December 2014 THE GREATEST MAGIC TRICK?
HARD WORK... COMMITMENT... SACRIFICE. What’s up Grace Kennedy’s sleeve? Now, the future is one being plotted by chief executive officer Don Wehby.
People - Focused
Members Come First
Bridgetown
A City Fighting For Its Life
Economic Outlook
What does the future hold?
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Contents
CARIBBEANCEO
cover story
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GraceKennedy CEO Don Wehby took up the top executive job with a vision for the company and by extension Jamaica. He sees GraceKennedy as a global consumer group.
People focused
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Trinidadian by birth and resident in Barbados since 2006, Corinne Claudette Clarke has been the general manager of the Barbados Workers’ Union Cooperative Credit Union since 2012.
she knows her rum
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Margaret Monplaisir joined St. Lucia Distillers Group of Companies straight out of school in 1984 as general manager of Barbay Limited. She has achieved much personal success as a result.
A HOLISTIC APPROACH
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Dr. Jeanine Comma heads the Cave Hill School of Business and in her own brilliant and charming style she has urged the school into its position as a stalwart in the Caribbean business community.
32 bridgetown alive 40 Bajans: Natural Social Networkers 50 time for a change 59 recession & brandS 62 Deepening Capital Markets 69 for the professional WOMAN
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Enjoy Responsibly
the
2013 international spirits challenge
individual distillery of the year
“best rum” trophy for chairman’s reserve
www.saintluciarums.com DECEMBER2014
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Right up until the time this was written there were still many things that we could have changed for our maiden CARIBBEANCEO edition. The “too much choice” dilemma is what we call it in Barbados, but to tell the entire truth some of those decisions were made for us. The conditions for business are not as forgiving as they used to be and one result is that we are all getting better at making tough choices. Admittedly this is not much of a silver lining but these days, more than at any other time, you have to take what you can get. Some people think that if you find yourself labouring over a decision that you don’t know enough about the situation you find yourself in and that’s why you’re stuck; and I think so too. More information can often, though not always, bring clarity. So we grabbed our need for empirical evidence and armed with a burgeoning list of trusted contacts and a litany of questions we set out on our expedition of perspicuity. And true to the formula of any good script for the typical action-adventure or heart-wrenching drama we soon found ourselves chest deep at the tributary of information overload and Murphy’s Law with a surging undercurrent of a belligerent status quo sweeping over the pebbled riverbed of success. Yes, there’s a little too much editorial licence there but that’s pretty much how it felt. Here we are however, at the other end of the tunnel and on a completely different metaphor. Our first edition is out thanks largely to the support of a core team of talented and true friends; by far the best type of friend to have. We cover a lot of intangibles in this edition. We profile leaders with impeccable qualifications and colossal experience but also undeniable passion, imagination, fluidity and commitment. Don Wehby is unwavering in his approach to Grace Kennedy’s success; Dr. Jeanine Comma has refined the balance between a successful business and the regional developmental agenda of UWI Cave Hill School of Business; Margaret Monplasir’s 30 years at the St. Lucia Distillers Group of Companies is a textbook case study of growth; Corinne Clarke of the Barbados Workers’ Union Co-operative Credit Union harnesses the humanity of her team, their clients to build mutually beneficial relationships. We Q and A with the next wave of leaders, get opinions on a business capital that is losing retail traffic and divert gently into art, fashion and technology. This first edition is our way of starting a conversation with you. The monologue age of publishing is long gone. We would be happy to hear from you online especially since we need your input to deliver content that is relevant. We also want to provide a forum for free, frank and factual discussion of business in the Caribbean that goes beyond the numbers. We want to talk about our regulatory environment; the developmental responsibilities of business to its employees and the community; our unique culture and how it continues to shape our economies. You’ll find us in the places you frequent online like LinkedIn, Twitter and Google+ so as adept as we know you are at speaking in one hundred and forty characters or less, let’s talk.
Editor's Note
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Contributors Publisher: Lisa Legall Belgrave Editor: Ted Taylor Director of Sales: Sandra Moore Design & Layout: Michael Russell Photography: Photo Dynamics Inc. Digital Editor: Ted Taylor Editorial Contributors: Cally Blackman Anton W. Moore Latoya Burnham Lisa Legall Belgrave Ted Taylor Sean Samad Greg Fry Joseph Grimes Caribbean CEO is published by Trident Communications. Old Spirit Bond Wharf Road Bridgetown | Barbados | W.I. T: 246.836.4800 / 5800 E: info@caribbeanceo.com For advertising inquiries: Email sandra@caribbeanceo.com or call 246.836.4800.
Caribbean CEO is published bi-annually. The opinions expressed in Caribbean CEO are those of the authors and do not necessarily reflect the views of the publishers and advertisers. Caribbean CEO does not assume liability for content. All rights reserved. Caribbean CEO does not sell or rent subscribers’ names, email addresses or mailing information. In exceptional circumstances when Caribbean CEO partners with other brands, we may forward products, materials, or event invitations we believe would interest our readers. If you do not wish to receive these, please advise via phone, mail or email at info@caribbeanceo.com
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Who says business can’t be relaxing...
www.caribbeanceo.com
CARIBBEANCEO
Publisher's Note What Dreams May Come
In 1996 I left Barbados to pursue a bachelor’s in Journalism at Pace University. I remember as I was preparing to leave someone asked me what my plans were once I graduated. I distinctly recall proclaiming that I was going to work at the New York Times. For quite some time I dreamt of working in magazine publishing. The New York Times job never happened, but while at Pace, I was editor of the university’s literary magazine, worked on the school newspaper and was assistant editor for the yearbook for my graduating class. Since leaving Pace, I’ve done what seems like a hundred different jobs and worked on what seems like a million different projects. I’ve been a media consultant, an advertising sales executive and an event planner. All of which I loved and enjoyed. However, the yearning to work for a magazine never truly waned, which is why there is something extremely special about writing this Publisher’s Note, which will be published in the magazine I have started with two friends who shared my vision and purpose and drive without question. Whether you are reading this piece in the printed, online or digital version of Caribbean CEO, be clear that this all started as a dream many years ago. Caribbean CEO is by no means a new idea, but which idea is. While en route to Barcelona, Spain, in March of 2013, I stumbled upon European CEO as I was boarding the plane at Gatwick and immediately picked up a copy. It wasn’t the cover photo but the name that struck me. Somehow, even before flipping through the magazine, I thought a version of this could work back home. Once back in Barbados I shared the idea with my friend and now business partner, Sandra, with the view of producing a magazine under the banner of the online publishing house for which we both worked. However, that idea was shelved to focus on another magazine. Though work started on that other publication it never saw the light of day. By the end of 2013, Sandra and I would have parted ways with the company we worked for and decided the time was right for Caribbean CEO. Starting anything from scratch in Barbados is not easy by any measure, especially when you have few industry connections. Not to be daunted by the task ahead of us, Ted, Sandra and I pressed on and today you are reading the first issue of Caribbean CEO. With no fancy team of writers, no clearly defined roles or funding, we set out to get this magazine done. Thankfully, each of us brought extensive experience from working in the media and other jobs together to create the team needed. We called on friends for help and we will forever be indebted to those who readily said yes. It has truly been a labour of love, but we are very proud of the product we have been able to deliver and will continue to strive to deliver.
What this process has taught me is that with hard work and dedication, disagreements and laughter, you just never know what dreams may come.
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Cuba
Haiti
$0.06
Guyana
$0.99
$0.60 Jamaica
$1.41
Dominican Republic
$0.41
The Global Innovation Index 2014 (highest ranked caribbean countries)
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MINIMUM WAGES AROUND THE CARIBBEAN (USD per hr)
Dominica
$1.48
Antigua & Barbuda
$2.78
St. Kitts & Nevis
$2.96
The data have been compiled from Wikipedia and information from the law firm “Van Eps Kunneman vanDoorne� with offices in Curacao, Bonaire, Aruba, St. Maarten and Amsterdam. The Wikipedia information depicts the global situation, where the law firm added the local data. The Global Innovation Index (GII) 2014 covers 143 economies around the world and uses 81 indicators across a range of themes. The indicators include Political stability and absence of violence/terrorism, Government effectiveness, Press freedom, Ease of starting a business, Ease of solving insolvency, Creative exports, and even Wikiepidea monthly edits and Video uploads on Youtube. The full report is available at http://www.globalinnovationindex.org
Saint Lucia
$0.64
Saint Vincent & Grenadines
$1.16
Barbados
$3.13
Trinidad & Tobago
$1.94
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CCEO
Q&A
Gina Cummins Sol Caribbean Ltd.
The busy Brand & Communications
professional shares her journey with the oil company
CCEO How long were you with SOL Caribbean? GC I’ve been with Sol Caribbean for five awesome years. During my time with the Sol brand, I’ve been able to work with a really great team that is enthusiastic about building a solid, reputable company. CCEO What does your role as Brand, Communications & External Affairs Manager entail? GC In summary, my role involves building a strong Sol brand by developing and implementing a comprehensive Brand and Communication strategy for the company. This includes ‘policing’ the brand to ensure that we maintain impactful marketing and advertising campaigns. My team keeps a keen eye on our company’s brand positioning, brand experience and social responsibility efforts. We develop and maintain relationships with key centers of influence both internal and external to the organisation.
forward to further growth and development in my career. One of my “success indicators” is being able to use this position to continue mentoring persons who are interested in careers in marketing, branding and communications. CCEO What drives you? GC I’d have to say that my primary personal driver is to maintain high levels of excellence. I don’t like mediocrity so I have a strong desire to ensure that my professional performance exceeds what others might describe as acceptable or “satisfactory”. CCEO What is at the top of your bucket list? GC Finishing my book. It’s a bit of fiction and real-life drama. I’ve been drawing inspiration for the characters from the personalities of some of my friends.
CCEO What has been your proudest moment to date? GC Seeing one of my mentees board a plane CCEO How long have you held this position? to head to Qatar to pursue her dream. GC I began in my current role in January of this year (2014). I’m blessed to have had a CCEO What’s your advice to the young smooth transition from my previous role in university or college grad who’s looking for their first job? marketing and communications. GC (1) Your first job matters, not only for the CCEO Are you where you always wanted to job experience but also as a life experience. Your first job will teach you humility, and it be career-wise? GC I view success as a journey rather than as will emphasize the importance of building key a destination. I am quite blessed to be where relationships at work. (2) As much as possible, I am, but I recognize that there is always try to approach companies you are passionate room for further growth and development. about (3) Especially in these challenging My friends call me an over-achiever and I am economic times, you need to stand out, so slowly beginning to believe them. I am looking use some creativity when approaching a
prospective employer. Ask yourself “what value can I bring to the organization?” and be sure to “sell” that value from the moment you start to write your resume to the moment you walk through the door for the interview. (4) Be open, be willing to learn and always shine. (5) Trust God. CCEO What have been the biggest challenges you have faced as a young professional? GC Disconnecting from my work; Remember the “over-achiever” comment earlier? CCEO Work life/Balance is a constant topic of discussion. As a busy executive how do you find time just for you? GC Honestly, this is still something I am learning. The truth is when you enjoy what you do it becomes a part of you. I thank God for my husband who knows when to say, “Hon, it’s time to put down the computer”. CCEO Where do you see yourself in the next five years? GC Hopefully, I would have finished my book and contributed more of my time to charity work. In terms of my professional career, I am passionate about Brand and Communications and I see myself continuing in a role like this one. I would like to master the unique challenges associated with Public and External Affairs. Without having any specific titles in mind, I simply hope that within the next five years I will be presented with a lot more opportunities to grow as a person and as a business professional. I’m looking forward to the exciting journey.
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CCEO
Q&A
Maria Samad
THE PLANT PEOPLE LIMITED
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The former banker chartered a new course in the plant nursery world and tells us how it all came about. CCEO Tell us how The Plant People got started? GC We acquired two family-owned companies and re-branded them under the new name. CCEO How long were you in business? GC Six years CCEO Were you always interested in being an entrepreneur? GC Not on a large scale CCEO How important is The Plant People to the Trinidadian market? GC We are the No.1 Interiorscape Company and service a large number of companies. CCEO How competitive is the plant industry in Trinidad and the wider Caribbean region? GC Medium
CCEO Can you share information with us about your business model? Has it changed over the years? GC We seek to provide an Interiorscape solution, which complements our customers’ environment; at a competitive price in an efficient manner utilizing competent and confident employees. It is changing because reliable plant suppliers are difficult to acquire and it is challenging to attract suitable employees. CCEO What is new and exciting that’s happening in the plant industry today? GC New plants are being introduced and we are utilizing modern decorative planters. CCEO Tell us a little bit about your role? GC I lead the teams for the management of
the organization, the service activities and the nursery management. CCEO What is your financial growth strategy? GC To acquire a 10% increase in revenue. CCEO How important is export to your business? GC We are seeking to expand and sell decorative outer pots for which we are the sole distributors in the Caribbean. CCEO Has the economic climate in Trinidad impacted on your business in a major way? GC The economic climate in Trinidad has not impacted on our business. In fact, we have experienced an increase in revenue due to the acquisition of new customers and our existing customers, generally, have not reduced their orders.
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Profiles
CCEO
People -Focused CORINNE CLARKE PUTS CREDIT UNION MEMBERS FIRST by
A
Anson W. Moore
ny labour organisation, by its own definition, is people-centered. The credit union movement, by virtue of its creation, is also people-focused. If this were an attempt at a syllogism, then a credit union derived from a labour organisation would naturally be about people. And that’s precisely what drives the Barbados Workers’ Union Co-operative Credit Union Limited (BWUCCU) – people. But there is another key aspect to this thriving and highly-respected agency for social change in Barbados – leadership. Enter Corrine Claudette Clarke.
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PHOTOGRAPHY BY PHOTODYNAMIC INC.
pretty much on the arts side. I like drama and music and dance and mime; I have no favourite genre. Anything that is inspirational, so it could be calypso, it could be reggae, it could be R&B, country. Once it has a very spiritual connotation and the tone is very positive I would listen to it. So it is no one favourite style. The words are what would capture my attention,” she said. Clarke has lived and breathed accounting from an early age. “From form three, I decided I wanted to become an accountant. I did Accounts, Economics, Business, so I always knew what I wanted to do. And then I went on to ACCA, graduated and have worked as an accountant most of my life. Actually all the posts I have held have been as an accountant up until this one when I came here as an accounting manager in this same company. “In 2010, when the GM (general manager) left I was acting GM for some time but I did not apply for the position. So when it came up again in 2012, I informed them I would be interested in going for it Trinidadian by birth and resident in Barbados since 2006, Clarke has been the general manager of the BWUCCU since 2012. Managing and they gave me the opportunity, hence the reason I am here today an organisation that is the third largest of its kind in the island, with in this post,” she stated. a membership of more than 17 000, and assets of about BDS$89 Claarke said that helping people was the most rewarding aspect of her million is not a simple undertaking. But Clarke’s educational and position. She explained that being able to share her knowledge with social-upbringing, and her strong Christian values, have seen her take the credit union membership, helping them change their financial to the position with the dedication most patriotic Trinidadians would to path for the better and generally improving their lives brought her much satisfaction. She explained that at the core of everything that the nurturing blossoming chaconias. “I have been living here for seven years since, September 2006. I came BWUCCU did was to make people’s lives better while maintaining the here for an interview in August, I got the job and have been living here viability of the agency. ever since. I went to Iere High School, which is co-ed, and one of the “So many times you find yourself in financial difficulties that you five Presbyterian secondary schools in Trinidad. I went up to A-level, need somebody to help you consolidate so as to start fresh. We do graduated valedictorian. Then I went straight on to do my ACCA. I did presentations on debt management, financial planning with the some part and full-time, then started to work – that is how we tend membership so that we might get people thinking wisely when it to do it in Trinidad. It is a bit different here how people go to UWI, comes to their financial plans and financial managing and budgeting. I guess because UWI was free here so people would go to that first. So I enjoy the work a lot from the membership point of view. It has But because the ACCA programme exempted you from some part or been very interesting. I like to know that when I interact with someone almost all of the Bachelors, you just do your ACCA and anything after – a member, that they leave satisfied, they leave confident that they have dealt with an institution that has their best interest at heart,” she that would be the Masters. “I have been married twice and I have one daughter, Kharisma Faith said. Contessa Clarke. My husband has two children and they live with us Clarke stressed the importance of team-work at the credit union and sometimes, so I have three children all together. I grew up in a small noted it was vital for such an organisation to put together the best family, two siblings (brothers) younger than me. I am very Christian- people whose interest was primarily to provide the best possible based. The Bible says: ‘Train up a child in the way he shall grow so he shall not depart’. I departed for a while and came back, not to depart again,” she said with a loud chuckle. Clarke, who worships at the Love and Light Ministries in St. George, is very active in her church. “At church I do a lot of different things. I teach the children, I am in the choir, the leadership team, I dance. I believe in expression. So anything to express one’s self I would participate in. So if it is art, drama. . . I am
“
I have no favourite genre. Anything that is inspirational, ...Once it has a very spiritual connotation and the tone is very positive I would listen to it.
”
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PHOTOGRAPHY BY PHOTODYNAMIC INC.
been doing that first name basis thing, regular correspondence – they have changed, their approach is different. We [credit unions] were the ones that came up with the “For People” philosophy,” she said. Quizzed as to how the credit union could encourage and sustain growth in the present economic environment, Clarke was optimistic. “There are so many people fighting to get the same piece of the pie. So you have to put strategies in place to retain who you have and make sure you continue to keep in contact with them and keep that business going. Give people opportunities to advance – business opportunities. Providing excellent service is Above Corrine Claudette Clarke, CEO, Barbados Workers’ Union Cooperative Credit at the wall of goals in her office. the only way you can improve. Your interest rates, too, perhaps. But you find that most service to the credit union’s membership. to take the position of the credit union. But people don’t run after the interest rate as She said it was crucial that staff bought into a at the same time I do believe in the people much as they would run after the service. So service philosophy and felt just as comfortable and making sure that they are comfortable, that is the competitive edge that you would in their roles as members would feel being well-remunerated and that they have all the have to adopt. Who offers you the best service, part of the credit union. She stressed that equipment they need . . .,” who you feel most comfortable with in doing membership had to believe that the staff Clarke explained that the current economic business,” she stated. always have their best interest as their focus. climate had provided challenges for members Clarke noted it was about finding the correct of the movement and the BWUCCU was very And just how does the credit union point balance. sensitive to their circumstances. She noted those interested in entrpreneurship in the “Once persons have the credit union’s interest there were people who were faced with “real right direction in terms of loans and advice? at heart, I think they tend to work towards the issues” such as the possibility of disconnection “Our commercial loans are small, the risk goals and objectives that are set, that one of utilities and no food on their tables. She is high, and the cost to operate in Barbados is key. ‘How I feel about the company that I said these times called for a greater level of is very, very high. So unless you are very work for and would I want to grow with this empathy and the credit union was aware of innovative and what you are producing is in company? If I don’t then I need to be looking the role it could play in assisting persons to high demand it tends not to be successful . somewhere else.’ That is basically how to find meet specific challenges and helping them in . . But we do have the one-off and we try to the balance. The balance is do I want to be finding appropriate ways to be self-sufficient. encourage it, where some people have been here, or don’t I want to be here? If I want to be coming in to talk about their business ideas here then I have to buy into the concepts and She also suggested that within the context and how we can fund it. So we do have some the strategy and objectives, if the strategies of the prevailing economic environment, business ideas, we can discuss and think and objectives are not about whom I am, I commercial banks had seemingly gone about doing micro-financing, I don’t think we need to look elsewhere,” she said. the way of credit unions by softening their have any credit union folk in micro-financing And just what type of boss is Corrine Clarke? relationship with clients. because of the risk. It would have to be backed “I think I am very approachable, I listen to what by some fund that is there already. the concerns are. I would try to weigh your “I find that [relationship] is changing because “I know the IADB [Inter-American point of view with mine but at the end of the the bank is realising now that the market Development Bank] had funds for these type day I also have to think about the business. So share is the same and they need all parts of of ventures, so it is to tap into these funds and I would incorporate your point of view, if your the Barbadian populace. So they are adopting then have them available to the membership point of view is to better the institution. But if some of the credit unions’ philosophies. . . the and the support tool that the SBA [Small your point of view is personal and it is going hand holding, the softer touch, the helping, Business Association] might offer to run your to take away from the set-up then I would have in structuring, offering assistance, they have business in such a way that it stays viable and Continued on Page 27
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hirty-something Edwards is one of the directors of premier modeling agency Gadal Model Management Inc. founded in 2006 in Barbados. Gadal has become known for its success in placing such professionals with agencies around the world – from the United States, to Europe, to South Africa. The scream of success from Gadal models when they are finally signed to an agency and working in the profession is what has kept him going and striving to make the profession more structured – after all he had no knowledge of fashion, furthermore modeling. But when a couple of his former students, Edwards is a teacher, approached him about modeling, he promised them he would research and see who he could find to give them the start they needed. Edwards did his research but not satisfied with what he found, he started my own agency. But even before then, the idea of having his own agency had tickled his interest while at the Cave Hill Campus of the University of the West Indies. As vice president of the Guild of Students, he was asked to spearhead the fashion show that formed part of the Christ Festival. He had no idea where to find models but that responsibility has proven that Edwards knows how to spot a model.
by
Latoya Burnham
“I saw this guy, 19-year-old on Frank Worrell Hall and he looked model-ly and I approached him and asked him to come and do this thing, it’s for a good cause. He looked at me cock-eyed half-way, sideways and reluctantly agreed to come and do this thing. “The next time I saw this guy was on my television screen walking down the catwalk for Caribbean Fashion Week. Three years later, he told me he was modeling in New. It was just interesting and then when my girls asked me about it, I thought maybe I could refine what makes a model a model.” And refined it he has. Edwards recognised there wasn’t a lot known about the profession even though there were agencies here scouting and training young people. So he educated himself, which included lengthy phone calls to agencies abroad and anyone in fashion that would speak to him about the field.
On a very hot, weekend day, Caribbean CEO sits down with R. Graham Edwards to talk about what he knows best – modeling. Christopher Murrell
Photography courtesy of GADALCARIBBEANCEO MODEL MANAGEMENT
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Edwards’ first step saw him getting five of his models in the Barbados Manufacturing Expo (BMEX) fashion show. Soon after he got one model – a guy – signed to an agency in New York and another signed to one of the Top 10 agencies in New York. Consequently, the second guy’s girlfriend was also a model but wasn’t doing so well because she was an inch shorter than the standard height. She sought Edwards’ help, who eventually got her an audition in Miami where she was quickly signed to a top agency there. By 2006 Gadal, now officially established, had also signed a model to a South African agency. And where did the name Gadal come from? It’s a Hebrew verb that means a number of things, but the greatest element is that it means to grow, to exceed, to be great, the action of doing that . . . . As word spread, a Nigeria-born model from Los Angeles heard about him and contacted him. After speaking for a few months, the man said he wanted to fly out to Barbados to meet Edwards. Edwards prepared for the visit but he had his doubts that he would actually show up. But Gadal’s now top model – Remi – turned up on a Friday, did a shoot and by the time he left the following Sunday he was heading to New York where he was signed to an agency the Monday afternoon. Edwards remembered, “He has been my most successful model having been signed to many agencies worldwide. He’s signed to two agencies in LA, in New York, in Spain and in Germany. At any point you can call him up and he doesn’t know where he’s going to be – Hawaii, Hong Kong, Thailand. His life has changed as a result of that.” Consequently, Remi brought his brother to Barbados for a meet and to sign with Gadal. “There is a certain amount of buzz and the great thing is that we have people now coming to Barbados, trying to meet with us to be signed, particularly African-Americans because
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the model industry is still very racist. Black people are still very much underrepresented and they need someone to really push on their behalf.” And this is essentially what Edwards tries to do, get models signed abroad. What about the Caribbean? He admits that it’s not always been easy in the region because despite the fact that there are a number of agencies, designers and such, there is not a Caribbean fashion industry per se. It’s one of the reasons that he says Gadal Models don’t really fit the Caribbean mould. He doesn’t believe there is a Caribbean fashion industry because he believes to be considered an industry those involved must be making money, jobs must be created right through the value chain. According to Edwards, in the international fashion industry, the designer is king. There is no industry without the designer. However, there are many other important players as well: fabric-makers; print-makers; software developers all coming together to make the industry work well. Furthermore, there are photographers, make-up artists and stylists and a whole host of jobs are created that completes the order of things in the industry. In the Caribbean, however, Edwards sees a different game at play. To him, the fashion show producer seems to be king, with the model and fashion designer being left at the producer’s mercy although without the model and designer there is no fashion show. There are many instances, in the Caribbean, where models are not paid for shows. “If we want to build a fashion industry, we
need to stick to the international standards,” In addition, he shared that sometimes Edwards stated passionately. people expect to be paid for castings, which is highly frowned upon in the industry. Edwards believes that one of the major issues with the concept of a local fashion industry is Edwards further explains that he has to that many designers are not business people look out for the interest of his models so and this makes it difficult for them to translate he scrutinises model releases to ensure his their talent into a sustainable business. The models are being well taken care of. He has reality is that many fashion designers are fallen out of favour of some because of this. unable to focus on both fashion designing He shared “when you pay someone $600 and the business side of fashion designing. and you have a clause that says it is a lifetime Manufacturing has long been a problem for buyout, what it means is that for that $600 fashion designers as well. Producing volume you have given them permission to use your is a key component to being a image perpetually for the rest of your life”. successful designer. He emphasises that he is not passionate “If you come across about fashion per se, but is passionate about someone that has his people and ensuring that they can see the something that possibilities of what can be achieved. you like and you want 300 of that, The fact that people are now flying into they don’t have the Barbados to push their careers has been a plus capacity to produce for Gadal and Edwards believes this should 300; they don’t have be a plus for the island. Having worked with the capacity to produce Jack Hollingsworth Photography on shoots, it 300 times. Their ability Edwards sees a place on a macro-economic to replicate down to the very last level for Barbados, but he believes many detail so that each dress is exactly like the last do not understand that a fully-functioning one, those are the technical issues we have. fashion industry can contribute to the local So it is for that reason I am trying to push my economy. He is especially pleased that models into an industry. So pushing them Barbados is now being considered for such locally and regionally in a lot of ways does not shoots, whereas in the past Jamaica and the make sense.” Bahamas were the obvious choices. Not one to mince words, Edwards spoke “I’ve got emails coming to me every day, not candidly about being considered “difficult figuratively but literally from people all over to work with” because of the international the place. I’ve got people calling from Pakistan, standards he tries to maintain. He stresses South Africa; I’ve got emails from America, that there are a lot of standards that are not Brazil, Slovakia and people from Russia. known, furthermore met. Therefore, given When an American has faith in you to help what he knows it is difficult to accept anything them get signed in America, as a Barbadian it less than the highest standards. tells you something. So the days when I find my Barbadian counterparts to be frustrating He explains that sometimes at model castings or days when I feel like throwing in the towel, people would wear the wrong attire, when the I remember I can call up people in New York international standard is to walk in sneakers. that other people only hear about and have
them take my call. “One of the things that is important to me is the success of models. For people to see and identify with people who took a risk and it paid off. Education is very valuable and I want to underscore that, but it is not the only valuable thing and I want us to get to the point where we value designers, in our creativity that we value our artisans and what we have to contribute to the art world; that we value all of the areas and not just academic because it is no longer a guarantee of anything.” So he maintains that every Bajan has the potential to be just as his agency name states – to grow, to exceed, to be great. “That is what I want for every single Barbadian, every person in the Caribbean, that every child knows they can achieve something and not at the mediocre level either, they can be really great at something. I think when you do that, you are being the ideal model, even if you are not on the runway.”
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Continued from Page 22
it turns out a profit overtime. It is to support those kinds of things, or put those things into place,” she noted. Clarke added that part of maintaining the competitive edge was always having the ability to service the specific needs of membership and to do so in a timely manner. “People want more convenience now; they don’t want to have to wait. There is a level of the quick solution. Some persons are looking now for funding for education. What we also found was persons wanting the debit card so we introduced that two years ago; they want accessibility to their funds anywhere, anytime. So we have to ensure whatever measures we put in place, for certain, those two things are always up front in our minds. We’ve had other solutions, the mobile banking, ATM cards, online banking – those things we have brought on stream. Outside of that I think people just want to feel that their business is being handled the best, most professional way and they are maximising or benefitting all that they can benefit,” she stressed. Clarke also had her say on Government’s decision to introduce a tax on credit union assets. “We understand that the Government needs funds now and the measures are so that they can come out of their deficit. Is taxing the right way to do it for us, the tax on assets? I don’t think so because the tax on assets is sort of fixed. So if you continue to tax assets then they will be taxing you on the same thing every year. It is going to eat away any surplus,” she noted, adding that if statutory reserves were decreased the ability to adjust or bolster any fallout on the credit side would also be diminished. “Your ability to take on new projects or perhaps afford the technology that the member is asking for, is going to be less as well,” she explained. Clarke suggested that perhaps the credit union movement needed to give Government another solution if it didn’t want to be taxed. “If we say we are going to be educating
Right Clarke and her daughter both enjoy dance.
our members and we are going to put our money in that, we can develop a certain type of entrepreneur or to open a farmer’s cooperative. Then I can see Government saying you are using your surplus across the board to support an industry in the country. So if we can do something that shows Government: ‘Well look, this is our contribution to the overall economic picture’. Perhaps they may say: ‘well okay, no tax’,” she said, explaining that if credit unions were making the same ‘big dollar’ as other financial institutions she could see why Government would go after them via taxation. “I think we need to come up with an alternative as opposed to just saying: ‘Don’t tax me’. What will I do? How are we as a credit union movement going to empower our people to do differently? To become more productive, to become more innovative, and to develop within as opposed to looking externally,” she said, while stressing the urgency of increasing overall productivity in Barbados. In terms of the future and widening the scope of the credit union movement, Clarke stated that one possibility was the creation of a merchant bank. “We can create a merchant-type bank where
we invest our money there and we can start funds, not necessarily to compete against the credit unions but as a merchant bank. So we bank and get interest and call on the funds when we need it. We can have a whole portfolio. . . we can do credit facilities, lines of credit and then the merchant bank or the merchant credit union belongs to the credit union. So not only will you get the returns in the merchant bank but you get the returns on their own money that is then invested into different homes, pockets, funds, any sort of investment product the merchant bank will put out,” she said. As for her future in the credit union, 10, 15 years hence, Clarke said it was all about service to people and as they grew and improved, those providing the helping-hand up the ladder would of necessity also grow. “It is not an easy task to think ahead first about the masses but as the masses get, you will obviously get. As everybody improves you will improve, you move along, you don’t have to go up front,” she said, adding that one day she would want to be in a position where she could influence policy on a national and perhaps regional level.
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THERE IS NO MAGIC TO THE SUCCESS OF THE GRACEKENNEDY GROUP OF COMPANIES. NO FAIRY GODMOTHERS; NO BENEVOLENT SORCERERS; NO LEPRECHAUN'S POT OF GOLD.
S
ince its inception in 1922, the GraceKennedy story has been one of long hours of arduous work, commitment, sacrifice, adaptability and neversay-die attitudes by both management and staff. The history of the company, which derived its name from late Jamaican businessmen Dr. John J Grace and Fred Kennedy, is one treasured by those who have lived the experience. Now, the future is one being plotted by chief executive officer Don Wehby.
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The affable 50-year-old Jamaican was born in Kingston and schooled at St. George’s College, before going on to the University of the West Indies at Mona where he read for a degree in accounting. He is also a qualified management specialist.
man. He has an avid interest in sports and indeed is currently a director on the West Indies Cricket Board. Wehby has been with the GraceKennedy Group since 1995 and became group CEO in 2011. He took a secondment to the Jamaica government in 2007 where he served his Married for the past 25 years, Wehby is the island as a senator in the Ministry of Finance father of one son and two daughters, and is before returning to lead the full-time charge very much a family and community-oriented of one of the Caribbean’s top business brands.
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Speaking to Caribbean CEO magazine, Wehby’s passion for GraceKennedy, Jamaica and the wider Caribbean region was unmistakable.
“I took over as CEO with a vision for the company and by extension Jamaica. I do not see GraceKennedy only within the context of Jamaica or even just the Caribbean region. I see GraceKennedy as a globalconsumer group,” In fact, Wehby confidently asserted that part of his vision involved positioning GraceKennedy to earn 50 per cent of its profits from outside Jamaica by 2020. The company is involved in a variety of business ventures including financial and insurance services, food processing and distribution and hardware retail, among others. But Wehby noted that such a massive task called for a dedicated team with a focused work ethos.
“I believe very strongly in accountability and execution. When you have a team where you make sure that everyone is aligned with the vision from the top right down, everybody achieves more and the possibility of success is enhanced,” he said, noting the importance of staff operating within an environment where there was a sense of ownership. Wehby stressed, however, that in everything he and the company did, giving back to community was critically important. He said those in the private sector who earned from their communities had an obligation to give back to those communities. “This is something that is very important to us at GraceKennedy and we have committed ourselves to being excellent corporate citizens,” he said. And Wehby and GraceKennedy have walked GraceKennedy’s products can also be found in the talk. about 85 stores in Russia awnd the company also has a significant presence in the West The company has annually been funding 400 African nation, Ghana. Becoming a major inner city children seeking an education at global consumer group has not just been high school or university. GraceKennedy also fanciful chit-chat from the GraceKennedy CEO. has two chairs at the University of the West Indies – Business and Environment – where it For GraceKennedy, a listed public company, provides funding for research projects. which raked in about JAM$18.2 billion in The likes of Usain Bolt, Shelly-Ann Fraser- revenue for the year ending March 31, 2014, Pryce and Yohan Blake were not born into the global economic downturn has had its stardom. They and countless others have effect but Wehby does not see the global been the beneficiaries of GraceKennedy’s pinch as any reason to throw the proverbial involvement in the sponsorship of Jamaica’s hands to the sky in surrender. Boys and Girls Athletic Championships. The GraceKennedy Education Run has also been a He stressed that this was a time for innovation staple in Jamaica over the past three decades. and for businesses to introduce new products Wehby noted that GraceKennedy had an and services and to give added focus to excellent working relationship with Western consumers. He said GraceKennedy had Union and had business interests in the reinvested in technology and was making United States, Canada, England and across the every effort to compete on a wider global Caribbean region. Indeed, GraceKennedy has market. “We benchmark ourselves,” he said. a 40 per cent interest in Barbadian company, The CEO added that the mobile wallet was Signia Financial, and also has shares in other one of a number of innovations which was entities in Trinidad and Tobago and Guyana, being looked at by his company. among other countries. Wehby said he believed in interacting with
Continued on Page 46
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THE PROFE
From the busy executive to the teacher imparting knowle you look the part. The pieces showcased here can be nab staple outfit or separate. The key to a busy work day is where you ply your trade, one of these pie
The
TEACHER This green and beige sophisticated shift dress will define your curves while still remaining work appropriate. The cute cat-eye shaped eyewear and silver jewellery adds to the sophistication.
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ESSIONAL
edge on 30 rambunctious children, it is important bbed at Flawless and all can easily become a work to be comfy from start to finish. So regardless to eces can find a home in your closet.
The
EXECUTIVE
This white ensemble will brighten up any corner office. The lace top. though flirty, works because of the puff sleeves and high collar. Paired with the white pencils skirt pulls it all together.
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The
Banker Add edge to your work wear by adding colour to your outfits. This bright and bold green camisole and matching blazer is the perfect colour with this chocolate brown slacks. The tan bag and snake leather pumps finish the look perfectly.
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the
Entrepreneur Stay chic in this fun and flirty dress. Paired with the blue suede pumps and matching blue cardigan is perfect for any meeting. Remove the cardigan and you’re ready for after-work drinks.
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The
Lawyer
In the Caribbean, black and other dark silhouettes are the norm for the law courts. This black and white textured pencil skirt with the fringe along the hem and down the front and black frilled jacket is classic but edgy and will show that any busy lawyer means business.
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Profiles
CCEO
Margaret Monplaisir B
St. Lucia Distillers Group of Companies
eyond the picturesque Pitons, from Gros Islet in the north to Vieux Fort in the south, on the idyllic island of St. Lucia is a success story born out of the hard work of hundreds and the support of thousands of people.
A Caribbean Woman who Knows her Rum
The St. Lucia Distillers Group of Companies, with its products reaching throughout the region and outside the Caribbean, is one of the finest producers of rum in the Western Hemisphere. And at the helm of the company with an employee complement of about 155 is managing director Margaret Monplaisir. It would perhaps be an under-statement to say that Monplaisir knows her rum. She has been living and breathing a product synonymous with the Caribbean islands for three decades and has not lost her spirit [pun intended] for this most indigenous of industries. Monplaisir first joined the company straight ouf of school in 1984 as general manager of Barbay Limited. Her association with the company since has been marked by personal success as well as the constant growth of the business she leads. Between 1984 and 1994 her astute management of Barbay Limited saw sales rise from EC$72K annually to EC$10M. More success was to follow when Barbay Limited became a part of the St. Lucia Distillers Group of Companies. The highly driven leader spoke to Caribbean CEO about her association with the company. “I joined Barbay Limited straight out of school as the general manager. In 1994, Barbay became the distribution
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arm of the St. Lucia Distillers Group of Companies and I joined the Board of St. Lucia Distillers. My responsibilities changed over the years as I became more involved in the operations of the total group of companies. My responsibilities included sales and marketing distribution, human resources, administration, security and tours. In January 2012, I was appointed to act as managing director when our managing director became ill and appointed to the position in October 2013,” she said. Monplaisir, who holds an MBA in General Management from the University of the West Indies and is an accredited director with the ICSA, has so far charted a growth path for the company whose rums have won global awards and have been recognised as among the best of their kind. Monplaisir and the company have excelled in good times and continue to be an important market player even in the difficult, global economic circumstances that presently prevail.
But Monplaisir has not been a successful manager by sleeping at the wheel; she told Caribbean CEO that wellconceived adjustments had been made to suit the challenges.
Monplaisir and her company have been faced with the challenge of competing against the likes of United States subsidised rum producers and in an environment where their production costs tend to head in one direction – upward. “St. Lucia Distillers do not have the capacity to compete in the mass market so we have had to be focused and target niche export markets. The USA has therefore not been an attractive market for us and our exports to the USA have been limited. However, we have seen US subsidised rums in our market at very low prices, which we cannot compete against. Fortunately to date this rum has not gained any traction. We continue to monitor the situation closely. Where impact on revenue is concerned, we have seen a slight decline in revenue in our local market as buying patterns have changed to value for money, lower cost products. Consumers appear to be less concerned about image and are buying lower priced rums,” she said.
“Leading a business in the current environment is challenging for anyone. Manufacturing is particularly challenging as the market dictates the price and the cost of production continues to increase. Consumers now have many choices and trends change rapidly that much of your energy is consumed just staying ahead of the competition and keeping stakeholders satisfied. I think female leaders face additional challenges as we constantly have to prove ourselves to maintain our credibility. This places extra pressure on us to always make the right decisions. Fortunately my job is made much easier as I am supported by a team of highly capable people who share the same passion and vision for the company and the products we make,” she said. Like most Caribbean companies operating in a global market against global giants,
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“Having realised that the market is price-driven we have worked hard to maintain prices despite the cost of raw materials increasing and the introduction of VAT in St. Lucia. In order to keep prices down we were forced to reduce our market spend and become much more focused in selecting how we spend the marketing budget, ensuring that we maximise the return on each dollar spent,” she explained. With rum being as intrinsic a part of the Caribbean as the sun, beaches and sugar cane, and other regional territories also fighting for a piece of the market, Monplaisir explained what made the products of St. Lucia Distillers so special and what discerning consumers could expect from the company. “St. Lucia Distillers Limited is a small distillery, which is very versatile. We have four stills including three pot stills and a column still each producing different rums. The column still produces lighter rums and by varying the yeast and the distillation conditions, light rums of different flavour profiles are produced. Pot-stills produce heavier more flavourful rums. The rums distilled by St. Lucia Distillers are aged in oak barrels for varying years. The blenders at St. Lucia Distillers, therefore, have a wide variety of rums available to them to create a wide range of blends of rum that we
and coconut favoured rums and two spiced rums using spices available in the Caribbean, including bois bande,” she explained, with an obvious sense of pride. The affable and articulate Monplaisir noted that whenever St. Lucia Distillers’ products were recognised through awards on the international market, it brought both tangible and intangible reward. She indicated that participation in international competitions and winning awards raised the profile of St. Lucia Distillers brands and gave the company credibility. “Our limited marketing budget cannot give us the level of exposure we get from winning awards at international competitions,” she stated. As for the future of this Caribbean success story, Monplaisir posited a global perspective for her company’s excellent products.
put out in the market. We therefore have been able to differentiate ourselves by creating very complex, yet well-rounded rum blends that are unique and artisan. Our rums win awards annually at various competitions around the world.
I have a vision of St. Lucia Distillers being available globally and recognised by rum connoisseurs as some of the best rums in the world. We are well on our way to achieving this, as our products are now available in the United Kingdom, France, Italy, Germany, Austria, Denmark, Spain, Australia, United States, Canada, the Caribbean region and very soon Russia, she said. Cheers
“We produce over 20 different rums and rumbased products including rums (white, gold, premium, spiced and flavoured), rum creams, liqueurs and alcoholic beverages. Our flagship brand is Chairman’s Reserve which is our most widely-exported brand and is available in every country we export to. Admiral Rodney and 1931 are our award-winning super premium brands blended from rums aged from 5-10 years in wooden barrels. We also manufacture coconut, banana, sea moss, by coffee and peanut flavoured creams, lime
W. Anson Moore 2014
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Bridgetown
A CITY FIGHTING FOR ITS L by
Bridgetown:
in commercial activity, marine trade and cultural interaction. But within recent years the wave of activity that has carried for centuries began to wane and stakeholders have been fighting to bring life back to the capital, which has way fewer than the 1900 businesses located in the city five years ago.
T
his small Eastern Caribbean capital has a world reputation for rare treasures more befitting that of larger international cities.
In 2008, the Barbados Chamber of Commerce & Industry (BCCI) launched its Revitalisation of Bridgetown Initiative after meeting with stakeholders that included businesses, vendors, the police, the Sanitation Service Authority, the social services and the Barbados Tourism Investment Inc. “Something had to be done and to make it happen we had to embrace all stakeholders. . . We need more Barbadians to take more
The much lobbied for designation as a World Heritage Property is more than deserved as Bridgetown has the distinction of being home to the only remaining Screw Dock this part of the hemisphere; a Parliament that is the third oldest in the world and its bronze statue of Lord Nelson from 1813 is older than the one in the admiral’s birthplace, England. On such a legacy Bridgetown once flourished
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n:
resuscitated the town but that was shortlived. “All the feedback has been positive. We don’t have the buy-in from the entertainers. They haven’t come to us and say can you give us a platform and therefore market themselves . . . It is up to the people to use the places if not the vagrants will take over. If you don’t give a reason for businesses to come, they won’t . . . If people are using the areas the businesses will follow and people will ensure they remain. People will also ensure their long term success,” Christie explained.
LIFE ownership rather than giving lip service,” said Sharon Christie, the chief executive officer of Regional Business Systems and a counsellor with the BCCI. The Steering Committee of the BCCI examined every aspect of the ancient location in order to increase its economic prospects. Some of the key elements of the revitalisation involved safety, accommodation, infrastructure, transportation, commerce and of course, tourism. The Bridgetown Alive initiative, a display of Steel Pan music, art and parades along Broad Street, the main artery of The City, achieved moderate success. That was followed up with Friday Night Live in Independence Square where, a nocturnal feast of music and cocktail lounges with late store openings also
Along with the activities, the physical look of Bridgetown also began to change since, as Christie reasoned, the state of a country’s capital reflected the state of the country. The BCCI moved to join the lobby for the UNESCO World Heritage Property designation for Historic Bridgetown and its Garrison, an honour for the locals and an attraction to the discerning traveller. Renowned for its quaint buildings of architectural significance, Bridgetown received a major makeover with repairs to Heroes Square, unprecedented access to WiFi hotspots, the installation of cameras, maintenance of green spaces, the provision of garbage bins and more recently the Church Village and Constitution River rehabilitation projects that brought the city up to international standards. The 1872 Chamberlain Bridge commonly referred to as the Swing Bridge, a feature of old Bridgetown, was repaired to lift and allow pleasure crafts to berth in the inner basin of the Careenage as it did in previous times to accommodate interisland trading vessels. Still, traffic has slowed and while Christie blames it in part on the lack of economic activity she also believes the lack of a large residential population and the exodus of government offices have contributed greatly to Bridgetown’s dying state.
Several state offices have exited Bridgetown relocating primarily to Warrens, St Michael one of three developing areas, the others being Holetown, St James and Sheraton, Christ Church.
"Bridgetown
needs people who
spend money. Not just people who come to shop but to live and work. Those who will pay car park fees, use taxis, buy food ...
" Look at Warrens; they are all leaving by 5 p.m. They are not tempted to stay. Can you imagine if we had that many people? I understand the economic constraints but sometimes I think it would be better if the Government had restored rather than build. We have to look at the impact of the moving out,” Christie said. The view that the city is missing people is shared by a number of property and store owners who have moved out of the district. The remaining others search for creative ways to draw people to their businesses. Politically, the urban area has one parliamentary representative in the House of the Assembly. Geographically, it has more than 100 000 people making it one of the most populous areas but residents are on the outskirts.
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from Government who owns a majority of these buildings. Our historic angle is something we haven’t fully explored,” Christie said. Bridgetown should be viewed as a business and an expert, a chief executive officer, mayor or any other titled persons placed in charge of it reasoned Christie who revealed that Bridgetown got considerable notice at the recent Caribbean Urban Forum.
Bridgetown needs someone, a chief waterfront and cited cities worldwide where residential properties are sought after and provide an economic boost for the area. Christie reasoned that, especially in the case of owners of vessels, there is hardly a lack on their part and that would help drive financial activity in the capital.
Christie welcomes the University of the West Indies’ plan for a campus in Bridgetown but fears a much touted Bridgetown Pierhead Development Project, which involves the reclamation of land and construction of a marina at the old Coast Guard headquarters, several waterfront condominiums, shops and entertainment facilities along Bay Street all on the outskirts of Bridgetown would sound the death knell for the ancient city.
She is optimistic about Prime Minister Freundel Stuart’s recent proposal for a government-private sector partnership for the restoration of historic properties, a prime feature of Bridgetown that includes the Mutual Building, Carnegie Library, the Bridgetown Jewish Synagogue, The Cathedral Church of Saint Michael and All Angels, the St Mary’s Church, The Cenotaph (a memorial to the fallen war heroes) and Bethel Methodist Church. “The private enterprise operates from a different perspective and pace from the Government. So while we have the same goal it is hard to end up on the same page. We are ideas people, the facility has to come
“That is going to be a tremendous boost. That [the campus] will be fantastic . . . One of the things affecting Bridgetown is that we don’t have enough people living there . . . There are no hotels. In the past, there were plenty people in Bridgetown because of hotels and there was activity,” Christie said of the proposed campus. She is also in favour of a marina and upscale residential properties but along the city’s
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executive officer, a committee that runs the city and run it like a business. But it will not be fully-effective unless the Government gives it authority. It needs to be managed like a private sector organisation so that when the mayor or CEO speaks something happens,” Christie contended. There have been some entertaining and educational tours of the Bridgetown’s historical structures and places by other agencies including the National Cultural Foundation (NCF), but the BCCI, through part-funding from the Inter-American Development Bank has developed three historical tours as a business which offers employment. “Our Lord Nelson is older than the one in England. That is something to be proud about. History is something you can’t remake. It makes us who we are today,” Christie stated.
What does the future hold for the region? by
Joseph Grimes
E
conomic outlook in the Region It is now accepted that the 2008 financial crisis started in the United States in 2007 with the subprime housing loan programme. It was the crash of Lehman Brothers, which signalled the crash of the world’s financial system. As a result, many investors would have lost significant sums of money in the crash thereby starving underdeveloped countries like Barbados of investment capital. During the “roaring 1990s and early 2000s”, Barbados benefited from the buoyant United States and European markets when they were awash with investment capital. It was during this period that Barbados and the region generally saw heightened activity in the construction industry. Regional economies were abuzz with activity in the real estate industry. There were massive investments in villas, hotels and private homes. The economies of the region recorded a significant decline in the level of unemployment level of unemployment.
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Cheddi Jagan of Guyana predicted with pinpoint accuracy that the export of marijuana will replace the banana industry in such countries as St Vincent and the Grenadines. Meanwhile, oil-rich and asset-rich Trinidad and Tobago remains the strongest economy in the region with major investments throughout the eastern Caribbean, while Jamaica which once boasts as having the strongest dollar in the Caribbean Basin remains within the grips of the International Monetary Fund, while Guyana has begun to claw itself out of an economic rut and records economic growth. St Lucia, Grenada and now Barbados has been able to attract hotel chain Sandals to
However, following the 2007 Financial Crisis, the flow of foreign capital was reduced to a trickle and many projects ground to a halt. This decline in economic activity threw all of the economies in the region into deep depression. Fortunately for Barbados, from as far back as the 1960s and 1970s, the country was led by such visionaries as the late Errol Barrow and the late Tom Adams who recognised that there was a need to diversify the Barbados economy. In fact, it was Barrow who accurately predicted the demise of sugar with his now famous “no blade of sugar cane” speech and his adoption of Sir Arthur Lewis’ policy of industrialisation by invitation. This was a period when Barbados attracted several multinational corporations and recorded a spike in the level of employment. Adams took the thrust towards diversification to another level when he sought to establish Barbados as a domicile for offshore companies. Over the years this sector has grown and has become one of the major foreign exchange earners. In recent times, the international business sector has suffered some setbacks with administrations in the United States and Canada introducing measures to maximise their intake of tax revenue. On the other hand, the members of the Organisation of Eastern Caribbean States were a bit tardy in transforming their countries from a predominately agrarian economy to a services oriented one. In fact, the fierce competition offered by banana producing countries of Central and Latin America has led to the demise of the banana industry in the Windward Islands, while the sugar industry has met a natural death in the Leeward Islands. Fortunately, St Kitts has been able to able to develop a vibrant tourism industry to make up for the short-fall in revenue following the demise of its sugar industry. Commenting on the demise of the banana industry in the Windward Islands, the late
their shores, a major fillip for their respective economies. Facing the economic realities of today, policy-makers in Barbados have drawn up programmes to further diversify the economy and create sustainable employment for its citizens. Similar programmes have been conceptualised in other Caribbean countries. Barbados has put plans in place to create a green economy by developing alternative sources of energy. In 2002, Barbados saved 15 000 metric tons of carbon emission and over US$100 million in energy savings from
35 000 solar hot water systems that had been installed at the time. More recently, the Barbados government implemented several schemes to further stimulate the construction of solar water houses. For example, from the US$5 000 allotted per year under the 2008 modified Income Tax allowance for home improvement, up to $1 000 can be used for energy audits. Also under the Energy Conservation and Renewable Energy Deduction, a reduction of 50 per cent of the cost of retro-fitting a residence or installing a system to produce electricity from a source other than fossil fuels has also been proposed. At present three Barbadian companies dominate the installation and manufacturing of solar water heaters on the island and they are already expanding the Caribbean market potential in the nearby Trinidad and St. Lucia. Financial incentives for manufacturers, such as the provision of low interest loans may further serve to assist the diversification and growth of the solar water heater industry. Other initiatives such as the Caribbean Hotel Energy Efficiency Action Programme in conjunction with several other agencies, have also investigated alternative ways of incorporating energy efficient practices within the tourism sector. Up to 2008, approximately 40 000 solar water heaters were in operation in Barbados – 75 per cent of which represented domestic installations. Their growing presence illustrates how a resourceful initiative can both stimulate economic growth and promote renewable energy awareness and activity. The solar water heater industry has saved Barbados over US$200 million in foreign exchange over the last 33 years.
Continued on Page 73
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Continued from Page 31
this feature was something that needed to be examined and dealt with as a matter of urgency, especially given the continued global economic downturn.
importance of regional CEOs and business persons networking with each other on a consistent basis in an effort to find solutions to mutual problems, to explore business opportunities or to provide services that could redound to the benefit of all those involved. He suggested that the Caribbean Indigenous Association which has seemingly gone into abeyance should be revived. As the man in charge of a company with interests in so many jurisdictions, Wehby had a bit of advice for regional governments. He explained that in comparison to other countries there was too much red tape and unnecessary bureaucracy in the Caribbean, which hindered the facilitation of business. He suggested that
the younger generation in order to keep abreast with what was happening in their world, in terms of developing technologies, trends, individual tastes, fashions, and the like. He noted that under-30s was a very large and significant target group. The
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One message which Wehby hoped could be transmitted to political and business leaders across the region and which he has been advocating for more than a decade, was the need for a single Caribbean stock exchange. He said as was presently the case where most entities traded within their own jurisdiction or a limited jurisdiction, private sector companies were actually trading below their true worth. He noted that the advent of one major regional stock exchange would open up real possibilities of attracting companies from outside the region to the Caribbean marketplace. He also said regional investment could similarly be augmented. As for the future, Wehby said it was all about the constant improvement of products and services, and expansion. He suggested the world was GraceKennedy’s oyster.
by
W. Anson Moore
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Best Get-A-Way DAY
Top One of the two pools at the resort. Above Open Mic is the place to be on Thursdays at Hilton Resort Barbados.
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By
Lisa Legall Belgrave
Pack away your Blackberry, Samsung and iPhone smartphones and shut off your laptop. Instead, pack a beach bag and head over to the Hilton Resort Barbados, purchase a day pass and be a tourist for just one day to recharge your batteries. Or you can book a weekend for the perfect staycation. My friend and work colleague, Sandra and I did just that back in June and we had ourselves a wonderful time. It was a hot and sunny Thursday afternoon when we finally sat down to lunch at the Hilton Barbados Resort’s Water’s Edge. Before arriving at the Hilton, we spent the morning with Greg Fry, a social media trainer and personal branding specialist from Ireland, under the splendid waters of Barbados gazing in wonderment at the life under the sea. By the time we took our seats guests were scattered around the bar with their eyes glued to the television – the USA football team was in full action against the mighty Germans. It seems we were the only ones cheering for Germany among the USA supporters. Service at the bar was quick with our server, Sheena, promptly bringing menus and briefing us on the delights available. I started off with a Raging Bajan – blue concoction that arrived at the right time. Sheena and Captain Ramon Watson raved quite a lot about the Red Card Cocktail in honour of the World Cup 2014. That came later and certainly packed a punch, at least for me, who on a really bad day can get drunk from fumes alone. For lunch I chose the Shrimp Pita, while Sandra opted for a burger large enough to serve four. I’m not a burger fan at all, but it certainly did look like it would be satisfying to any burger-lover. At Captain Watson’s insistence (though with a lovely smile) Sandra also went with the Water’s Edge salad. Our Irish seafarer, Greg, eventually joined us but he was happy with a couple bottles of beer from the local brewery. He insisted that the Hilton hearty breakfast kept him quite full right through the day. The atmosphere at Water’s Edge is fun and relaxing. The bar sits between the pool and the beautiful, white sand beach with the Caribbean Sea lapping its shorelines.
Left Caribbean CEO’s Sandra Moore (left ) and Lisa Legall Belgrave (right) enjoying the wonderful service of a Water’s Edge waitress, Sheena, at the Hilton Resort Barbados. Below The Red Card Cocktail that delivers quite a punch.
Why wouldn’t it be fun and relaxing? Water’s Edge Salad Chick peas Romaine Lettuce Tomato 1 Large onion ring Hard-boiled egg Mango Dressing After lunch had settled and our heads came back to their natural equilibrium and Germany had won over the USA, Sandra and I headed to the gym. The Hilton Resort Barbados has a new edition to it amenities – Hilton Fitness by Precor. The state-of-the-art fitness centre occupies 2700 square feet of space on the ground floor and offers comprehensive membership packages that suit any individual need. A Hilton Fitness by Precor membership also comes with a discount at the spa, a tennis day pass and a day pass (the day pass does not include food and beverage, however). The gym also offers various classes including yoga, Zumba, aquacise and core conditioning. The fun at the Hilton can continue in the night with various activities, but make sure to take in Open Mic on Thursday nights when young, upcoming talent is on display in all its glory. From poetry to singing, Barbados is abound with talent. Held in the quaint Careenage Bar, the Hilton staff keeps the drinks and eats flowing. It was a wonderful cap off to a beautiful day! With the caress of the aquamarine water of the Caribbean Sea at its water’s edge, resort facilities and amenities, and boasting the largest meeting space in Barbados, the Hilton Barbados Resort has everything to offer its guests – both local and visitor.
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Bajans make natural
Social Networkers By
of Barbados with over 134,000 users and from what I observed people are actively on the platform daily. So it would seem like an obvious place for Barbadian businesses to engage, interact and even collaborate with their existing and potential customers. However, whilst many companies have jumped onto the social media bandwagon and set up a Business Facebook Page I think they have largely missed the point. Most companies are using to Facebook to broadcast and sometimes even shout at their audience on Facebook, rather than engage and offer real value to their community. Companies must remember that social media invites conversation and that it is not a broadcasting platform. A great company will
Greg Fry
On my recent trip to Bridgetown, Barbados I was once again blown away by the gregarious Bajan people. Sure Barbados is a truly beautiful island, however I think it is the people that makes the place particularly special. Another observation was that as with many other countries locals are obsessed with their mobile phones. At an open mic night at the Hilton there were more eyes focused on Facebook than the actual stage. Facebook is indeed the social media king
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always strive to have the right conversation, at the right time, with the right audience on the right platform. Companies need to use their Bajan charm to make real connections with their online audience. So if I am a cricket-loving Digicel customer, Digicel could engage with me on Facebook by talking about the Caribbean Premier League. The more engaging the content the more I am likely to “Like”, “Comment” and “Share” the Digicel updates, which will then be seen by my community of friends. The more personality and relevant the updates Digicel shows me the stronger my attachment to the brand will become. Chances are over time I will change to the provider that I feel most connected to.
Even more importantly I will become a “Brand Advocate” championing the Digicel brand to my online community. Many companies have embraced the social media world without any sort of plan or clear objective. I have always said that good social media is more about psychology than technology. So before your business dives into social media here are 5 tips:
1. Have clear business objectives – Know why you are using social media
and what you are trying to achieve. (E.g. Business objectives – lead generation, sales, cost reduction, Customer Service objectivessatisfaction, referral, repeat business, Communication objectives - communicating brand personality). A business with clear objectives will be able to be more strategic and be able to measure the success of their social media efforts.
2. Understand what tools and social media channels exist – Know how they work and who is on them. Understand the different tones of each social network and why people use them. For example, most Facebook users use the site to stay in touch with friends and family home and abroad. They use the network during their down-time and very rarely have an agenda when they log on. So if I am a business I must understand that I am engaging with my audience in their spare time so I may need to be more “social” and quite frankly cooler than I would be on a more professional Social Media Network like LinkedIn. If I am targeting a younger audience I will need to look at and understand Instagram (which seems very popular in Barbados).
Once you have clear objectives and have decided which social media 3.
platform to use…
social media efforts. For example, if I am running an offline event I will market it on Now is the time to market your business. social media beforehand. I will use social Some of the most successful companies like media platforms such as Facebook, Twitter Starbucks are the ones that integrate their and Instagram to commentate and upload social media activities with their traditional live images/footage of my event. I will then marketing efforts. use social media to recap the event highlights after the event. I will use this as a mechanism For example if I am a hotel in Barbados and for reconnecting and engaging with event wanted to build a presence on Facebook I attendees. would want to make sure that every customer 4. Businesses that market well in that visited our hotel knew we were on Facebook, how to find us on Facebook and social media do these 4 things: “value” to them to engage with us there. • They have a content plan and are consistent with their postings. Just like a A few tactics to consider: • Give guests a complimentary drink newspaper you need to publish interesting when they “Check In” on Facebook and like content regularly. If your updates are sporadic your community will seek content elsewhere. your page. • At social nights like “Open Mic” The most successful Facebook Pages post events take photos and upload in real time. updates 1-4 times a day. They Listen. Remember a lot of Encourage attendees to tag themselves in • conversations about your brand that take place your photos for a chance of winning spot on social media will not be directed at you. So prizes. • Promote Hashtags off-line so guests it is vital that companies use listening tools to unveil customer opinions and interests. can include the hotel in their conversations. • Images work really well on Also listen out for conversations about your social media with a whopping 87% of all competition and industry. Obviously just engagement on Facebook being from photos. listening is not enough if a customer is So regular real time pictures of events, food unhappy try to assist them. If they are saying specials, the pool, beach and even bios of staff wonderful things about you thank them. (Just like you would in the offline world) members. They schedule content. Most • Encourage customers to get involved • in decisions. E.g. getting customers to vote for successful businesses will use scheduling and monitoring tools to manage their social today’s drink and food specials. • Encourage customers to share media efforts. This allows a company to plan their experiences. People are more likely and spread out their updates over time. My to visit your hotel if they hear great things favourite tool for this is hootsuite.com. The from their friends (90% of people trust a great advantage of a scheduling tool will recommendation from a friend versus an ad). reduce the amount of time we need to spend Get customers to share blogs, photos and on each platform. They Advertise. Finally successful even videos of their happy time at your hotel. • companies spend money targeting and So remember if your online and offline marketing efforts are working together you engaging with their existing and prospective will be far more likely to succeed with your customers. Facebook offers some amazing
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ways of targeting prospective customers with ads. These include – Targeted ads on Facebook to people who have visited your website, Targeted ads to people who have certain interests, are a certain age, are of a particular gender, live in a specific location and the ability to target people on certain devices. Well targeted ads will allow us to reach the right people, at the right time and generate the greatest chance of a sale. No longer does the customer need to search and find the product. The product will find them.
have marketed your product and service. Now is the time to measure your success. Use Google Analytics to track visitors to your website. How many of your customers are converting from Facebook, Instagram, Twitter etc. Find out where your customers are finding out information about your products, special offers etc. What percentage of your monthly customers is part of your social media community? Armed with this information ask yourself how could I be even more successful? Stop doing the things that are not working and do more of the things that are. Remember social media is an iterative 5. Finally, measure and tweak your process so you must constantly measure and alter your approach. approach. So a successful social media strategy By now you will have clear social media will involve – clear business objectives, objectives, you will have decided on what an understanding of what platforms to social media platforms to use and you will use, a clever and engaging marketing
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and advertising approach and ongoing measurement. Imagine what your business could achieve if you were a little more strategic with your social media efforts and you used that amazing Bajan charm to engage online?
•Greg Fry is founder of Career Coach and a Social Media Trainer who lectures at Digital Marketing Institute.
WHY THE APPLE WATCH IS A GIFT TO THE SWISS WATCH INDUSTRY by RYAN RAFFAELLI - September 12, 2014
The launch of the Apple Watch this week has raised questions about its impact on the Swiss watch industry. Contrary to Apple designer Jony Ive’s remarks that the Swiss watch could be in trouble, there are several reasons why the Swiss have nothing to fear from Apple’s success. First, the Apple Watch makes wearing a watch relevant to a new generation of future watch collectors. I often ask other professors around the world how many of their students wear watches. The answer is always the same: “very few.” For many young adults who have grown up using their cell phone to tell time, the idea of wearing a watch is the equivalent of sending a telegraph or storing data on a floppy disk. The Apple Watch introduces the concept of wearing a watch to many of Apple’s 18 to 35 target market. If it takes off, it is likely that these buyers will eventually consider purchasing other types of watches for events later in life. Talk to any Swiss watch executive today and they will tell you many of their best clients started out collecting Swatches in the 1980s, but eventually started purchasing more expensive brands such as Rolex, Blancpain, Breguet, or Audemars Piguet later in life. Like the Swatch, it is quite possible that the Apple Watch could spark a new generation of watch aficionados and collectors. A similar phenomenon has recently occurred in the book industry. When Amazon introduced its Kindle eBook reader in 2007, many analysts predicted it marked the end of traditional bookselling. However, over the last five years independent bookstores have seen a resurgence in sales and in the number of stores, all the while selling traditional printed books. One of many reasons for this revival is that booksellers have benefited from continued demand for children’s books, which remain near the top of the fastest growing segments in the publishing industry. When parents and grandparents buy books to read to children at bedtime, they introduce the printed book to a new generation of potential
users. As these children have grown up, data show they have been less likely to abandon the printed book in favor of the Kindle. In fact, most readers are happy to read both. Second, the Apple Watch is likely to be a complement rather than a competitor to the Swiss watch. The Apple Watch is chock full of technological wonders that would be the envy of Dick Tracy, while Swiss watches are primarily luxury goods and status symbols. Apple is confident it will be able to reinvent its core technology every 6 to 12 months
before competitors like Samsung attempt to render it obsolete. Swiss watchmakers, on the other hand, see themselves as craftspeople producing wearable art meant to be passed down from generation to generation. The Swiss stopped competing for technological watchmaking supremacy in the 1980s when Japanese watch manufacturers like Casio and Seiko began producing far cheaper and more accurate quartz watches compared to their handmade mechanical timepieces. Within a decade of inventing the first quartz watch, the Swiss saw their export volume decrease from 45% to 10% of watches produced globally. By 1983, two-thirds of all watch industry jobs in Switzerland had vanished and over half of all watchmaking companies in Switzerland had gone bankrupt.
Thanks to the efforts of individuals like former Swatch Group chairman Nicolas G. Hayek and LVMH watch president Jean-Claude Biver (who oversees Hublot, Tag Heuer and Zenith), the Swiss watch industry cleverly repositioned its mechanical wonders as luxury goods. Unlike the $350 price tag suggested for a new Apple Watch, most of the Swiss watch industry’s meteoric growth over the last two decades has come from watches priced well over $10,000. The Swiss watch industry no longer competes on the same dimensions that will drive Apple Watch sales. Third, Apple and Swiss watchmakers have this in common: they are deeply committed to connecting their product with the consumer on a personal level. During Tuesday’s launch event, Apple CEO Tim Cook touted the Apple Watch as the “most personal device we’ve ever created.” The beauty of the Apple Watch is that it can track people’s micromovements and provide instant data to help wearers make sense of how they engage with the world around them. Similarly, while conducting research on the re-emergence of the Swiss watch industry, I interviewed a prominent Swiss watch CEO who said, “Your watch is part of you. The watch is you. It shows the type of personality you have: Are you elegant?, unique?, rich?, arrogant?, sporty?… all these elements are transmitted through your watch.” The Swiss watch industry can be confident that a sufficient number of well-to-do and tech-savvy Apple Watch wearers will continue to pine for the highest end handmade timepieces. The Apple Watch may keep perfect time, but it is not timeless. Ryan Raffaelli is an assistant professor of business administration at Harvard Business School. He studies the emergence and “reemergence” of industries, organizations, and technologies. He is currently investigating how organizations in stagnant industries are able to reinvent themselves. You can follow him @ryanlraffaelli
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PHOTOGRAPHY BY PHOTODYNAMIC INC.
Q&A
CCEO
Hilton Barbados'
Pradeep
Rajan is Passionate about Food
Pradeep Rajan is passionate about his role as Hilton Barbados Resort's Food & Beverage Manager. He took time out from his busy schedule to chat with Caribbean CEO about his position with the 5-Star hotel. Caribbean CEO: How long were you with Hilton Barbados Resort? Pradeep Rajan: I started with Hilton Barbados Resort in January 2012. So I have been here for two and half years.
Pradeep Rajan
CCEO: What does your role entail? PR: I am responsible for all food and beverage outlet areas at the hotel and ensuring we offer a diverse and creative culinary experience.
Hilton Barbados
CCEO: How long have you held this position? PR: I have been in the position at the hotel for over 2.5 years. CCEO: Are you where you always wanted to be career-wise? PR: This is one of the best jobs I have had. I feel privileged to work at the amazing Hilton Barbados Resort and I truly enjoy my role. The job is both challenging and very rewarding and my colleagues offer generous support.
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CCEO: What drives you? PR: I am a result oriented person and achieving our goals gives me a great sense of accomplishment. This job provides a vast scope, which helps keep the job exciting.
land their first job, it is extremely importantto be committed, work hard and the results will follow. Finally, as the hospitality industry is a 24-hour operation, being passionate about what you do is essential.
we discuss the business for the day, VIP’s in house, guest comments, staff appreciation, etc. Then, my day’s plan would be based on the business in house and meeting our F&B guests and suppliers.
CCEO: What do you like most about your job? PR: I enjoy exceeding our guests’ expectations and driving our team to achieve our results
CCEO: What have been the biggest challenges you have faced as a manager working for a resort such as the Hilton Barbados? PR: It is always challenging when guest expectations frequently change. We have to stay on top of the trends in the key markets and ensure we have relevant products in place to satisfy our guests. This is something we have to keep in mind on a day to day basis and always be innovative to stay competitive in the marketplace.
CCEO: How do you balance your personal and work life? PR: It is always a challenge to do this and it is easier said than done, but I do what I can to balance my priorities. Family, work and health are all important and it’s essential that each is given the right attention and time.
CCEO: What has been your proudest moment, professionally, to date? PR: Hilton Barbados Resort ranked as the TOP Hilton Worldwide hotel in the Caribbean and CCEO: Where do you see yourself in the next Latin America for the most improved food five years? and beverage customer service score. This PR: My goal is to one day manage a hotel. achievement is a true testament of the work Taking what I have learned to date and with we have been doing and the results we are continued focus on my career development, CCEO: What’s a typical day at work like? achieving. PR: There is never a typical day at the hotel I hope to be a general manager in the next CCEO: What’s your advice to the young and this is why I like my job so much. Every five years. The alternative would be to win the university or college grad who is looking for day brings new opportunities and new lottery and open my own hotel. challenges and every day is different. My their first job in the hotel/tourism industry? PR: I would advise them to start off by finding day normally starts around 8am. I do a a mentor and make sure they network; some thorough walkthrough all F&B outlets and of the best opportunities arise from great then participate in a morning briefing session networking skills. Additionally, once they with our management team, during which
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Dr. Com and in her own brilliant and charming style she has propelled the school into its position as a stalwart in the Caribbean business community. Those two qualities – brilliance and charm – are inescapable even after just a few minutes with Dr. Comma. She is always going to be one of the brightest people you have ever met but even if you reject her logic completely you are still likely to shake her hand at the end of the exchange, mirror her warm smile and walk away feeling better for the experience. While charming is perhaps the easiest way to describe her socially, it runs much deeper that. She is sincere in what she says and she conveys it in such a disarming manner that it instantly fosters respect and quickly puts you at ease. This potent combination is likely to be part of the kindling in the hearth of the CHSB and instrumental in the trajectory of the institution.
Profiles
CCEO
Dr. Jeanine Comma Cave Hill School of Business
It’s not hard to see how the Cave Hill School of Business (CHSB) may be perceived as being between a rock and a hard place. It is a business in the business of improving business. On the one hand it is, among other things, helping businesses plan better, work smarter, and execute more efficiently. On the other hand these are the same qualities it needs to exude daily. So it’s not hard to imagine a “physician heal thyself” conundrum lurking in the pages of a financial report yet to be written. The school, however, shows no signs of a need for any kind of cure. The CHSB is based in Barbados but also serves the OECS, with a board of directors taken from OECS member countries. Originally a pilot project with one programme in 1991, the Centre for Management Development matured into the CHSB by June of 2006. For the past 20 years Dr. Jeanine Comma has been at the head of the school
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As Dr. Comma explains it, at the core of the transition from a pilot project to a school of business has been a fellowship of people and organisations that she credits with the success that the CHSB has achieved. Together they have helped the CHSB become the first of the three business schools at Cave Hill, Mona and St. Augustine to take executive and management education and training as well as short-term executive development out to the region on behalf of the university. The School was the first to offer an online MBA programme; the first to have a graduate from their Doctor of Business Administration programme; and possibly the business school with a graduate in more territories than the others. Through all of this Dr. Comma is always “mindful that we are a business and when people look at us they expect that we are going to display the practices of a business, [among other things] they expect rapid response and courteous and efficient attention; [so you will find that] a lot [of what we do] is about making connections to ensure that your customers get the quality and consistency of interface and service that
mma
brings holistic approach to CHSB
internalising, all in the pursuit of what needs to be delivered. Even while working in service of so many her measures of success are not To emphasise this, she explained that in delivering a course they complicated. First she insists that there is an “understanding that the often have to marry the varying competence, experience, expertise service quality and the relevance and consistency of the products and and type of approach of the different facilitators - “we need to bring services we provide are well delivered, received and appreciated… them all together - it’s not about trying to rein in the lecturers and and the recipients receive value for money”. facilitators; we need to foster an environment and relationship to allow them to deliver and share their knowledge and experience”. She also looks to her board of directors, who must “feel that we have This circa UN approach seems to be stereotypical of her tenure at the been able to deliver on our outputs, that our financial position is CHSB. Internally and externally her goals are approached in a holistic sound so that there is a balance with our high development agenda”. manner, achieved largely through building partnerships and sharing There is also an indicator of success in the fact that “there are directors leadership. “There is a lot of movement, I travel a lot and the team who want to continue to give us their guidance and direction – they travels a lot – people [need to be] sufficiently well-informed to wave are valuable in terms of helping us to grow this business in very the banner and be able to execute based on what they understand many ways – some of them have been with us for the 23 years like we are trying to achieve” [I work with a] bright, young group of eager our chairperson – some have been with us for 10 / 15 years – some people who ask questions and are willing to learn from those with have retired and continued with us – they understand the value of our greater tried and true perspectives… and there is a high level of organisation to the Caribbean society. The board’s happiness is my cohesion, [they are] very cooperative, willing, involved, team oriented, happiness if you will”. appreciative and understanding that which we do to nation building”. Private sector and donor community support have been critical to This level of internal cohesion is all the more critical when you consider the CHSB but is also yet another beacon of success. “USAID was one that the “breadth of our list of stakeholders is extensive”. CHSB has of the organisations that helped start the Centre for Management “extensive programmatic areas” delivering programmes across many Development; USAID has continued to support the school; in fact the publics both individual and corporate in Barbados and the OECS. They former Mission director while visiting on a mission assessment team also work with government ministries and corporations in Barbados said to me “This is my baby”. The IDB (Inter-American Development and the OECS. The approach she engineered, therefore, had to be Bank) and IIC (Inter-American Investment Corporation); DFATD global in scope, technologically inclusive and mindful of the cultural (Department of Foreign Affairs, Trade and Development of the Canadian and political diversity of the region where the programmes would government); Neal and Massy; Sagicor; First Citizens; entrepreneurs be delivered. And since the clients of the CHSB operate in a global and SMEs have all stepped up to the plate because they understand environment under international criteria and there is little room for any what we do and the importance of it – and that is success. misalignment of goals or procedures she and her team are constantly in contact with each other. “We use email a lot” …”I am constantly Finally, having staff that are “engaged, like each other, work well in contact with my chairman, the principal, the dean, the head of the as team and understand the challenges of the business and the graduate school, the stakeholders in various organisations – within environment” is also success. and external”. “We are from the Caribbean, of the Caribbean; [we] understand business in this environment… [and] how [to] be more And for her the journey “has been dynamic, it has been fruitful, it has effective as Caribbean people as we do business around the world. been challenging, it has been difficult, but it has been rewarding. It [This is the] advantage [we have over the extra-regional] business has been exhilarating and it has been rewarding – so it is a journey that if I had to take it again I would take it wholesale with all of its schools. challenges with all of its woes, all of its highs”. Hers is a very fluid environment and to keep ahead of the curve or at least stay abreast of it she is constantly reading and listening and they require and need [whether that is] online or in person”.
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TIME FOR CHANGE?
Barbados’ International investments Landscape B
arbados continues to rely heavily on inflows of investment capital from developed capital markets in metropolitan countries and this was borne out recently, when the lead writer in one of the local dailies said in that paper’s editorial: “We have had timely reminders of the benefits which can flow from a national policy which invites and encourages direct foreign inward investment as a necessary component of our economic strategies. “Thirty years ago, we foolishly rejected the establishment of offshore medical schools in our country; but recently the American University Medical School opened its permanent sprawling new campus in Silver Sands, Christ Church. Such a school will earn foreign exchange for us and provide jobs. Why did we wait so long? The Top Gear Festival which was staged at Bushy Park, St Philip is another example of the benefits to flow from foreign investment combined with local input, and it behoves us to fashion a consistent national attitude which welcomes such investment.” The lead writer went on to say that some policy makers had criticised tourism developments on the West Coast in particular, as creating two “Barbadoses”, but we all bitterly regret the stoppage at Four Seasons and have made major efforts to get it restarted. Recently, government announced that investors from the Middle Eastern country of Qatar had expressed an interest in the property. Meanwhile, in a recent interview with Caribbean CEO, president of the Economic Society, Jeremy Stephen, noted that in spite of the current economic downturn,Barbados has been able to attract foreign investment. Stephen said: “Barbados has been able to attract some level of foreign investment. We define foreign investment as borrowing from such external sources such as the international bond community or the international credit community. These persons or bankers are located in such capitals as New York, Toronto, Canada, London and Miami, Florida. “They have been our principal partners and they contribute to the external debt that we have. That is not foreign direct investment in particular, but that is a form of investment in the country. However, Barbados’ economic strategy has always been to limit that type of investment because of the adverse effect that too much of it can have on our currency. It must be taken into consideration that the repayments will be in US dollars thereby placing pressure on the country’s foreign reserves and the local commercial banks. Government would have to borrow the US dollars from the commercial banks or ask the Central Bank to make up the shortfall thereby causing a drop in the foreign reserves,” Stephen added.
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Stephen, who is a professional economist, explained that foreign direct investment arises where investors from overseas identify a project and inject money into it. “You can get direct foreign investment from lending agencies such as the World Bank or the Inter-American Development Bank. You may also get some grant funding coming in. The case of Qatari investors taking an interest in the Four Seasons Project is an example of foreign direct investment. If foreign direct investment has fallen off, it has not fallen off significantly. As economist we have been paying attention to the fact that Barbados has not been effective enough in attracting enough investments and the deficiencies in the area of competitiveness,” Stephen said. Taking a critical look at Barbados’ major foreign exchange earner, tourism, Stephen suggested that policy makers must ensure that they provide new room stock. “Having new investors re-investing in old properties or investing in long-standing properties will not move the industry to the next level. If tourism officials can fully privatise the Gems properties and then invite foreign investors to buy equity in the project that would be a case of direct foreign investment. Another case in point of direct foreign investment is hotelier, Butch Stewart’s purchase of the Casuarina Hotel and an investment of US$ 65 million in a refurbishment programme. Stewart has also expressed an interest in Almond Beach Resort in St Peter,” Stephen explained. Stressing the importance of foreign direct investment to Barbados’ economic development, Stephen said: “It is imperative that we attract this type of investment. It is central to our economic strategy. Minister of Finance and Economic Affairs, Chris Sinckler, believes that foreign direct investment is central to our recovery. Some people can always come and use the drive for foreign direct investment politically saying that we
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are selling off Barbadian propertydisplacing domestic assets. However, the fact remains that if our central economic strategy is to protect the value of our currency, we have to grow the economy. We need to get lifeblood from somewhere else. Foreign direct investment must come in to generate foreign reserves for the economy.” In a recent news item carried in one of the island’s dailies, longstanding hotelier, Bernie Weatherhead claimed that the current debt crisis has the potential to cripple the tourism industry. Weatherhead charged that at least 60 per cent of hotels were in serious financial trouble and continually rescheduling bank payments. The hotelier further stated that as much as 80 percent of the commercial banks’ bad debt related to the hotel industry. Weatherhead pointed out that if an effort was not made to fix the industry now, the country could look forward to even worse times. Charging that tourism in Barbados has been on the decline over the past four years, the leading businessman said: “It’s as simple as this: tourism in Barbados has been on the decline as late as 2010 . . . and it wasn’t only a decline created by the market place. Some of the decline was created by our own hotel industry because many of our hotels are not up to the standard that is required to make people stand in line for it.” Weatherhead stressed that standard could not be achieved by just lending money for refurbishment as that had to be done every five years, while the money that was borrowed must be repaid over a 10 to 15 year period. He said if someone invested in a three-star quality hotel now, he could guarantee the operating costs, bank repayments and other expenses would outstrip earnings and it would fail. Disagreeing with Barbados’ upmarket push,
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Weatherhead said: “The infrastructure in Barbados could not cater to this. The country needed good quality four-star properties to get the charter companies to come instead.” Meanwhile, examining another area of foreign direct investment in Barbados and the region Stephen said he has heard of Russians engaging in some off-shore business in Barbados, but stressed that doing business here has not been as attractive as in other Caribbean jurisdictions. However, he noted that the Russians have been very active in the Caribbean particularly St. Kitts and Antigua. There is also some Russian presence in St Lucia. “Reports out of St. Kitts indicate that Russians are into the purchase of citizenship. Dominica has had an influx of investment from Russia. The US has issued a warning that Iranians may be interested in buying citizenship in St. Kitts,
Stephen said. The economist, however, stressed that most of the Russian oligarchs tend to use European tax shelters. Addressing an area of investment where leading entertainment personalities invest in real estate in the country, Stephen said: “Ownership of real estate by leading entertainment personalities brings foreign exchange. Such investors would have to sell US dollars or Pounds Sterling to execute the transaction. These transactions bring in the foreign exchange. There is a report that pop singer, Cliff Richards, owns a palatial home in St James. “That was part of the economic strategy during the Owen Arthur administration – allowing land to realise its greatest economic value. Today’s strategy is an evolution of Arthur’s strategy. It has been a good provider of foreign exchange for the country even though it led to the price of properties shooting through the roof,” Stephen added. Explaining why Barbados has proven to be attractive to some of the world’s rich and famous, the academic said:
When you are playing at that multi-million level it is all about protecting your assets or making money. In some cases, persons would have a true love for Barbados. The country is politically stable; it has a relatively low crime rate and it has good infrastructure relative to the other jurisdictions in the region. It must also be
taken into account that the country has one of the best transportation hubs in the region – a short hop and a skip over to the United Kingdom relative to Trinidad and Tobago and Jamaica. There is a short hop and skip into South America. It is a short hop and a skip over to the USA and Canada. A lot of those factors play into the attractiveness of Barbados, but the main thing has always been the value of real estate. It is one of the few property markets in the world which seemingly does not react to economic conditions. You have not heard too much about “fire sales” which indicate that business is not working and investors are beating a hasty retreat.” Commenting on the absence of risk capital in Barbados, Stephen said: “Taking risk is built into the American culture. It comes down to the fact that America has a very strong bankruptcy framework. That is if you cannot pay your bills just file for bankruptcy. Once you are cleared you can get right back in there and creditors will be able to deal with your finances again. There is an acceptance of failure embedded in the American culture. You also need to remember that America was built on the backs of immigrants looking for opportunities and sold on the American dream. There is no other country in the world that has been able to replicate that. They are opened to risks because that is how America was built. It was built on risk. Risk-takers essentially took over the USA. You are seeing the benefits of it years later with such business icons as Bill Gates and Steve Jobs among others. There is no bankruptcy law in Barbados to protect you. If you go bankrupt there is the stigma attached to it.” Asked to comment on some of the guidelines for establishing a successful business, Stephens said: “It comes from education and networking. White Barbadian businessmen have a wide international network. On the contrary, it seems embedded in the black culture that if you do not trust someone you
cannot do business with them. You do not have to trust someone once the legal framework is in place to ensure that any offender is forced to hold the line and penalties are enforced. Successful business ventures are linked to the rule of law. Some of the wealthiest black men have been able to build networks across the colour line.” Noting that over the past four decades the financial capitals are slowing shifting from London and New York to the Middle East and the far East, the outspoken economist said: “There are certain countries in the Middle East that the USA has deep relations with and that would not cause red flags to be raised if Barbados has business relations with. Up to about last year, the United Arab Emirates owned the New York Port. They also own massive amounts of real estate in the USA. This is the sovereign wealth fund. But also UAE investors own massive amounts of real estate in New York. The Chinese own most of Manhattan and in the United Kingdom the Qataris and persons from Dubai and Egypt own some of the most upmarket properties. “It is not that thousands or even millions of Middle Eastern will descend on an island of a mere 166 square miles. We cannot sustain that influx of persons. Our rule of law shines like a beacon and we have been able to establish good relations with the USA. If we remain diligent and we have been, there is no reason for us to anticipate any negative reaction from the USA. Barbados is not blacklisted based on our harbouring of criminals or very wealthy tax dodgers. Our relations with some of the Middle Eastern countries should not present a threat to USA security,” Stephen added. Stephen suggested that local policy makers should extend relations with some Middle Eastern countries and attract investment to the country. by
Joseph Grimes 2014
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by Lisa Legall Belgrave
income, employment, industrial production, downturn in the United States (US). However, and wholesale-retail sales. (www.wikipedia. the financial mess quickly spread beyond the com/recession). shores of the US to markets overseas. There were also subsequent business scandals and In 2008 the world economy experienced taxpayer bailouts of companies like General its worst crisis since the Great Depression of Motors in the US, which helped consumers to the 1930s. Dubbed the “Great Recession”, develop a sense of distrust of the companies what would give rise to a global economic that made up Corporate America. meltdown started in 2007 when home prices, which had skyrocketed, saw a vicious and quick The fallout from the economic meltdown
WHAT IS A RECESSION?
According to the National Bureau of Economic Research, which is generally seen as the authority for dating US recessions, an economic recession is “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real Gross Domestic Product, real
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saw confidence at an all-time low, along with consumers adjusting their behaviour either by reducing their spending or stopped spending completely. The Conference Board’s US Consumer Confidence Index sank to its lowest ever since it started tracking consumer confidence in 1967. The recession affected several business sectors including the investment banking industry; the biggest insurance company in the United States – AIG; Freddie Mac and Fannie Mae – both chartered by the United States government to facilitate mortgage lending; the largest mortgage lender; the largest savings and loan banks, and two of the largest commercial banks. It was soon realised that the damage done reached much farther than the financial sector as companies who relied on credit to operate also suffered heavily from the economic downturn. The US auto industry suffered immensely from the financial crisis. Furthermore, the banking industry did not believe that companies could afford to repay their loans and simply put an end to lending to companies who depended on them for regular cash flows. Without the support of the banks, companies could no longer afford to do business. In 2008, the stock market plummeted globally – the Dow Jones Industrial Average lost 33.8% of its value. By the end of that year it was clear that the world was in a deep recession.
depend heavily on exporting their products to the US and Europe no longer had a demand for their products from these markets. Countries with smaller economies that also depended on markets abroad soon started to feel the effects of the recession as well. With the big economies around the world haemorrhaging there was no lifeline available to pull the global economy out of recession. It soon became clear to all involved that the recession was going to be a long and difficult one and the resulting recovery would be too.
WHAT CAUSED THIS FINANCIAL MESS?
There are two schools of thought for the reasons behind the financial meltdown of 2007/2008. 1. Subprime Mortgages The sub-prime mortgages are seen as one of the key factors behind the debacle. At the height of the mortgage-backed securities, mortgage companies were more than happy to lend to anyone, regardless of their financial situation. Those firms that would have profited from this practice clearly believed that the situation could continue forever.
2. Deregulation Another theory is deregulation. In the late 1990s, the US Congress broke up the barriers between commercial and investment banking, which encouraged risky investments with borrowed money. This move also allowed for derivatives – credit default swaps and Fiscally, many of the world’s economies other financial instruments that derive their are led by the United States, so that by the value from underlying securities – to operate end of 2008, we saw countries like Japan, without federal oversight. Germany and China in deep recession too. Europe was also in deep recession, primarily The financial crisis resulted in mammoth because many European countries invested buyouts, Government bailouts and complete in American real estate securities. However, collapse of several firms; however that was Japan and China didn’t get into the US real not nearly the most significant fallout of the estate securities business so they didn’t suffer crisis. The most significant fallout would the same fate, but their manufacturers that be the credit markets. Credit markets allow
hundreds of billions of dollars a day to be lent for periods as short as overnight by those who had the capital to lend to those who needed it. The banks that operated in the credit markets no longer trusted the borrowers and as a result, lending all but froze. Businesses could no longer borrow money and without loans, they were unable to grow. Without loans, some businesses could not even pay for dayto-day operations. Subsequently, a new development emerged that highlighted just how serious the crisis really was. The Reserve Primary Fund, a major United States money-market fund, announced that it would “break the buck”. Money-market funds play a significant role in the financial sector because the deposits from moneymarket funds are used to make many of the short-term loans that large corporations need. Money-market funds are not protected by federal deposit insurance but they are widely accepted as safe as bank deposits. In addition, they attract all types of investors because they earn rates of return superior to those offered by the safest of all investments – US Treasury securities. The investment sector was shocked when Reserve Primary announced it was unable to pay more than 97 cents. This led many to give up on money-market funds. The Feds recognised it needed to do more to get the US economy moving again and as a result pumped more than US$1 trillion into the economy. Treasury Secretary at the time, Henry Paulson asked Congress to establish a US$700 billion fund to keep the economy going.
HOW BUSINESSES WERE AFFECTED?
It’s hard not to be pessimistic about the impact the recession would have on businesses, especially when companies were unable to readily get credit from banks. Banks themselves were experiencing liquidity
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problems and as a result became very risk- The article explains that marketing throughout averse about lending to businesses and a recession is also critical although it is accepted individuals as well as to other banks. that cutting the marketing budget is an easier exercise than cutting the production budget. Additionally, consumer behaviour shifted The authors offered the below steps to see as they were impacted by the downturn. brands through a recession (See box). Consumers curbed spending, focusing mainly on the essentials so businesses have The 2008 recession was a long and difficult to shift their marketing strategies to match the one; quite unlike any experienced before. changes occurring in their specific markets Companies therefore had to adjust their along with consumer behaviour. strategies and tactics to deal with the changes of consumer spending habits that occurred as How companies respond during a recession a result. However, companies also have to be determines their survival during and after the prepared for the time when the recession ends, recession. It’s important that companies fine- therefore companies have to ensure there are tune their marketing efforts and assess their in a position to respond to more changes once product portfolios according to the market consumer confidence returns and they are forces that abound during the recession. The ready to spend again. There will always be a brands that are able to do this successfully will segment that is quick to spend again once the always be the brands that continue to prosper economy begins to improve. Those companies during and after the recession. who wait until the economy has fully recovered will surely be left suffering at the hands of their In the April 2009 article “How to Market in a competitors. Downturn” published in the Harvard Business Review, authors John Quelch and Katherine.E. Regardless of the tactics, brands need to stay Jocz outlined the following as necessary to in the minds of consumers so an integrated understand how customers behave during marketing communications approach is a recession and how understanding the necessary. Although brands would have psychology of a recession will help brands to increased their online presence because more weather the recession storm successfully: and more people migrated to the Internet mainly because of the aegis of social media, “Divide customers into four groups based on traditional media is still as important as it their emotional response to the recession: a always has been. Any brand that wants to stay hard-hit slam-on-the-brakes segment, which top-of-mind of consumers cannot afford to curtails all spending; a pained-but patient ignore the power of television. segment, which selectively economizes; a comfortably well-off segment, whose high-end HOW CONSUMERS RESPONDED purchasing continues, if less conspicuously; According to Paul Flatters and Michael Willand a live-for-today segment, whose spending mott writing in the Harvard Business Review remains largely unchanged. Next, assess how article “Understanding the Post-Recession Coneach segment allocates its purchases among sumer”, four key trends were noted following the following categories: essentials, treats, the recession: postponables, and expendables.” • Consumers demanded simplicity
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John Quelch in his Harvard Business Review blog post “How to Market in a Recession” suggested that companies focus on the following eight factors to see during the recession:
1. Research the customer – Instead of cutting the market research budget, you need to know more than ever how consumers are redefining value and responding to the recession. Price elasticity curves are changing. Consumers take more time searching for durable goods and negotiate harder at the point of sale. They are more willing to postpone purchases, trade down, or buy less. Must-have features of yesterday are today’s can-live-withouts. Trusted brands are especially valued and they can still launch new products successfully but interest in new brands and new categories fades. Conspicuous consumption becomes less prevalent. 2. Focus on family values – When economic hard times loom, we tend to retreat to our village. Look for cozy hearthand-home family scenes in advertising to replace images of extreme sports, adventure and rugged individualism. Zany humour and appeals on the basis of fear are out. Greeting card sales, telephone use and discretionary spending on home furnishings and home entertainment will hold up well, as uncertainty prompts us to stay at home but also stay connected with family and friends. 3. Maintain marketing spending – This is not the time to cut advertising. It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. Uncertain consumers need the reassurance
• Ethical business governance was being called for • There was a need to economize • Consumers seemed content to move from one offer to another With the effects of the 2008 recession being felt for quite a long time, it was expected that consumer behaviour would change significantly once the recession came to an end. Trends indicated that businesses would have to learn to deal with these changes. Generally speaking, a recession tends to last for approximately a year, and therefore the rebound is fairly fast, but the Great Recession was quite different. With many people losing their jobs, faced with the inability to meet their mortgage payments and many subsequently losing their homes, consumers were less than pleased with many big businesses in the financial sector because their questionable practices were seen as the reason for the long and painful recession. Consumers responded by making what is seemed like harsh adjustments either by “tightening their belts” or curbing their spending altogether. Some simply had no choice as thousands of jobs were lost across the globe. Companies had to find a way to also make adjustments not only because customers were fewer but also because marketing budgets were drastically cut. How then do companies manage to navigate the business of staying in business during a recession? How do companies continue to keep bringing customers through their doors?
of known brands–and more consumers at home watching television can deliver higher than expected audiences at lower cost-perthousand impressions. Brands with deep pockets may be able to negotiate favourable advertising rates and lock them in for several years. If you have to cut marketing spending, try to maintain the frequency of advertisements by shifting from 30-to-15 second advertisements, substituting radio for television advertising, or increasing the use of direct marketing, which gives more immediate sales impact. 4. Adjust product portfolios – Marketers must reforecast demand for each item in their product lines as consumers trade down to models that stress good value, such as cars with fewer options. Tough times favour multi-purpose goods over specialised products and weaker items in product lines should be pruned. In grocery-products categories, good-quality own-brands gain at the expense of national brands. Industrial customers prefer to see products and services unbundled and priced separately. Gimmicks are out; reliability, durability, safety and performance are in. New products, especially those that address the new consumer reality and thereby put pressure on competitors, still should be introduced but advertising should stress superior price performance, not corporate image. 5. Support distributors – In uncertain times, no one wants to tie up working capital in excess inventories. Early-buy allowances, extended financing and generous return policies motivate distributors to stock your full product line. This is particularly true with unproven new products. Be careful about expanding distribution to lower-priced channels; doing so can jeopardise existing relationships and your brand image. However, now may be the time to drop your weaker distributors and upgrade your sales force by recruiting those
sacked by other companies. 6. Adjust pricing tactics – Customers will be shopping around for the best deals. You do not necessarily have to cut list prices but you may need to offer more temporary price promotions, reduce thresholds for quantity discounts, extend credit to long-standing customers and price smaller pack sizes more aggressively. In tough times, price cuts attract more consumer support than promotions such as sweepstakes and mail-in offers. 7. Stress market share – In all but a few technology categories where growth prospects are strong, companies are in a battle for market share and, in some cases, survival. Knowing your cost structure can ensure that any cuts or consolidation initiatives will save the most money with minimum customer impact. Companies such as Wal-Mart and Southwest Airlines, with strong positions and the most productive cost structures in their industries, can expect to gain market share. Other companies with healthy balance sheets can do so by acquiring weak competitors. 8. Emphasise core values – Although most companies are making employees redundant, chief executives can cement the loyalty of those who remain by assuring employees that the company has survived difficult times before, maintaining quality rather than cutting corners and servicing existing customers rather than trying to be all things to all people. CEOs must spend more time with customers and employees. Economic recession can elevate the importance of the finance director’s balance sheet over the marketing manager’s income statement. Managing working capital can easily dominate managing customer relationships. CEOs must counter this. Successful companies do not abandon their marketing strategies in a recession; they adapt them.
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European Film Thrills TnT Audiences Avid cinema-goers and film enthusiasts were thrilled this year by the array of European films scheduled during the 18th European Film Festival (EFF) held in both islands of Trinidad and Tobago this year from the 14th – 27th May. now in its third year, helped to increase the quality in organisation and presentation of the schedule of films. The 18th EFF featured a range of interesting and engaging films from Belgium, Estonia, France, Germany, Italy, Latvia, The Netherlands, Poland, Slovakia, Spain, Sweden and the UK. A variety of film genres thrilled viewers this year including some award-winning dramas, thrillers, comedies, documentaries and children’s films from some of Europe’s top filmmakers. Jacques Sturm, Ambassador of France, the 2014 coordinating mission of the EFF told ttff in a recent interview that “one of the aims of the EFF is to give local audiences a glimpse of the customs, history and culture of contemporary European society. Further, it is hoped that the films shown will
In order to host this ever-growing and prestigious film festival, several European embassies and agencies – the Embassy of France, Embassy of Germany, Embassy of Spain, Delegation of the European Union, British High Commission, Embassy of the Netherlands – collaborated with a host of European companies based in Trinidad and Tobago, the Alliance Française, Institut Français, Goethe Institut and the trinidad+tobago film festival (ttff). The festival, which first debuted in 1996, is geared to showcase films from the European Union. A partnership with the ttff,
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rekindle the memories of past experiences in Europe for those who are already familiar with it, and to those who are not, hopefully increase their desire to visit, and discover its atmosphere and its people.” As a serious film enthusiast and critic, I was extremely pleased by the films that I
managed to view. The collaboration with the Movietowne chain in Port of Spain and Tobago ensured that patrons experienced the films in comfort along with high-quality audio and visual. The range of films presented must have been chosen for their reflection of the human condition across time and place, which allowed the patron to be drawn in to the storylines and empathise with the loveable characters. Although the line-up of films presented were notable, there were some that moved the viewer and were shown to sold-out audiences each time – the subtle portrayal of the delicate relationship between a father, his young adult daughter and their changing lives captivated the audience in 35 Rhums (35 shots of rum) set in Paris; the stirring account of the work and life of a Jew escaped from the Holocaust, living in New York and hired by the New Yorker to cover the trial of a mere official for crimes he is charged for during the Holocaust – her
to sit in on the tale of young man of humble means fighting for his love who is soon to be married to a wealthy man in the midst of the Netherlands about to be invaded by the Third Reich. The exquisite storylines, well-developed production and excellent cinematography brought many significant issues that shape humanity, society and all of our lives in the past and continue today to the big screen. It was indeed a pleasure to be able to sit back and for a mere US$4.50, forget that one is in the Caribbean and be transported to another locale far, far away, cry, laugh, hold one’s breath and tune in to the rich and dynamic stories and characters presented by these films. Trinidad and Tobago like most Anglophone Caribbean islands receive a steady flow of Hollywood-based films throughout the year but for these 15 days in May, those who were willing to open their minds, take a risk in something different, read subtitles, and engross themselves in the lives, stories and issues of the characters presented walked away with a better understanding and insight into human nature and the drama that is human life, whether on the European continent, Africa, Asia or right here on our sunny Caribbean isles. It just ended, but we will keep our eyes peeled for the line-up of the European Film Festival 2015!
conviction to stand for the truth and comment on the banality of evil is moving in Hannah Arendt; Sleep Tight (Mientras Duermes) a thriller that chronicles a maniacal plan of a man unable to feel happiness to make everyone else unhappy and turn one particular happy woman’s life topsy-turvy; a story of friendship during WWII in the UK and questions posed about the meaning of life, freedom and the boundaries we accept and break in society was explored in Ginger & Rosa; the snapshot Sean Samad is an avid film enthusiast, of life in UK council flats, the helplessness of youth, the challenges of single parenthood travel buff and travel planner. He is also and exposure of young women to abuse and a part-time lecturer in Brazilian Studies entrapment was vividly shown in Fish Tank; at the University of the West Indies, St. the incredibly moving adaptation of Tess of D’Ubervilles set in modern day India that Augustine. drew the viewer into a story that forced one to think about the dynamics between lovers and the frailty of respect and commitment in Trishna; and finally the beautiful and stirring love story in The Blitz that allowed the viewer by
Sean Samad 2014
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A
Investment Options Revisited By
Marlon Yarde
C.E.O. & General Manager Barbados Stock Exchange
s business persons and a region, we stand at a very important juncture in our national and regional economic development. As our region and our business environment continue to grapple with the spinoff effects of the worldwide economic recession, we need to look at capitalizing on the potential opportunities which present themselves. Increased emphasis on research and development and product innovation are vital for business survival and it is necessary that we question if the traditional forms of finance being utilised are working to our benefit or what measures we need to implement in our regional capital markets to deepen it so as to propel our economic development to the next level so as to allow the people of the region to attain a sustainable standard of living that would make us an example of prosperity for other regions of the world. The Oxford Dictionary of Finance and Banking defines a “deep market” as, “A market in which a large number of transactions can take place without moving the price of the underlying commodity, currency or financial instrument.” To this end there is a need to have many market participants – issuers, intermediaries and investors.
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There is also need for greater emphasis on the regulations that govern these participants and their respective interactions. Some of the challenges faced in deepening the regional capital markets include, but are not limited to: • Market illiquidity; • Differences in regulatory requirements for issuers and investors depending on jurisdiction; • Difficulty in accessing financial statements and other corporate information on a timely basis, though this is improving for companies listed on our various regional exchanges;
programs to foster confidence in the markets. In addition, they can spearhead initiatives which seek to develop the market and raise these issues at the political directorate level so that these reach successful conclusions. The existence of up to date rules which reflect international best practice is a vital component of a successful capital market. The establishment of minimum standards of capitalization, registration of securities and market participants, timely disclosure of information to shareholders and the general public and effective enforcement of regulations are all common features contained in international regulations pertaining to capital markets. • The Role of the Central Bank – Greater emphasis should be placed on the development of monetary policies that assist in the development of the financial markets. There is need for the recognition of the financial securities market as a viable source of financing for all companies, especially SMEs and not just the traditional method of debt financing. This thrust should be driven by the Central Banks with the full support of the Government. • The Role of Issuers and Corporate Governance – It is imperative that issuers recognize the importance of meeting their obligations as laid out in the regulations governing their participation in the capital markets. This along with good corporate governance policies and procedures ensure that all investors and the market are well informed. Information disseminated provides clarity and a measure of predictability in the capital markets as it is done so in a timely manner. It also reduces the level of perceived risk investors may have because all information required to make a wise investment decision is easily accessible. The establishment of corporate governance
Having identified these issues we must now take a look at the measures that can be implemented to mitigate the challenges faced in the development of deeper regional capital markets using the Barbados market as an example. The measures include: • The Role of the Government – It is imperative that the business enablers view the capital markets as a mechanism for business and economic development. Governments too need to recognize the potential the capital markets have for driving economic growth and sustainability. Vibrant capital markets can also be used as tools for attracting foreign investors and by extension foreign exchange to the region as a whole and to their respective national economies. The provision of an environment that promotes sustainable development and economic growth is paramount as any negative changes to the general economic stability will heighten both issuer and investor perception of risk, instill a reluctance to either list or invest and thus retard growth in the financial markets. • The Role of the Regulator – The regulator’s role is crucial in the development of the capital market as they can play a pivotal role in public education
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policies also has the potential of improving the internal policies/controls of issuers leading to greater accountability and hopefully greater profit margins for them. • The Role of Intermediaries – Expert and efficient intermediaries are critical to capital market success. These intermediaries form the bridge between the issuers and investors and thus market performance and success is hinged on their ability to effectively interact with investors providing them with accurate and concise information to facilitate and foster sound financial thinking and investing. • The Role of Investors and Investor Education – Investors need to be financially aware. Prior to investing it is always wise to find out as much as possible about the security you intend to invest in. Information as simple as the above read statement needs to be communicated to investors. To this end the education of our investors and the general public is critical and we must continue to provide them with educational programs and opportunities to gain a better understanding on the benefits of utilizing capital markets as a source of wealth creation. • Technology – The use of technology to enhance institutional strengthening and deepen capital markets is crucial. Incorporating the use of electronic trading, clearance and settlement systems and leveraging these systems to provide high quality products and services to investors adds value to their investing experience. We continue to work towards integrating our electronic trading, clearing and settlement systems with our website to allow current and prospective investors access to view both real time and historical trading information as well as access their account information, make requests to update their information and request account statements. We need to
time, however, the Stock Exchange’s role in this regard is most critical as their abilities will constantly be challenged as investors become more knowledgeable and begin to demand more innovative investment options to aid in greater diversification of their investment portfolios as they move from viewing capital markets as an avenue for wealth creation to
a source of wealth maximization. We must continue and not give up on our efforts to integrate our regional markets regardless of the challenges we face. We must do the right things for the people of our region and lead from the front so as to create a deeper and more vibrant regional capital market with new and innovative products and services.
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be systems focused but people driven. The current stage of the regional capital markets could be described as developing. Like many markets we have already moved towards establishing the regulatory frameworks in line with international best practice necessary to effect change in our respective jurisdictions. Governments in the region have recognized the positive role capital markets play in the future of their economies as a tool for driving economic activity. The stock exchanges of the region have embraced the use of technology and are constantly improving the quality of products and services they provide for issuers, intermediaries and investors as well as sustaining efforts at educating them on current trends and events taking place in the marketplace. Greater market depth is not just achievable but very much attainable if all parties concerned work toward this common goal recognizing that as the market deepens and matures, changes in the way each party operates may have to be made in order for each party to reap any benefits which may be derived. At the same
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Earlier this year, the Barbados government signed an agreement with Cahill Energy to build a US$241 million facility that will use waste to produce energy. The plant will have a capacity of 30 to 35 megawatts. It is anticipated that the facility will be operational by the end of the second quarter of 2017 and will create up to 650 skilled labour jobs. Barbados has a target to replace 29 per cent of its oil-fired electricity output with generation from renewable and alternative sources by 2029. Dominica’s Valley of Desolation is actually a place of great hope. This desolate, moss covered, rock valley floor is wreathed in mists of steam, the result of very hot water being pushed up through volcanic mini-geysers and cracks in the earth’s crust. These hot springs, for which Dominica is renowned, come in shades of grey, blue, green, yellow, orange, brown and black – the residue of mineral deposits that have seeped out of the earth into the stream beds. While many Caribbean nations are looking upwards to the sun for an alternative source of energy, Dominica is looking down. Dominica is a hotbed of geo-thermal energy – perfect for exploitation. At its core, temperatures can reach a mind-boggling 5 000°C, the result of radio-active decay of minerals and the original processes that formed the planet. In 2008, A European Union-funded exploratory programme found that the geothermal resources in the Wotten Waven area of Dominica could potentially generate 130 megawatts of electricity – enough to supply the entire island with green energy, and may be even able to export some too. Experts estimated that the Laudat-Wotten Waven geothermal field was about 15sq km in extent, with the temperatures ranging between 250° and 300°. Alongside the government of Dominica, the project is being financed
by the French Development agency and the European Development Fund. The French joined the project in the hope that Dominica’s geo-thermal field would be able to produce enough electricity to supply Martinique and Guadeloupe with 50 megawatts each via undersea cable. If successful the strategy would save France €100 million per year in fuel subsidies. Dominica has already invested more than US$12 million in developing the geo-thermal industry. Dominica’s ambassador to the United Nations, Vince Henderson, told the UN General Assembly in October 2012 that Dominica’s energy initiative has the potential to transform its economy. Henderson anticipated that by 2017, all of Dominica’s electricity needs will be met by a combination of sources: hydro and geo-thermal. He further anticipated that by 2020 Dominica will be exporting electricity to neighbouring islands via underwater cables. Guyana on the other hand, “the land of many waters” is rich in hydro resources and should benefit from its own natural wealth. The construction of a new 165 megawatts hydro-electric facility creates an opportunity for Guyana to generate its own power from a clean, natural source and with it a dependable, affordable source of electricity fostering growth and economic development in the country. The plant which is to be located where the Amaila and the Kuribroug rivers meet, will deliver electricity to Guyana’s capital, Georgetown, and its second largest town, Linden by an electric transmission line. A leading Chinese construction firm has won the contracts to build a US$840 million hydropower station in Guyana, the country’s largest ever power generation project. China Railway First Group Co. Ltd signed the contracts with United States Sithe Global Power LLC and the Guyanese government. While the American firm will act as the developer, their Chinese
partners will be in charge of designing, purchasing materials and constructing the 165 megawatt Guyana Amaila Hydro power station. Construction was expected to begin in 2013 and last for 39 months. Meanwhile, Trinidad and Tobago remains the only “oil rich” country in the region. With its petro dollars Trinidad and Tobago remains the financier for several of the Lesser Developed countries of the Eastern Caribbean. In December 2009, the Guyana Gold and Diamond Miners Association called on miners to meet and exceed 2009’s target of 300 000 plus ounces of gold. At a going price of US$1100 per ounce, gold gives miners US$300 million at an exchange rate of Guy$200 to US$1. Even at the lowest gold price of the year of approximately US$900 per ounce, the figure is US$270 million. Statistics show that over 100 000 workers are employed in gold mining in Guyana. If the gold board operates at a 1 per cent profit margin, its profits will be between US$2.7 million. At 5 per cent the profit margin will be between US$13.5 million and US$16.5 million. In essence, the Guyana Gold Board must make a profit of at least US$2.7 million, assuming that it is at least one per cent profitable, which it must be, and can potentially make as much as US$49.5 million on gold alone. The industry may be seen as “too big to fail”. Guyana with a population of 700 000 has, over the years, been seen as having the potential to be the “breadbasket” of the region. For some time the government has been eager to develop agriculture and has been working to attract agriculture investors by making very moderately priced land available to interested national and regional investors. Long-term lease holders of some 28 000 hectares of land in the intermediate savannah are seeking regional and international investors to collaborate in developing the
land for agriculture. To this end, the lease holders will be expected to submit a master plan, which will include exotic fruit and vegetable farming, nurseries, processing and livestock rearing among other areas. Currently, approximately 12 large lease holders and 45 small farmers are benefiting from the land and producing for the domestic market. These farmers are already in discussions with some potential joint venture partners for citrus growing and processing, but the size of the overall project allows for partners in a range of other areas. Meanwhile, Jerlon Pork Products Inc. wants to engage in discussions on its business plan for growing its pork and pork products production plant. It hopes to fill the unmet local demand for pork which exceeds supply by some 35-40 per cent. This is a fairly young company, which aims to be the foremost producer of pork products in Guyana, using state of the art equipment. According to a news report Barbadian businessman, Sir Kyffin Simpson, made a major investment in the agricultural sector in Guyana. During the last Barbados Labour Party administration, Mia Mottley had challenged enterprising Barbadians to inject funds into Guyana’s agricultural sector. The forestry sector in Guyana is another area which has the potential to contribute significantly to that country’s Gross Domestic Product. It has been estimated that about 65,000sqm or more than 75 per cent of Guyana’s land is forested. Some 13.58 million hectares of the country’s total forest area lie within the gazetted State Forest boundaries, where all commercial timber exploitation occurs. There have, however, been excisions from this block of land for Amerindian communities, the Iwokrama Rain Forest Reserve and mining leases. The country’s forest resources can play
an important role in transforming and developing the relatively uninhabited hinterland of Guyana. This is especially so because the forest industry sector possesses characteristics, which are capable of providing much of the economic stimulus that Guyana requires at this stage of its development. In 1999, a survey had shown that there were 85 active sawmills, 70 of which were old, inefficient and required heavy recapitalisation. During this period a vibrant joinery industry had sprung up in the forestry sector with the country boasting 90 such establishments. In recent years, there has been growing interest in the export of furniture and mill work to the Caribbean, Europe and the United States. It is worthy to note that important investments have been made in equipment, technology and training to ensure the accurate and proper finishing of furniture and furniture components. Furniture and millwork exports represent one of the most exciting possibilities for investments in the forestry sector. Since adopting the capitalist mode of production, China had expressed an interest in buying large tracts of rainforest in Guyana just as it had done with mineral reserves in Africa, to satisfy its ever expanding market. Back in Barbados, innovations are expected to come on stream soon with the creation of a sugar cane industry. With an investment of over $300 million at the Andrews Sugar Factory in St. Joseph, the Barbadian government hopes to develop a sugar cane industry, which will produce ethanol as an alternative source of energy. Government continues to encourage homeowners to install photovoltaic panels in their homes to produce electricity. Some of the excess electricity generated by homeowners can be sold to the national grid. Meanwhile, at a recent panel discussion, Dean of the Faculty of Social Sciences at the Cave Hill Campus, Dr. Justin Robinson, suggested
that the private sector should enhance its level of sophistication and be more innovative. He further suggested that many of the improvements that can improve the quality of service offered to customers can be introduced without a heavy outlay of capital. For example he argued that the time taken to establish a business could be significantly reduced and Customs procedures can be also drastically reduced. Speaking at the same panel discussion, economist, Jeremy Stephens suggested that even while Barbados should “rubbish” the idea of creating another Silicon Valley in Barbados, there are numerous opportunities opened to Barbadians to benefit from the new technological advances. He further suggested to government that with the expansion of the Panama Canal scheduled to be completed this year, Barbados should follow the lead set by Jamaica on Goat Islands and Trinidad and Tobago and establish Barbados as a transshipment hub and a free-port. It should be pellucidly clear that even though regional governments were buffeted by turbulent winds of the current recession, regional governments were putting plans in place to pull themselves up by their bootstraps and enhance the lives of their people. All of the initiatives identified above can create jobs for the region’s people. Even though at this time Barbados continues to record one of the lowest levels of economic growth in the region, it must be remembered that the American economist, Walt Rostow, had identified five stages of development of a country which would most likely place Barbados at the fifth stage of development, the age of high mass consumption even though we are still a developing country.
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