle management positions.
But that was last year. This year, the strategic plan has been updated and Best Buy is following the trend of other major box stores by decreasing its footprint. This year's strategy includes 150 much smaller Best Buy mobile locations that will only sell smart phones.
Online sales and the real estate market are causing big box stores to change their strategic approach for 2011.
S.A. Romeo
The Strategy Expert
It seems like just a short time ago that Circuit City, Best Buy's largest competitor went out of business, creating a huge opportunity for the company. A strategic analysis showed that Best Buy then sold 16 times the amount of electronics than its closest competitor, Wal-Mart, which allowed Best Buy to streamline operations and release much of it's store-level middle management positions.
But that was last year. This year, the strategic plan has been updated and Best Buy is following the trend of other major box stores by decreasing its footprint. This year's strategy includes 150 much smaller Best Buy mobile locations that will only sell smart phones.
Online sales and the real estate market are causing big box stores to change their strategic approach for 2011.
S.A. Romeo
The Strategy Expert
Friday, March 11, 2011
Disaster in Japan
Disaster in Japan
As write this post I am watching the BBC's coverage of the earthquake in Japan and the aftershocks and the tsunami that has struck the coast of Japan.
My first thought is that I hope the tsunami does not hit my condo here on the beach in Thailand, which it does not look like it is going to do. My second thought is for the people of Japan. My third thought, as a strategic planner, is the hope and desire that Japan has created risk mitigation and contingency plans and continuity plans that will allow everyone with the ability to quickly respond. Japan is used to earthquakes, but the earthquake and tsunami are back-to-back disasters.
Let's hope the contingency and continuity plans are in place to make the people safe.
As write this post I am watching the BBC's coverage of the earthquake in Japan and the aftershocks and the tsunami that has struck the coast of Japan.
My first thought is that I hope the tsunami does not hit my condo here on the beach in Thailand, which it does not look like it is going to do. My second thought is for the people of Japan. My third thought, as a strategic planner, is the hope and desire that Japan has created risk mitigation and contingency plans and continuity plans that will allow everyone with the ability to quickly respond. Japan is used to earthquakes, but the earthquake and tsunami are back-to-back disasters.
Let's hope the contingency and continuity plans are in place to make the people safe.
Monday, March 7, 2011
What Global Conflict Means to Local Business
What Global Conflict Means to Local Business
How can the unrest in the MENA (Middle East and North Africa) area effect your local business?
For many, it will have little impact but any hint of instability in this part of the world often means an increase in oil prices, as we are currently experiencing. That often results in higher airplane tickets (we have already seen $10 or $20 increases), increased transportation costs and higher gasoline costs for the local consumer.
So, while businesses can do little about what is happening in MENA, there can certainly be an impact upon local business so it does pay to pay attention to international news as part of your strategic planning.
S.A. Romeo
The Strategy Expert
How can the unrest in the MENA (Middle East and North Africa) area effect your local business?
For many, it will have little impact but any hint of instability in this part of the world often means an increase in oil prices, as we are currently experiencing. That often results in higher airplane tickets (we have already seen $10 or $20 increases), increased transportation costs and higher gasoline costs for the local consumer.
So, while businesses can do little about what is happening in MENA, there can certainly be an impact upon local business so it does pay to pay attention to international news as part of your strategic planning.
S.A. Romeo
The Strategy Expert
Forget Gold - Look at Corn
Forget Gold - Look at Corn
Ok, I know the price of corn has increased by about 600 percent in recent times but that increase may just be the beginning.
The northern part of the United States - specifically the Dakotas and Minnesota - have experienced a particularly harsh winter. Snow fall is 125 to 200% more than usual, meaning that area of the north and downstream areas such as Iowa and Illinois (our main corn producing areas) are likely to experience significant flooding as part of the "spring thaw". If that happens, it could damage, if not wipe out, a significant portion of this year's corn production.
S.A. Romeo
The Strategy Expert
Note: this post does not represent investment advice.
Ok, I know the price of corn has increased by about 600 percent in recent times but that increase may just be the beginning.
The northern part of the United States - specifically the Dakotas and Minnesota - have experienced a particularly harsh winter. Snow fall is 125 to 200% more than usual, meaning that area of the north and downstream areas such as Iowa and Illinois (our main corn producing areas) are likely to experience significant flooding as part of the "spring thaw". If that happens, it could damage, if not wipe out, a significant portion of this year's corn production.
S.A. Romeo
The Strategy Expert
Note: this post does not represent investment advice.
Saturday, March 5, 2011
Sixty Seconds to 10 Years: Why Contingency Planning is So Important
Sixty Seconds to 10 Years: Why Contingency Planning is So Important
Just a few weeks ago the city of Christchurch, New Zealand was struck by a major earthquake that did extensive damage to buildings and infrastructure. Most cities do strategic planning, but few conduct extensive contingency planning or adequately prepare for major disasters, let alone the long-term requirements.
A report on the Internet today indicates that the 60 second or less earthquake caused damage that will take 10 years to rebuild. One hopes the city planners in Christchurch have an organized strategic and contingency plan in place to deal with the clean up and rebuilding the city.
Of course a community can never totally rebuild what has been destroyed so it is wise for cities to revamp the strategic plan in an attempt to make the city better than it was prior to the disaster.
While the rebuilding is likely to take 10 years, the full impact of the new strategic plan is not likely to be felt for a generation or more. Such is the impact of long-term strategic planning.
Just a few weeks ago the city of Christchurch, New Zealand was struck by a major earthquake that did extensive damage to buildings and infrastructure. Most cities do strategic planning, but few conduct extensive contingency planning or adequately prepare for major disasters, let alone the long-term requirements.
A report on the Internet today indicates that the 60 second or less earthquake caused damage that will take 10 years to rebuild. One hopes the city planners in Christchurch have an organized strategic and contingency plan in place to deal with the clean up and rebuilding the city.
Of course a community can never totally rebuild what has been destroyed so it is wise for cities to revamp the strategic plan in an attempt to make the city better than it was prior to the disaster.
While the rebuilding is likely to take 10 years, the full impact of the new strategic plan is not likely to be felt for a generation or more. Such is the impact of long-term strategic planning.
Friday, March 4, 2011
The Poorest Rich Nation
The Poorest Rich Nation
I have long shared with friends and associates that the US government has (and still is) using the wrong strategic economic approach to solve our economic woes. One might even say these strategic approaches, such as The Feds quantitative easing, whatever that is, has added to the problem.
Today, we get an update on our economy. 14.3% of the U.S. population, 44.1 million people, don't make enough money each month to feed themselves and they are on food stamps. The government is boasting about the 250,000 jobs it has created, while 44.1 million can't feed themselves. Oh, and the cost of creating those 250,000 jobs is estimated to be $1.3 million per job.
http://leverageacademy.com/blog/2011/03/04/44-million-in-the-u-s-use-food-stamps-14-3-of-population/
More distressing news today indicates that the the real unemployment rate in the United States increased to 10.3% for the month of February.
http://www.gallup.com/poll/146453/Gallup-Finds-Unemployment-Hitting-February.aspx
How long will it take the strategists at the federal government to realize that the strategies they are using are not working, and in fact are hurting the economy?
I have long shared with friends and associates that the US government has (and still is) using the wrong strategic economic approach to solve our economic woes. One might even say these strategic approaches, such as The Feds quantitative easing, whatever that is, has added to the problem.
Today, we get an update on our economy. 14.3% of the U.S. population, 44.1 million people, don't make enough money each month to feed themselves and they are on food stamps. The government is boasting about the 250,000 jobs it has created, while 44.1 million can't feed themselves. Oh, and the cost of creating those 250,000 jobs is estimated to be $1.3 million per job.
http://leverageacademy.com/blog/2011/03/04/44-million-in-the-u-s-use-food-stamps-14-3-of-population/
More distressing news today indicates that the the real unemployment rate in the United States increased to 10.3% for the month of February.
http://www.gallup.com/poll/146453/Gallup-Finds-Unemployment-Hitting-February.aspx
How long will it take the strategists at the federal government to realize that the strategies they are using are not working, and in fact are hurting the economy?
Thursday, March 3, 2011
U.S Government Does Not Have a Strategic Plan
U.S Government Does Not Have a Strategic Plan
Many find it difficult to believe that the Government of the United
States does not have a strategic plan. While it is true that various departments and agencies within the government have strategic plans (the Department of Transportation usually creates a good strategic plan) the government, as a whole, does not have a long-term strategic plan.
Every four years there is a presidential election and senators and house members are elected every six years in the United States. Whoever is elected as president sets the agenda, along with a Congress who sets the budget. That means the long-term strategy of the federal government can (and often does) change based upon the personal agendas of these individuals.
Have you noticed that sometimes the U.S. Government helps a foreign country and then at other times, after an election, that assistance changes? Or sometimes the relationship with the United Nations is stronger than at other times? Strategic relationships often depend upon who is sitting in the chairs of leadership.
A few years ago I was sitting in the living room of a Prime Minister in the Caribbean listening as he described how the U.S. government developed a relationship with his country only to then find that the United States did not like the fact that offshore gambling was allowed, which could encourage money laundering. According to the PM, the U.S. Government provided enough pressure to cause this small island nation to revamp its policy, a policy that was a major revenue generation for the country.
Strategic planning, a process that has successfully been used going all the way back to ancient Greece, a process created by military institutions (segments of government) and perfected by business, is not used at the macro level by the U.S. Government.
Do you think China's growth is happenstance? It is not. It is part of China's strategic plan that it created years ago. In fact I am told that this is China's eleventh 5-year strategic plan. Thus, China has been working off of strategic plans for the last 55 years.
Perhaps it is time leadership decides where the U.S. should be 10, 15 or even 20 years from now instead of only thinking short-term and changing the agenda all the time. Imagine if a business brought in a new CEO every four years and a new Board every six years and they changed the entire focus of the organization based upon their own personal agendas.......
Need prove the federal government needs to concentrate on strategic planning? The White House blog today (march 3) writes:
"The Federal government owns 1.2 million properties across the country making it the biggest property owner in the United States, but billions of taxpayer dollars are wasted each year on government properties that are no longer needed. This includes roughly 14,000 buildings and structures currently designated as excess and thousands of others that are underutilized."
An organization governed by a strategic plan that is constantly controlled and monitored would never let that happen.
Many find it difficult to believe that the Government of the United
States does not have a strategic plan. While it is true that various departments and agencies within the government have strategic plans (the Department of Transportation usually creates a good strategic plan) the government, as a whole, does not have a long-term strategic plan.
Every four years there is a presidential election and senators and house members are elected every six years in the United States. Whoever is elected as president sets the agenda, along with a Congress who sets the budget. That means the long-term strategy of the federal government can (and often does) change based upon the personal agendas of these individuals.
Have you noticed that sometimes the U.S. Government helps a foreign country and then at other times, after an election, that assistance changes? Or sometimes the relationship with the United Nations is stronger than at other times? Strategic relationships often depend upon who is sitting in the chairs of leadership.
A few years ago I was sitting in the living room of a Prime Minister in the Caribbean listening as he described how the U.S. government developed a relationship with his country only to then find that the United States did not like the fact that offshore gambling was allowed, which could encourage money laundering. According to the PM, the U.S. Government provided enough pressure to cause this small island nation to revamp its policy, a policy that was a major revenue generation for the country.
Strategic planning, a process that has successfully been used going all the way back to ancient Greece, a process created by military institutions (segments of government) and perfected by business, is not used at the macro level by the U.S. Government.
Do you think China's growth is happenstance? It is not. It is part of China's strategic plan that it created years ago. In fact I am told that this is China's eleventh 5-year strategic plan. Thus, China has been working off of strategic plans for the last 55 years.
Perhaps it is time leadership decides where the U.S. should be 10, 15 or even 20 years from now instead of only thinking short-term and changing the agenda all the time. Imagine if a business brought in a new CEO every four years and a new Board every six years and they changed the entire focus of the organization based upon their own personal agendas.......
Need prove the federal government needs to concentrate on strategic planning? The White House blog today (march 3) writes:
"The Federal government owns 1.2 million properties across the country making it the biggest property owner in the United States, but billions of taxpayer dollars are wasted each year on government properties that are no longer needed. This includes roughly 14,000 buildings and structures currently designated as excess and thousands of others that are underutilized."
An organization governed by a strategic plan that is constantly controlled and monitored would never let that happen.
Wednesday, March 2, 2011
Fly the Flexible Pricing Skies
Fly The Flexible Pricing Skies
Allegiant Air has sent a letter to the Department of Transportation floating the idea of offering a new strategy for airline pricing. The consumer would pay a base price and based upon the price of fuel at the time of travel, the final price would actually be higher or lower. The consumer would be offered the option of paying the regular fare or the new flexible fare.
Sound innovative? It is not a new idea, the charter industry already uses a similar approach. It is basically a strategy of pushing fuel hedging to the customer thus mitigating risk to the airlines associated with world events and the price of fuel.
Which would you rather buy, a set price ticket or one that may go up or down depending upon world events and fuel prices? What percentage of the buying public is likely to participate? If your company's financial policy is to select the lowest price, might that fit into this strategy?
We'll have to wait and see what the Dept. of Transportation thinks about this old strategy being used in a new way.
Allegiant Air has sent a letter to the Department of Transportation floating the idea of offering a new strategy for airline pricing. The consumer would pay a base price and based upon the price of fuel at the time of travel, the final price would actually be higher or lower. The consumer would be offered the option of paying the regular fare or the new flexible fare.
Sound innovative? It is not a new idea, the charter industry already uses a similar approach. It is basically a strategy of pushing fuel hedging to the customer thus mitigating risk to the airlines associated with world events and the price of fuel.
Which would you rather buy, a set price ticket or one that may go up or down depending upon world events and fuel prices? What percentage of the buying public is likely to participate? If your company's financial policy is to select the lowest price, might that fit into this strategy?
We'll have to wait and see what the Dept. of Transportation thinks about this old strategy being used in a new way.
Tuesday, March 1, 2011
Two and a Half (minus) Men
Two and a Half (minus) Men
The news is buzzing about the possible end of the television show, Two and a Half Men.
Looking at the situation from purely a strategic perspective, one has to wonder what went wrong? Sure TV shows, like products, have a lifecycle but it didn't appear that the show had progressed to the exit strategy stage as of yet. Two and a Half has been a top-rated show featuring Charlie Harper, a man successful in the entertainment business who earns lots of money, drinks and likes his women. Sound familiar? People watch the show and it is (was) one of CBS's top shows - a proven model for success.
One of the stars of the show, Charlie Sheen, according to the media, lives a similar lifestyle in real life, but much to the dislike of some executives. The media is reporting that Charlie does not have a "morals clause" in his contract, meaning any activities he pursues would not be a violation of his contract.
In business, this type of branding would be great. Consistency between the highly successful character that everyone watches and the real life character might even add value to the business and the brand. Sheen gets paid millions to portray a lifestyle on TV and then criticized for living a similar lifestyle. I hear that no major advertisers have left the show. Perhaps CBS should be supporting Charlie and hope that he makes the news. It might actually draw more viewers to the show. Remember the old PR adage, I don't care what they say as long as they spell my name right?
Some might say Sheen's alleged behavior can be bad for business. A star might get drunk or high, hurt someone, be arrested or even get hurt and miss a few weeks of taping. Ok, I agree. But knowing that those risks exist at the beginning of a season, executives should account for that in its timeline and account for it in its risk assessment and contingency budget.
One media report indicated that Two and a Half Men is a billion dollar business. Surely a cost-benefit analysis would show a delayed taping schedule of a few weeks would not be that detrimental when looking at the overall strategic picture. It is hard to believe that management did not prepare for the recent events and actually bring in PR to mitigate the risk or even capitalize on the events. Instead of consistent marketing and branding of the two Charlie's, it appears we may see a going out of business sign.
That's too bad. I guess we will all be minus two and a half.
The news is buzzing about the possible end of the television show, Two and a Half Men.
Looking at the situation from purely a strategic perspective, one has to wonder what went wrong? Sure TV shows, like products, have a lifecycle but it didn't appear that the show had progressed to the exit strategy stage as of yet. Two and a Half has been a top-rated show featuring Charlie Harper, a man successful in the entertainment business who earns lots of money, drinks and likes his women. Sound familiar? People watch the show and it is (was) one of CBS's top shows - a proven model for success.
One of the stars of the show, Charlie Sheen, according to the media, lives a similar lifestyle in real life, but much to the dislike of some executives. The media is reporting that Charlie does not have a "morals clause" in his contract, meaning any activities he pursues would not be a violation of his contract.
In business, this type of branding would be great. Consistency between the highly successful character that everyone watches and the real life character might even add value to the business and the brand. Sheen gets paid millions to portray a lifestyle on TV and then criticized for living a similar lifestyle. I hear that no major advertisers have left the show. Perhaps CBS should be supporting Charlie and hope that he makes the news. It might actually draw more viewers to the show. Remember the old PR adage, I don't care what they say as long as they spell my name right?
Some might say Sheen's alleged behavior can be bad for business. A star might get drunk or high, hurt someone, be arrested or even get hurt and miss a few weeks of taping. Ok, I agree. But knowing that those risks exist at the beginning of a season, executives should account for that in its timeline and account for it in its risk assessment and contingency budget.
One media report indicated that Two and a Half Men is a billion dollar business. Surely a cost-benefit analysis would show a delayed taping schedule of a few weeks would not be that detrimental when looking at the overall strategic picture. It is hard to believe that management did not prepare for the recent events and actually bring in PR to mitigate the risk or even capitalize on the events. Instead of consistent marketing and branding of the two Charlie's, it appears we may see a going out of business sign.
That's too bad. I guess we will all be minus two and a half.
Sunday, February 27, 2011
The Domino Effect
The Domino Effect
In business, there is a process called The Domino Effect. When one significant event occurs, it often sets off a series or chain of events. This appears to be what is happening in the Middle East and North Africa. One person in Tunisia started an uprising that brought down the country. The people of Egypt quickly saw that it was possible to protest (and win) and the second government fell. Now Libya is on the brink, and there are other countries, such as Saudi Arabia, Bahrain and Yemen, who are experiencing unrest as well. If the dominoes continue to fall, a dozen or so countries could ultimately see new leadership.
The strategic questions at this point are which countries are next? How far will the dominoes fall? Will a European country be one of the dominoes? What about a country in the Americas? These events warrant close watching as the global impact could be significant.
The implications of the revolutions could be significant for foreign affairs and trade for years, if not decades, in the future. New opportunities and new threats will be created. Time to revise the SWOTT analysis.
How can you strategically prepare to take advantage of any opportunities or mitigate any risks associated with the revolution?
In business, there is a process called The Domino Effect. When one significant event occurs, it often sets off a series or chain of events. This appears to be what is happening in the Middle East and North Africa. One person in Tunisia started an uprising that brought down the country. The people of Egypt quickly saw that it was possible to protest (and win) and the second government fell. Now Libya is on the brink, and there are other countries, such as Saudi Arabia, Bahrain and Yemen, who are experiencing unrest as well. If the dominoes continue to fall, a dozen or so countries could ultimately see new leadership.
The strategic questions at this point are which countries are next? How far will the dominoes fall? Will a European country be one of the dominoes? What about a country in the Americas? These events warrant close watching as the global impact could be significant.
The implications of the revolutions could be significant for foreign affairs and trade for years, if not decades, in the future. New opportunities and new threats will be created. Time to revise the SWOTT analysis.
How can you strategically prepare to take advantage of any opportunities or mitigate any risks associated with the revolution?
Saturday, February 26, 2011
NEW HORIZON’S 18TH ANNIVERSARY
THAILAND – March marks the beginning of New Horizon International Consulting LLC’s 18th year in business.
New Horizon wishes to thank its clients, affiliates, strategic partners and various stakeholders for the business relationships formed over the past nearly two decades.
To commemorate the occasion, New Horizon is launching a new program. S.A. Romeo, Founder and CEO of New Horizon states, “As companies begin to grow and expand coming out of the recession, the expectations for companies to perform will be greater.”
New Horizon has designed a management program that helps managers cut through the theory and utilize practical management skills in order to “get things done” and implement the strategic plan.
The management program is offered as a keynote address, half-day seminar and 2-day hands on training.
-30-
New Horizon wishes to thank its clients, affiliates, strategic partners and various stakeholders for the business relationships formed over the past nearly two decades.
To commemorate the occasion, New Horizon is launching a new program. S.A. Romeo, Founder and CEO of New Horizon states, “As companies begin to grow and expand coming out of the recession, the expectations for companies to perform will be greater.”
New Horizon has designed a management program that helps managers cut through the theory and utilize practical management skills in order to “get things done” and implement the strategic plan.
The management program is offered as a keynote address, half-day seminar and 2-day hands on training.
-30-
Monday, February 21, 2011
Uprisings in the Middle East and North Africa
As I write this post from Thailand, the local news is constantly breaking news about the unrest in the Middle East and North Africa.
One has to ask, why all these uprisings at this point in time? Has there been a strategic shift in power that is allowing the people of these countries to feel the need to stand up to leaders who have ruled for decades in some cases?
One has to ask, why all these uprisings at this point in time? Has there been a strategic shift in power that is allowing the people of these countries to feel the need to stand up to leaders who have ruled for decades in some cases?
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