Ged Carroll

Category: business | 商業 | 상업 | ビジネス

My interest in business or commercial activity first started when a work friend of my Mum visited our family. She brought a book on commerce which is what business studies would have been called decades earlier. I read the book and that piqued my interest.

At the end of your third year in secondary school you are allowed to pick optional classes that you will take exams in. this is supposed to be something that you’re free to chose.

I was interested in business studies (partly because my friend Joe was doing it). But the school decided that they wanted me to do physics and chemistry instead and they did the same for my advanced level exams because I had done well in the normal level ones. School had a lot to answer for, but fortunately I managed to get back on track with college.

Eventually I finally managed to do pass a foundational course at night school whilst working in industry. I used that to then help me go and study for a degree in marketing.

I work in advertising now. And had previously worked in petrochemicals, plastics and optical fibre manfacture. All of which revolve around business. That’s why you find a business section here on my blog.

Business tends to cover a wide range of sectors that catch my eye over time. Business usually covers sectors that I don’t write about that much, but that have an outside impact on wider economics. So real estate would have been on my radar during the 2008 recession.

  • Good To Great by Jim Collins

    Jim Collins

    Jim Collins, the author of Good To Great has been researching and writing about what makes companies successful since 1988, though there are points made about this and the similarity of the work done by Tom Peters at McKinsey. Peters eventually turned the outputs of that research into the book In Search of Excellence.

    From this research Collins has written a series of books:

    Good to Great was Collins’ sophomore book published in 2001. I was curious to see how it stands up in the 20 years since publication.

    What’s the book like?

    Amsterdam

    Collins has written a surprisingly accessible book that at the same time demonstrates an academic rigour to the underlying research. A good chunk of the book is an epilogue, frequently asked questions and referenceable materials at the back.

    Each chapter is comes with a summary page and Collins makes good use of visuals to convey his ideas.

    Synopsis

    Collins bases Good to Great around seven ideas.

    • ‘Level 5’ leadership. Collins had a management maturity capability model, the top level on ‘level 5’ was a leader who left their ego at the door with personal humility but professional will. They tend to be work horse rather than race horses. I found this particularly interesting as research that my first agency used to tout showed how a CEO’s visibility or fame had a positive correlation with rising share price, indicating that investors are probably buying on the wrong signals
    • Getting the right people on the bus. The right people comes before vision, strategy, tactics, structure. ‘Who’ before ‘what’. Rigor but not ruthlessness drives people decisions. All of this was based around three principles: 1/ If in doubt, don’t hire. Instead keep searching. 2/ Act when a people change is needed. 3/ Put the best people on the best opportunities. The right people thrive in a culture of vigorous debate in search of the best answers and then stand united behind the collective decisions, regardless of political or personal interests. The right people are your most important asset. You need self motivating people rather than having to work to motivate them
    • The Stockdale Paradox. Retain faith that you will succeed in the end. Regardless of the difficulties. And at the same time confront the most brutal facts of your current reality. Whatever they might be. An honest determined effort is required to find the truth of a situation. 1/ Leading with questions, not answers. 2/ Engage in a dialogue and debate, not coercion. 3/ Conduct autopsies, not blame. 4/ Build ‘red flag’ mechanisms that turn information into something that cannot be ignored. Dealing with problems head on. Leadership doesn’t begin with vision, it starts with confronting facts head on and dealing with their implications
    • The ‘hedgehog concept’. Focus at the interception point between: 1/ What you are deeply passionate about. 2/ What you can be the best in the world at. 3/ What drives your economic engine. It is an iterative process. This becomes the one big thing that you focus on.
    • A culture of self-discipline. Great results over the long term depends on a disciplined culture. It requires people who adhere to a consistent system, but also gives freedom and responsibility within the framework of the system. Discipline means focus, ignoring once in a lifetime opportunities that dont fit within the business focus. Stop doing lists are as important than to do lists. This reminds me of why Apple never put an FM radio in an iPod or iPhone.
    • Technology as accelerator. Technology isn’t a fad that they follow, but apply carefully selected technologies that meat their focus. A classic example of getting this wrong is the way Micro Focus pivoted to cryptocurrency and ended up being bought by rival Open Text. Instead the attitude to technology is down to thoughtfulness and creativity. Contrary to every marketing campaign I did during my first decade in agency life, technology by itself is never a primary cause of greatness (or decline).
    • Good practices are cumulative and compounded in nature. Collins talks about the flywheel effect, the momentum energy required to get it moving requires consistent pressure, but once it gets moving subsequent pressure means that it moves the flywheel at a much faster rate

    Where Good To Great didn’t age well

    The example of Wells Fargo standing out as an exemplar jarred with me. Wells Fargo is cited as a prime example of a great company, but there are examples of a number of cracks in its culture over years

    • Allegations of higher costs charged to African-American and Hispanic borrowers on sub-prime loans which resulted in fines and damages paid totalling 175 million dollars
    • Failure to monitor money laundering
    • Price gouging on overdraft fees
    • National mortgage settlement, the second largest civil settlement in U.S. history
    • Race discrimination in hiring practices

    Good to Great limitations

    Good to Great focuses on American companies, there doesn’t seem to be a consideration of how national culture may have an impact on the firm. Where does China’s wolf culture or Samsung’s punishing culture fit in the kind of model that Collin’s proposes in his book? I don’t know the answer but its a topic worth exploring in a more global business environment. I think that its particularly interesting because Collins’ work has been widely read by Chinese business people, yet their ‘great companies’ look very different to the corporates that Collins cites as good to great in nature.

    In conclusion

    Collins has created useful management book for departments as well as large corporates, which explains why it has been published in so many languages including Spanish and Chinese. What is less apparent in Chinese corporate culture is how influential the book has really been.

    You can find my updated list of professional reading materials here and further book reviews here. Lastly, more on Good to Great here.

  • Korean Drama Trade + Zurich

    I have had my head in PowerPoint presentations and market research reports so haven’t paid much attention this week until I read in this weekend’s FT about the Korean drama trade.

    Extraordinary Attorney Woo

    The premise of the Korean drama trade is a paradox, that while Netflix as a business isn’t doing well with investors and has experienced a lot of short selling, that isn’t necessarily a bad thing for the companies who produce content for the platform.

    In many western and developing world media markets, consumers have been used to international content. Media industries that more closely match their own values tend to do better. For instance, there has been a brisk Korean drama trade in Middle Eastern countries because there was less sex and violence on display than American media.

    Cracking foreign language markets

    In the English speaking western world, foreign language media has had a tougher time to gain mass market acceptance. Things opened up a bit with the popularity of Scandinavian media, in particular ‘Scandi-noir’ dramas. The ironic thing is that prior to 1964 the films available to broadcast in the UK were either old b-movies, pre-war pictures from smaller studios or foreign-language films. Hollywood saw television as competition, so there was an informal blockade. This ended in the UK when Samuel Goldwyn and MCA began selling films as packages to the BBC and ITV. This wasn’t necessarily a good thing however.

    Netflix then became the world’s entertainment broadcaster*. This meant that over time Netflix had to build up a body of content for lots of different markets. And if you want to be successful in Korea, you need Korean dramas and movies.

    Freedom through the Korean drama trade

    One of the standout aspects of the Korean dram trade has been that it has allowed Korean writers and directors to push the limits of the genre. A classic example of this is Hellhound. Hellhound gets to explore interesting questions around religion, morality, hysteria and power.

    Or you have the nihilism of Squid Game.

    This meant that Korean dramas have got a bigger creative palate and become exposed to a far larger potential audience than previously possible on niche streaming platforms like Rakuten’s Viki or Kocowa. Warners must be kicking themselves, having bought and then shut down early K drama streaming service DramaFever in 2018. Bob Cringely talked about innovation in terms of surfing waves and the danger of wiping out by being too early was as big as missing the wave altogether.

    Back to the Korean production companies that have made these films. June Yoon over at the FT noticed what is now a well trod short term investment play

    • See what K-drama performs well when launched on Netflix
    • Buy shares in the production company if it is listed on the Korean stock market
    • Hold shares and then sell before the price starts to decline to a more reasonable level (after four weeks or so)

    According to Yoon, this is the Korean drama trade. You have seen a similar bounce in the entertainment agencies of K-pop bands with international success already. So this surfing of the wave in Korean stocks makes sense.

    Zurich

    The reason why I hadn’t been paying much attention is that I had a workshop in Zurich. The preparation was all-consuming. This all sounds very glamorous but it wasn’t. I flew in and went to the client office near the airport. Co-hosted a workshop and departed via Zurich airport after seeing next to nothing of the city. It was a long 19-hour day of work and travel. No Instagrammable moments or even shots grabbed by the departure gates. The few observations that I did have:

    • The pound now almost has parity with the Swiss Franc, which gives you an idea about how much Sterling’s depreciation since Brexit must be driving inflation
    • Mars had a really strong presence in the duty free shops. Which was really strange given the strong association of Switzerland with chocolate. It was a major win for the Mars brand that manages to associate its brands with the Swiss country brand in the minds of travellers
    • Switzerland still has a strong presence for tobacco advertising and promotion. The Marlboro chevron was on view in the duty-free store and there was a Winston smoking lounge for the nicotine addicted. I wouldn’t have batted an eyelid at this 20 years ago, or even 10 years ago. But it caused cognitive dissonance on this visit. (Disclaimer: I grew up around tobacco advertising, having had Uncles who ran cigarette machines in Ireland and were wholesalers to Irish bars, shops and petrol stations. I still have somewhere a few packs of Jordan B&H playing cards, a couple of Carroll’s Number 1 ash trays for keeping change in and a Reemtsma-branded Maglite torch.)
    *With the exception of China, given that the media industry is one of many sectors that China views as being central to its state interests. This has meant that Taiwanese dramas and documentaries on the Hong Kong democracy movement have been given a platform on Netflix.

  • Warriors of the Future + more things

    Warriors of the Future

    Warriors of the Future is a project of Hong Kong star Louis Koo. Koo has been almost single-handedly keeping the Hong Kong film industry in existence. A lot of Hong Kong‘s directors, cinematographers and stars go to work on ‘mainland co-productions’. Koo spent ten years getting Warriors of the Future off the ground. All the special effects that you see rendered in the film have been done by Hong Kong effects houses. The three years that the film spent in post-production seems to have been partly down to problems in accessing sufficiently large render farms for the CGI. The film cost just over 48 million pounds to make, but made only 39 million pounds in Chinese box office takings so far.

    About those box office takings, on the face of it Warriors of the Future looks like just the kind of film that would do really well with Chinese cinema goers. They love Marvel, Transformers and the film adaption of Liu Cixin’s Wandering Earth. There are rumours going around that the box office takings for Warriors of the Future were spiked.

    The usual scam goes something like this and has affected foreign films in the past. Cinema goer goes to the cinema. Wanders up to ticket office and asks for a ticket to Warriors of the Future, instead gets ‘Yet another remake of some made up chapter on the role that the Chinese communist party played during the great patriotic war against the Japanese’ – plot spoiler: the ‘heroes’ die. Cinema goer says ‘But I want to see Warriors of the Future‘. Ticket seller tells them to take that ticket to screen three where they can see Warriors of the Future.

    Cinema goer gets to see Warriors of the Future, propaganda film gets the box office gross and cinema makes the quote of tickets that they have to sell in order to not get a visit from the security services. Given the high degree of support that the film enjoyed from stars like Daniel Wu who rented out screenings so that their fans could go and see the film for free; it seems like the Chinese government wants to stamp on the wind pipe of the barely alive Hong Kong film industry.

    The film opens in Hong Kong cinemas on August 25th, and will hopefully make up for some of the lost revenue in the mainland alongside a sale of film related NFTs.

    One Way

    One Way is a documentary film that captures the ups and downs of Ah Man and Fiona who move with their two children to the UK from Hong Kong. Fiona is a teacher and Ah Man earns half of what she does. There is already a lot of stress in their marriage before they even plan to emigrate. There is naivety to them, which I also see mirrored in many of the other Hong Kongers I know who have been making the move recently. I am genuinely worried for how many of them will cope with the harshness of UK life.

    In my experience, the British could learn a lot about civility and community from these new Hong Kong arrivals.

    The bonesetter

    Growing up in rural Ireland and an Irish household in England as a child I occasionally heard of a ‘bonesetter’. A bonesetter is part way between a chiropractor and a mystic. It was passed down through families and was considered to be a miraculous power. Doctors and medicines were expensive, so someone who could solve a slipped disc, trapped or a dislocated shoulder was highly valued.

    You would hear around the dinner table tales of neighbours who were ‘crippled’ with pain, they were driven by a relative to a bone setter and were cured by the bonesetter. The bonesetter was said to have a ‘gift’ rather than medical training. It is generally thought of as a relic of Ireland past, like cocks of hay, cutting turf down the bog with sleán, tea made up in a recycled mineral bottle like a large Lucozade bottle, reading the Blondie comic strip the Sunday Press and getting covered with newsprint, The Old Moore’s Almanac and Ireland’s Own.

    Jimmy Heffernan featured in the film, was a name I heard as a child. He was a farmer who gradually built up a reputation via word-of-mouth across the country and amongst the Irish diaspora in the UK, US and Australia. Heffernan is no longer with us, he died in 2003. Another member of the Heffernan family continues on the tradition to this day.

  • The Visual MBA

    Jason Barron’s book The Visual MBA looks to distill down business principles into more easily understandable formats. The Visual MBA has been translated into a number of European languages since it was published in 2019, which is a good indicator of the book’s utility. So I thought I would take the time to review The Visual MBA and see how I got on with it and whether it lives up to its premise.

    The Visual MBA

    Areas covered in The Visual MBA

    The content of The Visual MBA is broken down into a number of areas including:

    • Leadership
    • Corporate financial reporting
    • Entrepreneurship (management and financial focus)
    • Management accounting
    • Business finance
    • Marketing
    • Operations management
    • HR
    • Strategy
    • Ethics
    • Decision making
    • Startups

    The book itself is a robust hardback book that would be fine in a daypack lugged around campus. As with any book there are things that could be put in and taken away. My impression of the content is that would be useful to someone studying business at A’level or in the first year of an undergraduate degree. I personally found the marketing section frustrating. Part of the reason for this is that the depth of the subject was barely scratched. Readers were not prompted to even ask the right kind of questions.

    There was nothing that would spur you to read more and read widely. I suspect that this would be the case with the other areas covered by the book as well. It creates the false confidence that would appeal to a surface player. I think that is dangerous for readers and the businesses that they work for.

    Do I think the premise of the book works?

    The book neatly summarises many of the key concepts that would be taught in a general business course and it explains the points in a simple manner. For instance the idea of balance sheets reminded me of the first semester in the first year of my marketing degree in terms of its explanations.

    Where I am less sure of the book’s benefits was whether the illustrations would make me retain any better the content of the book? I will ignore the fact that for some pages the drawings weren’t illustrated but instead representations of the headlines in a hand drawn typography. I might the book beneficial if they were my diagrams that I was sketching in my notes. But I don’t think they have the same effect on a reader of the book.

    In summary I would recommend that one buys the book as a simple guide to business studies or commerce rather than the visual aide memoire that the book seems to promise. If this sounds of interest to you you can get more information here.

  • Gentler place to work + more stuff

    Gentler place to work

    Saying out loud the quiet bit about work-life balance; tectonic plates of streaming move again – I’ve found myself thinking about one panel in particular – the participants in the session on advice for aspiring leaders went beyond the usual platitudes, and shared a couple of uncomfortable truths about an industry which is trying to rebrand itself as a gentler place to work. – I think that we’ll see more of this move away from a gentler place to work as companies look to cut staff. I entered the workforce in the middle of recession before I went to college, this was the time of micro serfs and mcjobs. The idea of a gentler place to work seemed to be a transient one to me – one that would come and go with economic growth. Zero hour contracts really grew during and after the 2008 financial crisis, which is as far away from a gentler place to work as you can get.

    China

    Take down Pelosi’s plane’: Chinese react online to Taiwan visit | Financial Times 

    Displaced Syrians voice anger as bombed-out town doubles as film set | Financial Times – film being produced by Jackie Chan as demand in China for conflict porn grows alongside nationalistic fervour

    Consumer behaviour

    Children between the ages of 10-12 are spending the most on video games, survey reveals / Digital Information World 

    ‘I am borrowing to live’: pawnbrokers enjoy golden era as UK hits hard times | UK cost of living crisis | The Guardian 

    Economics

    How rising tensions across the Taiwan Strait could threaten global trade | Financial Times 

    Ideas

    Primary care physicians need 26.7 hours in the day – Futurity 

    Why Is the Web So Monotonous? Google. :: Reasonably Polymorphic – The primary purpose of the web today is “engagement,” which is Silicon Valley jargon for “how many ads can we push through someone’s optical nerve?” Under the purview of engagement, it makes sense to publish webpages on every topic imaginable, regardless of whether or not you know what you’re talking about. In fact, engagement goes up if you don’t know what you’re talking about; your poor reader might mistakenly believe that they’ll find the answer they’re looking for elsewhere on your site. That’s twice the advertising revenue, baby! But the spirit of the early web isn’t gone: the bookmarks I’ve kept these long decades mostly still work, and many of them still receive new content. There’s still weird, amateur, passion-project stuff out there. It’s just hard to find. Which brings us to our main topic: search. – It is more than search, there is also motivation and consumer behaviour change in the old web versus the new one – The Founder of GeoCities on What Killed the ‘Old’ Internet | Gizmodo 

    Innovation

    How the American semiconductor industry claimed back technological and market leadership from the Japanese

    Microrobots in swarms for medical embolization — Nano Magazine

    Turning fish waste into quality carbon-based nanomaterial — Nano Magazine

    Ireland

    Lidl Ireland removes mandatory retirement age of 65 | RTE 

    Legal

    EU starts competition investigation into Google Play store terms – report – Telecompaper 

    Luxury

    Telfar gets Beyoncé boost, but so does Hermès despite Birkin snub | Vogue Business – rappers don’t drive luxury sales, middle class Asians do

    Media

    Visa and Mastercard cut ties with ad arm of Pornhub owner MindGeek | Financial Times 

    Retailing

    Ocado, the online supermarket – is this a legitimate content partnership with Disney? Something feels a bit off about the Ocado | Disney inspired meals. The ‘inspired by Disney’ tagline and the Lion King themed ‘green grub pasta’ feels weird.

    Ocado, the online supermarket

    Security

    Missfresh hit by lawsuits from investors and employees | Financial Times 

    Starlink’s Space Speed-Up: A Battle for Internet Leadership – EETimes 

    Government concerns over China-owned CCTV company embedded in UK – Channel 4 News – There are more than a million of Hikvision’s cameras installed across the UK – monitoring every aspect of our lives. But Channel 4 News has learned that there are growing concerns within the government about the Chinese state-owned tech company.

    Next Generation Post-Quantum Encryption May Not Be As Secure As Many Tech Experts Had Hoped / Digital Information World 

    China’s war games spur Taiwanese business to rally to island’s defence | Financial Times 

    Web of no web

    Air Force Pilots to Fight AI-Based Enemies Using AR Helmets 

    Apple’s Next-Gen CarPlay Is Scaring the Car Industry. Here’s Why. – Robb Report UK 

    Some interesting business takes on the commercial decline of ‘metaverse‘ platforms: