Abstract Business Guide Vol. 2 Issue 4 2014

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Disclaimer: The views or opinions presented in this publication are solely those of the writers and do not necessarily represent those of the company. Employees of ABSTRACT MEDIA GROUP COMPANY LIMITED are expressly required not to make defamatory statements and not to infringe or authorize any infringement of copyright or any other legal right. Any such article is contrary to company policy and is outside the scope of the employment of the individual writer concerned. The company will not accept any liability in respect of such article, and the employee responsible will be personally liable for any damages or other liability arising.

ABSTRACT BUSINESS

LOCAL BUSINESS

ARE Watson Duke And The Psa Justified?

Can We Hope For A More Efficient Public Service As A Result Of Recent Industrial Action?

‘S

ick buildings’ is the term used by Public Services Association (PSA) president Watson Duke to describe particular buildings in which public service workers currently work. Over the past few weeks a number of these government offices have been closed due to a failure to meet basic Occupational Health and Safety Standards. It is argued that approximately 5,000 workers are being affected and more than 2,500 have complained of lung and breathing problems, skin rashes, runny eyes and growths in pupils, all of which are linked to poor working conditions. Some of the buildings which have been closed or partially closed include the Central Statistical Office, Port of Spain; Licensing Office; Elections and Boundaries Commission, Chaguanas; and Ministry of Works, Chaguanas; Immigration Office, Port of Spain; National Insurance Board, Port of Spain, Arima and Tunapuna and the Board of Inland Revenue, San Fernando, Chaguanas and Port of Spain. This form of protest is aimed at hastening the footsteps of the government to outfit newer buildings, which were initially carded for public service workers as well as to hold consultations between the union and the relevant government officials before finalizing occupancy.

There is no doubt that the health and safety of public servants must not be placed at risk. Each and every one of them has particular rights according to Occupational Health and Safety standards.

However a debate exists over

Written by Alicia Martin

whether or not the recognition of this right will lead to an increase in worker efficiency. In other words, should working conditions improve or should there be increases in salaries, can we expect an increase in the quality of job performance by the same workers? Will they get to work on time? Will they stay on the job until the official closing time? Will they assume better customer service relations with the public? Will they in general increase their work output? Will these extrinsic rewards lead to greater motivation and in turn greater efficiency?

According to Steers and Porter, motivation “energizes, or causes people to act; it directs behaviour toward the attainment of specific goals; and it sustains the effort expended in reaching those goals.”

While some theorists argue that workers are motivated by extrinsic factors or tangible rewards such as pay increases, working conditions and recognition others focus on intrinsic factors or psychological re-

wards such as self-actualization and a sense of accomplishment. Others provide extrinsic motivation to individuals. Intrinsic motivation on the other hand represents benefits, which are derived from within the individual. According to Maslow’s hierarchy of needs extrinsic motivation, that is the satisfaction of biological and safety needs must be fulfilled before moving on to higher order intrinsic needs such as selfactualization.

Therefore while pay and working conditions are important motivators, they are not necessarily sufficient on their own to produce motivation.

Fredrick Herzberg proposed that there are two categories of motivation: hygiene factors and motivation factors. Motivator factors resemble intrinsic motivators and include achievement, advancement, growth, recognition, responsibility and the work itself. Hygiene factors on the other hand can be likened to extrinsic factors and include pay, company policy, supervisory style, sta-

tus, security and working conditions. Herzberg argued that the absence of hygiene factors would lead to dissatisfaction or de-motivation of workers in the workplace.

A Newsday editorial dated May 17th which, analyzed the recent actions of Mr. Watson Duke, says, “When we move Public Service into the type of accommodation befitting our aspirations, we can demand of them the efficiency and productivity we need to better our nation.” This may however only be partially true given the complexity of motivation.

Indeed other issues such as worker recognition, timely promotions and performance appraisals may also need to be addressed. Furthermore there may be instances where the real life everyday cultures of particular government agencies do not match the larger mission statements and goals of the particular agency. How does one then go about introducing more strategic and positive work cultures? This may call for retraining and resocialization of employees, which may not be an easy task.

These concerns nevertheless do not suggest that the efforts of the PSA are in vain.

The right of workers to exist in safe and satisfactory work environments must be met. At the same time one must not be so naïve as to think that should these problems be fixed a more efficient Public Service would automatically result. Indeed there is need for improvements in a number of areas and ultimately for a balance of extrinsic and intrinsic factors to be addressed for more positive outcomes.

www.amgtt.com • JUNE, 2014 • ABSTRACT BUSINESS

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ABSTRACT BUSINESS GUIDE

LOCAL BUSINESS

Fishing Industry In Turmoil Written by Daniela Nandlal

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trip to the fishing market is truly an experience for your senses. The distinctive scent of raw seafood filling your nostrils, the sound of chatter of all sorts, varying from negotiations to persuasion and of course a glimpse at some of the species that lurk beneath the ocean.

It is at times like these, one can truly appreciate the Caribbean Sea for being far more than just a postcard image. For the fishermen at the market, it is an opportunity to provide for themselves and their families; it’s a livelihood.

However with the recent discussions about oil spills and seismic bombing, all is not well in the fishing industry.

On December 17, 2013 several oil spills were detected. It covered the costal areas of the country's southwestern peninsula and fisher folk throughout the nation are still reeling from the effects of this.

Burton Sammy, a fisherman at the Cocorite Fish market, admitted that both he and his counterparts have noticed a significant decline in business.

They believe it is as a result of false information being relayed to the public. He said “people

will come into the market and tell us not to give them any fish with oil. People are scared because they are misinformed.”

The fishermen argued that if the fish being sold to the public contained oil, why were there no deaths recorded or persons being admitted to the hospitals because of poisoning from consuming the fish. When asked how did they know the persons were not being affected from consumption, Burton simply replied, “Because they return the next week to purchase more fish.”

The men at the Cocorite Fish market are not the only ones to share this opinion.

Fishermen at both Bamboo Fishing Stall and the Carenage Fish market are in agreement that the public is being misinformed about fish poisoning and oil spills.

The seismic surveying (or seismic bombing as the fishermen refer to it) is another issue the fishing industry is facing. Environmental Engineer, Cathy Healy Singh describes the process as “literally discharging thousands of sub-sea acoustic explosions over large areas, which move through the water in all directions, penetrate the seabed and bounce

Despite these factors affecting the industry, the fishermen still have hope that once certain policies and adjustments are made, there is no doubt that the local fishing industry can be revived 2

ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

back giving valuable information to help calculate optimal oil/gas drill points. The problem is that these sub-sea explosions disorientate, scatter, damage and kill fish. “ Despite these factors affecting the industry, the fishermen still have hope that once certain policies and adjustments are made, there is no doubt that the local fishing industry can be revived.

These are some of the suggestions, which the fishermen interviewed expressed to ABG. The first step would be to convince the public that the fish being caught are not affected by the oil spills. Research indicated that restrictions were placed on the Southern coast preventing fishermen from fishing in that area. They are therefore resorting to the North and East coast of the island, areas which are not affected by the oil spills.

Another suggestion was to stop the seismic surveying as it is severely affecting the industry. In addition to having to deal with limited supplies, the fishermen admitted that when they make the journey to sea at 3am, not only are they harassed by pirates but also by the Coast Guard.

There are claims from the fishermen that the Coast Guard are sometimes dressed in ski masks and are abusive while

taking them into questioning.

The men said the situation is not only biased but it also results in them losing out on the day’s catch. One fisherman at the Cocorite fishing market said “it would be much more productive on both parties if the Coast Guard protected the borders, we would get to make a living and they would be helping to protect the Nation’s waters.”

However on the other end of the spectrum, some consumers believe the fishermen have a considerable amount of control over the reviving of the local fishing industry and it lies within the pricing of their products.

Luiciano Gonzales, a vegetarian of over 20 years admits to purchasing fish from the market on a regular basis to support his lifestyle. However he is of the opinion that the constant price fluctuation is a major contributor to the decline in sales the vendors are experiencing.

Oil spills, seismic bombing, misinformation and fluctuating prices all seem to be part of the fishing industry’s problem.

Now that the variables of the equation are identified, what is next for the industry? Are the dying fish on the stall a symbol of the industry’s upcoming fate?

8

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ABSTRACT BUSINESS GUIDE

LOCAL BUSINESS

Moving T&T Fashion forward

By Christopher A. Nathan – Fashion Industry Management Consultant / Director-Styleweek Port-of-Spain

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rinidad & Tobago’s Creative Sector is about to get a boost on November 2nd when fashion week returns to Port-of-Spain. Last held in 2010 at the Hyatt Regency Ballroom, it is believed that the industry is now ready for showcasing T&T fashion merchandise to buyers, investors and the world’s fashion press. UTT now has a world class fashion programme catering to individuals who wish to pursue careers in fashion design and fashion management.

Servol, YTEPP and MIC offer technical courses in garment production and manufacturing technology. The government has engaged a consultant to prepare a Strategic Plan for the fashion industry and the Ministry of Trade, Industry, Investment and Communication (MTIIC) has finally designated fashion an economic sector for national development.

Creative TT was set up under MTIIC with a clear mandate to commercialize the creative industries in Trinidad & Tobago.

Fashion, Film and Music are the three sub sectors identified for development.

Claudia Pegus Designs The Fashion Association of Photo

by Ephraim Hunte Trinidad & Tobago (FATT) was Model Geeta Maraj established in 2007 to support T&T fashion industry develop- jobs for thousands of fashion ment efforts. Since its launch practitioners in design, manumembers of the board have lob- facturing and management. bied MTIIC to get fashion des- In 2010, the honorable Prime ignated its 8th non-energy eco- Minister officially launched nomic sector. Heather Jones, FATT as the representing body Claudia Pegus, Meiling, Peter for Trinidad & Tobago’s fashion Elias, Michele Reis and myself industry. FATT was also instrumet with several ministers of mental in the completion of a Trade, trying to persuade each review of the TTBS Standard of them that there is enough po- for Garment Quality; the bureau tential for fashion to contribute is now exploring the feasibility to the nation’s GDP and create of a sizing standard for Trini4 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

dad & Tobago which I hope will dovetail throughout the wider Caribbean in years to come. A Caribbean Sizing Standard will simplify fashion retail in Portof-Spain’s shopping district and facilitate more intra-Caribbean trade for fashion apparel made in Trinidad & Tobago.

I suggest that all fashion industry development initiatives rolled out by Creative TT get buy-in from industry stakeholders and more cooperation takes place to ensure that projects are beneficial to all segments of the sector. Considerable fragmentation currently exists in the industry and the only way forward is through collaborations and support from the various fashion institutions and bodies.

Properly structured, Creative TT can become the glue that binds the industry together.

Fashion industry ancillary and allied services have to be put in place to support industry development efforts. This can help to distinguish Port-of-Spain as the region’s commercial hub for fashion business activities.

That is the main argument for the establishment of a Fashion District in Port-of-Spain.

The Port-of-Spain International Fashion Centre Proposal was presented to officials of the ministries of Planning and Trade. It calls for Woodbrook to be designated a Fashion District for designer boutiques and ateliers; Dock Road for highend brands, bars, restaurants and hotels; the other fashion strip would be located in downtown Port-of-Spain from Park Street to South Quay; Frederick Street to Piccadilly Street.

The downtown Port-of-Spain fashion district would house the high street fashion retailers such as Micles, Radical Designs, Westport and Bang Bang among others as well as our well-established fabric district. Pioneered

by Jimmy Aboud - The Textile King, the Port-of-Spain Fabric District was established in 1946; fashion designers, tailors and dressmakers from all around the Caribbean still come to Port-of-Spain daily to purchase materials and notions for their businesses. As the Ministry of Planning regenerates East Port-

of-Spain Nathan envisages that small production houses, dressmakers and tailors will set up businesses to serve the fashion district. The ministry may consider establishing a Duty Free Manufacturing Zone in East Port-of-Spain. This concept was successfully introduced in the Dominican Republic; their manufacturing zone in Santo Domingo is considered by many fashion professionals to be the most commercially successful in the region. We all agree that the cost of labour and our work ethic disqualifies us from mass producing fashion merchandise in T&T; what I am suggesting a duty free manufacturing zone for fashion production.

The Fashion Industry Strat.

Plan will no doubt make recommendations about the markets TT fashion should target and the best range of fashion products to be manufactured however, having worked in the industry at all levels since 1997, my gut instinct tells me that our best bet is the luxury resort wear market. The Resort market includes Cruisewear, Jewelry, Hats, Belts, Handbags, Scarves, Sarongs, Swimsuits and Accessories. Recognizing the potential of this niche market, Coco Velvet International Fashion Management will produce the inaugural Caribbean Resort Styleweek at NAPA Portof-Spain in November; just in time for the lucrative Christmas to Carnival season. Participating fashion houses will get an opportunity to unveil their 2015 fashion collections to buyers, stylists and media personnel.

Coco Velvet International will host three Styleweek Designer Searches in Sangre Grande on June 1st San Fernando on June 8th and Port-ofSpain on June 13, 2014 to find ten new fashion designers. They will participate in the CVI Fashion Workshop from June 15 – August 24th during which time they will be challenged to conceptualize, design and develop a ten look resort, swimwear or jewelry collection for a Caribbean market. The top three collections will be selected for showcase at Caribbean Resort Styleweek.

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ABSTRACT BUSINESS

EYE ON FDI

T

Challenges to FDI in T&T

he Government of Trinidad & Tobago actively encourages foreign direct investment with no restrictions or disincentives to investment.

Under the Foreign Investment Act (1990), foreign ownership of companies is permitted and welcomed into the T&T economy. For the period 2014-2016, the Ministry of Energy estimated that US$9.5 billion would be invested by mainly upstream companies in T&T. While this is a favorable upswing, the economy is facing challenges to remain competitive with other oil and gas producing nations in the face of declining gas reserves, high production costs, production slowdowns, and lack of political will to invest in the future of the sector.

In addition, there are barriers that affect the smooth flow of FDI into our shores.

Written by Crystal Cassie

CRIME We cannot bring an investor in T&T, In 2013, Minister of Trade, Inor ask a local investor to invest in dustry and Investment Vasant something that is not available. We must Bharath stated that the crime have available commercial space for rate has not slowed FDI. He said that "We have not come them with electricity, cable and water across any investor who is not coming to T&T because of Value Added Tax (VAT) LIMITED crime. I believe that there are ISSUES COMMERCIAL SPACE many countries in the world According to a Minister in the Bharath noted that there is that have high crime rates, Ministry of Finance and the not enough commercial space like Colombia and Venezuela, Economy, one of the biggest for local or foreign businesses but it has not precluded them constraints that businesses looking to set up in this counfrom getting and attracting face in T&T is the Value Added try. He stated, “We must rebusiness." However, the 2013 Tax Act, which is in dire need member that we are competing Investment Climate Statement of reform. Currently, there is a on the international market. from the Bureau of Economic backlog of VAT which creates There are many destinations to and Business Affairs reported impediments for manufac- which foreign investors can go, that crime continues to be a turers and traders. It creates so we must ensure that we have deterrent to the establishment cash flow problems, hampers some unique selling points. We of new businesses and inter- investments of cash in the cannot bring an investor in national investment. While business, makes it difficult T&T, or ask a local investor to the government has strategies for manufacturers to borrow invest in something that is not to curb the crime scourge, the when demand for money is available. We must have availaimplementation and sustain- high and generally compro- ble commercial space for them ability of these plans are want- mises the competitiveness of with electricity, cable and wabusiness globally. ing. ter.”

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LOW TECHNOLOGICAL CAPACITY T&T’s technological capacity needs improvement. One way to overcome this would be to encourage domestic and foreign private sector entrepreneurs to participate and agree to transfer technological know-how.

By extension, the government on T&T can engage in bilateral trade and investments treaties and institutional reforms to boost technological capabilities.

UNDERDEVELOPED NON-ENERGY SECTOR The non-energy tradable sector is characterized by low growth, which may continue into the future due to lack of externalities in production, forward and backward linkages, entrepreneurship and shortages of learning by doing. Over the last decades, the government of T&T has taken numerous measures directly aimed at encouraging FDI inflows into the nonenergy sectors, including strong tax incentives (bilateral investment agreements, double taxation treaties, and reciprocal regulatory agencies arrangements) and the implementation of free trade zones (FTZs) to facilitate export diversification. Also, the T&T Country Branding and Investment Promotion was developed to oversee the administration of existing industrial parks and promote FDI. FURTHER IMPROVEMENTS IN EDUCATION While the good quality of T&T’s education is internationally recognized, there is room to expand its knowledge base so as to develop new activities and attract more FDI. Government can invest in secondary and tertiary education as well as research and development.

ABSTRACT BUSINESS GUIDE

BIZ HEALTH

An Analysis of Cost Overruns in Local Construction Projects

C

Written by Alicia Martin

hanging physical landscapes is one indication of development. In our country we have witnessed major changes in terms of new roads and buildings over the past few years. However a number of construction projects have suffered from major cost overruns. A 2010 article in the Newsday newspaper noted that a particular construction company had incurred more than $4 billion in cost overruns, with the ill-fated Brian Lara stadium identified as one of the major impacted projects. The same newspaper stated in April 2014 that the Petrotrin World Gas to Liquids Project had amassed 33 cost overruns. The actual construction cost to date was listed as $US400 million while the initial project cost in 2007 was $US160 million. Lately we have seen a number of projects being stopped and restarted.

Demobilizing and remobilizing equipment and human resources usually costs more.

When project expenses exceed the amount initially budgeted, this is considered a cost overrun. In other words the cost of projects can sometimes run over their initial pricings.

One of the major causes of overruns has to do with the

volatility of the construction environment.

For instance when there is a construction boom, there may be a shortage of materials and this may lead to an inflation of material costs. This was the observation of the owner of a construction consultancy firm who recalled a period when the cost of steel and the cost to hire fabricators dramatically increased. Likewise, when many projects are occurring at the same time, there may be a shortage of laborers and this can force contractors to pay higher wages.

It is important to note that the clients, not the contractors, incur these costs. Therefore when demand is high and supply is low, contractors have to pay more for both labor and materials. As a result some contractors prefer to purchase material in bulk and abroad.

Cost overruns are directly related to time overruns.

When projects are not completed within specified times contractors rarely absorb the costs. Both the supply of labor and material affect the pace at which a project is conducted. Therefore apart from labor shortages, inefficient labor can also result in overruns. According to one construction professional who was interviewed, some local

Cost overruns are directly related to time overruns. When projects are not completed within specified times contractors rarely absorb the costs 8

ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

laborers have poor work ethics and this affects project completion dates. According to him, “Chinese workers do 7 day work weeks on average and will work at nights if necessary.” Projects may also be delayed for a variety of reasons including delays in obtaining statutory approvals from the Environmental Management Authority (EMA), Town and Country Planning, Public Health or the Water and Sewerage Authority. These delays may lead to price inflation with regard to labor and material. There may also be a con-

siderable amount of time between the tendering stage and granting of the contract, “If you bid for a contract now and months after or even a year after you now get the go ahead to build, then the prices that you quoted may be affected due to increase in cost of materials.”

Another major issue revolves around bad project planning and programme management. In some cases skilled professionals are not appropriated for projects, particularly government projects.

Oftentimes errors may have been made in the design stages.

ABSTRACT BUSINESS

BIZ HEALTH

Some project managers may simply lack experience and this may show at the point of implementation. Quite separate from a project manager, a quantity surveyor is concerned with a number of construction related activities including risk management, cost planning, value engineering and cost management. According to one project manager from a leading construction company and owner of his own company, governments sometimes lack the skill set to allow for proper quantity surveys. While attempts may be made to use project managers for this function, this may be ill advised since the two positions carry different skill sets and inaccurate initial assessments may result in overruns when the projects have started. Therefore there is the need for more trained professionals.

When projects are not estimated accurately this may lead to inaccurate or unrealis-

tic budgets. Therefore according to one interviewee, “the so called ‘cost overruns’ are in many cases what the ‘true costs’ of the projects should be.” In some cases quantity surveys may not even be utilized at all. On the part of government, this may be done in an attempt to move along hastily with a project in order to impress or pacify members of the public for political gain. In these circumstances old prices may have to be revised. A revised survey may be done on the initial client budget and a new bill of quantities would have to be produced.

Environmental factors such as rain may also lead to time delays and eventually to cost overruns. The Brian Lara Stadium in Tarouba provides one such example. The stadium exists on swampland and this has resulted in a number of difficulties for the contractors in terms of the need to do over backfilling and other remedial

works in an effort to prepare the land.

A further issue, which was noted by a contractor revolved around the issue of poor payment schedules and cash flow from clients, this “causes contractors to make extra claims.

Contractors now need overdrafts and credit lines to finance the projects which makes the project itself more expensive (typically bank loans are charged at 10% per annum on average, therefore the contractor will increase his project cost to cover bank charges).”

While there are many valid reasons for overruns, corruption is also an implicated factor at times. However corruption is most likely to occur at the tendering or conceptualization phase given that there is an intense amount of paper work involved, once the contract has been granted. If a contractor is given information to inform his bidding prices and the project

is over priced to allow for ‘kick backs’ then this is an example of corruption. According to one interviewee, “It doesn’t matter how many systems you have put in place ... if the integrity of the individuals is flawed you will always have some form of corruption, it’s the human factor.” When outdated and improper estimates are made by government agencies and these have to be revisited at the level of Parliament, this opens the room for legitimate increases in bidding prices and loopholes for corruption.

Therefore a number of factors can result in construction cost overruns. It is imperative to remember that this is not just the business of those individuals involved in project management or the owners of construction companies. More critically this is the business of the average citizen given that in most instances taxpayers money is used to cover new costs.

www.amgtt.com • JUNE, 2014 • ABSTRACT BUSINESS

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ABSTRACT BUSINESS GUIDE

BIZ HEALTH

Is Corporate Social Responsibility At An All Time Low?

I

Written by Rhoshenda Ellis

t is of a common belief that companies throughout the world have abandoned their social responsibility in contemporary society. It seems as though companies are more inclined to exploit rather than assist the populace with development.

This lack of corporate social responsibility is being echoed via the stories of poor worker conditions, environmental degradation and workers’ neglect. Trinidad and Tobago has been no exception. Quite often, workers can be seen on work sites without proper safety equipment. Sometimes dust from construction of new buildings causes respiratory problems for the residents of the surrounding areas. More often than not, the company that is responsible for such actions is not held accountable.

The most valuable asset to a business is its human resource.

Anne Mulcahy, an American businesswoman said, “Employees are a company’s greatest asset – they are the competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus and make them feel that they are an integral part of the company’s mission.” When a company neglects its workers or does not provide proper con-

ditions to work in, an employee becomes demotivated and disloyal. A disloyal employee will not sell the company nor portray the company as their own.

Rather, the employee will say negative things about the company, which will lead to bad publicity.

In Trinidad and Tobago, there are laws that govern employees’ rights. Two such laws are the Minimum Wage Act and the OSH Act. However, with stories being published about the working conditions of the Chinese immigrants or death of workers on site due to a lack of safety equipment, it is clear that the respective authorities are not enforcing these laws.

A business’ employees are its greatest assets and so they should be treated as such.

For centuries, the environment has suffered for the sake of development. Companies indiscriminately dump hazardous waste in the waterways or cut down millions of trees to facilitate the construction of new buildings. However, if we continue to allow companies to exploit our environment, the human population will have nowhere to live. Mahatma Gandhi said, “The earth provides enough to satisfy every man’s needs, but not every man’s greed.”

Quite often, workers can be seen on work sites without proper safety equipment. Sometimes dust from construction of new buildings causes respiratory problems for the residents of the surrounding areas 10 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

While some areas are protected by international law to prohibit any damaging activities, generally, the population and by extension the business community does not pay much attention to environmental conservation. We do not recycle enough, we litter our roadways and we do not encourage good agricultural practices.

However, there are laws under the Environmental Act to prohibit such activities but again, this is not enforced. While the environment has the resources to create economic gain for the society, people must be

socially responsible and think about the needs of future generations.

It is important to understand that a business must act in a socially responsible manner. It may cost a few extra dollars in profit but the return on this investment is one that cannot be ignored. Chris Zane, business owner and author once said, “If you can shift your thinking away from merely selling and into building trust instead, even if it costs you a few bucks in profit, you’ll begin to see opportunities you never imagined.”

ABSTRACT BUSINESS GUIDE

MONEY MATTERS

World Cup Fever Fuels Sales

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he globe has been engulfed by World Cup fever and the business community at large is seeing the benefits of it. As one would expect, Brazil is enjoying the fruits of the additional revenue from the impending tourist arrivals.

However, other countries are also capitalizing, Trinidad and Tobago included.

For example, German sport equipment and apparel giant Adidas is experiencing increased product sales by as much as 8% directly related to the World Cup. Adidas is a World Cup sponsor and the provider of the official match ball. Also, the company is kitting out nine teams of the 32 finalists, including former world champions Spain, Germany and Argentina.

A Yahoo Finance article recently stated that Brazilian Brewers are benefitting from increased sales as a 37 percent increase is forecasted during the World Cup. Brazil is a beer driven country and it is common to see beer as a staple at most soccer events.

Trinidad has never been shy about its alcohol consumption and as such many sports bars, pubs and restaurants are capitalizing on FIFA fever with a variety of World Cup specials. Regular water-

ing holes for sport enthusiasts such as Hutt Shutts have promotions offering drinks specials during game times with a plethora of football merchandise being thrown into the fray to encourage sales.

Undoubtedly, team jersey sales are expected to increase as the games draw nearer as fans look to show their support in public. However, that has not translated into big sales in Trinidad and Tobago as yet. For instance, Val, manager at reputable Athletic apparel store Sporty Brands, stated that sales have not picked up much in anticipation of the World Cup. He shared with the Abstract Business Guide that he does believe it will increase as the tournament heats up, but the sales have thus far been relatively slow.

Across the country there has been no shortage of attempts to capitalize on the extravaganza to generate sales.

Even photo studios are advertising photos of customers super-imposed on star football players’ bodies.

Radio and television has been inundated with advertisements that all feature samba music or football content as a means of building on the hype. On a community level, several academies have been

Across the country there has been no shortage of attempts to capitalize on the extravaganza to generate sales.

Even photo studios are advertising photos of customers super-imposed on star football players’ bodies 12 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

utilizing the hype to get parents to enroll their children in camps with the aim of turning them into the next Messi or Ronaldo.

Indeed, businesses would be smart to feed off the football frenzy and get people to spend more money. Sports are emotionally based and finan-

cial enterprises thrive off of things with emotion attached to it. Only time will tell the final figures generated by the hype. However, if the World Cup in Brazil is haing such an effect on local sales, imagine what can be done if we host more sporting tournaments of our own.

ABSTRACT BUSINESS GUIDE

TRUMP CARD

julie harris

Decorated Advertising Executive Julie Harris Shares Industry Insight

I

Written by Daniela Nandlal

am a Jamaican National with regional and international Advertising Experience, currently resident in Trinidad & Tobago.

Some of the roles I fill both past and current: Copywriter, Creative Director, Radio/TV Producer and Brand Strategist.

Short Bio: After graduating from UWI Mona, I started as a Copywriter at McCann Erickson Jamaica Ltd. in 1985. In 1996, joined CGR Communications in Jamaica (a Saatchi & Saatchi affiliate at the time) as Associate Creative Director. I joined Lonsdale Saatchi & Saatchi in Trinidad in 1999 and am currently the Strategic Planning Director/Head of Creative Services. Have written, created and produced advertising for Local, Regional and International markets. Along the way won some Local, Regional and International Advertising Industry awards for Creative Excellence. Also have enjoyed a career in theatre (as a writer/ composer), which has helped keep the creative juices flowing. In addition to this I am an adjunct lecturer at Costaatt’s Ken Gordon School of Journalism and Communication.

ABG: What do you think about the quality of the ads being produced locally and regionally?

JH: The production values for local and regional advertising (How it looks, how it sounds) varies greatly. Some of this variance is dependent on budget, however it is not as expensive today as it used to be to produce good quality (technology

makes it easier and cheapersound recording equipment, cameras, editing can be done on a laptop). A lot of local and regional advertising is derivative – copies styles and execution methods from foreign advertising. A lot of stock photography is used, with found images driving concept development.

Some of the work is excellent – you can tell when time is taken to think through the idea/concept and to execute it well (regardless of the media).

ABG: Do you think local ads are losing their originality and thus adopting foreign ideologies?

JH: Further to the points made in question 2, yes. A lot of local advertising tries to look and sound like foreign advertising.

Some build on local ideas and a Caribbean aesthetic, however for the most part, ‘sophistication’ and ‘professional’ is a standard set by the advertising emanating from outside the region.

ABG: What are your thoughts on ads using music or material without receiving authorization from the songwriter?

JH: Permission/authorization must be sought from the songwriter or musician before their material is used for advertising purposes. Usage rights must be negotiated and agreed – product, period of time (6 months, 1 year, 3 years etc), markets (is it just Trinidad & Tobago use for example, or the region or the world) and the fee to be paid for the usage. Not doing so is tantamount to stealing. Using the material without permis-

14 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

sion to sell your product or service is very wrong.

ABG: Has social media changed the way advertising works? If so how?

JH: Social Media has changed advertising significantly. Because of the demographic and psychographic profile of people who connect and are informed by social media, this has become an important communications channel. Now, mass media does not connect with that target market as it used to (they tend to be younger, early adopters, more critical of advertising). If mass media gets social media commentary (positive or negative), that’s often how that target becomes aware of it. If it gets no comment, they may not even know the advert exists. Once a brand sends a message out via mass media, if it is newsworthy, there will be positive or negative commentary that will affect the view of the brand. If something negative is associated with the brand and social media gets a hold of it, mass media is not fast enough to respond – social media is the best channel. Now mass media is driving consumer traffic to social media channels using hashtags, barcodes, or simple urls on radio, tv, press and outdoor adverts. Social Media has forced traditional advertising to become more engaging for the consumer. And now more and more, Social Media is becoming the new ‘traditional’ ABG: What advice would

you give someone wishing to enter a similar field?

JH: This is not an eight – five job. You will work nights and weekend sometimes. Advertising is about deadlines. In this career, there is no routine. No matter what aspect of advertising you participate in (creative, client service, media, production) you need to understand the brief – what the client’s business issue is, who the target is and what the desired result (of the advertising programme) is. This will save you from many perils. If you’re a “creative” you can’t take criticism personally– not everyone will think that your idea is as brilliant as you think it is, and not everyone understands how to give constructive criticism (it is not personal anyway, it’s about the work). Learn from every experience, every failure and every success. For you shall have those daily.

ABG: Is advertising a major driving force within T&T’s economy?

JH: The advertising industry in Trinidad and Tobago is significant. It employs people and drives employment. The value of the industry is driven by revenues earned from creation, production and placement of Radio, Press, TV, Outdoor (including digital signs, signage, bus shelters), point of sale (Posters, shelf talkers) Advertising Agencies, Signage contractors, TV producers, Studio and Digital Media/social media etc.). It supports the plans,

ABSTRACT BUSINESS

TRUMP CARD strategies and agendas of policy and commerce in every sector in the economy: large and small business; government; light and heavy manufacturing; education; NGO’s; entertainment; recreation; food and beverage; sports; – all have information and messages to share, all have audiences to reach, all employ people to satisfy the demand that is created by advertising messages.

ABG: Are some of the ads pushing the limits too far and thus exposing the younger minds to inappropriate content?

JH: Some advertising is not very responsible, and some content is not appropriate, not only because it may be explicit, or promote unhealthy lifestyles, but it may also reinforce negative self-image. Sometimes these messages are placed either in proximity to schools or on the airwaves at times that allow children to be exposed to undesirable messaging. Parental guidance is also key to shielding young children from inappropriate messages.

ABG: In your own words, what is the definition of a creative person?

Traditionally in advertising, “creative” people are the Copywriters/Conceptualizers and Designers/Art Directors who work together to develop creative ideas and concepts that answer the client brief in a fresh, imaginative way, beyond the ordinary. They come up with the idea that they develop into via copy and design to create advertising for the media form of choice. But I believe everyone is creative, everyone has ideas.

ABG: Can you describe the creative process you go through when starting a new project?

JH: First, understand the client brief. Select the best team depending on the brief. Some Creative people are stronger

at retail, others are stronger developing Corporate Brand advertising. If not already assigned, designate a Client Service executive (who will be the liaison with the client) and a Media Planner.

We meet, dissect the brief, and study any research that may be available in the product category. Once we have analyzed the brief and developed the approach, we share it with the client. Once there is agreement and a deadline is set, we proceed. We explore individually. We brainstorm with the team. We develop rough concepts and share internally. We agree on changes and refine the work. Set a presentation date with client. Present the work (Layouts, copy, scripts, storyboards etc) for feedback/approval. Celebrate if the client is wowed!

ABG: What are some of your goals for the next five years both professionally and personally?

JH: Professionally, I would like to help create an original Caribbean advertising aesthetic (how we sound, how we look, how we feel) that is not a copy of foreign styles and to help groom the next generation of advertising professionals. Creating the next new media form –that would excite me. Personally, I would like to complete the musical I have been working on for far too long and to continue teaching.

ABG: What would you consider a dream achievement in this industry?

JH: So many possibilities!

ABG: What are some of the issues that you think the adverting industry is faced with?

JH: Clients don’t always value what the agency brings to the table. Which are intellectual capital, ideas, experience, supplier relationships and most of all, ideas. Ideas and concepts

are the real gold, but what people are usually willing to pay for is the actual physical end product that would not exist were it not for the idea. Also, we are often not seen as real professionals. People believe they can do what we can do. With the advent of technology, people believe that being able to do artwork on a computer or create a piece of music using loops is what we do. So we as much as possible have to push ourselves to do what have never be done before. To be first! Also, you are only as good as your last success.

ABG: Based on answers to question 13, what do you think are some of the solutions?

JH: Education. It always helps when people, clients spend time in the agency environment and see how it happens, so they understand the process.

Also as advertising professionals, it is important to educate yourself, to keep current, to make sure you know what is trending, look at advertising, study it, share and discuss it with your peers.

ABG: What has been your greatest challenge so far?

JH: Managing the new breed of creative people! It’s a different head.

Understanding the cultural differences between Jamaica and Trinidad & Tobago and really ‘getting it’ has been a challenge but a very rewarding one.

And of course, keeping creativity alive.

ABG: How did you overcome them?

JH: By immersing myself in the culture, and taking the time to listen and understand the head and heart spaces of the generation and to learn from them.

ABG: Being creative is a must in your profession. How do you keep this creative energy alive?

JH: I read voraciously, and devour music of all genres. I also play the piano to get in the zone.

ABG: What are some of the projects that you have worked on that have received an ADDY award?

JH: One of the one’s I am proudest of is for First Caribbean International Bank –Corporate Television Commercial and Campaign, which won Gold and Silver Addy’s.

ABG: What is the energy like within the agency, once the results for the ADDY awards have been revealed?

JH: It depends on the results!

When it’s good, it’s party time.

When it’s not – well.

ABG: Thinking back to when you first started, is there anything you would do differently, or anything you now wish you had known back then?

JH: I was supposed to be a lawyer. Looking back, I have absolutely no regrets. It’s been amazing. I love this business.

The journey has been amazing.

ABG: What/if any changes would you like to introduce to the industry?

JH: More camaraderie between the agencies, as an association we don’t do very much together.

ABG: What are some of the major misconceptions people have about the advertising industry?

JH: That it’s easy, we’re charlatans and it’s not a real career.

ABG: Anything you would like to add?

JH: Advertising is not for everyone. If it’s for you know it immediately. www.amgtt.com • JUNE, 2014 • ABSTRACT BUSINESS 15

ABG: What are some of the ways in which you network?

Art shows, client events, travel, dining out.

ABSTRACT BUSINESS

FUTURE FINANCE

Changing WASA billing methods for Water Usage Written by Rhoshenda Ellis

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n Trinidad and Tobago, citizens continuously complain that the government is not providing enough public goods. There is not enough water, oil, electricity, education, health care and the list goes on. However, in true Trinbagoian style, once we are given these amenities, we use them carelessly.

One such commodity is water. Nearly every community has a leaking water pipe in the road that is left running for many months. Residents continue to wash their cars with the water hose running or brush their teeth with the tap open. These careless actions make one wonder if these residents would waste water in this way if they had to pay for it.

The truth is, most them would not. The Water and Sewerage Authority (WASA) charges residents for using water at a standard rate and so, no matter how much water is used by the

resident, the rate is the same per quarter. Some residents of the Bon Air West community decided to shed some light on the matter.

According to the residents, WASA charges vary for domestic households from $108 to $304 per quarter depending on the Annual Taxable Value (ATV). This means that most households pay a standard rate four times a year for water.

A resident admitted, “I have been paying the same amount for water since I have been living here but I make sure not to waste any water.” As mentioned, the way in which WASA charges residents for water is not harsh enough to dissuade people from wasting water.

Therefore, WASA should upgrade their billing methods to compensate for the amount of water used per household.

This method is currently in the process of being implemented, where WASA bills residents

based on the amount of water used. WASA has been going around to different communities and installing meters that keep track of the amount of water used by each household and billing them accordingly using a standard rate. Another resident said, “I have the meter in my house and I must say my WASA bill was quite high.

However, since the meter was installed I have encouraged the members of my house to use less water. But it is only so much water usage we can cut back on because we still need water for everything.” It is therefore seen that this new method of billing that WASA is using has been very effective in reducing the amount of water being wasted by each household.

The billing method is not the only way in which WASA can reduce the wastage of water. There are persons employed by WASA called WASA

police whose duty it is to go around to communities to ensure that water is not being wasted. If water is being wasted, the WASA police have the authority to fine the person responsible for such action.

Also, WASA can encourage reusing water through the implementation of water recycling plants. This way, less water is taken from the environment and during the dry season, the water reserves will not be at dangerously low levels.

According to the WASA campaign, “Water conservation: Its a partnership”, it takes both the citizens of Trinidad and Tobago and the Water and Sewerage Authority to conserve the water of Trinidad and Tobago. WASA must implement stricter measures to prevent water wastage and the citizens of Trinidad and Tobago must understand the importance of water conservation in this modern day world.

www.amgtt.com • JUNE, 2014 • ABSTRACT BUSINESS 17

ABSTRACT BUSINESS GUIDE

FUTURE FINANCE

Cash For Crimes Initiative Potentially Lending To Moral Hazard

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Written by Crystal Cassie

n the aftermath of Senior Counsel Dana Seetahal’s killing, Downtown Owners and Merchants Association (DOMA) accused agencies and authorities of “lame, repetitive responses”, where “all of the old ideas are regurgitated every time we face the horrors of criminality; more guns, more vehicles, more cameras and bigger cash rewards for information.” Instead, DOMA suggested that incentives should be given to help solve Seetahal’s murder and the current crime scourge.

These incentives would be offered for major crimes as well as on a weekly, monthly or annual basis to police officers. If successful, the model can be used in other sectors to improve quality of output.

The proposal was supported by the secretary of the Police Second Division Association, Inspector Michael Seales. He suggested that giving the $3.5 million reward being offered

by Crime Stoppers to the handpicked team of officers investigating Seetahal’s killing would be a viable move. He stated that “You have to treat the police as professionals and we are saying give us the $3.5 million instead because it requires a certain level of knowledge and

technology among other factors. It goes beyond the scope of ordinary policing.”

Minister of Security Gary Griffith disagrees with such a move, but stood firm in the stance that proper remuneration to police officers plays a big role in reducing the murder rate. He noted that in November 2013, visiting US policing expert William Joseph “Bill” Bratton brought up the issue of remuneration, but it was met with great opposition by several sectors.

So the question remains, if done regularly, is providing incentives a better option than raising pay for officers?

Firstly, providing incentives to police officers could lead to market failure, through moral hazard. Moral hazard exists when persons are enticed to act immorally because they stand to benefit in the market.

Police officers may end up receiving a portion of state funds for an inefficient output.

For instance, speaking in the House of Representatives, PNM leader Keith Rowley said: “If Officer X gets information, he would not give it to his superiors, but would find a way to ensure that his partner can get the reward. And before you know it, it has reached the

Firstly, providing incentives to police officers could lead to market failure, through moral hazard.

Moral hazard exists when persons are enticed to act immorally because they stand to benefit in the market 18 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

full extent where they would begin to commit crime to get the reward.” He gave the story of a snake in Martinique, the fer de lance, which had been a nuisance to farmers. The government decided to reward farmers for each snake caught. A hurricane came and broke down the farmers’ cages, revealing that many farmers were actually breeding snakes.

He stated, “So the very programme to put an end to fer de lance ended up breeding more fer de lance.”

Secondly, it is the view of many that police officers should not be rewarded for simply doing their job. Minister Griffith said that they should be professional and do what they are being paid to do. He stated that giving incentives to solve murder could have a serious “domino effect” and police officers should never be turned into “bounty hunters.” By extension, the spillover effect on other sectors should be examined. If incentives are given to police officers for simply doing their job, then doctors could be rewarded for saving lives, teachers could be rewarded for scholarships and firemen for successfully extinguishing fires.

Thirdly, the question arises of why give incentives in a failing system, riddled with corruption, low detection rates and low public confidence in the police service. In 2013, the average detection rate fell to 14%, from 24% in previous years.

Lastly, giving incentives for crime could be successful in raising detection rates, but what happens from there?

When criminals are caught, does the justice system have the capacity to deal with all these new cases along with the current backlog of cases?

While incentives may not be the answer, solutions to deal with the crime situation are imperative. DOMA made viable proposals that can be implemented for long-run success, such as overhauling the management model of the national services or asking the managerial elite to write a new rulebook for critical governance issues. Also, the police officers who go above and beyond the call of duty should be recognized for their efforts in terms of special incentives. Whatever the route, something needs to be done because the “complete sense of hopelessness is eating away at our national psyche.”

ABSTRACT BUSINESS

BIZ TECH

IS TECHNOLOGY TOO EXPENSIVE? Technological advancements not leading to reduced prices Written by Leah Lewis

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echnology has become so much a part of our lives that this up and coming generation cannot wrap their minds around having to wait a whole day to tell a friend a hot story that just occurred.

In the past, you may not have been allowed to use the home phone and cell phones were not even an option. Now, even pre- school children carry cell phones. Technology has allowed us the opportunity to do more in less time. It gives us the ability to access information and communicate in real time, irrespective of boundaries that may have prevented such in the past. Technology has advanced to the point of constant access.

In the past we may have had to wait to get home to have access to a Personal Computer.

Now your PC goes with you as it’s now in the form of a tablet or your smart phone. There are several competitors in the market that offer such technology but none stand out like the two power houses at the forefront of this new technological era, Apple and Samsung. One would assume that by now prices should be dropping to more acceptable market rates but that has not been the case. In fact as each layer of advancement is added the price also increases.

Here we explore this phenomenon.

Apple and Samsung have managed to monopolize the technology field for quite some time and although they function as competitors they still manage to be forceful price setters. Here in Trinidad and Tobago a hot commodity is

their cellular phone offerings.

Our main telecommunication carriers: Digicel and Bmobile both offer iPhone and Samsung products. These products range from between $3,199$5,500 and even beyond. This price range is dependent on whether the phone is acquired as pre-paid or postpaid as well as the attached data plan. The days when phones were needed simply for everyday communication are past. We need phones to function in our everyday lives and more importantly for business. Although this is necessary, why are we willing to pay rent for a simple handset when a much cheaper option may be able to fulfill the same task?

According to Apple CEO Mr. Tim Cook, Apple does not want to sacrifice price for qual-

ity and as such places a high value on being able to offer great products above all else.

Another contributing factor for high technology prices is servitization. This is where products begin to become indistinguishable from the services they offer. The technology stalwarts have mastered the art of enabling and creating services inextricably linked to the products that they sell. Such is the story of the iPhone, Samsung and even HTC, which is so powerful that it requires quite minimal marketing. Phones are now equipped with apps that offer services that we rely on every day and as such we are willing to pay the exorbitant prices. In order to access the strategic benefits from product services higher prices must evidently be paid.

www.amgtt.com • JUNE, 2014 • ABSTRACT BUSINESS 19

ABSTRACT BUSINESS GUIDE

BIZ TECH

Making The Most Of Digital Marketing

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ith all the socalled ‘smart’ technology in our midst, it is no surprise that the business world has adopted a more digital approach. Digital means have kept us more connected than ever and any rightthinking business head would be remiss not to capitalize on technology especially as a marketing tool. People are veering away from traditional means and leaning toward digital marketing. Put baldly, digital marketing is marketing that makes use of electronic devices such as personal computers, smartphones, cellphones, tablets and game consoles to engage with stakeholders. While digital marketing is encouraged, there are ways to optimize digital marketing for your business’ benefit.

Create conversation Marketing and sales are processes which take the form of conversations. Your digital marketing should reflect that.

Feed off of the behaviors adopted by people on social media.

Often a customer’s starting point when seeking to make a purchase is to ask friends or colleagues for a recommendation. These conversations and recommendations take place in communities such as Twitter,

Facebook, Forums, LinkedIn, and others. If you transform your marketing message to a marketing conversation, you are likely to experience success. Find ways to engage your customers by answering their questions online and offering free information and tips. People appreciate the fact they can obtain expert advice, from a service provider. Plus, conversation makes it more personal and that can help you engage your customers in a comfortable conversation which creates sales leads.

Get the right Skillset Digital marketing does not always work just because you have a good digital marketing plan. The execution of the said plan will rely heavily on finding the people who can action the plan in question. Therefore, finding the right skilled employees remains the biggest challenge in this regard. Normally, you can find people who are very good at operating digitally and others who are good at marketing or advertising. But it is very hard to find someone who masters both. As such, it may be prudent to hire people who are proficient in the digital field. Otherwise, requisite training should be provided to equip staff with skills, trends, topics, and terminology used in

Find ways to engage your customers by answering their questions online and offering free information and tips. People appreciate the fact they can obtain expert advice, from a service provider 20 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

digital marketing and advertising campaigns.

Find Relevance In 2014, simplicity and relevance reign. Don’t try to reinvent the wheel and while thinking out of the box is good, don’t think too far out. Know your customers and cater to them.

Keep consumers and their desires, hopes, and aspirations central to your marketing and you’ll stay on top. More than ever, the people will be in the drivers’ seat. Be up to date with trends. For instance, recently people have become more spending-conscious as opposed to simply price-conscious. Feed off that and act on it. Now is the time to make the strongest possible case for the value of what you’re selling. Finally, tune in to what kind of content engages your audiences and create advertising that aligns with what they watch and read. Take

advantage of technology that matches ad content to the context of the page, creating hyperrelevance to deliver ads people actually want to see.

Endeavor to Email Finally, it cannot be overstated than email is where it all began and it should not be forgotten.

To reach people in a personalized way is easiest with email.

Email is something that the individual marketer should never abandon; it is vital that email along with other digital tools is used well and in coherence so as to yield the highest reach. Email is the evergreen digital marketing tool. It’s personal and perhaps the best way to reach an individual in today’s digital world. Note that while social media is effective, it should never take the place of email marketing. Nothing is more personal than email from a digital standpoint.

ABSTRACT BUSINESS

Personal Finance

Mortgage Loan Repayment Tips

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veryone wants a home of their own and getting the resources to own one can provide you with the best feeling in the world. However, having a mortgage hanging over your head can be stressful. Everyone would agree that paying off a mortgage is one of the best feelings ever. This article is eared at showing you how to overcome a tricky mortgage payment situation.

Cut back on expenditure Reduce expenditure on vices and redirect the money into your home loan instead. Smoking, an after-work beer, morning coffee and that afternoon chocolate fix all add up over the course of the week. Add to that buying at least one lunch, breakfast or dinner a week and you could be putting more than $200 extra a week into your loan.

Get a Longer Loan Suffering under the hefty monthly payments that come

with 15-year or 20-year mortgages? Extend your mortgage into a conventional 30year term in order to cut your monthly payment. The bad news: your interest rate will rise. The good news: you can still choose to make additional payments on the mortgage, as if you were paying a 15-to-20year loan. These extra payments will help you satisfy the loan more quickly, without obligating you to make massive payments if, say, there's an emergency that leaves you cash-shy for a month or two.

Make extra repayments right from the start Regular additional repayments made right from the beginning of your loan term will have a much greater effect on the overall time and cost of your loan than starting five or ten years into the loan. Even if you are already more than five years into your loan term, you can still make a considerable saving by starting to make additional repayments now.

principal off your loan, particularly if rates continue to drop.

Don’t lower your repayments when interest rates fall With interest rates currently falling, it may seem tempting to let your home loan repayments keep pace with the minimum required repayments and pocket the difference. Before doing this, consider that keeping your repayments at the old level will shave a significant portion of

Capitalize on Taxes Quite often we look forward to tax time as we receive a return. Bonus cash in the middle of the year is always fun to buy those items you have seen while window shopping, but if your goal is to pay of your home loan faster, the best place to spend your tax return is on your mortgage.

If for example, you receive a $2,000 tax cheque one year, by tipping your tax return in for one year alone you will save around 2 months off the term of your loan. Tip your tax return in for six years and you have cut the length of the loan by a year.

Negotiate to make savings Negotiate with your lender to save – interest rates and establishment fees in particular are good places to start your negotiations. A good savings, credit and work history will help you save more.

www.amgtt.com • JUNE, 2014 • ABSTRACT BUSINESS 21

23.

ABSTRACT BUSINESS

Developing the Entrepreneur

The Most Valued Employee Traits

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mployers around the globe will tell you how hard it is to find loyal, committed workers who espouse all that their organization aspires to be.

Not everyone has the personality to be the perfect worker.

However, with some training and the right knowledge of what is required, you can be the right guy for the job. Here are some of the traits employers value most in employees.

Nobody can competently fulfill their job duties without the requisite job knowledge.

However, what many employers are looking for is not just the job knowledge, but overall business acumen. This commercial awareness is important as it opens workers up to what is going on from an entire industry perspective. They would now know the ins and outs of how a business or industry works and what makes a company tick. It shows that you have an understanding of what the organization wants to achieve through its products and services, and how it competes in its marketplace.

A good worker is self-motivated and possesses a high level of stick-to-itiveness. Everyone hates Mondays, but the worker who can attack his duties on a Monday morning with vigor will be cherished. Better yet, when things go a bit off-kilter, workers who persevere to ensure the ship is righted are hard to find. You want to be one of those rare workers. While some bosses may be overly bossy and aggressive, note that slavery was abolished so an employer or manager should not have to stand over you with a whip to make you work and better yet, perform. Instead, a worker should be conscientious. Make sure you pay attention to the

In order to gain a boss' confidence, employees must be willing to go above and beyond what is typically required of them on the job details. Spelling and grammatical errors, lost and misplaced files, or general disorganization have the potential to make or break you.

In order to gain a boss' confidence, employees must be willing to go above and beyond what is typically required of them on the job. Employees who take on projects that fall outside their normal responsibilities can expand their skill set and explore new avenues for professional growth. While you may not always have the time to volunteer for an extra assignment, passing on every opportunity will prevent you from being viewed by your manager as a go-to person in the department.

Time management is another quality that those in HR value. Your ability to manage time is a testament to your organizational skills and it also speaks to your problem-solving ability. Do you prioritize? How efficient are you? An employer judges your performance based on how focused you are on getting the job done. Productivity is directly related to time. Going back to the issue of problem-solving, it is good to show that you can approach problems from different angles while showing a propensity for being logical and analytical. If you can adequately solve problems and manage time it will greatly impact how well you work under pressure.

In today's workplace, communication is the skill of utmost importance. You must have communication skills that allow you to succinctly and effectively contribute your thoughts. An effective communicator leaves no room for error and can exhibit thoughts in a direct manner. These are attributes that are seldom overlooked by employers. Good communication includes articulating oneself well, being a good listener and using appropriate body language If you are not a team player, you will find it hard to assimilate into the world of work.

Good workers can take on responsibility as well as manage and delegate to others. It doesn’t mean you need to constantly work as part of a group.

It is a trait which is more reflective of your ability to build positive working relationships that help everyone to achieve goals and business objectives.

www.amgtt.com • JUNE, 2014 • ABSTRACT BUSINESS 23

ABSTRACT BUSINESS GUIDE

DEVELOPING THE ENTREPRENEUR

Cash Flow Management Tips

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ash Flow management is one of the most important skills for a business.

Companies, especially young enterprises and small businesses need to stay on top of their cash flow game or they will likely end up in serious debt and unable to function. Here are some cash flow management measures to undertake.

Prompt Invoicing If you want to keep that money coming in on time, it is essential that you do what is necessary to facilitate it. Generally, customers will pay quicker if they receive invoices quicker.

It is surprising how many businesses get behind on their invoicing. Make time each week to create and send your invoices, and place emphasis on keeping all the information that you need to hand. This ensures you treat all customers fairly and helps you to query overdue invoices sooner. Companies are now making the way they deal with invoicing standard policy to ensure everyone has buy-in and will do what is necessary to ensure prompt collection. It is prudent to operate a system of reminders that gradually become more serious and formal

as invoices become more and more overdue.

Simplicity is Key People will have a harder time paying if the means by which they can pay are limited.

Therefore, where possible, offer a range of payment methods so your customers can choose how they want to pay you. In modern times bank transfers have proven to be the preferred method. However, you would be remiss to forget the basics.

Cash, cheques, debit and credit card payments and even money transfer services should be available. Do all in your power to ensure a clear ‘due by’ date.

Create Strict Credit Terms Anyone involved in business for any period of time would be familiar with the slow-paying customer. These are the ones to be particularly careful of.

Some may ask for extensions to pay, but extending credit to slow-paying customers can lead to cash flow challenges.

Instead, negotiate new terms with existing customers who have been slow to pay, and set stricter terms for new ones.

Most important of all, remember to always check credit reports before extending credit.

Make time each week to create and send your invoices, and place emphasis on keeping all the information that you need to hand.

This ensures you treat all customers fairly and helps you to query overdue invoices sooner 24 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

Your ‘gut’ feeling should not be ignored when making credit decisions, but reports should take precedence. Wherever it is appropriate, ask for deposits or partial payment in advance so you have the cash on hand to buy materials or inventory.

Set Targets Preparing and maintaining a cash flow forecast is one way of controlling cash flow. This can be updated weekly, to provide an accurate outlook for the next six months to a year.

A large part of management is paying attention and it is easier to pay attention to something when it is an actual priority.

Setting targets for the credit

controllers is an excellent way to ensure it is given the attention necessary and provides a level of satisfaction and ownership to hit and beat these.

Build a cash buffer When all else fails, you still have to have a buffer. Work out your average outgoings for one month. Consider this amount to be the minimum level of cash you need in the bank at any one time and make yourself believe you can never let your bank balance go below this amount. When your clients all decide to pay you late it may mean the difference between your business surviving or failing.

ABSTRACT BUSINESS GUIDE

GLOBAL FINANCE & WORLD REVIEWS

IMF's Lagarde Calls For Closer Cooperation Among Central Banks

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Written by Eva Taylor

hristine Lagarde, Managing Director of the International Monetary Fund, called for closer cooperation among the world's Central Banks to cope with the challenges of increasingly interlinked and complex financial systems.

Speaking at a dinner in Sintra, Portugal, to kick off the first annual ECB Forum conference, Lagarde said the potential gains from cooperation could be huge in times of distress as seen during the financial crisis.

"If policies are viewed only from a national perspective, we

may end up in a world of ad hoc intervention, less rebalancing, and the potential to export financial instability," she said in the text of her speech.

"This would be a world of possibly large welfare losses in many countries, with not just spillover effects — from advanced to emerging market economies, but also 'spillbacks' — feedback effects from emerging market to large advanced economies."

The financial crisis has shown that coordinated international action helped prevent disruption spreading to economies around the globe, she said.

And these upsides should not be forgotten as the crisis subsides.

"We need a concerted effort to examine the effectiveness of cooperative policy responses, their spillover effects, and their global welfare implications — also in light of the evolution of the financial system," Lagarde said.

She also said advanced economies could help reduce

volatility by communicating clearly the course of their monetary policy.

Discussing the link between financial stability and inflation, Lagarde said the current environment in the euro zone was a sobering reminder of how balance sheet weakness could constrain the ability of banks to support credit and investment, ultimately contributing to low inflation.

Stocks Rise As EU Election Results Come In

E

uropean Parliament election results show voters are increasingly turning their backs on the European Union, with many 'euroskeptic' parties gaining significant support in countries such as France, the U.K. and Greece.

Meanwhile, Ukrainians seem to be voting in favor of further integration with Europe.

Billionaire Petro Poroshenko has declared himself the winner of the Ukrainian presidential elections after getting over 50% of the vote. The seasoned politician has been vocal about his pro-European Union views.

Related: Europe's own 'tea party' risk The growing popularity of anti-EU protest parties on the far right and far left indicates a severe backlash against pan-

European cooperation, European institutions and austerity measures.

In France, the far-right National Front party -- which has rallied against the EU and immigration -- has won a historic victory with 25% of the French vote, beating out more moderate pro-EU parties that dominated the elections five years ago. In the previous European elections, the National Front

26 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

garnered just 6% of the vote.

In the United Kingdom, an increasingly prominent protest party that has loudly voiced its desire to get out of the EU won roughly 28% of the votes.

In Greece, the far-left Syriza party won roughly 27% of the vote.

The success of these antiEU fringe parties could make for noisier Parliament debates and could complicate the pass-

ing of EU laws and appointments to the EU executive. It could also destabilize pro-EU governments in some countries and weaken the resolve of others to stick to painful economic reforms.

But this doesn't necessarily spell the death of a united European Union. Results show the left-center and right-center parties will still hold a majority of seats in the European Parliament.

"After four years of a wrenching euro crisis, proEuropean mainstream parties ... will still have close to 70% of the seats in the EU parliament," said Berenberg Chief Economist, Holger Schmieding. "Although it will be more difficult to negotiate a trade deal with the U.S., European institutions can function well with that result."

ABSTRACT BUSINESS GUIDE

STOCK WATCH

May Stock Summary Courtesy The Trinidad and Tobago Stock Exchange

Written Report for Tuesday 27th May, 2014

O

verall Market activity resulted from trading in 14 securities of which 4 advanced, 5 declined and 5 traded firm.

Trading activity on the First Tier Market registered a volume of 341,713 shares crossing the floor of the Exchange valued at $1,609,996.85. NATIONAL COMMERCIAL BANK JAMAICA LIMITED was the volume leader with 151,500

shares changing hands for a value of $151,645.75, followed

by JAMAICA MONEY MARKET BROKERS LIMITED with a volume of 110,000 shares being traded for $51,700.00.

SAGICOR FINANCIAL CORPORATION contributed 40,056 shares with a value of $270,378.00, while FIRST CITIZENS BANK LIMITED added 18,177 shares valued at $690,873.66.

REPUBLIC BANK LIM-

ITED enjoyed the day's largest gain, increasing $0.11 to end the day at $120.50. Conversely, NATIONAL COMMERCIAL BANK JAMAICA LIMITED suffered the day's greatest loss, falling $0.05 to close at $1.00.

CLICO INVESTMENT FUND was the only active se-

Stocks Advancing: Security

Volume

Closing Quote ($)

Change ($)

35

120.50

0.11

100

60.06

0.06

ANSA MERCHANT BANK LIMITED

5,078

38.62

0.02

ONE CARIBBEAN MEDIA LIMITED

6,000

22.56

0.01

Volume

Closing Quote ($)

Change ($)

151,500

1.00

-0.05

CLICO INVESTMENT FUND

14,069

21.65

-0.04

FIRST CITIZENS BANK LIMITED

18,177

38.01

-0.03

JAMAICA MONEY MARKET BROKERS LIMITED

110,000

0.47

-0.01

SAGICOR FINANCIAL CORPORATION

40,056

6.75

-0.01

Volume

Closing Quote ($)

FIRSTCARIBBEAN INTERNATIONAL BANK LIMITED

4,041

5.51

GUARDIAN HOLDINGS LIMITED

3,626

14.55

POINT LISAS INDUSTRIAL PORT DEVELOPMENT CORPORATION LIMITED

2,000

3.82

GUARDIAN MEDIA LIMITED

1,000

19.75

100

13.00

REPUBLIC BANK LIMITED UNILEVER CARIBBEAN LIMITED

Stocks Declining: Security NATIONAL COMMERCIAL BANK JAMAICA LIMITED

Stocks Trading firm: Security

ANGOSTURA HOLDINGS LIMITED 28 ABSTRACT BUSINESS • JUNE, 2014 • www.amgtt.com

curity on the Mutual Fund Market, posting a volume of 14,069 shares valued at $304,594.05.

CLICO INVESTMENT FUND declined by $0.04 to end at $21.65. PRAETORIAN PROPERTY MUTUAL FUND remained at $3.40.

The Second Tier Market did not witness any activity. FNCU VENTURE CAPITAL COMPANY LIMITED (SUSPENDED) remained at $1.00. MORA VEN HOLDINGS LIMITED remained at $14.97.

In Tuesday's trading session the following reflect the movement of the TTSE Indices: * The Composite Index declined by 1.35 points (0.11%) to close at 1,181.03. * The All T&T Index advanced by 0.30 points (0.01%) to close at 2,027.76. * The Cross Listed Index declined by 0.39 points (0.88%) to close at 43.80. * The Composite Index comprises all Ordinary companies. * The All TTSE Index comprises Trinidadian companies only. * The Cross Listed Index comprises companies originating outside of Trinidad & Tobago.

Abstract B.G Is Published By Abstract Media Group, Premium Commercial Complex, San Juan, Trinidad, W.I. • Tel: (868) 638 1156/9 • Fax: (868) 638 1160. Printed By The Office Authority - Printing Division And Distributed By AMG