TCR Volume 3 Number 17

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Singapore is a very blessed nation to have had your leadership in her formation years and your watchful guidance for so many decades now. ‌ You are irreplaceable.

Lee Kuan Yew has expressed a wish that when it is time for him to go that it will be a peaceful and painless death. But if one believes in karma, retribution has way of exacting justice ...

~ Lee Kuan Yew admirer Camy as the nation’s founding father turned 90 9ROXPH ‡ 1XPEHU

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For the next ƟŵĞ LJŽƵ ŶĞĞĚ to convince ƐŽŵĞŽŶĞ ƚŽ ƋƵŝƚ͘ dŚŝƐ ĞĚŝƟŽŶ͛Ɛ ^ƵƉĞƌŐƌĂƉŚŝĐ ĐŽŵĞƐ ĨƌŽŵ ƚŚĞ Daily /ŶĨŽŐƌĂƉŚŝĐ, which ĨŽƵŶĚ Ă ,ƵĸŶŐƚŽŶ WŽƐƚ h< ŝŶĨŽŐƌĂƉŚŝĐ ŚŝŐŚůŝŐŚƟŶŐ ƚŚĞ ďĞŶĞĮƚƐ ƚŽ ƐŵŽŬĞƌƐ͛ ŚĞĂůƚŚ ǁŚĞŶ ƚŚĞLJ ƋƵŝƚ ƐŵŽŬŝŶŐ͘ dŚĞ ŝŶĨŽŐƌĂƉŚŝĐ ǁĂƐ ĂƉƉĂƌĞŶƚůLJ ĚĞǀĞůŽƉĞĚ ŝŶ ĂĚǀĂŶĐĞ ŽĨ WƵďůŝĐ ,ĞĂůƚŚ ŶŐůĂŶĚ͛Ɛ ŵŽŶƚŚͲ ůŽŶŐ ^ƚŽƉƚŽďĞƌ ĐĂŵƉĂŝŐŶ͕ ǁŚĞƌĞ ƐŵŽŬĞƌƐ ĂƌĞ ĞŶĐŽƵƌĂŐĞĚ ƚŽ ƐŝŐŶ ƵƉ ƚŽ ƋƵŝƚ ƐŵŽŬŝŶŐ ĨŽƌ ƚŚĞ ŵŽŶƚŚ͘ dŚĞ ŚĞĂůƚŚ ďĞŶĞĮƚƐ ĐĂŶ ďĞ ĨĞůƚ ǁŝƚŚŝŶ ϮϬ ŵŝŶƵƚĞƐ͕ ĂŶĚ ŐŽ ŽŶ ĨƌŽŵ ƚŚĞƌĞ͕ ĂĐĐŽƌĚŝŶŐ ƚŽ ŵĞĚŝĐĂů ŽďƐĞƌǀĂƟŽŶƐ ŐůĞĂŶĞĚ ĨƌŽŵ ^ƚĂŶĨŽƌĚ hŶŝǀĞƌƐŝƚLJ͛Ɛ ŽǁŶ ĂŶƟͲƐŵŽŬŝŶŐ ƐŝƚĞ͘ Credit: Daily Infographic and 5IF )VGmOHUPO 1PTU 6,, “Stoptober: What Happens to Your Body When You Stop Smoking,” Sept. 20, 2013.

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Are these disruptive personalities to identify and get the most killing your business? How out of your motley crew of comrades By Marishka Noelle M. Cabrera The Pessimist The Overachiever

The Underachiever

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TECHNOLOGY

BUSINESS

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ARE THESE DISRUPTIVE PERSONALITIES KILLING YOUR BUSINESS?

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STRATEGY POINTS Certain workplace behavior by employees can affect a team’s performance and poison the atmosphere of an organization Traits such as narcissism, pessimism, over- and underachievement, and bullying can be spotted in an organization by managers who are keen at observing and listening to their employees Disruptive behavior can be addressed through communication and clarity of expectations

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TECHNOLOGY

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ARE THESE DISRUPTIVE PERSONALITIES KILLING YOUR BUSINESS?

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ƌĂŝŶ ĚĞĂĚ ĂŝŶ͛ƚ͕ ĂŌĞƌ Ăůů͘ EĞǁƐ ĂŐŐƌĞŐĂƚŽƌ EĞǁƐĞƌ͕ ŝŶ Ă ^ĞƉƚ͘ ϮϮ ĂƌƟĐůĞ, discusses a >ŽƐ ŶŐĞůĞƐ dŝŵĞƐ ƌĞƉŽƌƚ ŽŶ ĮŶĚŝŶŐƐ ƚŚĂƚ ƚŚĞ ďƌĂŝŶ ŝƐ ƐƟůů ĐĂƉĂďůĞ ŽĨ ƌĞŐŝƐƚĞƌŝŶŐ ĞůĞĐƚƌŽĞŶĐĞƉŚĂůŽŐƌĂŵ ; 'Ϳ ĂĐƟǀŝƚLJ ĞǀĞŶ ĂŌĞƌ ďĞŝŶŐ ƐŚŽǁŶ ƚŽ ďĞ ŇĂƚͲůŝŶŝŶŐ͕ ƚŚĞ ĐŽŶǀĞŶƟŽŶĂů ĚĞĮŶŝƟŽŶ ŽĨ ďƌĂŝŶ ĚĞĂƚŚ͘ ŌĞƌ ďƌĂŝŶ ĂĐƟǀŝƚLJ ǁĂƐ ĚĞƚĞĐƚĞĚ ŝŶ Ă ŚƵŵĂŶ ďƌĂŝŶ ŽĨ Ă ĐŽŵĂƚŽƐĞ ƉĂƟĞŶƚ ǁŚŽ ǁĂƐ ƉƵƚ ŝŶ Ă ĚĞĞƉĞƌ ĐŽŵĂ͕ ĂŶ ĞdžƉĞƌŝŵĞŶƚ ǁĂƐ ƉĞƌĨŽƌŵĞĚ ďLJ ƉƵƫŶŐ Ϯϲ ĐĂƚƐ ƵŶĚĞƌ ŚĞĂǀLJ ĂŶĂĞƐƚŚĞƐŝĂ͕ ĂŶĚ ƚŚĞ ƌĞƐƵůƚƐ ǁĞƌĞ ƌĞƉůŝĐĂƚĞĚ͘ dŚĞ ƐƚƵĚLJ ĂŶĚ ĮŶĚŝŶŐƐ were ƉƵďůŝƐŚĞĚ ^ĞƉƚ͘ ϭϴ ŝŶ W>K^ KE ͘ dŚĞ ĂƌƟĐůĞ ĚŽĞƐ ĞdžƉůĂŝŶ ƚŚĂƚ ǁŚŝůĞ ƚŚĞ ĮŶĚŝŶŐ ĂƉƉůŝĞƐ ƚŽ ŚĞĂůƚŚLJ ďƌĂŝŶƐ ƉƵƚ ŝŶ ŵĞĚŝĐĂůůLJ ŝŶĚƵĐĞĚ ĐŽŵĂƐ͕ ĂŶĚ ŶŽƚ ŶĞĐĞƐƐĂƌŝůLJ ƚŽ ƉĂƟĞŶƚƐ ǁŝƚŚ ƐĞǀĞƌĞ ďƌĂŝŶ ĚĂŵĂŐĞ͕ ƚŚĞ ĮŶĚŝŶŐ ĐŽƵůĚ ĂůůŽǁ ĚŽĐƚŽƌƐ ƚŽ ŝŶĚƵĐĞ Ă ĚĞĞƉ ĐŽŵĂ ƚŽ ƉƌŽƚĞĐƚ ƚŚĞ ďƌĂŝŶ ĨƌŽŵ ĂƚƌŽƉŚLJŝŶŐ͘

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TECHNOLOGY

$PNCJOJOH #SJDLT BOE $MJDLT 5FDIOPMPHZ 3FTIBQFT UIF 3FUBJM #VTJOFTT The future of retail sales lies increasingly in joining a physical sales outlet with online interactivity By Pia Rufino

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TECHNOLOGY

BUSINESS

ENVIRONMENT

COMBINING BRICKS AND CLICKS: TECHNOLOGY RESHAPES THE RETAIL BUSINESS

POINT & CLICK Access online research via your Internet connection by clicking pictures, graphics, and words in blue

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Lessons from the Playbooks of Asian Conglomerates

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What small and medium enterprises can learn from the giants

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By Jerome Balinton

From small noodle house to a huge empire. Â

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STRATEGY POINTS Asian conglomerates’ strategies to stay competitive fall under value-chain expansion, category expansion into adjacent businesses, and new business entry Quest for global expansion should be focused initially on smaller economies, then ODUJHU UDSLG JURZWK PDUNHWV DQG ÀQDOO\ RQ developed markets

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-* 6XPPLW +ROGLQJV LV OHG E\ WKH IDPLO\ RI WDLSDQ -RKQ *RNRQJZHL ,Q D VSHHFK DW WKH &ROXPELD %XVLQHVV 6FKRRO 3DQ $VLDQ UHXQLRQ LQ 2FWREHU *RNRQJZHL VDLG WKDW KH VWDUWHG ZRUNLQJ DW WKH DJH RI VHOOLQJ VRDS FDQGOHV DQG WKUHDG D VPDOO VWDOO DW WKH &HEX &LW\ PDUNHW ³0\ VPDOO WUDGLQJ EXVLQHVV JUHZ LQWR D YLEUDQW WUDGH EHWZHHQ P\ KRPHWRZQ LQ &HEX DQG 0DQLOD (YHQWXDOO\ WKURXJK KDUG ZRUN IUXJDOLW\ DQG WKH KHOS RI DOO P\ VLEOLQJV ZH H[SDQGHG WKLV WR WUDGLQJ EHWZHHQ WKH 3KLOLSSLQHV DQG WKH 8QLWHG 6WDWHV ´ *RNRQJZHL VDLG

TECHNOLOGY

BUSINESS

ENVIRONMENT

LESSONS FROM THE PLAYBOOKS OF ASIAN CONGLOMERATES

POINT & CLICK Access online research via your Internet connection by clicking pictures, graphics, and words in blue $FFRUGLQJ WR *RNRQJZHL WKHLU HQWUHSUHQHXULDO GULYH DQG GHVLUH WR WKULYH JRW WKHP LQWR PDQXIDFWXULQJ +H UHDOL]HG WKDW WKH\ ZRXOG QRW JURZ YHU\ PXFK MXVW LPSRUWLQJ JRRGV VR WKH\ VHW XS D FRUQVWDUFK PDQXIDFWXULQJ FRQFHUQ FDOOHG 8QLYHUVDO &RUQ 3URGXFWV ZKLFK HYHQWXDOO\ HYROYHG LQWR ZKDW LV QRZ -* +ROGLQJVÂś ODUJHVW SDQ $VLDQ EXVLQHVV 8QLYHUVDO 5RELQD &RUSRUDWLRQ

IRU FRPSDQLHV WKDW HQWHUHG DW OHDVW RQH QHZ EXVLQHVV RYHU WKH SHULRG ZH VWXGLHG ZDV D \HDU²PRUH WKDQ WZR WLPHV KLJKHU WKDQ WKH UHYHQXH JURZWK RI FRPSDQLHV WKDW GLGQœW ´ WKH\ UHSRUW +LUW HW DO QRWH WKDW QHDUO\ KDOI RI WKH EXVLQHVV HQWULHV PDGH E\ WRS $VLDQ FRQJORPHUDWHV IURP WR ZHUH XQUHODWHG WR WKH SDUHQW FRPSDQLHVœ H[LVWLQJ EXVLQHVV 6HH IROORZLQJ WDEOH

How the giants do business. ,Q D )HEUXDU\ DUWLFOH LQ 0F.LQVH\ 4XDUWHUO\ ³8QGHUVWDQGLQJ $VLDœV &RQJORPHUDWHV ´ DXWKRUV 0DUWLQ +LUW 6WHYHQ 6PLW DQG :RQVLN <RR SURYLGH LQVLJKWV RQ WKH VWULNLQJ

SHARE  OF  NEW  BUSINESS  BY  TYPE  FOR  CONGLOMERATES1  IN  CHINA,  INDIA,  AND  SOUTH  KOREA  FROM  2000-­2010

PRYHV RI $VLDœV FRQJORPHUDWHV WR VWD\ FRPSHWLWLYH $FFRUGLQJ WR WKH DUWLFOH WKHVH PRYHV QDPHO\ VWHSSLQJ RXW YDOXH FKDLQ H[SDQVLRQ DQG FDWHJRU\ H[SDQVLRQ LQWR DGMDFHQW EXVLQHVVHV VKRXOG EH DOVR EH XQGHUVWRRG E\ VPDOO SOD\HUV LI WKH\ ZDQW WR FRPSHWH ZLWK WKH JLDQWV +LUW HW DO ZULWH WKDW ³RYHU WKH SDVW GHFDGH > @ FRQJORPHUDWHV LQ 6RXWK .RUHD DFFRXQWHG IRU DERXW RI WKH ODUJHVW FRPSDQLHV E\ UHYHQXHV LQ ,QGLD WKH ¿JXUH LV D ZKRSSLQJ PHDQZKLOH &KLQDœV FRQJORPHUDWHV H[FOXGLQJ VWDWH RZQHG HQWHUSULVHV UHSUHVHQWHG DERXW RI LWV ODUJHVW FRPSDQLHV LQ XS IURP OHVV WKDQ D GHFDGH EHIRUH ´ $FFRUGLQJ WR WKHP DOO WKHVH FRPSDQLHV JHQHUDWHG VWURQJ WRS OLQH JURZWK DQ DYHUDJH RI D \HDU RYHU WKH SDVW GHFDGH IRU FRQJORPHUDWHV LQ &KLQD DQG ,QGLD DQG IRU WKRVH LQ 6RXWK .RUHD 6XFK JURZWK LV UHPDUNDEOH FRQVLGHULQJ WKH ODUJH VL]H RI WKH FRPSDQLHV LQYROYHG²DQ DYHUDJH RI ELOOLRQ LQ UHYHQXHV D GHFDGH DJR DQG ELOOLRQ LQ

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Category expansion into adjacent businesses: ‡ +DQMLQ .RUHDQ $LU H[SDQGV LQWR ORZ FRVW carrier businesses ‡ 7HQFHW H[SDQGV LQVWDQW PHVVDJH ,0 offering from personal to corporate service

29

Value-chain expansion: Downstream of upstream expansion from existing business ‡ +DLOLDQJ FRSSHU SURFHVVLQJ PDQXIDFWXULQJ H[WHQGV LQWR FRSSHU WUDGLQJ business ‡ 'RRVDQ FRQVWUXFWLRQ HTXLSPHQW PDQXIDFWXUHU H[SDQGV LQWR K\GUDXOLF HTXLSPHQW PDQXIDFWXULQJ D FRUH SDUW RI H[FDYDWRUV

49

Step-out: Totally new business, not linked to existing ones ‡ +DQZKD FKHPLFDOV DQG OHLVXUH H[SDQGV LQWR OLIH LQVXUDQFH EXVLQHVV E\ DFTXLULQJ ./, ‡ )RVXQ PLQLQJ DQG VWHHO HQWHUV PHGLD industry

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For the top 10-15 industrial conglomerates by 2011 UHYHQXHV LQ HDFK FRXQWU\ FRQJORPHUDWH LQ WRWDO H[FOXGHV VWDWH RZQHG HQWHUSULVHV DQG ÀQDQFLDO conglomerates.

Growth connected to new business entry. +LUW HW DO VD\ WKDW WKH VRXUFHV RI UHYHQXH JURZWK RI WKHVH FRQJORPHUDWHV DUH VWURQJO\ FRQQHFWHG ZLWK QHZ EXVLQHVV HQWU\ Âł7KH DYHUDJH UDWH RI UHYHQXH JURZWK

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Source: Companies investor-relations materials, annual reports, and Websites; Kisline; McKinsey analysis, as cited in “Understanding Asia’s Conglomerates� by Hirt, Smith, and Yoo (2013).

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Strategic expansion, with an ‘inside-out’ strategy. %XW LQ ³%H\RQG $VLD 6WUDWHJLHV WR VXSSRUW WKH TXHVW IRU JURZWK ´ JOREDO DFFRXQWLQJ JLDQW (UQVW <RXQJ QRWHV WKDW H[SDQVLRQ VKRXOG EH FDUULHG RXW VWUDWHJLFDOO\ 7HUPHG DV ³LQVLGH RXW´ VWUDWHJ\ E\ 3HWHU :LOOLDPVRQ 3URIHVVRU RI ,QWHUQDWLRQDO 0DQDJHPHQW DW WKH -XGJH %XVLQHVV 6FKRRO H[SDQVLRQ VKRXOG ³IRFXV LQLWLDOO\ RQ VPDOOHU DGMDFHQW HFRQRPLHV WKHQ ODUJHU UDSLG JURZWK PDUNHWV DQG ¿QDOO\ GHYHORSHG PDUNHWV ´ ³%\ VWDUWLQJ IURP WKHVH DGMDFHQW PDUNHWV ZKLFK ¿W WKHLU NQRZOHGJH DQG EXVLQHVV PRGHO EHWWHU WKH\ FDQ OHDUQ IURP H[SHULHQFH DQG WKHQ PRYH RQ WR ODUJHU UDSLG JURZWK PDUNHWV EHIRUH EHLQJ UHDG\ WR WDFNOH (XURSH DQG ¿QDOO\ WKH 8QLWHG 6WDWHV ´ (UQVW <RXQJ ZURWH $QRWKHU LPSRUWDQW WKLQJ WR FRQVLGHU WR VWD\ FRPSHWLWLYH LQ WKH PDUNHW LV WKH SDWWHUQ RI H[SDQVLRQ

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

EXPANSION PATTERNS OF ASIAN COMPANIES (2012-­2015)

Source: “Beyond Asia: Strategies to Support the Quest for Growth,” Ernst & Young, 2012

CONTENTS

MANAGEMENT

TECHNOLOGY

BUSINESS

ENVIRONMENT

LESSONS FROM THE PLAYBOOKS OF ASIAN CONGLOMERATES

How the ‘bamboo network’ nurtured the region’s behemoths 7KH &KLQHVH KDYH XQLTXH characters and abilities that make them succeed in their businesses, not only in China, but across Asia. In a 1998 piece, “The Bamboo Network: Asia’s Family-run Conglomeratesâ€? posted in Strategy+Business website, author Murray Weidenbaum said that in Thailand, Malaysia, Indonesia, Taiwan, Singapore, Vietnam, the Philippines, and the Coastal Zone of China, a remarkable economic change is taking place led by overseas Chinese business families, or what could be called the bamboo network. In a more elaborate GHĂ€QLWLRQ RIIHUHG E\ 7KH )UHH Dictionary, ‘bamboo network’ means “a network of close-knit Chinese entrepreneurs with large corporate empires in southeast Asia.â€? “The successful ethnic Chinese business family controls dozens and dozens -- sometimes hundreds -- of interlocking, medium-sized businesses in IRXU Ă€YH RU PRUH FRXQWULHV 7KLV array of family relationships extends throughout Southeast Asia, where entrepreneurs, business executives, traders and Ă€QDQFLHUV RI &KLQHVH EDFNJURXQG are the major players in the local economies,â€? Weidenbaum wrote. A few examples of this bamboo network are the Salim Group IRUPHUO\ KHDGHG E\ /LHP 6LRH

/LRQJ DQG QRZ KHDGHG E\ $QWKRQ\ 6DOLP /LSSR *URXS FRQWUROOHG E\ Mochtar Riady, Kerry Group Ltd., FKDLUHG E\ 5REHUW .XRN /7* *URXS ,QF OHG E\ /XFLR 7DQ -* Summit led by the family of John *RNRQJZHL DQG 60 ,QYHVWPHQWV Corp., led by Henry Sy. The founders of these overseas Chinese businesses are a fascinating breed. They typically started with little wealth, building their family enterprises from scratch and working, saving, and reinvesting at prodigious rates, according to Weidenbaum. From petty traders and immigrant workers in the early half of the 20th century, the ‘overseas Chinese’ and their business Ă€UPV KDYH HPHUJHG DV RQH WKH most important economic forces in many Southeast Asian countries, according to Henry Wai-Chung Yeung in “The Internalization of Ethnic Chinese Business Firms from Southeast Asia: Strategies, Processes, and Competitive Advantage.â€? According to Weidenbaum, centralized family control minimizes company bureaucracy and paperwork -- and leaves a very modest paper trail for potential government investigators. Key information is related verbally and retained in the heads of the senior managers rather than in the WUHPHQGRXV Ă RRG RI SDSHUZRUN typical in Western business. Money

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is borrowed from family members or friends on trust. Transactions of great size are often dealt with by common understanding and a note jotted in a diary. Meanwhile, according to John Gokongwei’s speech mentioned in the introductory part of this piece, there are three evident characteristics or elements common among Asian conglomerates. $FFRUGLQJ WR KLP WKH Ă€UVW HOHPHQW of successful conglomerates is the ability to sustain the entrepreneurial passion of their founders. He said that common thread that he observed is that many Asian conglomerates were started by immigrants who engaged in business as a matter of survival. “Entrepreneurial skill was QRW DQ RSWLRQ LW ZDV D QHFHVVLW\ Âľ Gokongwei exclaimed. The second element of success that Gokongwei observed from Asian conglomerates is that ability to access funds and channel capital into industries that developed into globally competitive businesses over time. And, the third element of success that Gokongwei observed is that successful Asian conglomerates have learned to maintain strong family or core shareholder control, even as they broadened their investor base and professionalized their management organization.

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A DECADE OF MASSIVE ASIAN INVESTMENTS AROUND THE WORLD

Source: “The Human Touch Behind Asia Inc.’s Global Push µ $FFHQWXUH -XQH

CONTENTS

MANAGEMENT

TECHNOLOGY

BUSINESS

ENVIRONMENT

LESSONS FROM THE PLAYBOOKS OF ASIAN CONGLOMERATES

7KH IROORZLQJ ZDV FRPSLOHG E\ XVLQJ WKH ³)LOWHU E\ ,QGXVWU\´ IHDWXUH DQG VHOHFWLQJ WKH ³&RQJORPHUDWHV´ FDWHJRU\ IURP WKH GURS GRZQ OLVW IURP ZKLFK WKLV OLVW RI WRS $VLDQ FRQJORPHUDWHV ZDV GHULYHG )RU RXU SXUSRVHV ³FRQJORPHUDWH´ LV GH¿QHG DV D FRUSRUDWLRQ PDGH XS RI D QXPEHU RI GLIIHUHQW XQUHODWHG EXVLQHVVHV

ASIA’S  MOST  VALUABLE  CONGLOMERATES World  ranking  based  on  market  capitalization  by  Forbes  magazine Rank (World Ranking)

Company

Businesses

Country

Sales

3URÀWV

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137

Hutchison ‡ 3RUWV DQG 5HODWHG Whampoa Services ‡ 3URSHUW\ DQG +RWHOV ‡ 5HWDLO ‡ ,QIUDVWUXFWXUH ‡ (QHUJ\ ‡ 7HOHFRPPXQLFDWLRQV ‡ )LQDQFH ,QYHVWPHQWV and Others

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$31.3 B

$3.4 B

$103.7 B

$45.1 B

185

Jardine ‡ -DUGLQH 3DFLÀF +ROGLQJ Matheson company) ‡ -DUGLQH 0RWRUV 6DOHV and Service of motor vehicles) ‡ -DUGLQH /OR\G 7KRPSVRQ ,QVXUDQFH DQG EHQHÀW related service, brokerage and associated services) ‡ -DUGLQH 6WUDWHJLF ‡ +RQJ .RQJ /DQG (Property investment, management and development group) ‡ 'DLU\ )DUP ‡ 0DQGDULQ 2ULHQWDO (Hotel investment and management company) ‡ -DUGLQH &\FOH &DUULDJH ‡ $VWUD ,QWHUQDWLRQDO

Hong KongChina

$39.6 B

$1.7 B

$63.5 B

$43.3 B

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LESSONS FROM THE PLAYBOOKS OF ASIAN CONGLOMERATES

469

Keppel Corp

‡ 2IIVKRUH DQG 0DULQH ‡ ,QIUDVWUXFWXUH ‡ 3URSHUW\ ‡ ,QYHVWPHQWV

Singapore

$11.4 B

$1.8 B

$23.9 B

$17 B

517

Swire 3DFLĂ€F

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$5.7 B

$2.3 B

$41.5 B

$18.8 B

542

Sime Darby

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Malaysia

$15 B

$1.3 B

$14.9 B

$17.3 B

694

San Miguel

‡ %HYHUDJH ‡ )RRG ‡ )XHO DQG 2LO ‡ 7ROOZD\V DQG $LUSRUWV ‡ 3DFNDJLQJ ‡ 3URSHUWLHV ‡ 3RZHU DQG (QHUJ\ ‡ $YLDWLRQ

Philippines

$16.6 B

$0.7 B

$25.1 B

$7 B

713

Noble Group

‡ $JULFXOWXUH ‡ (QHUJ\ ‡ 0HWDOV 0LQHUDOV DQG Ores

Hong KongChina

$94 B

$0.5 B

$19.7 B

$19.7 B

1461

Tasnee

‡ 3HWURFKHPLFDOV ‡ &KHPLFDOV ‡ 0HWDOV 0HWDOOXUJLFDO ‡ 'LYHUVLÀHG %XVLQHVVHV

Saudi Arabia

$4.8 B

$0.5 B

$12.2 B

$5.3 B

1642

Aboitiz Equity Venture

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Philippines

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$4.6 B

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1784

Ayala

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$2.5 B

$0.3 B

$11.9 B

$8.2 B

TCR compilation of data from “World’s Biggest Companies – The Global 2000,� Forbes

CONTENTS

MANAGEMENT

TECHNOLOGY

BUSINESS

ENVIRONMENT

you gotta see this 26  The  Wall  Street  Journal  reports,  in  a  Sept.  16  feature,  that  the  jetpack  is  coming,  if  only  to  New  ÄžÄ‚ůĂŜĚ Ä‚Ćš ÄŽĆŒĆ?ƚ͕ Ç ĹšÄžĆŒÄž ƚŚĞ DÄ‚ĆŒĆ&#x;Ĺś Ĺ?ĆŒÄ?ĆŒÄ‚ĹŒ Ĺ˝Í˜  plans  to  launch  one  next  year.  dŚĞ Ä?ŽžĆ‰Ä‚ŜLJ͛Ć? Ä‚ŜŜŽƾŜÄ?ĞĚ ƉůĂŜ͕ Ä‚Ä?Ä?Ĺ˝ĆŒÄšĹ?ĹśĹ? ƚŽ ƚŚĞ ĨÄžÄ‚ĆšĆľĆŒÄžÍ• ŚĂĆ? EÄžÇ ÄžÄ‚ĹŻÄ‚ĹśÄš Ä‚Ç€Ĺ?Ä‚Ć&#x;ŽŜ Ä‚ĆľĆšĹšĹ˝ĆŒĹ?Ć&#x;ÄžĆ? Ç Ĺ˝ĹśÄšÄžĆŒĹ?ĹśĹ? ĹšĹ˝Ç ĆšĹ˝ ĆšĆŒÄžÄ‚Ćš the  device,  even  if  most  of  the  few  dozen  pre-­â€?orders  thus  far  â€“  at  more  than  US$150,000  â€“  will  be  going  to  overseas  customers.  For  one,  'ĹŻÄžŜŜ DÄ‚ĆŒĆ&#x;Ŝ͛Ć? Ĺ?ŜǀĞŜĆ&#x;ŽŜ  can’t  really  be  called  a  jetpack  because  it  doesn’t  run  on  jet  engines  but  rather  on  a  Ĺ?Ä‚Ć?ŽůĹ?ŜĞͲĆ‰Ĺ˝Ç ÄžĆŒÄžÄš ĞŜĹ?Ĺ?ŜĞ Ć‰Ĺ˝Ç ÄžĆŒĹ?ĹśĹ? ĚƾÄ?Ćš ĨÄ‚ĹśĆ?͘ ĹŻĆ?Ž͕ Ä‚ĆľĆšĹšĹ˝ĆŒĹ?Ć&#x;ÄžĆ? ŚĂǀĞŜ͛ƚ ÄŽĹ?ĆľĆŒÄžÄš ŽƾĆš Ç ĹšÄ‚Ćš ƚŽ ĚŽ Ĺ?Ĩ ŊĞƚƉĂÄ?ĹŹ Ĺ‡Ç‡ÄžĆŒĆ? Ä?ĆŒÄ‚Ć?Ĺš Ĺ?ŜƚŽ buildings  or  land  on  other  people’s  property.  ůů ƚŚĂƚ Ć?Ä‚Ĺ?Ě͕ ƚŚĞ Ä?ŽžĆ‰Ä‚ŜLJ͛Ć? website  comes  with  a  video  gallery  Ä?ŽŜƚĂĹ?ĹśĹ?ĹśĹ? Ä‚ Ä?ŽƾƉůĞ ŽĨ ƚĞĆ?ĆšͲŇĹ?Ĺ?Śƚ videos,  all  of  which  are  must-­â€?see,  unless  you’re  a  severe  acrophobe.

Video by .BSUJO "JSDSBGU $P

In  keeping  with  our  piece,  however,  there  is  another  rocket  man,  with  his  own  jetpack.  Swiss  pilot  and  inventor  Yves  RossyÍ• Ç ĹšĹ˝Ć?Äž Ĺ˝Ç Ĺś ŇĹ?Ĺ?ŚƚĆ? ŽĨ ĨÄ‚ĹśÄ?LJ Ĺ˝Ç€ÄžĆŒ  Oshkosh,  Wisconsin,  Rio  de  Janeiro,  Brazil,  and  the  Grand  Canyon  with  his  own  jetpack  (with  real  jet  engines),  Ä‚ĆŒÄž žƾĆ?ĆšͲĆ?ĞĞ͕ ĞǀĞŜ ĨŽĆŒ Ć?ÄžÇ€ÄžĆŒÄž acrophobes.

Video from :PV5VCF

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27

ENVIRONMENT

Dancing in Mega-Storms Ways to survive, even thrive, in typhoons By Victoria Fritz

Bringing utility systems out of the basement. ,Q WKH DIWHUPDWK RI VXSHUVWRUP

STRATEGY POINTS While we still have to reduce carbon emissions in order to combat global warming, the effects of climate change are already being felt in more severe storms People are coming up with ways to cope with severe storms, some of them fairly simple

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CONTENTS

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When buildings rise with the tides The ultimate way to cope with rising seas might just be to rise with them, per the example provided by Rotterdam’s Floating Pavilion.

and a golf course in the 0DOGLYHV DQG Ă RDWLQJ KRXVHV in Colombia. The design does not entail land reclamation. In the Maldives, the villas DUH FRQQHFWHG WR D Ă RDWLQJ boulevard, which is then

connected to the sea bed with telescopic piles. As the boulevard rises with the sea level, so does the house. He H[SODLQV KLV Ă RDWLQJ LVODQG concept in the following TEDx Warwick talk.

Rotterdam’s Floating Pavilion is pioneering design for climate change-proof architecture. It consists of three connected hemispheres anchored within the old harbor. Inhabitat, a weblog focused on innovations in architectural design and technology toward a more sustainable future, describes the pavilion as a translucent shelter made from a strong, anticorrosive plastic called Image from Rotterdam’s Floating Pavilion, Inhabitat.com ETFE, which is 100 times lighter than glass. The Floating Pavilion depends on solar power for its HQHUJ\ UHTXLUHPHQWV As featured in Quartz in August, an architect from The Netherlands, Koen Olthuis, is also designing VHYHUDO à RDWLQJ VWUXFWXUHV for a wide variety of uses: interchangeable, prefabricated units to be used as classrooms, VRFLDO KRXVLQJ DQG ÀUVW DLG VWDWLRQV LQ %DQJODGHVK multi-million dollar villas

In this presentation, architect Koen Olthuis presents his alternative to reclaiming land from the water’s edge. TEDx

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tŚŝůĞ :ŝŶƌŽ͛Ɛ ĚŽŵŝŶĂŶĐĞ ŽĨ ƚŚĞ ůŽĐĂů ŵĂƌŬĞƚ ŚĂƐ ĐŽŶƟŶƵĞĚ ŝŶ ƐƉŝƚĞ ŽĨ ŝƚƐ ĚĞĐůŝŶĞ ƐŝŶĐĞ ϮϬϬϴ͕ ǁŚĞŶ ŝƚ ƐŽůĚ ϳϲ ŵŝůůŝŽŶ ĐĂƐĞƐ͕ ŝƚ ŚĂƐ ĂůƐŽ ƐĞĞŶ >ŽƩĞ >ŝƋƵŽƌ ŝŶĐƌĞĂƐĞ ŝƚƐ ƐĂůĞƐ ƐƚĞĂĚŝůLJ ĨƌŽŵ ϭϵ͘ϵ ŵŝůůŝŽŶ ĐĂƐĞƐ ŝŶ ϮϬϬϴ͕ ǁŚŝĐŚ ƉƌŽǀŝĚĞƐ ĂŶ ŝŶĐĞŶƟǀĞ ƚŽ ĞdžƉĂŶĚ ďĞLJŽŶĚ ƚŚĞ ^ŽƵƚŚ <ŽƌĞĂŶ ŵĂƌŬĞƚ͕ ƉĞƌ ƚŚĞ YƵĂƌƚnj ĂƌƟĐůĞ͘ ^Ž ĚŽŶ͛ƚ ďĞ ƐƵƌƉƌŝƐĞĚ ƚŽ ƐĞĞ ƐŽũƵ ŽƵƚƐŝĚĞ LJŽƵƌ ĨĂǀŽƌŝƚĞ <ŽƌĞĂŶ ŐƌŽĐĞƌLJ ƐŚĞůǀĞƐ ƐŽŽŶ͘

C

WƵƚƐ ŽƵƌ ŽůĚ ƐĐƌĞĞŶƐĂǀĞƌƐ ƚŽ ƐŚĂŵĞ͘ &ƌŽŵ ƚŚĞ ŽůŽƐƐĂů

Credit: $PMPTTBM and #FOKBNJO .V[[JO

cenSEI

Ăƌƚ ĂŶĚ ĚĞƐŝŐŶ ďůŽŐ ĐŽŵĞƐ Ă ǀŝĚĞŽ ŽĨ ƐŽŵĞƚŚŝŶŐ ĐĂůůĞĚ Ă ͞ŬŝŶĞƟĐ ůŝŐŚƚ ƐĐƵůƉƚƵƌĞ͕͟ ǁŚŝĐŚ ĐŽŶƐŝƐƚƐ ŽĨ ƚǁŽ ŇĂƚͲƐĐƌĞĞŶ ŵŽŶŝƚŽƌƐ ƉůĂĐĞĚ ďĂĐŬ ƚŽ ďĂĐŬ ĂŶĚ ƐƉƵŶ Ăƚ ŚŝŐŚ ƐƉĞĞĚ ƚŽ ĐƌĞĂƚĞ ϯ ůŝŐŚƚ ĨŽƌŵƐ͘ dŽ ǁŚŝĐŚ ǁĞ ĐĂŶ ŽŶůLJ ĂĚĚ͗ dŚŝƐ ŝƐ Ă ĚŝƉůŽŵĂ ƉƌŽũĞĐƚ ŽĨ ĞŶũĂŵŝŶ DƵnjnjŝŶ͕ Ă ƐƚƵĚĞŶƚ Ăƚ >, >ĂƵƐĂŶŶĞ͛Ɛ hŶŝǀĞƌƐŝƚLJ ŽĨ ƌƚ ĂŶĚ ĞƐŝŐŶ͕ ƐŽ ƚŚĞƌĞ͛Ɛ ŶŽ ǁĂLJ ǁĞ͛ƌĞ ƚƌLJŝŶŐ ƚŚŝƐ Ăƚ ŚŽŵĞ͘

6HSWHPEHU 2FWREHU

perspective

33

µ$Q $PD]LQJ ,QWHUYLHZ¶

ŚŝƐ ƐƚLJůĞ͕ ŝĨ ŶŽƚ ŚŝƐ ƐƵďƐƚĂŶĐĞ͕ ĂůƐŽ ƐĞĞŶ ŝŶ ŚŝƐ :ƵůLJ ĂŝƌďŽƌŶĞ ŝŶƚĞƌǀŝĞǁ ĂŌĞƌ ƚŚĞ tŽƌůĚ zŽƵƚŚ ĂLJ ŝŶ ƌĂnjŝů͕ ŝƐ ƐŝŐŶŝĮĐĂŶƚůLJ ĚŝīĞƌĞŶƚ ƚŚĂŶ ƚŚĂƚ ŽĨ ŚŝƐ ƉƌĞĚĞĐĞƐƐŽƌ͘ /Ŷ ϮϬϬϲ͕ ĞŶĞĚŝĐƚ ys/ ƐƉĞůůĞĚ ŽƵƚ ƚŚĞ ƐƚƌŝĐƚ sĂƟĐĂŶ ůŝŶĞ ĂŐĂŝŶƐƚ ĂďŽƌƟŽŶ ĂŶĚ ĨŽƌ ͞ƚŚĞ ŶĂƚƵƌĂů ƐƚƌƵĐƚƵƌĞ ŽĨ ƚŚĞ ĨĂŵŝůLJ Ͷ ĂƐ Ă ƵŶŝŽŶ ďĞƚǁĞĞŶ Ă ŵĂŶ ĂŶĚ Ă ǁŽŵĂŶ ďĂƐĞĚ ŽŶ ŵĂƌƌŝĂŐĞ͘͟ /ƚ͛Ɛ ĐůĞĂƌ ǁŚŝĐŚ ƚĂĐŬ ƉůĂLJĞĚ ďĞƩĞƌ ƚŽ ƚŚĞ ŐĂůůĞƌLJ ĂŶĚ ĞǀĞŶ ƐŽŵĞ ŝŶ ƚŚĞ ŚŝĞƌĂƌĐŚLJ͘ KĨ ĐŽƵƌƐĞ͕ ǁŚĂƚ ŵĂƩĞƌƐ ĂďŽǀĞ Ăůů ŝƐ ŚŽǁ ŝƚ ǁĞŶƚ ƵƉ ǁŝƚŚ ƚŚĞ ůĞƐƐĞĚ dƌŝŶŝƚLJ͘ / Ăŵ ǀĞƌLJ ŚĂƉƉLJ ǁŝƚŚ ǁŚĂƚ ŚĞ ƐĂŝĚ

The Rome talk was translated by the U.S. Jesuit journal America

P

ŽƉĞ &ƌĂŶĐŝƐ͛Ɛ ǁŝĚĞůLJ ƋƵŽƚĞĚ ƌĞŵĂƌŬƐ ƚŽ >Ă ŝǀŝůƚĂ ĂƩŽůŝĐĂ͕ ƚŚĞ ZŽŵĞ ũŽƵƌŶĂů ŽĨ ƚŚĞ ^ŽĐŝĞƚLJ ŽĨ :ĞƐƵƐ ƌĞůŝŐŝŽƵƐ ŽƌĚĞƌ͕ ŚĂǀĞ ƐƟƌƌĞĚ ƚŚĞ ďŝůůŝŽŶͲƐƚƌŽŶŐ ĂƚŚŽůŝĐ ŚƵƌĐŚ ĂŶĚ ƚŚĞ ǁƚŽƌůĚ Ăƚ ůĂƌŐĞ͘ džĐĞƌƉƚĞĚ ĂŶĚ ƚƌĂŶƐůĂƚĞĚ ŝŶ ŵĞƌŝĐĂ, ƚŚĞ ŵĂŐĂnjŝŶĞ ŽĨ :ĞƐƵŝƚƐ ŝŶ ƚŚĞ h͘^͕͘ ƚŚĞ ϭϮ͕ϬϬϬͲ ǁŽƌĚ ƚĂůŬ ǁŝƚŚ :ĞƐƵŝƚ ƉƌŝĞƐƚ ŶƚŽŶŝŽ ^ƉĂĚĂƌŽ͕ ĞĚŝƚŽƌͲŝŶͲĐŚŝĞĨ ŽĨ ƚŚĞ ZŽŵĞ ƉƵďůŝĐĂƟŽŶ͕ ƌĂŝƐĞĚ ŚŽƉĞƐ ĨŽƌ Ă ŵŽƌĞ ŽƉĞŶ͕ ůĞƐƐ ũƵĚŐŵĞŶƚĂů ŚƵƌĐŚ͘ ZĞůŝŐŝŽƵƐ ůĞĂĚĞƌƐ ƋƵŝĐŬůLJ ƉŽŝŶƚĞĚ ŽƵƚ ƚŚĂƚ &ƌĂŶĐŝƐ ĚŝĚ ŶŽƚ ĐŚĂŶŐĞ ĂƚŚŽůŝĐ ŵŽƌĂů ƚĞŶĞƚƐ͘ ^Ɵůů͕

CONTENTS

MANAGEMENT

TECHNOLOGY

ĂŶĚ / ĚŽ ŶŽƚ ƐĞĞ ĂŶLJ ŽƉƉŽƐŝƟŽŶ ƚŽ ƚŚĞ ĞdžŝƐƟŶŐ ĚŽĐƚƌŝŶĞƐ ŽĨ ƚŚĞ ŚƵƌĐŚ͘ tĞ ŬŶŽǁ ƚŚĂƚ ƚŚĞ ƚĞĂĐŚŝŶŐƐ ĂƌĞ ŽŶĞ ŝŵƉŽƌƚĂŶƚ ĂƐƉĞĐƚ ŽĨ ƚŚĞ ŚƵƌĐŚ͕ ďƵƚ ǁŝƚŶĞƐƐŝŶŐ ƚŽ ůŽǀĞ ŝƐ ĂůƐŽ ƚŚĞ ĐŚĂůůĞŶŐĞ ƚŚĂƚ ƉĞŽƉůĞ ǁĂŶƚ ƚŽ ƐĞĞ ŝŶ ƵƐ͘ Ͷ ĂƚŚŽůŝĐ ŝƐŚŽƉƐ ŽŶĨĞƌĞŶĐĞ ŽĨ ƚŚĞ WŚŝůŝƉƉŝŶĞƐ ƉƌĞƐŝĚĞŶƚ ƌĐŚďŝƐŚŽƉ :ŽƐĞ WĂůŵĂ tŽǁ͊ ŝĚ ƚŚĞ WŽƉĞ ƌĞĂůůLJ ĐŚĂƌĂĐƚĞƌŝnjĞ ƚŚĞ ŚƵƌĐŚ͛Ɛ ƚĞĂĐŚŝŶŐƐ ŽŶ ĂďŽƌƟŽŶ͕ ŚŽŵŽƐĞdžƵĂůŝƚLJ ĂŶĚ ĐŽŶƚƌĂĐĞƉƟŽŶ ĂƐ ͞ƐŵĂůůͲŵŝŶĚĞĚ ƌƵůĞƐ͟ ͘​͘​͘ ƚŚĞ WŽƉĞ ƐĂŝĚ ŶŽ ƐƵĐŚ ƚŚŝŶŐ͘ KŶĐĞ ĂŐĂŝŶ͕ ƚŚŝƐ ǁĂƐ Ă ĐĂƐĞ ŽĨ ƚŚĞ ƐĞĐƵůĂƌ ƉƌĞƐƐ ŚLJƉĞƌǀĞŶƟůĂƟŶŐ ĂŶĚ ƚĂŬŝŶŐ ƚŚĞ WŽƉĞ͛Ɛ ƌĞŵĂƌŬƐ ŽƵƚ ŽĨ ĐŽŶƚĞdžƚ͘ Ͷ ŵĞƌŝĐĂŶ ĂƚŚŽůŝĐ ǁƌŝƚĞƌ :ŝŵŵLJ ŬŝŶ

BUSINESS

ENVIRONMENT

34

/Ĩ ǁĞ ĚŽŶ͛ƚ ĂĐĐĞƉƚ ŐĂLJƐ͕ ŝĨ ǁĞ ĚŽŶ͛ƚ ĂĐĐĞƉƚ ůŝďĞƌĂů ǁŽŵĞŶ͕ ǁĞ͛ƌĞ ĐůŽƐŝŶŐ ƚŚĞ ĚŽŽƌ ƚŽ ƉĞŽƉůĞ ǁŚŽ ƌĞĂůůLJ ŶĞĞĚ ƚŚĞ ůŽǀĞ͕ ĨĂŝƚŚ ĂŶĚ ƉĞĂĐĞ ƚŚĂƚ LJŽƵ ŐĞƚ ǁŚĞŶ LJŽƵ ŐŽ ƚŽ ĐŚƵƌĐŚ͘ Ͷ DĞdžŝĐŽ ŝƚLJ ƉƵďůŝĐŝƐƚ ůŝnjĂďĞƚŚ sĂůĚĞnj /͛ŵ ũƵƐƚ ƐŽ ĞdžĐŝƚĞĚ ƚŽ ŚĂǀĞ Ă ƉŽƉĞ ǁŚŽ͛Ɛ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ƚŚĞ ƉĞŽƉůĞ ĂŶĚ ŶŽƚ ũƵƐƚ ƚŚĞ ĚŽĐƚƌŝŶĞ͘ Ͷ ^ĂŶ &ƌĂŶĐŝƐĐŽ ƉĂƌŝƐŚŝŽŶĞƌ ĂǀŝĚ :ŽŚŶƐŽŶ /ƚ ǁĂƐ ĂŶ ĂŵĂnjŝŶŐ ŝŶƚĞƌǀŝĞǁ ͘​͘​͘ ,Ğ ƌĞĂůůLJ ǁĂŶƚƐ ƚŽ ĞŵƉŚĂƐŝnjĞ ƚŚĞ ƉĂƌƚ ŽĨ ƚŚĞ ŚƵƌĐŚ ƚŚĂƚ ƌĞĂĐŚĞƐ ŽƵƚ ƚŽ ƐŝŶŶĞƌƐ ĂŶĚ ǁĞůĐŽŵĞƐ ƚŚĞŵ͕ ĂŶĚ ŚĞ ǁĂŶƚƐ ƚŽ ĚĞͲĞŵƉŚĂƐŝnjĞ ƚŚĞ ĐŽŶĚĞŵŶĂƟŽŶ ŽĨ ƐŝŶ͘ Ͷ ZŽŵĞ ƉƌŝĞƐƚ :ŽŚŶ ĂƌƚƵŶĞŬ / ƚŚŝŶŬ ŚĞ͛Ɛ ƚĞůůŝŶŐ ƵƐ ƚŽ ŶŽƚ ďĞ ŽďƐĞƐƐĞĚ ǁŝƚŚ Ăůů ƚŚĞ ƐĞdžƵĂůŝƚLJ ĂŶĚ ƚŽ ĨŽĐƵƐ ŽŶ ǁŚĂƚ ǁĞ ĐĂŶ ĚŽ ƚŽ ŝŵƉƌŽǀĞ ƚŚĞ ĚŝŐŶŝƚLJ ŽĨ ĞǀĞƌLJ ŚƵŵĂŶ ƉĞƌƐŽŶ͘ / ĚŽŶ͛ƚ ƚŚŝŶŬ ŚĞ͛Ɛ ĐŚĂŶŐŝŶŐ ƚŚĞ ĐŚƵƌĐŚ͛Ɛ ƚĞĂĐŚŝŶŐ ŽŶ ƚŚĞ ĚŝŐŶŝƚLJ ŽĨ Ăůů ŚƵŵĂŶ ůŝĨĞ͕ ĨƌŽŵ ĐŽŶĐĞƉƟŽŶ ƚŽ ŶĂƚƵƌĂů ĚĞĂƚŚ͘ / ƚŚŝŶŬ ŚĞ͛Ɛ ĞŶŚĂŶĐŝŶŐ ŝƚ͘ Ͷ DŽŶƐŝŐŶŽƌ ZŽďĞƌƚ ,Ƶŵŝƚnj ŽĨ DŝĐŚŝŐĂŶ ,ŝƐ ƉŽƐŝƟŽŶ ǁĂƐ͕ ͚ ŽŶ͛ƚ ũƵĚŐĞ Ă ƉĞƌƐŽŶ͛͘ /ƚ ǁĂƐŶ͛ƚ ĂŶLJƚŚŝŶŐ ĂďŽƵƚ ƐĂLJŝŶŐ͕ ͚ ŽŶ͛ƚ ũƵĚŐĞ ĂŶ ĂĐƟŽŶ ĂƐ ŵŽƌĂů Žƌ ŝŵŵŽƌĂů͛͘ ͘​͘​͘ ǀĞƌLJďŽĚLJ ŝƐ ǁĞůĐŽŵĞ͕ ďƵƚ ŶŽƚ ĞǀĞƌLJƚŚŝŶŐ ǁĞ ĚŽ ĐĂŶ ďĞ ĂĐĐĞƉƚĂďůĞ͘ Ͷ ŚŝĐĂŐŽ ƌĐŚďŝƐŚŽƉ ĂƌĚŝŶĂů &ƌĂŶĐŝƐ 'ĞŽƌŐĞ ͘​͘​͘ ǁĞ ŽƵŐŚƚ ƚŽ ƚĂŬĞ WŽƉĞ &ƌĂŶĐŝƐ͛Ɛ ƌĞŵĂƌŬƐ ƚŽ ŚĞĂƌƚ͘ tĞ ĐĂŶŶŽƚ ĨŽĐƵƐ ƐŽůĞůLJ ŽŶ ƚŚĞƐĞ ŝƐƐƵĞƐ

cenSEI

ĂůŽŶĞ͕ ĂƐ ŝĨ ŚŽŵŽƐĞdžƵĂůŝƚLJ͕ ĂďŽƌƟŽŶ͕ ĂŶĚ ĐŽŶƚƌĂĐĞƉƟŽŶ ǁĞƌĞ Ăůů ƚŚĂƚ ƚŚĞ ŚƵƌĐŚ ŚĂĚ ƚŽ ƐĂLJ ƚŽ ƚŚĞ ǁŽƌůĚ͘ dŚĞ ŚƵƌĐŚ͛Ɛ ŵŝƐƐŝŽŶ ŝƐ ĂďŽƵƚ ďƌŝŶŐŝŶŐ ŚŽƉĞ ŝŶƚŽ Ă ǁŽƌůĚ ďĞƐĞƚ ǁŝƚŚ ĚĞƐƉĂŝƌ͕ ƐƵďũĞĐƚ ƚŽ ĨƵƟůŝƚLJ ĂŶĚ ĚĞĂƚŚ͘ Ͷ ͞DĞĚŝƚĂƟŽŶƐ ŽŶ WŽƉĞ &ƌĂŶĐŝƐ͛ ZĞŵĂƌŬƐ͕͟ ǁǁǁ͘ƵĐĂƚŚŽůŝĐ͘ŽƌŐ tĞ ŵƵƐƚ ƐŽǁ ƚŚĞ ƐĞĞĚ ŽĨ ƚŚĞ 'ŽƐƉĞů ĂŶĚ ƐĞĞ ǁŚĞƌĞ ŝƚ ŐƌŽǁƐ͕ ǁŚŝĐŚ ŝƐ ŚŽǁ / ƌĞĂĚ ƚŚĞ ƐƉŝƌŝƚ ŽĨ ŚŝƐ ƌĞŵĂƌŬƐ ŝŶ ƚŚŝƐ ŝŶƚĞƌǀŝĞǁ͘ dŽ Ă ĐĞƌƚĂŝŶ ĚĞŐƌĞĞ ǁĞ ŵƵƐƚ ďĞ Ă ďŝƚ ŶĂŢǀĞ ƚŽ ƐĐĂƩĞƌ ƐĞĞĚ ƉƌŽŵŝƐĐƵŽƵƐůLJ͕ ŚŽƉŝŶŐ ŝƚ ǁŝůů ƚĂŬĞ ƌŽŽƚ ĞǀĞŶ ĂƐ ǁĞ ŬŶŽǁ ƚŚĞ ƐŽŝů ŝƐ ƌŽĐŬLJ͘ Ƶƚ / ĚŽŶ͛ƚ ĚŽƵďƚ WŽƉĞ &ƌĂŶĐŝƐ ŝƐ ĂůƐŽ Ă ďŝƚ ĂƐƚƵƚĞ͘ ,Ğ͛ůů ƐĞĞ ǁŚĂƚ͛Ɛ ĨƌƵŝƞƵů ĂŶĚ ƚĞŶĚ ƚŚĞ ĨƌĂŐŝůĞ ƐŚŽŽƚƐ ŽĨ ĨĂŝƚŚ ǁŚĞƌĞ ƚŚĞ 'ŽƐƉĞů ƚĂŬĞƐ ƌŽŽƚ͘ Ͷ Z͘Z͘ ZĞŶŽ͕ ĞĚŝƚŽƌ ŽĨ ƌĞůŝŐŝŽƵƐ ũŽƵƌŶĂů &ŝƌƐƚ dŚŝŶŐƐ

/ ǁĂƐ ƚŚƌŝůůĞĚ ƚŽ ƌĞĂĚ ŝƚ͘ ,Žǁ ĐĂŶ LJŽƵ ŶŽƚ ǁĂŶƚ ƚŽ ŐŽ ŽƵƚ ĂŶĚ ƉƌĞĂĐŚ ƚŚŝƐ ƌŝŐŚƚ ŶŽǁ͍ Ͷ ZĞƟƌĞĚ ƌŽŽŬůLJŶ ƉƌŝĞƐƚ >ĞĞ ^ŵŝƚŚ͕ ϳϴ ͘͞​͘​͘ ƚŚĞ ŝŶƚĞƌǀŝĞǁ ŝƐ ĐůĂƐƐŝĐ &ƌĂŶĐŝƐ ŝŶ ƚŚĞ ƐĞŶƐĞ ƚŚĂƚ ŝƚ͛Ɛ ǀĞƌLJ ǁŝĚĞ ƌĂŶŐŝŶŐ͘ ,Ğ ŝƐ ǀĞƌLJ ĚŝƐĐƵƌƐŝǀĞ͘ ,Ğ ǁĂƐ ǀĞƌLJ ŽƉĞŶ ͘​͘​͘ / ƚŚŝŶŬ ƚŚĞ ƌĞĂĐƟŽŶ ĨƌŽŵ ŵĂŶLJ ŝŶ ƚŚĞ ƐĞĐƵůĂƌ ŵĞĚŝĂ ǁŝůů ďĞ ĂŶ ĞīŽƌƚ ƚŽ ƵƐĞ ƚŚĂƚ Ͷ ƚŚĞ ĨĂůƐĞ ŶĂƌƌĂƟǀĞ ƚŚĂƚ͛Ɛ ďĞŝŶŐ ďƵŝůƚ Ͷ ƚŽ ĐƌĞĂƚĞ Ă ǁĞĚŐĞ ďĞƚǁĞĞŶ &ƌĂŶĐŝƐ ĂŶĚ ƐŽŵĞ ĂƚŚŽůŝĐ ŐƌŽƵƉƐ ΀ĂŶĚ΁ ďĞƚǁĞĞŶ &ƌĂŶĐŝƐ ĂŶĚ ĞŶĞĚŝĐƚ͕ ǁŚŝĐŚ ŝƐ ƚŚŽƌŽƵŐŚůLJ ŝŶǀĂůŝĚ Ͷ ƉĂƌƟĐƵůĂƌůLJ ƐŝŶĐĞ LJŽƵ ĐĂŶ ƐĞĞ ŝŶ ƚŚŝƐ ŝŶƚĞƌǀŝĞǁ Ă

ƉĞƌĨĞĐƚ ůŝŶĞ ŽĨ ĐŽŶƟŶƵŝƚLJ ͘​͘​͘ ďĞƚǁĞĞŶ &ƌĂŶĐŝƐ ĂŶĚ ĞŶĞĚŝĐƚ͘

Ͷ WĂƉĂů ďŝŽŐƌĂƉŚĞƌ DĂƩŚĞǁ ƵŶƐŽŶ

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