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.
I miss Tomorrows World as a show. It came from a few points that seem to have changed in UK society
Lord Reith’s original agenda for the BBC to entertain and educate. It made cutting edge research simple and highlighted its potential benefits
A futurism vision in the great and good of society at least, rather than the current viewpoint that we’re all doomed
Now as a society, we no longer know what innovation is. There is no ‘true north’.
Predicting the smart home of 2020
This Tomorrows World programme from 1989 predicts smart home type controls such as Philips Hue bulbs, wireless charging with ‘plug-in pads’, reducing energy consumption and big screen TVs. But there is as much as it gets wrong as well, LCD windows tend to be only use in the swankest offices or high security areas. Our home windows aren’t display screens. Unfortunately we don’t have aerogel as loft insulation due to the inability to make it cheaply via mass production.
One final point that was important was how they talked about consumers having a choice of how smart their home could be. Which showed a real consideration about technological impact that is at odds with smartphones vs. feature phones; or smart TVs vs. ‘dumb’ TVs.
Business
Why Facebook’s Metaverse Is Dead on Arrival | New York magazine – In actuality, Facebook is basically spending $10 billion on a prayer that, in the short run, it might change the conversation. It gives them an opportunity to talk about the meta verse instead of insurrection and teen depression – or that Meta has moved from being a growth company to a value company…
Hallyu The Korean Wave is exhibition at the Victoria and Albert Museum. Hallyu is actually a contraction of Han ryu which literally means The Korean Wave. Han meaning Korean (so the Korean written language is called Hangul) and ryu meaning wave.
Forgotten War
The exhibition was interesting from a London audience perspective. You have to be a real history buff to know that the Korean war even happened. The olympics put Korea temporarily in western consciousness and then it submerged again. It was only since I started writing this blog that The Korean Wave started to become part of the London zeitgeist, let alone the rest of the country.
Hallyu now
K-pop group Black Pink is now number one in the UK album charts with their sophomore release and there will be at least one Korean option when you open Uber Eats. Korean films and series (usually the most transgressive ones) are popular on Netflix and in arthouse cinemas.
Korean reality
The reality of The Korean Wave is more complex. It was something that was over 50 years in the making, going back at least to the compact that Park Chung-hee made with Korean business leaders at the expense of economic inequality, human rights and labour rights. The Korean Wave was birthed by a traumatic history of authoritarian rule. The Korean Wave wouldn’t have been possible without the economic growth driven by rapid economic growth and industrialisation. This in turn created the flywheel effect as Jim Collins would put it, that helped Korea become a cultural powerhouse as well as an economic one.
The exhibition skims the surface of this complexity, but is stylish and entertaining in nature.
The exhibition is running until February next year.
Expats Shun China Over Covid Policies, Forcing Foreign Firms to Scale Back – WSJ – “companies are even questioning whether it is responsible for them to deploy foreign staff to China when the numerous restrictions mean they are unable to guarantee a basic duty of care for them and their families,” the European business lobby in China said Wednesday in its annual report on the state of business in the country. Many of the chamber’s member companies, multinationals with a longstanding presence in the country, are downsizing, localizing and hiving off their operations in China as the number of Europeans and Britons living there roughly halved from prepandemic levels to around 60,000 in recent months, according to the chamber’s estimate. – the expat infrastructure of schools, services and food built up over decades is withering as foreigners leave. And that is probably seen as a good thing by Xi Jingping, who is looking to de-westernise China
Design
So much in this video about quality, design, sustainability, carbon footprint and the fallacies supporting electric vehicles.
Japan’s biggest K-pop fans might just be senior citizens, survey shows | SoraNews24 -Japan News – Online marketplace service Mercari studied the purchasing habits of its users between September 1 2021 and August 31 2022 to find out what products are most popular for each generation. They discovered that users who reported to be over 50 years old more frequently bought K-pop merchandise than even Gen Z.Despite competing with other popular products like character merchandise, domestic idol goods, and video games, K-pop items were a big seller among every age group. It was the third-most-purchased category for teens and the second for people in their 30s, but as it turns out, it was the most purchased category for people in their fifties and seventies! – this probably tells you a lot about how ageing is changing, not only in Japan, but elsewhere
Tinder just opened a convenience store in Japan, aimed at adults only | SoraNews24 -Japan News – Japanese convenience stores are a much-loved part of everyday life in Japan, where you can get pretty much everything your heart desires at any time of the day or night. Last weekend, however, a new convenience store popped up in Tokyo’s Shibuya district offering something that others don’t usually have in-store: love and romance. Called SwipeMart, the convenience store was run by dating app Tinder, and though it was only open from 16-19 September, it was such a resounding success there are hopes the pop-up will pop up at more locations in the future. Aimed at the over-18 crowd, the convenience store had some great freebies on offer for Tinder members, ranging from a choice of either jocks, socks, or a long-sleeve T-shirt
Sensitivities Rise As Geopolitics Takes Toll On Global Communicators – Richard Edelman penned a blogpost that questioned whether “truth will win out”, amid considerable state-sponsored disinformation activity. Edelman was referring specifically to the Russia/Ukraine conflict, but his column included reference to China’s efforts to influence public opinion. Edelman China blogpost 2022 By the end of the week, that paragraph — which was sourced directly from this WSJ article — had been excised from the post.
EU to consult on making Big Tech contribute to telco network costs | Euronews – The European Union’s executive body will launch a consultation early next year on whether tech giants should bear some of the costs of Europe’s telecoms network, EU industry chief Thierry Breton said on Friday. Europe’s telecoms operators have long lobbied for a financial contribution from U.S. tech firm’s such as Alphabet’s Google, Meta’s Facebook and Netflix, saying that they use a huge part of the internet traffic
Vetoing Victory – Israel Is Blocking (Military) Aid To Ukraine – Oryx – Israel’s refusal to provide military aid to Ukraine or even permission for other countries to do so sharply contradicts historical aid to Israel, when much of the Western world rallied behind the country when it faced invasions of its own, launching air bridges to keep it supplied, and engaging in blood donation campaigns for Israeli soldiers. Of course, the time that Israel could count on such strong support and sympathy from the Western public is long gone, and the world is unlikely to forget Israel’s inaction and deliberate obstruction of support to Ukraine
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?
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
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 Greathere.
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.
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 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.
