A. Economic Planning Variables:
EXTERNAL ECONOMIC FACTORS INFLUENCING INDUSTRIAL GROWTH
This section will discuss
the external fundamental economic policies that directly influence the
well being of private
companies in a nation. Every business needs organization, methodology,
system, technology, material, resources, labor, cost and management,
etc. but if
private companies and their strength are not supported by the society and the
government, they will never be successful. This is exactly the problem
with the US for most US companies. They have to operate with many
external factors that are unfavorable to business growth: Wasteful and
crazy government regulations, costly and deceptive professional
services, too many added services and requirements (from the old
"division of labor" philosophy), etc. When businesses must operate
with too many variables, problems, requirements for every simple
event, the entire economic engine is too heavy to run and too slow to
adapt to new changes around the World. This is largely the results of
a cumbersome legalistic society designed to generate conflicts and
problems to feed an infatuated and fragmented legal and government machineries.
Legality is a necessity for an orderly and respectful work process but
must be used to support business growth and not to hinder business or
production. These external factors have
rendered many great US companies and entrepreneurs defenseless against
new and cheaper competitions around the World. We must learn these
lessons and plan our society better and avoid these problems if we want economic growth.
1) Policies to lower Production Cost
Problems with bad policies
What we can do to induce
Material costs are
influenced by the external economic institutions and government
policies. In the US, these external factors adds as much as 40% to the
cost. But to cut costs by reducing materials leads to quality
decrease. This is a big problem in the US. To support businesses, we
must determine, select supportive policies, get rid of cost-creating
ones so we don't add
unnecessary burdens on business. We also must change
the mentality that we must exploit businesses on the basis of
"supply-demand." This mentality will
backfire sooner or later on that nation's economy.
1) Local governments in
the US created excessive laws to harass and punish their own people
for money and arrogance without supporting them. This is why it adds
to production cost
It is not the min. wage
but added regulations for every thinkable matter that add cost, weight
down the work process, slow productivity and increase cost; We can
increase min. wage but get rid of unnecessary rules
2) When all segments of businesses and professional services are not
done as a service but more as an exploitation for money, sooner or
later such nation will be weakened
We must change this working method. It is unproductive. When there are
money to make, it is acceptable but as the profit distribution comes
to a limit, societies with mutual exploitation economy shrinks or slow
down with bankruptcy increases.
3) Real Estate and support professional services are too high
and forced costs to grow. Rent must be at 10-15%; Services +Transport
under 15% for viable business.
Real Estate values provide instant money for development but also
raise living cost, hardships for the poor and high rents. All are
negative for industrial growth. It must be planned with COMPENSATION,
preservation strategies for agricultural and industrial land + rent
control for industries and people.
4) Control all matters that affect materials, supplies, utilities,
equipment, transportation and operating cost for business
To support businesses, we must make an effort to study each cost
matters and devise the right policies or regulations for them. We
cannot grow businesses when we create laws that make business suffers.
Codification of the
administrative laws are useful but when rules only impose
limits and obstacles on business as a principle of "supply-demand," business will
naturally never grow. They added
operating costs, add burden to management and make workers
less productive, care free and even stupid as the system does not
encourage workers to work, does not allow managers to expand but to
follow. We must ask ourselves whether economic growth and money
for the people are
important or the set of administrative laws are more important? Vietnam begins to show similar patterns of
mistakes made in the US. China is far better as local government can
change its own rules and central government are fast to accept changes
to facilitate economic growth. They don't need to be lawyers but
just smarter law makers. We cannot control all factors that influence
economic strength of businesses but we can design policies or plans
not to impose costs and restrictions on business growth by (1)
Flexible and realistic rules (2) Control costs via selection and
prioritization of rules applications; (3) Built-in mechanisms for
changes and exceptions but strict enforcements to deter abuses.
2) Policies to control
the cost of living to business growth
Cost of living will ruin
any economic growth
What we can do to induce
This is a fallacy of
Western economic theories. We agree to the essence of a market
economy but only to the extent that it is productive and not creates
more poverty to people while enrich only a small few. When Western
economic theories allow corporate greed to charge "market" prices,
this naturally induces higher cost. We must analyze costs of living
and create strategies to influence changes - not just let certain
groups to influence prices. We must keep Cost of Living at the
tolerable level with expendable income to induce economic growth. When
is is pushed to over the limit of expendable income, the nation's
"strength" is superficial and weak.
1) Inability to control
essential fixed costs with semi-monopoly or lacking of diversity in
supply and in consumption segment
Essential commodities are harder but not impossible by creating
"balancing measures" such as: Create reserves of gas; Introduce
diversity of consumption (electric bikes...) Set a Max price level;
Encourage more distributions, reduces transport cost by allowing more
2) Inadequate info system and allowance of wholesale price index to
rise on its own
Improve info system, improve transport movements, encourage or even
subsidize supply of certain commodity can control wholesale prices.
3) Inflation pressures + unreal salary levels of management + too many
speculative business types in the market (real estate, gold,
Inflation pressures can be controlled; High salary levels can be
controlled and speculative businesses are also controllable at least
by "adjustment valves" and better planning.
3) Uncontrolled food cost other monthly expenses (utilities, garbage,
etc.) from lacking of suppliers.
must constantly monitor, study, analyze the markets using computer
software to maintain people's fix expenses at 25-50% of expendable
income. If higher, we must act on it by support supply or limit fixed
If one chooses to imitate
capitalistic forms of market economy, we must control living cost
to a reasonable level against inflation (under 9%) and expendable
income ( over 30%); food + fixed monthly cost to under 25%; When US
policy makers and economic planners induced economic stimulations that
pushed cost of living at over 75% with the housing balloons (which
benefits only those with real estates, who are mostly the richer),
their economy went into recession and the real estate market burst.
This is an example of the failure of the Keynesian economic models
that we should not follow. If real estate is allowed to increase out
of control, we must place other factors in place to support such
growth (cost of living and personal income, environment,
infrastructure); We must do it in a prudent manner via a smarter urban
plan. In our opinion, economic growth
must comes BEFORE or CONCURRENT real estate growth; To do it in reverse, the only
people benefits are whose with properties and related means (which is
under 10%) and this simply means that 10% of the population makes
money at the sacrifice of 90% of those who have nothing and that we
intend to have the property owners to be the determinants and
controller of the economy. This kind of economy will not grow, cannot
be strengthened and will not benefit the mass, the poor and the
3) What development policies are positive for growth?
Positive influences on
What we can do to induce
For poor nations with
limited resources, to induce growth, central policy
planning is still necessary but must be crafted to promote economic
growth for the working population and not just to make a selective
group in similar fashion with US. We believe in "engaging economic planning" and
strategies and not "let the market dictate our growth" as this is
merely the way of capitalistic groups to exclude government policies
so they can be free to manipulate the markets for their own profit.
Their only aim is exploitation of any economic assets of others.
1) Organized, efficient, functional and stable public institutions:
Administrative, industrial-professional-economic supports - Education,
Transport, Trade, Criminal Justice, Monetary-Banking + Taxing,
Stabilization of public
institutions, services and especially institutions
like education, banking, taxing, currency, etc are essential to
industrial growth. To do so, government policy, staff, rules must be
supportive of growth and not becoming the obstacles to growth like in
the US. We must reverse this trend.
Well organized government with a strong, clear and realistic economic
plans. Stronger Research & Development agencies and plans to encourage
Economic planning is still much more useful rather than let is be dictated by the
markets after the fact. This model enriches only the wealthy. R&D efforts must
be modernized management
without outdated styles in Asia or the lazy style in the West.
Removal of all negative policies that inhibit growth or new
businesses; those that increase costs, limit access to industrial
means such as equipments, machines, vehicles, etc.
We must also review each policy from all aspects remove all obstacles.
Must be take some chances to let people thrive but be ready to
prosecute ONLY abuses that are contrary to industrial growth such as
those related to problems 1 and 2 above.
Wisdom in the development and writing of industrial-economic codes;
minimize wastes and costs on businesses but actively create policies
for better 1 and 2 above.
Regulations are useful but again, procedures are the means and not the
end of the economy. Over-regulation costs money, time and hard to
change. We must introduce new measures to encourage open enterprising
plans and inhibit only when it is a criminal, environmental and
policies seem hard but actually not. It's easy when we plan just for a
certain segment or sectors or the economy with money and other
economic means; but it is certainly harder when we plan for the
majority of the population that have neither money or other strength.
But this is what economy is all about. It is NOT about the people who
already have money as they don't need to be richer but for the mass
population who have nothing. We
can develop the right policies that encourage important paths such as:
Enterprises, innovation, labor productivity, research and education,
and other policies that support the mass populations and not just some
4) Urbanization & Economic Strength
What we can do to induce
Urban development is
necessary but must be done with scientific and sensible planning
with concurrent improvements in infrastructural and
environment.. We also must not sacrifice future production economy:
INDUSTRY, AGRICULTURE, EDUCATION. These are what a strong
nation needs - not just nice homes for the rich. Real estate values
and tall buildings are great but made for a consumption economy of
those with money. It effects only 3 to 5 % of the people of Vietnam. It's the slavish
and enjoyable social life for the rich enjoys but the poor will
only continue to live in darkness, to live
with garbage and disease in rural countryside.
1) Urbanization is not just to build houses but to preserves natural
resources, set up infrastructure, improve environment and protect
industrial and agricultural production.
Urbanization plan can be manipulated lead to uncontrolled problems in
the infrastructure and environment.
Urbanization plan must be made a part of economic development plan for
the mass and not just to urbanize for real estate values for some.
Economic developments must include sufficient plans for industry,
4) Urbanization to preserve businesses, schools, and family living. It must also
limit the imports of bad values from Western nations as being done in
China, Thailand, to protect and enhance national cultures, values of
Master plan to preserve natural resources, other assets and to
maintain future industrial, business, agricultural growth is not hard
to do when we are serious in doing it. Urbanization cannot be made by
itself but with planned infrastructure and the habitat. This is
beneficial for both the rich and the poor.
This is common in Vietnam and that our urbanized plans continue to
serve developments for various groups and cannot support any
economic growth for the mass. It also generates more increase in rent
costs to businesses, homes. We can improve by proper and careful
urbanization that support businesses, protect environment and
When urbanization are planned by professionals, it supports economic
growth. Space is too limited here to discuss about urbanization but
there are strategies to soften economic and housing impacts but these
must be planned objectively for the interests of all groups especially
businesses, industry and agriculture.
both the US and Vietnam, developments are to serve mostly land owners with
political ties and as a result, developments become politicized,
costly for both businesses and people. We do not need to copy the US
in this regards to lessen the hardships on the poor. US property
system is designed to be manipulated for speculative growth. This
model can be detrimental to business and industries
Urban development by
definition is to facilitate both societal and economic growth.
However, man's relentless pursuits of profits for his own have turned
urbanization into an economic plan to enrich himself at the sacrifice
of the poor, of nature and of the long term interests of the economy. One's economy cannot be defined as the growth for the
wealthy but the growth for the MAJORITY of the people. Such urbanization will create casualties for
future generations and will continue to weaken the mass population to
grow and the poor to survive. And when the majority of the population
is weak, that nation is not strong. This is the case now for many
nations including the US, France.
5) The importance of Industrial Research & Mass Education
Very important in many
What we can do to induce
This is self-explanatory.
Japan, China, Korea governments always emphasize on R&D work and
Education. These areas are weak in the US and Vietnam. But R&D in US
are done by private firms whereas private firms in Vietnam are lacking
of money to do so on their own. As a nation behind in progress, we
must advance our industrial R&D faster and develop a stronger, more
modernized higher education with more substance rather than words.
1) Industrial research is necessary for economic growth. Lacking of it
will bring a nation down faster. US private companies do their own
research and this way costs more and slower.
Our scientific research must be directed towards realistic future
production industries in Vietnam for the larger population and not
just for industries or developments that 5% of the rich wants to do.
This is evident in the downfall of US industries: It is not that there
is not enough jobs, there are many industrial and professional jobs
but US work force is not able to do.
Mass education is necessary for high quality work force. Vietnam
is with a high % of HS students could not go to college due to high
cost and this is not a good sign for an industrialized nation.
Education for the vast majority of the young Vietnamese must be
improved, cost less and with more equipments and support so young
people can learn. We cannot grow an industrialized nation when the 90%
of the population with only some High School education. VINAREX will
actively work with others to improve this ratio.
Industrial research in Vietnam must be done on selective subject areas
relevant to future industries such as civil engineering,
infrastructure, environment, agriculture.
Limited with resources, we must devote our research and development on
relevant industries - meaning industries that we can and will develop
for VN in the near future - not industries geared to widen the
socio-economic strata among Vietnamese.
We also must devise plans to make HS and University cost lower to poorer students have a chance and not just for those with
discussed, VINAREX plans to develop a wide range of practical
vocational training for the large High School Vietnamese and prepare
them for practical industries in the near future so they don't have to
work for so cheap at foreign factories and contribute effectively to
the future of Vietnam.
The above topic requires
no further elaborations.
6) Redistribution - Restructure Economic Opportunities
Relative distribution is
What we can do to induce
To enlarge the economic
engine, we must distribute responsibilities or opportunities.
Management formula should be the same. Unlike capitalistic models,
responsibility and opportunity are retained by private corporations.
This will weaken their industries and their economy sooner or later
1) Once we strengthen and
enlarge the group, we must slowly provide others with opportunities,
responsibility and pride to take part in the economic production.
Distribute responsibilities and opportunities is different than
division of labor or departmentalization. Opportunity to contribute
and not to become individual entity to fight each others.
opportunities are being done in both capitalist and non-capitalist
nations for expansion of middle-class income/group as it is
unrealistic for government to carry the industrialization process.
Recent economic downfalls in the US partially because instead of "redistribute,"
corporations shift production overseas for even more profit and less
work; This adds short term profits but will distribute opportunities
overseas; As industries get more global, the less US will distribute
growth to their own people and eventually weaken their own economy .
The Chinese do not copy this stupid move from the US. O the contrary,
they go overseas to take opportunities away from that nation and bring back to their nation by creating
joint-ventures, developments, etc. This is a much smarter move.
The US in the 70s to
90s was with a large middle class, unemployment was 7%. To gradually minimize social gap and a widen
middle class is a good economic goal for all nations including
Vietnam. We must provide the lower class people more opportunities
to succeed. Only then Vietnam as a nation can be stronger.
2) Managers alone, no matter how strong, cannot make a company strong;
nor the top 5% of the nation can make a nation strong. We must enlarge
the opportunities and distribute them to a larger population in order
to build up a production-based economy. This is the best and only way for Vietnam to become a
respectable nation in Asia.
opportunities may appear is transferring certain economic chances to
the public in various forms. By creating a larger economic force with
more productive population, the economy can expand. But we have to
know where, when and how to distribute so that certain geography or
occupation groups are benefited from the process. Distribution of
opportunities is also a socially meaningful and better governing
strategies than "selective distribution" of wealth or power among a
single group. This will not grow the economy the same way capitalists
move their assets overseas for their own profit thus weaken their own
nation in the process.
7) Selective wage stimulation policies
The detriments of endless
wage to labor quality and economy
What we can do to induce
With a wide socio-economic
gap, high inflation, unstable food supply, dramatic increase of business rents, etc, any increase in
wage will trigger a rise in living cost. But wage is
so low in VN for most workers so to solve this dilemma, we can increase wage
selectively & indirectly by (1) Expand industries while
increase labor training but also (2) Expand education opportunity
at the mid-management level so less wage increase at this level (3)
Increase minimum for ONLY the low end level.
This SELECTIVE and
INDIRECT policy will not pressure inflation while serving other
important economic objectives: (1) Increase wage for the poor but not
for mid-level (2) Maintain low cost of living (3) Discourage
increase in the high-income labor that do nothing for the economy but
to cause problems to our labor market, inflation, and further widen
social gaps and social class that will incubate social unrest,
resentment and crimes.
Vietnam is facing
problematic labor and wage policy. On the one hand, rich families with
better educated members continue to occupy extremely high wage, while
government-induced urbanization has drastically cause a saddening
socio-economic gap with the poor, but we must find ways to increase
wages for the poor because the low level wage is too low while the
rich is too rich (by the ability to control the means of production,
real estate and financial sources); If we do not do anything and let
inflation eats away what little wage the poor can make, we are dis-service
people and will cause social discontent. Our suggestion herein to
selectively influence controlling wage on the top labor and increase
wages for the poor, we will solve certain problems for the poor yet do
not increase the cost of living, inflation, etc.
The strength of a nation
cannot be realized when the majority of assets, opportunities are
controlled by less than 5% of the population. Such a small percentage
is not enough to strengthen a nation. We have to create and widen a
stronger middle class by distribution of opportunities or induce
economic productivity of at least 40% of the population by providing
opportunities and training for them to be stronger and to contribute
to the nation. This means that 90% of Vietnam's GDP must be produced
by at least 35 to 40% of the population. To restructure and
distribute opportunities to a larger group is not just a good social
policy, it is good economic strategy. Let's use the example of the
US: For so many years now, resources are accumulated in the hands of a
few. Now they cannot maintain their industries because they never
wanted lower class people to gain control. As a result, their
industries are weaken and transferred to other nations including China
and India. To redistribute opportunities is an old but effective
economic strategy to strengthen society. But to sell industrial and
economic strength to other nations to achieve political ends is to
build more cemeteries for the US or for your own people.
DECISIONS THAT WILL INFLUENCE THE NATIONAL ECONOMIC INTEREST AND THE
LIFE OF OTHERS
discussed how external influences such as government policies,
societal norms, culture and mentality may affect the collective
business growth or failure of a country, this section will examine the
opposite: What are the strategies and decision that private companies
do that may influence or effect the growth of a nation? First, except
for a very small number of nations in Africa and South America, most
nations are operating in a relatively free economic enterprises with
products and services are more or less owned by private parties. To a
large or small extent, what private corporations do greatly influence
the lives of the people, the strength of the collective economy and/or
the strength of that nation. China, Japan, Sweden, US, or Vietnam,
etc. They are not strong because of the government but because of the
combined strength of thousands or millions or individuals and
businesses. Some corporations such as Microsoft, Google, Boeing,
Mitsubishi, Toyota, etc. not only strengthen their own nation, they
influence and bring modernization to the world with their excellent
technology and advancements. In an
interdependent societies, what we do can change many human lives in
either positive or negative ways. Conversely, a few controlling
companies in a nation can lead that nation to glory or to hell. What
are the decisions or strategies we as private business must choose to
do to enhance the strength of our nation?
1) Profit Marking Decision
Maximum profit? What is
the right pricing strategy?
How can such private decision influence the nation?
A) DOMESTIC MARKET
PRICE for NECESSITY PRODUCTS OR SERVICES: In our opinion, maximized
profit in disregards of the affordability of the customers both
irresponsible and not a good
strategy for the business as well as for the nation in long term
growth. It generates pressures on others to increase cost, prices and
damaging to the nations' economy. This model is useful for richer
nations but make the poor nations poorer.
wants a maximized profit consumers can bear. This doctrine is not
longer valid in strong economic terms and also create hardships for
the poor. Examples of failures shown above. Interdependent economic
chains lead to increased cost, destructive competitions, weaken the
productive population that leads to weaken nation in the long run.
B) MARKET PRICE at AN
AFFORDABLE LEVEL of the population as objectively calculated will lead
to long term growth. "Affordable level" means the industry-wide
acceptable level within 25% of expendable income or comparable % for
industrial products or services. For example: Rent to be 10-15% max of
revenue; professional service lower than 10% of product cost, loans
must max at 25% expendable income..
Near-sighted businessmen argue that profit must be maximized. This is
actually NOT smart in modern economic strategy. There are known
"affordability" payment level when one seeks loan and this principle
applies to all industries. When we price at the "right prices" we
creates the market faster, preclude predatory competitions,
better pubic relations and better long term results. It is possible to
calculate scientifically the % or affordable level based on local
C) AFFORDABLE MARKET %
is different than the real estate "VALUE" pricing. This is where many
real estate-based economic strategies are not valid for economic
formulation. It is directional, bias, applies to an often inflated
perceived values. This system used by real estate professionals are
dangerous and should be abolished. It drives up prices, weaken the
nation's ability to devote to a product-oriented economy; It also
caused hardships to the poorer majority and drive up cost of living
across all sectors to weaken business and industry.
As real estate becomes
a part of our business life with overnight millionaires, we tend
to plan our economic policies based on "VALUE" rather than ACTUAL
amount. The mentality of real estate economy can lead to a nation
to severe adversity to other economic sectors and directly
weaken our bases for industry, agriculture, manufacturing and even
tourism (cost to high to develop). Real Estate is a single most
profitable sector but also a dangerous one to the national economy
as it can bankrupt the financial sector from the wrongful "value"
D) To strengthen the
nation's economy for the mass population (not for a small wealthy
group), we must encourage a financial and business policy and strategy
based on reasonable values of the expendable income of the SPECIFIC
population group to whom we serve or sell to. This will lessen
pressure on important economic indexes such as inflation,
cost-of-living, false market price to be manipulated by bad people and
thus de-stabilize our monetary and financial foundations that the mass
must depend on to survive.
The risks of allowing
too many speculative types of businesses such as real estate,
gold, money exchange, commodity, and related in a nation
with smaller GDP can place a lot of pressure on its monetary
policy, inflation, cost of living and business operating expenses.
All of which are not healthy to industrialize or to support
important economic sectors such as small business, wholesale,
retail, agriculture and food supply. This is a major problem with
The topic is one of the
most difficult to issue to convince people especially Americans.
However, if we look at the failure of international corporations
overseas and the weakness of many US industries to compete (unless
they shift their productions overseas), we will realize the
significance of this strategy. By pricing products or services
correctly and specifically for a given industry or business, it is
more effective for the products, the company and the nation in many
ways. To price as the American style of "market bearability" - maximum exploitation
- is unwise, unethical, self-destructive in long term for both the
company and the nation . There are scientific and intelligent approach to pricing
and it is not "hit and run" type of mentality. It also create credibility problem, distrust
and even hatred to the nation whose companies are from.
2) Update our Business Mentality
Everything we do will affects others weaker than us
The old Western economic theories are now obsolete
belong to the past.
In today's world economy where profitable interchanging between the 2
nations is most important, it is no longer practical to operate based
on old economic theories, political ideologies but WHAT'S FAVORABLE or
ACCEPTABLE FOR 2 NATIONS. US are still impractical with political and
ideological issues. This will continue to work negatively. We should
focus on PRODUCTS, PROFIT AND MUTUAL RESPECT instead. As private
company, we also must remove the old mentality of exploitation,
manipulation but to respect the trading nations, their customers,
their political systems for long term business and friendship.
Today, it is not
"Capitalism" vs. "Communism" in international business and we should
not attach any ideological needs in doing business. Chinese government
does not let ideology mix in with business like the US and correctly
so. We all should focus on business, legalities, product and mutual
support instead. Nationality and ideology are must be distinctly set
aside. We also must not focus on HOW TO BEST CHEAT OR BEAT ANY OTHER
NATION IN PRICE but HOW TO BEST COMPETE IN SPECIFICATIONS, QUALITY AND
SERVICE first. Nations must have their right to be what they are and
so do we. This is a bad habit of US Government in trade negotiation
and only add more unnecessary delays to better business.
B) BE A RESPECTABLE
AND HONEST PROFESSIONAL:
Some of the mistakes made by businessmen that must change. For
example: Americans tend to bluff, try to out-talk or even threaten
legalities; Vietnamese may quietly resort to tricks or lies; Chinese
would be quiet and pretend; Japanese may say yes but may do things
differently, etc. All of these old habits must be removed from our
mind in doing business. We must adapt the discipline of doing our work
professionally and correctly at all times without the use of any of
these tricks, lies or pretense.
Most people are easily be
dishonest, manipulative, etc for business. This is not effective and
an easy way to business suicide. Americans used to be honest but not
anymore for many reasons. We should not copy their tricks. We must
learn to use knowledge and discipline and maintain the inner strength
to be professional, courageous, and determined. International business
is one without interfacing so people can be much more tactful with
words, tricks and mental manipulations. Knowing the battlefield, there
is no reasons to be shaken and no reasons to be dishonest either. Be a
honest professional will lead to success farther and wider.
C) PRICE FOR MORE
BUSINESS, NOT TO KILL PEOPLE.
This is one of the big problems with American business mentality and a
shallow economic of thinking and abuse of the people. Pricing is
not to exploit as much as possible first without thinking or long term
strategies. It leads to the eventual loss of competitiveness.
This behavior should not be used in both international and domestic
business. Pricing is a critical decision that must base from important
data, analysis of the payees' side especially when it is your own
people and your own economy. An economic matter is not static but
process and a circulation of forces. Weakened consumers will weaken
both the selling company and the nation itself.
Most business minds
will follow this habit, which caused American to lose much of their
businesses in the world; Many Vietnamese like copy this habit and will
not be successful; Pricing must be treated as a strategy with careful
knowledge of the market and future; It is based on the nation or
people to whom we sell and not based on what we think it is worth;
"Hit-and-run" tactics will be an end to the business itself sooner or
later. For domestic markets, this policy weakens the economic strength
of the people and the nation and should not be encouraged. Pricing
must be based on (1) Mutual growth support (2) Long term planning (3)
Absence of adverse consequences (4) Increase or solidify business
first (5) Multiple product plan vs. single plan to make up for low
profit - if it is such.
D) WE MUST ADOPT
NEW ATTITUDE ABOUT BUSINESS AND OTHERS NATIONS:
This may sound like a social relationship slogan but it is one of the
best economic strategies business professionals must fully develop. It
seems easy but will take some practice to develop. Americans find it
most difficult to learn how to be objective, respectful, supportive,
scientific and simply honest with trading partners or consumers. Don't
need to try to cheat. Be factual, respectful and always well-mannered.
With a new attitude, one will find that everything we do with others
and for others will begin to change from within. Such attitude is an
effective long term economic strategy whereas all contrary attitudes
will create nothing but disrespect even hatred from our customers, who
will eventually find ways to bring us down for good.
Americans are hardly taught in school or at home to be thoughtful in
their mind and their attitude about others especially when doing
businesses. Everywhere they go, they are care less about others. Inner
good thought and outer display of mannerism, styles and language are
critical in business internationally and domestically. They prepare us
to be better person and better businessmen in all situations: When we
are right or when we are wrong, people will always respect us and
cooperate with us. They never want to harm "good people" as they know
it. This is a simple but a cost-less economic and social strategy one
can buy. Without it, no matter how nice or how smart we are, one will
cultivate latent or open enemies. Once we are able to get rid of such
mentality, we will begin to see a new formed respect and support by
others without costing us much.
economy continues to show us that we must change our mentality, change
our ways of doing business and our views of other people and other
nations. No longer should one country seeks to use its glamour and
arrogance to impose and manipulate the people and the system of other
nations but to be open, honest, respectful and supportive of the
customers or of the nation in a professional manner. No single
economic theory or ideology proves to be valid and the US doctrine
that "to make a small wealthier group wealthier so that the nation can
benefit" or the capitalist is no more than a business tactic to weaken
the nation for their personal interest.
3) More comprehensive planning strategies
means more details - not less
How can I plan to better prepared for the future?
A) WORKING WITH
PRODUCT SPECS, PRECISE LANGUAGE AND CLEAR DETAILS
- NOT SLOGANS, NOT PRETENSE AND MANIPULATION. The sign of decline or
weakness of an industry or business is the use of manipulative but
dishonest languages or behaviors. These are known in VN and even US
and with similarities in human behavior. Dealing with product specs,
using precise language with clear details are the best. With our
without the sales, we already obtained the respect, reputation. And
this does not cost any extra marketing.
Within the business
groups, these problems persist once their economy weakens. But
to rebuild our industrial foundation, we must rebuild our behavior at
the same time. It's not hard to be clear, honest, professional by
learning to deal or market over specifications and quality details. In
our information world, this takes less time and less marketing cost.
Ironically, this problem is well-known in either very modern nations
such as the US and very undeveloped nations such as Africa. The only
difference is the level of sophistication. This means that it is much
harder to detect in modern nations than poor ones as these crooks are
a lot smarter.
B) NO MORE HIDDEN
CHEMICALS, AND NO COUNTERFEITS.
Dishonest operations will
not last long. The use of dishonest schemes above are cheap tactics
that will ruin the nation and the industry.
This problem is more
prevailing in developing countries. Counterfeits, hidden chemicals,
cover-ups and other fake approach to business must not be attempted
and that government must actively prosecute these illegal acts fully
for the protection of the people and the national interests. These
illegal acts bring very little benefit but cause long term problems to
C) EVERY PRODUCT
OR SERVICE MUST BE CUSTOM PLANNED WITH ITS OWN
STRATEGIES AND OBJECTIVES.
Once policy and objectives are set, we have to learn to treat every
small items with a build-in strategy, cost-efficient mechanism then
inter-relate all of product lines into a comprehensive system with
clear and effective working processes. Planning starts from the bottom
and foundations - No longer from the top only.
Conventional planning is
"top-down" and leaving individual dept. to plan each item. This must
be changed. The better method is that 1st, Top Management
prepares objectives and design product/service layout; 2nd, individual
dept must plan each item/service to meet objectives; 3rd, both
management levels to set up execution plans and strategies.
Comprehensive approach is necessary today.
D) CREATING A
3-DIMENSIONAL MAP OF YOUR PRODUCTS, SERVICES AND COMPANY:
Most companies are over-confident at the beginning and choose not to
create, visualize and plan a 3-D model for themselves. A 3-D map
visualizes the processes, relationships and moves or changes we can or
must make to develop our products or services. Managers and
supervisors must be accessed to it so they know how the internal
mechanisms operate therefore making better decisions in times of
problems. This save time and money for the company.
Creating a 3-D image of
your INTERNAL PROCESSES of how each product or service means to your
company (if yours is a product company) or how each office and
department inter-relate to each others (if your company is a customer
service or government service one). Next, create a hypothetical event
or occurrence to one of the product or department and see how the
chain reactions took place. This management or operation model will
help us to organize and adapt to changes or services and thereby
improve ourselves. This will be useful for today's economy.
starts from the top and execution will be made at the line level to
meet objectives set by the top. This should be changed in modern time.
Planning from the top may involve only a framework, principles and
objectives. The mechanism and process may also be installed but in
today's economy, to be successful, each individual department,
product/service must also be comprehensively examined and planned. The
lacking of planning at this level caused a big organizations such as
US Postal Service, EBAY and even DHL , TNT and UPS failed in some of
Creation of a "Safety Net"
Worst-case Scenario Planning
safety nets can be created without costing money
A) Creating a
Worst Case Situation and pre-set planning parameters based on such
case to test your own financial capability and management structure
In today's economy for US,
VIETNAM or others, with faster movements and with much easier
interference or competitions by others, worst case planning should be
in place. It is an assumption and test of our financial and management
skills and strategies to withstand such event. Remedial parameters may
vary and space is limited to discuss details here. Your company must
be able to withstand such event and to carry out successful
Contingency Plan based on such Worst Case Scenario: Finance and
Management changes: Creation of a SAFETY NET plan
Secondly, during such
event, what will be the changes in financing and management we must
face? Whenever possible, a SAFETY NET plan must be in place and with
some anticipatory tests for feasibility of such plan.
C) What is Worst
Case Scenarios for Agricultural Crops considering certain degrees of
high risk in natural disaster?
Agricultural crops are a
harder to plan but it is NOT impossible. Details were already
discussed in our previous chapters. In summary, it is c combination of
(1) Support by products (2) Other crops within our VINAREX
agricultural cooperative (3) Crop insurance (4) Better technical
planning and preparation, etc.
SAFETY NET planning of
possible worst case scenario is necessary in today's economy and must
be done above and beyond other precautionary measures by creating
other alternate income sources, other support plans.
New Approach to Cost Control Planning
Create and be creative -
Not cutting products or services
Why this approach to cost
control is better than to trim works, to trim services and to trim
ENFORCEMENT CONTROL METHOD: Cost control not by cutting staff or
services but by creating additional support or contingency
income-producing operations (no matter how small) to make up for
Typical US companies will
cut cost via PRODUCT QUALITY REDUCTION or CUTTING SERVICES, etc. These
are a wrong approach to the problem. We would advocate the cost
cutting method by CREATING ADDED INCOME via OTHER businesses or
services that do not require added investments. This is a smarter move
because (a) If no cost cutting needed, we receive added income (b) If
cost cutting needed, we use these added income to cover without
cutting product quality or services
B) Cost control via
CONTINUOUS MARKET EXPANSION PLAN and not by cutting workers.
Typical US companies will
cut workers and Vietnamese companies will tell workers to work for
less. Both approach will cause problems. We suggest that
companies to start to expand marketing either VERTICALLY (with other
support products) or HORIZONTALLY (export to other nations, etc)
C) Cost Control
via ORGANIZATIONAL NETWORKING, SOFTWARE and TRAINING and not by
cutting materials, workers or products
Modern economic management
also requires us to change how we organize, network and smart
development of software to cut cost. Effective networking by combining
resources, group services and better planning to achieve efficiency.
In the absence of an existing group, we must develop cooperation with
outside organizations or effective use of remote/internet means.
Cost control methods need
to be changed totally in today's economic changes where events can
occur faster with rippling effects across one's nations. Conventional
cost control methods of cutting expenses, cutting product lines,
cutting workers, etc. are not as preferable as the new approaches
outlined above. These strategies are intelligent and non-impacting
upon the company.