Johanna Hoopes's blogshttp://www.justmeans.com/editorials/sustainable-finance-and-responsible-investment/241.htmlFri, 25 May 2012 00:26:50 GMThttp://www.justmeans.com en hourly 1http://www.justmeans.com/Banking-Competition-in-China-Heats-Up/15027.htmlMon, 17 May 2010 07:03:08 GMTJohanna Hoopes As China's economy grows leaps and bounds by the minute, multinational banks in China are encountering new opportunities and obstacles. While foreign firms generally site the strict regulations and staffing issues as the most difficult part of doing business in China, they are now running up against growing domestic competitors.In its fifth annual survey of foreign banks in China, PricewaterhouseCoopers ranks the obstacles to doing business in China based on interviews with CEOs, senior executiv Read Full Article ]]> As China's economy grows leaps and bounds by the minute, multinational banks in China are encountering new opportunities and obstacles. While foreign firms generally site the strict regulations and staffing issues as the most difficult part of doing business in China, they are now running up against growing domestic competitors.In its fifth annual survey of foreign banks in China, PricewaterhouseCoopers ranks the obstacles to doing business in China based on interviews with CEOs, senior executives and branch managers of 42 foreign banks in China. This year's survey ranked "competition from domestic banks" as the primary concern for businesses in China, surpassing "regulatory environment" which had been #1 the past 2 years.There are several reasons for the shift of threats and opportunities that foreign banks face in China. Last year, the market share for foreign banks declined simply because foreign firms operating in China, a key customer, were borrowing less. Foreign banks were more reluctant regarding lending policies, taking a cue from their global headquarters who were acting more conservatively. Simultaneously, domestic banks in China were lending aggressively and lowering interest rates. By doing so, they attracted clients from foreign banks both at home and abroad.More so, Chinese banks are learning. They are gaining expertise in service operations and extensive branch networking so they are getting better at fending off foreign competition. The PWC report asserts that "the limited product range approved for deployment by the foreign banks means that it is increasingly difficult for them to differentiate their products from their domestic counterparts."Foreign banks must act strategically if they hope to have room for growth in target Chinese markets. According to the survey, more than 75% of respondents indicated that they would move toward making acquisitions in China over the next three years. Their target areas will focus on asset management, securities, leasing, rural banking, insurance, consumer finance, private equity, factoring and trust companies. Banks may also incorporate local units and branches as part of their long term strategy. Legally, this would allow them to offer a wider range of products and services and differentiate themselves from competitors.The survey pegs the foreign-bank market share at about 2%, so there is surely room for growth. But with domestic banks expanding their services and expertise, foreigners will need to innovate above the curve, developing faster, more efficient products and services rather than competing on the same playing ground as local competitors.Photo Credit: Creative Commons]]>http://www.justmeans.com/Taking-Market-Research-to-the-Source/13475.htmlSun, 25 Apr 2010 09:47:24 GMTJohanna Hoopes Hundreds of people visit Unilever's Concept Centre in Shanghai every day. Visitors can get their hair done at a salon. There is a living room and a bed called the "chatting room" where they can relax, as well as a shop where they can try the company's newest products. While they go about their business, these human guinea pigs are being discreetly observed from behind one way mirrors.Concept Centre is just part of Unilever's growing consumer research initiative in China, where it is trying to ca Read Full Article ]]> Hundreds of people visit Unilever's Concept Centre in Shanghai every day. Visitors can get their hair done at a salon. There is a living room and a bed called the "chatting room" where they can relax, as well as a shop where they can try the company's newest products. While they go about their business, these human guinea pigs are being discreetly observed from behind one way mirrors.Concept Centre is just part of Unilever's growing consumer research initiative in China, where it is trying to catch up to its nemesis, Proctor & Gamble. Just outside the city, in a huge office park, the company conducts all kinds of R&D, from market research to creating mock-ups and packaging prototypes.Consumer preferences are still very much a mystery to multinationals operating in emerging markets. Cultural complexities, especially latent Asian ones, can be hard to break down and trends are fluid. Consumers who are not used to commercialized brands lack brand loyalty and buy based on price over packaging. Due to less disposable income in these markets, there is less room for brand equity built on price premiums. Consequently, companies selling basic consumer products are moving in to get a closer look at consumer behaviors in their natural habitat.Because of the lack of brand loyalty, companies need to get even more creative with their marketing campaigns. Shanghai is literally covered in advertisements. Neon city lights shine larger than life corporate logos across the sides of skyscrapers. Taxis, buses and metros all have TVs so that you can keep up to date on the local news while being bombarded by ads. My mobile phone sends me several messages a day with the latest deals on massages and air flights. And Nike symbols are strategically placed throughout the city, like subliminal messages reminding us of the ever-present swoosh.Some companies proliferate through high tech mediums while others prefer the human touch, hiring sales associates to dole out samples galore. Catering to Asian consumers also means changing your secret recipe to suit their tastes. Unilever makes its soaps and shampoos foamier than its Western products. PepsiCo adds spice to its potato chips. P&G makes herbal and green tea flavored toothpaste. Juicy fruit adds different extracts to its gum (flavors that ruin the entire purpose of chewing gum for this author's taste). Companies need to keep up with local tastes and preferences, especially in a market that is growing and changing as quickly as China's.While the Chinese market remains a mystery to many international companies, those that are on the ground learning about consumer preferences are making headway and penetrating the market. With increased disposable income, the Chinese are looking to spend so it seems worth going the extra mile on consumer education and understanding to reach them.]]>http://www.justmeans.com/Tweet-tweet--Twitter-Ads-on-the-Loose-/12954.htmlSat, 17 Apr 2010 17:55:57 GMTJohanna Hoopes Twitter may have 106 million registered users. But can it make money? That question has plagued the microblogging service since its inception over three years ago.On April 13th the company revealed a much anticipated advertising campaign that aims to make big bucks for the blogging service. The company needs cash to take it to the next level. So far, the hugely successful service has focused on funding from venture capitalists, instead of pinching profits from its massive audience. The trick wil Read Full Article ]]> Twitter may have 106 million registered users. But can it make money? That question has plagued the microblogging service since its inception over three years ago.On April 13th the company revealed a much anticipated advertising campaign that aims to make big bucks for the blogging service. The company needs cash to take it to the next level. So far, the hugely successful service has focused on funding from venture capitalists, instead of pinching profits from its massive audience. The trick will be to show that its valuation is valid, while protecting its network of over 100,000 applications currently available. Its latest round was valued at $1 billion. CEO, Evan Williams claims that the initiative will boost Twitter's "entire ecosystem."Social marketing gurus say that by nature, Twitter's service is hard to monetize. The margins on increasing communication via 140-character "tweets" isn't quite as cut and dry as your corner lemonade stand. Twitter execs are treading carefully. Currently, advertisers like Starbucks and Virgin America are only allowed to place "promoted tweets" which show up at the top of results lists. This tactic is modeled after Google sale of sponsored ads to the right of searches, based on keywords. All the promotional tweets will be "resonance tested" that measure how often they get a reply or are forwarded to other users. Advertisements that are unpopular with users will be removed. Analytics that quantify the returns on those types of online marketing mechanisms is crucial for companies, and not easy to come by.The next phase of Twitter's commercialization will involve promoted tweets on third-party apps and posting them next to individual users' tweets. Twitter is wary of incorporating ads too quickly and has received criticism from users urging the company not to "pollute" their thoughts. While threats of leaving are not unfounded, unless there is a massive upheaval, the company will push onward.Skeptics of the campaign claim that Google's ads are successful because its users are often looking to make a purchase. They say Twitter's demographic does not target shoppers, but I have personally read reviews of a product on Twitter and gone straight to the company's website to purchase my new toy. Testimonials are the most effective form of advertising and tweets shoot them out at a mile a minute in short bursts. While Twitter is taking a risk, it's time to put the tweets to the test!Photo Credit: Creative Commons]]>http://www.justmeans.com/China-s-Car-Sales-Soar/12703.htmlTue, 13 Apr 2010 17:31:43 GMTJohanna Hoopes Sales of China's passenger cars have jumped 63 percent from the year before, as manufacturers scramble to keep up with high demand driven by tax cuts and and government subsidies. According to the China Association of Automobile Manufacturers, passenger car sales rose to 1.26 million automobiles in March. The projections show sustained growth for auto manufacturers in a market that is still rebounding from slowed sales in late 2008-2009 while the government pumped hundreds of billions of renminb Read Full Article ]]> Sales of China's passenger cars have jumped 63 percent from the year before, as manufacturers scramble to keep up with high demand driven by tax cuts and and government subsidies. According to the China Association of Automobile Manufacturers, passenger car sales rose to 1.26 million automobiles in March. The projections show sustained growth for auto manufacturers in a market that is still rebounding from slowed sales in late 2008-2009 while the government pumped hundreds of billions of renminbi into the economy.Many consumers in China are still buying their first cars, and demand for larger vehicles is growth as higher income families are trading up. Total sales climbed 1.7 million units over the past year, surpassing market estimates and bringing sales in the first quarter of 2010 to 4.6 million. Analysts are confident that total vehicle sales will surpass 17 million units this year, growing by at least 25%.Domestic producers are enjoying strong growth and running overtime to meet demand at home and abroad. China's growth has also given foreign automakers like General Motors and Toyota a boost while they weathered tough conditions in the saturated U.S. market. Ford's first quarter sales jumped 84% and Toyota's rose to 33% despite its massive recall problems. GM reported that its sales in China jumped 68% in March over a year ealier to a new monthly record of 230, 048 vehicles. First quarter sales totaled a whopping 623, 546 units, a 71% surge.General Motors expects to increase its annual sales in China to more than three million vehicles by 2015. GM China Group President Kevin Wale said that the country's automotive market will continue with more than enough strength to offset reduced government support for the industry. GM's business in China is done through a web of joint-ventures, most notably through sales credited to Wuling Automobile Co, a JV with SAIC Motor Corp., in which GM owns just over a third.While the U.S. market is slowly recovering, it has no chance of matching China's growth figures. China pushed past the U.S. as the world's largest auto market in 2009 as sales rose to nearly 13.6 million vehicles. While demand in China's enormous cities is growing, demand in more rural areas has also taken off. Vehicles in China can generally be purchased for a fraction of what U.S. vehicles cost, with demand growing fast among light commercial buyers and farmers. GM and other dealers will certainly continue to expand operations and introduce new models to meet climbing demand.Photo Credit: Creative Commons]]>http://www.justmeans.com/South-Africa-s-World-Cup-Woes/12558.htmlSun, 11 Apr 2010 04:34:01 GMTJohanna Hoopes South Africa projected that the world's most-watched sporting event would attract 450,000 international spectators from around the world. The World Cup was supposed to create jobs for one in four unemployed workers, and increase economic growth and development. The government has invested over 34 billion rand ($4.6 billion) to host the World Cup, constructing 10 world-class stadiums and other infrastructure. Now it just needs fans.Three months before the June 11th start date, only 100,000 intern Read Full Article ]]> South Africa projected that the world's most-watched sporting event would attract 450,000 international spectators from around the world. The World Cup was supposed to create jobs for one in four unemployed workers, and increase economic growth and development. The government has invested over 34 billion rand ($4.6 billion) to host the World Cup, constructing 10 world-class stadiums and other infrastructure. Now it just needs fans.Three months before the June 11th start date, only 100,000 international airline tickets have been sold. The visitor estimate has been cut to 350,000 and the expected contribution to economic growth has been halved. When the World Cup was awarded to South Africa in 2004, the global economy was in a much different place. Sales of corporate hospitality packages have fallen 50% short of the target, with tournament sponsors and partners returning thousands of tickets for premium-price seats in luxury boxes. Big banks that paid millions to attend the 2006 tournament in Germany are passing on the event.Where European World Cups have the advantage of half of the participating teams and fans within driving distance from the host venue, the cost of long-haul flights and accommodation has priced out many international fans. Furthermore, the portrayal of the South Africa as a crime-ridden, aids infested nation by the media may also be scaring off fans that would normally attend the event. And accusations of collusion between airlines to jack up prices have certainly not helped the situation.As for economic benefits, about 130,000 jobs have been created since 2007 from the construction and refurbishment of stadiums. But as many as 30,000 workers who constructed the stadiums and related infrastructure are back on the streets already. South Africa's unemployment rate reached 24.3% in the fourth quarter of last year, nearly the highest in half a decade. The Treasury projects the rate to remain above 21% through 2014. Udesh Pillay, co-author of "Development and Dreams: The Urban Legacy of the 2010 FIFA World Cup says that "The event will not help to significantly mitigate poverty" even thought it will leave behind "many positives." The Ministry of Finance recently said that the tournament would boost GDP by about .5% this year, half of what was projected before the recession.More than 600,000 of the 2.9 million South Africa tickets remain. Low attendance would be a huge blow to the government's efforts to expand the tourism industry and revive consumer spending. It would also be extremely embarrassing for President Zuma and Sepp Blatter, president of FIFA, as both repeatedly assured investors and fans that the South Africa location would be successful. As tour operators slash prices the government is hopeful for a last-minute ticket rush. They better get their marketing cleats on and dig into sponsors to make sure the 32 nation tournament scores big at home and abroad.]]>http://www.justmeans.com/Resource-Rich-Ghana-Extracts-Profits-from-Foreign-Mining-Firms/12322.htmlWed, 07 Apr 2010 06:51:04 GMTJohanna Hoopes Ghana is Africa's second largest gold producer, second only to South Africa, and the ninth largest in the world. Enticed by record prices for the precious commodity, multinational mining firms are digging huge open pits in its resource rich countryside. The Gold Coast is taking steps to protecting its valuable environmental wealth and its workers, in addition to taking a cut of the profits.Ghana's parliament has voted to increase royalties from 3% to 5%, although the bill has not yet been ratifi Read Full Article ]]> Ghana is Africa's second largest gold producer, second only to South Africa, and the ninth largest in the world. Enticed by record prices for the precious commodity, multinational mining firms are digging huge open pits in its resource rich countryside. The Gold Coast is taking steps to protecting its valuable environmental wealth and its workers, in addition to taking a cut of the profits.Ghana's parliament has voted to increase royalties from 3% to 5%, although the bill has not yet been ratified by Ghana's president. The most obvious reason for the increase is its scary budget deficit of almost 10% of GDP. But the underlying cause for more royalties and stricter enforcement of environmental laws is the sense that Ghana does not benefit much for all its mineral wealth. While gold accounted for 40% of all exports in 2008, valued at $2.2 billion, the government only received $116 million from mining firms. That is less than 4% of the country's total tax revenue. China's Minister of the environment recently scolded investors saying "don't come to mine and pollute the water bodies, repatriate your profits and leave our people suffering."For the most part, mining firms in Ghana have done just that. In February, environmental regulators suspended production at AngloGold Ashanti's Iduapriem mine because the mine's tailings dam, which stores cyanide-laced waste was almost full. In 2009 the agency prevented Golden Star Resources, a Canadian company, from expanding a mine when it failed to fill an abandoned pit. And most recently, it fined Newmont, the world's second largest goldmining conglomerate, almost $5 million over a cyanide spill at its Ahafo mine. Predictably, mining firms are whining and claiming that new royalties could deter future investments and violate current agreements. But advocates of sustainable development claim it will do just the opposite for the resource rich nation.By increasing royalties, Ghana is showing investors that it means business. In the midst of an oil boom, Western firms like Exxon Mobil are eager to develop fields off the country's coast. By resolving to capture at least a third of the proceeds from oil, which is likely to bring in far more money than gold, Ghana's government will make its commodities more valuable and will attract foreign investment across all sectors. In addition to increasing profits, Ghana needs to create institutional mechanisms and regulations to protect all its natural resources from exploitation and ensure that the economy benefits from its resource riches.Photo Credit: Creative Commons]]>http://www.justmeans.com/Asian-Market-Fluctuations-Ease-Trading-Tensions/12289.htmlTue, 06 Apr 2010 10:32:52 GMTJohanna Hoopes On Tuesday, Asian stock markets closed with mixed results. The yuan rose to its highest peak in three months, extending a two week rally fueled by rebounding U.S. economic date and a thaw in Sino-U.S. tensions over the pegged yuan. While the Australian dollar seems likely to continue gaining ground, Japan's Nikkei struggled to maintain momentum after successive highs over the past week. The overall trend indicates that financial recovery is underway and in some cases the market is even a bit ove Read Full Article ]]> On Tuesday, Asian stock markets closed with mixed results. The yuan rose to its highest peak in three months, extending a two week rally fueled by rebounding U.S. economic date and a thaw in Sino-U.S. tensions over the pegged yuan. While the Australian dollar seems likely to continue gaining ground, Japan's Nikkei struggled to maintain momentum after successive highs over the past week. The overall trend indicates that financial recovery is underway and in some cases the market is even a bit overstretched. Analysts have their fingers crosses that market fluctuations will continue to reflect a rebounding global economy.Many stocks in Asia and the U.S. are making significant improvement in terms of pricing power, fueling new rounds of earnings growth for many Asian consumer exporters. Japan's Nikkei Stock Average of 225 companies finished 0.5% lower as traders took profits after multiple days of 18-month highs. Australia's S&P/ASX 200 ended 0.9% higher due to increases in resource shares and backed by a quarter point interest rate increase by its central bank. South Korea's sluggish Kospi Composite added just 0.1%, even after Samsung's nearly 20% surge over the last few weeks had investors betting on good earnings estimates, which could limit further gains in the next quarter. Taiwan's main index closed up 0.8% and New Zealand's NZX-50 was 1% higher while the Shanghai Composite finished nearly unchanged. These market fluctuations will all affect the U.S. Treasury's semi-annual report on currency policy, which it has delayed until April 15th.The U.S. government is anticipating a move in China's currency, which banks think will happen within the next month or so. This speculation is fueled by its implied appreciation in offshore forward markets, to just above 3%, as markets opened in Shanghai after a long weekend. The upcoming currency revaluation, although a small one, would have huge implications for East-West trade relations. However, the move could also go the other way, defying market expectations. Some currency strategists think that China might be moving toward allowing two-way market fluctuations in the dollar/china exchange, instead of a purely one-way currency appreciation.While traders anticipate the next push for Asian stocks from higher commodity prices, any significant increases will be tempered by the still relatively strong U.S. dollar and continuing weaknesses in U.S. construction. If the dollar continues to fall against the yen (currently at 94.31) the prospects for another round of gains in Asian and U.S. stocks looks promising. Market fluctuations have for now revealed more balanced trade between Asia and the U.S. with progress heading toward beneficial relations for many partners.Photo Credit: Creative Commons]]>http://www.justmeans.com/Do-Sporting-Cities-Spur-Economic-Growth/12120.htmlFri, 02 Apr 2010 02:39:50 GMTJohanna Hoopes Being from Boston, I would argue that the city is one of the greatest in the nations in spectator sports. I am sure that Yankees fans would beg to differ. Sports cities nationwide are economically primed and ready for investment in professional teams. Others that currently host a major-league sports franchise are way overextended. Are professional sports a drain on public resources or a pump for economic growth and urban development?A recent study on portfolio.com shares the results on America's Read Full Article ]]> Being from Boston, I would argue that the city is one of the greatest in the nations in spectator sports. I am sure that Yankees fans would beg to differ. Sports cities nationwide are economically primed and ready for investment in professional teams. Others that currently host a major-league sports franchise are way overextended. Are professional sports a drain on public resources or a pump for economic growth and urban development?A recent study on portfolio.com shares the results on America's most viable sports markets. The study analyzes 82 markets in the United States and Canada to determine if they have the financial ability to support professional teams in baseball, football, basketball, hockey and soccer. The analysis is based on each area's total personal income (TPI), the sum of all money earned by all residents in a year. For example, Los Angeles, despite having an impressive metro population of 12.9 million and combined annual income of $552 billion the city does not have a professional football team. According to the study, L.A. is the most attractive place to bring a new professional sports franchise or expand and relocate a struggling team. Its TPI is large enough to support not just one NFL team, but five of them.L.A. already has eight franchises in four other spots. On the surface, a new facility or franchise is a prime candidate for an economic development project aimed at revitalizing urban neighborhoods. Unlike abstract economic development tools like tax credits or incentive zones, arenas and stadiums are highly visible structures. Besides being wildly popular with city residents, sports franchises are frequently cited as sources of job creation and income generation. They also provide non pecuniary benefits like civic pride and solidarity. Cities provide the owners of professional sports franchises with huge subsidies for the construction of facilities and expect returns that far outweigh the costs. But some economic impact studies argue that these projects are not viable and waste public funds that should be used toward more pressing needs like education and housing. Opportunity costs in public spending should be considered carefully as funding spent on sports rather than education could even reduce earnings in the long run.It seems the key to sports as an engine for economic growth is finding the right team at the right price in the right place. Cities like Denver, Cleveland, Pittsburgh and Tampa are already way overextended. Providing exorbitant public subsidies for professional sports teams seems rather irresponsible while cities struggle to pay down their deficits. Perhaps voting on referendums would suggest that taxpayers favor subsidies for professional sports teams despite the potential costs. Could league-wide regulations regarding price gouging and employee compensation be an option? As a sports fan, I certainly want to believe in the benefits that a great franchise can bring to a struggling neighborhood if they act as a responsible community member. Go Sox!Photo Credit: creativecommons.org]]>http://www.justmeans.com/Google-Loses-Guanxi-in-China/11879.htmlMon, 29 Mar 2010 16:46:53 GMTJohanna Hoopes As an entrepreneur living in Shanghai, I am well aware of the rules of the game. When doing business here, you are doing business with the Chinese government. If you don't want to follow the rules, you can take your business elsewhere. And that is what Google did. Does Google's bold move mean that other multinationals will follow in suit? Certainly not.Business as usual will continue in the Middle Kingdom. While Google's direct suppliers are scrambling for new partners, the bigger players are fi Read Full Article ]]> As an entrepreneur living in Shanghai, I am well aware of the rules of the game. When doing business here, you are doing business with the Chinese government. If you don't want to follow the rules, you can take your business elsewhere. And that is what Google did. Does Google's bold move mean that other multinationals will follow in suit? Certainly not.Business as usual will continue in the Middle Kingdom. While Google's direct suppliers are scrambling for new partners, the bigger players are finding plenty of opportunities elsewhere. Motorola, which uses Google's Android as its mobile operating system in the U.S, has promptly dropped Google's search engine from its Chinese models, adding Baidu and Bing to its handsets. China is Dell's second largest market behind the U.S., and HP is the fastest growing computer company in Asia. Neither corporation plans on changing it entry strategy to accommodate Google's high and mighty push for uncensored search results.In the short run, Google is likely to lose its 31% market share in China, while users switch to Baidu, the leading Chinese search engine that controls 61% of the market. The Chinese government will continue to welcome foreign investment and enterprise, but will not budge on the issue of censorship. While this is not as much of an issue for hardware and product companies, the Yahoo's and Microsoft's of the industry have to deal with the daily crackdown for now. In the long run, it is the presence, not the absence, of international companies that will have an impact on the freedom of information here.I suppose hindsight is 20/20 in these cases, but perhaps if Google had taken another route it could have kept its investment in the world's largest emerging market. Rather than publicly complaining about the hacking attack and its decision to stop complying with Chinese search censorship, Google could have discussed the situation further with its Chinese counterparts. The concept of Guanxi is the idea of "saving or preserving face." When doing business in China it is very important that both partners in a negotiation maintain their pride, regardless of the outcome. In this situation it appears that Google caused its own loss of face, in addition to 338 million customers.]]>http://www.justmeans.com/Social-Insecurity-Affects-Small-Business/11694.htmlFri, 26 Mar 2010 15:07:02 GMTJohanna Hoopes The New York Times this morning reported that the Social Security Administration will dole out more in benefits this year than it will receive in payroll taxes. Policymakers thought they had until 2016 before they had to deal with this impending issue. The weak economy has brought it to the front burner because jobs disappeared and retirees applied for benefits sooner than they had anticipated. With fewer paychecks to tax, Society Security went into the red.For small businesses, this issue hits Read Full Article ]]> The New York Times this morning reported that the Social Security Administration will dole out more in benefits this year than it will receive in payroll taxes. Policymakers thought they had until 2016 before they had to deal with this impending issue. The weak economy has brought it to the front burner because jobs disappeared and retirees applied for benefits sooner than they had anticipated. With fewer paychecks to tax, Society Security went into the red.For small businesses, this issue hits home on multiple fronts. Most small businesses cant afford to offer employees retirement plans, so they depend on Social Security for a major portion of their retirement income. They rely on Social Security for solvency. But if Congress raises Social Security taxes to cover their retirement plans, small enterprises will be hit on the front end. Small business owner must pay payroll taxes whether they are profitable or not. Currently, employers pay 6.2 percent of each employee's taxable earnings to Social Security. The employee matches that 6.2 percent. Self-employed individuals have to pay both the employer's and the employee's share. Many times it is their biggest source of taxation.According to the National Federation of Independent Business, more than 80% of its members and the small business community at large oppose raising Social Security payroll taxes. Raising the tax would increase the cost of hiring an employee, not exactly a good incentive in an economy that desperately needs to create more jobs.So what other options exist to solve this quickly approaching insolvency? The obvious option is to raise retirement age. With retirees these days staying active into their 80's, working an extra two years would put more money into Social Security and take less money out. Bu this choice is extremely unpopular across the labor force, including business owners. What about reducing retirement benefits for the independently wealthy? That option won't fly with voters either. The easiest choice politically would be to solve the problem by printing money, but we all know how that one ends.Currently, the shortfall is only at $29 billion, a small amount relative to the $700 billion that flows in and out of the system, which has a balance of $2.5 trillion. If the economy can somehow recover swiftly, that cushion will begin to grow again before the baby boomers start to retire in droves. At that point outlays will exceed revenue regardless of how the economy performs. This problem warrants a long-term solution rather than a band-aid to ease the pain.]]>http://www.justmeans.com/Help-Wanted--China-s-Labor-Shortage/10945.htmlTue, 16 Mar 2010 06:34:25 GMTJohanna Hoopes Although China's factories and assembly lines are becoming an increasingly important part of the global supply chain, manufacturers must still overcome a major obstacle: finding enough skilled workers. Shortages of high-level human resources will be a key challenge for advancing China's industries to the next stage. Strategic industries in the automotive, energy, and electronics sectors have blossomed in China over the past decade, and most international suppliers have invested in China to reduc Read Full Article ]]> Although China's factories and assembly lines are becoming an increasingly important part of the global supply chain, manufacturers must still overcome a major obstacle: finding enough skilled workers. Shortages of high-level human resources will be a key challenge for advancing China's industries to the next stage. Strategic industries in the automotive, energy, and electronics sectors have blossomed in China over the past decade, and most international suppliers have invested in China to reduce their manufacturing costs and gain a local presence in the booming Asian market. But now investors are wary of a market that may not be able to back its large scale productive capacities with a cheap, consistent workforce.The main advantages of locating in China are its low labor costs and the country's immense local market. Historically, domestic industries have focused on low-end, high-volume products, as few supplies are capable of producing high-end parts that require innovative and dynamic technologies. Today, Chinese companies are catching up to their overseas competitors. They see that the demand from downstream manufacturers is essential for transitioning to high-tech production and are working to upgrade their capacity and efficiencies to produce more complicated devices. A number of Chinese Original Equipment Manufacturers (OEMs) are expanding their businesses to mobile phones and to communication devices that incorporate more advanced equipment to compete with Chinese/foreign joint ventures and wholly-owned overseas companies.Meanwhile, although the manufacturing of low-end products continues to be transferred to China, this trend may be slowing. Producers are still increasing the volume of products they make, but revenue is not growing at the same rate, so average selling prices (ASPs) continue to decline. Rising production can eventually result in excess supply, which will spur further pricing drops. China's most ambitious suppliers are aspiring to upgrade their product capabilities before the lower-end products they now make become commodities. To do this they are boosting their pay scales in order to attract more educated workers and investing in manufacturing capital.Here's where this disconnect is hindering growth. Companies developing advanced product lines are encountering tough obstacles in hiring highly skilled workers, simply because the services of those workers are in high demand and the supply is extremely limited. Regional governments are addressing these issues by collaborating with universities to train students in high growth industries. Since this problem will take years to correct, China's factories should hire certain managers and arrange worker training first, before facilities are constructed. In many ways this is a good problem to have, at least domestically. It means that China's manufacturers are making moves into more high tech, lucrative market segments. Slower progress may be good to prevent these industries from overheating, as many predict.Photo Credit: Saad Akhtar]]>http://www.justmeans.com/Asian-Solar-Invasion-Brings-Light-to-US-Energy/10823.htmlSun, 14 Mar 2010 07:38:54 GMTJohanna Hoopes Suntech America, Yingli Green Energy Americas and UpSolar are all Chinese companies with U.S. headquarters San Francisco. This strategic location places them close to American customers and qualifies them for state and federal incentives. These Chinese manufacturers are all building or looking for manufacturing space in the U.S. Suntech and Yingli were recently award $2.1 million and 4.5 million, respectively, through a $2.3 billion federal stimulus program for clean energy manufacturers, which Read Full Article ]]> Suntech America, Yingli Green Energy Americas and UpSolar are all Chinese companies with U.S. headquarters San Francisco. This strategic location places them close to American customers and qualifies them for state and federal incentives. These Chinese manufacturers are all building or looking for manufacturing space in the U.S. Suntech and Yingli were recently award $2.1 million and 4.5 million, respectively, through a $2.3 billion federal stimulus program for clean energy manufacturers, which stipulated that they must manufacture solar panels Stateside.States like California and Arizona are allocating substantial funds from the American Recovery and Reinvestment Act to income, sales and manufacturing tax credits for clean energy producers located in their borders. One has to wonder how much of that money is reinvested into the American economy, through jobs for U.S. workers or procurement of raw materials.Suntech is the first Chinese solar company to announce its plans to manufacture panels in the U.S. The company is preparing to open its first factory, a 30-megawatt facility in Goodyear, Arizona, which has the potential to expand to 120 megawatts and serve over 7,500 homes. According to Suntech America VP, Steve Chadima, Suntch was drawn to build a U.S. factory by the American Recovery and Reinvestment's "Buy America" clause, which stipulates that goods used in federally funded projects should come from U.S. manufacturers when available and when the cost of U.S. products compared to foreign products isn't prohibitive. Because of its U.S. presence, Suntech has been eligible to bid on contracts that would otherwise have been off limits to a Chinese solar manufacturer.However, Chadima also warned that domestic content restrictions can be taken too far, artificially inflating costs, which are eventually transferred to consumers through higher pricing. While labor is much cheaper in China, placing products closer to customers and implementing just-in-time inventory management will also bring down costs and make them comparable to Chinese costs of producing solar panels. The fact that Suntech also has access to new suppliers, contracts and customers makes up for the fact that production is a bit more expensive.Solar-panel manufacturer Kyocera Solar, with operations in Scottsdale, Arizona, also recently announced plans to open its first plant in San Diego, for similar reasons. Yingli Green Energy is in negotiations for a 100-megawatt factory between Austin and Phoenix. And UpSolar is also looking for a joint-venture partner based in the U.S. Seems that these foreign firms are feeling out the U.S. manufacturing sector to determine if production could be more profitable due to location advantages and financial incentives. If it pans out, attracting foreign direct investment has the potential to benefit U.S. workers, state governments and consumers.]]>http://www.justmeans.com/An-ICE-Age-of-Derivatives/10676.htmlFri, 12 Mar 2010 08:04:11 GMTJohanna Hoopes With the global financial system collapsed in late 2008, it became clear that the huge and highly unregulated derivatives market needed to change. The value of derivatives is based on the value of another asset such as a stock or a bond. When Lehman Brothers went under on September 14, 2008, it had $738 billion of these contracts on its books. Lehman was followed by insurer AIG, which reported as much as $53.5 billion in derivatives losses, which were linked to almost one third of its $182.5 bil Read Full Article ]]> With the global financial system collapsed in late 2008, it became clear that the huge and highly unregulated derivatives market needed to change. The value of derivatives is based on the value of another asset such as a stock or a bond. When Lehman Brothers went under on September 14, 2008, it had $738 billion of these contracts on its books. Lehman was followed by insurer AIG, which reported as much as $53.5 billion in derivatives losses, which were linked to almost one third of its $182.5 billion federal bailout. The scope of this exposure was beyond investors' wildest nightmares. Enron's demise just a few years prior had only $22 billion in derivatives weighing down its financials.Although Washington has been promising to crack down on derivatives for decades, slow-moving regulators and law makers have made little progress toward taming these wild beasts, even after the financial collapse. Derivatives are the reason for the current debt crisis in Greece, where Goldman Sachs helped the government to use currency swaps to take advantage of exchange rates by making its dollar and yen denominated debt look like cheaper euro-denominated debt. While the Senate stalls on the requirements of financial reform, banks and financial institutions have quietly taken the initiative to self-regulate.Last year, a group of banks began clearing derivatives on a new entity called ICE Trust US, a clearinghouse owned by Intercontinental Exchange Inc., which operates futures exchanges and over-the-counter markets. Intercontinental has been a major player in creating alternative forms of trading since its inception in 2000, and is currently listed on the NYSE with a market cap of $8 billion. Intercontinental acquired The Clearing Corporation (TCC), which provides services for over-the-counter derivatives trading with nine big banks: BOA, Citi, Goldman Sachs, JPMorgan Chase, UBS, Merrill Lynch, Morgan Stanley, Deutsche Bank and Credit-Suisse. ICE Trust US was then created to clear trades for credit default swaps, a type of derivatives that can be used as insurance against credit defaults and generally focuses on trades between banks and brokers.Still following? Intercontinental gets half of ICE Trust US revenues, and the nine founding banks split the remaining profits. Recently, Barclays, HSBC, the Royal Bank of Scotland and BNP Paribas have signed on as trading members (although they do not have an ownership stake.) So while Washington stayed tangled in bureaucratic details of creating a clearinghouse, ICE Trust US was making moves. Between March and December 2009, ICE Trust US processed $3.1 billion in trades of credit default swaps and collected $30 million in fees. In English? This is similar to a car dealer saying it sold $200 million in Chevy's and earned $5 million in profits.Now, if the Senate ever gets around to passing the clearinghouse requirement ICE Trust US market share could explode. While many agree that putting derivatives trades on a clearinghouse will reduce systemic financial risk. It isn't a perfect solution. There will still be deals that don't fit into the system for lack of a price history. At least it's a step in the right direction.]]>http://www.justmeans.com/Is-Financial-Innovation-Constructive-or-Destructive/10385.htmlMon, 08 Mar 2010 15:17:42 GMTJohanna Hoopes After decades of praising innovative financial mechanisms and models for their ability to create value, the tools of wealth creation have come under attack. Some economists claim that the authorities have failed to uphold their regulatory responsibilities of channeling financiers whims toward sustainable economic growth and social development. Others argue that these mechanisms are inherently self-serving, generating profits solely for their creators. Most recognize that policy plays an importan Read Full Article ]]> After decades of praising innovative financial mechanisms and models for their ability to create value, the tools of wealth creation have come under attack. Some economists claim that the authorities have failed to uphold their regulatory responsibilities of channeling financiers whims toward sustainable economic growth and social development. Others argue that these mechanisms are inherently self-serving, generating profits solely for their creators. Most recognize that policy plays an important role in ensuring that financial innovations benefit the broader economy. But not all financial innovations have been socially and economically destructive. While there are plenty of examples of tools that have failed us recently, it is important not to overlook the ones that continue to shore up our financial system.First let's tear apart some of the more detrimental innovations of our time. First and foremost, collateralized debt obligations (CDOs) played a major part in financing way too many subprime mortgages that led to the financial crisis. Similarly, the Structured Investment Vehicle (SIV), created by Citigroup in the late 1980's to warehouse asset-backed securities and avoid bank capital rules proved fatal for long-term financial stability. Other innovations that were originally designed to aid buyers and increase liquidity, such as the adjustable rate mortgage (ARM) and the home equity line of credit (HELOC), were abused by both borrowers and lenders throughout the 1990's. These initially useful mechanisms became detrimental when they lured people into loans they couldn't service and allowed decision-making based on asymmetric and inaccurate information.Now let's take a look at many more beneficial financial innovations and the ways they have positively impact our economy. Beyond buying stocks and bonds, money market funds, indexed mutual funds, exchange traded funds and inflation-protected treasury bonds (TIPS) have revolutionized the way people save for the future. These funds offer not only added convenience but better risk-adjusted returns than previous alternatives. As for payments, the introduction of credit cards, debit cards and internet payment options like Paypal have changed the way people consume and spend (for better, and in some cases for worse). Mobile banking is paving the way in developing markets, empowering producers and consumers who were previously deemed un-bankable and providing increased transaction security.Finance also helps translate society's savings into socially valuable investment. Although mortgage related innovations have taken their toll, securitization has been and will continue to be constructive by expanding sources of financing. Though its future is uncertain, venture capital has benefitted the U.S. economy in many ways, and private equity has fueled start-ups and saved struggling firms that needed a push. And finally, the rise in options, futures, interest-rate and currency swaps and has allowed firms and institutional investors to hedge all kinds of risks. As long as these swap arrangements are standardized, centrally cleared and traded on exchanges to reduce systemic risk and pricing, another AIG misuse of CDs will not be likely.The sweet spot for policy makers then, is to fully understand the side effects of innovation and limit negative unintended consequences without stifling positive progress. Being mindful of destructive innovation and the misuse of constructive innovation is a first step to preventing financial bubbles. Meeting this challenge is not an easy, but certainly a worthwhile undertaking.Photo Credit: Andres Rueda]]>http://www.justmeans.com/Asian-Video-Gamers-Taking-Over-Cyber-World/10149.htmlWed, 03 Mar 2010 15:16:35 GMTJohanna Hoopes The videogame market in China is growing faster than games can be released. The number of online gamers is expected to reach 230 million over the next few years, more than three times the current estimated level of 69 million gamers, according to the China Internet Network Information Center. Revenue from the Chinese game market rose 39% last year to 25 billion RMB or $3.7 billion. While investors and businesses are eager to get in on the heady market growth, significant hurdles stand in their w Read Full Article ]]> The videogame market in China is growing faster than games can be released. The number of online gamers is expected to reach 230 million over the next few years, more than three times the current estimated level of 69 million gamers, according to the China Internet Network Information Center. Revenue from the Chinese game market rose 39% last year to 25 billion RMB or $3.7 billion. While investors and businesses are eager to get in on the heady market growth, significant hurdles stand in their way.Businesses entering the ripe Chinese market are discovering that rampant piracy and government bureaucracy cut into their potential profits. Companies like Shanda Interactive Entertainment Ltd. lose over 1.5 billion in annual profitability to hackers and pirates. Expenses related to piracy are increasing with new users, as companies are forced to fight off private servers running their games with the help of advanced tracking technologies and weekly security sweeps. Beijing-based start-up Kylin Games said it spends almost 10% of its revenues on secure online services to keep hackers from lifting its game code.Because of its enormous forecasted growth, the market has received increased attention from authorities in China. New, protectionist regulations from Beijing are shielding the Chinese market from foreign investment in domestic online games, as well as gangster and mafia-themed games. Its no wonder when Shanda Games Ltd, a market of multiplayer online games with roughly nine million users, raised more than $1 billion in an initial public offering on the Nasdaq Stock Market last year.While this gaming obsession offers exciting market opportunities, one has to wonder about the social consequences of this mass video-game movement. On the positive side, video games introduce children to computer and information technology, which is increasingly important in this day and age. Gaming can provide practice in the use of fine motor and spatial skills, and even has therapeutic applications with patients. Detrimental effects from over-dependence on gaming are that they foster social isolation, encourage aggressive behavior, retard independent thought or creativity, and can even create confusion between reality and fantasy. Several studies even claim that young men randomly assigned to play Grand Theft Auto III exhibited higher blood pressure, more permissive attitudes toward using alcohol and marijuana, and more uncooperative behavior.Although this market may be booming from a financial standpoint, companies should be held accountable for the content they are releasing and an appropriate ratings system must be enforced to monitor the violent and potential harmful effects of these games.]]>http://www.justmeans.com/Working-from-Anywhere-and-Everywhere--Part-II/9737.htmlSat, 27 Feb 2010 03:42:54 GMTJohanna Hoopes Location independent careers tend to fall into three buckets: entrepreneurs, freelancers and telecommuters. Each has its own intricacies and requires that the professional possess certain qualities to thrive without a traditional office.As an entrepreneur you are own boss. You call the shots but you also take the hits. But simply being an entrepreneur doesn't automatically give you location independence. Many industries are clustered ingeographic conglomerates and are relatively immobile (althou Read Full Article ]]> Location independent careers tend to fall into three buckets: entrepreneurs, freelancers and telecommuters. Each has its own intricacies and requires that the professional possess certain qualities to thrive without a traditional office.As an entrepreneur you are own boss. You call the shots but you also take the hits. But simply being an entrepreneur doesn't automatically give you location independence. Many industries are clustered ingeographic conglomerates and are relatively immobile (although that is changing). Entrepreneurship becomes mobile when the entrepreneur is able to see and act on business opportunities and market needs as they ebb and flow around the globe. Successful location independent entrepreneurs are generally inventors of items or technologies, import/exporters, or pioneers of business ideas that are marketed virtually.Both entrepreneurs and freelancers tend to be self motivated and organized. They are self starters who can take ideas and run with them. Freelancers differ from entrepreneurs in the nature of their work and who they work for. Freelancers take on projects for multiple clients and work across a mishmash of industries. They may be writing and researching one day, consulting for a start-up the next. Freelancers may be generalists who feel comfortable in many roles, from online marketers to business strategists. Many sell their brand as "business services" and take whatever work comes their way, outsourcing when they need more specialized expertise. The great thing about freelancing is the variety of the work, networking with a range of clients, and the ability to set your own schedule and workload. I consider myself to be a freelancer, although I boast a mean entrepreneurial streak and am perpetually cursed with wander-lust.Rounding out location independent professionals is the telecommuter. I feel a special bond with these work from home guru's because I lived with one for several years. Let me tell you from experience, working in sweatpants is worth it. Telecommuters usually work for one boss or company, but have the flexibility to work from home (or anywhere they can sign online and connect with their office server.) Many companies now offer "flex schedules" as an employee incentive, which allow workers to spend several days a week from home. It saves the company money on office space and gives the employee freedom from sitting in a cubicle 40 hours a week. As more and more companies work to reduce expenses by outsourcing and increasing productivity, telecommunting is becoming even more popular. Telecommuting and freelancing go hand in hand. If one company decreases your hours to cut costs, it's possible to pick up a side job to supplement your income. Bam! Your working from the beach before you know it.]]>http://www.justmeans.com/Working-from-Anywhere-and-Everywhere--Part-I/9562.htmlWed, 24 Feb 2010 22:51:54 GMTJohanna Hoopes What if you could work from anywhere in the world? Where would you go? Your backyard? The mountains? Your bed? A remote island, perhaps? A "location independent" career is the ticket to cubicle freedom. Location independent means a career that does not require your physical presence in any one place for you to get the job done. You may still need to come into the office or travel to a client site occasionally, but for the most part your geographic location is irrelevant.How is this possible? Loc Read Full Article ]]> What if you could work from anywhere in the world? Where would you go? Your backyard? The mountains? Your bed? A remote island, perhaps? A "location independent" career is the ticket to cubicle freedom. Location independent means a career that does not require your physical presence in any one place for you to get the job done. You may still need to come into the office or travel to a client site occasionally, but for the most part your geographic location is irrelevant.How is this possible? Location independence is dependent on advances in technology such as cell phones, skype, the internet, virtual conferences and webinars, scanners, and webcams. Cisco's telepresence technology allows you to see a colleague across the world in a hologram as if they were sitting across the table from you. As these innovations facilitate faster communication and better business, companies are realizing the cost-savings of virtual employment. This means that virtual employees must be comfortable communicating in these spaces to function effectively and get ahead, even if they aren't at the office. So, although you don't need to be a cyber-wizard to work from home, you do need to understand computers, the internet and the range of rapidly changing communications tools that connect businesses around the world.Although no morning commute sounds like a dream, location independent careers have their advantages and disadvantages. While you save money, time and resources working from wherever you please, you must be extremely self-disciplined since your boss isn't there looking over your shoulder. It's easy to say you are working from home and then set to work diligently tackling all of the odd jobs that need attention around your house. Setting up a home office or at least a clean workspace dedicated solely to your job is a good way to make sure you "go to work" while at home. And if you have the freedom to make your own hours, more power to ya. Just make sure to set your own deadlines and check in with yourself daily to ensure that you are keeping up with your workload. If you're a perpetual explorer like myself, you can even fulfill your wander-lust with long-term travel as long as you make sure to carry all the tools on your back. Just because you are holed up in a hostel in Bangalore doesn't mean you can't take a 3 am conference call with the World Bank (been there.)Working in your PJ's certainly has its perks, but it can also be detrimental to your professional development if you're not careful. Depending on your line of work, it can be lonely without office banter, and you may even feel out of the loop if you tune in remotely. Stay informed on goings-on at the office, find a mentor or champion of your work to let people know your most recent accomplishments and make a point to attend networking events (in the flesh and online) if you work for yourself.Next blog'll look into types of careers that lend themselves to locational independence and find resources for those hoping to make the switch.]]>http://www.justmeans.com/Olympic-Games-Raise-Sustainability-Bar/9316.htmlSun, 21 Feb 2010 23:57:11 GMTJohanna Hoopes At the Olympic Winter Games, sustainability is much more than a marketing campaign. Winter sports, dependent on snow and ice, are particularly vulnerable to the effects of climate change. Rising snow levels, receding glaciers and variable weather conditions threaten the playing field for our beloved snowboarders, bobsled riders and slalom skiers. Simultaneously, large sporting events like the Olympic and Paralympics Winter Games use energy to make snow, freeze ice sheets and sliding tracks, heat Read Full Article ]]> At the Olympic Winter Games, sustainability is much more than a marketing campaign. Winter sports, dependent on snow and ice, are particularly vulnerable to the effects of climate change. Rising snow levels, receding glaciers and variable weather conditions threaten the playing field for our beloved snowboarders, bobsled riders and slalom skiers. Simultaneously, large sporting events like the Olympic and Paralympics Winter Games use energy to make snow, freeze ice sheets and sliding tracks, heat buildings, run power equipment, and transport people and goods. These actions generate greenhouse gases, or carbon emissions, and contribute to the climate change problem.The Vancouver Organizing Committee for the 2010 Olympic and Paralympics Winter Games (VANOC) has focused on minimizing the carbon impact of the Games and using the event to inspire broader awareness and action on climate-change solutions. The games carbons strategy is four-pronged: Know (how much carbon is emitted, publicly track and report on it), Reduce (emissions wherever possible), Offset (direct emissions that cannot be reduced or eliminated), Enable & Inspire Further Action (to increase awareness and participation in emerging solutions to climate change.) VANOC is the first Olympic Organizing Committee to track and report its carbon emissions from the day of winning the big until the closing of the games, over a duration of seven years instead of the 27 day Games period.The Games started with a preliminary estimate of its carbon footprint based on operations plans, prepared by the David Suzuki Foundation and reviewed by Pricewaterhouse Coopers. Next, the Committee worked with the Centre of Sustainability and Social Innovation at UBC Sauder School of Business to develop its 2009 Carbon Forecast. To outline the emissions of such a complex multi-sport event, the Committee used the GHG Protocol Initiative, a widely accepted corporate standard. The Forecast predicts that since winning the bid in 2003, the Games will generate a total of 270,000 tons of carbon emissions - 120,000 direct emissions from controlled activities such as venue construction, operations, transportation and waste management, and 150,000 indirect emissions largely from air travel and accommodation of spectators, sponsors and partners which are outside VANOC's control. The torch relay alone generates 3,000 tons of carbon from vehicle emissions, celebrations, accommodations and the actual fuel required to keep the torch lit. VANOC has managed to reduce this footprint by two thirds through operational improvements and integrated transportation planning such as vehicle sharing.The focus of the Games has been to reduce carbon emissions by not emitting them in the first place through transportation planning, efficient office operations, green venue design andconstruction,fleet vehicle management and power planning. Although participants have worked to reduce carbon use, holding the Olympics will still generate significant emissions. To take responsibility for its direct footprint, VANOC secured the first carbon offset sponsor of the Games. Offsetters, a Canadian-based carbon asset management company and supplier, will offset direct emissions from the Games with clean technology projects that remove of avoid an equivalent amount of emissions from the atmosphere. Games spectators and audiences are also encourage to calculate and voluntarily offset emissions from their travel to and from the region. The Olympics this year act as an example for large sporting events and gatherings around the world to follow.Photo Credit: thelastminute]]>http://www.justmeans.com/The-Ins-and-Outs-of-Importing-from-China/9139.htmlThu, 18 Feb 2010 22:48:00 GMTJohanna Hoopes Although most big retailers have entered the Chinese market, smaller wholesalers and retailers are still hesitant to engage the Red Giant. They fear the complexities of working with foreign suppliers, the favoritism characteristic of the Chinese government, and the implications the procurement process will have on their supply chain. They even fear that outsourcing their competitive advantages will eventually put them out of business. But there are significant businesses benefits to learning how Read Full Article ]]> Although most big retailers have entered the Chinese market, smaller wholesalers and retailers are still hesitant to engage the Red Giant. They fear the complexities of working with foreign suppliers, the favoritism characteristic of the Chinese government, and the implications the procurement process will have on their supply chain. They even fear that outsourcing their competitive advantages will eventually put them out of business. But there are significant businesses benefits to learning how to import. Gaining import knowledge and knowhow gives you access to a broader range of products at better prices than your competitors, making your product options more competitive in the marketplace. By understanding and managing the risks of doing business in China, you can minimize liabilities, delays, quality defects, and most importantly costs. The following are some tips to help you get on your way.Do your homework. Learning about the Chinese export market for your chosen product, as well as the demand for that product in your local market is the first step to successfully importing a good. Sourcing publications are a good place to start as there are many online websites and journals that detail industry trends and verified supplier information. For in-depth studies on specific industries, pricing and forecasting it may be worth investing in a "China Sourcing Report." Obtaining first-hand opinions from procurement experts is also a valuable source of information.Find a trustworthy supplier. Developing a relationship with a communicative and dependable supplier is perhaps the most important aspect of sourcing. There are many directories where you can find "verified suppliers" that are pre-screened, registered, and export-ready. A good sourcing portal will allow you to contact potential suppliers directly regarding product warranty, price, key specifications and minimum order quantity. State your requirements and logistics to suppliers clearly and ask if they provide product samples. There are sourcing fairs that you can attend to test samples in your industry free of charge.Visit a factory. You would be surprised how easily you can visit a factory. Many suppliers arrange for transport and may even take you to competitors factories. This way you can meet the management and gauge their competence and level of technical sophistication, ensure compliance with regulations and labor laws, check production capacity, and see if they subcontract any parts of production. You can also pay a local agent or third-party quality (3PQ) firm to inspect the factory on your behalf. Agents should speak the local language and be familiar with local conditions to make a judgement on your behalf. Most charge a commission from the amount of goods you import and will also inspect the goods before they are shipped. If you cannot observe the loading yourself, this is a good option, as issues can arise such as wrong count, SKUs, improper handling, inadequate dunnage or damage to the container.Understand compliance regulations. Research the different regulatory bodies as compliance can be complex. Even with the help of a customs house broker, tracking progress, providing addition information, and endorsing the bill of landing will be necessary to ensure that you abide by all laws and pay additional fees. Neglecting compliance can result in costly customs duties or clearance delays. Finally, having a good estimate of the landing costs is important to ensuring timely and cost effective delivery.Understanding all the risks costs involved in your import arrangement (hidden and overt) will help you avoid bottom line losses and determine if importing from China is right for your business.Photo Credit: Exfordy]]>http://www.justmeans.com/Facebook-Marketing-for-Nonprofits-101/8944.htmlTue, 16 Feb 2010 04:55:11 GMTJohanna Hoopes Still convinced that Facebook is a shallow tool for teenagers to share pictures and judge each other by how many 'friends' they have? Think again. When utililzed to its full potential, Facebook is a valuable tool for non-profits and social enterprises to engage stakeholders and increase visibility. Yet many non-profits are still wary of social network marketing. They fear that spamming users and asking strangers for donations will hinder, rather than bolster their fundraising efforts. But there Read Full Article ]]> Still convinced that Facebook is a shallow tool for teenagers to share pictures and judge each other by how many 'friends' they have? Think again. When utililzed to its full potential, Facebook is a valuable tool for non-profits and social enterprises to engage stakeholders and increase visibility. Yet many non-profits are still wary of social network marketing. They fear that spamming users and asking strangers for donations will hinder, rather than bolster their fundraising efforts. But there are many different ways to utilize the service to your advantage, from creating an application, setting up a store, or buying Facebook ads.By creating a Facebook page, as opposed to a group, you can publish directly onto the news stream where you connect with your fans through a variety of media, like video, polls and status updates. Pages also allow you to analyze how fans interact with your page via the Insights Dashboard, which provides instant feedback to help you adjust your marketing approach. But your Facebook page shouldn't just be a replication of your website. You can use your page to give users insights into the daily life of your organization and updates on your successes, events, meetings, and other goings on. You can also ask your fans what they think using polls, getting comments on videos and pictures and through other links. When your fans use the Share option to publish to your wall then friends in their networks can also learn about all the good work you're doing.One application, Causes, helps Facebook users be able to make a difference using the social network. The application provides a way for any individual to tell friends about causes, ask them to donate and spread the word using their own page. Also, you can make a user-created advocacy group on which administrators can post announcements, foster discussions, share information and sign petitions as part of communicating with group members. It also houses a Nonprofit Partner Center that facilitates managing multiple chapters using the application.By creating your own application you can continually find fresh and creative ways to engage your fan base. By creating a game, quiz or other fun content that they can post to their walls, you can spread the word without repeatedly sending the same messages or blatantly asking for funds. Adding a store or donations box to your page allows fans to buy merchandise or give you money. That way fans don't have to leave Facebook to support you. In addition, Facebook has a page, facebook.com/nonprofits, specifically to help non-profits use the site. So ride the wave of the future and check out all the features that Facebook offers to engage your tech-saavy fans.Photo Credit: Ben Stein]]>