Business Lounge by Andre Burnett
I
The importance of infrastructure in developing countries
t could be said that the true infrastructure of a country is its people on whom the foundation of a nation must rest squarely if it is to achieve the lofty heights to which it aspires to. At the same time for the people to achieve their potential, the facilities and amenities must be provided to allow for such achievements. There is no doubt that there is potential among Jamaicans, which is why the announcement of the US$400 million, 5-year Jamaica Development Infrastructure Programme (JDIP) holds particular importance for a developing country like Jamaica, a country that has long underachieved its vast potential. An article in September’s issue of British publication, “The Economist”, hailed the efforts of the Jamaican government to cauterize the gushing wounds that our economy and crime problems represent with the implementation of
the Jamaica Debt Exchange (JDX) and recent crime efforts. The economist admitted that there was still more to be done and the JDIP is a step in the right direction to addressing Jamaica’s problems holistically. One major facet of the mostly Chinese funded project is that it provides employment on a rather wide scale for the duration of the project which is an immediate shot in the arm for the country. But what of the wider scale? One of major disparities between developed and developing countries is the disconnect in the quality of roads, bridges and communications. In a country with a road network second only to Japan on a per capita basis, the quality of our roads will go a far way to producing more efficient delivery and trade routes resulting in “Jamaican Time” being a little bit closer to world time. Economic growth and sustainable development have to be preceded by the provision of efficient, reliable and affordable infrastructural service. That being said, the problem usually lies with deciding who will fund this investment because even when returns are evident they might not be readily appropriable.
The ability of the government to source overseas funding is a plus and a minus as although it avoids the hassle of privatizing infrastructure development it does add to the already mountainous debt that our grandchildren is already inextricably tied to. The multifaceted approach of the government advertisment
to development must be commended and it is our hope that the new infrastructure push will help in the building of our people.
The government of Jamaica benefits greatly from having the Chinese on board who have been keen on Jamaican projects with their announcement as major backers of almost 10,000 lower income homes earlier this year. yourmoney ezine
special
the
W
Five most profitable
movies of al time
henever figures are tossed out about the amount of money that films gross, little or no attention is given to how much the films actually cost to produce. We all know that last year’s 3D blockbuster, Avatar, is not the highest grossing film of all time but the fact that it took the economy of a small country to produce is often neglected. As is such, Your Money takes a look at the top 5 most profitable films of all time complete with return on investment figures. grease (1978): If produced today, John Travolta’s hair would be in constant danger of going up in flames with all of the mobile phones around but in 1978, studio heads were beaming. Budget: $US 20 million* Gross: $US 394 million ROI: 1975%
pretty woman slumdog (1990): millionaire (2008): Richard Gere’s sex appeal and Julia Robert’s The title was more deportrayal of a lady of scriptive in more ways the night with a heart of than one as the low gold won over theater- budget independent goers in the early 90s. film became an Oscar Budget: $US 23 million* winner and a runaway Gross: $US 463 million success at the box office. ROI: 2013% Budget: $US 15 million Gross: $US 378 million ROI: 2520%
E.T. the ExtraTerrestrial (1982): When a film is able to garner measurable market share increase for a product (Reece’s Pieces) that was placed in it, you know you have a winner on your hands. E.T was a winner for all involved and cemented Steven Spielberg as a master at his craft.
big fat greek wedding (2002) : Now lets face it, not too many men are going to see that title and rush to go see the film. MBFGW struck a chord with female moviegoers and represented one of the biggest sleeper hits in history. An extremely low budget movie, the film had very long legs at the box office making it the most profitable film of all time.
Budget: $US 25 million Gross: $US 703 million ROI: 3172%
Budget: $US 6 million Gross: $US 369 million ROI: 6150% *Inflation adjusted
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insights
nokia in the 2000s
How to lose friends and alienate customers
A
hallmark feature of any specie of plant and animal that persists today is their ability to adapt to their habitat even if that process requires the help of generations to do so. Business habitats are far more volatile than nature could be so businesses that are rigid in their approach often find themselves occupying a lower rung on the old food chain. The Finnish pulp manufacturing company turned telecommunication giant, Nokia, has lost some of its mojo in recent years and one wonders if the company’s obvious lack of insight into the ever changing needs of the mobile consumer will be the death of the company.
headquarters of Nokia, an intern lost the memo that read, “People would like to do things other than talk and text on their mobile phone”. Because of that intern, Apple’s iPhone, Research in Motion’s Blackberry and the Androids have kicked the stuffing out of Nokia’s dated and clunky not-so-smart phones. And to make matters worse, Nokia is even losing its grip on the no frills handset market with Korean company Samsung kicking up a storm in that market. Should we feel bad for Nokia? Let’s see…
Nokia was easily the most successful European company of the 1990’s with a market value built on the reputation of its sturdy sometimes stylish handsets with an emphasis on functionality. On the flip side Nokia could easily be considered the most disappointing company of the new millennium. I’d like to think that somewhere inside the Finnish
So with a 47% share drop since the release of the iPhone and a brand rating that has dropped 30 places to 43 in 12 months, the profit margins are shrinking and the average price of handsets are doing the same. So even though the company still possesses a large chunk of global phone sales there is little comfort in that statistic as their position is more
and more tenuous. The company has even hired the first foreigner as CEO, with the appointment of Stephen Elop, a former employee of Microsoft, a company known for its lively mobile phone offering. Wait…that’s not quite right, Microsoft has never quite had strong footing in the mobile market so your guess is as good as mine when the quality of that decision is questioned. Maybe Nokia was too far away from the other industry players to adequately
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Remember when the clamshell mobile phone design was all the rage? Well if you do then you must remember how successful Nokia’s Razr clamshell was in the mid 2000s, wait, that wasn’t Nokia. That was Motorola, Nokia insisted that they knew better than the consumer themselves and continued to provide soap bar designs. By the time Nokia folded (ahem) and started to make clamshell designs they were already behind the curve and consumers were starting to think that Nokia’s ultra trendy “Matrix” days might be behind them. Yet… the company didn’t learn. gauge the trends that were taking place in the marketplace, or maybe it just didn’t care. Here is a thought from Ricky Cadden, head of the recently closed SymbianGuru/Nokia website. “To Nokia, you guys are losing. Hard…Doing the same thing repeatedly and expecting a different result is the definition of insanity”.
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CARIBIZTECH
set to unfold this october
T
he renamed and rebranded, 2010 Caribbean SME Business Technology Exposition and Media Conference, “Where SME Business Technology, Social Media and the Realities of the Business World Collide” is now set to get underway starting October 26th to 28th 2010 at The Courtleigh Auditorium, New Kingston Jamaica. According to AMK Communications, the organizers and promoters of the regional event, CARIBIZTECH is positioned as the premier business to business exhibition and media conference exclusively for SME business owners, executives and entrepreneurs, marketing, media and advertising executives interested in staying at the forefront of business technology and looking to innovate or source the right solutions to transform and streamline their business and brands. CARIBIZTECH will also be a spectacular showcase of leading SME business technology brands and industry experts dedicated to keeping SME’s one step ahead of the competition. CARIBIZTECH will also include an unrivalled range of networking opportunities, industry integration and new business lead generation. Commenting on the strategy behind the rebranding, the organizers said
that “Following extensive consultations, listening to the comments and feedback from prospective and confirmed sponsors, presenters, participants, potential exhibitors, industry insiders we have taken a strategic decision to expand the reach and scope of the original Caribbean New Media Conference to now embrace and explore the ways technology and new technology paradigms are radically transforming the way SME businesses function and are giving rise to new business models. Media, new or traditional can no longer be viewed in isolation. Technology is rapidly changing and forcing us to review our traditional notion and concept of media. CARIBIZTECH will be exploring the ways technology and new technology paradigms are radically transforming the way SME businesses function and are giving rise to new business models.”
members of organizations such as the Small Business Association of Jamaica, PSOJ, Young Entrepreneurs Association, Jamaica Exporters Association, Jamaica Chamber of Commerce, Media Association of Jamaica, and Advertising Agency Association of Jamaica. This group will be expanded to others around the island in the coming weeks to ensure the widest level of participation. With a seating capacity for 400 the organizer are projecting conservatively at least 200 attendees each day at the event location. Thousands more are expected to log on daily to the live internet stream as the organizers seek to have the widest level of participation and interaction from the Caribbean and around the world. More information on this event can be found at: http://caribbeannewmediaconferenceandexposition.wordpress.com/ OR please contact Aldo (Al) Antonio Chief Marketing Officer (CMO) AMK Communications Limited For all information 876-631-5418 (o) or 876-280-9192 (m) OR email amkcommunications@gmail.com www.amkcomm.wordpress.com
To ensure the widest national level of SME participation, special invitations to attend have been sent to yourmoney ezine
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