QUARTERLY P R O F I T December 2016
Volume IV Issue I
CONTENTS
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Letter from the Editor Welcome Week A Game of Luck Canadian Foreign Direct Investment: A Case Study A Minor Inconvenience Make or Break Of Televisions & Telephones
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Dec 2016 | Volume IV, Issue I
Dear DeGroote Family,
EDITOR IN CHIEF Anduena Sertolli
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MANAGING EDITORS Nick McFarlane, Miranda Neal
CREATIVE DIRECTOR Caroline Egan DESIGNERS Nicholas Chui, Mercy Liu, Emily Xuan MARKETING DIRECTOR Alexandra Foote
The Quarterly Profit has been and continues to be a brilliant showcase of the talent and dedication that is present here at DeGroote. It is a magazine created by DeGroote students for DeGroote students. And just like every student at McMaster, we are constantly growing as a team and as a publication. We are excited to see where this school year takes us!
DIRECTOR OF OPERATIONS Rohan Bhatia
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PHOTOJOURNALIST Ashley Javier Contact us: magazine@degrootecommerce.ca Visit us online: http://issuu.com/quarterlyprofit DISCLAIMER // All photos or logos used without sourcing are used in compliance with the Fair Use Law – for not-forprofit educational purposes. In no way do we assume owndership or affiliation with any images seen. If there are any questions or concerns, please contact us: magazine@degrootecommerce.ca http://copyright.mcmaster.ca/Fair_ Dealing
his year, I am immensely pleased and humbled to introduce myself as the Editor-in-Chief of the Quarterly Profit. My name is Anduena Sertolli. I started as a designer for the magazine during my first year at McMaster and have always felt that even in my small role, I was a valued team member and had some voice in the direction of QP. I’m eternally grateful to my personal mentors for pushing me to get involved right from the beginning. It is never too late, of course. There is untapped potential in every DeGroote student! I absolutely encourage all of you to get involved in any capacity as it will allow you to take your studies and personal interests further; it will open more doors of opportunity that will only help you develop and continue to move forward. The Quarterly Profit was created to showcase our learnings within and outside of the classroom, as well as offer a creative outlet for the students of DeGroote! And with that, we hope that you gain a new perspective with each and every article you read. Thank you to everyone who made Volume IV, Issue I possible. While this is a shorter issue, you have much to look forward to in the new year. I wish you all the best of luck this exam season and we will talk to you again soon. We hope you enjoy this issue of QP! Sincerely, Anduena Sertolli, Editor-in-Chief
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LETTER FROM THE EDITOR
WRITERS Colin Bilik, Joseph Cruz, Marryiam Khan, Krishna C. Nadella, Matthew Parliament
f you already know the Quarterly Profit, hello again. If not, we welcome you! The first installment of QP, Volume IV, has been curated to get you reacquainted with our publication and to give you something to quickly flip through on your study breaks, especially during this hectic season. The content for this issue was generated through a “call for submission,” allowing for a collection of diverse perspectives. Topics range from a case study on the Canadian Foreign Direct Investment, an opinion piece on the value of pursuing a minor, to a timely article by former editor, Joseph Cruz, outlining a valuable list of study tips!
W ELCOME W E E K 2 0 1 6
Photographs by Sushen Talwar instagram :@sushenphotography website :sushenphotography.com
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By Colin Bilik
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hy have certain companies, like Apple, Walmart, and Nike, surpassed competition and become leaders in their industry? What caused them to rise above the rest? On the surface the answer is simple, a great strategy executed by an even greater CEO. But, what makes a leader of a company great?
Edinburgh. The experiment involved asking volunteers whether they believed they were lucky, or the opposite. They were then asked to search through a newspaper and tell him how many images were included within. On average, the self-declared “unlucky” people took about two minutes to count the photographs, whereas the lucky people took mere seconds. This is because the second page of the newspaper contained the message, “Stop counting, there are 43 photographs in this newspaper”, written in type that was over two inches high. Wiseman’s conclusion was that people who considered themselves lucky are simply more welcoming of ambiguous situations and therefore can realize and capitalize on opportunities not blatantly displayed.
According to Jim Collins, the author of Good to Great, superb leaders are people who are humble, calm, have a desire to further their knowledge, are approachable, decisive, and take into account the needs of their stakeholders. Nothing new. More interestingly however, when lower ranked leaders were asked about why they have not succeeded to the same extent, they were quick to blame external factors. Meanwhile, when leaders with prominent success were asked how they were able to achieve such great outcomes, the common response was that they considered themselves lucky.
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here is a parable mentioned in Good to Great regarding a hedgehog and a fox that further pertains to the luck of individuals, as well as businesses. In the parable, the fox uses a variety of strategies to outwit the hedgehog, but to no avail. The hedgehog defends itself perfectly every time by curling into a ball. The fox translates to individuals and businesses that pursue many goals and interests at once. This leaves them spread too thin, disallowing for the maximization of their core competencies, and in turn, continuously coming up short. The hedgehog however, is able to simplify their world to focus on one end goal, only heading in one direction. It is easy to label companies that act like a fox as unlucky, but in reality their management is to blame. Bad luck is a perceived end product of a series of bad habits and thought processes that constrict the behaviours that would
“LOWER RANKED LEADERS... WERE QUICK TO BLAME EXTERNAL FACTORS” Tony Hsieh, founder of Zappos, commented on luck by stating that his company asks potential employees how lucky they believe they are in life, on a scale of one to ten. “...Luck is really more about being open to opportunity beyond just how the task or situation presents itself,” he added. Supporting this statement is an experiment that was conducted by Richard Wiseman, Professor at the University of 9
otherwise allow opportunities.
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seizing
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on an arbitrage opportunity within the Asian shoe market and the American economy. When most would have taken a quality grade and moved on, Knight decided to travel to Asia in order to test his theory. He did this by approaching Tiger Co., an athletic shoe manufacturer. He returned with 200 pairs of shoes to start, and quickly grew to over 3 million in sales within ten years, shortly before Tiger Co. realized they no longer needed Knight as an intermediary. Knight could have, once again, accepted a “job well done”, but instead he quickly, and poorly, developed a shoe to showcase at an upcoming roadshow. At the show, Knight recalls being tremendously nervous and disappointed due to the lack of quality in the shoe but he still took the challenge head on. He ended
“BAD LUCK IS A
PERCEIVED END PRODUCT OF A SERIES OF BAD HABITS”
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his theory most definitely applies to companies and their founders in their early years; when a company is most vulnerable to which decisions it chooses to make. Using Nike as an example, founder Phil Knight, while studying at Stanford, wrote a paper
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up securing deals with every single one of his wholesalers he had dealt with while selling Tiger Co. shoes. Astonishingly, each wholesaler admitted the shoes were of poor quality but valued the trust and mutual respect Knight had worked years to establish. Because of this, each of them took a chance on him.
needed them more than they needed him. growing a business. One who moves wholeheartedly towards any goal, no matter the size, by making sure no steps are skipped, is someone who will surely grow from good to great. Luck is a blanket term coming from someone on the outside of their own, or someone else’s, success; someone who, in the current moment, is not ensuring each brick is laid perfectly but is either looking back, or looking in on the process of building something successful. If you want to succeed, make sure you can earn the right to be labeled lucky.
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hat a lucky man to come out on top in this story, right? No, more credit is due than simple luck. Knight followed his intuition, worked uncompromisingly hard towards his goal, and most importantly took the time to ensure he was building valuable relationships. If there was a single factor solidifying Nike’s early success, it is not difficult to determine that it came down to treating the customer prop-
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Canadian Foreign Direct Investment: A Case Study By Marriyam Khan
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ith 2016 coming to an end, there is much to say in retrospect of the last decade and a half. Our world has transformed in terms of infrastructure, generational attitudes and social norms. Yet, some things are still the same.
the past 45 years and during that time Canada has owned more that it owes. According to academic literature, there are four key reasons why Canada has invested so much in other countries.
Big Perks
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nvesting in companies overseas allows Canada to profit from the revenues of companies with a much larger market share and customer base. Canadian companies also choose to set up foreign subsidiaries in order to attract a larger market share abroad. In this regard, FDI works wonderfully as an expansion strategy for multinational companies.
Business is as ruthless as ever. It’s still about being Harder, Better, Faster, Stronger. To these standards, I would also like to add Further. Today, companies are going as far as they can in terms of their influence and market size. One of the most strategic elements that companies use to go further is Foreign Direct Investment (FDI). In its purest form, FDI is financial investment in a foreign country using funds from the investor’s home nation.
Currency Appreciation
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anada’s currency has recently appreciated against other economies, especially those still considered to be in a developing stage. Having an appreciated currency has given Canada
Canada’s Role in FDI
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n an international scale, Canada has been a leader in FDI for 12
greater money supply to invest abroad, buy out foreign companies, take on merger deals with multinationals and funnel out Canadian Dollars into FDI.
continents with the hope of improving their global market share position moving forward.
Looking at the Bigger Picture
Building Bridges
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nvesting overseas allows Canada to build strong trade partnerships with countries around the world. Many of these partnerships are formed by Canadian and foreign multinationals, which have increased Canada’s imports of raw materials. Working capital generated from these relationships has ultimately allowed Canada to expand their FDI portfolio.
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ccording to the World Investment Report (2016), Global FDI flows are expected to decline by 10%-15% in 2016. Yet, these flows are expected to pick right back up by late 2017. This is the same timeline suggested for the world economy’s full recovery from the 2008 crisis.
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anada’s future role in global FDI spending is uncertain, however, using the past as a proxy for the future, Canada will likely continue to diversify their portfolio in international markets.
Developing a Competitive Streak
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erhaps one of the most important reasons why Canada invests abroad is to stay relevant. There is no denying the increased economic activity in Asia and Africa. These economic advances are moving ahead in equal parts through the forces of globalization and technology advances. To keep pace, Canada has increasingly invested in profitable ventures in these 13
A MINOR
INCONV ENIENCE By Matthew Parliament
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m always surprised by the number of commerce students that I hear complaining about how they have to take a first year course this term, because they have to take an elective. These are usually the same people looking for a “bird course” because they want something to fulfill the sole purpose of boosting their academic average. They feel that the Commerce program shouldn’t have any non-Commerce electives in it, and should be focused solely on Commerce- related course work. I’m shocked that none of these people have taken, or considered, minors. I’ve spoken with several of these students, and they believe that a minor is an inconvenience. They have to take non-commerce work, and it doesn’t really help them in the long run. What these people are overlooking, however, is the value that a minor holds. A minor, for most faculties, consists of a mere 24 units (8 courses) in a department, and typically has 1-4 required courses; with the remaining courses being any non-first year courses, sometimes from a specified list. A minor is easy to acquire, and it’s a great way to differentiate yourself from other students, increase your average, diversify your focus, build your skillset, or to simply explore a subject that you’re interested in.
n a job interview, your minor can indicate skills that will set you apart from your competitors. For example, a philosophy minor would imply that you have advanced critical thinking skills, a math minor would suggest advanced problem solving, a psychology minor indicates higher analytic abilities, and so on and so forth. These are all skills that employers value in potential employees, and they make you stand out from the other candidates applying for the same position.
“INDICATE SKILLS THAT WILL SET YOU APART” How can a minor increase your average? Well that’s simple, if you’re specializing in a subject that you’re interested in, then you’re far more likely to succeed because of that interest. In addition, there are increasing returns when focusing in one area. This stems from a learning curve. The more that you learn about a subject, the easier it will be to perform well in that subject in the future.
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f you’re like me, then when you applied to university you had two or more subjects that you were interested in, and you had to make a difficult decision. A minor is a great way to have the best of both worlds, as you can still explore your second choice by minoring in it. Additionally, should you change your mind after you complete your undergrad, you’re still able to pursue a masters degree in a subject that you’ve minored in.
“WHAT THESE PEOPLE ARE OVERLOOKING, IS THE VALUE A MINOR HOLDS” 15
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ut maybe you’re not like me. Maybe, you’re an artist. Perhaps you struggled with choosing your major, and you’re unsure if Commerce was the right fit for you. That’s okay too. If this is your situation, then a minor is an excellent way to still maintain your creative side and pursue both of your passions; without closing any doors in the future.
you want every course that you take to mean something to you, and you want your minor to be related to your focus. Why not consider an economics minor? As Commerce students, we already have three required economics courses. In fact, you’ve already completed 37.5% of your minor by the end of your second year - possibly more if you’ve taken any elective finance courses; as some of these courses are cross-listed with the Economics if pursuing a CPA designation. Economics department. That’s a sensible and efficient way to differentiate yourself; all you would have to do is take an additional five economics courses. Not a bad deal, right?
Maybe you’re not either of these things, maybe you’re in finance or accounting. These two areas of focus have a plethora of Commerce electives in them, and accounting even has specific courses that have to be taken if pursuing a CPA designation. In that case, 16
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aybe you’re none of these things. Maybe you have your heart set on business and when you graduate you want to complete your MBA as soon as possible and join the workforce. That’s fine too. In that case, a minor is useful as well. Graduate schools typically look at the last two years of your undergrad when evaluating your average, and they generally don’t like to see a plethora of first year courses in your third and fourth years. If you’re pursuing a minor, then chances are you have 2-4 third or fourth year courses in that subject area that can fill your elective slots. This will only serve to enhance your application, as you have a more diversified back-
ground and your electives aren’t all unrelated first year courses that you took for the sole purpose of receiving a 12.
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o, while it’s just my opinion, I sincerely believe that as university students, we should at least consider the option of pursuing a minor; trust me when I say that its worth the inconvenience. Sincerely, A Philosophy minor.
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Make or Break
Tips on How to Make Exams Work for You By Joseph Cruz 18
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o that dreaded time of year has come again. Before we can even begin to look forward to our vacation period and get into the holiday spirit, we must first endure the stress, sleepless nights and cram sessions that the end-of-term usually brings. It’s during this time of year that majority of us are saturated with final group presentations, assignments and last minute tests and quizzes. Not only that, the “threat” of exams loom right in front of us. We’re at the period of the semester that I colloquially refer to as the make it or break it point.
Map Out a Study Schedule and Create Weekly Goals
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ake the time to sit down and map out a daily study schedule with time allocations and daily or weekly study goals. I find that setting small, attainable goals are much easier to follow through and a lot less overwhelming. It also forces you to prioritize specific sections or chapters of the course material, as well as give you a realistic timeline so you can determine the optimal amount of time you can spend on each section. Furthermore, by identifying daily or weekly goals, you are able to track your progress and hold yourself accountable.
The reason why I refer to this time period in such a way is because during the next few weeks, everything that we’ve learned and worked so hard for is literally put to the test, culminating to that dreadful 2 to 3 hours of grueling final examination. From this point forward, much of what we’ll do (or choose not to do) will either help us achieve or make us fall short of the goals that we’ve set for ourselves at the beginning of the term. And so the next few weeks, play a key role in determining what our end result for this semester will be.
Create a Cheat Sheet
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used to write down almost every detail I deemed important whenever I did my readings and so a task that should take an hour of my time would end up taking two or three hours instead. What I’ve found very effective is limiting my reading notes to a sheet of 8.5 by 11 paper. Thanks to Commerce 3FA3, I discovered a much more efficient (and environmentally friendly) way to write my reading notes. I find that using this method forces you to filter and categorize the material according to its importance and overall relevance. It’s also an effective way to better understand and retain the information since by limiting yourself to one sheet of paper, you have no other option other than to summarize and be brief. Obviously this cheat sheet is strictly for the purpose of studying only.
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nd so as we enter the last stretch of the term and get into the hustle and bustle that comes with exam preparation, I think that it is only fitting to provide you with some study tips that would hopefully help make the next few weeks a little bit more enjoyable and a lot less stressful. Most of which are things that I personally do and have found quite effective while some are gleaned from friends and peers who I would describe as stellar students and high achievers.
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this technique. The application allows you to set the length of study time and breaks that is ideal for you. It proposes intervals of 30 minutes composed of 25 minutes of studying and 5 minutes of break time. What I love about this application is that it takes studying a step further and actually provides you a detailed report of how much time you’ve spent studying or working on a specific course or task. Not only do you get a sense of satisfaction and accomplishment when you see the exact total number of hours you’ve spent being productive but it also allows you to assess how effective you
Study Smarter Not Harder
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ver the many years that I’ve been at McMaster, I’ve realized that it’s not so much about completing every assigned reading and doing every practice question. During my first two years of university my approach to studying for exams was to go over each chapter thoroughly and do (and re-do) every practice question. It took me a long time to change my ways but what I now realize is that using this method is nothing but a stressful way of setting yourself up for failure. As students, we need to learn how to accept and let go and take a more realistic and balanced approach when it comes to studying. So before you open your textbook or come up with your study plan, take the time to look at the syllabus to remind you of the “big picture” of the course so that you can easily identify and prioritize areas that you actually need to study or review in great detail.
Orange Time (Pomodoro Technique)
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m sure most of you can relate when I say that the biggest struggle I have during exam season is being able to focus for a long period of time. It was only recently that I adapted the Pomodoro Technique, a time management technique that makes long study periods a bit more bearable as it allows for short, scheduled breaks in between. I currently use a smartphone application called Orange Time which is based on
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here are so many things that I considered including in this list but I think the ones outlined above offer the most help especially in preparing for exams. I hope that this article does serve a purpose and make the next few weeks a little bit easier for you and that you achieve the academic goals that you’ve set for yourself back in September. I wish you all the best and I hope that we all make it through the upcoming exam season! Good luck DeGroote!
are in allocating and using your time.
Quizlet
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his is another smartphone application that I have only discovered very recently through a good friend. What’s great about this application is that it is more than just a way to create custom, digitized flashcards but also allows users to test their knowledge through timed quizzes. It’s especially useful for courses with significant amounts of content and theory and that require memorization.
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Of Televisions & Telephones By Krishna C. Nadella
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s Rod Serling of ‘The Twilight Zone’ used to say, for your consideration the following photo: The Time: Mid-1980s The City: Brantford, Ontario, Canada The Place: Bell Homestead The People (from left to right): Dr. Malcom Baird, Dr. Venkata Nadella (my father) & Mrs. Annapurna Nadella (my mother)
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o the casual viewer, it looks like nothing more than a personal photo but there’s a story to be told that leads to present day. Bell Homestead was the first North American home of Professor Alexander Melville Bell and his family, including his last surviving son, scientist Alexander Graham Bell. For those who are not aware, Alexander Graham Bell invented the telephone at the Homestead in July 1874.
“IT REPRESENTED... THE COMING OF TWO WORLDS: TELEVISIONS AND TELEPHONES”
in some small way, the coming of two worlds: Televisions and Telephones.
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rowing up, I had the privilege of getting to personally know Dr. Malcolm Baird. Aside from being an accomplished Professor in the Department of Chemical Engineering at my alma mater, McMaster University (Go Marauders!), for over a quarter-century he was also my father’s boss and research partner and more importantly, to this very day, a dear friend. ‘Dr. Baird’ as he was referred to by my father, was very knowledgeable of his own father’s accomplishments and even
Dr. Malcolm Baird was the son of John Logie Baird, one of the inventors of the mechanical television and inventor of both the first publicly demonstrated colour television system and the first purely electronic colour television picture tube. Through his company, the Baird Television Development Company, he also achieved the first transatlantic television transmission in 1928. As such, this photo always had tremendous personal meaning for me as it represented 23
co-authored the book, ‘John Logie Baird: a life’ of which my family has a personally signed copy. Through him I became aware of the impact his father had on the world at large and on myself personally as a young boy addicted to Saturday-morning cartoons and sporting events. What always fascinated me was that I was one degree of separation from one of the world’s greatest inventors. In my personal Mount Rushmore of the world’s most influential inventors, it was always John Logie Baird, Thomas Edison, Albert Einstein and Alexander Graham Bell. Speaking of which…
Company, better known as AT&T.
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ast forward to present day and the marriage between televisions and telephones is as natural as Peyton Manning and product endorsements. In fact, it wasn’t too long that ago that Mr. Manning starred in the hilarious ‘Football on your Phone’ commercial, essentially consummating the marriage to the delight of everyone when he posed the question, “What do you think Alexander Graham Bell would say if he saw you watching football on your phone?”
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ll jokes aside, it really is quite amazing to see how far these two worlds have come along and more importantly, come together. Our industry is rapidly changing…some would say evolving and it is imperative that we
“I WAS ONE DEGREE
OF SEPARATION FROM ONE OF THE WORLD’S GREATEST INVENTORS”
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s a proud Canadian raised in the city of Hamilton, Ontario, I was acutely aware of the city of Brantford for two distinct reasons…or should I say, people. The first was Wayne Gretzky, the greatest hockey player of all time and my boyhood idol. Winner of 4 Stanley Cups, owner of 61 NHL scoring records and most importantly, a national hero. To this day I always tell my wife that a signed Wayne Gretzky rookie card would make a great birthday gift… hint, hint, hint! The second person was Alexander Graham Bell. From an early age, I was made aware of who he was, what he invented and its impact from the Bell System, led by the Bell Telephone Company - better known as ‘Ma Bell’ to the subsequent ‘Baby Bells’ and the American Telephone & Telegraph
Peyton Manning paired up with his brother Eli in DIRECTV’s comedic 2013 advertisement titled “Football on Your Phone”.
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John Logie Baird, Dr. Malcolm Baird’s father, was a Scottish engineer and inventor of the world’s first practical, publicly demonstrated television system, and the first fully electronic colour television tube.
be mindful of the immortal words of another great Canadian, Marshall McLuhan, “The Medium is the Message”. Be it televisions, telephones or any other tools that are used to store and deliver data or information, the Medium will always have a symbiotic relationship with how a message is perceived.
photo became a reality and your two worlds became one.
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n a personal level, I consider myself fortunate to live in a time where I can watch my own show, STATE OF MIND, on my television and/or my phone. It’s allowed us as a production to grow our audience, increase our brand recognition and build our following as we enter our third season. So to the both of you Mr. Baird and Mr. Bell, I tip my hat and say thank you. That little boy from Canada will always appreciate the impact the two of you had and I’m glad that the foreshadowing of that
-Krishna C. Nadella is the Host & Producer of ‘STATE OF MIND with Krishna C. Nadella’
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