News and reviews – February 2013   Leave a comment

The Academy of Business Strategy – Associate Global Partners (AGP) – Executive Global Partners (EGP) – Senior Global Partners (SGP) – The Official Global Partner Web Site

The Academy of Business Strategy – Approved Certified Business Specialist (CBS) Official Web Site

Domingo Tercero-Sierra (CBS)Academy of Business Strategy

Domingo Tercero-Sierra (CBS) DBA MA BSc is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is organizational management. He has achieved a DBA from the California Coast University, an MA and BSc from the University of Barcelona. He has been employed as a Managing Director, Commercial Director, International Division Manager, International Sales Manager, International Purchasing Manager, Area Manager and Consultant for various companies and has experience within the health, technology, logistics and transportation industries His clients or employers have included Certificacion de Lesiones Espana, Truck and Wheel, Transportes Bidasoa SA, Decoy Safe Company, American Medical and Dental SL and Tudor SA. He has geographical working experience in the United States of America, Spain and Chile. He speaks English, Spanish and French. His service skills incorporate business projections, orientations, decision making and organizational management.

To contact Domingo Tercero-Sierra, please contact the Academy of Business Strategy by forwarding an email, or visit Domingo’s CBS Blog.


Esa Mikko Henttonen (CBS)Academy of Business Strategy

Mikko Henttonen (CBS) MSc BSc is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is value chain. He has achieved an MSc in Business Economics, a BSc in Information Technology and BSc in Production Economics from the University of Jyvaskyla. He has been employed as an Internal Auditor, Manager, Financial Auditor and Consultant for various companies and has experience within the mechanical manufacturing, paper and telecommunications industries His clients or employers have included KONE Corporation, PricewaterhouseCoopers, KPMG and TietoEnator. He has geographical working experience in Finland, the United Kingdom and the United States of America. He speaks Swedish, English and German. His service skills incorporate accounting, finance, operations, strategy and value chain.

To contact Mikko Henttonen, please contact the Academy of Business Strategy by forwarding an email, or visit Mikko’s CBS Blog.


Dion de Gruchy (CBS)Academy of Business Strategy

Dion de Gruchy (CBS) NHD is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is strategic procurement. He has achieved a Higher National Diploma from the University of Johannesburg. He has been employed as a Business Analyst, Logistics Manager, Director, Commercial Advisor, Value Analysis Engineer and Consultant for various companies and has experience within the aviation, telecommunications and automotive industries His clients or employers have included Gauteng Department of Health, Eskom Engineering, Denel Land Systems, Welman Consulting, MTN, Safair, Tupperware SA, Sasol Ltd, Nissan SA, Swift Engineering, Hendler and Hart and Envirotech PTY Ltd. He has geographical working experience in South Africa and Japan. He speaks English. His service skills incorporate supply chain optimisation, industrial engineering and strategic procurement.

To contact Dion de Gruchy, please contact the Academy of Business Strategy by forwarding an email, or visit Dion’s CBS Blog.


Ricky Sanders (CBS)Academy of Business Strategy

Ricky Sanders (CBS) BS CPA is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is succession planning. He has achieved a BS from University of Tennessee and is a Certified Public Accountant. He has been employed as a President, CEO, CFO, COO and Consultant for various companies and has experience within the textiles, cosmetics and printing industries His clients or employers have included Abcor Packaging, Vincent Printing Company and Charleston Hosiery Inc. He has geographical working experience in the United States of America, Dominican Republic and China. He speaks English and Spanish. His service skills incorporate business valuations, market valuation and succession planning.

To contact Ricky Sanders, please contact the Academy of Business Strategy by forwarding an email, or visit Ricky’s CBS Blog.


Lorenzo Zemella (CBS)Academy of Business Strategy

Lorenzo Capodicasa Zemella (CBS) MS is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is information management. He has achieved an MS from the Polytechnic of Milan. He has been employed as IT Product Consulting Manager, Client Service Manager, Principal, Project Manager, Senior Network Engineer and Consultant for various companies and has experience within the telecommunications, manufacturing and healthcare industries His clients or employers have included Hewlett-Packard, Telecom Italia, Video on Line and Bull HN Information System. He has geographical working experience in the United States of America, Italy and Argentina. He speaks English and Italian. His service skills incorporate business development, program management, communications technology and information management.

To contact Lorenzo Capodicasa Zemella, please contact the Academy of Business Strategy by forwarding an email, or visit Lorenzo’s CBS Blog.


Charles Demicher (CBS)Academy of Business Strategy

Charles Demicher (CBS) BESc is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is global localization. He has achieved a BESc from the University of Western Ontario. He has been employed as a CEO, CTO, VP, Director and Consultant for various companies and has experience within the electrical engineering, energy, asset management and private banking industries His clients or employers have included World Industries Inc, Shanghai Broadband Network Inc, Asia Broadband Inc Nortel Networks, ANTEC, ATT, Rogers Communications Inc, Holographic and Content Development Co’s, Bell Canada Limited and Shell Oil. He has geographical working experience in the USA, China and Brazil. He speaks English. His service skills incorporate forward thinking, leadership management, process improvement, new business development and global localization.

To contact Charles Demicher, please contact the Academy of Business Strategy by forwarding an email, or visit Charles’ CBS Blog.


Robert Turrell (CBS)Academy of Business Strategy

Robert Turell (CBS) BS is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is travel management. He has achieved a BS from the American University. He has been employed as a Sales Producer, CEO and Consultant for various companies and has experience within the travel hospitality and life and health insurance industries His clients or employers have included New York Life Insurance Company and Security Mutual Life Insurance Company. He has geographical working experience in the United States of America and the United Kingdom. He speaks English and Spanish. His service skills incorporate sales, management, marketing and travel management.

To contact Robert Turell, please contact the Academy of Business Strategy by forwarding an email, or visit Robert’s CBS Blog.


William Chaster (CBS)Academy of Business Strategy

William Chaster (CBS) is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is information flow. He has achieved a Diploma from CompuCollege School of Business and a Diploma from Camosun College. He has been employed as Technical Consultant, Analyst and Consultant for various companies and has experience within the public service, natural resources and hospitality industries His clients or employers have included Will C Solutions Inc, Western Forest Products Inc, Zone Integration Group, The Centre for Education Information Standards and Services, The Conservation Data Centre, Ministry of Environment Lands and Parks, Ministry of Forest and Ministry of Transportation and Highways. He has geographical working experience in the United States of America and Canada. He speaks English. His service skills incorporate customer care, independent thinking, inter-process connectivity and information flow.

To contact William Chaster, please contact the Academy of Business Strategy by forwarding an email, or visit William’s CBS Blog.


Academy of Business Strategy

Claire Hinshelwood (CBS) BA ACMA CGMA is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and her specialist subject is financial transformation. She has achieved a BA from Heriot Watt University. She is also a qualified member of the Chartered Institute of Management Accountants and a Global Chartered Management Accountant. She has been employed as a Chartered Management Accountant, Global Head of Management Reporting, Financial Controller and Consultant for various companies and has experience within the agrochemical, textile and FMCG industries. Her clients or employers have included Syngenta International, Sara Lee and Playtex. She has geographical working experience in the USA, Switzerland and the Philippines. She speaks English and French. Her service skills incorporate organisation design and implementation, training and change management, process and system redesign, efficiency improvement and financial transformation.

To contact Claire Hinshelwood, please contact the Academy of Business Strategy by forwarding an email, or visit Claire’s CBS Blog.


Academy of Business Strategy

Paolo Zaccardi (CBS) MS PMD is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is innovation management. He has achieved an MS from La Sapienza University and a PMD from the IESE Business School. He has been employed as a Managing Director, Marketing and Innovation Director, Chief Innovation Officer and Consultant for various companies and has experience within the automotive, banking and ICT service industries His clients or employers have included RAE 88 Srl, ICBPI – Istituto Centrale delle Banche Popolari Italiane SpA., Seceti SpA and Diagram APS SpA. He has geographical working experience in Italy and Germany. He speaks Italian and English. His service skills incorporate business marketing strategy, change management, project management and innovation management.

To contact Paolo Zaccardi, please contact the Academy of Business Strategy by forwarding an email, or visit Paolo’s CBS Blog.


The Academy of Business Strategy – Corporate Web Site

The Academy of Business Strategy – Associate Global Partners (AGP) – Executive Global Partners (EGP) – Senior Global Partners (SGP) – The Official Global Partner Web Site

Please find enclosed a list of the latest 10 new listings for Academy of Business Strategy Associate Global Partners (AGP), Executive Global Partners (EGP) and Senior Global Partners (SGP):



GEOGRAPHICAL LOCATION: New York City (United States of America)
“That city will, in the course of time, become the granary of the world, the emporium of commerce, the seat of manufactures, the focus of great monied operations,” predicted DeWitt Clinton, governor of New York in 1824. He was speaking in particular about the effects of the Erie Canal, which connected the Great Lakes to the Hudson River and helped to open up the west, allowing New York to benefit enormously from an explosion of trade. Within 15 years of the opening, New York became the busiest port in America, moving more than Boston, Baltimore and New Orleans combined. During the first half of the 20th century, New York did indeed become a world center for industry, commerce, and communication, the ports and railroads continuing to play a vital part in the city’s evolution. For a while, it became the most populous city in the world, with Wall Street also galvanizing America’s financial ascendancy. The success story continued as returning World War II veterans and immigrants from Europe helped to create a post-war economic boom that established New York as the world’s leading city, its international status being reinforced in 1951 when the United Nations established its new headquarters in the East Side of Manhattan. In the second half of the century this pre-eminence was to some extent jeopardized, in particular as the ports converted to container ships and laid off many longshoremen. The garment industry, confronted by fierce overseas competition, also declined sharply. Commerce was further unsettled as chronic mismanagement of the city’s budget led to the fiscal crisis of the 1970s. Also confronted by rising costs and other urbanization problems, many large corporations decided to move their headquarters to the suburbs or more distant cities.

Responding to the crisis of the 1970s, New York successfully engineered a major transition, generating enormous growth in services – especially in finance, education, medicine, tourism, communications and law – and as a consequence cemented its position as the country’s largest financial, commercial, information, and cultural center. In particular the decade saw a rebirth of Wall Street, which enabled New York to reclaim its role at the center of the worldwide financial industry. Today New York City has the biggest regional economy in the United States and the second largest city economy in the world after Tokyo. Many international corporations remain headquartered in New York, including more Fortune 500 companies (45 according to Fortune magazine in May 2011) than any other city. Currently one out of every 10 private sector jobs in the city is with a foreign company – representing a broad array of industries including shipping, steel, energy and manufacturing firms, and services – which makes the perspective of New York’s business community distinctly international. Anchored by Wall Street, New York is now one of the world’s two premier financial centers, with financial services accounting for more than 35 percent of the city’s employment income. The health care industry is the city’s second largest employer, after government, with research and medical services driving the industry, New York institutions creating more biotechnology-related patents than any other metropolitan area in the United States. Additionally New York is distinctive for its high concentrations of advanced service sector firms in fields such as law, accountancy and management consultancy, as well as being the most important center for mass media, journalism and publishing in the United States. Creative industries such as new media, advertising, fashion, design and architecture account for a growing share of employment. Manufacturing, although declining, remains consequential, with food-processing – a 5 billion industry that employs more than 19,000 residents – being the most stable manufacturing sector in the city; garments, chemicals, metal products, and furniture are other principal products.

New York’s overall economy remains robust, with employment close to its 1969 peak. However, its composition is again undergoing significant change, with the share of employment down considerably in several of the city’s traditionally-strong industries, including finance, publishing, legal services and manufacturing. Prospects for financial services are of particular concern, bearing in mind that workers in this industry, while holding fewer than one of every six jobs in the borough, collect more than half of all the wages paid in Manhattan. If their pay drops significantly then almost certainly apartment prices will decline and the ranks of luxury retailers will thin. Similarly, if financial firms can no longer pay top dollar for office space, commercial building values and new construction will decline. The public sector will also suffer, as Wall Street still accounts for 9 percent of all city tax revenue and 15 percent of state revenue. Fortunately, and countering this worrying trend, in just a few short years New York’s tech sector has emerged as an increasingly powerful economic force, with more than a thousand new tech start-ups transforming the city into the nation’s second leading hub for technology companies. In the process it has attracted entrepreneurs that previously would have almost certainly bypassed New York for Boston and the West Coast, and positioned itself at the vanguard of the fast-growing digital media, Internet and social networking sectors. New York has benefited from its position at the terminus of the transatlantic fiber optic trunk-line, making it the leading international internet gateway in the United States. More importantly, growth of the tech sector is now being driven by several big technology trends that play to New York’s natural strengths. While the early days of technology growth were driven by semiconductors and computer hardware, products that depended on a deep roster of engineering talent and requiring large amounts of physical space —neither of which favored New York – in contrast today’s growth is being fuelled by the creation of new ways of taking advantage of the Internet and mobile devices to deliver content, products, and services, and simplify life for individuals and businesses. Today the focus is on applying technology to traditional industries like advertising, media, finance, fashion and health, New York benefiting from being a market leader, and having a rich pool of creative talent, in most if not all of these sectors. This burst of tech company formation has created thousands of well paid jobs, attracted large amounts of capital from outside the city, pumped new life into the city’s entrepreneurial economy, and lured some of the world’s smartest and most innovative people to New York at a time when the most competitive cities are the ones with the best human capital and greatest capacity for innovation. A vibrant local tech ecosystem is now emerging to help sustain this growth, based around tech clusters such as those in Manhattan’s Flatiron District and Brooklyn’s Dumbo, and featuring financial services from late-stage private equity right down to angel investing. By any measure—companies, jobs, investment or community—New York has experienced stunning growth and appears well on its way to developing a sustainable digital economy. Most of the nation’s largest tech companies are now planting roots in New York and, of the seven leading technology regions in the U.S., New York was the only one to see an increase in the number of VC deals between 2007 and 2011. One remaining concern is that New York’s telecom infrastructure is well behind where it should be for a city vying to be one of the nation’s two leading technology hubs. Some start-ups that have looked for affordable space in former industrial districts outside of Manhattan have had to abandon those plans after discovering that high-speed Internet connections were not possible. Additionally, and while real estate is not generally a problem today, especially given the number of incubators and accelerators offering inexpensive space, that could change quickly. Much of the tech sector’s growth has occurred in the last few years when the rest of city’s economy was barely growing; when other sectors start clicking again, space may become much harder to come by, especially for firms that are graduating from incubators. This was a major problem at the height of the last tech boom in New York City. Noticeably Michael Bloomberg, a tech entrepreneur before he became New York’s mayor, has called on universities to pitch plans to develop and operate a new tech campus in New York in exchange for access to city-owned land and up to 100m USD in public money. Clearly there is much to be done if New York is to successfully achieve its latest economic transition. Not least among the challenges will be maintaining the city’s attractiveness as a place for the most creative and talented people to live. In 2009 the UK consulting firm Mercer, in an assessment “conducted to help governments and major companies place employees on international assignments”, ranked New York City 49th worldwide in quality of living. The survey factored in political stability, personal freedom, sanitation, crime, housing, the natural environment, recreation, banking facilities, availability of consumer goods, education, and public services including transportation. Addressing these challenges will require further innovation within the private, public and not-for-profit sectors, individually and collectively.

Robert Fitch
Global Partner status (Associate – Executive – Senior): Executive
Country of registration: United States of America
City of registration: New York City

Strategic methods
Strategic planning
Feasibility studies
Mergers and acquisitions
Organizational restructuring
Change management
Process facilitation
Results-based management
Project management
Stakeholder management

Management consulting
Financial services
Information and communications technology
Legal and professional services
International affairs and development
Public sector
Leisure and gifts

BA (Hons) – Reading University
MSc – Loughborough University

PA Consulting Group
Coffey International Limited
Lawrence Graham LLP
Mohammed bin Rashid Al Maktoum Foundation
World Bank
Bank of England
United Nations Development Programme


My education majored on economics, with the addition of post-graduate studies into the design of information and communications systems. This learning inspired my early professional interest in improving organizational efficiency and effectiveness through the use of ICT. As my experience broadened, my work has increasingly focused on the human factors that affect organizational purpose and change, to stimulate broad-based economic development as well as the success of individual firms. My career to-date features: more than 20 years devoted to management consultancy; 15 years in a variety of senior management roles; eight years enabling strategic change; and work in more than 40 countries globally. My mission is to help create healthier organizations for a vital world. My first professional experience (starting 1985) was gained with Langton, the London-based consulting arm of AGB, a specialist in international market and operational research. Langton leveraged the group’s expertise to become a leader in research into organizational requirements for information systems, my own work including preparation of a report for a consortium of leading technology suppliers into business and user requirements in 350 firms in 10 European countries. As well as support to similar, more sector-specific research assignments I also worked as Project Manager on the relocation of Commerzbank’s front office dealing systems, as part of a larger organizational growth project. I then honed my management consulting skills with PA Consulting, one of the world’s premier international consultancies, specializing in management information systems improvement studies for, among others, a leading London-based firm of lawyers and a UK Government Ministry. Subsequently I spent a period in line management functions, initially with Bishopsgate Systems (which became FTT Alphameric following acquisition), a niche supplier of front office systems to the financial services sector. As Project Manager I was responsible for the sale, implementation and development of bespoke information systems for leading financial services organizations, my clients including Nat West Securities as well as the Bank of England. I was then encouraged to spread my wings, personal contacts inviting me to join their unique start-up business, with the bold name of More Balls Than Most, which re-conceptualized juggling balls to create a novel mainstream high street and business-to-business gift. Initially I was asked to lead essential business systems development, my scope quickly extending to strategy and international market development. We enjoyed considerable success in the initial years, our main product becoming a best-selling adult gift at Harrods in London over two consecutive Christmas sales seasons, as well as featuring at major retailers such as Boots and Virgin Megastores. Our products became popular corporate gifts and features of corporate events for major firms such as Reuters, Microsoft and Barclays. Building on success in the UK we established a subsidiary in New York as well as a variety of joint ventures in France, Germany and Sweden. To enable continued growth we off-shored product supply to China. After three years contributing to innovative growth solutions, I decided to return to management consultancy, now looking to use my broader commercial and strategic know-how in international environments. I joined a niche UK-based firm of consultants specializing in financial services for small and medium-scale enterprises in developing and emerging markets. I was recruited to help the firm diversify, by extending the service line to address broader aspects of management and organizational development that were of increasing concern to existing and new clients. I developed the strategy for this diversification, and created and was made a Director of a new vehicle (called Enterplan) responsible for its implementation. Enterplan having become the largest part of the business, I then led a team of four in the acquisition of 80 percent of the firm from the owner; on completion of the buy-in I was appointed CEO. Over the period 2000-06 together we grew the firm by 350 percent, my primary functional responsibility being for pioneering initiatives designed to encourage global businesses to develop innovative solutions to opportunities emerging in the “base of the economic pyramid”. A particularly noteworthy outcome of this work was Vodafone’s early support to the “M-PESA” mobile-phone based money transfer initiative in East Africa. To help overcome barriers to continuing growth we sold the entire business to an Australian PLC operating a 4,000 person multi-specialist international professional services business. I was asked to relocate to the USA, to help establish the firm in strategically critical US markets, and with clients such as the US Agency for International Development as well as New York-based headquarters of UN agencies. This goal was achieved partly through organic growth as well as the development and implementation of an acquisition strategy that resulted in a merger with a 200-person firm based in Washington DC. I was then asked to join the Coffey group’s Corporate Strategy unit, becoming the US leader of a small international team devising and facilitating strategic change initiatives throughout the organization. In addition to support planning the integration of three acquired businesses, specific projects included the preparation of a market expansion strategy for the Asia Pacific region, and design of an holistic approach to measuring progress with global strategy implementation. Following the global financial crisis Coffey experienced a slowdown in parts of its business, which in turn limited my opportunities to influence its strategic direction. I therefore departed the company in 2010 to pursue my own consulting ventures. My current consulting work brings together my unique combination of experiences, encompassing diverse investigations into the effects of globalization, technology, sustainability and other critical socio-economic developments on international business strategy. I emphasize alignment around shared values and behaviors, so that an organization can respond dynamically to change while remaining true to its purpose. By focusing on these fundamentals an organization can sustain its health and continue to engage all of its stakeholders; by truly appreciating the needs of its stakeholders the organization can be sure that it is a meaningful part of a vital world.

New York City – United States of America
Boston – United States of America
London – United Kingdom
San Francisco – United States of America
Mumbai – India

Global Partner preferred location
City: New York City
Country: United States of America

To contact Robert Fitch (EGP), please forward an email to the Academy of Business Strategy.




GEOGRAPHICAL LOCATION: New York City (United States of America)
The history of New York in particular and the United States in general has been so well covered elsewhere that a general historical review would be of little benefit to the reader. Instead, this history will focus on the history of banking and its regulation in the United States. The Office of the Comptroller of the Currency (“OCC”) is a Treasury Department agency established by the National Currency Act of 1863. The Federal Reserve System (“Fed”) was created by the Federal Reserve Act of 1913. The Banking Act of 1933, also known as Glass-Steagall, famous for mandating the separation of commercial and investment banking, also established the Federal Deposit Insurance Corporation (“FDIC”). The OCC, Fed and FDIC are the primary regulators of national banks, bank holding companies and Fed system members, and non-Fed-member state banks, respectively. State chartered banks are subject to dual regulation, by their state of incorporation and the FDIC or the Fed. In addition to this national/state web of regulation, banks must comply with rules established by the Basel Committee on Banking Supervision. The Basel Committee has no enforcement powers and no treaty binds member countries to adopt the Committee’s regulations, but in practice negotiations over regulatory provisions happens behind the scenes and all member countries adopt the Committees regulations at some point in time. The Basel Committee is best known for the rules governing bank minimum capital requirements. The US housing market peaked in 2006. In 2008, two housing-related government corporations, commonly known as Fannie Mae and Freddy Mac, had to be brought under government protection. Investment banks Bear Stearns and Lehman Brothers were acquired at a steeply discounted price and filed for bankruptcy, respectively. These events are generally recognized as the start of the global financial crisis. The crisis has led to dramatic and ongoing changes in regulation of the banking market. In response to the crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) was enacted. This is a sweeping piece of legislation of which the full impacts have not yet been realized due to delays in writing the implementing regulations. One significant part of Dodd-Frank is the requirement for banks with over 10 billion USD in assets to perform regular stress tests. A stress test is an exercise in which bank capital sufficiency is modelled in a hypothetical severe recession. Failure to achieve mandated capital levels can lead to dividend restrictions, curbs on growth and a limitation of strategic options. The 50 billion+ USD banks have already begun this process, with the 10 billion+ USD banks slated to start soon. Stress testing in some form also appears to have become a de facto requirement for much smaller institutions via a regulatory requirement for sound capital planning. In addition, the US is poised to implement a new set of Basel Committee regulations that will increase capital requirements, restrict the definition of capital and change the measurement of risk assets. The combination of these actions will have a profound impact on the banking market. Despite a financial crisis which most analysts believe started with the largest banks, the importance of these banks continues to grow. In 1995, the six largest institutions (JP Morgan, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo) had assets equal to 17 percent of US GDP. By 2005, that figure had risen to 50 percent of GDP due to mergers and other factors. Their share of GDP has risen to 60 percent today. These figures are but the continuation of a trend that saw the number of US banks decline from over 20,000 before the Great Depression to 12,000 before the Savings and Loan Crisis to approximately 7,200 today. Some politicians and analysts have called for a break-up of the big institutions, re-imposition of Glass-Steagall restrictions, or some form of firewall between investment banking and insured deposits. To date, this idea has not attracted support sufficient to result in legislation, but it is a development that bears watching. Some commentators attribute some blame for the financial crisis to the US regulatory overlap discussed above. Banks were said to engage in “regulatory arbitrage,” lobbying a regulator to pass favorable regulation, structuring their activities in order to take advantage of the lessened stringency, and then using the newly-relaxed regulations to lobby other regulators to do the same. While as a result of the crisis one regulator, The Office of Thrift Supervision has been eliminated, another, The Financial Stability Oversight Council, has been created. In response to the financial crisis, regulators appear to have been more diligent in coordinating their activities. It remains to be seen how long this will endure.

In 2006 there were no bank failures in the US. In 2010, failures peaked at 157 and then declined to 92 in 2011, while 2012 appears to be set to be significantly below the 2011 level. While high, these levels are significantly below the Savings and Loan crisis peak of 531 in 1989. As measured by asset levels, failures in the current crisis peaked at USD 372 billion in 2008, declining to USD 32 billion in 2011. Loan losses have shown similar trends. During the period from 2009 to 2011, net loan losses as a percentage of total loans and leases at commercial banks declined from 2.67 percent to 1.64 percent. Some institutions have recently recorded negative net loan loss provisions. Returns on Total Assets have increased over the same period from -10bps to +91bps. The Tier 1 Common Risk-Based Ratio (“T1Common Ratio”), an important measure of capital sufficiency, has increased from 11.1 percent to 12.4 percent. By any of these measures, the peak of the crisis has passed. At the same time, however, commercial bank ratios are showing some troubling trends. Efficiency ratios, a measure of operating expenses to income, have risen (i.e. gotten worse), going from 54.9 percent to 60.7 percent. While Net Interest Income to Average Assets has increased slightly, from 3.1 percent to 3.2 percent, Non-interest Income to Average Assets declined from 2.1 percent to 1.8 percent. Ratios such as Return on Total Assets have in part been flattered by the declining trend in loan losses, but this situation (especially in the case of negative loss provisions) cannot continue forever. A continued deterioration in Efficiency Ratios or a reversal of the modest improvement Net Interest Income performance could therefore be quite damaging. Some analysts, including the author, believe that the improved performance could in fact go into reverse in the near future, even absent an external shock such as continued deterioration of the economic situation in Europe. There appears to be insufficient loan demand from creditworthy borrowers to replenish loan books as existing loans mature or are written off. Many banks have a glut of cash and invest the cash in low yielding government securities rather than loans. Coupled with ever increasing compliance costs, this means that net income and capital generation may be poised to decrease.

The full impact of the various regulatory changes discussed above has yet to be felt due to two main factors. First, final regulations have not yet been written. There is a significant backlog completing regulations required under Dodd-Frank. While Republican presidential candidate Mitt Romney has pledged to repeal Dodd-Frank if elected, there does not at this point appear to sufficient support for this action in Congress. If he is elected, partial repeal is more likely. If President Obama wins re-election, then repeal appears unlikely. Either way, it is extremely unlikely that stress testing will be repealed. Second, there is no discussion of withdrawing from the Basel accords. Basel III regulations in the US are currently (September 2012) circulating for comment. While not finalized, some core principles appear to be beyond question. Certain form of capital will be disallowed during a phase-out period starting in 2014 and ending in 2018. At the same time, minimum capital levels will be raised. Minimum T1Common Ratios will be increased and a new Capital Conservation buffer of 2.5 percent phased in from January 1, 2013 to January 1, 2019. This will effectively raise MINIMUM T1Common Ratios from 3.5 percent to 7.0 percent. Because the consequences of failing to maintain the minimum level includes a restriction or elimination of dividends and executive officer bonuses, many analysts believe that banks will in fact manage to a 10 percent T1 Common Ratio. As of second quarter 2012, US commercial banks had an aggregate T1 Common Ratio of 12.65 percent. While this would appear sufficient, there are two concerns. First, this average masks a wide range. Many banks will in fact need to raise additional capital. Second, the stress testing regime above does not define capital adequacy with reference to current capital levels. Capital adequacy will be measured against a sub-7 percent standard, but in a hypothetical severely adverse economic scenario. Capital sufficiency and strategic alternatives will be defined by stressed capital in a recessionary environment. If the asset pricing, new lending volumes and Efficiency Ratio concerns discussed above materialize, then many banks that need to raise additional capital may be unable to generate it internally and may have too low a return on equity to attract it externally. Such institutions may therefore get caught in a vicious circle of declining returns, a lack of capital, increasing regulatory scrutiny and declining strategic options. By some estimates, 2,000 US banks should consider selling now before their potential sale prices decline even further. The restructuring of the US banking market looks set to continue for the foreseeable future.

Roderick Guerin
Global Partner status (Associate – Executive – Senior): Executive
Country of registration: United States of America
City of registration: New York City

Bank regulation advisory
Regulatory negotiation
Bank board of director advisory
Mergers and acquisitions advisory
Corporate lending advisory
Loan structuring advisory


MBA – Rutgers University
BA – Rutgers University

Morgan Stanley
Mizuho Corporate Bank
Portigon AG


I was graduated from Rutgers University in 1982 with a degree in Business Administration. I received magna cum laude honors and was admitted into the Phi Beta Kappa and Beta Gamma Sigma honor societies. After Rutgers, I hiked the 2,100-mile Appalachian Trail from Georgia to Maine before starting my working career. My first two employment positions were in treasury management in retail and telecommunications firms. During this time, I started work on my MBA degree at Rutgers University. In 1986 I was recruited to join Citicorp, one of the world’s largest financial institutions. I was selected to attend their elite management training program, The Citicorp Institute for Global Finance, from a worldwide pool of candidates and was graduated with perfect grades. I remained at Citicorp for 15 years, during which time I completed my MBA studies, obtained various US securities licenses, and had a varied and successful international career. My first Citicorp assignment was in the New York Private Client Division, where I marketed loans and investment services. I had the opportunity to gain international experience via a transfer to London, where I marketed to UK corporates before moving troubled real estate restructuring during the 1990s real estate crisis. In the later position, I conducted US and UK regulatory reviews and negotiated the sufficiency of loan provisioning and action steps to terminate troubled exposures. During that time, I repurchased, at a discount, bonds with a higher security position than my loan exposure, and sold a large loan portfolio via joint venture with an insurance company. These were both first-of-a-kind transactions in the London market. I returned to New York, where I did financial institution mergers and acquisitions. Amongst my successes were the purchase of Diners Club Australia, Bank Handlowy in Poland, and the ATandT Universal credit card business in the US. This position was part of the strategy and business development team, which led the Citicorp on merger-related matters of strategy, domestic and international bank regulation, capital adequacy, systems integration and more. My final position in Citicorp was in project finance, where I completed the first-ever securitization of project finance loans. I moved to WestLB AG, a German bank, where I originated corporate loans, invested in private equity firms, and completed troubled loan restructurings in Mexico and the US. WestLB has been renamed Portigon AG as part of a government bailout and restructuring. My restructuring experience permitted me to analyze the failure of a corporate and financial strategy from outside an organization, while my employment provided the opportunity to do the same from the inside. My next banking employer was Mizuho Corporate Bank, a Japanese institution. At Mizuho I was responsible for new product development and sales, including tax, accounting and Basel regulatory requirements. Upon the start of the financial crisis, I was asked to bring my securitization and restructuring experience to bear upon a defaulted 1 billion CDO. This was another opportunity to observe the failure of both an individual bank’s strategy and the broader dysfunction of the financial markets. My final financial institution position brought me full circle, where I joined the Morgan Stanley Smith Barney, the Private Client Division of Morgan Stanley. I then took up an opportunity to use my breadth and depth of experience to become a full time consultant to financial institutions. I am now a managing director of a banking consultancy. We are the number one firm in the US in the areas of bank stress testing, capital adequacy, Basel regulation and regulatory negotiation. This position leverages my experience through three credit cycles, expertise in bank mergers, regulatory matter, credit structuring and an inside view of the failure and restructuring of banking strategies. During my career I have lived in Europe and the US and completed transaction on four continents. I have excelled in both line and staff position in some of the world’s largest multinational financial institutions. I have developed deep expertise in banking strategy, regulation and how the impact of the financial crisis will affect the interaction of the two. Bank market restructuring will continue for the foreseeable future, and those banks that are unable to adjust their strategies will cease to exist as independent institutions.

New York City – United States of America
London – United Kingdom
Sydney – Australia
Tokyo – Japan

Global Partner preferred location
City: New York City
Country: United States of America

To contact Roderick Guerin (EGP), please forward an email to the Academy of Business Strategy.




Because of its centralized location as a commercial hub in the Levant region, the land of Jordan is a geographic prize which changed hands many times. Parts of Jordan were included in the dominions of ancient Iraq, including the Sumerian, Akkadian, Babylonian, Assyrian and Mesopotamian Empires. From the west, Pharaonic Egypt extended its power and culture into Jordan, while the nomadic Nabateans built their empire in Jordan after migrating from the south of the Arabian peninsula. Finally, Jordan was incorporated into the classical civilizations of Greece, Rome and Persia, the relics of which are scattered across the Jordanian landscape. Since the mid-seventh century CE, the land of Jordan has remained almost continuously in the hands of various Arab and Islamic dynasties.

The second geographical factor which has helped shape the history of Jordan concerns climate. Only the northern highlands and the Jordan Valley have received enough rainfall to support large populations. Therefore, this area has always been more settled by farmers, villagers and townspeople. Most of the urban civilizations of Jordan have been based in these fertile lands. To the south and east, meanwhile, there is very little rainfall and no rivers for irrigation. These desert areas, which comprise the majority of Jordan, have rarely supported large settled populations. In some periods, there appears to have been no settled population at all. The lifestyle of the Bedouin inhabitants of these desert lands has remained similar in some respects to that of their Edomite or Nabatean predecessors. The contrast between the pastoral “desert” and agriculturally fertile lands is particularly pronounced in Jordan, and much of the area’s history can be linked to population shifts between large urban centers and more dispersed, nomadic tribal groups.

Today Jordan plays a major role in the Middle East region enjoying its location as a hub between north and south and connecting the Gulf Countries with Europe through Turkey. All the terrestrial transit business that flows between Europe and the GCC market has to go through Jordan. A new gate can be utilized is the one coming from North of Iraq towards the western borders with Jordan which could be alternative route for the one crossing Syria due to the ongoing civil war there. Jordan has more free trade agreements than any other Arab country. Jordan has FTA’s with the United States, Canada, Singapore, Malaysia, the European Union, Tunisia, Algeria, Libya, Algeria, Turkey and Syria. More FTA’s are planned with Iraq, the Palestinian Authority, the GCC, Lebanon, and Pakistan. Jordan is a member of the Greater Arab Free Trade Agreement, the Euro-Mediterranean free trade agreement, the Agadir Agreement, and also enjoys advanced status with the EU.

In the telecom Sector, two major regional dark fiber cables coming from the GCC market are crossing Jordan for the purpose of reaching Europe to perform a backup solution for the continues submarine fiber cuts. Jordan location can qualify the country to play a major role in the telecom sector in the MENA region. Until today there is no sufficient intranet exchange between the Middle East countries or even local IP transit hub. The disaster recovery business can be one of the most significant services located in Jordan, as the regional terrestrial dark fiber cables are crossing Jordan between Europe and the GCC market.

In addition the ICT sector in Jordan is considered one of the most advanced and liberalized sectors in Middle East, currently there are three mobile operators and more than eleven Internet service providers. The availability of skilled labor in the ICT sector with minimum OPEX cost would be an extra value for those who select Jordan as main base for their programming development activities. Telecommunications is a billion-dollar industry with estimates showing that core markets of fixed-line, mobile and data service generate annual revenue of around USD 1.18bn per year, which is equivalent to 13.5% of GDP. Jordan’s IT sector is the most developed and competitive in the region due to the 2001 telecom liberalization. The main obstacle to Jordan’s economy is scarce water supplies, complete reliance on oil imports for energy, and regional instability.

Jordan’s economy has come under some pressure in 2007 and perhaps more so in 2008, primarily from global increases in oil and food prices that have affected the government budget and the current account balance. While Jordan is facing enormous economic pressures, it is managing to sustain good levels of GDP growth and foreign investment. There are a number of sectors that have performed well in 2007, including minerals, pharmaceuticals and tourism.

Another sector that shows high growth in Jordan is the Media sector. Jordan’s media sector has seen significant privatisation and liberalisation efforts in recent years. Based on official rack rates, research firm Ipsos estimated that the advertisement sector spent some $280m towards publicity in Jordan’s media, 80% of which was spent on newspapers, followed by TV, radio and magazines. Currently there are two media cities in Jordan that provides teleport services through VSAT for the local and regional TV channels. Jordan location qualifies the Media cities to play a major role as media service providers for the neighbouring countries due to the laws and regulations which prohibit the free broadcasting through their homelands.

Jordan’s economy will continue to post growth despite the global recession. In order to tackle the crisis, the country has launched a series of infrastructure projects financed by public-private partnerships (PPPs). These include the construction of a nuclear power plant and two mega projects to supply the country with water. The Disi Water Project is designed to pipe water to Amman, home to half the country’s population, from an aquifer close to the Saudi border, while the Red to Dead Project will pump water from the Red Sea to the Dead Sea, which considered the future of tourism in Jordan.

Eyad Abu Khorma
Global Partner status (Associate – Executive – Senior): Executive
Country of registration: Jordan
City of registration: Amman

Operational and Strategic Planning
Project Management
Building Shareholder Value
Business Development
Negotiating and Closing Deals
Developing New Business
Growing Revenue and Profit
Forming Strategic Alliances
Performance Improvement
Due Diligence

Telecom Services
GSM Services
Cloud Applications services
FTTH operation services
Data Center Services
WiMAX services
Carrier Services
Product Development Services

MBA – New York Institute of Technology
B.Com – Arab Academy for Science, Technology and Maritime Transport

Marconi sold to Ericsson


Started my professional life after graduating from the Engineering faculty in 1998 with excellent and honor degree, joining the first mobile operator in Jordan called Fastlink (Zain is the new brand) as RF engineer. After six months of my service, I managed to create projects that saved the company millions of USD, one of the major projects was replacing the mechanical Antennas to electrical one, which helped in enhancing the network performance and saving efforts. In less than two years the excellent network performance didn’t go unnoticed in the local telecom market in Jordan. I was offered to join the newly established second mobile company in Jordan called Mobilecom (a subsidiary of France telecom) and assigned the responsibility of leading all the pre-launch RF optimization activities.

After achieving an excellent experience from the local telecom market in Jordan, I decided to gain overseas experience, where I joined in year 2000 a consultancy firm called Metapath Software International (MSI) based in Texas, USA which is acquired by Marconi in the same year. Serving as a core member of the company’s consultant team, where I was responsible for creating and directing the rollout of mobile and broadband networks in numerous international markets. Spending almost four years working in the international markets was excellent experience for me to visit different markets and learn about other nation’s culture, which added value to my personality.

In year 2004, I received a request from an old friend to join a team who was working on securing the third mobile licenses in Jordan. I accepted the invitation as it was an excellent opportunity to leave a mark for me in my home country. The license was secured and I was assigned the responsibility to do the dimensioning and design for the whole network. The challenge I had that the two existing mobile operators are utilizing the 900MHz bandwidth through 1000 base-stations each, while our company was awarded 10MHz bandwidth on the 1800 MHz band. Designing the network by benefiting from the geographical terrain in Jordan, I managed with the team I hired and led to cover all populated areas in Jordan through 160 base-stations and serving the first 250K customer in less than three months. The full understanding for the sales and marketing strategy and apply it on the network design was the reason behind the renowned success story of Umniah mobile company in Jordan. Due to the great achievements, I was promoted to become the VP of Umniah mobile company, and was assigned the responsibility of creating the Business development unit. This new unit was responsible for securing new licenses and accusations for the purpose of expanding the company regionally and internationally. To perform my duties to the fullest, I decided to enhance my management skills and the financial understanding by studding business administration, where I completed my master degree in less than a year. The MBA helped me in understanding more the international business, preparing necessary studies and business plans to assess technical, commercial and financial feasibility of the markets we visited in Asia, Africa and Middle-East including all operational KPIs of the visited companies, and also helped in understanding the regulatory environment and legal obligations that will be placed on the entity.

in 2006, Umniah was sold to Batelco Bahrain, and based on this change in ownership I was asked by the old owners to join them in establishing a new company which will be specialized investments holding whose core activities embedded in identifying, assessing, investing in, and managing opportunities in various emerging markets. Accordingly, I joined the new group which known today as Dama Ventures and I was assigned the responsibility of directing DAMA Venture’s investments in the telecom, technology and online sectors, producing P and L budget and expansion plans as well as ensuring the flawless execution of planned projects.

After pursuing different opportunities, two lucrative opportunities were secured for the group and I was asked to manage both opportunities. The first opportunity was a WiMAX license in Sudan. The internet penetration in the Sudan at the time we secured the license was around 1% and there was a shortage in the IP transit supply causing the prices of the 1MB exceeding USD two thousand per month. The second opportunity was signing a commercial agreement with the national grid network in Jordan for the purpose of utilizing the aerial Dark fiber installed on the grid network and we were the first company in Middle East who signs such agreement. The idea from signing the agreement was to build a broadband telecom network in Jordan and being the first FTTx Company there. The selection for the grid network was for two reasons, the first one is to reduce the CAPEX cost and the second reason was the time to market. I achieved with my team to light 1000Km of dark fiber in less than four months and operate international gateway in minimal cost. Of course this project came after a careful feasibility study for the Internet market in Jordan which was suffering from monopolistic conditions by the incumbent. In less than one year the company I founded and managed in Jordan as DSP and ISP services provider controlled more than 15% from the IP transit market and managed to achieve EBITDA positive in less than 18 months from the starting date of operation. Despite the cut throat competition as the Internet market in Jordan is fully liberalized, I consider the biggest achievement for me as founder and CEO of this company is Reaching P and L breakeven point during 30 months from the company starting date and exceeding bottom line target by 150%. In addition to the financial achievement, I managed to develop internal process and procedures that resulted in saving 20% of the projected OPEX, and developing and implementing solid and resilient processes automated with state-of-the-art IT systems enabling high efficiencies and accurate reporting.

Based on my humble experience in both the wire and wireless technologies I strongly believe that the classical telecom operations are becoming just a hosting environment and the future is for applications and contents. This is why I left my post as CEO for Damamax the company I founded in Jordan and settled as a small shareholder and board member there. Today, I am working on founding a new company that will be specialized in application and contents to operate as cloud service provider.

Amman – Jordan
Cairo – Egypt
Riyadh – Saudi Arabia
Dubai – United Arab Emirates
Dallas – United States of America

Global Partner preferred location
City: Amman
Country: Jordan

To contact Eyad Abu Khorma (EGP), please forward an email to the Academy of Business Strategy.




Cairo is the capital of Egypt and the largest city in the Arab world and Africa, and its metropolitan area is the 16th largest in the world. Located near the Nile Delta, it was founded in 969 AD. Nicknamed The City of a Thousand Minarets for its preponderance of Islamic architecture, Cairo has long been a centre of the region’s political and cultural life. Cairo was founded by the Fatimid dynasty in the 10th century AD, but the land composing the present-day city was the site of national capitals whose remnants remain visible in parts of Old Cairo. Cairo is also associated with Ancient Egypt due to its proximity to the ancient cities of Memphis, Giza and Fustat which are nearby to the Great Sphinx and the pyramids of Giza. The origin of the modern city is generally traced back to a series of settlements in the first millennium. Around the turn of the 4th century as Memphis was continuing to decline in importance the Romans established a fortress town along the east bank of the Nile. This fortress, known as Babylon, remains the oldest structure in the city. It is also situated at the nucleus of Coptic Orthodox community, which separated from the Roman and Byzantine church in the late 4th century. Many of Cairo’s oldest Coptic churches, including the Hanging Church, are located along the fortress walls in a section of the city known as Coptic Cairo.

Cairo’s Tahrir Square was the focal point of the 2011 Egyptian Revolution against former president Hosni Mubarak. Over 2 million protesters at Cairo’s Tahrir square. More than 50,000 protesters first occupied the square on 25 January, during which the area’s wireless services were reported to be impaired. In the following days Tahrir Square continued to be the primary destination for protests in Cairo. As it took place following a popular uprising that began on Tuesday, 25 January 2011 and is still continuing as of February 2012. The uprising was mainly a campaign of non-violent civil resistance, which featured a series of demonstrations, marches, acts of civil disobedience, and labour strikes. Millions of protesters from a variety of socio-economic and religious backgrounds demanded the overthrow of the regime of Egyptian President Hosni Mubarak. Despite being predominantly peaceful in nature, the revolution was not without violent clashes between security forces and protesters, with at least 846 people killed and 6,000 injured. The uprising took place in Cairo, Alexandria, and in other cities in Egypt, following the Tunisian revolution that resulted in the overthrow of the long-time Tunisian president. On 11 February, following weeks of determined popular protest and pressure, Mubarak resigned from office. On June 24, 2012, the election commission announced that Morsi won Egypt’s presidential runoff against Ahmed Shafik, the last prime minister under deposed leader Hosni Mubarak. According to official results, Morsi took 51.7 percent of the vote while Shafik received 48.3.As he had promised during his campaign, Morsi resigned from his position as the head of the FJP after his victory was announced. He is the first civilian president to hold the office.

The uprising in Egypt has created the opportunity for long-term political, economic and social change. The impact on the economy has limited the government’s ability to deliver on popular expectations. Foreign currency reserves are running low as a capital flight and lower foreign receipts increase the risk of devaluation. Reform of inefficient energy subsidies and non-performing state enterprises must be carried out to create room for increased government spending on education and health and to create targeted social safety nets for the very poor. As Egypt strives to meet the short-term demands of its political upheaval, it will need a medium to long-term strategy to secure inclusive economic growth for all Egyptians. This would require increased co-ordinated effort across government agencies, and a strong partnership between the government, civil society, the private sector and development agencies.

Yasmina Fahmy
Global Partner status (Associate – Executive – Senior): Associate
Country of registration: Egypt
City of registration: Cairo

Business Development Management
Project Management
Quality Control
Strong Analytical and Problem Solving Skills
Strong Presentation and Communication Skills
Strong Management and Leadership Skills
Strong Customers and Partners Trust Relationship Skill
Results Oriented and Goal crushing Mindset
Self motivated and Self-Initiative Personality
Exceptional at building rapport

Information Technology
Business Consultancy
Support Services
IT Services
Industrial Engineering
Banking and Finance

Diploma in Management – Oxford College

ORACLE Corporation
Equinox International


Regional Business Management Professional with more than 5 years experience, OCA, OCP certified, with award in management and leadership from chartered management institute in London, Oxford College Professional Diploma in Management. My Years of Experience Varies from Technical and Business Management experience starting by Quality Engineering in ITWorx where I was accredited ISTQB International Software Testing Qualifications Board, IBM Solution designer in Rational functional tester for java scripting and Rational performance tester and then I joined ORACLE Corporation as an Enterprise Manager Support Engineer managing the highest level of technical support to all Enterprise Manager products Stack Worldwide. I gained vast experience with customers and partners throughout the whole world and had an award Internal Spot Award and Global Outstanding Contribution Award in getting the highest customer satisfaction rate in the Team in addition to Global Software Support Spot Award to recognize my communication , presentation and business oriented skills. Afterwards I joined Equinox in a Business Development Management Role where I gained experience in Business Management, Bid Management and proposal Management. I closed several successful Projects Exceeding a Million Dollars and won several Bids. I have managed Projects starting with the initiation phase , planning phase, execution and control phase and then Closure and signoff phase. Recently I am back to ORACLE Corporation as a Regional Project Manager managing all ECEMEA Region. As part of the Partner Programs and Product Technology Adoption Office I’m responsible for developing the overall strategy and Managing Projects and communities including Architects community, Developer community and Competitive Intelligence by providing Budgeting, Planning, execution and management to make sure to achieve a good ROI for Oracle.

Cairo – Egypt

Global Partner preferred location
City: Cairo
Country: Egypt

To contact Yasmina Fahmy (AGP), please forward an email to the Academy of Business Strategy.




The province of Liège has a glorious past as a world N°1 of the steel industry in the golden sixties, an enviable position in the Gunsmith industry with FN (National Manufacturer) in Herstal (Liège) as the Top Industry, and an important Coal industry. Unfortunately, Liège has lost its competitiveness in the 70’s as a result of an exaggerated action from the workers union, and has fallen in a deep industrial crisis until the mid 90’s where the climate has improved thanks to a strong wave of industry diversification. So far, the Coal industry has disappeared but the Steel industry still operates but remains at risk with the evolution at Arcelor Mittal. It is however still far from what it has been in the past. The strong wave of diversifications emerging after the crisis in the 70’s, has extended to mainly specialized services such as transport and logistics, specific metals and materials research and treatments, automotive subcontract, water treatment, medical biotechnology, as well as many other skills. From a political standpoint, Liège, as well as most of Wallonia, has always been seen as a traditionally socialist area and still is. Liège has also been an important education hub with its university founded in 1817, and many other High schools. Notice that the University, and its multiple disciplines, has created a dynamism which has been a key contributor to develop the industry diversification following the decline of the steel industry.

The Liège Province is the second biggest population of the Walloon area with a bit more than one million inhabitants. This is however the most important Walloon province from an economical standpoint. The Liège Province is under the authority of both the Federal and the Walloon Governments, with a strong incidence of the Walloon Government on the Economical aspect. Liège is an important education hub with 42000 students attending more than 24 schools. The Liège Province also has multiple other benefits, such as a multilingual population with usual 2, 3 and even 4 languages talked, it is the 3rd largest river port in Europe, with straight connections to Antwerp , Rotterdam and Germany. It also offers an important Cargo airport, and a road and railway infrastructure which makes it an unavoidable crossroad of the European business. At the moment, Liège suffers, just like the rest of the developed countries in Europe, from the consequences of the worldwide crisis. But Liège is well armed based on its past experiences of continuous re-conversions. It also benefits from a lot of initiatives launched by the Walloon Region to encourage new and existing businesses through research, development and implementation subsidies , and one sees signs of recoveries as a result of these initiatives initially raised by the Marshall Plan and well coordinated between the Walloon Region and the Liège Province. In the meantime, many low capitalizations still fight to survive, and will need further economical incentives as many of tem still depend on the de-localising steel industry.

The Liège Province is actually at an important crossroad of the time. In fact, it is still fighting to survive, but based on the serious risk to see the Steel industry further declining, the Province, in coordination with the Walloon Region has launched a Program dedicated to exploit the full potential of the area. The Plan is articulated on different industries, supporting successful initiatives from the 70/80’s wave of diversifications, and using the strategic geographical position of Liège to attract more businesses and industries in the area. Such a plan, if successful, will require to increase all efforts to develop the Human Capital, means support to education and will also require to act on the Liège territory, public and private infrastructure and the cultural aspect to better market its reputation affected in the last 20/30 years. The future of the Logistic development in Liège is probably the most important factor for the success of the program. In fact, Liège is very well positioned between Amsterdam, Paris and Frankfurt, and covers 2/3rd of the European freight. The very strong freight development, mainly from the far East, will soon create a clear under-capacity in the main European sea ports and as a consequence, a need to transfer activities to connected river ports. This combines to the risk of road congestion will further favour river, rail and air transports. Liège has also well developed the Cargo airport ranked at the 7th position in Europe, starting from zero base in the early 90’s.Although not so spectacular, the following emerging industries are complementary to the logistic as they are inter-related. The local authorities, through the Groupement de Redéploiement Economique du Pays de Liège (GRE mainly supports this initiative and coordinates all developments to build a global logistic proposition where all transports (air, rail, river and road) combined in a multimodal solution, will have their specific role to better serve the industry. The Biotechnology is equally supported with a strong platform Project GIGA providing public expertise and specific research to support the industry, a development in cooperation with the Liège University which is successful and is job creating. The Micro-technology is another sector where Liège is active across all types of operations, would it be medical, mechanical, or other multiple applications in the daily life. The development of new products and materials is also part of this success and in line with Biotechnology and Micro-technology, is challenging multiple worldwide existing applications. Behind this ambitious project, the local authorities also focus on enablers. A complete review of the territory in terms of town and country planning, with a focus on sustainable development is part of the plan. In fact, such a plan will require hedge investments to harmonize industrial developments and residential areas, and serious incentive to adjust residential housing. In fact, the current display of the city mix old ugly industrial areas and residential houses, and ignores the complexity of public transports and its heavy pollution. Also close to 30% of the buildings date from before the second world war, and 2/3rd of the whole residential park is poorly insulated, causing waste of Energy and high CO2 emissions. Education is in the focus and has already provided successful support to the Industry with GIGA project as an example. The future seeks to drive the future education to the need of the Province re-conversion, and to further mix students and industry creating a win-win development for both of them. Last but not least, the future also seeks to rebuild the reputation of the City of Liège from a cultural standpoint, with an ambitious project to upgrade the main Art Museum into an international Center of Art and Culture where rotating expositions will take place. This is expected to attract many tourists (600.000 as per the plan), but many discussions are still taking place during this period of elections which may delay the original timing. All in all, the Province of Liège has the potential to further develop its logistic and emerging activities, and the politics have created an environment which is favourable. I am concerned that the dynamic will not be as fast as expected and therefore, the Region will meet a higher unemployment before all its efforts will pay. As a clear evidence, the stop at Arcelor Mittal of its liquid production creates further doubts on the future of the Steel industry, and that means that the dilemma for the Liège Province will be to further focus on its diversifications to compensate an expected decline of the still very important Steel industry.

Freddy D’herckers
Global Partner status (Associate – Executive – Senior): Associate
Country of registration: Belgium
City of registration: Liège

Business Strategy
Business Analysis and Diagnostic
Finance Management
Resources Allocation
Business Restructuring
Business Planning and Analysis

Electrical Equipment
Transport and Logistics
Fire Extinguisher
Plastic Extrusion
Food and beverages

Expertise Compatible – CBCEC Liège

Norbert-Dentressangle Logistics Welkenraedt
British American Tobacco Latin America and Caribbean
British American Tobacco Northern Europe
British American Tobacco Germany
British American Tobacco Plc
Pepsi-Cola Czech and Slovak Rep
Kraft Jacobs Suchard Hungary
Kraft Jacobs Suchard Belgium
Balteau-Schlumberger Mexico
Balteau-Schlumberger Belgium


As a fan of economics, Freddy D’herckers has studied at CBCEC Liège from 1980 to 1986 to become an Expert-Compatible as per Belgian rules. This institution only operates in the evening, it is post secondary school and specialized in developing Accounting, Tax, and Administration. His career has started in 1976 and has been rich in events and experience, quickly moving close to operations seeking to inject control and dynamism to the Management through on time performance monitoring and constant challenge for business improvement and/or business extension. The key skills which have brought Freddy D’herckers to the top positions are a strategic view of the business, leading to clear and precise diagnostics, the ability to convince the Top Management often leading to a successful Change Management, the capability to drive for results in terms of Profitability and Project completion, the ability to motivate and empower other employees in doing, the ability to manage resources allocation in line with business focus, the ability to speak 5 plus languages. For more details, please see the complete career below Ansul 1976 – 1979 Accountant at Groot-Bijgarden – Fire Extinguisher, reporting to the Controller In charge of Accounts Payables and ultimately in charge of the Financial Control of Sprinklers installations Extruder Screens. Europe Inc – a subsidiary of Thiokol (USA) 1979 – 1980 Finance Manager reporting to the General Manager – Manufacturing of Filters for Plastic Extrusion in charge of the company Finance Administration as well as the Payroll Management Jacobs Suchard 1980 – 1982 Assistant Controller at Chat Noir Liège – Coffee company in charge of Finance Planning and Analysis Highlights Implementation of a Paperless Budget Control in 1980 and improvement the Company forecast reliability 1982 – 1984 Corporate Internal Auditor at Jacobs Sucharg AG Zurich – reporting to the Group Head of Audit Highlights Development of a system to trace results on trading operations in Chocolate and a specific USD coverage for small subsidiaries. Initiation of IT tools to increase the scope of detail testing. Balteau – Schlumberger 1984 – 1988 Finance Director Belgium with supervision on 2 subsidiaries in Paris – reporting to the CEO Highlights Upgrade of the Finance department, in Internal Control, Credit Control, Tax Planning and preparation of the sale of a major division to Alstom in collaboration with Ernst and Young 1988 – 1990 Finance Director Mexico – reporting to the CEO Highlights Implementation of a system to reduce Tax penalties on business with Compania Federal de Electricidad, and development of the first local Finance Team Kraft Jacobs Suchard 1990 – 1993 Finance Manager of 2 Manufacturing Centers in Belgium (91-92) then Finance Manager of the Belgian Business Unit (92-93)– reporting to the local CEO Highlights Active founder of separate structures (Business Units/Manufacturing Centers). Active contributor to the 1992 Profit increase of 70% and 1993 of 15% 1993 – 1994 Finance Director Hungary, reporting to the CEO Highlights Set up of a reliable 3 days standard monthly closing, and a robust Finance local team. Upgrade of the Company Internal Control. Pepsi-Cola 1995 – 1996 Area Finance Director for Czech and Slovak Republic, reporting to the Area CEO Highlights Start of the bottler activity in Prague, building of a Finance team and set up of a reliable 3 days standard monthly closing Upgrade of the Company Internal Control. British American Tobacco 1997 – 1998 CFO Africa-Middle East, South and Central Asia (AMESCA) reporting to the Regional CEO (A BAT Board Member) Highlights Awarded the most strategic Regional Business Plan for 1999 Implementation of a Resources Allocation tool, further implemented in the BAT Group. Active builder of the Region sourcing Plan 1999 – 2002 Finance Director Germany, Reporting to the CEO Germany, also in charge of supervising Units in Poland, Romania, Ukraine, Czech Republic, Croatia and Bulgaria Highlights Set up of a new German structure with the help of PWC Frankfurt resulting in substantial tax benefits Integration of the German unit and its capabilities to better serve Europe Active support of a business turnaround in the Ukrainian subsidiary 2002 – 2003 CFO Northern Europe, reporting to the CEO Northern Europe with the supervision of 3 BV’s in Holland and the Belgian Coordination Center Highlights Development and initiation of a EU and Switzerland Financial Shared Services with the support of Cap Gemini UK Active support of a strategy rework of 2 units of the Northern Europe Area. 2004 – 2005 CFO Latin America and Caribbean’s, reporting to the Regional CEO (A BAT Board Member) Highlights – Awarded the best Regional Plan for the year 2005 Set-up of a Regional Excise Commission seeking countries strategy to optimize Products Portfolio Excise positioning Pilote of the Region strategy rework with the help of Booz Allen Hamilton Sao Paulo, resulting in boosting Regional Profit by 33% over 2 years and a volume turnaround after 6 years of volume drop. Optimagest 2006 – 2012 Founder and owner of the company Optimagest in Belgium, a Management Consulting firm agreed by the French speaking area of Belgium 2006 – April 2010 mainly focused on support of local companies in – Company Vision/Strategy Rework- Profitability Improvement- Working Capital Optimization- Merger and split as well as start-up companies- Change Management. May 2010 – July 2012 Interim Management at (First TDG Mond renamed Norbert Dentressangle Logistics Welkenraedt after its take over by the French Logistic Group). Freddy D’herckers has first been hired as Finance Director and has moved to the Site Management position on August 2011 on request of the Belgium CEO Highlights Director role Establish a dialog between local and Group Management through a Group and local books reconciliation. Set-up of a new equitable Compensation Plan. Set-up of a Company Risk Management Initiation of a Market Research seeking the development of a so far ignored portion of the accessible market. Site Director role Set up of an ad hoc Management organization for a 55000 pallets warehouse. Complete review of the Warehouse operations leading in a combined efficiency and service quality improvement recognized by major customers. Set up and initiation of a Global Business Turnaround including process efficiency and development of substantial customer extensions September 2012 to now, Mr D’herckers has decided to move back to drive his Management Consulting firm, seeking the help of companies in the Province of Liège. To complete this career description, Mr D’herckers has always given a high importance in developing talents and competences and has mostly prepared his successions.

Brussels – Belgium
Mexico DF – Mexico
Budapest – Hungary
Prague – Czech Republic
Rio de Janeiro – Brazil

Global Partner preferred location
City: Liège
Country: Belgium

To contact Freddy D’herckers (AGP), please forward an email to the Academy of Business Strategy.




The Australian economy has developed from an agricultural and mining economy through a period of manufacturing and technology based developments and now back to a mostly primary producer of minerals energy (natural gas) and farming products. These have not been without problems such as the recent ban on live cattle exports to certain counties that do not kill humanly. The transfer of allegiances from the UK and Europe to over the past 50 years to Asia and USA has been challenging and caused Australia to grow up as a nation and think for itself. The change to a multicultural society has been reasonably successful, however the ethnic groupings do seem to be clustered and occasionally hostilities break out. There are however generally good relationships and stable arrangements for goods and services. As a result it is possible to obtain almost anything that is made anywhere in the world in Australia. The labour market and salaries have risen in recent times and we are quite expensive to employ for labour related activities. The unions over the past periods have grown benefits and locked in minimum wagers that now are unsustainable and the workforce will have to shrink and the employment rate must reduce until the balance is restored. The two levels of the economy are counter poised, The resources is growing and pushing up the value of the dollar and the making the manufacturing sector uncompetitive both local as imports are less expensive an exports which cost more over seas. Unfortunately whilst we are quite and educated market we don’t seem to know where the money is made and how business must make a profit. There is little rational debate possible as the media quickly label a person who has a different point of view and the government seems to favour those who agree with it. (As with anywhere else) Because we have a high tax and the government controls many structures (including consultant and advisors) with grants and tenders dissenting views are limited.

Currently we have a socialist government and it is introducing policies that it sees as befitting it at the next election. The Carbon Tax was introduction in July 2012 and the actual impact is yet to be felt throughout the community and the business sectors. This is thought by many to be and ill-founded tax based upon controversial and contradictory science. The Household Assistance Package (HAP) that was intended to be a compensation for the increased cost of electricity and gas etc as a result of the carbon tax has been shown anecdotally to simply increase the returns to the lottery and gambling sectors. Australia is critically dependent on the growth in China which is a major trading partner. The investment by the large miners would indicate that they think the growth will continue unabated. However the share marker traders for the commodities are somewhat depressed and fluctuate quite rapidly. The situation in Europe and USA has been a plus and minus for Australia, the overseas funds flowed into Australia due in part to higher investment rate returns and the relatively stable economic climate and banks which has driven the dollar up making what products we export that are not locked into long term contracts uncompetitive. Australia is a sophisticated market and has an early adopter reputation that many international corporation use to trial global products and services before general release The corporate law and governance is at a high level. Some say it is a bit too open and that the non executive directors liability for the outcomes of the corporation that they are directors of but do not have an executive role may be extreme. Recent cases have highlighted the apparent poor monitoring by the auditors and advisors that the directors quite reasonably accepted which was actually incorrect. This will result in difficulties for Company directors and corporate liability transparency and protection of corporate strategy. One example that I know about recently was where Qantas had to announce they were to establish a premier airline into Asia with talks with Malaysian airlines only to find that others came in and took the opportunity. The issue of public listing and transparency need to have a fully informed market will encourage the company’s shares buy back where possible and move to be more private funded. Australia is only about 2% of the world market and recently has “punched” above it weight

The prospects for the region where I am located are strong and are likely to continue to grow without recession in the short term future. We are one of only four AAA rated economies and therefore the shrinking bond markets are sought after by those groups who are obligated to purchase AAA rated. The debt has been reasonably managed by the previous conservative government of John Howard which produced a strong surplus. The recent labour governments have done their best, but many believe that they have spent the assets and buffer funds created. The exchange rate look to remain high while commodity prices are strong, The Australian companies particularly the miners are seen as a surrogate for the gold price. Australian Housing prices are considered overpriced and may be subject to a correction particularly if there is much in the way of increased unemployment. As mentioned before the mining sectors have grown and exceed the supply of labour such that the discussion of creating special limited entry visas for temporary overseas workers. The fly in fly out option has been used and has a high cost factor attached. The outlook is for a significant growth of the national resources and primary products however the surging ahead of Brazil and other counties resources will impact the growth and the cost structure of the resources sectors. The Australian banks are quite sound and do not appear to be directly heavily exposed to the European or USA woes. The strong dividends are expected to continue while the world economy holds up. However the ASX investors are quite fickle and nervous and we appear to be becoming an flight to safety currency when the risk appears to increase overseas, The reserve bank signals and actions appear to be generally helping this. Many in the export industry would like actions to lower the exchange rate where possible. The prospects for excellent outcome in Australia are good however, there are many companies that need significant help and the success and strong economy should be used to advantage. The increase in investment and funds from China will replace the traditional investments from Europe and USA. The local funds from the philanthropic sector will reduce as people see the need to support themselves and their families. The strong dependence on China and the weakening of Europe will put Australia in a strong position to implement some of the changes that other countries’ would like to adopt. We are likely to be a proving ground for many strategies. The need for strategic input in business development will be much more complex and challenging for managers and company board in the future. They need significant strategic support to help with decision and scenario analysis. The area of expertise in financial / strategic and technology planning is in demand through out this community. There is quite a shortage of medium and longer term strategic planning particularly when the impact of technology and technology change is involved. For example boards are just starting to see the value of social media. Unfortunately a number of larger multinational companies have found the high dollar and broken government commitments to reduce tax and even increase taxes via the carbon tax has weight in favour of moving production off shore. (E.g. oil refining and car manufacturing) This will have a significant local and ripple effect throughout the country and will be very difficult if not impossible to reverse in the short term.

Stanley Jeffery
Global Partner status (Associate – Executive – Senior): Executive
Country of registration: Australia
City of registration: Sydney

Board Level Business Strategy reviews
National Software support implementation
Sales support and customer satisfaction
Investment analysis selection and support strategy
Entrepreneur training strategies and implementation
Leadership and enterprise review
Technology support contract
Corporate mentoring programs

Finance and investment funding
Information technology and applications
Telecommunications including mobiles and satellites
Networking and switching systems
Financial market analysis
Venture funding and private equity
Computing hardware and software design
Technology in operation mining/agriculture/manufacturing
Entrepreneurship and intrepreneurship selection and training

Doctor of Technology – Deakin University
MBA – Monash University
BSC – Salford University

UEM/Renong Optixlab
Australian Technology Park
Toshiba Australia
University of Ballarat Park
Telecom Australia
International Computers now Fujitsu
Wang Laboratories Australia
Pacific Semiconductors Sydney
Stanilite Electronics
International Capital Growth Services


Stan’s education, Stan’s first degree was in electronics from Salford University in the Manchester conurbation. This was a BSc in electronic engineering and where he was first introduced to computing. He undertook a number of internal training programs in computer and software development in International Computers and Manchester University where he subsequently worked for ICL. Later in Australia he was trained in software systems and computer aided support programs in Melbourne and later received a scholarship from Telstra to complete his MBA at Monash University specialising in corporate finance and computing Then in Sydney he undertook a number of courses at the university of New South Wales and Sydney University in management of research and development and product development together with investment and funding models. Later in Victoria he completed his professional Doctorate of Technology entitled “Development of a model to create entrepreneurial technology businesses”. His employment positions. Initially he was selected to the amazing position in International Computers Limited ICL of systems engineer and spent two years working at the world famous Manchester University computer department designing and development of a major Northern Universities Super computer. Then followed selection to work with the Australian Telecom provider in Melbourne where he was responsible for the development and support of the new computer controlled exchanges. He left the company as a Divisional Manager Then he headed up the Software system and product development with presales support and customised developments for Wang Labs in Sydney as development department manager He was at the interface between Australian and USA teams and developed a strong understanding of the trading issues between these groups. This led to the selection to the prestige position of leading the Toshiba research and development department and subsequent many visits and links with Tokyo Japan. The budget of 10M AUD was expended by him to grow Toshiba local products including a Notebook docking station and portable keyboard development both with Toshiba “Made in Australia” labels! He developed a significant understanding of trading with Asian and western markets. Then as a Consultant to Stanilite to review the operations and the make buy decisions for their next product range of wireless products. This resulted in the decision to develop a Stanilite rural terminal. Following this was the selection to establish the primer technology centre in Australia the Australian Technology Park (ATP)a joint initiative with University’s of Sydney, The University of New south Wales and University of Technology Sydney. He had a business incubator and technology growth centre and business training programs and developed a strong empathy with the entrepreneurs’ and business founders. Stan was head hunted by Price Waterhouse to head a new investment program in KL Malaysia this was a Renong/UEM Industry based investment fund of 500M RM approx 200M AUD program. This resulted in a very successful and culturally diverse program with a staff of 10 Islamic Malays and 10 Chinese Malays working together in harmony. He developed a strong link and in depth understanding for the Asian business process and where he was chairman and director of a number of companies He was one of the early attendees of the Blue Ocean Strategy (BOS) program in Australia and subsequently used this strategy tool in many consulting activities Stan’s achievements Professional Research Doctorate “Development of a model to create entrepreneurial technology businesses” This used the academic and practical business experience and skills / insights developed in corporate and medium / small business to grow and invest and train successful companies. He managed and established a 200M AUD venture fund in KL Malaysia and invested over 60M AUD in Malaysia Singapore and USA. This included the linkage of a company growth facility in Cyber JayaBuilt and established marketing and sales of complex business models of three successful enterprises and business growth centres This required branding and positioning of property development then marketing and selection of companies and prestige office builders then business growth systems. This include a corporate turn around in Victoria he grew the centre from a low growth with 400 people and three buildings to over 1600 and 8 building in 5 years. The benefit to the region was valued at over 250M AUD per year. Guided, invested and mentored over 150 Companies with over 90 in NSW technology centres and 20 in Malaysia SE Asia and 40 in Victoria. The exceptional success rate of over 85% was accredited to the programs and model that he established Growing 25 local companies to support Toshiba core products. he invested over 10M AUD in companies to support Toshiba Corporations growth in Australia, including negotiations and contracts with Microsoft in Redmond and other international corporations Reputation for achievement and integrity and provided strategic direction to over 20 boards and advisory groups. Visited groups throughout the world to assess the models for development and particular a government funded delegation Israel to assess the success parameters for new business growth. Part of government “think tanks” on investments in Victoria to look at the use of government funds to stimulate economic growth particularly in regional centres. Part of government/business delegations to India, Turkey and Taiwan to show products and services. Cultural interface he has successfully interfaced to eastern cultures such as Japanese and Southeast Asian senior management and western UK and USA senior management. This has required cultural sensitively while fulfilling the corporate objectives. o He was awarded in 2006 the Kt, OSJ. This local Order of St John is focussed on the Oceania region activities. This group has been helping with PNG and is planning to introduce a new AIDS technology treatment to the region. His career highlights Stan established a Vice Chancellors prize at the ATP for the best new business out of the three main universities USYD, UNSW and UTS in Sydney with Deloitte’s and Freehill’s funds One successful; company from the University of Sydney in his program was selected to attend the Stanford University Global E challenge and they won the ecommerce prize of 150,000 USD.

Sydney, Australia
Manchester, United Kingdom
Kuala Lumpur, Malaysia
Boston, United States of America
Tokyo, Japan

Global Partner preferred location
City: Sydney
Country: Australia

To contact Stanley Jeffery (EGP), please forward an email to the Academy of Business Strategy.




GEOGRAPHICAL LOCATION: San Francisco (United States of America)
San Francisco Bay Area, commonly known as Bay Area is in California. The geographical area extends from San Francisco in North to San Jose in south. The area is made up of 9 counties namely Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma. Santa Clara and Marin counties appear in the top 25 list of wealthiest counties in the nation. East bay, part of San Francisco Bay Area consists of cities like Oakland, Hayward, Fremont, Berkeley and Richmond. Both San Francisco and Silicon Valley, known for its technological innovations and some of the largest technology companies are within proximate distance to Fremont City. Silicon Valley is unchallenged global leader in high technology. Bay Area has more successful technological companies than the rest of the world. The technology industry has started flourishing with the founding of Hewlett-Packard in 1939. Bay Area is also home to Stanford University, one of the top 5 universities in the world. Several of the top tech companies have its founding roots at Stanford University. Apple, Intel, Oracle, Cisco etc. are some of the leading technological companies of Bay Area. Bay Area is also home to largest concentration of technology jobs in the world. Palo Alto, part of Bay Area, is home to some of the leading Venture Capital firms in the world. Kaiser, the largest and leading HMO health care provider is also found in Bay Area. Napa and Sonoma are very well known across the world for producing wines.

Today, Silicon Valley is the center of innovation in multiple functional areas. Silicon Valley is role model of the entire world for technology industry. Many countries, governments in the world are trying to replicate the success of Silicon Valley. Silicon Valley is leading creator of technology jobs in the entire country. Silicon Valley has most comprehensive eco-system for innovation in the entire nation. Rest of the world is envious of Silicon Valley’s eco-system of venture capitalists, entrepreneurs, technology innovators, leading technology companies, technical talent, research and development, university system. For year 2011, Silicon Valley attracted approximately 40 percent of venture capital in the entire nation. In terms of dollars amount, this equates to approx. 2.7 billion dollars out of total venture capital of approximately 7 billion dollars in the entire country. More Mergers and Acquisitions happen in Bay Area than anywhere in the world. Today’s leading companies like Apple, Google, Intel, Facebook, Twitter, Zip Car, Tesla etc. are founded in Bay Area and have their headquarters in Bay Area. Bay Area is home to some of the best companies like Cisco (best IPO of 1990-2000), Google (best IPO of 2000-2010) etc. Silicon Valley attracts the best technical talent in the world. If you need to find the best talent, you have to be in Silicon Valley. It is very well known fact, most number of technical job openings are in Bay Area, which is easily visible by looking at technical jobs count on any of the career websites. For year 2010, 25 percent (approximately 30000) of patents granted in US belong to California. Even in this 30000 patents, San Jose, Sunnyvale, Palo Alto, San Francisco, Fremont and Cupertino cities produced most number of patents, which are all part of Bay Area. Universities like Stanford University, California state university system spur innovation in Bay Area. Alumni of Stanford University include 30 billionaires, which indicate the innovation and entrepreneurship creation by universities in Bay Area. Bay Area is also geographically well connected to the rest of the world. It has 3 major airports, San Francisco, Oakland and San Jose. It has San Francisco and Oakland ports. For local transit, BART (Bay Area Rapid Transit) is there to commute passengers between San Francisco and rest of the Bay Area.

Silicon Valley has bright future. Silicon Valley has a huge potential to continue as technology innovation center of the world. In addition to technology world, it has potential to innovate in other areas as well. Some of the areas that are already taking incubation include green tech, bio-medical etc. Some of the most innovative technologies are invented in Bay Area and will continue to do so. Tesla, an electric car company has its headquarters in Bay Area. Genentech, an innovator and leading vendor of medical products has its roots in Bay Area. Significant investment is being made in Smart grid companies of Bay Area. As of late, water conservation projects of Bay Area are attracting a lot of funding. Bay Area is increasing focus on newest areas like conservation, efficiency, water recycling, solar energy, biotechnology, space technology, mobile technologies, social networking etc. Bay Area is at the forefront of innovation in of newest areas in the past, present and going forward. Bay Area also attracts some of best talent from the entire world. People living in Bay Area are from diverse communities, are highly educated and hard working. Bay Area also attracts the large number of immigrants, who are highly educated, talented and experienced. Average salary in Bay Area is higher than rest of the country. The eco-system in Bay Area fosters innovation and risk-taking. Every year most number of new start-ups are started in Bay Area, compared to any other part of the world. Bay Area attracts most number of immigrants with diverse background, education, skill set and experience. It is every day sight; most of the people talk, think and look for new ideas, start-ups, VC deals etc. This is very common sight in Bay Area, unlike anywhere else in the world. Just recently, San Francisco (part of Bay Area) is voted as ‘Cleantech Capital’ of the world. On the flip side, Bay Area is falling behind on infrastructure like roads, bridges, public transportation. Bay Area roads are congested, have poor public transportation and poor public infrastructure. There is urgent need to upgrade and make investments in infrastructure to make it modern and cater with its population growth. Bay Area has the highest housing costs in the nation, comparable to only Manhattan in New York. There are significant plans to invest in high speed rail between San Francisco and Los Angeles. Investments in Solar industry, water conservation, smart grid, electric vehicles etc. in Bay Area looks promising.

Udaya Padmanabhuni
Global Partner status (Associate – Executive – Senior): Executive
Country of registration: United States of America
City of registration: San Francisco

Product Management
Product Strategy
Executive Management
Team Leadership
Software Architecture
Software Development
Networking and Telecommunications
Leadership and Teamwork
Leading Cross functional teams
Start-up and Fortune-20 companies experience

Software Industry
Network Industry
Network Management
Insurance Industry
Embedded Systems
Software Development Services
Management and Executive Leadership

MBA – California State University
MS – California State University
Bachelor of Engineering – University of Madras
CCNA – Cisco Systems

Quest Software
Cisco Systems
Rohati Systems
iPolicy Networks
Instant Tax Service
Instant Notary Service


I received my Bachelor’s degree in Computer Science from University of Madras. After completing my under-graduate degree in Computer Science, I started my career in software development in a company called iPolicy Networks, India. I started as Software Developer and eventually grown to Project Leader during my 3+ years of association with this company. In year 2000, I came to United States and joined Cisco Systems as Software Developer. I made my career progression into a Technical Leader in Cisco Systems. I have pursued Master’s Degree in Computer Science from California State University, Hayward and completed it 2 years, while simultaneously working in Cisco Systems. My career progressed to leadership position in Cisco Systems Inc. After I started handling leadership position in Cisco, I started my MBA (Transnational Executive MBA) degree with California State University, East Bay. This involved executing several Management Consulting Assignments for several clients across Asia, Europe and United States. After I completed my MBA degree, I transitioned into Product Management role in Cisco Systems. In 2008, I moved to a start-up company (one of first employees in the start-up) called Rohati Systems, a venture backed start-up company. At the end of 2009, due to our success as a start-up, Rohati Systems ended up in successfully being acquired by Cisco Systems. I joined back Cisco Systems as part of acquisition and worked there till June 2011. In Jun 2011, I joined in Quest Software as Director of product Management in their Networking Business Unit and am responsible for a portfolio of products in the business unit. I am currently working as Director of Product Management at Quest Software.

Fremont, United States of America
San Jose, United States of America
San Francisco Bay Area, United States of America
Hyderabad, India
Bangalore, India

Global Partner preferred location
City: San Francisco
Country: United States of America

To contact Udaya Padmanabhuni (EGP), please forward an email to the Academy of Business Strategy.




Prior to the initiation of economic reforms and trade liberalization 32 years ago, China maintained policies that kept the economy very poor, stagnant, centrally controlled, vastly inefficient, and relatively isolated from the global economy. Since opening up to foreign trade and investment in 1979, China has been one of the world’s fastest-growing economies and has emerged as a major economic and trade power. China’s rapid economic growth has sharply improved Chinese living standards and helped raise hundreds of millions of people out of extreme poverty. In 2010, China was the world’s second largest economy, largest merchandise exporter, second largest merchandise importer, second largest recipient of foreign direct investment (FDI), and largest holder of foreign exchange reserves. The global economic crisis that began in 2008 significantly affected China’s economy, especially its external sector. China’s trade (both exports and imports) and inflows of FDI diminished sharply, and millions of workers reportedly lost their jobs. The Chinese government responded by implementing a 586 billion economic stimulus package (largely aimed at infrastructure projects), loosening monetary policies to increase bank lending, and providing various incentives to boost domestic consumption. Such policies enabled China to effectively weather the effects of the sharp global fall in demand for Chinese products. While several of the world’s leading economies, including the United States, experienced negative or stagnant gross domestic product (GDP) growth in 2008 and 2009, China achieved real GDP growth rates of 9.6 percent and 9.2 percent, respectively.

In 2010, China’s exports recovered to pre-crisis levels, and real GDP grew 10.3 percent. The International Monetary Fund (IMF) projects that China’s real GDP grew by 9.6 percent in 2011 and will increase at an average rate of 9.5 percent over the next five years. Some economic forecasters project that China will overtake the United States as the world’s largest economy within a few years, although U.S. per capita GDP levels are expected to remain much larger than that of China for many years to come. Many economists contend that the ability of China to maintain a rapidly growing economy in the long run will depend largely on the ability of the Chinese government to implement comprehensive economic reforms that more quickly hasten China’s transition to a free market economy, and to rebalance the Chinese economy by making consumer demand, rather than exporting, the main engine of China’s economic growth. China faces numerous other challenges as well that could affect its future economic growth (as well as internal political stability), such as widespread pollution, growing income disparities, an undeveloped social safety net, poorly enforced economic regulations, and extensive involvement of the state in several economic sectors. China’s economic rise has significant implications for the United States and hence is of major interest to Congress. On the one hand, China is a large (and potentially huge) export market for the United States. Many U.S. firms use China as the final point of assembly in their global supply chain networks. China’s large holdings of U.S. Treasury securities help the federal government finance its budget deficits and keep U.S. interest rates low. However, some analysts contend that China maintains a number of distortive economic policies (such as an undervalued currency and protectionist industrial policies) that undermine U.S. economic interests. They warn that efforts by the Chinese government to promote the development of indigenous innovation and technology could mean that Chinese firms will increasingly pose a “competitive challenge” to many leading U.S. industries.

Economic reform in China since 1979 has drawn the attention of economists, political scientists, policy analysts, and international investors seeking to understand the sources of this success. ‘China has generally implemented reforms in a gradualist or piecemeal fashion’. Essentially, China has already revised their laws and regulations in order to allow foreign direct investment and attract multinational organizations to invest.
Upon reading Minxin Pei’s given comments, the underlying issue becomes clear: China has greatly misled its people and investors into believing that the country aspires to become a democracy and naturally, endeavors’ to bring about speedy reform of the economic system including, greater liberalization and improvements in regulation as well as incentives for overseas investors. According to Pei, the supposed period of reform since 1979 has in fact been the product of elites’ pursuit of personal agendas, wishing to re-impose the communist way and acquire greater personal power and authority. This inevitably, has led to weak reforms lacking in depth and long-term results that should ultimately be directed toward improving the lives of the Chinese as was seemingly intended thirty years ago. Thus Pei has supposedly given an insight into the realities of the operations of the CCP, and in so doing, warns foreign investors not to be fooled by this, soon to expire, ‘record-beating growth’ and that China will not adapt to the forces of globalization. Foreign investors should expect to receive less than a warm welcome into the Chinese mass market.

More specifically, Pei accuses the Chinese government of:

- centralization and inefficiency
- inconsistency in the implementation of reform
- insufficient liberalization
- corruption, a weak regulatory framework and judicial system
- discrimination, intimidation and abuse of foreign investors by a handful of elites
- most importantly: using evidence of economic growth as justification for these actions and so maintenance – of the status quo vis a vis authoritarian rule.

However, one ought to practice caution with use of Pei’s work as although she gives strong evidence in many cases to support inferences, it becomes obvious that strong over scepticism and undertones of distrust of Chinese socialism are usual throughout her work. For example, in one of her more recent articles, she quotes that China ranked 127th in economic freedom, whereas the Heritage 2006 Index of Economic Freedom ranks China 111th. Pei’s work seems to speak for the majority of US bodies which provide many stark contrasts to Chinese government publications, which continuously prove optimistic, praise communist ethos and shed little light on faults in the system. The US’s position however, often seems bitter at the strong prospect that China shall outperform the US economy in the near-future, also becoming an influential political force on the global scene. The US often waves any progress, (though little) China makes towards WTO integration.

The Fourteenth National Congress of the Chinese Communist Party (CCP) has clearly pointed out that the nature of the economic reform is to change the mechanism of resource allocation, so China can move from a planned to a market economy in which the market plays a critical role in the allocation of resources. Reform of SOEs in particular has been far from satisfactory, and the old system continues to impede the establishment and improvement of the new market economic system.

Although economic reform and decentralization have clearly generated economic benefits for China, it has also been associated with significant problems. It is important to remember that even though the Chinese government has embraced capitalism to an extent, it is still a totalitarian communist government. Perry (2006) proposes that past revolutionary experience still influences current Chinese politics, despite enhanced education of Chinese officials. Furthermore, she articulates the recent increase in public protests within China, which she claims shall spiral, resulting in a turning point in state-society relations resulting in uncontrollable public behavior and ultimately the fall of government. This is an indicator of domestic disillusionment with decades of weak public reform. Shankar claims that ‘Chinese leadership does not include transition to democracy.’

China’s entry into the World Trade Organization

Many use China’s entry into the WTO as an indicator of its future, expecting increased transparency, open regulation and a protection of property rights. Although evidence has been provided of instances when China’s economy has opened to an extent, a report to the US congress, December 2003, highlighted that China’s compliance to the WTO was ‘uneven and incomplete’. China complied well in reducing tariffs though any progress made was offset by more serious violations. For example, a policy of discrimination against foreign investors pursued when the government offered subsidies and tax rebates to domestic producers to lower prices across China, though in many areas, these were rarely granted to foreign investments. As China improves the transparency of its trade regime to meet the standards set by the WTO and gives more secured access of Chinese goods in the overseas market, more foreign investors are seeking to establish export-manufacturing operations on the Mainland.


Foreign investment restrictions persist in non-financial institutions rather than in other domestic industries. For Example, Beijing maintains its ‘tight grip’ on the banking system though undoubtedly has liberalized the insurance sector, and has pleased many foreigners in finally opening up their A-shares. The banking system faces several major problems because the government has granted and guaranteed the state’s majority control of these banks. China’s banking system is regulated and controlled by the Central Government, which sets interest rates and attempts to allocate credit to certain Chinese firms. Ernst & Young estimates that the level of non-performing loans by Chinese banks in 2002 was 480 billion (equal to about 43 percent of China’s GDP), posing a serious threat to China’s financial sector. In Beijing, the party retains power to appoint managers while restraining foreign expertise from the organization if they do not respect the party’s authority. Halbert (2004) argues that loan decisions are made out of political and social considerations, and real interest rates vary depending on these relationships.

Retail banking however is well on its path to opening up; with the market for credit cards now open to foreign issuers such as American Express as of 2004. Distribution and retail sectors have also recently opened up. Though the government is allegedly opening up a variety of sectors, the International Tax Review on China provides one example of evidence of increased restrictions: foreign investments in distribution are now prohibited to wholesale pharmaceuticals and pesticides. On a more positive note, Heritage points out that foreign broker’s are now permitted to own up to 51% of joint ventures. One can argue that the government is vindicating a policy of perceived opening up, when in fact, as Pei supports; the state is tightening its control over foreign investors.

The reform of the State Owned Enterprises (SOE’s) is vital for the achievement of China’s economic reform. Without the SOE’s reform, Kawaga states that China’s problems with budget deficit and inflationary instability would have a severe impact upon the national economy. Domestic, as well as foreign businessmen have gained the right to import and export on their own, and to sell their products with a lower degree of bureaucratic costs and procedures. These reforms strengthened the regulatory framework and have increased investor confidence in the Chinese market.


As Pei mentioned, in China, mixing command and control with embryonic market forces enables the Communist party to tap efficiency gains from limited reform to sustain the unreconstructed core of the old command economy. You can conclude that, some stakeholders, particularly the social and political elites have tremendous interest in maintaining the old system. If these stakeholders, or ‘elites’ cannot take into consideration the interest of the entire society as primary importance, they will use all kinds of excuses, including political ones, to hinder the progress of reform and restructuring. As such, the reforms face enormous resistance. It is widely accepted that corruption obstructs growth by deterring foreign investment. Many foreign investors face difficulties in China due to inconsistency in rules and regulations which ultimately endangers the democratic system and the rule of law, as well as property rights. It is important to realize that Chinese literature itself is full of condemnations of corruption on the part of officials, where alleged “gifts” are actually forms of extortion and bribery.

In 2005, The Wall Street Journal reported that the “financial system is plagued by bad debts, lack of transparency, corruption and other abuses.” A recent case of organized corruption was uncovered by the Economist Intelligence unit where municipal officials often awarded approval to foreign-invested projects, after their children were granted places in foreign schools. China has been likened to Japan at the beginning of their period of reforms, which experienced much corruption, particularly in the breach of property rights. Today however, China’s corruption has spiralled out of control with the forces of globalization and so have relatively done much greater harm to firms with property rights.

The world economic forum predict that soon foreign investors will provide a challenge to state corruption and lack of transparency in regulation as the economy liberalizes. Continuous reform, particularly of the banking sector shall be brought about by Western demands for transparency and also from Chinese firms if they are to withstand competition from increasing foreigners. Further reforms in these areas should also boost China’s ability to attract foreign investment. This shall all soon be true for the currently stale service sector.

Human rights in China

In addition, the freedom of press and expression is being challenged. As Pei mentioned, even as China enters the information age, Beijing is acting by ‘closing outspoken newspapers and media, penalizing dissenters and intimidating search engines such as Google and Yahoo to help police the internet’. Skype for example has been banned in China, along with many VOIP call companies. The Governments human rights record has come under much scrutiny and criticism from International bodies, such as the UN, yet China denies claims of unfair treatment. Recently, Yahoo was been accused of providing evidence to Chinese authorities that led to the imprisonment of two Chinese Internet users, including a journalist who was sentenced to 10 years in prison.

Manufacturing and Technology operations in China

China’s incredible, double digit growth rates throughout the 1990’s until 2006 have been largely based upon the countries advantage of supplying cheap labor. Domestic and foreign companies have exploited this seemingly unlimited resource in the low technology sector. This Mass production has seen the spread of Chinese goods across the developed world at exceedingly lower prices. All developed nations have undergone a period of transition from reliance upon secondary to quaternary industry. For China to develop to a similar extent there is a need to tackle the issue of substandard high-technology business activity.

FDI has been directed into the low tech industries that require minimal spending on research, less skilled labor and advanced equipment. In 2002, only 20 percent of Chinese exports were high tech and over 85 percent of the generated revenue was taken by foreign MNC’s. Li and Fang (2003) provide reasons for China lagging behind in their technological development, including financial system instability and Government secrecy.

However, there are an increasing number of cases that indicate that more MNC’s are willing to invest in technological upgrading in China. The clearest example is in the semiconductor industry. Shanghai is soon to open 7 new plants, making China the second largest semiconductor manufacturer in the world. Supporters argue that with salaries for engineers in China up to ten times lower than in Silicon Valley, USA, at US 15,000, China will soon hold a significant cost advantage over its main competitor. Yet, in 2006, China’s revenue from this industry of US 2.9bn is dwarfed by the USA’s US 71.2bn returns. China also fails to match the USA on its level of spending in semiconductor research, with investment of US 14bn compared to the USA’s US 238bn. This hinders China’s ability to compete on quality rather than on price alone.

Other examples of High-tech business entering the Chinese mainland include Microsoft’s Beijing centre that is researching advanced Virtual reality. Oracle has recently expanded its 4 operations in China, with their staffing being doubled to over 800 since 2002. Arnold indicates that, although Chinese is now attracting the global brands, Southeast Asia is also competing for high tech business. MNC’s are realizing that countries such as Vietnam are matching China, or in the case of Malaysia, superseding China in the advancement of technology. Malaysia has invested heavily in the Multimedia Super Corridor, a hub for IT and technology innovators.

The Chinese national government is now making changes to accommodate the future potential growth in the high tech sector. In 2006, only 1.2 percent of the countries’ GDP will go into R&D. This is planned to be increased to 2 percent by 2010, and 2.5 percent by 2020. 2.5 percent will be equal to an investment of US$ 110bn, which puts China in the same level of spending as the USA and Japan.

Gow’s (2005) study of R and D investment in the EU gave a comparison with China. Gow found that China’s spending in research is growing at nearly 5 times the rate of the EU’s. This entails that China will soon be level with the EU in terms of technology. With 2 million graduates and 465,000 science and engineering degrees awarded in 2005, there is great potential for technological advancement.

As China’s rate of production increases steeply, the country with the worlds largest population has a ‘dire shortage of highly skilled labor’. This labor shortage is also a problem linked to the previously described under-developed technological sector. A report by McKinsey shows 8.5 million graduates with 7 years experience. The interviews of 83 HR professionals concluded that fewer than 10 percent of the graduates are able to succeed in professional services and high tech manufacturing. The problems cited by Farell and Grant (2005) are the bias to theory over experience in university, along with the language barriers in interviews. This puts the Chinese applicants at a severe disadvantage to foreign recruits.

A significant problem in China is the size of the country. Fewer than 25 percent of graduates are situated near to an international airport. The area surrounding airports is where there will be a higher concentration of international business, therefore disconnecting the labor pool from the businesses. China’s vast cheap labor source gives China some breathing space to address this issue which could be the main obstruction to a shift from a low technological to high technological economy.

The shortage has triggered a boom in training aimed at bringing the domestic workforce up to the skills levels seen in the developed nations. There are two polarized groups of training firms, MNC’s and Domestic companies. The International companies providing in-house training, such as Motorola’s university, tend to have training programs that are not adapted to the Chinese market. The case studies are irrelevant and the teaching is usually in English, thus limiting the learning ability of the trainees. In contrast, the Chinese companies can provide localized training. However, the Chinese trainers are inexperienced with global business themselves, so provide substandard training. The lack of Bilingual trainers is the major hindrance to the growth of quality training programs in China. The Government needs to create quality control mechanisms to stop the inconsistency.

Currently, the Multi-national firms are investing more than the State Owned Enterprises (SOE’s) in training employees. The State Owned Assets Supervision and Administration (SASAC) set training goals for training in 189 SOE’s by 2008.

Breitenstein (2005) found from their research that there was no significant shortage of skilled labor to fill senior managerial positions. The problem lies in middle management where the applicants lack the experience of MNC activities and the skills to integrate successfully into a foreign company. The main areas covered by the training are customer service, HR, language and strategic management. These programs equip the mid to senior management in working in the global markets.

One key source of skilled labor that is slightly easing the tension is from Hong Kong. As the Hong Kong economy has slowed in recent years, top employees have reconsidered the prospect of increasingly attractive vacancies in economic centers such as Shanghai and Beijing.

A serious issue that has recently come into the existence is the increasing salaries needed to attract limited skilled labor supply along with unskilled labor supply. This resulted in escalating costs for firms operating in China where the belief of virtually unlimited supply of cheap labor no longer held true, giving away one of the main competitive edges to invest in China. Goldman Sachs economist studying labor costs in China have described this as “an end to the golden period of extremely low cost labor in China”. In the past three years there has been over 25 percent increase in wages, especially in foreign manufacturing firms. Labor shortages are forcing companies to the increase their wages and benefits. In turn the companies are unable to swallow the higher costs, turning them to look for opportunities in other low wage Asian countries.

Wage rises are also resulting from Chinese and migrant laborers demanding better wages and benefits. In cities such as Beijing living costs are more expensive then the country side, requiring the company to pay higher wages to keep their workers from returning to their hometown. Recently wage increases, better working conditions and benefits have been given due to demands from the workers. Workers are gaining power to negotiate higher pay due to labor shortages to the extent where recruiters are dispatched to find workers in the country side compared to previously workers coming looking for work. The demands are motivated by laborers being unable to save money and will move anywhere with higher pay and benefits. However the increase has still not satisfied the labor market which has turnover of 15 percent in 2004 compared to 7 percent in 2001. Foreign companies are offering over 50 percent pay raises but are still failing to retain the workers.

With the implementation of the Labor Law Contract in China, it is predicted that the wages and firm’s cost will increase. The fears of China’s Currency appreciating has also effected investors and manufacturers to reconsider production plants to other low labor countries such as Vietnam and Cambodia as it can eat into their profitability. Jonathan Anderson, the chief Asia-Pacific economist for UBS said, “But you’re no longer going to be talking about China having labor so radically cheap that it will capture all the investment flows. This is an opening for Vietnam; it’s an opening for India and Cambodia.” For example a factory worker in Shanghai, China, earns a minimum wage of USD70 a month and with benefits can go up to USD200 while in Ho Chi Minh City, Vietnam the minimum wage is USD50.

However the increases in wages are not uniform across the country. Provinces away from the coastal areas and main cities are still low-cost labor areas. Many companies have already relocated to avoid the wages and benefit increases. This has also given opportunity to open up new markets. However the Chinese government is also looking into improving rural life. The costs might rise depending on the policies set. These policies are to aid the farms by eliminating agriculture tax hence the problem of labor shortages and skilled employees might arise as they stay away from factory jobs. However, the increase in wages and total costs incurred are smaller than that of the major coastal cities.

Wage increases severely reduce the competitiveness of China as a manufacturing hub. Through its rapid growth, a possible threat to the Southeast Asian Nations was assumed. However in-depth study by United Nations Conference on Trade and Development shows that China is not diverting FDI from the rest of Southeast Asia. It argues that China is helping them attract more FDI in the integrated production networks. The study, an econometric analysis, looked to assess whether China’s FDI growth effected the seven Southeast Asian nations suggests no significant effect.

Other research by Grant Thornton International shows that the growth in Chinese economy has affected countries in this region varyingly. Countries in Asia benefited from some aspects of China’s economy such as cheap labor, cheaper imports and increased opportunities. The negative effects were the increased competition in general and with labor. More specifically Malaysia competes with China in three manufacturing goods, and some capital goods. Though Malaysia suffered decreases in a few products it did improve its competitive edge in focusing on other issues apart from cheap labor. Thailand and China’s competition lies with light manufactured goods. However studies show that Thailand has improved in the industry and has not lost out to China. Indonesia’s industry has only furniture in common with China was there has been some indication of loss to China; however its other industries were not effect by China. Vietnam in comparison competes with China mostly for clothing and has shown improvements as its labor costs are still lower than that of China. Singapore however seems to have been hurt most by China’s rapid growth. From the other blows the economy took from SARS and the Financial Crisis, the recovery was cut short with the rapid growth of China’s economy. Many multinational companies which held Asian headquarters in Singapore moved to China. Singapore experience unemployment rates unlike before.

With many varying effects China’s recent growth is inevitable the region will be affected in some form. While China is growing it is also dependent on the region for its growth. Newsweek summarized it as ‘China has become a hungry consumer.’ While focus is given to movement into China, much of China’s growth in manufactured exports, especially in electronics, incorporates components produced in surrounding economies. In some cases the cheaper labor available in countries such as Vietnam are being utilized by Chinese companies for their economic benefit of lower costs. China has made investment promises to Philippines for USD1.7 billion in investment and loans and also to USD10 billion to Indonesia. China’s investments in Southeast Asia have grown over 30 percent to USD 106 billion in the past year.

In recent years, the government has gradually liberalized its restriction on FDI in order to reap the rewards of foreign investment: technology transfer, modern management skills, and foreign exchange. However, the perceived economic and political reforms implemented have not necessarily had the desired outcomes. The National Government has been accused of only partial reformation, especially in the financial sector. A clarified financial and legal structure is yet to be constructed, leading to inconsistencies and uncertainties in the investment sector. Foreign businesses are being deterred from entering the Chinese markets because of this image of high risk investment.

Business Monitor International (BMI) support Shankar’s prediction that next year, side by side with continuous liberalization, the Chinese state and its bureaucratic apparatus will continue to yield enormous power in guiding the direction of the Chinese economy’. BMI forecast that investments next year shall be politically risky ranking China 74th; below Japan, Malaysia and Laos; but ranked just above Pakistan and Bangladesh.

Another cause for concern is the Country’s strict censorship laws. Companies such as Google and Yahoo have fallen prey to the ambiguous regulations regarding media coverage.

Arnold (2006) describes the problem of an under-developed technology infrastructure in the Chinese industrial markets. China’s remarkable growth since the early 1990’s has been based upon mass production at minimal costs. As China looks to move into higher added value industries, it faces the problem of a lack of technological foundations. Reasons for this have been the incumbents, results of state ownership and a poor private sector that is unable to fund innovative research and development. There has, however, been significant growth in the semiconductor industry. China is now only 2nd to the USA on production volumes. There are also other examples of frontline innovation occurring within China’s metropolises, such as Microsoft’s Beijing Institute researching Virtual Reality. China may be quickly performing technological transfer from global companies, yet it is still being challenged by ASEAN. Intel’s move into Vietnam and Malaysia’s Multimedia Super Corridor are both examples of high-tech business choosing Southeast Asia over China.

Coupled with the poor technological standards is the shortage of skilled labor. Analysts have warned of a lack of suitably qualified employees to operate within global Multi-national firms. Training has grown in both domestic and foreign owned business. The supply of quality training is still relatively weak, as there are language and cultural barriers. The National Government has set targets to implement training in over 189 SOE’s by 2008, yet with no quality control mechanisms in place the quantity of training is not necessarily a good indication of improving skills.

As the supply of highly skilled labor fails to meet the demand, wages have been on the increase. Living standards and expectations have risen, and negotiation power of employees has been strengthened. These factors combined have seen wage raises of up to 25 percent. Many businesses have now made moves in to the ASEAN markets, where minimum wages have undercut the Chinese Mainland. Vietnam is receiving an increasingly high level of FDI as it upgrades its technology and skilled labor supply, whilst maintaining relatively low labor costs.

Arnold states that China has had a varied impact upon Southeast Asian Nations. As China’s economy grew, many MNC’s left SE Asia, especially Singapore, for the Chinese Mainland. The following effect was a decline in FDI in specific industries, particularly the light industries. However, countries such as Malaysia have benefited from supplying China with an increasing demand of electronic components. China has put pressure upon ASEAN Nations to shift into higher added value sectors. As long as they continuously improve their technological development, these Nation’s can retain their market share.

In summary, investing in China involves numerous risks with the uncertainty and instability of the financial and legal system. Since the WTO accession, China has implemented reforms, to varying extents. An investor needs to be flexible to changes in regulations in order to survive. The instability will remain until the infrastructure is at a global standard. Undeveloped technology and labor issues are still hindering the progress of China in the global economy. The manufacturing sector has seen the worst of the problems, although other sectors are showing signs of progress. Our report recommends that in order to see positive outcomes, long term investment is required, e.g. Microsoft’s successful development. China is gradually losing its cheap labor advantage to Southeast Asia, especially Indochina, yet is bridging the gaps in quality production. Investment into China’s tertiary, high technology industries is likely to see good returns in the coming years. Investing in China is highly dependent on the various sectors foreign firms wish to invest in. Careful consideration into specific sector potential must be examined before deciding on China in contrast to other emerging markets.

China’s economy has shown remarkable growth over the past several years, and many economists project that it will enjoy fairly healthy growth in the near future. However, economists caution that these projections are likely to occur only if China continues to make major reforms to its economy. Failure to implement such reforms could endanger future growth. The global economic crisis has demonstrated to the Chinese government the dangers of relying too heavily on foreign trade and investment for economic growth. That dependency made China’s economy particularly vulnerable to the effects of the global economic downturn (discussed in more detail below). China does not allow its currency to float and therefore must make large-scale purchases of dollars to keep the exchange rate within certain target levels. Although the renminbi (RMB) has appreciated somewhat since reforms were introduced in July 2005, analysts contend that it remains highly undervalued against the dollar. Economists warn that China’s currency policy has made the economy overly dependent on exports and fixed investment for growth and has promoted easy credit policies by the banks. These policies may undermine long-term economic stability by causing overproduction in various sectors, increasing the level of non-performing loans held by the banks and boosting inflationary pressures. SOEs (State Owned Enterprises), which, despite reforms, account for a significant amount of Chinese industrial production, put a heavy strain on China’s economy. By some estimates, over half lose money and must be supported by subsidies, mainly through state banks. Government support of unprofitable SOEs diverts resources away from potentially more efficient and profitable enterprises. In addition, the poor financial condition of many SOEs makes it difficult for the government to reduce trade barriers out of fear that doing so would lead to widespread bankruptcies among many SOEs and unemployment.

China’s banking system is largely controlled by the central government, which attempts to ensure that capital (credit) flows to industries deemed by the government to be essential to China’s economic development, especially SOEs. It is believed that oftentimes, SOEs do not repay their loans. In addition, the government sets interest rates for depositors at a very low rate, often below the rate of inflation, which decreases household income. On the other hand, low Chinese interest rates greatly benefit Chinese industries. Some economists claim that this system constitutes a transfer of wealth from Chinese households to Chinese companies, which, it is claimed suppresses Chinese consumer demand and encourages over-production in various Chinese industries. Such policies are believed to have contributed to widespread economic distortions in China. For China’s Communist Party leadership, a growing economy is its main source of political legitimacy. However, every year numerous protests occur in China over a number of issues, including pollution, government corruption, and land seizures. A number of protests in China have stemmed in part from frustrations among many Chinese (especially peasants) that they are not benefitting from China’s economic reforms and rapid growth, and perceptions that those who are getting rich are doing so because they have connections with government officials. A 2005 United Nations report stated that the income gap between the urban and rural areas was among the highest in the world and warned that this gap threatens social stability. The report urged China to take greater steps to improve conditions for the rural poor, and bolster education, health care, and the social safety net. It is estimated that 300 million people in China (mainly in rural areas) lack health insurance, and many that do have basic insurance must pay a significant amount of medical expenses out of their own pocket. The lack of the rule of law in China has led to widespread government corruption, financial speculation, and misallocation of investment funds. In many cases, government “connections,” not market forces, are the main determinant of successful firms in China. Many U.S. firms find it difficult to do business in China because rules and regulations are generally not consistent or transparent, contracts are not easily enforced, and intellectual property rights are not protected (due to the lack of an independent judicial system).

The relative lack of the rule of law and widespread government corruption in China limit competition and undermine the efficient allocation of goods and services in the economy. China maintains a weak and relatively decentralized government structure to regulate economic activity in China. Laws and regulations often go un-enforced or are ignored by local government officials. As a result, many firms cut corners in order to maximize profits. This has lead to a proliferation of unsafe food and consumer products being sold in China or exported abroad. Safety laws led to a massive recall of melamine-tainted infant milk formula that reportedly killed at least four children and sickened 53,000 others in 2008. The level of pollution in China continues to worsen, posing serious health risks to the population. The Chinese government often disregards its own environmental laws in order to promote rapid economic growth. According to the World Bank, 20 out of 30 of the world’s most polluted cities are in China, with significant costs to the economy (such as health problems, crop failures and water shortages). According to one government estimate, environmental damage costs the country 226 billion, or 10 percent of the country’s GDP, each year.

The Chinese government estimates that there are over 300 million people living in rural areas that drink unsafe water (caused by chemicals and other contaminants). Toxic spills in 2005 and 2006 threatened the water supply of millions of people. China is the largest producer and consumer of coal, which accounts for about 70 percent of China’s energy use. In October 2009, China’s media reported that thousands of children living near smelters had been found to have excessive amounts of lead in their blood. Although growing environmental degradation has been recognized as a serious problem by China’s central government, it has found it difficult to induce local governments to comply with environmental laws, especially when such officials feel doing so will come at the expense of economic growth. According to a study by ExxonMobil, China’s energy demand for power generation will more than double by 2030, surpassing U.S. demand by more than one third. In addition, by 2030, China’s CO2 emissions are expected to be comparable to those in the United States and EU combined. The Chinese government is attempting to address several of these areas. In October 2006, the Chinese government formally outlined its goal of building a “harmonious socialist society” by taking steps (by 2020) to lessen income inequality, improve the rule of law, enhance environmental protection, reduce corruption, and improve the country’s social safety net (such as expanding health care and pension coverage to rural areas). In March 2007, the Chinese National People’s Congress (NPC) passed a law to strengthen property laws to help prevent local governments from unfairly seizing land from farmers, and in June 2007, it passed a new labor contract law to enhance labor rights. In addition, the government has scrambled to improve health and safety laws and regulations. The government has also pledged to boost energy efficiency, crack down on polluting industries, and to promote the development of and use of green technology (such as solar power, wind power, biomass). For example, it has set a target of deriving 20 percent of energy from renewable sources by 2020. In April 2009, the government pledged to implement a three-year, 124.4 billion plan to begin the establishment of universal health care plan, expected to be in place by 2020. The Chinese government’s 12th Five Year Plan (2011-2015) states that rebalancing the economy, promoting consumer demand, boosting rural incomes, addressing income disparity (such as boosting wages), promoting the development of the services sector, and expanding social welfare programs (such as education, social security, and health care) will be major priorities.

Rick Vatcher
Global Partner status (Associate – Executive – Senior): Senior
Country of registration: China
City of registration: Shanghai

International M and A and Integrations
International Change Management Facilitator
International Business Turnaround Leader
International Crisis Manager
International P and L Management/Budget Management
International Board Advisor
International Revenue Fraud Investigator
International Sales Management and Organic Business Growth
International Engineering and Manufacturing
International Customer Service and Retention Executive

Financial Services
Life Sciences
Social Networking
Management Consulting

BS Mechanical Engineering – Worcester Polytechnic Institute

Toyota Motor Corporation
Samsung Electronics Co Ltd
PricewaterhouseCoopers LLP
Carnival Corporation plc
Airbus (an EADS Company)
The Boeing Company
General Motors Company
Raytheon Company
Intel Corporation
AstraZeneca plc

Chinese – Mandarin

I went to Worcester Polytechnic Institute and graduated with a Bachelor of Science in Mechanical Engineering with a minor in Software Engineering in 1981. I have also earned my certifications in Lean Six Sigma as a Black Belt in 2000, as a Certified Internal Auditor (CIA) in 2004, and updated my internet marketing skills by gaining a certification as a Certified Guerrilla Marketing Coach in 2010. In addition to my academic course work and training I have effectively managed and improved businesses up to $300MM and 1,300 employees, negotiated, closed and integrated M and A transactions of up to $500MM totalling more than 1 Billion USD, prepared businesses for an IPO and sale, Learned how to communicate in a number of languages while living 10 years outside the US, jumped into crisis situations and quickly stabilize them, implemented large scale culture shifts within global businesses. My first job out of college was as a FORTRAN programmer within the manufacturing applications department at Computer Vision Corporation (CV). I remained with CV for sixteen years (1981-1997) where I was routinely promoted and given more responsibility. The additional positions I held included roles in sales, marketing, and engineering followed by P and L business unit management roles as the VP of Software and Services Asia Region (50MM P and L +180 employees) and VP of Software Services and Consulting EMEA (200MM P and L + 320 employees). Within 24 months we doubled revenue and were contributing +35MM in EBITDA. During my last year with CV I was asked to help prepare the business for sale and to begin meeting with a number of potential financial and strategic partners. We successfully sold the business to Parametric Technologies Corporation in 1997. CV Asia was also where I developed my core business management philosophy of “Reach, Teach, Equip and Empower” which I have utilized ever since. Following my time at CV, I joined a small Boston company by the name of Inso Corporation as the VP of International Sales. I developed a sales model for international where we sold direct, through partners and via OEM’s. International revenue grew as well as the interest in the technologies of the company resulting in the Board of Directors deciding to break-up and sell off the different product lines while maximizing the return to the shareholders. While at Inso I was heavily recruited by Raytheon Corporation who was looking to diversify and generate more of its business from commercial operations vs. Defense. Raytheon continued to follow-up with me every other month and I eventually took a meeting in January of 1999. I joined Raytheon soon afterwards as CEO and Chairman of the Raytheon Marine business. This was a business which had not been profitable in 10 years and was losing 25MM annually. My recommendation was to do an IPO and began working on the S-1 with CSFB while at the same time implementing Lean Six Sigma business wide and recreating how we marketed and who we sold to. We decided to do the IPO on the UK exchange and were soon approached by Barclay Ventures who eventually acquired the business. Prior to the sale in January 2001 we returned the business to profitability actually generating an EBITDA of 14.8MM. Following Raytheon I joined PRI Automation (Semiconductor automation equipment manufacturer) as a SVP and Corporate Officer to help them integrate five acquisitions that they had not seen any synergies from. I brought the five businesses together and we crafted a single product, manufacturing and marketing strategy which almost immediately yielded both revenue and profitability improvements. After about six months we were approached by one of our competitors to merge with them.

I was appointed to the negotiation and integration steering committee and lead the due-diligence and integration sub-teams for finance, sales, manufacturing, and consulting for this billion dollar organization and left the business once the merger was consummated. After PRI Automation I joined August Holdings, Inc. (a PWC company) as a Senior Management Consultant and Crisis Manager where I led significant engagements at:- (2007) Vertex Pharmaceuticals – Interim Operational Excellence Director establishing best practices for reducing the cycle time for delivering new drugs to market.- (2006) 3Com – Interim International Channel Sales Vice President – moved from direct selling to a Channel/OEM distribution model- (2005) Smith and Nephew UK – 70M Carve-out integration steering committee Chairperson. Relocated to the UK to spearhead this complex business extraction and integration project- (2004) PWC Japan – Interim Country Manager (Crisis Manager) following the multi-billion dollar revenue scandal between PWC Japan and Japans largest businesses. -(2003) Thermo Electron – Interim Corporate Development Executive (acquisition integration). On my last project at August Holdings I was working with Softscape, Inc. to prepare their business for an IPO on the UK exchange. I soon joined the business as an SVP of Sales and Professional Services while also leading activities around Sarbox compliance and revenue recognition, establishing a Project Management Office (PMO) bringing all Professional Services projects back to profitability and deployed Six Sigma across the organization. Given the weakness in the IPO market we held back on launching the IPO and began promoting the business to financial and strategic investors culminating in the sale to SumTotal, Inc. in September of 2010. I remained with SumTotal for 15 months following the acquisition to complete the integration and relocation of the business to Gainesville, FL. Then in January of 2012 I was recruited by Carnival Corporation & plc following the grounding of the Costa Concordia in Italy. I reported to the Board of Directors and assisted in the development and review of damage control Press Releases (English, French and Italian), leading an internal audit of the ship’s crew, equipment and bridge operating procedures, conducting similar audits on the other vessels with similar bridge equipment and developed remediation plans to address known weaknesses and gaps. During this process I meet with the BOD regularly to provide updates and make recommendations.

Tokyo, Japan
Johannesburg, South Africa
Turin, Italy
New York City, United States of America
Seoul, South Korea

Global Partner preferred location
City: Shanghai
Country: China

To contact Rick Vatcher (SGP), please forward an email to the Academy of Business Strategy.




GEOGRAPHICAL LOCATION: Johannesburg (South Africa)
The Gauteng Province is for decades the economic engine of South Africa and was built around the discovery of gold and associated industries. It consists of three metros namely Johannesburg, Tshwane and Ekurhuleni and is the smallest and most populated province in South Africa. These three metros are home to approximately 10 million people of which Johannesburg is the largest with approximately 4 million people. The growth in Gross Value Added is in excess of approximately 4% per annum over the next couple of years. The contributions to Johannesburg can primarily be allocated to the largest sectors (ranked by contribution), namely Finance, Insurance and Real Estate; Manufacturing; Wholesale and Retail; General Government and Business Services. When looked at the growth rate of the sectors, the sectors that proved to have a high growth rate are Construction; Finance, Insurance and Real Estate; Agriculture, Forestry and Fisheries; Electrical Machinery; and Mining and Quarrying. Thus, by looking at both contribution and growth, there are a few sectors that play and will play a significant role in the economy of Johannesburg. It is therefore expected that Johannesburg, and the Gauteng Province as a whole, will continue to play a dominant role in the South African economy over the years to come. It is also fair to say that that these three metros can be seen as one region because of their close vicinity to each.

Johannesburg region houses large business for example Eskom, the power supplier in South Africa; Transnet, managing the national rail network and harbours; Rand Water Board, providing potable water to a large portion of the region; most of the mine houses; head quarters of the major banks; etc. The region offers investors opportunities for developing businesses and has a good infrastructure (road network, high speed and normal trains, a strong logistical service such as storage and transport), does have reliable quantities of energy, gas and water; and has a very strong network of supporting industries no matter what sector you are in. Some of the negative factors (but which are currently addressed at strategic levels) are foe example high crime rate, high unemployment rate (especially the youth between 15 and 24 years of age), which is in excess of approximately 40%, the very difficult global economic situation, which has an adverse effect on the export of products and therefore the economic growth of Johannesburg and that of South Africa and the low competitiveness rating of South Africa. A last aspect that needs to be considered investing/developing a business in Johannesburg/South Africa is the labour laws, which have the aim of improving the general working condition of semi-skilled and unskilled workers. Each sector has a Charter with clear industry targets insofar Black Economic Empowerment is concerned. In all government and state owned enterprises, tenders from suppliers or service providers are being evaluated on both their BEE status (10 to 20%) as well as price (90% to 80%) as well as other criteria such as functionality. There are also Industrial Development Zones (IDZ) designated in the region with the aim to attract business in certain areas where South Africa in most cases was importing such products. Another possible purpose for these IDZs is to have a Free Zone in which an investor can have the benefit of local skilled labour and infrastructure while getting the possible advantage of no import/export duties. One of these IDZs is the OR Tambo International Airport IDZ

The future of the Johannesburg region is driven by City of Johannesburg as well as the private sector investing into infrastructure. The Draft “Growth and Development Strategy” for the City of Johannesburg dated 2 August 2011, was published for consultation with the broader stakeholder community. This document highlights the City’s vision and identified a number of goals and associated objectives in order to meet its vision. Below are a few objectives that will assist business in Johannesburg. (Please note that goals and objectives that are not directly linked to business and infrastructure development are not mentioned): Skills development, sector support and infrastructure investments – The support and growth of competitive creative industries – Enhancing the freight economy – The development of green infrastructure insofar demand side management of water is concerned – To reduce carbon emissions and introduce key energy savings – The recycling of waste – To improve mass public transportation. To build a smart city with state of the art technology (ICT)One key subset of the above objectives is the aspect of renewable energy, something that not only contributes to a greener environment but also contributes to a cheaper and more sustainable resource of energy in the long run. Here one would surely look into solar and wind energy. Other types of energy are for example sea currents and the possible discovery of natural/shale gas (although not 100% clean). The mining sector is also exploring new fields such as the mining of rare earth minerals. This seems to be quite economic to pursue in South Africa with an estimate global market capitalization of about 10% over the next 5 to 10 years (China is currently the largest producer of these minerals but have reduced its export to internal demand). Although debatable, one company is projecting an internal rate of return of more than 50% in mining rare earth minerals in South Africa. Another sector in the region that is showing a more integrated industry is that of the Auto sector situated in an industrial zone in the north western part of the province. This hub is developing quite well in that it is housing all supporting industries such as manufacturing, logistics, security and catering. The aim is to establish a market in Sub-Saharan Africa with this industrial area as the base. The Johannesburg region has an large number of large and medium sized businesses covering all economic sectors. There are a number of opportunities in advising such organisations on business strategies: Business strategies can be focused on for example performance based: Identifying input (lead) parameters such as what IT and information management systems/applications need to be put in place; What skills are needed and what would be a suitable skills development plan?; What spend is required for capital layout? Identifying process parameters such as strategies, policies, programmes, budgeting, procedures. What is the expected output (lag) parameters? How can it be measured? What are the limits of these criteria? Similar to the above for expected output – Business strategies can be focused on for example, the product mix – The production of an old product to be marketed to existing clients? – The production of a new product to be marketed to existing clients? – The production of a new product to be marketed to new clients? – The production of a new product to be marketed to new clients? – The above has its advantages and disadvantages – A business strategy could be a blue print how to plan and manage strategic projects? The timing when to do what? An integrated approach is required? How does the decision-making process or gate approval influence the strategy? A business strategy can be to move from conventional products to state of the art technology? How long to continue with the old product? How to plan to transform into an organisation that produces a new product? How does it impact the human resources skills base? In summary, the City of Johannesburg and the broader region offers a solid support base for investors/businesses. It is pivotal the economy of South Africa and will remain in that position for years to come. The city itself in its Growth and Development Strategy for 2040 will facilitate the infrastructure and support services for businesses. Businesses need to transform in order to meet the future challenges. Each business should strive to be highly competitive in its sector.

Stephanus Johannes Coetzee
Global Partner status (Associate – Executive – Senior): Executive
Country of registration: South Africa
City of registration: Johannesburg

General Management
Strategic Management
Decision Making Support
Long-Term Capital Planning
Project Portfolio Management
Programme and project Management
Asset Management
Engineering Asset Acquisition
Life-Cycle and Financial Analysis Modelling
Organisational and Business Process Development

Management Consulting
Consulting Engineering
Real Estate Development and Management
Oil and Gas
Built Environment – Research and Development
Defence Technology and Weapon Systems
Municipal Engineering

PhD Industrial Engineering -University of Stellenbosch
M Eng Construction Project Management – University of Pretoria
B Eng (Hons) Construction Management – University of Pretoria
B Eng Civil – University of Stellenbosch
Diploma in Datametrics Operational Research Cum Laude – University of South Africa

Penny Farthing Engineering (Pty) Ltd
Core Focus (Pty) Ltd
Dubai Industrial City, Tatweer
Qatar Petroleum
Council for Scientific and Industrial Research
Armaments Corporation of South Africa
Tshwane Metro
Arcelor Mittal


After having completed B Eng(Civil) in December 1976 at the University of Stellenbosch, Dr Coetzee started his career with the Iron and Steel Corporation of South Africa. His duties included quantity surveying, planning and design, specifications and tendering, project and construction management. He obtained a B Eng (Hons) (Construction Management) at the University of Pretoria in June 1980. Some of the post graduate subjects are Law of Contract, Operational Analysis (Operational Research, Statistics and Work Studies), Network Analysis (Critical Path Method), Personnel Management and Project Accounting (Financial Analysis and Cost Accounting). He registered as a Professional Engineer with the Engineering Council of South Africa in 1982.In February 1983 Dr Coetzee joined the University of Technology, Vanderbijlpark, for one year where he lectured engineering subjects as well as general and construction management and thereafter joined the consulting engineering firm Bruinette, Kruger Stoffberg as a Senior Engineer (Resident Engineer) on a multi-disciplinary civil and structural construction project. In January 1985 Dr Coetzee joined the City Council of Pretoria (Tshwane Metro) as Lead Engineer with functions such as project management, planning, detail design, specifications, tender documents, contract evaluation and adjudication and high-level contract and site supervision of various municipal projects. Dr Coetzee was promoted to Deputy Chief Engineer: Planning and completed his M Eng (Construction Project Management) at the University of Pretoria in May 1988.In October 1988 Dr Coetzee joined the Armaments Corporation of South Africa as programme manager. Responsibilities were the programme management of the main programme as well as project management of various technology projects. Dr Coetzee was also chairman of technical committee meetings linked to the programme. In November 1990 he completed the Diploma in Datametrics (Operational Research), Cum Laude at the University of South Africa. In September 1995 he became Manager: Corporate Planning with main responsibilities to facilitate the strategic management process including the corporate annual plan, monthly reports and the internal and public annual reports. He was a member of the Personnel Advice Committee and is Hay qualified (job evaluation). In October 1998 he became head of the Policy and Planning Division. Dr Coetzee obtained his PhD (Industrial Engineering) at the University of Stellenbosch in March 2000. It was a research project in long-term multi-project capital planning determining the impact of the final schedule of a portfolio of projects on the client, project management agency and industry. This research resulted in Dr Coetzee being awarded the SASOL (South African Oil and Gas Company) medal for the best postgraduate student in industrial engineering in December 2000. In June 2000 Dr Coetzee joined the South African Council for Scientific and Industrial Research as Manager: Construction in the Built Environment Division. Some projects: Construction industry performance survey (including stratification) taking into consideration views from national, provincial and local government, state owned enterprises, contractors, professionals such as engineers, architects and quantity surveyors – Assisting the Gauteng Province on financial planning how to eliminate housing backlog – Performance management proposal for Technology Innovation Hub – Process mapping of the newly enacted Construction Industry Development Board including a start-up and 5 year operating budget. In May 2006 Dr Coetzee joined Qatar Petroleum as Head: Business Strategy and Systems at its Ras Laffan Industrial City and reported to the city manager. The divisions Dr Coetzee managed were: Business Analysis and Strategy – Strategic management, business processes, business continuity, organisational development including succession and career planning – Management Accounting – Tariff determination of all services and due diligence in respect of life-cycle costing and analyses including IRR/NPV – Quality Management – Managing the organisation’s quality management system and ISO certification – Small IT section – Designing, developing and maintaining in-house business systems. He was chairman of the city’s Business Continuity Steering Committee. This position necessitated a close working relationship with the other departments in the city, namely Port, Infrastructure, Site Services, HSE, Operations, and Industrial Planning and Development. In October 2007 Dr Coetzee was promoted to Manager: Infrastructure Projects Department at Ras Laffan Industrial City. Projects ran into billions of dollars e.g. port expansion, common cooling water system, infrastructure, multi-purpose administration complex, emergency and safety college etc. work included e.g. negotiations, contractual issues, defects, specifications, portfolio planning, etc. This department consisted of three divisions, namely: Project Services Division (three sections, namely Civil/Structural, Facilities/Mechanical/Electrical and Major Projects) – Engineering Services Division (GIS, drawing office, surveyors, permit control and inspections – Infrastructure Business Division (Contracts and Agreements) In June 2008 Dr Coetzee joined Dubai Industrial City LLC (a member of Tatweer LLC) as Director of Operations. This is a real estate development and management project in the order of billions of dollars. Reporting to the CEO of the Company, Dr Coetzee managed the following divisions: Facilities Management and Engineering Infrastructure – IT (supported by Corporate IT) – Catering – Procurement and Administration – Security – Labour Cities including Social Compliance. Upon Dr Coetzee’s return to South Africa in July 2009, he joined a small management consulting and service provider company, Core Focus (Pty) Ltd as Head: Engineering Management. The primary role in this job was to provide technical advice in asset management including life-cycle analyses. Since April 2011 until December 2011 Dr Coetzee was CEO of Penny Farthing Engineering (Pty) Ltd. He reported to the Board of Directors and his responsibilities included the management of civil engineering construction projects, finances and administration, human resources, tendering, plant, vehicle fleet, workshop, HSE and all facilities .Since January 2012 Dr Coetzee is pursuing his career as an independent management consultant in South Africa. He is also lecturing at the University of Pretoria’s Continuing Education in engineering asset acquisition. Dr Coetzee’s experience, skills and capability can be summarised as follows: General management experience in various sectors – Strategic planning – Programme/project and portfolio management – Personnel management – Financial management/management accounting – Strategic management – Long-term capital planning – Problem formulation and problem solving – Asset management – Business process mapping – Organisational development

Pretoria, South Africa
Cape Town, South Africa
Gaborone, Botswana
Windhoek, Namibia
Maputo. Mozambique

Global Partner preferred location
City: Johannesburg
Country: South Africa

To contact Stephanus Johannes Coetzee (EGP), please forward an email to the Academy of Business Strategy.




GEOGRAPHICAL LOCATION: San Diego (United States of America)
San Diego’s fortunes have to a certain extent been driven by their port facilities, and the basing of military installations associated with the ports. The US Navy’s Pacific Fleet headquarters are based here, in addition to the US Marine’s Camp Pendleton. Historically, these have been the major economic drivers of the San Diego economy. Support functions, such as ship building and repair have also contributed to the economy. The port has served as the port of entry for Honda, Acura, Volkswagen, Isuzu, Mitsubishi Fuso, and Hino Motors, for commodity shipments, and also services cruise ships. Manufacturing has grown to include industrial machinery, computers, metal production, toys, and sporting goods. The border between San Diego and Tijuana is the busiest in the world. Tijuana is a source of low cost labor and the location of many maquiladora operations. To support this, there is a strong infrastructure on the US side, consisting of customs brokers, warehouse operations, and freight companies. Tourism has been the third leg of San Diego’s economy, with San Diego being listed as the second most desirable spot to visit, behind Honolulu. The San Diego Zoo and Sea World are two of the most popular attractions, in addition to the cultural and historical attractions. The year round perfect weather helps in drawing the tourists, too. The fourth leg of the economy is agriculture. With the ideal weather, the growing season is essentially year round. San Diego is the 20th largest agriculture center in the US. Primary products include nursery plants, flowers, and avocados .A growing segment of the economy is the technology area, with software, biomedical, telecommunications, and security becoming larger employers.

San Diego is undergoing subtle shifts in its economic drivers. Manufacturing has become the primary source of revenue now. Shipbuilding and repair are still major drivers, while metal products, toys, and sporting goods are also still good drivers. But the technology arena is growing more rapidly than these old line manufacturing companies. Biotech, software, and telecommunications are driving more dollars into the local economy. Tijuana suffered job losses to China, but are starting to see more jobs come back into Mexico as China’s currency inflates and their labor rates increase. This is still the busiest border crossing in the world. The military/defense industry continues to be a key factor in the city’s economic sector, but has dropped to second place bringing more than 13 billion dollars into the local economy annually. The Marine Corps Base Camp Joseph H. Pendleton, the Marine Corps Recruit Depot, Marine Corps Air Station at Miramar, Naval Air Station North Island, Naval Station San Diego, and Naval Submarine Base, San Diego, are among San Diego’s military installations. Tourism still ranks third. Over 26 million tourists come annually to visit San Diego, with the two largest attractions still being Sea World and the San Diego Zoo. Old Town and the Gas Lamp district also draw in tourists. The San Diego Padres and Chargers offer major league sports entertainment. A segment that is growing rapidly is the cruise ship area. Agriculture is still in fourth place, but is still strong with the excellent growing season and the soil conditions in the region.

San Diego has a bright future economically. Manufacturing continues to grow. As long as the military has a presence here, there will continue to be support industries that will bring economic stability to the area. Other manufacturing areas are experiencing strong growth. Biotech, software, and telecommunications are all areas where demand continues to increase. In biotech alone, the aging population will continue to drive increases in medical expenditures, and increase pressure to come up with new, more effective, more cost efficient drugs and treatments. Defense/military spending will continue to be a key driver here, also. And, while defense budgets are facing pressure, it will make sense to consolidate further, which with the size of the San Diego facilities, will favor them in getting more, not less funding. The port continues to be a strong asset to the economy. Auto imports will continue utilizing the port, as will the commodity business. There is every reason to believe that tourism will continue to grow, particularly the cruise ship side. The year round excellent weather will continue to draw people during winter time from other parts of the country. This same weather will also continue to make agriculture a strong element in the local economy. But the most explosive growth for San Diego will most likely come from supporting its neighbor to the south. A third border crossing is being constructed east of the Otay Mesa crossing. This is meant to facilitate continued growth and more border crossings. Tijuana has been targeted by the Mexican federal government to become a center for manufacturing of pharmaceutical and aerospace manufacturing. They have increased their spending on education in the area. They are improving their infrastructure also to support these future expansions. China is facing labor rate increases of 15 percent cross the country, and up to 20 percent in some of the coastal cities. They have stated publicly that they will increase their minimum wage by 15 percent for the next five years. At the same time, they are facing international pressure to quit artificially supporting the renminbi. They have publicly said they would allow the exchange rate to change by 5 percent a year for the next four years. China has been the cheap labor manufacturing country of choice for at least a decade. That is drawing to a close. By the end of 2013, or early 2014, Mexico will have parity or even a slight cost advantage over China. Yes, India and Vietnam offer some low cost wages, too. But, there are infrastructure and regulatory issues that concern US companies looking at doing business there – not to mention logistic issues. By moving production to Tijuana versus China, most companies can shorten their lead-times by two weeks. That two weeks can mean lower inventories, lower inventory carrying costs, shorter lead times to customers, and, faster to market with new items. Besides the generic growth opportunities that San Diego has, because of its geographic positioning as the gateway to Tijuana, it has a strong opportunity to experience explosive growth through the next decade. A strong infrastructure is needed to support this growth, from additional warehouses, to customs brokers, to trucking companies, and companies to link the US and Mexican entities.

Donald Riley
Global Partner status (Associate – Executive – Senior): Executive
Country of registration: United States of America
City of registration: San Diego

Project Management
Operations Organization Analysis
Supply Chain Optimization
Site location analysis
Manufacturing strategy analysis
Make/buy analysis
New Product Processes Analysis
Cost of goods reduction
Communication optimization
Key performance indicator setup

Hair Care

MBA – Xavier University
BSME – General Motors Institute

Pacific World Corporation
Carson Products
General Motors


I attended General Motors Institute, earning a BSME in a five year co-op program. After graduation, I transferred to Delco Moraine, the brake division of General Motors as a Maintenance Supervisor. I was promoted to Maintenance General Foreman. During this time I attended Xavier University, taking evening classes and weekend classes, obtaining an MBA degree with a specialization in Finance. I was recruited to Avon Products as a Management Associate, and moved thru several positions, eventually becoming Engineering Manager. From here, I went to Miller Brewing Company as a Packaging Maintenance Superintendent. Here we implemented a preventative maintenance program which improved plant efficiencies while eliminating annual overhaul programs. Next position was with Ragu Foods as Maintenance Manager, where a preventative maintenance program was implemented, as well as programs to speed up equipment resulting in increased efficiencies. From Ragu, I was recruited to Maybelline Products as Manager of Engineering responsible for automation projects in packaging and processing, as well as maintenance functions. I was promoted to Director of Engineering, adding Industrial Engineering and New Products to my responsibilities. I sat on two Marketing teams, giving manufacturing input to new product launches. Next I assumed responsibility for Planning, Scheduling, Staging, and Weigh Room functions as Director of Plant Planning. As the company reorganized into Strategic Business Units, I became Director of the Powder Business Unit, with the largest number of employees. Next I was moved to Director of Worldwide Quality for the company, including responsibility not only for the plant quality, but also for international operations coordination with licensees. While in this position, the company decided to start an operation in China. I was selected to head up the operation. In addition to being the project manager to get the plant constructed, I was also given responsibility for sourcing of product for the Asia region with the title of Director of Operations. This entailed supervision of third party manufacturing in Thailand, coordination with Marketing personnel in Hong Kong (regional headquarters), plus coordination with China Marketing and Sales personnel. Plant came on stream on time, and within budget. Having a plant in China greatly reduced cost of goods, as China had a 100 percent duty rate on cosmetics at the time. During this time, we also changed sourcing of components for the region, reducing the cost of some of the components by over 60 percent. L’Oreal purchased Maybelline, and I returned to the US as Director of Engineering at Maybelline. Left there and joined Carson Products as Vice President of Operations, responsible for manufacturing, purchasing, and planning. Immediately corrected inventory control issues, and addressed cost of goods problems, and gained responsibility for distribution. The company bought Johnson Products, and I was the point person for the Operations analysis of the purchase. I became Senior Vice President responsible for the Johnson plant in Chicago in addition to the Savannah plant. We were able to bring outside manufacturing back in-house, and also leverage purchasing volumes to improve cost of goods. Research and Development and Quality were added to my responsibilities and I my title was changed to Executive Vice President of Operations. By implementing a value analysis program, working with Marketing, we were able to reduce costs by over 20 percent. Also, plant efficiencies were significantly improved, through a mix of preventative maintenance programs, some small capital investments, and increased measurement of key performance indicators. L’Oreal purchased Carson. Following the acquisition, I was responsible for closing the Chicago operation, and then implementing the L’Oreal system into the Savannah plant. With L’Oreal’s purchasing power, more value analysis savings followed, further reducing cost of goods. We also added the Soft Sheen relaxer products into the plant, increasing volume. L’Oreal decided to close the plant and move production to Canada and Mexico to reduce costs further. I moved to Pacific World Corporation as Vice President of Operations. The company had purchased another company two years earlier, and was still using a plant belonging to the prior owner for injection molding. The decision was to move this production to Mexico, where an assembly operation was already in existence. This required finding a new facility. A new building was selected, and tenant improvements were undertaken to more than double the existing space, with space being reserved for future growth. The project was brought in on time, and on budget. Sourcing of the bulk of the artificial fingernails for the company were coming from four Chinese vendors. These vendors controlled all of the engineering and quality specifications for the product. We hired an Engineering Manager who had a strong background in injection molding, and proceeded to take control of the design of our products. Next we hired a Director of Quality, and started the implementation of a strong quality program. This resulted in significant improvement of the quality of our product, which stopped deterioration of market share. We also reduced our nail vendors from four to two, allowing us to concentrate more with them, and to also become a bigger player, giving us better negotiating power. We were able to reduce our costs by 10 percent by doing this. Following an analysis of make versus buy, we decided to bring some nail manufacturing in house. We purchased equipment similar to our vendors, and started working with different inks and coatings. Using consultants, we discovered a better ink that increased wear of the nails significantly, and learned a great deal about the variables in nail manufacturing, allowing us to pass those standards along to our existing vendors, again resulting in better product. Other cost reduction efforts included value analysis programs to look at ways to reduce costs. Sample results included reducing the glue from 3 grams to 2 grams, reducing the number of trays holding product from three to two through redesign of the trays, and reducing thickness of the board point for the carton. As a member of the Executive Committee, I played a key part in keeping other players aware of operational concerns and issues, while working together to grow the company and EBITDA.

San Diego, United States of America
Savannah, United States of America
Orange County, United States of America
Suzhou, China
Tijuana, Mexico

Global Partner preferred location
City: San Diego
Country: United States of America

To contact Donald Riley (EGP), please forward an email to the Academy of Business Strategy.


If you are interested in engaging the services of any of these or indeed any other Associate Global Partners (AGP), Executive Global Partners (EGP), or Senior Global Partners (SGP), then please kindly contact the Academy of Business Strategy by forwarding an email, or complete a client application form. THE ACADEMY OF BUSINESS STRATEGY CORPORATE WEB SITE

Posted February 10, 2013 by sharonmelissamoore in Miklos Gasz (CBS)

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