Business Student’s Association
BOND BUSINESS REVIEW132 Local entrepreneurs leading the online beauty world
How advertising is shaping a culture near you
The 2013 World Rich List
The 9 Business Laws of Justin Timberlake
Most Innovative Office Spaces
An insight into Investment Banking
Suits through the Ages Bond Business Review | 1
From the Editor
Jade H aywa rd
: Sub-
ng Mary La
edito r
-editor
ley : Sub
A very late welcome to 132 Bondies! I hope you’ve had a wonderful semester so far and aren’t too down with the blues. As it’s at that time of the semester, again, where we realise how close we are to exams, and thankfully the holidays. As you’re probably aware, it has been a very busy semester for the BSA and the Business Faculty and as you’ll see throughout the following pages, everything has been super successful! I would have to say the highlight has been our retreat to the Sunshine Coast, not that I really remember much, but overall I think some excellent ‘team bonding’ was had. But in all seriousness, over this last semester our committee have become very close and working with them has become so easy and enjoyable. I would like to take the time to introduce you to my new sub-editors, Mary Langley and Jade Hayward. This edition is a lot bigger than anticipated and it has been amazing to have their creative perspectives on board. I would also like to thank everyone who has contributed to the edition and encourage you all to submit articles for my final edition next semester. It is a great avenue to have your university work, or interests showcased and can also be the perfect piece to add to your portfolio (for all you marketing and advertising students). I would also like to welcome Joachim Milson, our new post-graduate officer to the committee. He has already provided us with many, many laughs and has become a very important figure amongst our committee. I wish you all the best for the remainder of your assessments and exams! Sending lots of love,
Brigette xoxo
Front image source: www.rollingstone.com.au
2 | Bond Business Review 132
Inside this issue BSA Specials
BSA Updates 4 Palaver 131 Photos 6
Extra Curricular
Hult Prize 8 China Study Tour 9 Global Management Challenge 10
Entrepreneurship
Leading the Online Beauty World 12 Thinergize Fitness 14 A Bondy Facing Entrepreneurial Success 17
Business Around The World
Suit Through the Ages 18 Most Powerful Businesswomen in the world
20
2013 World Rich List 21 Unusual Jobs That Pay Surprisingly Well 22 Most Innovative Office Spaces
23
Bangladesh Sweatshops 24 What Business Has to Learn From Science
26
The 9 Business Laws of Justin Timberlake
28
Marketing & Advertising
How Advertising is Shaping a Culture Near You
30
Take your best shot 31 Collective Intelligence in Marketing 32 The Impact of Transmedia Storytelling on the Marketing Communications Profession
33
Finance
Goodbye Mr. Fed 34 An Insight into Investment Banking 35 Bond Business Review | 3
Messages from your Committee President | VIce President | Academic Affairs | Secretary
President’s Address ~ Matthew Boyce
A very belated welcome to semester 132 from your BSA! It has been an exciting semester so far with much excitement to come! A huge congratulations and thank you to our Social Director, James Nichols, for the great success of Palaver this semester. I don’t mean to brag but this Palaver was kick-ass. From talking to students I heard “best Palaver ever” from a number of students and I also heard one “best Bond event ever”. But let’s best not forget the night is always what you make of it, so a thank you to the students that came for enjoying themselves responsibly, as it was one of the smoothest Palavers I have been involved with. That’s enough of a wrap for Palaver, if you missed out, you won’t want to miss out next semester that’s for sure – it will be our last one and we will want to go out with a bang! We have a few more things lined up for this semester, however. On the competitions front, our Competitions Director, Mark Foster, is organising the Job Interview Competition to be run late this semester. This will give students a chance to practice their interview skills to ensure they can get that dream job, as well as offering a delicious cash prize. We have confirmed PwC as a sponsor for the competition to make it even more attractive for you! External Relations Director, Brent Loeskow, is putting together a networking event for early next semester. This event will be targeting marketing and IT students, also known as the forgotten students, hiding behind finance and accounting students. Although 132 has been relatively quiet, we have some big plans coming up for 133. A big networking event, a big Palaver and keep an ear out for hot tub cinemas... “what’s that?” you ask. You will just have to wait and find out! To keep up to date on everything we are doing check out our website, or drop a like on our Facebook page: https://www.facebook.com/BondBSA and website: http://www.bondbsa.com.au All the best,
Matthew Boyce 4 | Bond Business Review 132
“
We thank you for voting us Best FSA & Best FSA Event of 131!
“
Nominations for 132 are now open, remember to vote for us!
Vice President -Maxwell Davies
My main focus this semester has been assisting the Faculty with their pursuit of AACSB accreditation. This has involved extensive student feedback and review of our Business curriculum, support staff and administrative processes. Into the future, the BSA is looking at the possibility of integrating a position for a permanent postgraduate student member and running the Job Interview Competition each semester in a set time slot now that sponsorship has been confirmed with our key sponsors. I can proudly say that in each week of our term the committee has become even closer, and that we all act cohesively and assist each other whenever we are needed. There is not a single person on this current committee that wouldn’t put their hand up to help out their colleagues, and each member has given their best efforts in positions that are not even related to their portfolios. I’m looking forward to the second half of our term!
Secretary - Helena Michael
Unfortunately from me, I can’t inform you of any revolutionary events or competitions I will be running over the next semester. However, as secretary of the BSA my role has been predominantly focused on supporting all committee members to ensure that notable events, like Palaver,
are executed at the highest standard possible. Even if an event may look fantastic on paper it can all go horribly wrong if there is no organisation. Our committee has some pretty exciting stuff planned for the remainder of our term so rest assured I’ll be working hard to ensure that the BSA will expand and improve upon your bond student experience.
Academic Affairs - Jack Leonard
It seems like only yesterday that we walked into our first lecture for semester two, but the weeks have flown by and the end of semester is rapidly approaching. At week 11, it seems appropriate to put the early semester partying to one side and shift the focus to our studies. As you reflect on your mid-semester examinations and start working towards the final examinations, it is important to remember the support frameworks and services that the BSA offers. In week 10, the BSA will be holding a Class Representative meeting, where the class reps can air their grievances or praise with a view to providing solutions before exams. If you have any problems make sure you let your class rep know, they are your first point of contact for issues in the subject. Second, the end of semester is when the Tutor Database gets its best workout. If Bond Business Review | 5
you achieved 80%+ in a subject and are interested in tutoring, send your details to jack.leonard@student.bond.edu.au. Alternatively if you need to contact a tutor the database is available for your use. Third, revision seminars will be running again in week 12 and 13. The focus will be primarily on the foundation subjects, however if you believe a particular subject needs attention, the timetable is flexible. Finally, I am always available via email to deal with any issues you may have with faculty, feel free to drop me a line.
What’s coming up?
Job Interview Competition Business Breakfast Exam Revision Seminars Exec Drinks (Vote for Us!) Careers Guide Release Marketing Networking Event Business Breakfast Palaver 133 New Merchandise
PALAVER 132 6 | Bond Business Review 132
THE CARNIVAL Bond Business Review | 7
Hult Prize
I
By Richard Nicholls, Manuel Siegrist, Jono Carrol and Kristofer Duncan
n October 2012 we formed a team to apply for the Hult Prize, a social-entrepreneur competition. Our team consisted of four ambitious, hardworking MBA students. In December 2012 we were selected to take part, having been chosen from over 2500 applications and 10,000 students. In January we received the brief with our task for the competition and had a mere six weeks to develop our solution. We sought guidance from several Bond University professors including Audun Fiskerud, Ken Parry, and Mike Grenby. Through this network we were introduced to Soheil Abedian with whom we had the privilege of discussing and refining the progress of our business plan and presentation. We met with Mr Abedian on five occasions each meeting being a terrific learning experience for the team. Mr Abedian and his team were insightful and took on a mentoring role with the group continuing to push us and question us with every meeting.
the Hult staff and students, competitors and senior executives from throughout the Asia Pacific region and beyond. Despite our limited time, we took every opportunity to experience the different elements of Chinese culture and look forward to returning one day. We would like to thank Bond University for agreeing to fund the majority of our expenses. Without this funding our participation, in what is the largest student business competition in the world, would not have been possible. We were very honoured to represent Bond University and the Business School during this time.
After our discussions, our team decided that to challenge the brief. We believed that a profit-generating business model alone would not be enough to make the impact the task requested. We introduced a foundation that would work as a separate entity to the business. The foundation would generate a stream of funds to provide vocational skills in the slums while the business would stimulate a sustainable solution to food insecurity in urban slums. Both were designed to help one and other. After finalizing our business and foundation concepts, Mr Abedian advised us that he was prepared to match, dollar for dollar, the $1 million Hult prize business seed money towards the launch of the foundation. This was a combination of his generosity and his confidence in our solution and team members. From February 28th to March 1st, the team went to Shanghai and delivered our solution. Our team enjoyed the challenge presented to us in Shanghai. As a group we learned a lot from each other during the six weeks of idea generation and development. Most importantly were the lessons we learned about the forgotten areas of the world, slums. We will continue to follow the competition to see how the winning team progress and hope their solution is successful. Our time spent in Shanghai was a valuable learning experience. We were privileged to meet people from many cultures including 8 | Bond Business Review 132
China Study Tour By N. Joseph Corriero
I
n the 131 semester, I, along with 29 of Bond’s MBA and eMBA students travelled to China for a first hand look at business in China. Over the course of the trip, we had the opportunity to listen to and interact with Chinese academics, government officials, entrepreneurs, and employees of state owned and privately owned enterprises, providing all of us with a better understanding of the Chinese business culture. It was eye-opening to meet individuals from such diverse backgrounds and have the opportunity to understand business through their unique perspectives. I thoroughly enjoyed the opportunity to see, live and experience these perspectives as opposed to merely reading about them in a textbook. In our first set of lectures and meetings, we met with government officials and Chinese academics. These sessions provided an introduction to the foundations of Chinese culture and how that culture influences the business world and economy today. We were then provided with a more candid understanding of the business culture when engaging with local entrepreneurs, particularly the younger generation, and westernized Chinese academics. These meetings provided an understanding of how to deal with typical obstacles westerners face while in China and gain insights not typically written in a journal or textbook. Additionally, we were able to see firsthand how ancient Chinese culture evolved over the years, and how modern day, young and Western entrepreneurs incorporate the past, present and future in how they do business. I took so much more out of this experience than I could have ever possibly anticipated. I gained a better understanding of the Chinese business environment and culture, with an appreciation for how and why things are done the way they are. It has exposed me to some of the deficiencies that exist in the Western ways and business practices and what could be done to address those deficiencies. Most of all, this experience has opened my eyes to the significant development China has made, becoming one of the central countries on the world stage in terms of global business. 
I would like to express my sincere thanks to those involved in the Business Faculty for making this experience possible.
 Bond Business Review | 9 Bond Business Review | 9
GMC 2012
Global Management Challenge
Breanna Lee gives us glimpse into the largest business simulation competition in the world.
W
hen I first heard about the Global Management Challenge I was immediately interested in participating and asked around to find team members that were also keen. In the end we formed a team of 5 Bond students with backgrounds in different areas such as Finance, Law, Accounting and Management. During the first round all of us didn’t really know what we were doing. When we read the manual for the competition, it was like we were pulling numbers out of nowhere. To help understand the competition a bit better, we got some advice from a past participant. With this new information we were able to perform better and make it into the Australian National Finals...which we never thought would happen! The national finals were held at Bond and we were up against another Bond team and two Monash teams. Our team seemed the most casual and relaxed out of the 4 teams and this was emphasised by all the junk food we had on our table during the competition and the fact that we were the loudest team due to our laughter. and sugar highs. Throughout the finals the other Bond team were at the top of the leader board so after the final round we thought they were the winners and were even offering to provide them with our resources for the International Finals. However, when the results were announced I was so surprised and in a state of shock! We won and we were going to Ukraine in less than a month! I remember all I could think about was that I hadn’t even told my parents I entered this competition and now I had to tell them I was going to Ukraine. Although we were all in shock we had to get to work straight away to organise our trip. We ran intovarious obstacles due to the finals being held during our exam period and lack of communication with the competition organisers. During all the chaos we had lunch with the Dean of Business and explained the competition to him and how we as a team went about it. In the end we were very stressed during the month we had to prepare, but as soon as we all arrived at Brisbane airport we were pumped to go to Ukraine!
10 | Bond Business Review 132
Day 1 After taking heaps of flights from Brisbane, Darwin, Singapore and Turkey we finally arrived in Ukraine. We met our caretaker who took us straight to our hotel before setting off to explore the country before the competition started the next day. My first impression of Ukraine was that it was quite gloomy and grey. We had a great time sight seeing, eating Ukrainian food and just having fun together before the competition started.
Day 2 We got up early to meet all the other teams staying at the hotel before going to the competition’s opening ceremony. We met a lot of people from different parts of the world. We also became friendly rivals with Angola somehow and became besties with Mexico and Spain. At the opening ceremony we met with all teams and proudly held up the Australian flag. At the ceremony we were put into our pools for the semi-finals, which made me realise that it was time to prepare for the competition the next day.
Day 3 Competition day. As soon as we arrived at the competition venue, we were ready to do our best. All teams set up their own tables and the semi-finals began. We followed the same process we used in the Australian National Finals and were doing well to begin with. However our team began to experience different opinions and views and resulted in some arguments occurring. This brought tension to the group and we lost our team momentum. In the end we were not very confident in making it into the finals. That night we celebrated with our friends from Spain and Mexico who made it into the finals and partied our loss away with all the teams in the competition.
Day 4 Shopping day. As we didn’t make it into the finals we had a free day to do whatever we wanted so the girls all went shopping together for the whole day. That night was the closing ceremony where the winners were announced. The ceremony was amazing! There were dancers and delicious food. We had a great night with all our new friends and celebrated this great experience together. The winners were finally announced and Ukraine had won! To celebrate, Mexico started shoving tequila down our throats. We then moved on to a pub where they stuffed us with more alcohol.
Day 5 We went to bed early because we all had early flights. I took the chance to go to Paris with one of the girls for 5 days. Whilst this was my first time in Europe, the other three also went to Rome to begin their European adventure aswell.
Bond Business Review | 11
ry.com.au
An Interview with Local Entrepreneurs
Leading the Online Beauty World from Hair Salon to Australia’s #1 Online Beauty Store
R
ecreate Yourself - ry.com.au - is a locally grown business leading the Australian cosmetics online. RY noticed consumers were becoming hesitant to buy products from overseas as they were of questionable quality and authenticity. Directors, Bradley Carr and James Patten, joined together to fill this gap in the market. After partnering together in 2007, RY has become Australia’s largest online retailer for hair care, skin care and all beauty needs. They have earned over $10 million in revenue, with up to $50,000 a day during Christmas periods. They attract over 150,000 customers because of their competitive prices, speedy delivery, excellent customer services and reward schemes. James is very passionate about how
consumers behave and this is one of the many reasons he is so motivated to constantly improving a customer’s online shopping journey. I recently caught up with James to learn how he created his big beauty empire. How did the idea of developing an online beauty store develop? From a traditional bricks and mortar store we saw the rise of online shopping overseas and wanted to be the first here In Australia. What has been the proudest moment of RY history for you? When we started this business many people told us it would not work. Now with over one million Products shipped around Australia, I Feel proud I didn’t 12 | Bond Business Review 132
listen to them and went with my gut feeling. What are the hardest contingencies RY has ever faced and how were they overcome? I think the strength of the dollar has in the past made customers look overseas to save money. Increasing our level of customer service has meant that more customers stay loyal to us and continue to purchase our products. What are your secrets to remaining successful amidst the tough economic climate? It’s tempting when times are tough to make massive cutbacks, but its often during the tough times that real opportunities appear. Plan your growth and watch your numbers closely. Be agile and adapt your business model if needed.
What is one piece of advice you would give to aspiring young entrepreneurs? Know your weaknesses and address them in whatever way possible. You cannot rely on your strengths all the time, because in the long term they will be exposed in someway. My weakness is my organisational skills so I addressed this by making sure the people around me are the most organised people on the planet! What strategy/strategies do you exercise to differentiate yourself from competitors? We have Ry.com.au Core Values that we like to deliver from the top down. This means that every decision we make is based on what the customer wants and what we believe in. Also, lots of retail businesses employ outsourced IT support but we like to develop everything in-house to make sure we are flexible and ahead of the game. We like to have control! Where do you see ry.com.au in five years? We Opened our second Online store: www.kitchenwaresuperstore.com. au 24 months ago and it continues to grow rapidly as well. So I would like to think there will be more stores for us in the future. Next time you’re procrastinating, I suggest heading to their website: www.ry.com.au to do some online shopping and give yourself that much needed therapy during studying!
James’ Top 3 Expert Beauty Tips: 1) Wear sunscreen 2) Drink water 3) Start by using good skin care early to help the first signs of aging.
Bond Business Review | 13
From Idea to Venture:
Thinergize Fitness Mary Langley
Emily Hall
14 | Bond Business Review 132
How did Thinergize Fitness begin?
Thingergize Fitness began completely from an idea that I had. I know what it’s like to exercise in a gym and I wanted to start up a way that females could train in more comfortable environments that were outdoors amongst nature. My brother is a dietician, so being around him and seeing him in the health industry made me want to take part in it and do what I could to help others. I have a Certificate III and IV in Fitness, Senior First Aid, Advanced Nutrition and a boxing certificate (all acquired from HPC on the Gold Coast), so that’s really allowed me to get in the game and start the core functions of the company.
Who is your biggest inspiration?
My brother. The influence he has had on me has been incredible and he has passed on so much information and knowledge that it’s inspired me to venture into the health industry, but from a different angle.
What is the core function of Thinergize Fitness?
I specialise in one-on-one training, outdoor bootcamps, group sessions and mobile personal training. I focus a lot on training and strengthening. I aim to lead women in the right direction when it comes to training, so that they can become stronger without bulking up; which I’ve found a lot of women are fearful of. I want fitness to be fun for my clients and the bootcamps is something where families can motivate and inspire each other.
“
success is about liking yourself, liking what you do and liking how you do it
“
Have you always been into health and fitness?
Definitely! I’ve played sport heavily from a young age and I’ve represented Tasmania in basketball teams and have particpated soccer, and in state championships for athletics - so yes, I’ve always been fitness oriented.
How does Thinergize Fitness different from others in the area?
Mine will be different in that it will be affordable. I strongly disagree with how expensive it is to be healthy; healthy food, exercise attire and gym memberships are all expensive so I want Thinergize Fitness to be at a price point that my target market will find attractive so that they will be inclined to take that next step to becoming their fitter selves.
What has been the biggest help to you in promoting the brand? Definitely social media! Having my own Thinergize pages on Facebook and Instagram has made getting the brand out
there and it’s incredible seeing people from 20+ different countries share statuses and photos that I post. My target market are females aged 18-35 so I’ve found that this channel has been really effective in getting the word out there. Networking has also helped as I have many friends with a lot of avenues that I can network in, most particularly in universities which goes along well with the fact that the prices of Thinergize Fitness are so affordable, catered specifically for the average student.
Has there been any major setbacks?
The only setback is how many people are already involved in the fitness industry on the Gold Coast. This might prove to be a challenge but I’m hoping that once the name is out there and people are aware of the brand, it will run smoothly.
What has been the biggest accomplishment?
Not anything massive yet, but I’ve already seen a big difference in my clients, which for me having only started this venture recently. is an accomplishment in itself! I’ve always been one to help people so having the opportunity to share my knowledge about health and fitness and really seeing the results has been incredible.
What are your tips for other young people who are passionate and want to start their own business?
I read somewhere that ‘success is about liking yourself, liking what you do and liking how you do it’. Don’t feel like you are stuck in a certain field and can’t explore other interests. Try different things, go to different classes and see where it goes!
What is the 10-week bootcamp challenge?
It starts on 5th August and will go for ten weeks. I’ll be offering four bootcamp group sessions every week which my clients can attend as many of as they want. I will be providing a diet and nutrition plan, training singlets, prizes and an end of challenge BBQ. It will be fun and a great place where women can feel comfortable and come closer to their goals. Bring friends, come along and work hard!
What’s next?
In five years i’d love for Thinergize Fitness to have expanded Australia wide where i’ll have other trainers. I’m focusing a lot on marketing and building a client base and also want to expand the mobile personal training side of the business. A lot of the things I’ve learned so far is that health should become common knowledge and be taught in schools. I want to get out there and make Australia healthier- a big mission, but I want to play a part in it! To find out more about Thinergize Fitness and the 10week bootcamp challenge email: thinergizefitness@outlook.com, or visit: ’Thinergize Fitness’ on Facebook and Instagram
Bond Business Review | 15
A Bondy Entrepreneur
A Business Bondy Facing Entrepreneurial Success Bond University student, Jacob Collier, provides us with an insight into his new business,
M
Absolute Value Tuition.
ore often than not, companies establish themselves in an industry centered on some form of consumer necessity, which in turn drives growth and allows for a degree of stability. Whilst certainty in any form is a rare commodity in the business world, particular industries do enjoy consumer prioritisation (and therefore a greater stability) because they represent growth in areas other than the balance sheet. I have been fortunate enough to be among the thriving entrepreneurial culture at Bond University, alerting me to the importance of utilising individual means. It is through this idea of common purpose, being that of a critical thinking culture of tertiary students, which eventually brought the growth industry of education to my attention. As an industry representing the future of our younger generations, education will no doubt continue to create innovation and inspire development on a global scale, evident already through the preparation of the National Curriculum. As a result, in late 2011 I jumped on board this opportunity to become involved with a market that promises growth in a number of areas: fiscally, structurally and geographically. Absolute Value Tuition aims to utilise recently mastered and thus relevant skills of high achieving tertiary students, to build meaningful relationships with primary and secondary school students. After-school tuition has presented itself as a brilliant growth market, with over 10 new companies becoming members of the Australian Tutoring Association (ATA) in Queensland within the first quarter of 2013 alone. Additionally, the most recent National Tuition Survey (2012) administered by the ATA reveals that 72% of students from a broad perspective are never exposed to any type of tuition in their subjects, when only the top 15% of these students feel they do not need assistance. This in itself highlights a fantastic growth market, existing solely due to the lack of high quality programs on the market. Through hand selection and quality assurance, we aim to represent the capstone of quality and fill this market potential through both understanding and reliability. Absolute Value Tuition also strives to embody this concept of future growth through community development. In addition to our charity relationship with SPELD QLD, dealing with dyslexia among other specific learning difficulties, we run a student-totutor program in which high achieving year 12 students have the option to gain practical peer-to-peer experience through tutoring for us. In turn, word of mouth growth and feedback through these students’ networks continue to teach our own staff about the workings of the education industry within Queensland. If there were a moral to this story, it would be that our experiences as a team have taught us above everything else to question “Are you making the most of your environment?” Regardless of time commitments or working culture, recognizing a niche and exposing it can lead to opportunities not afforded to many. For more information on Jacob’s business, visit: 16 | Bond Business Review 132 www.absolutevaluetuition.com.au
Bond Business Review | 17
1930’s
1900’s
The Cinema Age
The Beginnings
Suits through the Ages
“
A suit is designed to enhance a man’s physique and masculinity
“
- Matt Jensen (Aust. Suit Designer)
Retrosexual
2000’s
Metrosexual
Constructed Tailoring
Suits have spent more than a century and a half at the pinnacle of men’s fashion, undoubtedly making them the ultimate symbol of power, style and class. An interesting fact is that it was in fact the industrial revolution which has influenced the concept of ‘suiting up’ as a standard corporate ensemble. The suit has been altered throughout time to suit the changes in lifestyle and needs. The cut of the shoulders dates back to the military, the flat lapel was developed from a stand up collar designed to keep out the cold amongst the members of the Navy, whilst cuff buttons were designed for surgeons in the 19th Century so they could roll up their sleeves whilst operating (working in shirtsleeves was for the tradesmen social status). Today suits continue to be designed to ‘suit’ our busy lifestyles. The recent revolution is the design of a suit jacket which can be folded and stored on aeroplanes, hassle free! Not only does a suit bring confidence to a man, but with a diverse range of designs, materials and colours available, the suit is the perfect opportunity for a male to express his individuality. Italian fashion powerhouse Giorgio Armani believes “the most important element is that the wearer feels confident and comfortable.”
2010
1940’s
Comedian and host of Channel Ten’s The Project, Charlie Pickering, has always loved suits, but recently discovered their practical value. “When I was studying at law school and getting clerkships at various law firms, I was probably more focused on wearing a nice suit than doing a good job. I think a 33-year-old middle-class guy maybe doesn’t carry that much gravitas when talking about serious news, but when you put on a decent tie and jacket, people listen.”
1990’s
1950’s Age of Charisma
1960’s
Rise of Pop Culture
1970’s
Minimalism
Hedonism
1980’s
18 | Bond Business Review 132 Deconstruction
“
Being good in business is the most fascinating kind of art. Making money is art, and working is art, and good business is the best art. - Andy Warhol -
“
Bond Business Review | 19
zgirl Power
Most Powerful Businesswomen in the World #1
#2
#4
#5
#3
#1 Sheryl Sandberg: Facebook COO | #2 Indra Nooyi : CEO of PepsiCO | #3 Irene Rosenfeld : CEO of Craft | #4 Virginia Rometty: CEO of IMB | #5 Ursula Burns: CEO Xerox Corp 20 | Bond Business Review 132
We Can Only Dream
The 2013 World Rich List Forbes recently released their 2013 list of Billionaires. The list now comprises 1,426 individuals with an aggregate net worth of $5.4 trillion. The US leads the list with 442 of their billionaires making the list, closely followed by the Asia Pacific with 386. Forbes suggests it is the resurgent asset prices which are the driving force behind the rising wealth of the super rich around the globe. Whilst there are many familiar faces on the list, there are also many fresh faces who are worth keeping an eye on! For the full list visit: http://www.forbes.com/sites/luisakroll/2013/03/04/insidethe-2013-billionaires-list-facts-and-figures/
#1
Carlos Sli Earnings m Helu : $73 Bil lion Age: 73 Source o f Wealth : Telcom
Ortega Amancia 7 Billion : $5 Earnings 6 7 Age: Zara f Wealth: Source o
#2
Bill Gates Earnings: $67 Billion Age: 57 Source of Wealth: Microsoft
Carlos Slim Helu is the world’s richest man for the fourth year in a row. He clocks in at $4 billion more than a year ago, thanks to surging stock prices at his financial arm, Grupo Financiero Inbursa, and his Grupo Carso industrial and retail giant. Pan-Latin American mobile telecom outfit, America Movil, remains his most valuable holding at $36.3 billion; the company spread its wings to Europe in the past year, buying pieces of Dutch telecom company KPN and Telekom Austria.
#3
Warren Bu ffet Earnings: $5 3.5 Billion Age: 83 Source of W ealth: Berksh ire Hath
#4 away
Bond Business Review | 21
n Larry Elliso BIllion 2 $4 s: ng Earni Age: 68 ealth: Oracle Source of W
#5
A Career on The Side
Unsual Jobs that Pay Surprisingly Well Body Embalmer Earnings: $43,680 per year Hot Dog Vendor Earnings: Up to $100,000 per year Personal Shopper: Earnings: Up to $100,000+ per year Ice Cream Taster Earnings: $56,000 per year VIrtual Head Hunter Earnings: Up to $10,000 per referral Live Mannequin Earnings: $100 per hour Funeral Service Manager Earnings: $79,930 a year Body Part Model Earnings: up to $1000 per afternoon
Gold Coast Young Entrepreneur of the Year Awards Nominees for the 2013 Business News Publications’ Young Entrepreneur Awards are opening this month. All business owners aged 40 and under who operate in the Gold Coast region are strongly encouraged to enter. As a winner you will be crowned ‘Gold Coast’s Young Entreprenuer of 2013’ and profiled in a cover story for the Gold Coast Business News November issue. All finalists will also be profiled in that issue. If you would like to find out more information please contact Grace Charlton at: gc@businessnewspublications.com. au 22 | Bond Business Review 132
Most Innovative Office Spaces from where you would rather be working...
BBC North, MediaCityUK
Grupo Challenges, California
Macquarie’s Ropemaker Place
Lamar Advertising, Luisiana
RDM Innovation Dock, Netherlands
Corporate Campus, Netherlands
MyMoneyPark, Switzerland
Google Israel, Tel Aviv
Lego PMD, Denmark
Bond Business Review | 23
By Brigette Foot
Bangladesh Sweatshops How many more have to die? By Brigette Foot
T
he Rana Plaza factory fire in Bangaldes, during April this year, has been labelled as one of the world’s most tragic industrial accidents, killing 1,132 people. Whilst this might be the most recent accident, this is only one of hundreds of industrial accidents which have occurred in developing countries. In Bangladesh there are four million garment workers who earn, on average, $40 per month. This makes the garment sector the largest employment generator in Bangladesh, exporting approximately $21 billion. It is therefore evident that without this industry the income of these workers would be less, and the overall economic prosperity would also far less. However, just because it is necessary for them to maintain employment, this does not mean garment workers should not be entitled to a safer working environment where their lives are not put at risk on a daily basis.
What is a Sweatshop?
A sweatshop is a manufacturing facility where workers create garments for the world’s use. They are usually located in developing nations where labour laws are
lacking or unenforced. As a consequence, the people making the clothes and shoes for our own use, are enduring poor and dangerous working conditions during long hours of work.
Steps Forward
US president, Barack Obama, and the EU both threatened punitive measures on Bangladesh if their safety standards were not improved. In response to this, Bangladesh has taken a crucial step forward. On Monday 15th July, Bangladesh approved a labour law to improve worker’s rights including having the freedom to form trade unions. The legislation has provisions including a central fund to improve workers living standards through a requirement of 5% of annual profits of companies to be deposited into employee welfare funds.
Taking Action
Oxfam is one NGO leading the pressure for companies to improve the safety of their workers and enhance the transparency of their sweatshop factory locations. Oxfam is pressuring our clothing retailers to sign the Bangladesh Fire and Safety Accord (BRFA) to guarantee safer working conditions for their garment workers in Bangladesh, and | Bond to also 24 reveal theBusiness locationReview of their132 factories
so safety assessments can be carried out. In May at the International Labour Organisation in Geneva, many major retail companies supported the Bangladesh fire and safety accord. This ILO has compiled a list of those organisations who have become signatories to the agreement. For the full list visit the International Labour Organisation’s website.
Becoming an Ethical Shopper
The list below is an indication of the companies who are signatories to the BRFA. Shopping from these companies will help you to make ethical purchasing decisions. Cotton On Forever New Kmart Target Espirit Puma Mango H&M Newlook Gstar Mothercare Tesco
Bond Business Review | 25
What Business has to learn from Science By Kraig Tou
One barrier to innovation for business can be understood through a quote by Scott Adams, a cartoon designer: “Creativity is allowing yourself to make mistakes. The art is knowing which ones to keep.” In business every mistake puts a dent in profits. And even if there is profit in the long run capital must be set aside to fade the variance. Research is often not economically viable. It often has non-monetary objectives. Investment is often called funding. Peter Drucker has commented in Managing for the Future on how cost intensive and non economically viable science is. This does not mean there are no lessons to be learned from the experimental nature of science and research.
The Exception
of being regarded as a contribution. As per Drucker: “There is nothing so useless as doing efficiently that which should not have been done at all.” The Australian government has recently made medical school unavailable to international students. Clearly results are expected for every penny input. Not just any result but domestic results. Similarly business seeks to create value with its shareholders and sector as the priority not merely random contributions.
fundamental. To an insufficient extent it has. Piracy of media is a prime example. Traditionally thought of as a locus to profits, forerunners are turning to both accept and monetize. Media site 7 Sky accepts and plays all files. The program detects the holder of the copyright and appropriates revenue from commercials to them on a pro rata basis. More of this sort of revolutionary creativity is needed to face the challenges of this day and age.
What Business Has To Learn From Medicine.
Medicine constantly looks to other cultures for solutions. Chinese herbs are now a mainstay in western medicine. An unlikely cure to many skin diseases has been found: letting toothless fish nibble away at dead or infected skin. This method is age old in China. Surely solutions to problems in business must exist in tradition. Business too has had a start but there is much untapped potential. The Chinese classic Art of War by Sunzi is now on the prescribed reading lists of many business schools. Why can’t more resources already known to man be brought into the limelight?
“
Medicine is unique among sciences and presents a medium between innovation and what is permitted in a harshly results oriented industry. For many sciences the goal is to discover the truth and add to the repository of human knowledge. How that truth serves mankind is irrelevant. There is no problem and solution. Only proofs, papers, reviews. But the continuum of information is not the primary function of medicine. Rather mankind’s health is. Funding views the potential humanitarian contribution as a top priority the same way investors view profit in business. In business what is sought is not what is positive but what is optimum. What good is a novel marketing scheme when people are made aware but not inclined to purchase? Along the same lines, what good is a new surgery if it offers no health benefits and the money spent on research outweighs the added efficiency? This is vastly different from a shorter mathematical proof to a known answer being capable
Creativity is allowing yourself to make mistakes. The art is knowing which ones to keep.
“
The Inherent Difference
Both focus on objectives. Both seek to maximise output from capital. Both are realistic rather than abstract. The stakes are capital and human lives, not wasted tenureships. Yet why is there so much more creativity and innovation in medicine? Medicine is constantly looking to reinvent the basics. Many things previously deemed fundamental are now obsolete. It was traditionally thought that anything which has a molecular weight of more than 500 Daltons has to be injected as it is not bioavailable orally, nasally, trans dermally, or otherwise. However new transdermal delivery systems for insulin have been revealed at the 3rd summit on bioavailability and bioequivalence. Business too should look to question methods deemed 26 | Bond Business Review 132
Medicine considers repercussions and possible consequences from all different perspectives when innovating. When a drug is developed short term side effects, possible long term unknown side effects, cost and availability, sustainability, possible different reactions from different individuals, and many other factors are considered. While these are all evaluated in innovative business ideas, the thoroughness is in most situations lacking compared to the rigour found in medicine. In worse situations the thoroughness can be utterly lacking. Drug development usually undergoes at least 3 phases and includes both statistical modelling and clinical trials. Business is often caught up in first mover advantage and trends, ignoring
The innovation found in medicine is unlike that found in any other science or art. It is creative yet practical, objective yet unrestricted, broad yet focused, and thorough yet efficient. Business is not a means of expression, nor is it a search for the truth. It is strikingly similar to medicine. Creativity does not serve its purpose until it materializes into numbers, whether it be lives saved or profit gained.
Sourcing the Creativity
Where does creativity lie? In the masses. In Flow and Psychology of Discovery and Invention Mihaly Csikszentmihalyi argues that creativity arises when people experience the world in novel ways. It follows that any particular individuals can only have so many unique experiences. The unique experiences of the masses have to be pooled for the best creative juices. Yet companies only utilize the creativity of a few. Science is the best example of open innovation. In science everyone is free to do research, whether they be a student or professor. They have the right to be reviewed on the merit of their work. It doesn’t matter if they are at a top institution or a community college. If that work is good, they have a fighting chance to move to an institution with better facilities, obtain funding for further research, and even find collaboration from people much more respected than them. It is natural for one to argue that this only applies to those in the academic circle. This is not always the case. For example the Millennium Prize Problems, a series of 7 mathematical problems
with prizes of USD 1M each are open to anyone and everyone. Even if it were the case, workloads are constantly shifted to the public. Many independent computer owners using their computing power to find large undiscovered prime numbers are not mathematicians or academics. The Great Internet Mersenne Prime Search holds various rewards up to USD 25,000 by Electronic Frontier Foundation.
crowd sourcing? I know for a fact there is no CEO of medicine, or board of directors of physics, only scientists who contribute.
It follows that one would then be likely to
There are many obstacles to a corporation being openly run. Strangely these obstacles also exist in science being openly developed. In Crowdsourcing: Why the power of the crowd drives the future of business (2008) Jeff Howe outlines the obstacles. Firstly abuse must be prevented. There must be a system in place for people who have no legitimate intention to participate, do not follow rules, and people who are not up to the standard required for the task. In science there is the scientific method and the peer review system. Secondly there must be a system to reward contributions. In science there is a well established system of awards, prizes, and academic positions. Thirdly and most difficult of all how to enforce deadlines. Even in science open innovation is available for matters that are not of immediate importance. But for matters where resolution is required, a team is often put together by governments or institutions.
“
Innovation is the specific instrument of entrepreneurship… the act that endows resources with a new capacity to create wealth.
“
foresight. The slew of touch screen laptops and convertible tablet-laptops can be seen as an example. The default position of extending one’s hand is ergonomically inferior to leaving it on the mouse. The range of motion of raising one’s hand to the screen whenever one needs a mouse function is much greater than leaving it on the mouse. Typing with both hands extended wears the shoulder joint. If the touchscreen is put on the table, the neck has to be bent to look downwards. Such side effects should not be ignored in favour of short term profits. The more accurate and comprehensive assessment is pre innovation, the more risks can be taken and the more freedom there will be to innovate.
argue that businesses work as cohesive units and are not unrelated problems or YouTube videos. While this is true, crowdsourcing can equally apply to large scale long term projects. Of the 3 computer operating systems Microsoft, Apple’s Mac OS, and Linux, the former two are traditional business models and the latter is completely open sourced. Finally some might argue that open sourcing only works for projects where there is not a huge risk involved. In fact a novel start up company CrowdMed is open sourcing medical diagnosis and has quickly grown to be worth 1.1 million. If lives are not a huge risk, Peter Drucker would not be able to tell you what is. Crowdsourcing is only presently utilized in business to a very limited extent. It is often thought of being limited to media sharing or social networking. But one must remember different scientists have been publishing their proofs and combining them to form bodies of sciences centuries before the word blog was coined. Heineken recently held an open sourcing competition for beer design. Why couldn’t the open sourcing have been for the CEOs agenda for the month? Or open voting for a decision normally made by the board? In fact why can’t a whole corporation be run through Bond Business Review | 27
Peter Drucker has said: “No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under a leadership composed of average human beings.”
The Challenge
Learning from another field is not about being interdisciplinary. That happens for specialization or convenience. Applying is different from learning from. A financial lawyer might not be able to think like a financier. A doctor who works on medical information systems may not be able to think like a programmer. Each field moulds a person’s approach to life. Lawyers take any pledge with a pinch of salt unless it Is accompanied with writing and signature. Statisticians try to assume numbers for variables in day to day risk rewards situations instead of saying “there are too many variables, I’ll go with gut”. This is not what the subject teaches through books. This does not depend on the person’s other endeavours needing implementation of their forte. This is a wisdom. This is a lesson learned. And I feel businessmen and managers have a lot to learn from scientists and doctors regarding innovation.
Celebrity Cover Story
The 9 Business Laws of
Justin Timberlake
R
You can learn more from this wise superstar than you first might realise
ising to stardom in the 90’s as a member of boy band, ‘N Sync, Justin Timberlake is a young, handsome and multi-talented superstar who has maintained a very long and successful career. His 50 million sold records, 6 Grammys and 4 Emmys are not just handed his way because of his catchy tunes and slick dance moves. The key to JT’s longevity of success is embedded in his brand management. This has allowed JT to remain fresh, exciting and modern in everything he does. There are nine things we can learn from JT’s career to help us grow into very successful businessmen and businesswomen.
1. Your appearance does matter
I don’t just mean fancy suits, fashionable shoes and clean haircuts. Every time you present yourself to the world, it is a reflection of you as an individual or your company. Look at how your company is perceived from every angle and learn to own your image. Ensure all promotional work is clever and exciting and represents the image you want to portray. Taking JT as an example, his new website is perfectly slick and his commercials have the most incredibly high production values. He wants to be the best in the business and he consistently presents himself in a professional and polished way to emphasise his dedication and passion to his career.
million per annum), CEO of Tennman Records, has a high-end brand of tequila called 901 and has also invested $16 million in golf courses. JT has definitely diversified well!
3. Own your sector
Everyone wants to be number one. If you’re making cupcakes, you want to bake the best cupcakes in the world and compete with all the top chefs and bakers. If you want to be a popstar then you have to ensure your songs can compete with the Rihannas and Beyonces of the world. There is no point entering a market if you don’t believe you can be the best there. There are too many competitors already battling in the market and if you can’t be the best, then you’re just wasting your time and money. Set the bar high for yourself so you can bring those big ambitions of yours to life! Remember, JT doesn’t create music to reach number 15 on
2. Remember to diversify
Expanding your portfolio is the key to minimising risk and driving revenue streams. Big stars like Beyonce, Bieber and Katy Perry have all released films, while JT has expanded into movies such as The Social Network, Friends with Benefits and Bad Teacher as well as being a partner in MySpace. He is also co-founder of fashion label, William Rast (pulling an estimated $50 Image source: idolator.com
28 | Bond Business Review 132
the charts, he makes music to reach number one.
4. Collaborate with the best
One of the main reasons why JT is so successful is because he chooses the best to work with. By having a team where each individual is the best at what they do, it becomes almost certain that everything you do will be the best. Timbaland is the primary legend behind writing JT’s music, which is pretty much like having Google’s Eric Schmidt design and create your website. Genius!
5. Share the praise
By acknowledging your team’s contributions, you are not only complimenting them and increasing their likeliness to stay on board, but you’re creating them into stars. You’re also patting yourself on the back for being so smart to hire the most
Image source:hqimages4u.blogspot.com
previews in the lead up to the album release. So even as an announcement, announcing more announcements to come, JT was able to work the press to his advantage to create intriguing excitement and get the world talking.
8. Love what you do
Loving your job drives passion. And passion means your job doesn’t seem like a job. This increases your motivation and dedication to work hard and become the best in the business. JT might have been fortunate enough to be blessed with unique acting and singing talents, but he had to work hard to get where he is. Find what you love and stick to it. You will enjoy the beauty of life so much more and be successful in so many more avenues than just financially.
9. Marry up
Too young you say? I beg to differ. As two of the last decade’s richest performers, Bieber and JT, have increased their popularity and hype by dating equally famous partners, why not do the same? For Biebs, this was Selena Gomez and for JT, it was his marriage to Jessica Biel just before starting his album cycle. If you want to stay fresh in your audience’s mind, then this is the perfect tactic to exercise. Mind you, I don’t recommend going around and dating the most successful woman you can, just for the sake of it...because this could end badly, really badly.
amazing people in the first place.
6.Make your audience wait
I would say this is what JT has done best. During 10 years he only released two albums and he still managed to avoid being forgotten, or alternatively remembered as the ‘one hit wonder’. Whilst his output was minimal, he diversified (see step 2) allowing for income in a variety of ways. And by maintaining an output through doing less, he achieved a maximised minimum and was able increase the value of his products. By creating a cult of fans or loyal customers who will anxiously wait, you can increase prices because they know what they receive
is special. When you do something, you not only want it to become news, but you want it to become surprising news. You want people to talk about why you’re thinking of heading in a particular way.
7. Work the press
Earlier in the year every media organisation carried a story on the release of JT’s new album, his comeback appearance at the Grammys and his latest commercials. JT created so much buzz through a twitter announcement promising a big surprise reveal, only for the world to find out it was a 30 second commercial for his new music which promised more Bond Business Review | 29
Image source: www.glogster.com
How advertising is shaping a culture near you. By Elouise Hill
W
hat does a ‘brand’ mean to you? Will you only buy Nike running shoes? Would you ever trade in your Apple laptop or iPhone? Brand loyalty is what every company strives for with its products. A brand is what differentiates a particular product from the rest of its competition. A brand is what shapes the culture and personality for a company. As a consumer, we position particular brands when making a purchase decision. Our decisions are based on prior knowledge and affiliation of the brand with a specific product. What we may not realise is, how advertising helps shape our perceptions and understanding of a brand’s personality and culture. An iconic brand tells a story, and creates a brand culture that can be so effective that an advertisement can instantly be recognised in conjunction with a particular brand, without directly showing the logo or product. As David Ogilvy once said, “Every advertisement must contribute to the longterm personality of the brand.” Ogilvy, who is known as ‘the father of advertising’, was
not wrong. A brand is typically created through advertising, as it is considered to be the most effective communication tool for expressing brand personality. All types of advertising can influence this personality, and every aspect from an advertising campaign plays a vital role in shaping the culture that the brand is trying to portray. The type of music played on a television advertisement and the type of celebrity selected to endorse a particular product, will all mould a specific type of image that the brand is trying to project. If we as a consumer feel a positive, emotional connection with any aspect of the brand, we will be more likely to favour it over its competitors. This is not your typical ‘text-book marketing’. Consumers will have more respect for a brand that plays a vital role in society. Writer of the book Culture Share, Douglas Holt explains, “brands should have identities that are timeless, that stand apart from the march of history.” If we respect a brand, and the culture it portrays, we are likely to purchase the product over its competitors, and even start to reflect that coveted ‘brand loyalty’, which every 30 | Bond Business Review 132
company strives for. The way a brand can communicate and project its culture is through advertising that maintains the culture throughout every single campaign that is launched over time. As consumers, we can only have one idea or image of a brand. If we love a brand, we will want to be apart of it; and if we loathe it, we won’t hesitate to let people know. There is generally, never a twosided opinion on a particular product. If a company can maintain a consistent brand image and culture through it’s advertising, we will be able to recognise and associate the brand with its culture over time. If it’s a positive recognition, then consumer loyalty will grow along with the story and image of the brand. An advertising agency’s job is to develop a deep understanding of the brand’s culture, so that they can continue this story and help strengthen the relationship between the brand and its consumers. Brand culture is something that goes beyond a tangible value, as consumer loyalty is simply something that money cannot buy.
Take Your Best Shot Advertising and the Modern Consumer By Adam Rodwell
A
known concept to consumers and artists alike, the respectable practice of Advertising has faced numerous obstacles when attempting to create what is regarded as an “effective” campaign. Of these obstacles, one has proven the most crucial, challenging and sometimes most catastrophic of all; the consumer. Although mass psychology was once used to stir the tide of consumers on a local or national level, the digital frontier has created a platform where the exchange rate of ideas and opinions is unprecedented. As a result, Advertising must now deal with the modern consumer. This article explores how the modern consumer differs from the previous one, how advertising has responded in kind, and whether it is possible that the modern consumer is simply immune to the effects of advertising. Traditional theories of advertising have depicted the consumer as a by-product of their surrounding environment. An issue arises where the consumer’s environment is no longer restricted by physical boundaries. Namely, the internet has allowed for vast communication and exposure. Such exposure has distorted consumer preferences and tastes with those circulating online. The consumer is no longer pressured by immediate conformity, and is able to search and refine for an environment which suits him or her. This modern consumer is better educated, more efficient and less inclined to feel persuasion. What does this new environment mean for the art of advertising? Or better yet,
how should a campaign respond? The consumer is able to dismiss options which do not appeal to him/her, so a potential answer exists in personalisation. The strategy of personalisation differs from market research, as advertisements are no longer generated by trends for the majority, but for everybody. The emphasis shifts from the message which agencies are attempting to convey, to the meaning which an individual consumer interprets. To achieve this, a great deal of surveillance is placed on an individual user. When the user views a website, their decisions and preferences are recorded as data. This Intel is sold to advertising networks, allowing publishers to target consumers individually. Although such methods seem to increase sales and loyalty, a blurred line is formed between what the consumer permits, and what the consumer unknowingly allows. More passionate web users will protest against the invasion of privacy, whilst others will admire that less effort is required to find what they’re looking for. Although this may concern some, a deeper issue underlies the concept of personalization. If the consumer becomes aware of this process, and doesn’t like what he/she finds, advertising may have a deterrent effect. The modern consumer has less time and less patience in this information age. There is also a growing trend towards independence at a younger age. Consumers no longer feel convinced that something is right for them, but research independently to make an educated Bond Business Review | 31
choice. The modern consumer may opt to generate multiple online accounts, disable surveillance tools, or have the know-how to develop browsers which don’t collaborate with Ad Networks. However, these preventative measures against personalization are not sought by every modern consumer, and so the question is modified: Which type of consumer is immune to advertising? Perhaps this person is insightful of artistic methods, entirely self-aware of their wants and desires, and completely independent in their decision making. A person with these traits will not leap with the masses, but resiliently work within their own budget and lifestyle. Although the masses may not fit this description, the availability of education and increasing independence may lead to increasing “immune” consumerism. The art of advertising might focus less on selling, persuading or complimenting the demand of all consumers. Instead, methods might stress the uniqueness of a product, and how creatively it is presented, placing the individual consumer in control. “The Rebel Sell”, authored by philosopher Joseph Heath and columnist Andrew Potter, reads “the critique of mass society has been one of the most powerful forces driving consumerism for the past forty years.” If all consumers eventually seek to differentiate from others, advertising should be warned: The decision will be ours, not yours. But hey, take your best shot.
Collective Intelligence in Marketing
By Jade Hayward
This concept of collective intelligence is primarily concerned with the Internet and more specifically Web 2.0, an online space where users often have control over the content. The idea of user-generated content represents collective intelligence in a large sense. Take Wikipedia for example, an entire online encyclopedia with almost everyone and everything you could think of listed. This website, used every day by millions of people around the world, is user-generated, meaning that anyone is
“
Getting info off the internet is like taking a drink from a fire hydrant .
“
able to make amendments or additions to the descriptions by submitting a query to edit. By having this information available to the public, created by a number of individuals with different interests and professional fields, collective intelligence comes to life – a masterpiece compiled with the efforts of a large community. Due to the creation of Wikipedia and many other online sources of information and ideas, everyday people with Internet access are able to expand their thoughts, ideas and information. The wealth of information available because of collective intelligence is almost unfathomable. As founder of a large IT company, Mitchel Kapor, once said, With all of this information created by the masses for anyone to view, one can only imagine the tremendous implications to professional fields. From something as small as a team deciding on an appropriate collateral aligned with the marketing strategy, to something as large as crowdsourcing amongst consumers for product development strategies, collective intelligence impacts marketing in a big way. The idea of participation and synergy amongst online communities results in increased connectivity and thought production. With this, individuals are able to connect and converse to form ideas and creations that would not have otherwise been possible. This is where good ideas come from; the collaboration of input from a group of people. In this sense, collective intelligence is
used frequently in the field of marketing communications (as well as numerous other professions) to guide the development of strategies for how products and/or services are marketed
“
A brand is no longer what we tell the consumer it is. It is what consumers tell each other - scott cook
“
C
ollective intelligence can be defined as the capacity of a human community to evolve toward high order complexity thought, problem-solving and integration through collaboration and innovation. It focuses on the results that are achieved from the sharing of information and ideas; results that should reveal the more complex and detailed thoughts of a community as opposed to an individual.
to consumers. Gaining insight into the thoughts and opinions of consumers and other business professionals through collective intelligence can lead to more specific target marketing, which in turn leads to increased sales. The experiences that individuals have with particular products or brands are now having a major influence on the expectations that others have of that product or brand. Having new ways to share information and collaborate more freely leads to such processes, which means that... Collective intelligence has therefore created transparency between organisations and consumers. With the truth in the public domain, organisations must be accountable to customers for their quality of goods and services. Additionally, false or misleading advertising will be caught out and shared, so organisations must be weary of the content being published about them and must be reactive (or preferably proactive) in dealing with it. Tools for monitoring such online content are available, such as media monitors, radian 6 and meltwater buzz, amongst many others. Not only does collective intelligence facilitate broader knowledge and idea generation capabilities, it also provides a platform for effective internal and external information sharing. As a professional in the marketing communications field, connecting with employees internally and suppliers, customers, partners, agencies etc. externally is vital for operations. Collective intelligence means that organisations can share information and data to such stakeholders, as well as being able to build interfaces that can show the same information on computer screens around the world. It’s not just the marketing communications profession that is utilising and benefitting from this, collective intelligence is being used to many organisations’ advantages around the world. Web 2.0 and online connections are essentially allowing us to communicate and network better with one another to generate worthy content. It allows us to create entire new communities online with people we have never met before, but may have ideas to resolve our problems and to improve our processes. Coming together has never seen such success; after all, nobody is as smart as everybody.
32 32 || Bond Bond Business Business Review Review 132 132
The Impact of Transmedia Storytelling on the Marketing Communications Profession By Jade Hayward
T
ransmedia storytelling represents a process where integral elements of a fiction get dispersed systematically across multiple delivery channels for the purpose of creating a unified and coordinated entertainment experience. It is the ability to leverage content across multiple media platforms, allowing easier access to information and improving the customer experience through wide-ranging communications. It is a widely regarded fact that the marketing umbrella encompasses numerous individual fields, such as public relations, promotions and sales. Another important and significant function of marketing is that of advertising, which is the method used by businesses, companies and organisations to promote their goods and services to the public. One of the most renowned and successful advertising
“
Marketing is no longer about the stuff you make, but about the stories you tell.
“
campaigns in the last few years was that of ‘Decoded’, an integrated campaign between Bing search engine and pop icon Jay-Z. The campaign was unique in a number of ways; not only was it based on the idea of consumer interaction and control, it also revolutionised advertising by introducing the world to a viral transmedia storytelling campaign. Utilising search engines, social media, radio stations and urban structures, the campaign told the story of Jay-Z’s life in an extraordinary way. Being one of the first of its kind, the campaign was widely publicized and it’s success provided foundations for advertisers and marketers plans for the future. Evidently, the emergence of transmedia storytelling has already begun to influence and shape the world of marketing, particularly in the field of advertising. Not only does transmedia storytelling provide various media avenues for consumers to receive information, it also provides a comprehensive story with room for expansion and intricate details on characters and experiences. Being able to share more information across more media platforms gives the marketer increased access to consumers, a wider scope to tell a story and above all, significantly enhanced exposure to the world.
or institution. When the goal of a PR profession is to maintain relationships amongst publics and stakeholders, exposure is a key in reaching these specific audiences. The notion of transmedia storytelling facilitates such exposure, allowing organisations and/or individuals to take advantage of various media outlets to attract wider audiences. Obama’s U.S. Election Campaign in 2008 is a perfect example of this concept in action. Rather than following mainstream campaign media, Obama and his team turned to the Web 2.0. Taking advantage of various internet-based media outlets was fundamental to Obama and his campaign team, who managed to get out his story and messages in ways that had not been considered by previous candidates. A clear example of this transmedia storytelling success can be seen by the fact that the official campaign videos on YouTube were watched for 14.5 million hours, which would have cost over $47 million if such material was to be broadcast on TV. Not only did this innovative method of campaigning save Obama’s team a significant amount of money, it also achieved just as much, if not more exposure than it would have were it aired through traditional media. Dispersing his messages through Myspace and Facebook, having text messages and emails sent out to his subscribers and having all of his policies available online would have exposed his campaign to far more people than if he had stuck to radio and TV methods only. As one of the most technologically savvy candidates to run for presidency, it can be safely assumed that Obama significantly increased his popularity amongst the younger (18-25 year-old) demographic by utilising transmedia storytelling. Overall, Obama managed to successfully and strategically leverage different media platforms to his advantage throughout the entirety of his 2008 election campaign, striking the perfect balance between his message and his medium. Based on such examples, I think it is clear not only that transmedia storytelling will effect the marketing communications profession on a large scale, but also that this influence has already begun and will continue to expand in coming years. By telling a compelling story, people’s attention will be captured and the development of the brand will be cultivated. The interest and exposure of brands to the world through transmedia storytelling will assist the brand to grow further and drive new customers to the organisation by sharing a story through social media platforms. Such enabling technology shows us that twentyfirst century branding is not just about making consumers’ lives better...
Another important function of marketing is public relations (PR), which is a promotion intended to create goodwill for a person Bond Business Review | 33 Bond Business Review | 33
Goodbye Mr Fed. F
By Helena Michael
inancial markets have been taken on a rollercoaster ride the past few weeks as the US Federal Reserve has kept investors on edge in the fear that there will be an easing of the US’s bond-buying program.
What is the bond-buying program?
In summary, the US Federal Reserve’s money printing through the purchase of about $US85 billion in bonds per month was aimed at lowering long-term interest rates in order to encourage borrowing, spending and investing. The program has been responsible for flooding the international share market with large amounts of liquidity. The program was aimed at improving the weak US economy, which hit rock bottom in 2009 with the GFC woes.
What is the Fed doing?
US Federal Reserve chairman Ben Bernanke has revealed that the US Federal Reserve will begin to ease back on its bond-buying program as the US economy improves. However, Bernanke stressed that it would only retract its quantitative easing program if the economy were strong enough. The US Federal Reserve would still like to see the US unemployment rate fall to 6.5% (currently 7.6%) and inflation rates to improve before any drastic cutbacks are made. In order to not disturb the market too much, the Fed also reassured investors that interest rates would not rise just because there would be a tapering of stimulus measures.
What happened on the announcement?
The news caused the US dollar to soar with investors flocking to the US economy based on the prospect that interest rates will rise on an improving economy. Consequently, the Australian sharemarket lost around $25 billion on the same day the news was announced, hitting an all time two-year low as it dipped below 93 US cents. to drop. With the US Federal Reserve’s announcement to taper its bond-buying program in the future, investors responded by ensuing the sky-is-falling sell-off in the market. Whilst, the news may have caused financial loss to institutions around the world it certainly is not a bad thing if the US Federal Reserve believes that the market is just about ready to stand on its own two feet. 34 | Bond Business Review 132
So is this good or bad news for Australia? To date, the Australia dollar has fallen almost 15% against the US-dollar in only two months. In fact, a Chief economist at the Bank of America has stated that if the US economy continues to improve then the Australian currency will continue to drop. Some may believe the US Federal Reserve’s decision is concerning for Australia when the currency rallied above $1US dollar only a short few months ago. However, the currency dropping is actually goods news because it will assist in improving export returns, trade and stabilising the national income. The Reserve Bank of Australia actually announced that it has wanted to see the Australian currency drop because it acts like an interest rate cut. The downside to our weakening dollar against the US will mean that the cost of imports like oil could rise, with the cost of petrol potentially increasing 10c a litre.
An Insight into Investment Banking
W
e recently met with Lewis Bourne, who undertook a 12-week internship in the Equity Capital Markets (ECM) division of Macquarie Capital in Sydney. Lewis has now secured a graduate position with Macquarie Capital beginning January 2014. We asked him a few questions to gain a better insight into the industry and his experience throughout the process.
Tell us a bit your experience at your working environment? Yes, long work hours are part and parcel of any junior role within Macquarie Capital:
Overall, my experience at Macquarie Capital was very positive. I found that I got along well with all of the staff members with whom I came into contact (regardless of their rank) and I was afforded a lot of respect (which isn’t always the case at other Investment Banks). I found Macquarie’s culture to be very refreshing and suited to my work ethic. I also really enjoyed working out of Macquarie’s head office in Sydney given that it meant that I received a lot of exposure on a number of different projects.
What is actually involved in Equity Capital Markets?
The Equity Capital Markets team is concerned with raising equity funds for listed Australian companies. Initial Public Offerings (‘IPOs’) are the largest source of revenue and require the largest commitment in terms of time and resources. Secondary equity raisings (such as rights issues, placements etc.) are another main source of revenue. The role of the Equity Capital Markets team is to facilitate these equity raisings – this includes structuring the raising, ensuring that all disclosure obligations are complied with, pre-marketing, attracting investor appetite etc.
Why did you choose that division?
I have always had a strong passion for all things finance. I selected the Equity Capital Markets Division as I have always been particularly interested in the Share Market. I have managed a small equity portfolio of my own for several years. Notwithstanding the laws of probability, I have consistently managed to underperform the overall market. My dismal perform as a retail investor helped me to draw the conclusion that I would better suited to an advisory/capital raising role rather than a trading role.
I understand you were often required to work long hours. How did you handle the stress and pressure of
Investment Banking. Initially, I found the long working hours to be a bit of a shock, but as with anything, I soon adapted to my environment.
I very rarely found myself in the office late at night all alone; there were always other interns or graduates who were also working late. This makes it much easier to cope with the long hours given that you have fellow ‘comrades’ around to eat dinner with, procrastinate with and ask technical questions of.
What was the best thing about your internship (other than the graduate offer that followed)?
The best part of my internship was the remuneration that I received (which was equivalent to the salary of a first year analyst on a pro-rata basis.)
Do you have any tips for students looking into this field?
My first tip to any student interested in Investment Banking would be to ‘cast your net far and wide’. The Investment Banking industry is extremely competitive and there are limited roles available given the continued lacklustre perform of many developed economies. My second piece of advice would be to prepare long and hard for Investment Banking interviews. These interviews are very unique and often quite technical. I suggest that interested applicants exploit all resources at their disposal (including the Bond Investment Group, fellow students that have interned or received graduate positions from Investment Banks as well as finance professors). My third piece of advice would be to make sure that you are applying for an Investment Banking role for the correct reasons. If you don’t have a passion for finance then the large (often excessive) salary will only keep you motivated to work late into the night, day in and day out, for so long.
Bond Business Review | 35
for A S B Vote FSA in t s! k Bes n i c Dr e x E
Se
Bu e y Br si ou n W eak es at ee fa s k st 13
If yo you u on r d don yo e el ream ’t bu u t se s ild bu o h will om ild elp hi eth th re eir em s.
em s l i unt hed. s ay finis d 23 2 is 13 e ir , p e ns or and i m e e ns io eam or ar t ac dr o m you r u to e, d e, . o s r or er y If her mo m ad ot rn me a le a o le ec b
wishes A S B r u o Y best e h t l l a u yo ams. x e r u o y for
36 | Bond Business Review 132