For Millionaires Only

Globalization by Tom Sheahan

2009-06-11T00:10:00.016-04:00

I went global in 1977 and never looked back. The global community creates immense commercial opportunities. The growth in Internet use alone has been spectacular. China surpassed the United States as the biggest user of the Internet in June 2008. The Wall Street Journal reported in January this year “the number of Internet users in China has reached 298 million, nearly equal to the population of the United States.” In round numbers, it’s reported about 25 percent of Chinese use the Web compared to approximately 75 percent of the US population. The report also indicates that last year, “there was also a spike in mobile Web surfing, with 117.6 million users, a 113 percent increase over the previous year." Internet usage in the China countryside is reported to be growing much faster than in urban areas (“60.8 percent compared to 35 percent in cities”).

International visitors to the FMO Website come largely from Europe and Australasia. Sweden has always demonstrated a strong presence as has the UK, the Netherlands, the Russian Federation, Finland, the Czech Republic, Poland, Australia and China. Occasionally, international shoppers come from India and the US Military abroad. China visitors have increased and in May 2009 showed the strongest presence within the international community. Canada continues to demonstrate strength as well. Globalization has aided our understanding of the marketing and advertising landscape that plays on the attitudes, emotions and motivations of those that access the Website and shop on it.

“Go global, think local,” has been an enormous boost to top-line growth and earnings of US companies. It also presents unique challenges for sales and marketing executives and brand managers. Each country, region or market is like clay. It is molded and shaped by actions of political leaders, entrepreneurs, legislators, regulators, monetary commissions, economists and the media presenting an ever shifting terrain in which to market.

Many associate globalization with the 1970’s, the age of the Clipper Club and 747, many of us enjoyed regularly to access far flung markets. In our organization, a Clipper Club Card became symbolic that an executive had arrived on the globe’s doorstep. It was hand delivered by the CEO with the message “use this to open the door to opportunity and a wealth of new knowledge.”

Globalization was aided and abetted by Pan Am, Northwest, United and TWA but dates to earlier times. For example, basketball went global in 1891 soon after Canadian educator, clergyman and doctor, Dr. James Naismith, invented the game while at the YMCA Training School in Massachusetts. It was exported to China through Christian missionaries attending the YMCA School and establishing missions there. There are now 300 million Chinese of all ages playing basketball and 50,000 retail outlets selling NBA gear there. The sport has become so popular 800,000 new concrete courts are being built or are planned for the country in the next two years. In late May, the Cleveland Cavaliers signed an agreement with an investment group from China to become minority owners of the NBA franchise and its arena. If approved by the NBA’s Board of Governors, the group could acquire up to 15 percent of Cavaliers Operating Company, the entity that owns the team and operates Quicken Loans Arena.

Globalization has many different origins, shapes and success stories. It was born through settlements in other countries, treaties, trade agreements, the media, the transportation industry and initiatives of small and large businesses. It is rooted in the drive for market extension and expansion. The commercial opportunities get more immense by the moment.

-Tom-

Branding Is a "Family Affair" by Tom Sheahan

2009-06-01T15:01:00.004-04:00

This is an historic day those of us close to the auto industry hoped we’d never see. GM has filed for bankruptcy on its US operations and has been dropped from the Dow Jones Industrial Average. Citi has been dropped as well but the impact of Citi’s plight shouldn’t have as far reaching implications as GM. Through the cash infused by the Obama Administration, the US treasury is now the majority owner of GM. We’re all affected by the announced changes at GM and the developments that will occur through restructuring the Company.

The face of US commerce has changed with the announced demise of some GM brands; brands we grew up and loved that are corner stones in the marketplace. Branding is a “family affair.” Like it or not, we’re all part of GM’s extended family.

I’ve participated in several processes designed to create a brand from the Fortune 500 level to smaller startup companies and professional associations. An iterative process cultivates enthusiasm by allowing participants a voice in the brand and should produce a result that all may take ownership in. Savvy brand managers, leave a place for the customer to coexist within the brand and allow tweaks of the brand to link to customers’ interests. Pontiac became popular because their customers became intimate with the brand.

Many compelling company brands evolve from individuals. Every company has its share of “brand personalities”. These are employees coming from all levels of management that seek fulfillment outside the company by building genuine relationships. As a result, company credibility and respect from customers, suppliers and other stakeholders takes on the persona of the individual and groups of individuals, who live, eat and breathe company values and never miss an opportunity to demonstrate their enthusiasm and pride for the company, its products and services.

In mid-May I was delighted to spend some time with employees of a small business who are embarking on what their Brand Communications Manager calls “The Birth of a Brand.” To put what’s going on there into the context used by the firm Duct Tape Marketing, they are creating a path to become more “knowable, likable and trustable.” This small business appears to have a number of brand personalities who have empowered themselves to establish and enhance the reputation of their organization and its wares. Some employees of the firm are relatively new to the workforce. Others have years of experience with large firms where were it not for their shear talent; they may have been lost among the masses. This Company can’t help but succeed due to its shear passion for delivering world class performance.

In mid-April my wife and I were privileged to get together with my favorite branding specialist and his spouse. Ed Roach, Owner and Principal at The Branding Experts, cuts to the chase with his views on successful brands, methods of brand enhancement and processes for creating distinctive brands. Ed is example that a brand can be an individual.

Branding is rooted in the skills folks like Ed Roach bring to the table and in the intangible sum of a company, product or individual’s attributes: the name, origin, history, reputation, credentials, likeability, approachability, energy level, work ethic and integrity. Our “extended families” including coworkers, customers and suppliers are stakeholders in the brand and influence its many elements making branding truly a “family affair.”

-Tom-

The Renaissance of Transparency and Candor by Tom Sheahan

2009-05-31T13:22:00.015-04:00

“Just doing it” was probably never welcome within the corporation even at the CEO level. It more than likely ignored what was politically correct and left the organization searching for a response to the question- - Why wasn’t a team formed to address the issue? - Or- Why wasn’t I consulted? Today, the strongest criticism of companies I hear is “people aren’t doing anything” because their manager is afraid of antagonizing executives up the line. “Not doing it” seems to be more in vogue because it’s dictated by a workplace in which transparency exists only in word, entitlements have disappeared for all but top executives, loyalty is a term of the past and job security is centered on pleasing people. “Play nice” is the expected norm.

The article, “Should a Company Have a Noble Purpose?” appeared on my desk back in 2000 with notes scratched all over it by guys up the line. “Great article.” “Read this it pertains to what we are doing on the vision.” Some of the folks had taken the time to underline words and phrases I guess the reader had decided we all should find notable.

The definition of noble purpose and the practice of it at the start of the decade didn’t take for the same reasons transparency lacks definition and action today. Decision makers are enamored by the words “noble” and “transparent” but waffle on a way forward. Practice requires courage, a commodity that’s scarce within today’s executive ranks. The two words also are linked to different emotions; noble purpose to passion and commitment and transparency to openness and candor.

The phrase “feed your gorillas” was born in the late 90’s. I first heard it in a briefing by Dr. Mike Kami who headed strategic planning at IBM and Xerox during their “go-go” years. A gorilla is a contrarian that marches to his or her own drum beat and questions the status quo forcing executives to challenge their own assumptions. O’Toole and Bennis’s article in the June 2009 issue of The Harvard Business Review entitled "What’s Needed Next: A Culture of Candor" refers to these contrarians. The article says you should "promote the best of them and thank them all." Pick up the June issue. It’s great reading cover to cover.

The movement from self preservation and secrecy to transparency and candor is underway. Is it too late in coming? Who is serious enough to make it happen through deeds? Will it take? Should we find another word for transparency now that “we need more transparency” has become the universal answer to all our ills and a convenient means of deflecting probes into unethical practices? Does the word transparency have any credibility when uttered by a politican or business leader? Can a new culture based on candor take hold?

Complete candor will be long in coming. It’s my guess the momentum in large companies is so strong in the opposite direction, it will take at least a decade of managerial changes to alter the play nice mentality. That presents an opportunity for the small business that has been beaten up badly by lenders, suppliers, customers and credit card companies in the economic downturn.

Wake up small businesses! It’s in your control to demonstrate trustworthiness and nurture sustainable relationships with customers, partners and suppliers from a platform centered on candor and value sharing. How’s that for a leg up on your behemoth competitors?

-Tom-

Frustrated with The Economy? Take Advantage of What's Out There! by Tom Sheahan

2008-05-21T22:01:00.025-04:00

There are many aspects of managing our lives in today's economy. One is dealing with emotion ranging from frustration to despair. The psychological impact of the downturn may more difficult to manage than the economic. Prices and shipping costs from individual vendors have always been more information than I’ve cared to have. The economy has changed that perspective.

The price of oil topped $133.50 a barrel this morning on the world market. Is there any help on the way? It’s certain we’re not going to get real help from the Middle East, Brazil, Venezuela, Mexico, China and other major oil producing countries. Global oil production is currently 86 to 86.5 million barrels a day and consumption is about 87 million barrels a day. In 2008 about 21 million barrels of crude per day will be consumed in the US and 8 million barrels of crude per day in China. At a consumption rate that’s growing at 11 percent per year, China will pass the US in 2009 as the world’s largest importer of crude oil. India is close behind. There are good minds at work on the energy front. However, real help is not likely to come from Washington. As T. Boone Pickens said yesterday, Washington is listening to ideas, but doesn't appear to hear what’s being said.

Short term relieve from outside sources is unlikely so I’m going to capitalize on what the economy is giving us. Have you seen the deals in the marketplace? Some are phenomenal. If you are shopping through the internet, 25 to 50 percent off has become common place. Add free shipping and in most cases no tax on many items and things look even more attractive. The Internet also provides an extra savings on transportation and wear and tear.

“Shopping futures” in today’s economy can be fun. I’ve completed a lot of my holiday and special occasion shopping for 2008 and am beginning to think about 2009. “Yes but what’s my price?” fits just about everywhere. A merchant’s customer service department on the Website will get you to the right people if you want to arrange “your price and terms.”

The Internet provides other help. Websites have sprung up overnight to allow you to find the least expensive gasoline in your living area. Other sites provide guidance on how to pay for the gasoline, including the best choice of credit or debit cards. All the stats are at our fingertips.

Washington’s handling of energy reminds me of a cartoon I saw in the February 2007 Harvard Business Review. The caption reads “I’m uncertain about this, but I could be wrong.” Pouring over the numbers and the history associated with the global oil supply, points to one huge gap, the absence of a coherent US National Energy Policy and real world actions around it. I mean people actually doing something to reduce the US dependence on crude oil and its derivatives with specific deliverables and deadlines.

While marketing specialty chemicals, I’ve worked with legislators, lobbyists and regulators in several locations in the world. I’ve found only three that lead by anticipating what might be needed to conserve energy and protect the environment and act on those perceived needs. Most locations fall into one of two categories: “listeners” or “talkers.” The listeners appear polite and are attentive but as Pickens implied they don’t receive the message. The talkers swarm an issue with experts and wear down the source until it goes away. The locations I’m referring to include Beijing, Brussels, Ottawa, Sacramento, Tokyo, Washington and Diamond Bar (Orange County home of California’s South Coast Air Quality Management District). Only, Brussels, Sacramento and Diamond Bar have demonstrated to me they are willing to challenge special interests and political correctness to address a problem to the public’s benefit.

Since the Iranian Hostage Crises and Middle East Oil Embargo of 1973, Washington has reacted with a series of “band aids” to address major wounds from non existent or flawed energy policy. We are still talking band aids as we settle down for the Presidential election in November. Your guess is as good as mine as to how the US can get in step on an action plan that includes environmental advocates. Such a plan should hold environmentalists, exploration companies, refiners, vehicle manufacturers, chemical companies, solar energy producers and wind and wave power generating companies accountable for specific deliverables with specific deadlines. What’s wrong with the approach of telling the entity here’s what we are proposing, here is a possible time frame and here’s how we plan to match the funds we are asking you to commit to the initiative? Then go over the details, reach agreement and act.

Given we probably won’t see top down, bipartisan action close to what’s required I intend to make the most of what the situation gives me. Shopping today’s economy is a physiological lift and a win for both the merchant and the consumer. I’m having fun with what we have to work with. I'm also working through my energy consulting firm to assist clients in bringing new technologies to market that reduce the nation's dependence on crude oil and preserve the environment.

-Tom-

Where's My Nurse? by Tom Sheahan

2008-05-10T14:59:00.017-04:00

In the US, National Nurses Day, also known as National RN Recognition Day, is always celebrated on May 6th and opens National Nurses Week. National Nurses Week is one of the nation's largest health care events in the US, recognizing the contributions and commitments nurses make and educating the public about their contribution to wellness and patient care. The American Nurses Association (ANA) encourages National Nurses Week through state and local nurses associations, educational facilities, and independent health care entities. The week-long celebration concludes on May 12th, the birth date of Florence Nightingale. Canada begins National Nursing Week on the 12th and concludes on the 18th.

The US and Canadian Celebrations bring to mind times my family and I benefited from a special class of professionals who made the extra effort to care for us at a time of need. They also provoke memories from the business world. Like you, over the years, I’ve met a lot of dynamic, visionary people. The benefit of associating with these folks is you may not recognize how really good they are until you relive moments when their words reverberate at a new point in time or new setting.

A few years ago if you walked through the halls of an executive office building of a major specialty chemical company, you might hear someone cry out “Where’s my Nurse?” You never knew what to expect from the corner office of that building the employees affectionately called the Taj Mahal. “Where’s my nurse?” was the bosses way of signaling someone had brought him a nasty problem that could require supernatural help to address.

The query; Where’s my nurse?” fits well in today’s economic climate considering the dismal housing market and decline in financials in the US, the potential declining housing market in Europe, energy prices that are out of control, the volatility in the equities market and pundits debating bull or bear. How will we survive with crude oil prices of $135 a barrel? As gasoline and Diesel prices rise, not only do we face misery at the pump but both the airlines and cruise lines are adding fuel surcharges to the travel bill. How does a US family proceed with business as usual if we have a home purchased in the bubble of 2005-2006 that’s now worth less than the mortgage? What about that arm that’s coming due on that second mortgage we took out when there was apparent equity in the home? How about the $100,000 a year tab anticipated in 2020 to send your current 5 year old to a private university?

We can’t save our way to prosperity. However shopping for bargains can bring peace of mind. Based on data compiled in April 2008 by BIGResearch, on behalf of Wal-Mart, over the last six months, nearly half of Americans say they have tried to become more practical in their purchases and more budget conscious. Satisfaction lies in the smallest bargain whether it’s a seasonal sale of 10 percent off, a discount offered in a holiday period or free shipping. Consumers seeking bargains enabled Wal-Mart and Sam’s Club to beat forecasts for same store sales handily in April. Excluding fuel, Wal-Mart saw sales climb 3.2%. Sam’s Club experienced a 6.6% increase. The warehouse chain benefited from strength in sales of dry groceries and consumables.

Yesterday morning Wal-Mart announced a new on-line service customers hungry for ideas may use to stretch their dollars during tough times. The site, http://www.walmart.com/savemore, will feature tips and advice from Ellie Kay -- America's Family Financial Expert® and best-selling author of several books including her most recent release, A Tip A Day With Ellie Kay. Wal-Mart merchants and everyday shoppers will have the ability to contribute content to the site by offering their own ideas on how to spend wisely and save more money. Wal-Mart and Sam’s Club are marketing with passion when they could withdraw and wait for the ecomony to improve.

Marketing behavior in tough times brings to mind another page from the past. A former opera singer settled into a business where her professional stage presence and public speaking experience were packaged into a firm specializing in coaching presentation skills. When the economy took a turn for the worse in the early 1990s, I remember asking her about business and getting the response, “business could be better.” My reply was, “let’s make it better.” I felt the lull created by the downturn was a great time to send off an army of people to hone their presentation skills and instill confidence in their interactions with others. Why not ready as many employees as we could afford to spare during the “slow time.” Wal-Mart and Sam’s Club approach to the current economy extends that philosophy.

The advantages of ramping up marketing in tough economic times are amplified in the March Issue of Advertising Age. The Issue leads with the article, “Recession can be a marketer’s friend.” The article calls downturns in the economy “salad days for technology.” It elaborates those companies that charged ahead during recession, accentuated investments in their work force and “marketed like crazy” preserved their livelihood and came through the downturn stronger than they entered. It’s all about keeping the foot on the accelerator and relentlessly building value.

The Internet provides an avenue to shop at lower cost with confidence and convenient. Merchants are engaged in aggressive promotions to retain customers. You’ll find huge discounts and unprecedented terms on shipping. Make the merchant’s business your business. Give them feedback on your experience. Do business with the merchants that “walk the talk” and hold them accountable.

Today, “Where’s my nurse?” is a pause for reflection, becoming more cost conscious and seeking merchants willing to invest in the consumer. Wal-Mart and Sam’s Club aren’t places I'm comfortable shopping. However, their aggressiveness will rub off on places I do shop. There’s no better medicine for the consumer than free competition for his or her business.

-Tom-