Another excerpt from John Wiley Spiers' "How Small Business Trades Worldwide" (2001)
Another way suppliers can cut corners to make up the loss of revenue is to ship you defective goods. Normally, if your order is for, say, 2,000 pieces, they would make 2,200 pieces, sort out the defectives, and ship you 2,000 excellent items. (The other 200 pieces they can sell to some poor fool who comes from the United States and says, "do you have something cool I can sell and make a killing?") But if you squeeze the supplier on price, they might make you 2,000 pieces, ship you 2,000 pieces, and you can pay the freight, taxes (duty) on the defectives and have to sort them out yourself.
The bottom line is that you must never deny the supplier just compensation for his efforts.
Wednesday, December 30, 2009
Business meeting at Dinner
More stuff from John Wiley Spiers' "How Small Business Trades Worldwide" (2001).
Quick Lesson: Organize around the opportunity, not a resource.
So say you find an overseas supplier and they wish to meet with you in your homeland.
If "the feel" is right, move into the bar after dinner to discuss the business, and if appropriate, hammer out agreements on the ten points mentioned next.
As the waitroid is seating you and your guest(s) at a table in the bar excuse yourself and say you will join them in a minute. When your guests are out of earshot, instruct the bartender that whenever you order a gin and tonic, the bartender is to pour you only the tonic. And whatever your guests order, the bartender is to make them doubles. Then return to your guests, order drinks, and get down to the serious business of hammering out some solid business agreements. (This is precisely what they will do to you overseas).
Quick Lesson: Organize around the opportunity, not a resource.
So say you find an overseas supplier and they wish to meet with you in your homeland.
If "the feel" is right, move into the bar after dinner to discuss the business, and if appropriate, hammer out agreements on the ten points mentioned next.
As the waitroid is seating you and your guest(s) at a table in the bar excuse yourself and say you will join them in a minute. When your guests are out of earshot, instruct the bartender that whenever you order a gin and tonic, the bartender is to pour you only the tonic. And whatever your guests order, the bartender is to make them doubles. Then return to your guests, order drinks, and get down to the serious business of hammering out some solid business agreements. (This is precisely what they will do to you overseas).
The Innovator/conservator paradigm.
Here are some interesting excerpts from John Wiley Spiers' "How Small Business Trades Worldwide" (2001).
The Innovator/conservator paradigm.
In 1976, Apple introduced the personal computer to the marketplace. Jobs and Wozniak, Apple's founders, have a letter from executives turning their idea down when they offered it to Hewlett Packard. IBM certainly had the capital and technological resources to introduce a personal computer that year if they had wanted to do so. But in 1976 there was no interest, and [Peter F.] Drucker explains why: no mainstream conservator company is going to risk his 9-5, weekends free, country club membership, good salary, health insurance and pension plan on a risky venture.
After innovation such as a personal computer does gain popularity, the the conservators step in, as IBM did, with their version of the PC [1981]. And when they moved in, they took the lion's share of the PC market. But this is a very important point to remember: IBM did not introduce the PC until 1981. As fiercely competitive as the computer business is, Apple was virtually alone in the market for five years!
After IBM stole the lion's share of the PC market, the then-new Macintosh line assured the survival of Apple Computer.
Never bother "protecting" your ideas as an innovator. Worry about the customer's needs.
The Innovator/conservator paradigm.
In 1976, Apple introduced the personal computer to the marketplace. Jobs and Wozniak, Apple's founders, have a letter from executives turning their idea down when they offered it to Hewlett Packard. IBM certainly had the capital and technological resources to introduce a personal computer that year if they had wanted to do so. But in 1976 there was no interest, and [Peter F.] Drucker explains why: no mainstream conservator company is going to risk his 9-5, weekends free, country club membership, good salary, health insurance and pension plan on a risky venture.
After innovation such as a personal computer does gain popularity, the the conservators step in, as IBM did, with their version of the PC [1981]. And when they moved in, they took the lion's share of the PC market. But this is a very important point to remember: IBM did not introduce the PC until 1981. As fiercely competitive as the computer business is, Apple was virtually alone in the market for five years!
After IBM stole the lion's share of the PC market, the then-new Macintosh line assured the survival of Apple Computer.
Never bother "protecting" your ideas as an innovator. Worry about the customer's needs.
Monday, December 21, 2009
Healthcare Bill
From Reuters.
"The impact of this vote will long outlive this one frantic, snowy weekend in Washington," Republican Senate leader Mitch McConnell said. "This legislation will reshape our nation, and Americans have already issued their verdict -- they don't want it."
"What the American people ought to pray is that someone can't make the vote tonight," Republican Senator Tom Coburn said beforehand. Democrats control 60 votes, the exact number needed to overcome united Republican opposition.
The Senate bill would require most Americans to have insurance, extend coverage to 30 million uninsured Americans and provide subsidies to help some pay for it.
Also included is an increase in the bill's Medicare payroll tax from 0.5 percent to 0.9 percent on income over $200,000 for individuals and $250,000 for couples.
"The impact of this vote will long outlive this one frantic, snowy weekend in Washington," Republican Senate leader Mitch McConnell said. "This legislation will reshape our nation, and Americans have already issued their verdict -- they don't want it."
"What the American people ought to pray is that someone can't make the vote tonight," Republican Senator Tom Coburn said beforehand. Democrats control 60 votes, the exact number needed to overcome united Republican opposition.
The Senate bill would require most Americans to have insurance, extend coverage to 30 million uninsured Americans and provide subsidies to help some pay for it.
Also included is an increase in the bill's Medicare payroll tax from 0.5 percent to 0.9 percent on income over $200,000 for individuals and $250,000 for couples.
Saturday, September 19, 2009
Obama and Latin America
He shook Hugo Chavez's hand with a smile...http://www.youtube.com/watch?v=HYVYNWEoCUs
He called Ecuador's Rafael Correa, a supporter of the FARC, to "congratulate" him on his recent re-election...
He wanted Manuel Zelaya to return to Honduras after the Central-American president was deposed...kicked out of his own country!... for violating the Honduran Constitution. Zelaya has been following Hugo Chavez's footsteps.
White House Council member Gregory Craig is advising Barrack Obama on Latin-American relations. Mr. Craig was the lawyer for Fidel Castro in 2000's U.S. vs Cuba Elian Gonzalez case.
Wall Street Journal. (Eastern edition). New York, N.Y.: Jul 27, 2009. pg. A.13
He called Ecuador's Rafael Correa, a supporter of the FARC, to "congratulate" him on his recent re-election...
He wanted Manuel Zelaya to return to Honduras after the Central-American president was deposed...kicked out of his own country!... for violating the Honduran Constitution. Zelaya has been following Hugo Chavez's footsteps.
White House Council member Gregory Craig is advising Barrack Obama on Latin-American relations. Mr. Craig was the lawyer for Fidel Castro in 2000's U.S. vs Cuba Elian Gonzalez case.
Wall Street Journal. (Eastern edition). New York, N.Y.: Jul 27, 2009. pg. A.13
Friday, September 4, 2009
Money from trees
Goldman Sachs: $40 billion in securities sold tied to risky mortgages between 2006 and 2007 even while secretly short selling on those securities sold. -McClatchy
CEO of Goldman Sach's - Lloyd Blankfein
Kevin G Hall
Moody's Investor's Service
Key player in the financial crisis
Underwriters, mostly Newscentury, Ameriquest, Countrywide passed their mortgages to big investment banks such as Lehman Brothers, Bear Stearns, Goldman Sachs, and others. These investment banks worked with the ratings service agencies to package pools of mortgages into securities that would become collaterlized loan obligations or mortgage backed securities, essentially loans backed by mortgage payments. The buyers of these mortgage backed securities were usually pension funds, retirement funds, charitable endowments, and institutional investors. Many of these buyers were restricted to buy only top-rated securities. History shows that ratings were "made to order". Consequentially, Moody's revenue's grew to $2 billion in 2006. Moody's stock price from $13 in 2000 to above $72 in early 2007. The stock has since fallen by almost $50/share.
CEO of Goldman Sach's - Lloyd Blankfein
Kevin G Hall
Moody's Investor's Service
Key player in the financial crisis
Underwriters, mostly Newscentury, Ameriquest, Countrywide passed their mortgages to big investment banks such as Lehman Brothers, Bear Stearns, Goldman Sachs, and others. These investment banks worked with the ratings service agencies to package pools of mortgages into securities that would become collaterlized loan obligations or mortgage backed securities, essentially loans backed by mortgage payments. The buyers of these mortgage backed securities were usually pension funds, retirement funds, charitable endowments, and institutional investors. Many of these buyers were restricted to buy only top-rated securities. History shows that ratings were "made to order". Consequentially, Moody's revenue's grew to $2 billion in 2006. Moody's stock price from $13 in 2000 to above $72 in early 2007. The stock has since fallen by almost $50/share.
Thursday, July 30, 2009
Che overview
*Kleptocracy - applies to a government "that extends the personal wealth and political power of government officials and the ruling class (collectively, kleptocrats) at the expense of the population, sometimes without even the pretense of honest service." - wiki
*coup d'état - a sudden decisive exercise of force in politics
*Jacobo Arbenz Guzmán - Guatemalan military officer and politician, president from 1951 - 1954 until he was ousted by a coup d'état in which the US replaced him with a military junta, headed by Colonel Carlos Castillo. Arbenz had attempted to end the Latifundia system.
*Latifundia system - pieces of property covering tremendous areas. Often called haciendas in Latin America. Similarities with the Roman latifundia. Blamed for economic inequality and strife.
*26th of July Movement - In 1959, Fidel Castro led a revolution to overthrow the Fulgencio Batista government in Cuba. The name originates from the failed attack on the Moncada Barracks in 1953, an army facility in the city of Santiago de Cuba. The movement was reorganized in Mexico in 1955 by a group of 82 exiled revolutionaries (Fidel Castro, Raul Castro, and Che among others). Batista eventually fled Cuba in 1959.
*AWOL - absent without leave, abandonment of duty without permission from one's government
*coup d'état - a sudden decisive exercise of force in politics
*Jacobo Arbenz Guzmán - Guatemalan military officer and politician, president from 1951 - 1954 until he was ousted by a coup d'état in which the US replaced him with a military junta, headed by Colonel Carlos Castillo. Arbenz had attempted to end the Latifundia system.
*Latifundia system - pieces of property covering tremendous areas. Often called haciendas in Latin America. Similarities with the Roman latifundia. Blamed for economic inequality and strife.
*26th of July Movement - In 1959, Fidel Castro led a revolution to overthrow the Fulgencio Batista government in Cuba. The name originates from the failed attack on the Moncada Barracks in 1953, an army facility in the city of Santiago de Cuba. The movement was reorganized in Mexico in 1955 by a group of 82 exiled revolutionaries (Fidel Castro, Raul Castro, and Che among others). Batista eventually fled Cuba in 1959.
*AWOL - absent without leave, abandonment of duty without permission from one's government
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