MSMW Case Study: Performance Measurement Systems
Measurement of Delivery Performance and Customer Service
Vendor Delivery Performance: MSMW may seek to maximize point of sales volumes by ensuring stock of inventory is well positioned particularly to match two purchase modes. The first would be loyal customers with routine large volume purchases of either 500 mL or 1.5 L sizes either in multiples or cases. The second would be impulse purchasers who may later become brand loyal customers buying on the spur of the moment. So check-out proximity in smaller stores would be competitive while larger shops would have more space for larger purchases. Measurements of retail sales receipts may be analyzed as similar to Walmart with automatic order parameters and immediate sales results for locations and retail outlets.
Production Schedule Adherence: As the current production schedule supports volume for high season cycles already with regular overstock production this is essential as any volume shortages will impact sales not only at present but at future dates. This company is already working at virtually 100% capacity for domestic customers so additional shifts to support export trade will be essential. Any losses of production due to equipment problems will cost real money as there is no safety net or currently extra production time. Will require extra production schedules for export markets.
Order and Schedule Changes: These will have an effect on export sales requiring more volume in the necessary identified sizes suitable for the target export market. For example, innovations in the water industry currently include single use disposable water containers for 18.5 L dispensers to avoid bisphenol A and other toxic plastic resin chemicals which are affecting purchasing behaviour and perceptions of PET bottle safety globally. Premium priced water products in Canada include which is first introducing waxed cardboard tetra-pak single use containers to differentiate product and distance it from toxic plastic issues. Impact will be immediate with initial stocking in a foreign market taking a significant amount of production time and delay in reorder stocking could be costly. This will require production and product design monitoring.
http://www.tetrapakwater.ca/water.php
Customer Services Level: Depending on the export market multiple languages and EDI systems may be required to handle vendor, distributor and delivery agent inquiries not to mention individual customer suggestions, questions or complaints. Outsourcing some of these services may be an option. Interviews with customers may be cost prohibitive. Asking them to fulfill surveys at point of contact may be an option.
Lost Sales Analysis: In the case of production delays, low vendor delivery performance, order or schedule problems, or poor customer service issues sales volumes in current domestic market will drop and if this is indicative of being effected by export production all of a sudden the export market will be threatened. No domestic company well positioned is likely to sacrifice local sales for global ones. Production managers must ensure a water-tight approach to increasing production to avoid losing local customers due to disparity in inventory which could occur if export product launch is not well timed.
Management of Process Time
Manufacturing Cycle Time: MSMW could investigate current innovative new production plants, tools and techniques to regulate cycle time and ensure an advantage is met in terms of cycle-times.
Delivery Lead Time to Production Lead Time Ratio: A real concern for entering an export market for the first time. It will require a lot of thought and advance stock-piling of inventory to meet possible explosive sales demands. Monitored on production basis.
Setup Times: The current physical plant is geared for day shifts and extending to a night shift while possible may put added stress and strain on current factory equipment requiring additional routine maintenance checks, repairs and possible replacement of costly machines and parts. Monitored on shift-basis.
Material Availability: The high cost of oils and resins based products for plastics production might encourage MSMW to consider new product container modes such as single use disposable 18.5 L bottles and tetra-pak waxed cardboard to reduce possible materials shortages and/or increasing costs. Monitored on invoiced materials costs.
Distance of Material Movement during Production: MSMW may possibly export large volumes and have units of production completed in a factory in a low-wage or production costs country en-route to export destination or in the export market itself. Depending on market-based analysis or aggregates costs comparison of production at home and in target production or export market. Already in domestic market Canada has high costs based on distances of transporting supply materials. Delivery documentation monitoring.
Machine up Time: MSMW will probably require 100% machine-up time which might require an entire identical processing plant capacity available on stand-by should there be any downtime due to repairs, parts, or maintenance schedules which will only increase with increased machine up time. Repairs schedule monitoring.
Customer Service Time: Basically the faster service delivered to customer the better. This is why outsourcing agencies would be useful as they may operate globally and regionally on a 24 hours basis. A good example is given through Nokia’s customer service experience. A nigh-desk representative with full access to Nokia’s local warehouse in Finland complained to management that she could easily process night customer requests for products or deliveries requests there at the warehouse but was not permitted to act on any requests in fact leaving them for day staff losing response times as much as 12 hours on processing customer requests. Management rewarded her with improvement awards and instated her request. Similar service issues could arise at MSMW. Monitoring rates and resolutions times.
Measurement of Production Flexibility
Number of different parts in the bills of materials: This will only increase in diversity due to export market requirements or modifications in packaging and labeling requirements and export packing specifications.
Percentage represented by standard, common, and unique parts within the bills of materials: Again this percentage is likely to increase especially if any new packaging or marketing volumes formats are taken on. Monitor with intent of minimizing number of different parts.
Number of different production processes: Export markets can often represent different production processes. These could be simple substitution processes at fixed points in assembly however they could multiply with multiple export markets. Monitor with intent of minimizing number of different processes.
Position within production processes where the products are differentiated: This will be determined according to management of cost and quality/function of the new processes between design team and production engineering team. Monitor with intent of minimizing number of different processes.
Number of levels in the manufacturing bill of materials: Along with possible new processes and export market requirements this could increase. Primarily there will be a level of domestic manufacturing bill of materials and a level of export manufacturing bill of materials. If they are rational and share many common products then costs may fall on large volume orders. Monitor bills of materials.
Number of new products launched each year and the time taken to launch them: This will depend on the scope of MSMW’s increases in market segmentation. Currently limited to three products and one local market the segmentation taken to include all Canadian provinces would increase this number by a rate of ten. Introducing premium products and/or innovative new modes of packaging would increase product launches and require more focus on developing products for diverse consumer profiles and markets. Monitor to ensure profits increases based on new products sales.
Cross-training of production personnel: Doing so at the managerial level would be beneficial as then the production teams could be similarly trained to produce multiple products for multiple export markets. This would also assist in morale as workers could change processes routinely to increase cross-functionality. This would also empower workers to fully contribute to a TQM workplace philosophy. Monitor through performance evaluations.
Comparison of production output and production capacity: This would require constant monitoring concerning export growth and maintaining local or global inventory for both domestic and new export markets. Sudden possible increases in demand must be expected in export market based on research quality and forecasts as well as any increases in domestic market due to possible new product launches in new provincial markets. Generally capacity should always exceed output.
Management of Quality Performance
Incoming quality from suppliers: Alternate suppliers must be held ready to engage production virtually at any time as any drop in quality of suppliers will translate into production losses and/or sales losses. A good example comes from defunct Canada Packers in Sheffield Mills Nova Scotia where a new line inspector accidentally stapled nearly an entire shipment of Quality Grade A poultry products. Extra production was needed to compensate for the losses on bird which usually retailed for premium prices as few consumers would accept or expect meat staples in premium products.
Production quality, use of statistical process control charts and direct measures of customer satisfaction: All to be measured for consistent increases in quality linked to customer satisfaction.
Data accuracy within the system, including accuracy of inventory, bill of materials, routing and forecasts: Essential. No room for error.
Effectiveness of preventative maintenance programs: Essential. No room for error.
Cost of quality: Measured not to exceed cost versus profits. Each quality measures implementation cost must match an attendant profit. In addition cost free quality improvements should also be a goal. Crate quality circles in company to implement quality cost reduction measures.
Measurement of Financial Performance
Waste Rate: For example in PEI it was found that night shifts at fish plants were becoming difficult to fill so the management decided to hire an entire shift of migrant labourers from The Ukraine. However they had significant problems retaining their workforce as a result with higher waste rates. Waste must be eliminated according to quality management precepts. Waste represents lost profits for rework, returns, and customer dissatisfaction.
Inventory Turns: An indicator that something is wrong with product positioning, marketing, brand image, quality or competitor actions which are effecting maintenance of matching customer desires and needs with loyalty and continued increase of switching non-loyal or undecided customers into loyal customers.
Value-added analysis: Any product positioning, marketing, brand image, quality or competitor responses which are matching customer desires and needs with loyalty and continued increase of switching non-loyal or undecided customers into loyal customers will reward the company with value-added profits. The opposite scenario, a nightmare, is a loss of value added or losses. For example, Hansen’s, a premium fruit juices manufacturer in the USA introduced a line of their products in Korea with minimal packaging changes and fruit combinations which are generally unfamiliar to Korean customers. Their products now reside in the discounted bargain bins of every major discount retailer in the nation.
http://www.hansens.com/
Cost factor productivity measures: If productivity is not generally increasing due to quality management measures then quality is actually not working and the whole process may be traced back to root sources through fish-bone diagrams. Usually the root causes for productivity problems are often attributed to poor middle managers not practicing communication functions upstream and downstream form management to line production teams.
Overhead Efficiencies: Sudden jumps in fixed and/or variable costs will affect overhead and minimizing these factors through local utilities discounts and corporate tax incentives as well as rewarding manager and workers equitably will help control these costs. Rationalizing certain management positions may or may not be an option which may or may not affect staff morale. My first impression of MSMW was that they have way too many managers.
Chequebook accounting methods: Monitoring quarterly profit and loss, proforma invoices and balance sheet from a managerial accounting basis will be prudent and the more EDI the better in terms of such monitoring and opening into a new export market.
System complexity: KISS KISS. Streamline, simplify and standardize.
In conclusion as may be seen every aspect of performance measurement has some importance to MSMW.
Canadian SME International Trade and Marketing - writings upon readings and continued curiousity in the realms of cross cultural business. Some of my opinions are not my own, but I would fancy to say nearly all of them should be credited to the various authors. Deming disciple. I stubbornly persist.
Wednesday, August 06, 2008
Measurement for Quality and Performance
Measurement for Quality and Performance
Management of delivery performance and customer service: Measurement tools include customer feedback mechanisms, surveys, interviews, documentary delivery data and service reports. For example, one area Korean companies appear proficient is in the after-sales service of repairs and defective parts. Most small cities have walk-in centres which appear eeriely similar to medical clinics or veterinary hospitals. Customers take a number and sit in chairs with their product on their lap, be it a rice cooker or remote controlled fan. Even documentary warranties periods are often waived as was my case my computer power cord had shorted in a rainstorm. I was provided free new cord no questions asked.
While this may not have reduced cost it did build impressive brand equity. While focusing on features, delivery timing and reliability are important providing excellent after sales service is an often missed opportunity. How many sales are lost at the outset with poorly trained, under-paid sales staff at big box retail stores?
Management of process line: This may be monitored by inspection however as this is the most costly in terms of time and as W. Edwards Deming demonstrates in the "Red Bead Experiment" quality must be designed into the process from the start be it through kanban, JIT or EDI control systems.
Red Bean Experiment http://video.google.com/videop...d=-4254091070707700146
Eliminating any or all defects at the point of design and production is a reality for many suppliers at Toyota or they do not remain suppliers at Toyota. This means strict adherance to specifications are a key component to successful auto manufacturing in today's globally competitive market. So far few global car companies can exceed the Japanese in their control and management of total quality. If and when they do so (Chinese or otherwise) buyers and shareholders will vote with their check-books. Customer satisfaction in internal downstream production facilities require efficient methods of maximizing productivity and minimizing errors. Kanban and JIT provide cellular-type manufacturing opportunities to soldify quality in production.
Japanese Toyota Car Commercial http://www.youtube.com/watch?v=jJ2yGIYMWwo
Our text lists cycle times, lead times, setup times,materials availability, material movement distances, machine repairs timeand customer service time.
Management of production flexibility: How flexible the design of new products and their profitable production is determines the successful sale of products meeting customer needs. For example, few customers require 4X4s at this time and how quickly a product and factory could be re-engineered to market economy cars would determine market share. This wouldinclude monitoring customer reports as well as cost for quality. North American motor companies have their share of failures in terms of marketing economy cars in times of oil price hikes.
Lemons and Junky Cars Timelines http://www.youtube.com/watch?v=WI5eSFl9O9A
Japanese car companies quickly minimized the number of parts needed to make a car reducing wear, replacement and number of suppliers, with low percentages of unique parts even for premium models, minimized differentiated processes of production, without compromising new product launches and options all saving money or rather placing money in the profits rather than costs category.
Management of quality performance: Control of suppliers is a high art form among the Japanese and sometimes it appears hard to tell if they are not all the same company after all. Higher quality equals higher customer satsifaction and higher quality management with more satisifed employees also equals higher customer satisfaction. Statistical analysis indeed provides data measurements to ensure quality delivery is profitable.
More from W. Edwards Deming - Gospel, "A Prophet Unheard" -vis a vis management of western companies, "We are doing miserably." http://www.youtube.com/watch?v=GHvnIm9UEoQ
Measurement of financial performance: Our text lists such performance measures as monitoring waste levels, returns, value-added costs, cost and productivity measures, overhead, cheque book accounting and systems complexity. The Japanese quality concept of kaizen easily reflects financial performance measures in elimination of waste or "muda".
Measurement of social issues: Our text lists morale, teamwork, corporate vision-enhancement of employee ownership of company vision, leadership abilities,education and training, CSR as methods of improving company performance of social issues.
For many in the banking industry the lack of accountability measures, such as NINJA loans, zero interest loans, etc. were sources of financial advantages in terms of fully leveraged debt buy-outs. Local content requirements and vertical integration can often be financially advantageous in non-free trade pact nations.
Management of delivery performance and customer service: Measurement tools include customer feedback mechanisms, surveys, interviews, documentary delivery data and service reports. For example, one area Korean companies appear proficient is in the after-sales service of repairs and defective parts. Most small cities have walk-in centres which appear eeriely similar to medical clinics or veterinary hospitals. Customers take a number and sit in chairs with their product on their lap, be it a rice cooker or remote controlled fan. Even documentary warranties periods are often waived as was my case my computer power cord had shorted in a rainstorm. I was provided free new cord no questions asked.
While this may not have reduced cost it did build impressive brand equity. While focusing on features, delivery timing and reliability are important providing excellent after sales service is an often missed opportunity. How many sales are lost at the outset with poorly trained, under-paid sales staff at big box retail stores?
Management of process line: This may be monitored by inspection however as this is the most costly in terms of time and as W. Edwards Deming demonstrates in the "Red Bead Experiment" quality must be designed into the process from the start be it through kanban, JIT or EDI control systems.
Red Bean Experiment http://video.google.com/videop...d=-4254091070707700146
Eliminating any or all defects at the point of design and production is a reality for many suppliers at Toyota or they do not remain suppliers at Toyota. This means strict adherance to specifications are a key component to successful auto manufacturing in today's globally competitive market. So far few global car companies can exceed the Japanese in their control and management of total quality. If and when they do so (Chinese or otherwise) buyers and shareholders will vote with their check-books. Customer satisfaction in internal downstream production facilities require efficient methods of maximizing productivity and minimizing errors. Kanban and JIT provide cellular-type manufacturing opportunities to soldify quality in production.
Japanese Toyota Car Commercial http://www.youtube.com/watch?v=jJ2yGIYMWwo
Our text lists cycle times, lead times, setup times,materials availability, material movement distances, machine repairs timeand customer service time.
Management of production flexibility: How flexible the design of new products and their profitable production is determines the successful sale of products meeting customer needs. For example, few customers require 4X4s at this time and how quickly a product and factory could be re-engineered to market economy cars would determine market share. This wouldinclude monitoring customer reports as well as cost for quality. North American motor companies have their share of failures in terms of marketing economy cars in times of oil price hikes.
Lemons and Junky Cars Timelines http://www.youtube.com/watch?v=WI5eSFl9O9A
Japanese car companies quickly minimized the number of parts needed to make a car reducing wear, replacement and number of suppliers, with low percentages of unique parts even for premium models, minimized differentiated processes of production, without compromising new product launches and options all saving money or rather placing money in the profits rather than costs category.
Management of quality performance: Control of suppliers is a high art form among the Japanese and sometimes it appears hard to tell if they are not all the same company after all. Higher quality equals higher customer satsifaction and higher quality management with more satisifed employees also equals higher customer satisfaction. Statistical analysis indeed provides data measurements to ensure quality delivery is profitable.
More from W. Edwards Deming - Gospel, "A Prophet Unheard" -vis a vis management of western companies, "We are doing miserably." http://www.youtube.com/watch?v=GHvnIm9UEoQ
Measurement of financial performance: Our text lists such performance measures as monitoring waste levels, returns, value-added costs, cost and productivity measures, overhead, cheque book accounting and systems complexity. The Japanese quality concept of kaizen easily reflects financial performance measures in elimination of waste or "muda".
Measurement of social issues: Our text lists morale, teamwork, corporate vision-enhancement of employee ownership of company vision, leadership abilities,education and training, CSR as methods of improving company performance of social issues.
For many in the banking industry the lack of accountability measures, such as NINJA loans, zero interest loans, etc. were sources of financial advantages in terms of fully leveraged debt buy-outs. Local content requirements and vertical integration can often be financially advantageous in non-free trade pact nations.
Saturday, August 02, 2008
Standards Council of Canada - Policy Analyst
Reporting to the Manager, International Affairs and Trade, the Policy Analyst provides international trade and standards related policy support, and program/policy support to Advisory Committees through the SCC Secretariats. The Policy Officer contributes to policy and program files including Free Trade Agreements, APEC, WTO-TBT, anti-counterfeiting, product safety, international development and technical assistance on standards, domestic and international regulatory cooperation (SPP-RCF), etc.
The Policy Analyst liaises with standards and conformity assessment experts within the SCC and stakeholders outside the SCC e.g. Advisory Committee members or others to develop and provide policy positions on standards and trade related topics to the Department of Foreign Affairs and Trade and other departments or agencies as required. The Policy Analyst acts as one of SCC’s contacts working with federal and/or provincial/territorial governments, the National Standards System (NSS) partner organizations, industry and others.
As a member of the Advisory Committee (AC) Secretariats, the Policy Analyst prepares and supports the Manager and Chairs of the Advisory Committees by developing papers on AC work, meeting agendas, policy papers and related documents, drafting minutes and following up on action items from AC work plans and corporate plans among other related duties.
Qualifications
* Possess an undergraduate degree in Economics, Trade Policy Law, International Development, Public or Business Administration, Public Policy, or a related discipline, graduate degree preferred
* 2 - 3 years of experience working in policy analysis, development and implementation
* Previous work experience in a government or professional environment
* Willingness to work overtime and travel internationally
* Demonstrated ability to take initiative
* Demonstrated ability to utilize tact and judgment
* Demonstrated reputation for consistently achieving results and meeting deadlines
Competencies
* Excellent communications skills verbal and written
* Excellent interpersonal skills
* Diplomacy
* Ability to work independently with minimal supervision
* Good collaborator and team player
* Excellent attention to detail and ability to see big picture
* Flexibility in juggling multiple tasks and shifting priorities
Non-Essential Assets
* Knowledge of Asia-Pacific (e.g. APEC) and/or Latin American trade issues
* Knowledge of North American (US & Mexico) regulatory and trade issues
* Knowledge of macro-economics including research methodologies
Attributes
* Trusted Collaborator: fulfills promises, customer focus, team building
* Progressive Leader: pragmatic, facilitator, inclusive, integrity, innovative
* Experienced Professional: effective communicator, focus on quality, depth of
expertise
Language
* English essential; French, Spanish or second language an asset
To explore this employment opportunity, please submit your résumé to careers@scc.ca. Note: Interviews will begin August 8, 2008.
Reporting to the Manager, International Affairs and Trade, the Policy Analyst provides international trade and standards related policy support, and program/policy support to Advisory Committees through the SCC Secretariats. The Policy Officer contributes to policy and program files including Free Trade Agreements, APEC, WTO-TBT, anti-counterfeiting, product safety, international development and technical assistance on standards, domestic and international regulatory cooperation (SPP-RCF), etc.
The Policy Analyst liaises with standards and conformity assessment experts within the SCC and stakeholders outside the SCC e.g. Advisory Committee members or others to develop and provide policy positions on standards and trade related topics to the Department of Foreign Affairs and Trade and other departments or agencies as required. The Policy Analyst acts as one of SCC’s contacts working with federal and/or provincial/territorial governments, the National Standards System (NSS) partner organizations, industry and others.
As a member of the Advisory Committee (AC) Secretariats, the Policy Analyst prepares and supports the Manager and Chairs of the Advisory Committees by developing papers on AC work, meeting agendas, policy papers and related documents, drafting minutes and following up on action items from AC work plans and corporate plans among other related duties.
Qualifications
* Possess an undergraduate degree in Economics, Trade Policy Law, International Development, Public or Business Administration, Public Policy, or a related discipline, graduate degree preferred
* 2 - 3 years of experience working in policy analysis, development and implementation
* Previous work experience in a government or professional environment
* Willingness to work overtime and travel internationally
* Demonstrated ability to take initiative
* Demonstrated ability to utilize tact and judgment
* Demonstrated reputation for consistently achieving results and meeting deadlines
Competencies
* Excellent communications skills verbal and written
* Excellent interpersonal skills
* Diplomacy
* Ability to work independently with minimal supervision
* Good collaborator and team player
* Excellent attention to detail and ability to see big picture
* Flexibility in juggling multiple tasks and shifting priorities
Non-Essential Assets
* Knowledge of Asia-Pacific (e.g. APEC) and/or Latin American trade issues
* Knowledge of North American (US & Mexico) regulatory and trade issues
* Knowledge of macro-economics including research methodologies
Attributes
* Trusted Collaborator: fulfills promises, customer focus, team building
* Progressive Leader: pragmatic, facilitator, inclusive, integrity, innovative
* Experienced Professional: effective communicator, focus on quality, depth of
expertise
Language
* English essential; French, Spanish or second language an asset
To explore this employment opportunity, please submit your résumé to careers@scc.ca. Note: Interviews will begin August 8, 2008.
Friday, July 25, 2008
Discussion: Political/Legal versus Cultural/Social Export Obstacles
Discussion: Political/Legal versus Cultural/Social Export Obstacles
What are the legal obstacles? What are the political obstacles? Are these subject to local interpretation? Is the company large enough and able to (within ethical limits) influence local legal and political obstacles? For example, if the target market is China can the company afford to take on consultants like the seeming immortal Henry Kissinger?
If the company is small or a start-up what target markets exist with free or open policies to foreign entrants and products? What cultural obstacles exist in these markets? What logistical challenges exist in these markets? What freight forwarders and/or agents are recommended for these particular markets? if the target market is Dubai and our products are mainly pork sausages such as Schneider's can we in fact deliver "everything but the squeal" here with any significant profits other than a small expatriate community of either non-Muslims or non-Hindu 100% veg.?
What weighing in aggregate values will be given to these various obstacles? What ranking will be completed which is in accordance with the company’s ability to overcome obstacles or challenges unique to a particular market? Ultimately which markets will make it from priority to target designation will only be measured according to our assessment of priorities.
What are the legal obstacles? What are the political obstacles? Are these subject to local interpretation? Is the company large enough and able to (within ethical limits) influence local legal and political obstacles? For example, if the target market is China can the company afford to take on consultants like the seeming immortal Henry Kissinger?
If the company is small or a start-up what target markets exist with free or open policies to foreign entrants and products? What cultural obstacles exist in these markets? What logistical challenges exist in these markets? What freight forwarders and/or agents are recommended for these particular markets? if the target market is Dubai and our products are mainly pork sausages such as Schneider's can we in fact deliver "everything but the squeal" here with any significant profits other than a small expatriate community of either non-Muslims or non-Hindu 100% veg.?
What weighing in aggregate values will be given to these various obstacles? What ranking will be completed which is in accordance with the company’s ability to overcome obstacles or challenges unique to a particular market? Ultimately which markets will make it from priority to target designation will only be measured according to our assessment of priorities.
Examples of wasted research
Examples of wasted research
Spanish search for El Dorado.Geographical exploration of the Nile and Congo river systems. Sony's development of the beta video-tape recording system. My favourite wasted research is Allenby & Co. Outfitters.
A whole host of wasted research gets tossed out with technology flops like:
Apple Lisa
Apple Newton
Digital audio tape
DIVX
Dot-bombs
Dreamcast
E-books
IBM PCjr.
Internet currency
Iridium
Microsoft Bob
The Net PC
NeXT
OS/2
The paperless office
Push technology
QUBE
Smart appliances
Speech recognition
Virtual reality
Web TV
Other
Top Twenty Tech Flops
Spanish search for El Dorado.Geographical exploration of the Nile and Congo river systems. Sony's development of the beta video-tape recording system. My favourite wasted research is Allenby & Co. Outfitters.
A whole host of wasted research gets tossed out with technology flops like:
Apple Lisa
Apple Newton
Digital audio tape
DIVX
Dot-bombs
Dreamcast
E-books
IBM PCjr.
Internet currency
Iridium
Microsoft Bob
The Net PC
NeXT
OS/2
The paperless office
Push technology
QUBE
Smart appliances
Speech recognition
Virtual reality
Web TV
Other
Top Twenty Tech Flops
Export Scenario: Tires for Nigeria
Export Scenario: Tires for Nigeria
We may use the funnel process to provide for a general to specific approach to focus the results of research. Management have defined the objectives. There follow several questions to be answered regarding tires exports to Nigeria.
1. BASIC NEED: Is there a need for car tires in Nigeria? What level of reliability will our resources represent? How comprehensive are the data resources and are they comparable and cost effective? To what secondary and primary resources may we access?
2. MACRO-ECONOMICS: What are the macro-level conditions in Nigeria? Will this involve exploratory or descriptive research approaches or a blend of both?
3. PERFORMANCE POTENTIAL: What is the performance potential and industry attractiveness of car tires in Nigeria? What mix of qualitative versus quantitative data will provide an accurate picture of our chances of success?
4. ELIMINATE RISK OPTIONS: What low return/high risk options are there? What impact will a failure in tires trade with Nigeria have on the export company? Does our company have experience trading in central African nations?
5. TRADE STRATEGY: What specific requirements are needed for adoption and management of trade in Nigeria? Are there multiple levels of protectionism or freedom of entry? What impediments to successful trade can be anticipated?
6. ELIMINATE OPTIONS: Are there any unrealistic options relating to exports to Nigeria? For example, are ports of lading for example in operation or tied with fifty years worth of concrete imports, which would take twenty years to unload?
7. BUDGET AND TIMING: Finally estimate budget and time requirements and compare expected costs with anticipated value of research. Do the risks outweigh the rewards?
8. CONCLUSION: What is our conclusion? Is it an initial "go" or "no go" decision?
We may use the funnel process to provide for a general to specific approach to focus the results of research. Management have defined the objectives. There follow several questions to be answered regarding tires exports to Nigeria.
1. BASIC NEED: Is there a need for car tires in Nigeria? What level of reliability will our resources represent? How comprehensive are the data resources and are they comparable and cost effective? To what secondary and primary resources may we access?
2. MACRO-ECONOMICS: What are the macro-level conditions in Nigeria? Will this involve exploratory or descriptive research approaches or a blend of both?
3. PERFORMANCE POTENTIAL: What is the performance potential and industry attractiveness of car tires in Nigeria? What mix of qualitative versus quantitative data will provide an accurate picture of our chances of success?
4. ELIMINATE RISK OPTIONS: What low return/high risk options are there? What impact will a failure in tires trade with Nigeria have on the export company? Does our company have experience trading in central African nations?
5. TRADE STRATEGY: What specific requirements are needed for adoption and management of trade in Nigeria? Are there multiple levels of protectionism or freedom of entry? What impediments to successful trade can be anticipated?
6. ELIMINATE OPTIONS: Are there any unrealistic options relating to exports to Nigeria? For example, are ports of lading for example in operation or tied with fifty years worth of concrete imports, which would take twenty years to unload?
7. BUDGET AND TIMING: Finally estimate budget and time requirements and compare expected costs with anticipated value of research. Do the risks outweigh the rewards?
8. CONCLUSION: What is our conclusion? Is it an initial "go" or "no go" decision?
MSW Case Study: International Business Plan Implementation
MSW Case Study: International Business Plan Implementation
First of all I would approach the business plan as an evolving concept rather than a boilerplate document.
I would then implement the continuous feedback loop of Figure 3.1 which includes:
Defining the business: As a small regional player in the Canadian bottled water market is it going to be the wisest move to jump to international marketing of a product that has not yet been successfully sold in nine out of ten provinces?
Gathering information: Relevant to the nature of the business vision, is this water company going global? If so with which products? If then to which markets? What information provides context, budget and time relevant sense to making the best targeting decisions for this export product?
Updating the business plan: Plans go sour just as spring water sometimes does. Which countries will or are providing low or negative profits? Which countries are or could provide better target sales profits? Is water product all we should market? Are there other niches (like spa quality muds), which might also be successful?
Implementing changes: How quickly can we enter or exit profitable new or unprofitable markets? How easily can we react to customer suggestions surveys or changing preferences in size, quality or quantity of product? How quickly can we react to external opportunities and threats relevant to the target market?
Will we profess to implement SWOT and forever SWOT our business on a routine basis much as a lighthouse sweeps the shore for the benefit of the avoidance of shoals? If we SWOT then what SWOT analysis is relevant and what SWOT is not?
Evaluating and revising assumptions: What qualitative or quantitative research methods and results will we need to make the best business decisions which fulfill our growth targets or corporate vision? Will we be flexible enough to revisit our corporate vision (with or without the aide of a swami or guru)?
First of all I would approach the business plan as an evolving concept rather than a boilerplate document.
I would then implement the continuous feedback loop of Figure 3.1 which includes:
Defining the business: As a small regional player in the Canadian bottled water market is it going to be the wisest move to jump to international marketing of a product that has not yet been successfully sold in nine out of ten provinces?
Gathering information: Relevant to the nature of the business vision, is this water company going global? If so with which products? If then to which markets? What information provides context, budget and time relevant sense to making the best targeting decisions for this export product?
Updating the business plan: Plans go sour just as spring water sometimes does. Which countries will or are providing low or negative profits? Which countries are or could provide better target sales profits? Is water product all we should market? Are there other niches (like spa quality muds), which might also be successful?
Implementing changes: How quickly can we enter or exit profitable new or unprofitable markets? How easily can we react to customer suggestions surveys or changing preferences in size, quality or quantity of product? How quickly can we react to external opportunities and threats relevant to the target market?
Will we profess to implement SWOT and forever SWOT our business on a routine basis much as a lighthouse sweeps the shore for the benefit of the avoidance of shoals? If we SWOT then what SWOT analysis is relevant and what SWOT is not?
Evaluating and revising assumptions: What qualitative or quantitative research methods and results will we need to make the best business decisions which fulfill our growth targets or corporate vision? Will we be flexible enough to revisit our corporate vision (with or without the aide of a swami or guru)?
Maple Springs Case Study: External Opportunities and Threats in China
Maple Springs Case Study: External Opportunities and Threats in China
Opportunities
Government factors: A certain degree of regional and local autonomy exists within the nation providing possibilities in development of relationship-based remedies to regulatory and departmental red tape. Attraction of FDI and global investment remains competitive.
Economic factors: The top 10% income earners represent nearly 35% of consumption nationally. This would be a favourable group to target for premium bottled water consumption and would represent higher and upper-middle classes.
Technological factors: While overall figures suggest a lagging position in terms of innovation the top 10% of the market consumer profile may exhibit global leading statistics in the area of possible media channels of marketing in mobile phone and Internet usage.
Ecological factors: Asia in general possesses a consumer interest in green or eco-friendly products despite environmental conditions for example termed the well-being movement here in Korea.
Cultural factors: While nearly 93% of the population is Han Chinese a further 8.5% of minorities in terms of languages and customs will need potential consideration dependent upon regional or provincial market area of choice.
Threats:
Government factors: Multiple levels of government bureaucracy and corruption will ensure difficult conditions which will stifle or make a joint-venture with a Chinese company invariably unprofitable for a foreign partner. Import duties and tariffs remain high despite improvement in these areas in recent years. Regular delays in delivery of customs cleared goods also occur making export readiness of any joint venture subject to target country inventory stocking.
Economic factors: Exchange rates, share volumes and prices, commodities prices and investor rights are virtually all centrally controlled in this Communist State. Furthermore the government remains unable to manage high rates of unemployment due to massive closures of unprofitable state run enterprises (of which the potential Chinese joint venture partner may be one of them).
Technological factors: The overall position of China in terms of technological advancement is medium to poor. Such factors would limit overall market share if inadequate media are available to match desired growth targets.
Ecological factors: A horrendous record of environmental destruction has resulted from uncontrolled economic growth in China. As in a majority of developing nations, sustainability has taken a back seat to profits (as it did during the industrial revolution).
Cultural factors: The regional and cultural differences across China due to ethnic differences and localities will make it difficult to have anything but a regional and provincially based consumer market area. While this may be ideal for a small company like MSMW similar growth might be more easily found in other nations.
What is your expert opinion?
Caveat empor! Proceed extremely carefully in any contract negotiations in China as the legislative arbitration of disputes or settlements almost invariably favours the Chinese partner. Seek short terms of renewable mutual consent clauses (every three months for the first year possibly) and continuously monitor accounting. Ensure that a Canadian Chinese member of a global chartered accountants association is given full access to all invoices, accounts, records and enormous responsibility to ensure Chinese partner is not double booking finances. Treat every accounting document handed over by Chinese partner as a potential justification for dissolution of contract. Recommend Korean partner over Chinese one.
Conclusion: Continue to define, gather information, update business plan, implement changes, evaluate and revise assumptions concerning any joint-venture partnership in China. Always have the opportunity to run away quickly with rock-solid exit clauses and agree to invest nothing but the product to reduce any possible losses based on distribution or marketing in China which should be the Chinese partner's full responsibility. It might be a better idea to find a pure source of water in China for direct export to Canadian market dissolving Canadian operating costs overnight.
Sources: CIA Factbook and World Economic Forum China
Opportunities
Government factors: A certain degree of regional and local autonomy exists within the nation providing possibilities in development of relationship-based remedies to regulatory and departmental red tape. Attraction of FDI and global investment remains competitive.
Economic factors: The top 10% income earners represent nearly 35% of consumption nationally. This would be a favourable group to target for premium bottled water consumption and would represent higher and upper-middle classes.
Technological factors: While overall figures suggest a lagging position in terms of innovation the top 10% of the market consumer profile may exhibit global leading statistics in the area of possible media channels of marketing in mobile phone and Internet usage.
Ecological factors: Asia in general possesses a consumer interest in green or eco-friendly products despite environmental conditions for example termed the well-being movement here in Korea.
Cultural factors: While nearly 93% of the population is Han Chinese a further 8.5% of minorities in terms of languages and customs will need potential consideration dependent upon regional or provincial market area of choice.
Threats:
Government factors: Multiple levels of government bureaucracy and corruption will ensure difficult conditions which will stifle or make a joint-venture with a Chinese company invariably unprofitable for a foreign partner. Import duties and tariffs remain high despite improvement in these areas in recent years. Regular delays in delivery of customs cleared goods also occur making export readiness of any joint venture subject to target country inventory stocking.
Economic factors: Exchange rates, share volumes and prices, commodities prices and investor rights are virtually all centrally controlled in this Communist State. Furthermore the government remains unable to manage high rates of unemployment due to massive closures of unprofitable state run enterprises (of which the potential Chinese joint venture partner may be one of them).
Technological factors: The overall position of China in terms of technological advancement is medium to poor. Such factors would limit overall market share if inadequate media are available to match desired growth targets.
Ecological factors: A horrendous record of environmental destruction has resulted from uncontrolled economic growth in China. As in a majority of developing nations, sustainability has taken a back seat to profits (as it did during the industrial revolution).
Cultural factors: The regional and cultural differences across China due to ethnic differences and localities will make it difficult to have anything but a regional and provincially based consumer market area. While this may be ideal for a small company like MSMW similar growth might be more easily found in other nations.
What is your expert opinion?
Caveat empor! Proceed extremely carefully in any contract negotiations in China as the legislative arbitration of disputes or settlements almost invariably favours the Chinese partner. Seek short terms of renewable mutual consent clauses (every three months for the first year possibly) and continuously monitor accounting. Ensure that a Canadian Chinese member of a global chartered accountants association is given full access to all invoices, accounts, records and enormous responsibility to ensure Chinese partner is not double booking finances. Treat every accounting document handed over by Chinese partner as a potential justification for dissolution of contract. Recommend Korean partner over Chinese one.
Conclusion: Continue to define, gather information, update business plan, implement changes, evaluate and revise assumptions concerning any joint-venture partnership in China. Always have the opportunity to run away quickly with rock-solid exit clauses and agree to invest nothing but the product to reduce any possible losses based on distribution or marketing in China which should be the Chinese partner's full responsibility. It might be a better idea to find a pure source of water in China for direct export to Canadian market dissolving Canadian operating costs overnight.
Sources: CIA Factbook and World Economic Forum China
Canadian Export Environment: "Something is rotten in the state of Denmark." (Hamlet)
Canadian Export Environment: "Something is rotten in the state of Denmark." (Hamlet)
Finance: Canada's four largest banks rank in the world's top fifty while at the same time are outpaced and outranked by competitor nation banks. Canada's banks could improve this performance over time especially considering their abilities to develop niche marketing techniques, adapt more successful competitor models of investment, gain insider reflection of target customers and make alliances with larger global banks.
The World’s Safest Banks 2007
http://www.gfmag.com/index.php?idPage=612
Human Relations: Canada's workers are well skilled and trained in comparison to many nations. However in terms of outsourcing Canada has often been a source location of outsourced contracts for the US market rather than an outsource client of such contracts meaning a core element of the international business environment required to succeed in exporting is missing.
http://www.outsourcing-canada.com/nearshore.html
Planning: Canada and Canadian businesses are often considered risk averse. While this protects many companies from losses, international trade planning is supposed to reveal instances where opportunities and potential gains outweigh or mitigate possible risks or uncertainties. However without a managerial openness to global markets development Canadian companies are doomed according to the Association of Canadian Manufacturers and Exporters.
http://www.cme-mec.ca/national/template_na.asp?p=471
Technology: Canada's ranking of 14th place or a D Grade in Innovation in the study of 17 OECD nations is abominable and requires more than a grunting acceptance that significant changes are desperately needed to propel Canada's future record of innovation.
Innovation Nation
http://www.cata.ca/Media_and_E...s/cata_pr10180601.html
Procurement: Canada's abhorrence or shunning of global trade and development or lack of international proclivity to trade must be reversed through any or all possible means as such an indicator must project beyond the business environment to reflect negatively upon Canadian culture itself regardless of its supposed multicultural nature and implicates a problem in the roots of Canadian national identity. Weaknesses in multilateral trade rules openness is not an option in today's globally connected world and gives Canada an overall appearance of excessive nationalism and/or protectionism.
The Global Enabling Trade Report 2008
http://www.weforum.org/documen...r08_browser/index.html
After Sales Service, Marketing and Sales, Operations: All appear flopsy, minuscule and insufficient.
Inbound/Outbound Logistics: Canada’s logistics capabilities are excellent. All of the fixtures are there so why is it not working?
Production: Canada manufactures 55.6% of its exports, and only 27.4% could be considered natural resources or raw materials, along with agricultural products at 11.4%. (The Global Enabling Trade Report 2008). In conclusion The Conference Board of Canada has issued a report card on Canadian competitiveness:
Economy: B
Innovation: D
Environment: C
Education and Skills: B
Health: B
Society: B
“By benchmarking Canada’s performance against its international peers, Canada can learn what it can do to sustain a high quality of life and also what should be avoided.” (A Report Card on Canada, 2008)
How Canada Performs: A Report Card on Canada
http://sso.conferenceboard.ca/HCP.aspx
"Something is rotten in the state of Denmark"
Finance: Canada's four largest banks rank in the world's top fifty while at the same time are outpaced and outranked by competitor nation banks. Canada's banks could improve this performance over time especially considering their abilities to develop niche marketing techniques, adapt more successful competitor models of investment, gain insider reflection of target customers and make alliances with larger global banks.
The World’s Safest Banks 2007
http://www.gfmag.com/index.php?idPage=612
Human Relations: Canada's workers are well skilled and trained in comparison to many nations. However in terms of outsourcing Canada has often been a source location of outsourced contracts for the US market rather than an outsource client of such contracts meaning a core element of the international business environment required to succeed in exporting is missing.
http://www.outsourcing-canada.com/nearshore.html
Planning: Canada and Canadian businesses are often considered risk averse. While this protects many companies from losses, international trade planning is supposed to reveal instances where opportunities and potential gains outweigh or mitigate possible risks or uncertainties. However without a managerial openness to global markets development Canadian companies are doomed according to the Association of Canadian Manufacturers and Exporters.
http://www.cme-mec.ca/national/template_na.asp?p=471
Technology: Canada's ranking of 14th place or a D Grade in Innovation in the study of 17 OECD nations is abominable and requires more than a grunting acceptance that significant changes are desperately needed to propel Canada's future record of innovation.
Innovation Nation
http://www.cata.ca/Media_and_E...s/cata_pr10180601.html
Procurement: Canada's abhorrence or shunning of global trade and development or lack of international proclivity to trade must be reversed through any or all possible means as such an indicator must project beyond the business environment to reflect negatively upon Canadian culture itself regardless of its supposed multicultural nature and implicates a problem in the roots of Canadian national identity. Weaknesses in multilateral trade rules openness is not an option in today's globally connected world and gives Canada an overall appearance of excessive nationalism and/or protectionism.
The Global Enabling Trade Report 2008
http://www.weforum.org/documen...r08_browser/index.html
After Sales Service, Marketing and Sales, Operations: All appear flopsy, minuscule and insufficient.
Inbound/Outbound Logistics: Canada’s logistics capabilities are excellent. All of the fixtures are there so why is it not working?
Production: Canada manufactures 55.6% of its exports, and only 27.4% could be considered natural resources or raw materials, along with agricultural products at 11.4%. (The Global Enabling Trade Report 2008). In conclusion The Conference Board of Canada has issued a report card on Canadian competitiveness:
Economy: B
Innovation: D
Environment: C
Education and Skills: B
Health: B
Society: B
“By benchmarking Canada’s performance against its international peers, Canada can learn what it can do to sustain a high quality of life and also what should be avoided.” (A Report Card on Canada, 2008)
How Canada Performs: A Report Card on Canada
http://sso.conferenceboard.ca/HCP.aspx
"Something is rotten in the state of Denmark"
Summer Holiday 2008
Summer Holiday 2008
Bangkok arrival was uneventful I took two local buses to near my destination for about two dollars. The hotel location is still pretty quiet but a couple of nearby streets are full of foreign businesses from Africa, India and other parts of Asia. The area already has many freight forwarders companies but now has many local foreign buyers. In particular I found an Indian restaurant just around the corner with an amazing street for people watching which reminded me a lot of the market area of Aswan.
The Loy Nava dinner cruise was really special they sent a van to pick me up and take me to the pier. Then I was almost late for the early dinner cruise. But they came back and got me.There were only about 15 people on the boat but it was really beautiful food, the river in Bangkok is surrounded with well lit temples, bridges, palaces and hotels. It was really exotic and I had chosen the fish menu so I didn't mind eating and there was really enough for two. I bought a few light weight shirts/shorts at a large market called MBK.
Loy Nava Cruises
Flight to Colombo was uneventful and the food was very good they had grilled sea bass (hamour) a fish I have actually caught once in the Persian Gulf. Steven from BlinkBonnie was there as planned and he took me the 2.5 hours to Kandy. I had a choice of rooms and selected one with a private balcony. The first morning I took my bag and laundry to market (to have a zipper repaired) and then did a little shopping for batiks and spices/oils. Also I bought genuine Columbia travel trousers for 25 USD.
Blink Bonnie Guest House
Earlier in the week I went to the Kandiyan Dancing Hall to see their performance for three dollars. They changed location. Yesterday I went to an aryuvedic massage place I had visited in 2002 the price went up but I got a discount 37 dollars for three hours including the oil pot dripping down over the head and steam bath. I also went to the Buddhist Publication Society to buy a few books on Sri Lanka's history and culture. Then I went to the Queen's Hotel Pool for a swim for a 1.50 USD. Then after dinner ( I usually have a curry at my guesthouse) I went to one of the three bars here (in a city of 1.5 million) across the lake from my hotel.
Kandyan Dance
Queens Hotel
My schedule is tentative one day study/homework and one day leisure. I am progressing on courses in international management planning and international trade market research. I am starting fourth chapters in third week and have templates for both major assignments (international business plan and international market comparison) both done. I have hunted around for a cool internet cafe with a/c and found one a couple of days ago. As well a plan for the weekend is to walk to a tea factory museum 7km from my hotel in the morning and then go for another 1.5 hour massage in the afternoon before dinner.
A couple of mornings ago raucous monkeys attacked my patio furniture and rifled around on the balcony as I had left a banana out there by accident. They made a muddy mess of footprints and got the impression that their logic draws the conclusion that what is mine is theirs.
Bangkok arrival was uneventful I took two local buses to near my destination for about two dollars. The hotel location is still pretty quiet but a couple of nearby streets are full of foreign businesses from Africa, India and other parts of Asia. The area already has many freight forwarders companies but now has many local foreign buyers. In particular I found an Indian restaurant just around the corner with an amazing street for people watching which reminded me a lot of the market area of Aswan.
The Loy Nava dinner cruise was really special they sent a van to pick me up and take me to the pier. Then I was almost late for the early dinner cruise. But they came back and got me.There were only about 15 people on the boat but it was really beautiful food, the river in Bangkok is surrounded with well lit temples, bridges, palaces and hotels. It was really exotic and I had chosen the fish menu so I didn't mind eating and there was really enough for two. I bought a few light weight shirts/shorts at a large market called MBK.
Loy Nava Cruises
Flight to Colombo was uneventful and the food was very good they had grilled sea bass (hamour) a fish I have actually caught once in the Persian Gulf. Steven from BlinkBonnie was there as planned and he took me the 2.5 hours to Kandy. I had a choice of rooms and selected one with a private balcony. The first morning I took my bag and laundry to market (to have a zipper repaired) and then did a little shopping for batiks and spices/oils. Also I bought genuine Columbia travel trousers for 25 USD.
Blink Bonnie Guest House
Earlier in the week I went to the Kandiyan Dancing Hall to see their performance for three dollars. They changed location. Yesterday I went to an aryuvedic massage place I had visited in 2002 the price went up but I got a discount 37 dollars for three hours including the oil pot dripping down over the head and steam bath. I also went to the Buddhist Publication Society to buy a few books on Sri Lanka's history and culture. Then I went to the Queen's Hotel Pool for a swim for a 1.50 USD. Then after dinner ( I usually have a curry at my guesthouse) I went to one of the three bars here (in a city of 1.5 million) across the lake from my hotel.
Kandyan Dance
Queens Hotel
My schedule is tentative one day study/homework and one day leisure. I am progressing on courses in international management planning and international trade market research. I am starting fourth chapters in third week and have templates for both major assignments (international business plan and international market comparison) both done. I have hunted around for a cool internet cafe with a/c and found one a couple of days ago. As well a plan for the weekend is to walk to a tea factory museum 7km from my hotel in the morning and then go for another 1.5 hour massage in the afternoon before dinner.
A couple of mornings ago raucous monkeys attacked my patio furniture and rifled around on the balcony as I had left a banana out there by accident. They made a muddy mess of footprints and got the impression that their logic draws the conclusion that what is mine is theirs.
Thursday, July 17, 2008
FITT recruiting for Manager, Education and Certification and Coordinator, Marketing.
FITT, the world’s leading international trade training and professional certification authority, is presently recruiting for 2 positions in Ottawa: Manager, Education and Certification and Coordinator, Marketing.
The new Manager, Education and Certification will manage, coordinate and implement FITT’s educational and certification programs which are administered through a global delivery network of educational partners. The Manager will be responsible for managing all aspects of individual certifications; educational partnerships (delivery and accredited partners); educational partner relations; course exemptions; and, assist in the development of financials for the unit and initiate cost efficiencies. Salary range: $50-60K.
The Coordinator, Marketing will be responsible for coordinating, implementing and supporting FITT’s marketing communications activities with a view to client retention/recruitment, brand recognition and expanding market presence. The Coordinator will also be responsible for the administrative duties required to support the marketing and business development activities and maintain the overall integrity and accuracy of the marketing and membership database. Salary range: $35-42K.
Please forward your curriculum vitae and cover letter by August 6, 2008 to info@fitt.ca. Visit www.fitt.ca/about/employmentopportunities.htm for full job descriptions. We thank all candidates in advance and advise that only those selected for interview will be contacted.
The new Manager, Education and Certification will manage, coordinate and implement FITT’s educational and certification programs which are administered through a global delivery network of educational partners. The Manager will be responsible for managing all aspects of individual certifications; educational partnerships (delivery and accredited partners); educational partner relations; course exemptions; and, assist in the development of financials for the unit and initiate cost efficiencies. Salary range: $50-60K.
The Coordinator, Marketing will be responsible for coordinating, implementing and supporting FITT’s marketing communications activities with a view to client retention/recruitment, brand recognition and expanding market presence. The Coordinator will also be responsible for the administrative duties required to support the marketing and business development activities and maintain the overall integrity and accuracy of the marketing and membership database. Salary range: $35-42K.
Please forward your curriculum vitae and cover letter by August 6, 2008 to info@fitt.ca. Visit www.fitt.ca/about/employmentopportunities.htm for full job descriptions. We thank all candidates in advance and advise that only those selected for interview will be contacted.
Monday, July 14, 2008
Michael Porter's Value Chain and Canada's Competitiveness
Michael Porter's Value Chain and Canada's Competitiveness
Finance: The Royal Bank of Canada ranks as Canada’s safest bank listing and comes in at 17th out of 50 in 2007 World’s Safest Banks at Global Finance with a Standard and Poor’s AA-, Moody’s Aaa, Fitch’s AA and total assets of 503 billion USD. Wells Fargo scores significantly higher with fewer assets.
Toronto Dominion comes in at 27th with a Standard and Poor’s AA-, Moody’s Aaa, and Fitch’s AA- and total assets of 368 billion USD. The Commonwealth Bank of Australia scores higher with fewer performing assets.
Bank of Nova Scotia ranks 38th Standard and Poor’s AA-, Moody’s Aa1, and Fitch’s AA- with 355 billion USD in performing assets. The Australia and New Zealand Banking Group is ranked higher with fewer performing assets.
Finally Bank of Montreal squeaks in at 48th with Standard and Poor’s A+, Moody’s Aa1 and Fitch’s AA- and 300 billion performing assets. Svenska Handelsbanken of Sweden performs better with fewer assets. At the same time Canada is considered a low-risk nation politically, socially and economically.
http://www.gfmag.com/index.php?idPage=612
Human Relations: May be interpreted as CSR or industrial or labour relations. However the ILO or International Labour Organization has seen significantly higher complaints tabled from Canada since 1982 possibly as the result of exclusion of labour rights in the Canadian Charter of Rights and Freedoms. The large number and variety of Canadian labour jurisdictions are described as a source of multiplicity of complaints carried over to the ILO as compared to other developed nations which have fully centralized labour legislation such as the USA, the UK and Australia. Legislation concerning collective bargaining, right to strike and freedom of association are considered regional political issues rather than national judicial ones as they are in comparative developed nations. (Blaike, 2002) Such regional disparities in legislation might contribute to Canada’s Human Development Index 4th place ranking for 2007/2008. Iceland comes first, Norway comes second and Australia comes third. These issues may be considered cultural issues: negotiations, marketing, barriers
http://www.cec-cce.ca/research/canada_and_the_ilo.doc
http://hdrstats.undp.org/countries/data_sheets/cty_ds_CAN.html
Planning: The Competition Policy Review Panel released its report, “Compete to Win” on June 26, 2008 recommends lowered taxes across the board from corporate to personal incomes, generous support for excellence in higher education, higher foreign students volumes and reformed immigration policies, greater tax controls for cities, increased venture capital for small businesses, elimination of regional barriers to the flows of goods, services and people between provinces, reversal of border thickening with the USA, conclusion of trade agreements with priority list trading partners, assessment of regulations reducing competitiveness, increased innovation and research & development policies which result in growth. The report concludes, “that Canada must raise its productivity through greater openness to talent, capital and innovation, through vigorous competition, and through a more ambitious mindset.” These issues could be considered negotiations, marketing, and barriers-based opportunities for improvement.
http://www.ic.gc.ca/epic/site/cprp-gepmc.nsf/en/home
Technology: Canada ranks 14th place or a D Grade in Innovation in the study of 17 OECD nations which is ripe for improvement according to the Conference Board of Canada and the Canadian Advanced Technology Alliance (CATAAlliance). The CATA recommends development of a national brand (Eg. Denmark: Milk also something I fully recommend), creation of an industrial strategy covering virtually every trade sector in the nation, removal of all trade barriers, attraction and retention of the world’s best talent, encouraging continued executive leadership training and commitments to lifetime learning among managers, development of special IT training incentives for women, advancement of ICT adoption in small businesses. "We are also challenging all the political parties to evaluate their respective platforms against those of Canada's High Tech Party . . . CATAAlliance. For Canada to prosper we must adopt an Innovation Nation mindset and culture. Let's set the gold standard." (Reid, 2007) These issues could be considered negotiations, marketing, and barriers-based opportunities for improvement.
http://www.cata.ca/Media_and_Events/Press_Releases/cata_pr10180601.html
Procurement: Imports primarily sourced in the USA at 54.9%, the EU at 12.3%, China at 8.7%, Mexico at 4% and other nations aggregated as 20.1% with no other nation exceeding Mexico’s 4%. However overall proclivity to trade is seen as 17th place globally out of 118 nations. Canada’s procurement policies are lagging in terms of breadth of international markets indicating a greater opening to the world from 26th place and could learn much from a study of Germany’s leading position in this area. Regional sales are not a significant problem. However great weakness in terms of multilateral trade rules openness at 53rd place indicates much could be learned from Hungary in terms of how to negotiate trade terms with foreign nations. (The Global Enabling Trade Report 2008).
http://www.weforum.org/documents/getr08_browser/index.html
After Sales Service: Very few pages turn up on google when the key words Canada and “global after sales service” are entered leading to a suspicion that local distributors spend a lot of time sitting next to a dusty telephone on Canadian global after-sales services.
Marketing and Sales: Few global marketing and sales agencies.
Operations: "canadian global operations" on google comes up with four pages.
Inbound/Outbound Logistics: The 2008 Global Economic Forum Global Enabling Trade Report scores Canada in availability and quality of transport infrastructure and transport services as two of ten essential pillars to global trade. Designed by Michael Porter this index is useful in assessment in concert with the Global Competitiveness Index.
http://www.weforum.org/documents/getr08_browser/index.html
In terms of transport infrastructure Canada scores 3rd overall out of 118 member nations covered in the study. However Canada’s weaknesses in infrastructure are displayed in its score of road traffic congestion ranked 49th out of 118 nations with Bangladesh leading in least congested roads. Canada’s airport density is only second to that of Norway which suggests one underutilized cargo shipping method prohibitive due to soaring fuel costs. Transshipment connectivity is ranked 17th but the range in scores between Canada’s 523 and the UK’s 580 indicates that the range of differentiation in ranking is slight among the top competitors. Airport infrastructure is also very narrowly ranged in global scores while Canadian railroad planners might look to Switzerland to increase rail transport quality. Similarly Canadian road planners might look to France to improve road quality. Finally Canadian port planners might seek quality improvement of port infrastructure examples in examining Singapore. Canada’s logistics capabilities are excellent.
In terms of transport services Canada places 15th overall out of 118 member nations covered in the study. Weaknesses are revealed in liner shipping connectivity and Canada could be taking lessons on this in China. Ease and affordability of shipment and competence in logistics are scored quite close to world leader The Netherlands. Ability and ease of tracking as well as timeliness of delivery to destination also closely follow world leader Singapore. Postal service efficiency remains strong in relation to world leader Japan. Canada’s logistics providers could learn more from global leaders.
Production: Canada manufactures 55.6% of its exports, and only 27.4% could be considered natural resources or raw materials, along with agricultural products at 11.4%.
In conclusion The Conference Board of Canada has issued a report card on Canadian competitiveness.
Economy: B
Innovation: D
Environment: C
Education and Skills: B
Health: B
Society: B
“By benchmarking Canada’s performance against its international peers, Canada can learn what it can do to sustain a high quality of life and also what should be avoided.” (A Report Card on Canada, 2008)
http://sso.conferenceboard.ca/HCP.aspx
Friday, July 04, 2008
Port Hoping Fix Is Quick [Halifax]
Port Hoping Fix Is Quick [Halifax]
(ChronicleHerald – Tom Peters)
The Halifax Port Authority is concentrating on getting over the short-term pain before it turns its attention to long-term gain, says authority president and CEO Karen Oldfield. "We are so focused on getting our volumes up, increasing our business through the port, we are not even looking at 2009," she said Thursday after the authority’s annual meeting.
The port, like several others across North America, will show a continued decrease in container cargo when six-month figures are released in July. Ms. Oldfield would not say how big a decline she expects, but James Foote, CN’s executive vice-president of sales and marketing, estimated its volumes through the port are down about 15%.
"We are looking very, very short term. Long-term prospects are excellent. Short term, we are in choppy water and we are working really hard at every aspect of the business – the reefers (refrigerated cargo), retail, every little place that we can find commodities that go into boxes that go across our port. That’s where we are," Ms. Oldfield said.
Paul DuVoisin, the port’s commercial director based in the New York / New Jersey area, told the annual meeting that international shipping lines expect to see a turnaround in 2009. Imports into North America, particularly into the U.S., have dropped significantly this past year, a decrease attributed to factors such as the mortgage crisis. Household furnishings account for a large percentage of imports.
Ms. Oldfield said it is difficult to predict when Halifax will begin to see a cargo upsurge but she is optimistic about short-term prospects.
"We feel we are in good position . . . but it is very hard to actually seal the deal, if I can put it that way," she said. "How it works is, we have our front line and deal-makers, which are our terminals operators and CN. We support them. We help them. We do all the analysis for them, but at the end of the day, it is the terminal operators and CN who actually sign the contracts with carriers," she said.
Ms. Oldfield was also adamant that the cargo decline has not affected overall port operations. "We want people to understand the HPA is a rock-solid financial organization. We have received an A stable credit rating from Standard & Poor’s, that is investment grade. Why I make that point is, it means we are in a great financial position to weather the chop and to continue to reinvest ourselves and with our partners," she said.
Ms. Oldfield also stressed the port is about more than just containerized cargo. "We are talking about our cruise business, which is rock-solid. We are talking about considerable real estate holdings, which are very strong, and we are also talking about break-bulk and other kinds of cargo that are doing quite well too," she said.
The port’s cruise sector is having a record year with 131 cruise visits scheduled, which will bring in an estimated 215,000 to 220,000 passengers. On the real estate side, the port continues to work on its $110-million seawall project, which has already attracted a number of tenants. The authority is also giving consideration to the development of a hotel on its property.
Paul MacIsaac, senior vice-president, said in his financial report that the authority has a strong balance sheet. The authority has $154 million in assets and carries a debt of $25 million. Final revenues for 2007 were flat at $28.2 million, down slightly from $28.4 million in 2006. The authority had net earnings of $6.2 million, down from $7.8 million in 2006, and cash flow of $14 million, down from $14.7 million the previous year.
New Dalhousie Initiative Builds Momentum for Atlantic Gateway
New Dalhousie Initiative Builds Momentum for Atlantic Gateway
(Atlantic Canada Opportunities Agency)
Dalhousie University is launching an exciting and unique Atlantic Gateway initiative through its new Centre for International Trade and Transportation.
Dalhousie’s “Atlantic Gateway Initiative” is a two-year partnership between the Centre for International Trade and Transportation, the Atlantic Canada Opportunities Agency (ACOA) and the Province of Nova Scotia. The province has invested $50,000 and ACOA has invested $115,000 in the two- year pilot project.
“We know the Atlantic Gateway will play a vital role in the economic success of our region," said Premier Rodney MacDonald. "The potential benefits for Nova Scotia are endless. This initiative is the next step as we move to take advantage of the opportunities the Atlantic Gateway will provide. It's wonderful to see Dalhousie University, and the federal and provincial governments working toward this common goal.”
“Our government is pleased to be working with provinces and universities to develop education and research programs that support and advance the country’s gateways and corridors,” said Peter MacKay, Minister of National Defence and Minister of ACOA. “Combined with our other trade corridors, the Atlantic Gateway is a vital link in the international trade system, linking North America with the world.”
The Centre for International Trade and Transportation was originally created as the Centre for International Business Studies in 1975. In late 2007, Dalhousie decided to rename and refocus the Centre, making the Atlantic Gateway Initiative its first major project.
"The Atlantic region is a key national gateway for people and products and it has been so since the pre-Confederation era," said Greg Hebb, director of the Dalhousie Centre for International Trade and Transportation. "Our centre at Dalhousie is uniquely positioned to grow and to transfer the skills, knowledge and context required for this historic role. We welcome the support and guidance of ACOA and the province of Nova Scotia."
By providing a combination of research and educational support, the goal of the Initiative is to bring the academic community into the development of the Atlantic Gateway strategy. The pilot will see expanded course offerings, working papers, and an international conference.
A steering committee, with representatives from the three partners and the academic and private sectors, will provide input during the two-year pilot.
Nova Scotia’s potential as an international gateway includes exponential growth in container traffic, and significant growth opportunities in international air passenger and cargo traffic handling, and the cruise ship industry.
Oil Prices `Blessing in Disguise' for Asia, Jen Says
Oil Prices `Blessing in Disguise' for Asia, Jen Says
(Bloomberg – Kim Kyoungwha)
Record oil prices are “a blessing in disguise” for Asian economies and currencies as high transport costs will force the region to become less reliant on exports and more on local demand, Morgan Stanley said.
Surging oil prices that are raising Asian exporters' costs to ship everything from cars to clothes to the West will encourage them to rely on domestic customers and this will help reduce global imbalances, according to Stephen Jen, chief currency strategist at Morgan Stanley in London. Crude oil reached an all-time high of $141.67 a barrel today.
“In the short run, this is clearly a negative shock to Asia, and for Asian assets, including currencies,” Jen, who used to work at the Federal Reserve and the International Monetary Fund, wrote in a report yesterday. “In the long run, however, this shock could accelerate the move away from exports.”
Global imbalances “should normalize” as Asia's trade and economic growth, which have thrived partly due to the low cost of transport in the past two decades, are affected, Jen said.
Five of the 10 most-active Asian currencies outside of Japan fell this year, led by a 12% decline in the Thai baht and an 11% loss in South Korea's won, according to data compiled by Bloomberg. Taiwan's dollar and China's yuan are the biggest gainers.
Oil prices have more than doubled over the past 12 months, causing global inflation to accelerate and prompting some governments in Asia such as Indonesia and Malaysia to increase local fuel prices.
Japan's household spending slumped in May, the ratio of jobs available fell to a three-year low and the inflation rate almost doubled, data showed today, signaling that the economy's longest postwar expansion may be over. New Zealand's economy contracted 0.3% last quarter, putting the nation on the brink of its first recession in 10 years, while India's inflation accelerated more than estimated to the fastest pace in 13 years.
Rising oil prices are also bolstering import bills and squeezing trade accounts in Asia. South Korea posted a current account shortfall for a sixth month in May, the longest run of deficits since the 1997 Asian financial crisis, data showed today.
High transport costs act like “tariffs” and undermine trade, Morgan Stanley's Jen said, adding that the increase in oil prices coincided with the decline in China's re-exports. Asia exports raw and intermediate goods to China, and China, in turn, applies the final phase of production before shipping manufactured goods overseas. The proportion of goods that are first imported from elsewhere and then re-exported out of China declined to 44% from 57% in late 2001, Jen said.
“The ultra positive long-term outlook many investors may have on Asia should be tempered somewhat,” Jen said. “High costs of transport will act as a temporary headwind for many Asian currencies.”
The Baltic Dry Index, a measure of shipping costs for commodities, gained for a second consecutive day. The index tracking transport costs on international trade routes advanced 229 points, or 2.5%, to 9,473 points, according to the Baltic Exchange in London.
While this oil “shock” may encourage more regionalization as high transport costs erode some differences in labor costs, financial globalization is likely to continue to accelerate, according to the report. More global capital should be attracted to Asia, Jen said.
“The root cause of high transport costs will be a main driver of financial globalization,” he said. “Financial protectionism is likely to be a more serious issue than trade protectionism.”
Chronicle of a Farce Foretold, by Kang Chun-suk
Chronicle of a Farce Foretold, by Kang Chun-suk
Chosun Ilbo July.4,2008
What will Korea be like in July 2009? Of course we cant predict that far ahead: we can barely see beyond our noses. But here are some things that might well happen.
The production team of the MBC news program "PD Diary" are ordered to take a 15-day tour of the U.S. and call an emergency meeting. America, they know, is mad cow disease hell, a nightmare country that butchers 7 million cattle over 30 months old a year and flogs them to fast food outlets. A movie star, though he was seen enjoying a beef burger in Los Angeles, said, "It's better to drop potassium cyanide into your mouth than eat American beef." There is no guarantee that no U.S. beef is used in the oxtail soup dens of New York and cold noodle parlors in Washington that Korean tourists flock to.
The four-member team has to choose from a handful of alternatives. One is to prepare enough frozen box lunches to last them 15 days. That totals 180 boxes, so the bulk is a serious problem. Plus they lack the confidence to ask all the hotels where they will stay to keep the lunch boxes in their refrigerators. A second alternative is to eat only in vegetarian restaurants. But will all the cities they visit have them? What's more, they are not sure if they will have the strength to carry the heavy equipment if they eat only greens.
“We shouldn't have knowingly fabricated the story that an American woman died from variant Creutzfeldt-Jakob disease (vCJD), the human form of mad cow disease, and suggested that a downer cow was infected with BSE,” they reflect. But it’s no use crying over spilt milk. How to get away with prompting a middle school student to cry, "I feel condemned to die of mad cow disease before I have realized my dreams," that is the challenge before them. Just a note at the end of the program would have got them off the hook: "The number of American cattle confirmed to have been infected with BSE is three. All three were born before powdered meat and bone feed was banned in 1997. While the age of cattle is an issue in Korea, no instance of BSE cattle has been confirmed in the U.S. since.” Ah well.
The question is what to do now. The team decides their best choice is to demand that management pay allowances and take out insurance identical to those paid to reporters covering the Iraq War. They are risking their lives, after all.
Now the network has some thinking to do. The origin of BSE is Britain, where tens of times more cows than in the U.S. have died of BSE. Nor did other European countries escape the scourge. Ninety-six countries including Asian ones import U.S. beef without restrictions, so management will have to treat all reporters and producers dispatched to any of those countries as war correspondents. The costs would be immense, and the company would face massive embarrassment if the world press found out. In the end, the whole “PD Diary” team hand in their resignations.
Reports have it that opposition lawmakers who publicly called their children home from study in the U.S. for fear of mad cow disease have secretly sent them back. News that a co-chairman of the People's Association for Measures Against Mad Cow Disease was spotted by college students buying U.S. beef from an alley butcher is so commonplace that newspapers can find no space for it. Leaders of the Korean Confederation of Trade Unions, who staged walkouts on the pretext that if workers eat U.S. beef, it will affect working conditions, hang their heads as U.S. consumer organizations, provoked by moves in Korea, start boycotting Korean-made cars and electronics products. But members of the Korean Teachers and Educational Worker's Union are made of sterner stuff and persist in putting up posters opposing U.S. beef imports in front of schools.
But ordinary Koreans seem to have recovered from mad cow disease. Housewives who took part in the candlelight vigils wheeling their baby carriages now keep the TV unplugged. They have no great hopes for the incompetent administration that sowed the seeds of the farce in May, June and July the previous year. What remains is pity, for the government and for the KCTU, and the looming question how we can keep importing expensive oil if we squander the US$10 billion in our trade surplus with the U.S.
Chronicle of a Farce Foretold, by Kang Chun-suk
Chronicle of a Farce Foretold, by Kang Chun-suk
Chosun Ilbo July.4,2008
What will Korea be like in July 2009? Of course we cant predict that far ahead: we can barely see beyond our noses. But here are some things that might well happen.
The production team of the MBC news program "PD Diary" are ordered to take a 15-day tour of the U.S. and call an emergency meeting. America, they know, is mad cow disease hell, a nightmare country that butchers 7 million cattle over 30 months old a year and flogs them to fast food outlets. A movie star, though he was seen enjoying a beef burger in Los Angeles, said, "It's better to drop potassium cyanide into your mouth than eat American beef." There is no guarantee that no U.S. beef is used in the oxtail soup dens of New York and cold noodle parlors in Washington that Korean tourists flock to.
The four-member team has to choose from a handful of alternatives. One is to prepare enough frozen box lunches to last them 15 days. That totals 180 boxes, so the bulk is a serious problem. Plus they lack the confidence to ask all the hotels where they will stay to keep the lunch boxes in their refrigerators. A second alternative is to eat only in vegetarian restaurants. But will all the cities they visit have them? What's more, they are not sure if they will have the strength to carry the heavy equipment if they eat only greens.
“We shouldn't have knowingly fabricated the story that an American woman died from variant Creutzfeldt-Jakob disease (vCJD), the human form of mad cow disease, and suggested that a downer cow was infected with BSE,” they reflect. But it’s no use crying over spilt milk. How to get away with prompting a middle school student to cry, "I feel condemned to die of mad cow disease before I have realized my dreams," that is the challenge before them. Just a note at the end of the program would have got them off the hook: "The number of American cattle confirmed to have been infected with BSE is three. All three were born before powdered meat and bone feed was banned in 1997. While the age of cattle is an issue in Korea, no instance of BSE cattle has been confirmed in the U.S. since.” Ah well.
The question is what to do now. The team decides their best choice is to demand that management pay allowances and take out insurance identical to those paid to reporters covering the Iraq War. They are risking their lives, after all.
Now the network has some thinking to do. The origin of BSE is Britain, where tens of times more cows than in the U.S. have died of BSE. Nor did other European countries escape the scourge. Ninety-six countries including Asian ones import U.S. beef without restrictions, so management will have to treat all reporters and producers dispatched to any of those countries as war correspondents. The costs would be immense, and the company would face massive embarrassment if the world press found out. In the end, the whole “PD Diary” team hand in their resignations.
Reports have it that opposition lawmakers who publicly called their children home from study in the U.S. for fear of mad cow disease have secretly sent them back. News that a co-chairman of the People's Association for Measures Against Mad Cow Disease was spotted by college students buying U.S. beef from an alley butcher is so commonplace that newspapers can find no space for it. Leaders of the Korean Confederation of Trade Unions, who staged walkouts on the pretext that if workers eat U.S. beef, it will affect working conditions, hang their heads as U.S. consumer organizations, provoked by moves in Korea, start boycotting Korean-made cars and electronics products. But members of the Korean Teachers and Educational Worker's Union are made of sterner stuff and persist in putting up posters opposing U.S. beef imports in front of schools.
But ordinary Koreans seem to have recovered from mad cow disease. Housewives who took part in the candlelight vigils wheeling their baby carriages now keep the TV unplugged. They have no great hopes for the incompetent administration that sowed the seeds of the farce in May, June and July the previous year. What remains is pity, for the government and for the KCTU, and the looming question how we can keep importing expensive oil if we squander the US$10 billion in our trade surplus with the U.S.
Booming back-alley sales for U.S. beef in S.Korea
Booming back-alley sales for U.S. beef in S.Korea
Reuters, Kuly 2, 2008
By Kim Junghyun
SEOUL, July 2 (Reuters) - U.S. beef returned this week to South Korea for the first time in nine months, but consumers may be hard-pressed finding the one store that is happy to let the public know that it is selling it.
No major retailer has put U.S. beef on its shelves due to street protests sparked by fears of mad cow disease and surveys showing that most South Koreans do not feel the product is safe.
But down an alley in a working class Seoul neighbourhood, a butcher shop about the size of two compact cars proudly displays U.S. beef in its cramped showcase.
"If customers are looking for U.S. beef, isn't it the responsibility of importers to provide it," asked Park Chang-kyu, who heads A-Meat and a local meat importers' association.
No other store has announced to the media that it is selling U.S. beef and A-Meat has been doing a booming business with its regular customers who are attracted by prices that are less than half of Korean beef.
Customers have told local media they have relatives in the United States eating U.S. beef and they see the product as safe.
The store sold out its initial supply of about 400 kgs (900 lbs) of beef when it first went on sale on Tuesday, Park said.
Park said he has received some threats, lots of inquiries and can list South Korea's prime minister as one new customer.
South Korea has seen street protests on nearly every night since early May against a deal to import U.S. beef.
The protests were first among those concerned about mad cow infection but later turned into a lightning rod for criticism against the four-month-old government of President Lee Myung-bak.
About 5,300 tonnes of U.S. meat has been in frozen storage in South Korea since October 2007 when the country suspended imports due to prohibited material being found in a shipment.
More than 600 tonnes of that meat has cleared inspection under new rules that went into effect last week limiting imports to meat from younger cattle and restricting trade in parts thought to pose a higher risk for mad cow disease.
Analysts said it may take weeks before U.S. exporters start sending more beef to South Korea, once its third-largest market, due to safety concerns. And it could take years before U.S. beef catches Australia as the top foreign supplier.
But Park's son said local customers should give it a try.
"I've been eating U.S. beef my whole life and I'm okay.," said Brian Park, who goes to university in the United States. (Writing by Jon Herskovitz, editing by Miral Fahmy)
Buying frenzy greets US beef in Korea
Buying frenzy greets US beef in Korea
4/07/2008 10:38:00 AM
Meat and Livestock Australia
A buying frenzy has greeted the release of US beef in Korea, despite the mass protests from consumers concerned about potential health risks.
According to Korea's JoongAng Daily, the office at A-Meat in western Seoul has been a frenzy of activity with employees taking an average of 100 calls an hour with orders for US beef.
A-Meat is the first company to sell newly inspected US beef, which has been readmitted to the Korean market.
"We've been getting orders from all parts of the country, even from Jeju Island," said Park Jong-min, a manager at the company.
According to Money Today, an A-Meat employee said the company sold 300-400 kilograms on its second day of trading US beef, twice as much as the first day's sales.
Most customers were general consumers, making orders from their homes.
However, according to SBS, protests from angry citizens persist, with consumer groups visiting the A-Meat beef shop in Shiheung to protest their role in selling US beef.
The protesters strongly complained that there should be reliable safety measures provided before selling US beef.
The beef shop had to stop sales for about an hour while the protests went on.
But once the consumer groups started to leave, sales started again and customers constantly came in to buy US beef.
Thursday, July 03, 2008
'Failure to innovate' sinking economy: report
'Failure to innovate' sinking economy: report
CBC June 13, 2008
Despite the ever-strengthening loonie and the lowest unemployment rate in a generation, Canada is mired in a "mediocrity" that leaves it lagging behind its international competitors, the Conference Board of Canada says in a harsh new report.
The Conference Board report, which graded Canada on six components (economy, innovation, environment, education, health and society) compared to 16 other major industrialized countries, was released Wednesday.
The research body ranked Canada fourth from the bottom in terms of innovation, saying Canada's "failure to innovate" largely explains "a mediocrity that is hampering what we can do and what we can be."
Fewer scientific articles are published in Canada, fewer patents are granted and even though the government provides subsidies for research and development, the take-up by companies is low, the authors of the report said, calling it a "stunningly poor" showing.
It all falls in line with what Conference Board CEO Anne Golden called Canada's "culture of complacency."
"We're not a risk-taking country because of our history, because of our nature, whatever," Golden said. "We just don't have the same drive."
Canada placed 11th out of the 17 countries on the economy, but that also falls short of the country's potential, given its educated workforce and the richness of its natural resources, the blunt assessment said.
"We're not a low-wage economy, we're a high-wage economy. We're never going to be able to compete just on price," Golden said. "We have to compete on innovation, on new technology, on new products, high-level services in unique niches. And we're not doing that."
The Conference Board also gave poor marks to Canada for its record on the environment, noting the country has not yet enforced curbs on greenhouse gases and also generates more waste than comparable countries. And when it comes to health care, the report says we're not prepared for the strain that aging baby boomers will place on the system.
Although Canada performed well in education, scoring an "A," the report card said our universities were not turning out enough post-graduate students in the fields of science and technology — fields that boost innovation.
Canada losing ground, Conference Board says
Canada losing ground, Conference Board says
June 30, 2008
Canada is in the middle of the pack of the 17 wealthiest countries in terms of social and economic rankings, the Conference Board of Canada reported Monday.
It gave Canada four Bs — for economy, education, health and the social environment — but only a C on environment and a D on innovation. The board gives a B to countries in the second quartile, a C in the third and a D in the bottom.
Its 12th benchmarking report card was "disappointing," the board said.
"While Canada is still in the gifted class among nations, its report card tells the story of a country moving to the back of the class because of its underperformance in almost all subjects."
Canada's standard of living has slipped to ninth this year from fourth in the 1970s, the report said.
Canada's ranking out of 17 countries
Education 2
Health* 9
Social 10
Economy 11
Innovation 13
Environment 15
*Out of 16 countries; no data for Belgium
Source: Conference Board of Canada
The report links Canada's lack of innovation to flagging economic performance, which means there is less money to spend on services such as health and education.
"Canada's deteriorating transportation infrastructure, its longer hospital wait times, and the collective sense of urgency about the affordability of social programs are all directly linked to Canada's lagging productivity, which in turn is linked to its innovation problem," the report said.
Canada does not have an innovation policy, which would help commercialize discoveries and allow new world-beating industries to develop. Instead, resources are used to shore up fading industries, the board said.
The lack of innovation has hurt economic performance, where slower productivity and other factors have opened the gap between U.S. and Canadian individual purchasing power to $6,400 US now from $3,200 in 1985.
Canada came third last in the environment ranking, ahead of only Australia and the United States. Like them, Canada has a resource-based economy and long distances to travel, but the board said the record is poor in areas such as climate change, smog, and cutting waste.
"Canada now generates more waste per person than any of its peers," the board said, and is producing more greenhouse gases as petroleum and forest products exports rise.
On the B team
Canada's No. 2 ranking in education is a bright spot, because high school and college graduation rates are very high. But there are problems, including the 40 per cent of adults who have trouble coping with the literacy and numeracy demands of life and work.
Moreover, "Canada also trails its competitors in fostering PhD graduates and in producing graduates in the fields that underpin innovation — mathematics, science, computer science and engineering," the report says.
In terms of health, Canadians have fewer problems today than several decades ago, but higher rates of diabetes and obesity suggest that young Canadians "may be the first generation of children in over a century who can expect to be less healthy than their parents."
Canada does pretty well as a place to live, as our "social safety net" helps many people. But "many Canadians would be surprised to find out that the U.S. has a lower burglary rate, a lower suicide rate, and greater gender equity than Canada," the report said.
The reduction in senior poverty is a major success story, but the low ranking on child poverty is troubling.
"Much evidence suggests that children who grow up in poverty have lower educational attainment and poorer health, and that they are less able to contribute to their communities," the report said.
Canada was ranked against Australia, Austria, Belgium, Britain, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Sweden, Switzerland and the U.S.
Smaller European countries, particularly Switzerland, did very well. It was ranked second in three categories, fourth in two and fifth in one.
The U.S. led in innovation, but was last in environment and society, and second-last in health and education. It ranked seventh in economy.
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