Monday, September 15, 2008

BOOK LOVERS ALL

“One’s work maybe finished someday but one’s education never.” - Alexander Dumas

Went to the 29th Manila International Book Fair yesterday at the new SMX Convention Center and boy, what an event! The place is teeming with books and jam-packed with people – book lovers like me! I spend 4 hours going through the shelves for books and in the process bumped into several people, mostly my old classmates at MBA, relatives, business colleagues, and a high school classmate. I actually never expected to meet a lot of “old friends” in a book fair because I had this notion that “not great many” people read books. To say that I’m happily proven wrong on this is an understatement. In fact, I’m pleasantly surprised to discover that book fairs could be a place not only for looking up for new books but also to look up for old friends. Books sure can draw people together. Anyway, I was only able to buy 2 books from the fair not because I didn’t find any interesting books on display but on the contrary, I felt there are a plenty to buy this time around. The only problem is the book merchants don’t accept credit cards except for hard cold cash. The two books I bought is already worth around Php4,480 (which brings my total book purchase for the month to close about Php8,000). It actually burned a hole in my pocket and I actually had to break my bank – my long dormant ATM account just to buy the books. Anyway, it’s actually a good thing also since I might end up with books that I would regret buying. The two books I bought are: “Competing in a Flat World: Building Enterprises for a Borderless World by Victor Fung et al” and “Factory Physics, 3rd ed by Hopp and Spearman”. The first book is published by Wharton School and is hard bound while the second book is published by McGraw – Hills. With these two latest additions, my total book holdings now tallies at 249 plus the 62 college books that I had in my possession; all in all, my mini – library now holds 311 books (that is excluding my other siblings book holdings). I made a quick survey of the books I had and discovered that of the 249 books, I had only read about close to a hundred which leaves me with about 150 books yet to be read. As of now, I’m on my sixth book in my reading list and assuming that I could finish 10 books a year (with each book containing about 300 pages or more, or roughly 3000 pages to read in a year). The 150 books remaining would take me about 15 years! In short, I would be able to finish reading all my books I had right now before I turn 50 assuming of course that I stop buying books or attending another book fair from this moment on for the next 15 years, which is highly unlikely I supposed. Ahhh, so many books………. At the rate I’m buying books, I would probably be able to set up a public library sooner than later. Not a bad idea, though that entails a place and a librarian which means additional costs…….. Oh well, I guess I would keep the books to myself to read in the meantime.

P.S. The 29th Manila International Book Fair is held in SMX Convention beside the Mall of Asia and will end on September 16.

Friday, September 05, 2008

NOT ANOTHER MANAGEMENT BOOK ON SUN TSU

I went to a book buying spree a few weeks back at Fully Booked at Serendra. It’s been quite a while since I went into a book buying frenzy for I spent more than 3000 pesos for 4 books that Sunday. Anyway, in the course of my shopping spree, I came across an entire shelf in the business book section filled with management books based on Sun Tzu’s Art of War. Not that I have anything against Sun Tzu’s Art of War or the authors who “distills” his genius into management principles but I hardly find the idea of Sun Tzu’s Art of War as a management book appealing if not outright preposterous. I mean The Art of War is a book about warfare, period and nothing more. Even if the wisdom contained in the 2000 year old book is timeless and applicable to basic business management, still it is out of its context and premise when it is applied to business. The primary reason people used The Art of War as a management book is because of the seeming similarity between warfare and business. In both arenas, it’s about the battle between two opposing forces vying for dominance with each marshalling their resources for the inevitable titanic clash and by logic, if The Art of War can be successfully applied in the battlefield, then why not in the bloody dog eat dog world of business. It is quite a strong and convincing argument indeed. It is not only The Art of War that is being used in “discovering” enlightened management truth; other military thoughts mostly in the form of military maxims are useful as well. In the words of the imminent management “theorist” Henry Mintzberg, the very first and oldest school of management thought is the school of military thinking exemplified by the famous military maxims that we came to learn about. However, though military maxims make good management principles, they hardly constitute good management at all, i.e., you can’t simply piece together a coherent management philosophy by piecing together military maxims. This is where The Art of War comes in. Unlike military maxims, the Art of War represents a coherent philosophy and not just some chop – chop thinking on how to fight a contest between two adversarial forces seeking dominance but that’s where the similarity between war and business ends. In warfare, the contest is basically a zero – sum game, you either win or dead, nothing in between. Even in victory, there is always casualty – corpses littered in the battlefield. It is in these circumstances that Sun Wu wrote his treatise in the Art of War. How to win a war without actually fighting a war? How to transform war from a literal fight to the death into a battle of wits, of maneuvers, of stratagem, of tactics? And his answer is simple - - - deception. The art of war is the art of deception. Sun Wu if he were alive now would have told anybody about that straight forward. You feigned, create diversions, launched a propaganda campaign of misinformation, psych out your enemy such that your enemy would be clueless about your motives, misread your intensions, misjudge about your plans and as a consequence cloud his thinking, lowered his guard, and fooled into making a wrong decision that expose his weak side for you to exploit thus handing over to you an opening, an opportunity, and ultimately victory if you’re not stupid enough to have bungled it. That’s what the Art of War is all about. The game of business on the other hand is not a zero – sum game not like war. And unlike war, there is an arbiter between feuding business competitors – the consumer. Lest one forgets, business is about satisfying a need or want of a consumer within his paying capacity. It is about providing a choice for the consumer to choose and in the process becomes The Choice. The objective of business is profit which in the simplest description is the difference between the revenue exacted from provision of satisfaction to the consumer and the resources expended to provide such satisfaction. The central premise in business is efficiency. The more efficient you are the more profitable you are. In war, we can’t talk about efficiency, for how we are going to define efficiency in warfare? The ratio between the number of soldiers killed versus the number of enemy killed? That sick. The objective of business is profit which hinges on efficiency meaning maximize the gain at the least cost possible. The objective of war on the other hand is nothing but the gain itself regardless of the cost however pyrrhic it can be; be it territorial conquest, strategic advantage, prestige, tribute or any perceived economic benefits. And this why I never liked the idea of Sun Tzu as a management philosophy because it is really out of the context and not in synch with the premise of business. If you’re anywhere good with deception in war, you’re a good commander; if you’re a master in the art of deception at war, then you’re a freaking military genius. Now, if you’re really damn good at deception, you’re a bloody god of war. In business, if you’re good at deception, you’re probably dishonest. If you’re a master at it, you’re a shrewd businessman but if you’re damn good, you’re a con man not a businessman.

Saturday, August 23, 2008

CHANGING PHONES

Bought a new phone 2 Sundays ago to replace my aging and dilapidated Sony Ericsson P900. I didn’t purchase a new phone out of mere fancy but rather, I did so out of no choice. With scratches here and there, chipped edges, and crack keypads, using my P9 has increasingly become difficult even tortuous at times. And so with a heavy heart, I had to forego my old phone, my favorite phone. I love my P9 because it is the only phone that I actually “bought” for myself. Don’t get me wrong but I had phones before my P9 but I didn’t actually “choose” those phones. Rather, I rely on my brother’s or my sister’s recommendations on purchasing a new phone. You see I’m not what they call a “gadget enthusiast” and frankly to me, a phone is a phone is a phone. As long as it could make a call and send a text message, it’s a “good phone” for me regardless of the model. All that changed when I bought my P9. I like my P9 because of its metallic casing and the fact that they advertise it as a PDA phone for the executive and I’m a sucker for such (It turns out that the P9 is the cell phone of choice among DLSU MBA). Anyway, one of the most important reason I liked my P9 is that my P9 has a “Jotter” function, which is actually a notepad for me to write anything I want and that is important to me since I had a habit of scribbling down my thoughts whenever it popped up (I have a notoriously poor memory). Way back in high school, I came across with “famous quotes”, those “sacred” words of advice that came out of the mouth of the “sages”. I immediately fell in love with it and I began to earnestly find and collect these quotes. By the time I’m in college, I was not only collecting quotes but am also writing a few of my own (which I term “my thoughts”). Back then, I always carry a pocket size notebook that fits my shirt pocket to write on (a bit of ancient history; back then, there was no handheld device to use to write down my thoughts, cell phone were just in the drawing board and I’m the only one in class who carries a pager, “Easycall”). After college and for sometime in business school, I stopped writing down “my thoughts”. It is not because I ran out of ideas but because I don’t have anything to write on. I got tired of “carrying” a notebook (in fact, I never did bring anything to business school except for a ballpen). And it is under this situation that I got my P9 and it is why I loved it. For 4 years, my P9 was my companion in solitude, my confidante in silence. And now, when I am changing my phone and transferring my P9’s content that I realized how much my old phone has kept much my thoughts over the past 4 years. These thoughts are very personal to me. They are the very crystallization of my thought process and I’m sharing it to those who want to listen.
05/03/04: Life doesn’t wait for anyone. Take charge and siege the day.

05/05/04: Life today is not an abrupt jump from yesterday but the summation of the gradual accumulation of evolutionary changes that happen in the past.
Elaboration: Events or things don’t happen out of the blue or suddenly or dramatically. Instead the seed is sown way, way before in the past and builds over the years until it becomes “noticeable” to the extent that it is abrupt, sudden, and dramatic. If you want to be a step ahead, notice the little things along the way and be prepared for it for these small incremental changes would become a major event in the future.

05/08/04: The 4 models of “perfect man”
1. Confucius’ “Sage – King/Gentleman”, a morally upright but aggressive man.
2. Plato’s “Philosopher – King”, a logically thinking political/military leader.
3. Machiavelli’s “Prince”, a legally upright but ruthless leader.
4. Nietzche’s “Superman/Caesar with a Christ’s heart”, a compassionate but ruthless and aggressive man.
The underlying theme is balancing compassion with aggressiveness or to be an upright aggressor.
Elaboration: Different philosophers in both east and west have different conception of what is a superior man but strikingly, all of them tend to advocate a man who is aggressive but is within the bounds of human compassion. In short, aggression isn’t really wrong as long as it within a certain bound.

05/08/04: Everybody loves a hero, even the rich but especially, the poor and the weak.
Elaboration: Actually, I was I think reading about American history then in Wikipedia and I was reading about President Andrew Jackson, a populist in his time and I was comparing that to the electoral situation in 2004 wherein candidates are turning to populism to win elections and that middle and upper class rhetoric are riling strongly against “dumb” populist candidates who are perceived to be incompetent and incapable but what little they know that election is not about choosing capable leader but rather it is about choosing a “hero”. The Americans are very good in choosing heroes for presidents as in the case of Andrew Jackson.

05/10/04: The problem with Filipinos is that they justify poverty by saying that we could not bring our wealth to heaven once we’re dead. Because of that, they forego work in favor of other people’s charity. It’s a stupid excuse for indolence and lack of ambition or goal in life. I do not for all intension want to bring my money to my grave but to use it to enjoy life and best of all, bequeath it to my children.
Elaboration: I am sick and tired of hearing the popular Filipino phrase, “if you are dead, you won’t be able to bring your money to heaven.” At first, I thought this is some self content ideology being preached by the church to the believers to calm down their “greed”. In short, it is a religious thingy. But the more I hear that phrase coming from “poor” Filipinos, the more I realize that Filipinos are using that as a justification of remaining in poverty. They seem to say, it’s ok to be poor since I won’t bring my money to heaven after I die and everybody dies, therefore what is the point of earning money?

05/11/04: Love is all hype and overrated. When you’re with someone you love, 80% of the time you’re miserable while 20% of the time, you’re happy. But somehow the relative short period of happiness outweighs the miserable 80% and made it more tolerable and even worthwhile.
Elaboration: Funny thing about Love is that although it hurts a lot, we continue to ask for more and I think this is the reason.

05/15/04: On the 2004 elections, the aristocratic elite and the “masaphobic” middle class relentlessly criticize the illiterate and ignorant “masa” for supporting an “uneducated” and “unqualified” candidate. As the election outcome shows, the so called “masa” are not blindly stupid. They elect persons who are perceived to be their “hero” or champion. Persons they perceived to protect their interest rather than those who have the capabilities or leadership qualities. Come to think of it. It’s a wise and logical choice.
Elaboration: This is what election is all about. It is not electing a capable leader but rather electing a person that one perceived to be “in the same interest as ours” and therefore would without hesitation protect our rights. This is the original concept of democracy and elections and not in choosing a capable leader because if we were interested in capabilities then we don’t have to go through an expensive election to find out who is the more capable one. We could simply have a national examination open to all or an IQ test or a quiz bee contest to find out who is the more capable one and we could be sure about the result, I mean numbers (test results) don’t lie. If that is the case, I’m sure I could be president someday.

05/15/04: The new model of a perfect man in the 21st century is The Perfect Competitor or The Competitive Man.
Elaboration: This is my proposal for what is a superior man, The Perfect Competitor, a man who aims to win in competitions of any form but observes the rules of competition.

05/27/04: Conflicts happens whatever one do. It can’t simply be avoided nor prevented from happening. Instead, conflicts could be managed to minimize the negative impact and to gain the benefits of it. Therefore, a conflict management system should be in place to manage conflict. Failure to manage conflicts would lead to emotional distress and loss of control initiative.
Elaboration: When I was a lot younger, I tried to avoid conflicts. In fact, I abhor them. But as I grew older, I realize that conflicts cannot be avoided or eliminated. It just happened and it is as natural as breathing. And I came to understand that the best way to face conflict is to manage it.

06/03/04: Little people read the news. Great men make them.

06/04/04: Due to advancement in communications and transportation technologies, executives’ span and reach of control has greatly expanded. As such it is possible for governments to remove all together the middle level of local government, e.g., towns, municipality, and even provincial government without hampering government’s efficiency. In this way, the government can undermine the power of the local elites and prevent centrifugal tendencies.
Elaboration: Again, I was reading about history and the growing complexity of governance with the development of multiple layers of local government i.e., village, towns, city, province, and region etc. Governments of the old had to rely on the local elite in order to be able to enforce their effective rule. It is ironic that governments had to decentralize in order to achieve centralization. All that would change in the advent of newer communication technologies. Centralization could be achieved without compromising local interest. Anyway, this not only applies to governments but also to all form of organization including business organizations.

06/07/04: Cosmetics and beauty is very important to women as sex is to men.
Elaboration: I really can’t fathom why women would go agog over cosmetics except for this comparison.

06/12/04: Frameworks, especially theoretical business frameworks are a guide to logical deduction of a situation leading to its logical conclusion. However, this is by no means should be a stifle to creativity and a chain to creative thinking.
Elaboration: As a graduate of business school, I am trained to use frameworks to analyze and ultimately arrive at a decision but sometimes I felt stifled, for I am constrained to think a certain pattern. In short, I’m no longer thinking “out of the box”.

06/15/04: Life is like a conveyor. It brings you there when you least expected regardless if you are ready or not. Regardless if you wanted to or not, you have no choice but to face it. Whether you have a plan or not, you have face it, react to it even without finesse. However, we still have a choice on which conveyor we want to be in.
Elaboration: There are things in life that you don’t have a choice or that the only choice you have is yes or no and not whatever but there are things in life that we could choose specifically, the path we would want to go and as in the poem, “The Road Less Travelled”, that makes all the differences.

06/25/04: Emotions like anger are neither positive nor negative. Emotions are what make us human. The only problem with emotions is how we handle them or react to them. Emotions can cause us to behave irrationally, lose our focus and objectivity, and blinding us form thinking logically. Then again, emotions expertly handled can be a powerful motivator and a potent force for change. History could be said to be a story of a lot of angry people, angry of the status quo, of injustice. This causes revolutions that finally change the course of history.
Elaboration: The funny thing about reading history is that emotions had never quite figure in the development of events in history (at least that is how history is being narrated). Ironic because history is about the story of human beings and human beings are creatures of emotions. Furthermore, there are many of those who think that emotions are a liability to us humans (I was one of them before). I mean you get emotional, you do crazy stuffs that one would regret in the future. But thinking again, emotions are not bad. It is what makes us human without which we would just be some organic 386 computers attached to a loudspeaker. It is emotions that drive us, that make life “spicy” and colorful.

06/27/04: History repeats itself. It has repeated itself. It is repeating itself as we speak and it will keep repeating itself again and again if we don’t heed the lessons of history and remain vigilant about it.
Elaboration: A historian has the ability to see events or progressions of events beyond one’s lifetime. He could compress thousands of years of history into one gigantic panoramic view. And what is particularly distressing to a historian is that that picture is familiar to him because it is happening now. Not everybody is a historian and most people have a very short memory. As humans, we have the same need, the same want, and ran amok by the same emotion. And when we are faced by the same challenges, our choices for a solution is indeed very limited given the same need, want and emotion. As we such, we keep on making the same choices over the same problems and this in turn produces events that warrant us to make the same choice over again and again. That is how history repeats itself. The only way, we could “break” this cycle is to learn from the lessons of the past.

06/27/04: Life is all about inches. Crawling forward inch by inch and fighting every inch of it. – Al Pacino in “Any Given Sunday”.
Elaboration: “Any Given Sunday” is a football movie starring Al Pacino. The quote is an analogy of life and the game of football.

06/28/04: Westerners and many other people who believes in Christianity or the likes always personify evil as in good and evil are two entities battling each other for dominance. The objective of one is the total annihilation of the other. In this kind of thinking, a person could actually be 100% good. What is puzzling here is that the other cannot exist without its opposite after its destruction. How can we know to savor “goodness” when we can no longer abhor evil? How could we value life if there is no death? Good and evil exist as one in everybody and not separate. It is a result of choice. Hence, evil cannot be destroyed but avoided or suppress. If evil were to be “vanquished”, the lesser good will become the next evil.
Elaboration: The underpinning of this thought is the ancient Chinese philosophy of Ying and Yang, the concept duality of nature wherein one contradicts the other and also needs the other to exist. It is futile to totally remove the other from existence, instead, it is worthwhile to accept its existence and make a choice.

06/28/04: Faith is the individual belief of the human spirituality while religion is the organize worship of such faith manipulated by a malevolent genius.
Elaboration: Religion is an organization complete with a hierarchy and a doctrine. Faith is simply believing.

06/28/04: We humans live in a culture of death. We define our existence based on our impending doom. It is funny that people lived to prepare for their inevitable death.
Elaboration: Some people are obsess with leaving a legacy of their existence and spend a lifetime achieving it while others are into worshipping a supreme deity in order to ensure they have a “nice” afterlife and spend every minute of their existence to attain it but what happened to living the “now”?

07/03/04: Who are we to determine the fate of another person? By firing someone, we take away their financial income, their food, their hope and happiness. However, if we do not exercise the power, we could end up at the disadvantageous end of the deal. It’s killed or be killed. Sad but no choice.
Elaboration: The hardest part of being a manager to me is firing people. It sucks but there is no way around it.

07/16/04: What is the value of infinity? If we could determine the value, then we could be gods! To our forefathers, hundred, thousand, millions, billions, and trillions are mind boggling and for all practical purpose then, equal to infinity. To us, those figures mean nothing. We aren’t going to be mind boggled at all. Infinity is a limit and a barrier. Putting a value to it meant that we have overcome a limit.
Elaboration: Infinity is a concept. It signifies that things are unreachable, things that are unfathomable. If we could mentally convince ourselves that it is reachable, is everything else impossible?

08/01/04: Don’t be afraid about the end of a chapter, there is always a next chapter. Don’t be afraid about the end of a story. There will always be a new story. Don’t be afraid about things coming to an end, there is still tomorrow. The sun still comes out tomorrow. There is still life tomorrow. There is still hope.
Elaboration: Sometimes we have a hard time facing the end be it in a relationship, a career, a project, or even a book. To the extent, we can’t see what is beyond the end and that we get afraid of the coming end and we tried to delay it but we had to realize that things do comes to an end and that there is life after “the end”. Just move on.

08/27/04: We can’t win everything nor we have to in order to be victorious. We just need to win the more important ones. We can’t have everything but we don’t need everything to be happy. We just had to have the most important things in life.
Elaboration: Sometimes we do things just for the sake of doing it without realizing that we don’t have to do everything to make us happy.

08/27/04: Money isn’t everything but it buys ALMOST EVERYTHING ELSE. That’s good enough for me.
Elaboration: The quote, “Money isn’t everything” is a good quote except that when it became an excuse for being “lazy”. Remember, money may not buy you everything but it does buy you the rest of the things that can be bought.

08/29/04: Don’t judge a book by its cover, judge it by its content. However, for a reader who haven’t read or seen the book, it’s the cover that entices them to read the book and judge them later.
Elaboration: In the end, presentations and first impressions do counts regardless what other people say.

08/30/04: The meaning of life:
1. Life ends and continues.
2. Life is everything that happens between birth and death.
3. Life is the one possibility to have a million more possibilities.
4. Life could be a meaningless 4 letter word or a vivid and lively 100 discs DVD or an interesting volume of books.
Elaboration: If you lay dying and suddenly a genie pops up from nowhere and wants to give you one last wish, what would be your wish?
09/03/04: I have a lot of teachers that taught me about knowledge and skills but only a handful of them that I consider my mentor that inspire me and taught me about life.
Elaboration: Once in a lifetime, there comes a person that teach you not only knowledge but also wisdom. Cherish it.

09/03/04: Even geniuses need an inspiration and a mentor.
Elaboration: Some people needed a guide to get going in the “right” path while others simply needed someone to point the way.

09/06/04: There is no crueler fate than a man with a broken will and has lost hope.

09/06/04: There are things that changes and there are things that doesn’t change at all. There are things that changes which you can’t do anything at all. There are still things that change which you can choose what it would be let alone choose not to.
Elaboration: Sometimes change happens when we least expected and we have no say at all but there are times when changes are laid before our eyes to choose. Make a choice.

09/17/04: Leaders are individuals who make ordinary people do extraordinary things, Andrew Grove
Elaboration: The classic definition of a leader, the ultimate motivator.

09/17/04: It is extremely important that you show some insensitivity to your past in order to show the proper respect for the future. Robert Goizueta
Elaboration: Sometimes, the past can be a burden especially a glorious past, for this “past” becomes a sort of a formula of success and henceforth, shapes our expectation, which in turn constrict our freedom of action to craft a “creative and effective solution” against future challenges that is totally different from anything in the past.

09/17/04: Indifference kills an organization by making it less susceptible to change and thus unable to adapt to its environment.
Elaboration: The theory of challenge and response of Arnold Toynbee states that civilizations that still exists up to this day and would continue to exist in the future were able to do so because these civilizations had an effective response to the challenges that threaten their survival. Individual indifference in my point of view tends to make us individually “numb” and shrugged off challenges that threatened our collective existence and this would in turn hamper our collective response which would eventually result in our demise.

10/23/04: The only thing that separates me from my glory, my success, my goal, my future is me.
Elaboration: I am my worst enemy.

10/23/04: There are many revolutions in history like the industrial revolution wherein technological breakthroughs comes in droves within a 50 to 70 years span. The developments afterwards are merely innovations. We are now seeing the end of a revolution that of the computing revolution. A new revolution has dawned and that is the genetic revolution. Elfren Cruz.
Elaboration: Well, this is the topic of my professor’s discussion during one Christmas party. He was talking about the world we’re living in from a historian and a businessman’s perspective. We are currently living in an exciting time, a world between two revolutions, the end of one and the beginning of another.

10/26/04: The best thing a friend or a sibling or a parent or a spouse can do to a person he/she loved and cared is to believe in the person even if the person doesn’t believe in himself or herself.

11/03/04: You can outwit a competitor but there will always be competition.
Elaboration: There are times when we so hate our competitor that would do everything to “demolish” our competitor but lest we forget, competition exists and will continue to exist even if you manage to run your competitor aground.

11/08/04: The system of checks and balance is never meant to be a replacement of morality but a reinforcement.
Elaboration: In reading the history of democracy, the reason that political thinkers of the time came up with the idea of checks and balance is not to replace public morality totally but to make sure that all those in power to conform to the establish public morality by having someone “checking” the other. It was never meant to replace public morality of the ruling elite much like in our case right now in the present.

11/16/04: I exist therefore I matter.
Elaboration: Rene Descartes has a famous conclusion from his mental exercise, “I think therefore I exist.” But my question is, “do we only live to exist?” This is not some theory on predestination wherein everybody has a role to play in this world. My thinking here is that, we exists and we should make the most out of it.

11/16/04: You are what you do.
Elaboration: Based on Jean Paul Sarte’s philosophy of Existentialism. Actions define the person.

11/29/04: A true great man doesn’t need fame. People just remember him for what he did.

12/21/04: History is about people correcting the mistakes of the past with blood to set a path for the ideal future. Are we going to make our children correct our faults with blood so as to have a future for themselves?

12/21/04: Mencius once said that the duty of man is “to carry the burden of society till their death”. I disagree. The burden is not till ones death but onto the next generation.

01/07/05: Choice is given by the one who has power to the one who has none –Merovingian, The Matrix Reloaded. Freedom is not the right to choose between the choice given to us instead Freedom is the right to create the choices we are going to choose from.

02/13/05: My view of the Phantom of the Opera. Within the depths of the human soul lurk the horrifying darkness and the seed of man’s eventual downfall. However, within the same core lies the eventual redemption and ultimate salvation of mankind.

07/19/05: Money is a terrible master but an excellent servant. PT Barnum.

01/24/06: Excerpts from I, Robot. “Ghost in a Machine”. Random segments of codes linking to form an unexpected protocol and programs. Why is it for some who are in the dark would remain in the dark while others would stick together? And there are others who would seek the light?
Elaboration: This is an excerpt from I, Robot the movie. Of course, the movie talks about sentient robots but I do wonder about the “sentience” in human setting. Makes me wonder, how come each human being similar be they are to each in terms of a possession of a brain would be so different in terms of individual thinking?

01/24/06: How much we got? The answer is not in the clock. The answer is NOT MUCH and that is why life is precious.

07/10/06: Diversity is the art of thinking independently together. Malcolm Forbes.
Elaboration: This is given to me by Professor Cruz.

07/10/06: Isaac Bashevis on being asked if he believed in freewill or predestination. “We have to believe in Freewill; we got no choice.” Quoted in Fadiman.
Elaboration: Again, from Professor Cruz.

09/04/06: Hardwork is ain’t enough to succeed nowadays. Inventiveness, shrewdness, and risk taking are as important. In the agricultural era, hardwork is the only prerequisite to success for one cannot have a good harvest without it. In the early industrial age, hardwork is also the sole requisite of success since demand is great and the supply little, ones income depended on how much one can produce. However, in the era of hyper competition, it is not enough that you can deliver, you also have to outwit your competition.
Elaboration: When I was younger, my parents would always extol the virtue of hardwork but there comes a point wherein one would realize that no matter how hard a person work, you’re not reaping the kind of reward you’re expecting and this is why.

11/20/06: The faith revolution of the 20th century. There was a time when human life was uncertain and man turned to religion to give them certainty. There was a time as our world grew, those uncertainty vanishes and we question the necessity of religions. It is believed that as our understanding grew further, logic dictates that religion would no longer be necessary. But the opposite happened. As science advances, religion strengthened. For humans no longer turn to religion for certainty, we turn them for answer to the question, why we are here? What is this all about?
Elaboration: It is an observation of mine. How come a person seeped in the knowledge of modern science that tends to question the existence of an all powerful deity would surrender to such a belief of its existence.
01/26/07: The Socialist me. I encountered a beggar yesterday cleaning my windshield as I was waiting for the traffic. His intention might be noble but he is dirtying my windshield and I turned on my wiper in response and it hit his hands. I immediately regretted doing that. Here he is trying to eck out an honest living despite his poverty. He could turn to a life of crime but he didn’t and here I am turning an honest guy down. If circumstances were different, he having a good education and a bright future, he wouldn’t be cleaning my windshield. I should be more tolerant the next time.
Elaboration: Never to put a good man down.
02/20/07: This terrifying world is not devoid of charms, of the morning that makes waking up worthwhile. WISLAWA SZYMBORSKA
Elaboration: From Prof Cruz
02/17/07: We are not the same persons this year as last, nor those we love. It is a happy chance if we, changing, continue to love a changed person. – Somerset Maugham
Elaboration: From Prof Cruz
02/21/07: A great many people think they are thinking when they are merely rearranging their prejudices – William James.
Elaboration: From Prof Cruz
03/25/07: Celebrate for a nanosecond then moved on. Michael Dell
Elaboration: Success is fleeting and so should the celebration.
03/25/07: This is only the first step of the marathon. Michael Dell
Elaboration: The story goes that one of Michael Dell’s manager successfully opened a factory in Malaysia and as a consequence, was celebrating his success. Michael Dell sent as a congratulatory gift to the guy, a pair of running shoe and extolled him that this is the first step of the marathon. I actually used this to extol my students in the special class to continue work on their paper and defend it in their OCE, pass OCE and graduate, which some 50% of them eventually did.
04/14/07: Know your limits but never be limited by your limits.
04/22/07: Those who cannot remember the past are condemned to repeat it. George Santayana
05/29/07: If you can’t find the book you wish to read, write it. Prof Cruz
06/12/07: “Why independence if the slaves of today will be the tyrants of tomorrow? And they would be without doubt, because he who loves tyranny submits to it.” Jose Rizal
Elaboration: From Prof Cruz
12/14/07: Only those who doesn’t possess power obey the rules set by those who possessed power.
Elaboration: Only the powerful set the rules, the rest just follows.
02/03/08: The world is dynamic. It’s constantly changing. There is no such thing as a status quo. For the moment a status quo is established, somebody is already working to overthrow it. People who are displaced by the new status quo, people who haven’t or never gained anything, people who are threatened by the new status quo and lastly people who wanted to grab more but couldn’t. They are the ones who drive change.
Elaboration: Ever wonder why the world is dynamic and change is the new reality. It is because of this.
There are two lasting bequest we can give to our children – one is roots, the other wings. A toast to all moms!
Elaboration: From Prof Cruz
For last year’s words belong to last year’s language, and next year’s words await another voice and to make an end is to make a new beginning. – TS Eliot
Elaboration: From Prof Cruz
Live your life with so much love in your heart that if by mistake, you were sent to hell, the devil himself would deliver you up to heaven. Paulo Coelho
Elaboration: From Prof Cruz
04/10/08: With money comes culture and taste.
Elaboration: There is no point in maintaining an acquired taste or culture if you have a hungry stomach.
05/11/08: Well behaved women seldom make history, that is according to Laurel Thatcher Ulrich. Well, I completely agree. It’s the slut and bitches that we remember in history!
Elaboration: “Well Behaved Women Seldom Make History” is actually a book written by Laurel Thatcher Ulrich, a book that I came across during one of my visits to the bookstore but never read. Anyway, in most times in history, for women to get what they want in a male dominated society, they either have to wear a man’s pant or they could get into another man’s pant…..
05/15/08: In a free economy, not only people are given a choice but there exists a plethora of choices; a competition of choices. For a choice to win in this competitive environment, it is necessary for it to offer the RIGHT product at the RIGHT price at the RIGHT time at the RIGHT buyer.
Elaboration: In business school, we are trained to look in terms of product offerings, quality, price, service offerings, etc but to a customer, they do not see product offerings or anything. All they see are choices; be it tall or short; green or blue; now or next week. It’s all about choices. And market competition is not about competition of the best product or the best priced but rather it is the competition for the “better” choice.
05/23/08: There is no such thing as public governance. There is only public and personal interest. It is only when public and personal interests are aligned that we’ll have public governance otherwise, we have tyranny.
Elaboration: Just look at the present government.
05/24/08: The true measure of success is not how much profit was made during the good times but rather on the conduct of facing the tough challenges during the worst of times.
Elaboration: Remember evolution and the survival of the fittest? It is always easy to succeed when all the ingredients of success is laid on your feet. To succeed in a challenging environment, now that’s different.
From Robert Guizeta: Opportunity……… Ours to sieze…….Ours to live…… and ours to defend or otherwise, ultimately, ours to lose.
06/23/08: The most resilient businesses aside from food and medicine are cosmetics, porn, and politics.
06/26/08: A lot of people think that the world misunderstood them or can’t understand them at all. They never realized that the world has no obligation to understand them much less the desire to understand them.
Elaboration: Once in a while you came across with people who poured out their problems in PUBLIC, thinking that their problem is the only problem that the world needs to know.
07/15/08: Every disease has a cure or can be cured sooner or later. Stupidity has none.
07/24/08: Though power corrupts, power belongs to those who know how to use them.
07/27/08: It takes love to get married but it takes patience and toleration to stay married.
08/05/08: History doesn’t repeat itself. It’s the fools that keep repeating history!
Elaboration: History is a concept, a frame of observation. It doesn’t have flesh. It cannot think. It cannot react or pro act hence, history never repeats itself. Human beings on the other hand are the actors of history. To blame a mere concept for the repeated failures in history is irresponsible. Human beings, especially the stupid ones; the fools, they are the ones that keep on repeating history again and again and again because they never learn.
08/05/08: It takes a fool to bring down an empire and several geniuses to prop it up.
From my brother:
Money can’t buy you love but love is miserable without money.
Elaboration: Who ever said living in a shanty is romantic?

PostScript. My new phone is the Iphone clone and the twin brother of the Giorgio Armani phone by Samsung, the Samsung SGH F480 and I’m looking forward to write down more thoughts with it.

Sunday, May 25, 2008

“INTJ”

INTJ; these are the 4 letters that I used to describe myself in my profile at one of the social networking sites. And for sometime already, the 4 letters, INTJ remains a mysterious acronym save for a query or two (which incidentally indicates the popularity of my profile in that social networking site). Anyway, my girlfriend, Katherine recently inquired about it and actually looked it up at Wikipedia to find out what INTJ is all about. INTJ is short for Introverted, iNtuitive, Thinking, Judgmental. It is one of the sixteen possible personality types proposed by Carl Gustav Jung and refined further by Katherine Cook Briggs and her daughter, Isabella Briggs Myers. Dr. David Keirsey, a renowned psychologist identifies INTJ as “The Mastermind” in his book, “Please Understand Me” (for some psychologist, instead of identifying INTJ’s as “The Mastermind”, they would refer INTJs as “The Scientist”). Based on my understanding, the 4 letters represents 4 dimensions or aspects of a personality and each dimension or aspect has two opposing styles. The first letter indicates the motivation behind the person. Is the person Introverted (I) or energized by the world inside one’s own head? Or is the person Extroverted (E) or energized by the outside world? The second letter in the 4 letter combination refers to how a person understand a given situation or problem or simply gather information from the outside world. A person could rely more on his/her Senses (S) or he or she would prefer to grasp it via Intuition (N) i.e., mental observation to discern pattern. In other words, does the person prefer abstract evidence (I) or the more concrete evidence (S)? The third dimension pertains to how would a person process the information and arrive at a decision. In this respect, a person could be rational and analytical and therefore, Thinking (T) or the person may try to get a “feel” for a resolution to a given situation such that Feeling (F) predominates. In short, is the person relying more on IQ to get to a decision and hence “Thinking” or is the person using EQ to arrive at a resolution and hence “Feeling”. Lastly, the last letter of the combo tells if a person is methodical and orderly in the execution of a decision and therefore would be Judgmental (J) in temper or would be spontaneous and flexible and therefore would be Perceptive (P). Of course, there is no such thing as a 100% introvert or extrovert since most people are in some ways affected by outside events albeit in varying degrees even if a person maybe an introvert hence, all people are neither extrovert nor introvert in the strictest sense of the word but lie somewhere in between the two extremes. Neither of course there is a person who wouldn’t rely and be affected by their senses in gathering information. Neither is there a human being whose purely logical and rational in its decision making without taking in some emotional consideration not unless one is a Vulcan (incidentally, for those who aren’t a “trekkie”, a Vulcan is a highly intelligent and rational pointed ear alien beings that is purely logical in its thinking and behavior with almost no emotion at all, just like Spock). So in effect, what the 4 dimensions are saying is that people tend to have one style dominate over the other instead of purely operating in one absolute behavioral style. So in short, an INTJ would be a person who is heavily influenced by ideas going on in his head and trust more on his intuition rather than his senses and tends to be rational and analytical in its decision with little care on the emotional outcome of a decision and tended to be methodical in doing things with some occasional spark of spontaneity. Now, with 4 dimensions or aspects and with two opposing styles per aspects, one gets 16 possible combinations. However, these 4 dimensions of a personality are not entirely independent aspects i.e., they’re not a simple combination of different traits. Instead, the 4 aspects interact to create the personality. For example, linking the second aspect regarding how a person understand the given situation or problem with the third aspect on how they come up with a solution would define whether such person is utilitarian in nature (get things done efficiently and therefore pragmatic) or cooperative (rely on teamwork). This according to Dr.Keirsey created four distinct temperaments, namely: Rationals (Strategic; i.e., see the big picture and develops a pragmatic plan), Artisans (Tactical; i.e., see the whole picture and improvise or expedite things along the way), Guardians (Logistical; i.e., see what needs to get things done and rely more on close coordination of people to achieve things), and Idealists (Diplomatic; i.e., keep everyone happy and not rocking the boat in order to get things done). As such, the interaction of these 4 personality dimensions tended to create a distinct “capability” for each. Take INTJ/Mastermind for instance, an INTJ is referred to as The Mastermind simply because they are good in “entailing” or contingency planning. The following are the 16 personalities along with their temperaments, description and capability:
1. Rationals
1.1. ENTJ – Extroverted iNtuitive Thinking Judgmental – “Field Marshal” – Mobilizing
1.2. INTJ – Introverted iNtuitive Thinking Judgmental – “Mastermind” – Entailing
1.3. INTP – Introverted iNtuitive Thinking Perceiving – “Architect” – Designing
1.4. ENTP – Extroverted iNtuitive Thinking Perceiving – “Inventor” – Devising
2. Artisans
2.1. ESTP – Extroverted Sensing Thinking Perceiving – “Promoter” – Persuading
2.2. ISTP – Introverted Sensing Thinking Perceiving – “Crafter” – Instrumenting
2.3. ESFP – Extroverted Sensing Feeling Perceiving – “Performer” – Demonstrating
2.4. ISFP – Introverted Sensing Feeling Perceiving – “Composer” – Synthesizing
3. Guardians
3.1. ESTJ – Extroverted Sensing Thinking Judgmental – “Supervisor” – Enforcing
3.2. ISTJ – Introverted Sensing Thinking Judgmental – “Inspector” – Certifying
3.3. ESFJ – Extroverted Sensing Feeling Judgmental – “Provider” – Supplying
3.4. ISFJ – Introverted Sensing Feeling Judgmental – “Protector” – Securing
4. Idealists
4.1. ENFJ – Extroverted iNtuitive Feeling Judgmental – “Teacher” – Educating
4.2. INFJ – Introverted iNtuitive Feeling Judgmental – “Counselor” – Guiding
4.3. ENFP – Extroverted iNtuitive Feeling Perceiving – “Champion” – Motivating
4.4. INFP – Introverted iNtuitive Feeling Perceiving – “Healer” – Conciliating
There is no such thing as a superior personality or an inferior personality. Each personality has its own strengths as well as its own weaknesses and liabilities. Rationals for example tends to have difficulty grasping (ok, more like question the logic or rationality) establish customs, rituals, and way of doing things not unless they subject it under the microscope. What is important here though (which is why I even bothered writing this article) is for the person to know who he/she is. As Socrates once put it, one must “Know Thyself”. If you don’t know who you are, what is the point of knowing everything else around you? I mean with knowing who you are, you’ll know what you want, what can do and why you want to live. Otherwise, one would just be simply “floating” around life rather than “living” life.
P.S. if you want to know your personality type, go to. http://www.personalityzone.com and take the KTS-II test.

Tuesday, March 25, 2008

OVERWHELMED

I am reading about histories lately for the past year or so, specifically about Chinese and Roman histories. Well, I did so because I’m a history enthusiast and my foreign travels during the past year or so allow me to purchase titles that I couldn’t find in the local bookstores. And so, it came to past that in my readings during the past year or so that I began to feel a sense of being overwhelmed by the sheer vastness of the subject matter. All along I thought I knew everything about there is to know about history (of China and Rome). For indeed I do, for a “layman”. My knowledge of history is in my assessment beyond the understanding of an ordinary “layman” or even an enthusiast. But as I dwelt more and more into my readings, I felt that I’m just skimming the surface of an unimaginably huge body of knowledge, which I never realized nor grasp before. Back in high school, I was already getting my hands on history books that are collecting dusts in the library so much so that the librarian would quip that “you’re literally the only one who opened those books and nobody else”. Those books are sleeping at the shelves since it was first bought! And every time I went to the library, the librarian would tried to “hide” from me or he would just get 1 or 2 titles that I requested and feigned that he couldn’t find the rest of the titles. Ha! It may come across as a puzzle to any ordinary layman and certainly my high school librarian as to why I kept on reading the same history but written by different authors. I mean history is history is history. It’s the past. One cannot change it simply by writing or reading it. Alexander the Great conquers Persia and Egypt and ruled the Mediterranean world as the Great King. Julius Caesar crossed the Rubicon and won the civil war against Pompey the Great and Qin Shih Huang Di unified all of China and ushered the imperial era in Chinese history. No matter what history book you read, no matter who is the author, history is the same. What then was my purpose in reading the same history again and again? Was I looking for something? Perhaps. In all honesty, I myself never quite knew what was I looking for back then. It is only fairly recent that I finally understood as to why. History is the study of humanity; humanity’s behavior under a set condition; humanity’s reaction to a stimulus either a threat or an opportunity and humanity as a collective whole struggling to survive and to continue surviving. Most people see history as “what happened” in the past but as I come to understand, history is not just about “what happened”. History is also about “how it happened” and “why it happened” and by extension, “should it happened at all”. Knowing “what happened” leads one to search for “who did it” and “what did they do” and “when it did happen”. And in the end, we end up with names of dead people that we find burdensome to memorize; that we don’t know nor care to know. Studying history as “how it happened”, “why it happened”, and “should it happened” takes a great deal more than just simply memorizing names and deeds. It involves analysis and plain simple, common sense to figure things out. Knowing “how it happened”, “why it happened” and “should it happen” would lead to fundamental truths about humanity: that humanity would do things based on “reason” and “logic”; that humanity would engage in intricate complex actions just to pursue an unbelievably simple motive; and that humanity tends to “complicate” an otherwise simple thing and therefore render solutions to problems next to impossible. Talk about ingenuity in being stupid.

Sunday, February 17, 2008

Sonnet 43

By Elizabeth Barrett Browning

How do I love thee? Let me count the ways.
I love thee to the depth and breadth and height
My soul can reach, when feeling out of sight
For the ends of Being and ideal Grace.
I love thee to the level of everyday's
Most quiet need, by sun and candle-light.
I love thee freely, as men strive for Right;
I love thee purely, as they turn from Praise.
I love thee with the passion put to use
In my old griefs, and with my childhood's faith.
I love thee with a love I seemed to lose
With my lost saints, -I love thee with the breath,
Smiles, tears, of all my life! - and, if God choose,
I shall but love thee better after death.

XI

By Emily Dickinson

I've got an arrow here;
Loving the hand that sent it,
I the dart revere.
Fell, they will say, in 'skirmish'!
Vanquished, my soul will know,
By but a simple arrow
Sped by an archer's bow.

Be My Valentines, For I……

Be my valentines, for I
Each day have thought of you.

My whole life couldn’t manage what
Your ready smile can do,

Vanquishing my loneliness
As though all light were new.
Let me be your valentine
Even as you’re mine,
Needing what I have to give
That each might each define
In friendship and in harmony,
Now you, now I the melody,
Each helping each to shine.

Tuesday, February 12, 2008

Things I Love About You

By Anthony West

Your eyes
Which first held me captivated
Where I stood.
Your smile
To dazzle the sun
And warm every corner of my soul.
Your voice
Like a sparkling mountain stream
Which flows into my heart.
Your walk
And the way your gracefulness
Takes my breath away.
Your hair
About which I dreamed
Cascading into my face
As you leaned over me.
Your hands
Whose caress I crave
To hold my face
In their tenderness.
Your arms
I longed to have around my neck
As you pull me close
To your warmth.
Most of all
Everything you are
Changed the way I feel about my life.
I Love You.

Monday, December 03, 2007

I Love Thee

by Eliza Acton

I love thee, as I love the calm
Of sweet, star – lighted hours!
I love thee, as I love the balm
Of early jes’min flow’rs.
I love thee, as I love the last
Rich smile of the fading day,
Which lingereth, like the look we cast,
On rapture that pass’d away.
I love thee as I love the tone
Of some soft – breathing flute
Whose soul is wak’d for me alone,
When all beside is mute.
I love thee as I love the first
Young violet of the spring;
Or the pale lily, April - nurs’d,
To scented blooming.
I love thee, as I love the full,
Clear gushings of song,
Which lonely – sad – and beautiful –
At night – fall floats along,
Pour’d by the bul – bul forth to greet
The hours of rest and dew;
When melody and moonlight meet
To blend their charm, and hue.
I love thee, as the glad bird loves
The freedom of its wings,
On which it delightedly moves,
In wildest wandering.
I love thee as I love the swell,
And hush, of some low strain,
Which bringeth, by its gentle spell,
The past of life again.
Such is the feeling from thee
Nought earthly can allure:
‘Tis ever link’d to all I see
Of gifted – high – and pure!

Saturday, December 01, 2007

Sonnet CXVI

By William Shakespeare

Let me not to the marriage of true minds
Admit impediments; Love is not love
Which alters when it alteration finds,
Or bends with the remover to remove;
O, no, it is an ever fixed mark,
That looks on tempests and is never shaken;
It is the star to every wand’ring bark,
Whose worth’s unknown, although his height be taken.
Love’s not Time’s fool, though rosy lips and cheeks
Within his bending sickle’s compass come;
Love alters not with his brief hours and weeks,
But bears it out to the edge of doom.
If this be error and upon me proved,
I never writ, nor no man ever loved.

Tuesday, November 27, 2007

My Love is Like A Red Rose

By Robert Burns

O’ my luve is like a red, red rose,
That’s newly sprung in June;
My love is like the melodie,
That’s sweetly played in tune.
As fair art thou, my bonny lass,
So deep in luve am I;
And I will luve thee still, my dear,
Till a’ the seas gang dry.
Till a’ the seas gang dry, my dear,
And the rocks melts wi’ the sun;
I will luve thee still, my dear,
While the sands o’ life shall run.
And fare thee weel, my only love!
And fare the weel, awhile!
And I will come again, my love,
Though it were ten thousand mile.

Saturday, November 24, 2007

Heartprints By The Sea

By Hope

I was lost for words,
Where can they be found?
As I strolled by the shore,
I took a look around.
Sitting here all alone,
As I gaze the ocean blue.
Looking at the far horizon,
I was thinking of you.
Words left unspoken,
Since we are miles apart.
So I wrote upon the sand,
Feelings of my heart.
Words I have written,
In heartprints by the sea.
As ocean waves whisper,
Love flows endlessly.

Monday, November 19, 2007

A Sonnet of the Moon

by Charles Best

Look how the pale queen of the silent night
Doth cause the ocean to attend upon her,
And he, as long as she is in his sight,
With her full tide is ready her to honor.
But when the silver waggon of the moon
Is mounted up so high he cannot follow,
The sea calls home his crystal waves to moan,
And with low ebb doth manifest his sorrow.
So you that are the sovereign of my heart
Have all my joys attending on your will;
My joys low-ebbing when you do depart,
When you return their tide my heart doth fill.
So as you come and as you do depart,
Joys ebb and flow within my tender heart.

Friday, November 09, 2007

Sonnet XVIII

by William Shakespeare
Shall I compare thee to a summer’s day?
Thou art more lovely and more temperate;
Rough winds do shake the darling buds of May,
And summer’s lease hath all too short a date;
Sometime too hot the eye of heaven shines,
And often is his gold complexion dimmed;
And every fair from fair sometimes decline,
By chance or nature’s changing course untrimmed;
But thy eternal summer shall not fade,
Nor lose possession of that fair thou ow’st;
Nor shall death brag thou wander’st in his shade,
When in eternal lines to time thou grow’st;
So long as men can breathe, or eyes can see,
So long lives this, and this gives life to thee.

Saturday, October 27, 2007

I LOOKED HERE

By Stephen Crane
I looked here;
I looked there;
Nowhere could I see my love.
And – this time –
She was in my heart.
Truly, then, I have no complaint,
For though she be fair and fairer,
She is none so fair as she
In my heart.

Tuesday, October 16, 2007

THE SECRET TO SUCCESS

One day, a few months back, my driver walk up to me and said that he is resigning from his job because he plans to put up his own business with his wife. Specifically, he was planning to set up a “lugawan” or a small food stall at his parent’s place which happens to be conveniently near a public market. Of course, I allowed him to resign and even gave him my blessing. Fast forward to last month, my driver came back to me and asked if he could return to work for me this November. It is not that his business failed. Conversely, his business is quite brisk and is doing extremely well. The problem is he is tired of it! He complains that he works everyday even on Sundays and holidays when business is much more brisk. He gets up early in the morning usually 4 am and cooks the food to be served that morning and closes late at night and went to bed even much later because he has to clean up the place and wash the utensils as well as prepare the ingredients for tomorrow. He told me that he preferred to be a driver than an entrepreneur. While his income as a driver is meager, he only works from 8 till 5 every day from Monday to Saturday and could have a good night rest plus he is off during Sundays and holidays. And he doesn’t have to worry about anything at all. Upon hearing what he said, I tried very hard to suppress my laugh. I’ve heard of business going belly up because of poor sales. I’ve heard of business folding up because of short funding. I’ve also heard of business shutting down its door because of poor rate of return on investment or low profitability but I’ve never heard of business closing down because of TOO MANY WORK. This is the first time I’ve heard that. Coincidentally, one of new clients who used to be a driver of one of my existing clients is also complaining very much the same thing as my ex – driver (who by the way will be reinstated). Unlike my driver, this new client of mine is not planning to shutter down anytime soon. It is not that both of them had no help at all in their businesses. They do hire some helpers but like many start up entrepreneurs, they do most of the jobs themselves. In fact, they have to go to the distance and cover the short comings of their staff when the going gets tough. They have to work doubly hard just to survive, prosper and grow. And these are the things that you wouldn’t learn in business school. Hardwork, perseverance, patience, and keen observation and learning (of the trade). More than just business plans and hypothetical business models, these values are equally crucial to the success of the firm be it a small “lugawan” or a manufacturing plant. And this is the reason why some aren’t cut out to be entrepreneurs. It is not that they’re lazy or anything. It’s just they don’t have all the values necessary to make it in business even if they have all the funds they could get their hands on. Incidentally, I remembered a story, a Chinese folklore I read in a newspaper years ago about the “secret of success”. There is this poor young farmer once who envied his rich merchant neighbor. One day, he got the courage to ask his neighbor about the secret of his success. And to which the neighbor replied, “It’s actually quite simply.” “I steal, I grab, I cheat, and I lied” was the answer the young farmer got from his neighbor and instantly, his eyes lit and a devilish smile came to him. And so, in the next few years, the once poor farmer grew rich, filthy rich, richer than a king and he did so by steal, grab, cheat, and lie. Until one day, the long arm of the law catches up with him and he went away for a long time. During his incarceration, he began to search for the reason for his failed lot and came to conclusion that he has his neighbor to blame for all the ills he has now for wasn’t his neighbor who told him to steal, grab, cheat, and lie in order to succeed?” With this in mind, the farmer vowed revenge when he got out of prison. And true enough, on the day, he was set free. He went straight to his old neighbor to settle some old score. The rich merchant neighbor was actually quite surprised to his old neighbor coming to see him after all this time and inquired as to latter’s business with him. The farmer then told the rich merchant that he came to settle an old score with the merchant for giving him false advice. Surprised, the merchant asked him what advice did he given to the poor farmer then and why is it false. To which, the farmer turned robber replied, “you advice me that in order to get rich, I had to steal, grab, cheat, and lie which I did and looked what happened to me?” “I ended up in jail.” “Now, tell me that wasn’t a false advice you gave me.” The merchant laughed upon hearing what the poor farmer said. Seeing this, the farmer got angrier and demanded an explanation as to why the merchant was laughing. The merchant then replied that it’s true that he did advice the farmer to steal, grab, cheat, and lie but the latter totally misunderstood him. The merchant explains that, “I didn’t give you a false advice at all for I myself practice what I’ve preached.” “I steal alright but what I’d steal is time itself. I woke up early in the morning and opened shop early while my competitors are still sleeping in order to get the early shoppers. I closed late at night when most of my competitors have already closed their stores so I can sell to the late shoppers.” “I do grab because I grab every opportunity that comes in my way whilst my competitors would probably give it up as a nuisance.” “And yes, I cheated.” “I cheated my competitors by opening my store at a better location, by offering better service and better products at lower prices. I essentially didn’t play “fair” with my competitors.” “And lastly, I’m guilty of lying for I lied to my customers.” “I told them that I cannot do what they requested and almost always manages to surprise them by surpassing their expectations. I under promise and over deliver to my customers.” “And that my friend is the secret to success, which are not secrets at all but basically one can manage to “learn” those things if he has hardwork, perseverance, patience, and keen observation and learning of the tricks of the trade.” And then, the farmer blushed in shame.

Sunday, October 14, 2007

WHAT TO DO WHEN VISITING A CHINESE TRADE FAIR: A GUIDE FOR THE CLUELESS

I was in China last May 20 – 24 visiting an industry trade fair/convention in Guangzhou (the Westernized name is Canton from which the famous Pancit Canton came from), Guangdong province bordering Hong Kong. It was my second time to visit Guangzhou with the first one sometime like 5 – 7 years ago. As it is now, I was visiting a trade fair back then, specifically, the twice a year Guangzhou Trade Fair (the Spring Fair in April and the Autumn Fair in October). The Guangzhou Trade Fair is China’s first, the longest – running, the most complete, and the mother – of – all trade fairs and although there are numerous trade fairs being conducted in China annually (one of which I visited recently), still nothing comes close to the Guangzhou Trade Fair not even Shanghai, which is fast becoming a venue of choice for Trade Fair/Convention hosting. Although strictly speaking, there is no “rules” in visiting China’s trade fairs nor was China’s trade fairs any different from trade fairs conducted by other countries but there are some nuances that a novice should understand and consider.
Guangzhou
Guangzhou romanticized as Canton by Westerners is the first region in China to be opened up by the current government to foreigners and foreign investments. It is China’s or probably the world’s first Free Port Area/ Special Economic Zone. As such, Guangzhou has a high degree of urbanization. At first look, Guangzhou looks very much like Hong Kong in terms of urban planning and architectural style but with the exception that its roads are cluttered with elevated highways and overpasses much like any major American cities. Compared to Shanghai though, Guangzhou is so last century. Though Guangzhou has its share of skyscrapers, none of them surpasses Shanghai’s skyscrapers in size and majesty. Furthermore, most of the buildings are pretty “old” in Guangzhou with many built in the late 80s to the early 90s. There are numerous attractions in Guangzhou, mostly historical places like ancient temples and pagodas, revolutionary shrines (Guangzhou is the locus of the 1911 Chinese revolution and the seat of the Nationalist government during the Warlord Era) and also, The Tombs of the Yueh Kings ( the Yueh Kingdom is a minority tribal monarchy established during the Han dynasty circa 200BC). In spite of the numerous attractions, it is pretty doubtful that anybody would be able to find time to visit all those places and attractions during Trade Fairs considering that everybody would be busy attending the Trade Fairs. While it is not a requirement to join a tour group in order to visit a trade fair in Guangzhou, it is highly advisable to do so. For one, the trade exhibition halls are located in the suburbs and rather difficult and expensive to get there by yourself. Besides, with the huge volume of people visiting the trade fairs, getting a transportation out of the Trade Hall is a very serious hassle. Furthermore, hotels in Guangzhou are always fully booked during trade fairs and the rates are usually double than the standard rates. By booking a tour group, one eliminates the hassle of finding a place to stay in Guangzhou as well as locking in a “suitable” hotel rate plus transportation.
Trade and Exhibition Hall
When I first visited Guangzhou, the Guangzhou Trade Fair is housed in 2 separate huge buildings just outside the city proper. In my recent trip however, the Trade and Exhibition Hall is now located in Pazhou, 1½ hour bus ride from Guangzhou. The Pazhou Trade Hall is actually new with the second phase of construction nearing completion. The Trade Hall looks like a huge elliptical tunnel lying on its belly and is made of glass and steel. It is a 3 storey structure. The phase 1 hall is about 1½ - 2 times the size of SM Mall of Asia and with the completion of the second phase structure; one would be looking at a complex that is 3 – 4 times the size of SM Mall of Asia. Simply huge. Even with it’s behemoth size, the Pazhou Trade Hall is actually quite visitor friendly much unlike the old trade hall in my previous visit for the former has a lot of benches in its lobby for resting as well as several VIP lounges (free passes to the VIP lounges are given to visitors entitling them an hour or two of use). In the “old” trade hall, there were no benches to speak of and during lunchtime, it was a common sight to see bodies, warm bodies (mostly males) “littered” the lobby floor with most of them sitting upright with legs crossed and some even lying on the floor taking a nap. This is because the “best seats” of the house are all taken by then. By “best seats”, I’m referring to the floor space near the walls where one could press his/her tired backs against the walls and rest. In additions to the presence of benches in the new Pazhou Trade Hall, the new trade hall has a lot of decent dining areas not found in the old trade hall. Incidentally, I still vividly remember my first visit when my friend and tour buddy took me to this food stand inside the old trade hall. The queue was quite long (and is still is as of now) but the cost was quite cheap, around 15 – 20 RMB (more or less 100 pesos). For that price, one would get a 3 – viand rice topping with one viand stack side by side to each other in a styropor lunch box and a can of soda and nothing else. By nothing else, I meant that there is no table or chair available for you to eat your food. So my friend and I ate our lunch while standing with one hand carrying the lunch box and the other hand scooping the food with a plastic spoon and our can of soda on the floor in between our legs (I saw some ladies doing the same and there are some couples who take turn eating with the other holding the sodas and his/her meal box while the other eats). Now, if one thinks that this is nothing to fuss about. Well, imagine this. You’re eating a food that has a “curious” taste (a mixture of rice and 3 viands stacked side by side one to the other along with their sauces) while standing………… beside a foreigner whose food aroma and body odor tended to totally mask the “curious” taste of the food you eat. Talk about the “best” food experience one could have in his lifetime! And so, it is really a great relief to know that the new trade hall has a better dining facility than the old one. And though they still serve the rice with 3 viand combo that has a “curious” taste, it is heartening to know that one has an even greater food choices at the new trade hall. As a matter of fact, I had lamb chops with rice for lunch on my first day of the latest trip of mine. Besides, there is always McDonald’s. Thank God for McDo! Be warned however, to take your lunches early, preferably sometime around 11am. This is because of the huge volume of visitors to the place and all of them tend to take their lunch at the same time around noon, that is if you want to avoid eating while standing up beside a foreigner ………
Attire and Accessories
Strictly speaking, there is no dress code during the trade fair and one can actually wear casual clothing to the trade fair but then again, this is a business meeting and in a business meeting, etiquettes needed to be observed. Chinese businesses are known to be formal hence wearing formal clothing do actually help in the negotiations and transactions. It is a known fact that some Chinese sellers tended to ignore “informally” dressed buyers not unless of course, you are an American or a European. Well, of course, one doesn’t have to dress formal wear to the hilt. One can actually wear a pair of denim pants with a matching long sleeves polo and a pair of rubber shoes as long as he wears a business coat or a blazer on top of his shirt with ties being optional, which I did (ladies can wear pants but again it should look formal). The choice of shoes is very, very critical not because of etiquette concerns but rather due to practical needs. Imagine walking thousands of square meters of floor area for 8 hours straight for 3 days with a leather shoe, at the end of the day, your feet would be killing you. I know because it did happen to me on my first visit. This is the reason why I wore a soft “walking” shoe on my recent visit. Now, if one thinks that they can take the punishment of walking around with a leather shoe or in a 3 inch heels, well, be my guess but consider yourself warned. One of the most important accessories that a visitor to a Chinese Trade fair should be bringing is an empty luggage bag with rollers. This is because of the sheer number of exhibitors on display (there are hundreds if not thousands of them there), one would probably end up with literally hundreds of brochure. Imagine carrying all those brochures while walking on a leather shoe. Don’t worry however, if one “forgets” to bring a luggage bag with rollers for it is available for sale at the trade fair hall itself. Another important accessory that one shouldn’t forget to bring during the trade fair is that of one’s calling card. Well, you could always print out your calling card right on the spot at the trade hall but it is not only expensive but murderously expensive. And don’t just bring one calling card. Bring 2 – 3 boxes of it (assuming that each box contains 100 calling cards).
Scheduling the Trade Fair Tour
Trade Fairs in China usually started around 10am (or was it 9am?) and ends around 5pm. The trade fairs in China usually lasts for four days to a week but for the Spring or Autumn Guangzhou Trade Fair, the entire fair is about two weeks separated into two main events each with 4 days of exhibition time with a 3 – 4 days break in between events. However, when you joined a tour group, you are usually given three days to visit the Trade Fair and quite frankly that is enough time for someone to tour the trade fair. Actually, one can finish “walking” through the entire trade fair in a day if one has a strong calf muscle. But then again, trade fairs were never an exercise of the calf muscle. What is the point of going to trade fair and do just walking without examining the wares and products on display, inquiring about the price, and trying to negotiate a “mutually advantageous” deal even if one is just simply “looking”? The “deal” about trade fairs is to look for possible items for trade and as such one doesn’t simply “walk” but also “look” around, analyze, and “talk”. And this is why one needs to schedule their tour of the trade fair because if one is going to simply looked into every stalls and booth in search of a “vague” deal, then at the end of the day, one wouldn’t find anything at all and it would be a big waste of time plus a sore foot that is going to kill you. The first thing to do before one even consider joining a tour group to a Chinese Trade Fair is to set an objective on what one would like to look for (raw materials, finish products, foodstuffs, etc). After that, look for the appropriate trade fair to join. Again, there are many trade fairs in China and most of them are timed near the Guangzhou Trade Fairs. Once you gotten cleared that, schedule your visit. My advice is that on the first day of the trade fair tour is to visit the section of the trade fair that interest you the most or the section that offers the products that you are looking (as set in your objective). Don’t hurry. Take a leisurely walk down that section on the first day. On second day, continue the “walk” of the first day if you haven’t finished it and began “exploring” other sections after you have done with the previous section. Again, don’t hurry, take your time. If you can’t finish on that day, continue on the next day. Now, if you fail to cover the entire trade hall on the three days allotted to you, don’t feel bad because you already covered the most important parts of the tour already.
Bargaining and Negotiating
If you are looking for the proverbial dirt cheap Chinese products that is on sale in 168 mall, well, you are looking in the wrong place because you can’t find any of that in any Chinese trade fairs. The participants in the Chinese trade fairs are usually companies that has export license. And a prerequisite of getting an export license in China is product quality assurance although there are some companies that could export their products out of China even without a license. There are 3 – 4 price/quality levels in China. The first price/quality level is the domestic quality level. This is the cheapest and yet the worst of all product quality levels that China has to offer and they are usually sold locally (although some manage to export it). This is because consumerism or consumer welfare advocacy in China is still in its infancy. And because of intense domestic competition, price has becomes the primary focus of most manufacturers. This in turn led to the subordination of product quality to a company’s pricing policies. The second price/quality level is the export quality level. By export quality, the standards are usually at par with other Asian export qualities. Prices of this quality level are of course higher than the domestic quality level but they are at the lower end of the price range of that comparable Asian export product. The third and fourth price/quality levels are those of Western and/or European quality levels. These are the products that meet the stringent standards of Western countries like the US and the EU. Their prices are of course the most expensive of all the Chinese products but are comparatively cheaper than similar EU or US counterpart. Usually, what is on display in the trade fairs are the second to fourth price/quality level products. One cannot see any dirt cheap domestic quality level products on display during the trade fairs. During the negotiations, Chinese sellers usually offered their best quality and their “best” price and that is usually where the price haggling starts. It is a common tactic among Chinese sellers to offer their best quality product first and upon intense haggling would substitute their best quality product with those of the secondary quality products (the third or second price/quality level) just to capture the deal at the desired price of the buyers and further haggling would result to substitution of a lesser quality products (usually the second price/quality level, rarely would this companies offer the domestic quality level on the world market especially nowadays). This is because Chinese businessmen subscribe to the motto, “one class of product, one class of price.” You pay more, you can better quality product. You pay less, you get less also. In short, you get what you paid for. Therefore, it is imperative to keep an eye on their product quality offering and not to solely focus on bargaining or getting the lowest price possible. It is advisable that while negotiating for the price, one constantly “reminded” them of the “desired” quality of the product in question. Never assume anything. Of course, it is possible to get a great product at a bargain but such are few and it takes a person of experience in the trade to identify one. Conversely, there are also high priced products that have a “lousy” quality. And the best way to avoid such a trap is to inquire about the brand, the corporate history (which is why brochures are important), and if possible, their client list (if they’re willing to divulge at all). One more thing about negotiating during the Chinese Trade Fair is that most businesses there are after the big purchase order. Chinese businesses are basically volume driven. The minimum these businessmen are willing to “discuss” about is a volume that will fill one 20 – footer container van be it just one machine or 1 million pieces of paper clips. Less than that volume, chances are they’ll ignore you if not dismiss you outright. By contrast, if you’re buying “a lot” (as in more than 1 container van), you can negotiate for a volume discount which they’ll be “happy” to oblige but watch out for quality. A trick during the negotiation is to inquire if the seller has available stocks or inventory of the item you want to purchase at the desired quality. This is because one can usually get a discount from the seller wanting to “get rid” of their “excess” inventories. Again, watch out for quality. Prices are usually quoted in terms of FOB (Freight On Board; sellers pays for the transportation of goods to the port of origin plus the loading costs, buyers pays for the freight costs, marine insurance costs, unloading costs at the port of destination, taxes plus transportation to the end destination). One should be very wary of these quotes however. Because one may find out rather belatedly that by adding the freight charges and taxes, the costs of the product in question would not only be “less profitable” but also “uncompetitive” at all. Therefore, it is highly advisable to negotiate price based on CIF (Cost, Freight, and Insurance; sellers pay for the transport costs to the port of origin, the loading costs, the freight costs, and the marine insurance as well; the buyers on the other hand shoulders the handling cost at the port of destination, the unloading and transport charges plus taxes). Now, if one is not really sure of the product in question and is hesitant in committing a large purchase order, well, ask for a sample or samples and they’ll be willing to oblige. Or if one is in a “hurry to buy”, one can always request for a plant visit of the said seller if the site is nearby and they’re willing to take you to it (by that point, the seller would be gracious enough to even treat you to lunch or dinner during the plant visit). In a Chinese trade fair, language was never an obstacle to a negotiation. In my first visit to Guangzhou, very, very few of the sellers could speak English. The few who can speak at that time, majority of them only speaks basic English. But again, as I said, language was never a problem for I saw an Indian national negotiating with a Chinese seller through a calculator and they still were able to close a deal. Nowadays, most Chinese companies hire Chinese graduates major in foreign language usually English and Japanese and hence, language is no longer a problem but just in case, if one encounters a “language problem”. Well, there is always the calculator.
Safety and Security in the Trade Hall
Security in the Trade Hall is quite strict with metal detectors in strategic locations and security personnel all over the place. However, due to the sheer number of visitors to the place, there are instances that petty thieves and hawkers were able to get in. Some hawkers were even brazen enough to occupy an empty booth and posed as a legitimate seller and sell their wares. The only way to distinguish them from the real sellers is that they are willing to sell you by pieces instead of by bulk as the usual practice of the real sellers. So, it is prudent only that one is careful and possesses some practical “street smartness” inside the Trade Hall. By far, the most number of “unwanted intruders” in the Trade Hall are the pamphlet or leaflet or flyer distributors advertising a local dining restaurant, local products, etc. Unless one is overburdened with brochures, getting one of the flyers maybe “informative”, who knows, you might get a good bargain.
List of Trade Fairs and How to Get an Invitation
In order to find out which trade fair to attend in China as well as get an invitation to the trade fairs, visit the Chinese embassy. They are more than willing to give you an invitation for free. An invitation letter however is not a visa and you still have to apply for it once you decided to go.
Tour Guides
If you happen to join a tour group and is handled by a Chinese tour guide during the trip, beware of his/her money making schemes and antics. The most common schemes are bringing the tour group to a store usually a Jade store or a Tea store or a Chinese medicinal herb store. Another scheme would be bringing you to a river cruise down the Chu Jiang river, over priced you, and let you stayed at the bow of the boat and let you get a lot of “fresh air”.
By The Way…
The next Guangzhou Trade Fair, the Autumn edition will begin in October 17 and will most likely finish by end October.

Wednesday, September 26, 2007

THE COMING COLLAPSE?

Sometime a month ago, my mentor wrote in his column about the impending burst of China’s asset bubble. At first glance, one would think that such an article are but one of the many China bashing articles that is popping out lately in the press but on a closer reading, one would find out that his analysis (which he got from a broker friend of his) are quite true and right on the bull’s eye. His foremost thesis is that China’s stock prices, which is a proxy for the general asset prices in China is defying gravity. Whereas the global stock market is reeling from the unraveling of the US subprime debt market, China’s stock prices continue to grow to unprecedented heights. And what make this explosive growth trend quite worrisome is that the assets are very much overvalued with some stocks commanding prices of 20 – 50 times their projected 2007 earnings compared to the typical price – earning ratio of a stock is around 12 – 15 times their projected income for the year. An inflated PE ratio signifies that intense speculations are in the works. Of course, speculations are part and parcel of any trading activities and one cannot really remove it totally. Speculation exists because there is an expectation of getting a better price from one’s asset holdings vis – a – vis from the current bid price. Therefore, because of this expectation, people hold onto their assets until the current bid prices raises to match their price expectation. Speculation becomes detrimental only when the asset owner’s price expectation becomes unreasonably high to such an extent that current market demand cannot further digest such exorbitant price. Put it in another way, if a significant percentage let us say 30 – 50% of the asset price is based on pure speculation as in there is no underlying fundamentals to back the price (the value or the worth of an asset doesn’t justify the price), then the price becomes highly unstable for it could collapse anytime at the slightest provocation just like soap bubble that continues to rise but is easily burst at the slightest touch. Prices would finally fall when the asset owners perceived that their price expectations can no longer be realize because the expected demand for their assets do not exists due to that the assets become too expensive already and they began to sell their assets, “trying to cash in” while the prices are still high. Now, if they are only seller in the market and everybody else is either buying or even waiting, it’s not a problem. However, it becomes a problem or more appropriately a crisis when everybody else began to sell and this would degenerate into a panic – selling. Now if just everybody else in the market is selling without regards to their profit or loss and nobody is buying, then we have a stampede and prices will collapse way below their fair market value. And it is this scenario which we refer to as “the bursting of the asset bubble”. Going back to the present day China, signs of an asset bubble are getting obvious. Aside from the inflated stock prices, one can also see the numerous glittering sky scrapers, the new and trendy apartment buildings in the major city centers that remained empty and unoccupied up to now. That’s not all, the explosion of new factories and new manufacturing facilities all over the country added productive capacities in their respective industries in large increments. And these newfound capacities are not backed by real demand but fuelled by easy credit and the perception that good times would last forever. However, technically speaking though, these “over investments” in assets though pointing to a possible formation of an asset bubble wouldn’t be really be considered threatening or problematic as long as the underlying “value” of the assets “could still justify” the hefty price tag. There are signs however in China that shows that asset prices are getting unstable i.e., it might collapse anytime. In Chinese cities, urban dwellers are beginning to complain loudly about stratospheric housing prices prompting government intervention. Furthermore, rate of return on investments of most Chinese companies are falling and some steeply in the last year or so. This is because of chronic over – capacities due to over investments in factories. Companies facing high fixed costs due to amortization needs would most likely shade the prices of their products just in order to incur sales and hopefully break – even. This would in turn lead to a vicious cycle of price undercutting among competition which in turn reduces profitability, and eventually, lowers the rate of return in investments. Due to this development, the Chinese government has now implementing curbs on borrowing to certain sectors of the economy as well as raising interest rates on loans. Higher interest rates tend to deter potential investments especially when the expected return of such investment cannot cover the cost of borrowing to finance the investment. Beijing is hoping that the series of economic measures would be sufficient to “neutralize” the potential threats to the continuous economic growth. In addition to that, recent developments are also threatening asset price stability in China. One such development is in the export front which up to now is China’s main engine of growth. The product quality scare though has negligible effect on the long run is likely to cause a dent in China’s sterling export in the short term. The numerous limits imposed on Chinese exports by EU and other countries. Couple this with the slowing of the US economy due to the credit crisis, China’s export would likely suffer and this would only aggravate the over capacities experienced in many industries in China. Aside from that, government investments in fixed assets such as roads, harbor, ports, airports, etc. are likely to slow down as well given the completion of the construction for the Beijing Olympic Games which is one of the largest public investments made by the government. Without government money to fuel domestic demand, there will be no alternative way out for companies facing challenges on the export front. Hence, the likelihood of an asset bubble and it’s possible bursting especially in 2008 right after the Beijing Olympics according to my mentor. Probably, this is because the Chinese government would do everything it could to present “a prosperous image to the outside world” during the Games and an economic meltdown isn’t exactly showing “a prosperous image” but the story would be different after the Games. Whether or not the economic meltdown would occur as perceived, the real question that one has to answer is what would happen next if China collapses? Well, going back to history particularly to China during the 80s and early 90s, in which China received a trade embargo after the Tienanmen Crackdown. At that time, the economy is experiencing double digit inflations. Bankruptcies was also rampant as some financially weak companies facing a crunch on their cash flow due to lower ROE fails to pay back their loans. This in turn led to the banking system saddling on a huge bad loans. A particular problem that crop up during the 1980 – 1990 economic slowdown was the Triangular Debt Problem. The triangular debt problem came to fore because the State Owned Enterprises (SOE) couldn’t pay back their loans extended to them by State Owned Financial Institutions, which in turn sourced their funds from government particularly local governments. The governments in turn owed the SOE in the form of advances from capital investments in order to fund other fixed asset investments. The result is a huge financial mess. What China did back then to solve the problem was to separate the government from businesses by handing the management of SOE and SOFI over to professional managers instead to government cadres. The government also furthermore liberalizes the economy, privatizing many SOE and allowing foreign investors into China as well as encouraging local entrepreneurs to invest. Lastly, the Chinese government also tweaks the export taxation system and devalues the Yuan. This led to the revival of the economy, which sees it expanding till now. Of course, the side effect of these series of Chinese actions was to indirectly trigger the 1997 financial crisis (though most of fault lies with the various ASEAN economies, i.e., economic mismanagement). Given that, what would one expect that if China’s bubble did get burst in the near term? Well, first of all, one have to remember that China though a market economy isn’t rule by Market Forces alone, i.e., Supply and Demand. China’s economy is very much influenced by the market forces as well as simple administrative fiat of the government. And in the imperative of protecting China’s ruling party’s interest, China wouldn’t hesitate to do whatever necessary to return the economy to growth in order to forestall unrest. And one of the most probable measures is to devalue the Yuan in order to boost exports. Second, with the devaluation of Chinese assets and the massive bankruptcy that could happen, it is also probable that China would further liberalize their economy and allow more foreign participation. As of now, China is gradually tightening it’s control over the economy by putting in place foreign investment restrictions. And these restrictions would likely be relaxed when the time comes. Furthermore, government takeovers of private enterprises particularly strategic bankrupt enterprises are also highly probable given it’s nature for administrative fiat. So as a business people, what are to expect in case of such scenarios? Well, first, expect fierce price competition from China not only due to the devalued Yuan but also to their penchant for price competition resulting from excess capacities. Second, with the Yuan devaluating, it might trigger a round of competitive currency devaluation especially with economies whose exports are in direct competition with China. As such, inflationary pressures would be pretty strong in these economies especially if they are import reliant. Thirdly, for those exporting to China, a Yuan devaluation would make their exports expensive and hence, this would stifle their export growth. On the positive side, a bubble burst of the Chinese assets has its benefits. One of the benefits is the cooling of commodity prices like metals and oil. Commodity prices are breaking record highs lately due in part to China’s surging demand. With the China factor curbed, it is only logical for commodity prices to “fall back to earth”. Another benefit is that for importers of Chinese products either for retail or for use in manufacture, abundant supply and lower Yuan means cheaper price and hence, lower input costs, which could potentially translates to better profit or larger market share in their respective markets for these importers. Still another benefit is that with high bankruptcy rates and a more liberal economy, a fire sale of repossessed assets at rock bottom prices can be expected and this would provide investors who are left out in the current China boom a chance to gain a foothold in China. All in all, whatever happened to China in the coming years, as business people, we are intricately connected to China.