August 2014 Tk. 100

cover story PASSING Rabindranath THE TORCH Who tried rural banking The Next Generation Taking & use of technology Over Family Businesses

Today’s youths need mentoring CSR for business A Confused Reality?

‘Values are stronger than rules in banking’ – Ali Reza Iftekhar

LETTERS TO THE EDITOR

I do not agree to the fact that some 90% of the mangoes sold in the market Write to us at are formalin treated. How is that even [email protected], or send us a note on our acceptable? As far as I know, if the Facebook Timeline at formalin story is true, the numbers www.facebook.com/icebusinesstimes. could be around 50% to the highest. It is the season for mangoes, and if sellers Be sure to visit our website opt to sell old mangoes under formalin, for online viewing then the rest of their seosonal sales at www.icebusinesstimes.net would be relied on formalin. How is this

even beneficiary to the sellers? July 2014 Tk. 100 Shahed Mahmood, Chittagong

cover story I am just sharing my knowledge, GROWTH because I think it is related with your WITHOUT cover story. I once visited one of Islami INTEREST The state of Islamic Banking Bank Manager with my father. Father in Bangladesh asked him about the interest rate that they offer, although Islam prohibits Pains and gains interest. The manager then said, that from the budget their interest was different from other banks, he said it was dependent on the Pool of manpower needs market bank’s ability to make profit after connectivity investing our deposits. So it was not - Dr. Abdul Mazid constant and so did not violate Islamic laws. I did not understand that fully. But ‘Bangladesh is an Important Country for Development Potential’ I think it is because both the bank and the customer shares the risk and benefits, where in other banks, it is always the bank. Anika Tasfia, Bashundhara

Vol. 4 No. 12 August 2014

Great story on Pubishing Industry. I guess the advent Publisher & Editor : Abul Khair of technology is partly Executive Director : Nawshin Khair responsible for the current Managing Editor : Nobonita Chowdhury story of this industry. Who Executive Editor : Khawaza Main Uddin woud take the hassle of Great photos, but really Editorial Assistant : Wafiur Rahman buying books when you can depressing story. Hard to Ahmed Noushad read digital copies believe that sellers are Chittagong Correspondent : Md. Shah Nowaz exploiting this seasonal treasure anywhere like this. Very bad. I hope there Designer : Sk. Yeahhia will be strict regulations. Head of Marketing : Lucky Begum Assistant Manager Marketing : Farha Tani Finance & Accounts : Md. Abdul Alim Sales & Distribution : Md. Manik Mollah, COMMENTS Md. Raju Hossain

Published by Abul Khair on behalf of ICE Media Limited, Kushal Centre, Plot 29, Sector 3, Uttara C/A, Dhaka- 1230 and printed at M.K. Printers,189/1, Tejgaon I/A, Dhaka-1208 Editorial and Commercial office: Bengal Centre, Plot-2,Civil Aviation. New Airport Road, Khilkhet, Dhaka 1229. Editorial Queries: [email protected], [email protected] Advertising, Sales, Subscription and Distribution: 01711339587, 01819412035, 01920335953, 01716783698, 01675736760 Tel: 880-2-8901132, 8901135, 880-2-8901202 Fax: 88-02-8901205 E-mail: [email protected], [email protected]

Creating Opportunities

DIMENSIONS OF FESTIVAL ECONOMICS

By Hossain Zillur Rahman*

It has been seen in the clothing industry or personal ware industries that the sale volumes are targeted to the festival periods. Over the year, a significant portion of the sale volume is during this time. The festivals are a big economic opportunity. We are also trying to increase the number of festivals, such as Pohela Boishakh, Valentine’s Day, Ekushey February and others to keep consistency in the volumes. Some are targeted to popular segments, i.e – youngsters for Valentine’s Day. The religious festivals are the most important and enormous. I think such economic opportunities should be exploited. It is only valid if the consumer tastes are taken into account. If they are not, then foreign products would overpower local products. The opportunity is local, but the buyers have a global taste. If the local products are up to mark, then the opportunity persists.

10 ICE BusinessTimes August 2014 Creating Opportunities

As far as Boishakh and other festivals are The festivals are a big concerned, the local furniture is also desired by economic opportunity. We the consumers. The food industry is also strengthened during these festivals. Tourism are also trying to increase packages are also emerging during the festivals. Linked to urbanisation, tours are not the number of festivals, just sightseeing new destinations, but also such as Pohela Boishakh, returning to rural roots and family reunions. The holiday concept is taken from the West and Valentine’s Day, Ekushey slowly picking up. Domestic tourism is progressing but the potential is barely being February and others to scratched. keep consistency in the Gifts industry is also another aspect that gets a boost during the festivals. In the west, toys are volumes. Some are a source of huge incomes, an idea that surprisingly has not picked up in Bangladesh. targeted to popular It is a vastly underdeveloped industry that segments, i.e – youngsters needs to be prioritised. Children’s segment is another untapped opportunity – chocolates, for Valentine’s Day cards, toys, etc. A lot is left to be explored from other countries regarding these. Books and publications have become a diminishing industry, it needs to be rejuvenated. Entertainment industry can also be put in the festival economics bracket, including cinema, To tap festival economics, we have to induce television and such. So we must come out of quality consumption among the consumers. the notion that clothing is the only economic In the global world today, consumers want opportunity made possible by festivals. choice, quality and affordability in Industries such as tourism, gifts, gadgets, consideration. Local production houses have entertainment also hold immense potential. to address these consumer concerns if they The backward linkage industries also get are to establish an economic base. You helped. The domestic entrepreneurs must come cannot simply expect people going for local forward in this respect, but one weakness products because it is local. Patriotism does witnessed is the lack of creativity and lack of not work that way. investment in innovations. There is opportunity here to go beyond At the end of the day, the principle of spiking sales volume – but also to establish consumers being kings has to be borne in mind. deeper success and standards. Companies This must not be in a cynical manner, but like Aarong strive for constant investment because their insistence of the three and innovations, which is why they have a requirements will drive entrepreneurs to solid niche market. If production houses do progress. It is an opportunity for small and not invest in innovation, then they will fail medium entrepreneurs, younger groups to try to go beyond an initial novelty value. The and gear the economy forward. most important demand from people is change. Originality is important. Along with the three aforementioned qualities, it should be kept in consideration. A group of boutique houses, pitched together to create Deshi Dosh, a group effort that was commendable and was an interesting branding idea. Such retail fashion houses are progressing, but the growing of bigger brands such as Aarong are very rare. Festival economy should come *Dr. Hossain Zillur Rahman out of the onetime income mentality and a former adviser to the should sustain throughout the economic caretaker government, is cycle. They can be tapped to strengthen currently Executive Chairman design and marketing groups. at Power and Participation Research Centre (PPRC).

August 2014 ICE BusinessTimes 11 Cover Story

PASSING THE TORCH The next generation taking over family businesses

By Saiful Hasan Translated by Wafiur Rahman

Many Bangladeshi business entities that thrived on individual initiatives have come a long way, and are now facing a transition. Are the successors ready to lead the businesses to the next stage or how would a transformation be possible?

12 ICE BusinessTimes August 2014 Family Businesses

Photo: Ali Rehan Pushon Generation gap as a widely known concern of respondents intended to pass on the human society, is a bit more relevant to management of the business to the next business people, given the distinct nature of generation, a further 25% the ownership, and challenges of each age and the importance of not just the management. But more than a half credibility that an entrepreneur has to earn of them were unsure whether their children had himself/herself. A potential communication gap either the skills or the enthusiasm to do this between parents and their children poses risks successfully. G to the sustainability of the businesses, However, the survey report titled ‘Bridging the sometimes involving conflicts within the Gap’ said, ‘there’s no doubt in the ambition of family. So, handing over responsibility of the next generation who has decided to go into family firms to the next generation remains a the family firm.’ Of the respondents, 86% tricky issue as difficulty in succession can wanted to do something significant and special hardly be predicted. when they take over, and 80% have big ideas for Bangladesh is currently undergoing a change and growth. ‘Some want to launch new transition on its social, political and economic products or ventures, or make changes to fronts after four decades of its independence. where and how the business operates; others The businessmen and entrepreneurs, who had want to invest in new technology, and explore spear-headed the country’s private sector over new approaches to marketing using social the years, are getting old, or phasing media,’ it added. themselves out of everyday business activities. In a country of short history of Some of them have already gone to retirement. entrepreneurship like Bangladesh, the new Their sons and daughters are in the process of generation businessmen have to answer some either inheriting properties or taking over the critical questions the moment they intend to family businesses. So the private sector is join business, or are in the process of taking going through a transition of transferring one over family businesses. Apart from equipping generation’s batons of sprint relay on to the themselves with necessary skills and attaining successors. It’s a turning point of almost like leadership capacity to withstand pressure, they ‘make or break’. have to look at the overall business A 2012 family business’s survey by environment including the visible and likely ‘PricewaterhouseCoopers’ found that 41% changes for taking prudent business decisions.

August 2014 ICE BusinessTimes 13 Are they prepared for the job? Transitions in businesses often lack a pure professional approach, devoid of emotional attachment and claims of divine rights, particularly when they are owned by families. Most entrepreneurs, they themselves admit, do not want to realise that there is a big difference between a prince replacing a king and a son becoming CEO in his father’s organisation. As a result, fathers place their children in top management without any due diligence followed and experience gathered. This may be the result of a feudal tradition that has etched into their psyche. But, no doubt, the new generation is better skilled and well-educated compared to their predecessors, and also has immense potential with advantageous position to be bigger and better. What they lack is the much-coveted experience and the ‘Their world is much bigger than import company is now making wisdom to turn the tables in their ours,’ he said, ‘they have access to unheard-of losses. In a number of favour, unlike their parents who technology, which they also know well-known cases, family rifts are acquired skills and knowledge from how to use. I know that our children causing companies to break away experience. will go beyond our successes and go into fragments. Some entrepreneurs Some first generation entrepreneurs, far.’ are skeptical as to the actual number acknowledging the reality, observed Niaz Rahim, Director of to second generation-run that the country lacks skilled, Rahimafrooz Bangladesh Ltd, corporations that are successful. capable and professional executives stresses on the importance of Dr. Ahsan H Mansur, Executive who could run business on behalf of grooming the second generation for Director at Policy Research Institute the entrepreneurs. Trust and their tasks ahead. ‘We have to see (PRI) says some second generation credibility are something – as whether they are ready or not. But it representatives are experiencing required for corporatisation of is also important to see whether we success, despite not being up to the business entities – that is still have groomed them properly or not.’ mark. ‘I believe that they have what broadly missing. In fact, most Rahimafrooz Bangladesh Ltd has it takes to take business to the business organisations suffer due to been established on a set of values, highest target growths. Today’s corruption and governance crisis he said. ‘The capacity of how my entrepreneurs are smarter, more despite the best wishes of the sons will work here is directed in the educated, and realistic. They will authorities concerned. In such organisational structure. They may easily adapt to their respective circumstances, the owners of inherit this company by lineage, that business environments. What is businesses tend to rely on their own may also be their privilege – but that needed for all this is professionalism blood relatives. In Bangladesh, the does not make them company in the institutions.’ common notion of mixing family leaders by default.’ He explains that, Rubana Huq, Managing Director of with business always persists. That ‘My son works here on the company Mohammadi Group, echoes the is exactly why blood ties take floor, not getting a penny more than same sentiment. ‘I feel that they are precedence over experience and what his peers are getting. That is still not ready to take their rightful ability. how I have raised my sons. But that places,’ she said. ‘We must get out of Aziz Khan, Chairman of Summit is not the case in the other the mindset that our children will be Group, has a difference of opinion in companies. Serious discussions the torch-bearers of our companies. this regard as he is optimistic about need to be raised to overcome such If we live under this illusion, then the success of the second generation challenges.’ we will be stuck indefinitely in an entrepreneurs and businessmen. On the flip side, a Chittagong-based abyss.’

14 ICE BusinessTimes August 2014 Family Businesses

was becoming popular among the Many businessmen lower-middle people, and of course in the middle class mind. This was thought of also accelerated by the privatisation in the 1980s, the boom of the business as only garments industry which turned from Sri Lanka to Bangladesh. It is trading in the late largely due to the successes of the 80s. But some RMG and agriculture sector that helped Bangladesh become a nation businessmen took of entrepreneurs. The first-generation relied heavily exceptions and on trading, where it was popular to import goods and sell them in local proved them markets (it is still the case though). Many of today’s successful wrong. They were industrialists had begun through trading as well. They tried to venture perceived to be into the unknown, in niche businesses. They had realised that if risky, but their they did not take initiatives to establish themselves, employment resilience silenced generation, economic development and sustainable business would many critics. remain distant dreams. Their Rubaiyat Jamil comes from one of the far-sightedness enabled them to prominent business families of invest in other industries. As Bangladesh, same family that brought to us Bandbox. His foresight enabled agriculture was overshadowed by him to expand business to oher industrial output – an expected endeavours and therefore, one of his trend in time of economic take-off – results was The Cream and Fudge the services sector, too, came to the Factory. fore as the next destination for making investment. Since the 80s, pharmaceuticals, banking, insurance, real estate, cement and other industries had started off modestly, but grew in course of time. This is how the backward linkage industries of the RMG sector were established. Looking back Many businessmen thought of Steve Jobs had once said that the business as only trading in the late entrepreneurs are the real heroes in 80s. But some businessmen took any economy, who do not change exceptions and proved them wrong. themselves only, but also what is They were perceived to be risky, but around them. They are different their resilience silenced many from others, and positioned well critics. Many say that if risks were above the rest. not taken in the RMG sector back Prior to the independence, the then, there would have been no people of this region lacked in the business in Bangladesh today. The business acumen needed to succeed. common notion of ‘business The disadvantageous position was bringing profits’ was taken over by also attributed to the oppression by the ability to take risks, persevere, the West Pakistani rulers. After create employment, take Independence, the challenges and responsibility and then reap potentials to succeed economically maximum benefits. Many opine that became enormous. The need to do it took more than three decades to business, apart from searching jobs, get rid of the primary illusions.

August 2014 ICE BusinessTimes 15 The leapfrog in the Bangladeshi businesses. The corporations. Some might have democratic environment for doing begun before Independence, but they 90s business played a very conducive usually experienced success after Investment is required to kick-start role in terms of accelerating 1971. any business, be it formal and economic growth. Both M Saifur It is said that the state does not informal investment. It may be Rahman and Shah AMS Kibria, make entrepreneurs, except individual or joint ventures. By the finance ministers of the BNP and the providing supports and incentives; 90s, there was a trend of doing Awami League regimes respectively, they make themselves, in turn business by emulating business took initiatives to support and leaving their marks in the economic successes of others. The expand local businesses. The development. In Bangladesh, the money-rollers and the talented combination of business resilience aforesaid business entities and entrepreneurs both were uniformed and state incentives and inspiration, thousands of others have been in their tendency to ‘not just work, according to economists, surmised carried by the first generation, and but provide work’. This had marked the 90s era of doing business. now the time has come for them to the 90s as probably the most Bangladesh has been gifted with pass the responsibility on to the successful decade in terms of Square, Beximco, Abul Khair, Akij second generation. flourishing of entrepreneurship. But Group, S Alam, ACI, Pran, Anwar It is always challenging to hand over the decade also gave way to the rise Group, Transcom, Jamuna Group, the responsibility from one in political businessmen. Bashundhara, Partex, Summit, generation to another, or in other In fact, what started in the 80s grew Orion, Envoy, Rahimafrooz, East words to take over the charge of substantially in the 90s. Given the Coast, Multimode, Karnaphuli business by children in a world constraints and red tape Group, MGH Group, Bengal Group, different from the one of their bureaucracies, the resilience of the Mohammadi Group, Mir Group, parents. So, are the representatives businessmen overcame all Hameem, Gemcon, Rangs, BRB of the second generation capable of challenges and turned Bangladeshi Cables, PHP Group, Meghna, City taking the helms and ready to face businesses into smart institutions. Group, Pacific Group, Nurjahan the unforeseen challenges and Many of such institutions today are Group, Nitol-Niloy Group, Ifad, continue to contribute to business the brand ambassadors of Dekko and plenty of other such and national development?

Samson H Chowdhury created Square and the rest we all know is history. His legacy is carried on by his family members, the result of which is one of the biggest Bangladeshi conglomerates today

16 ICE BusinessTimes August 2014 Family Businesses

Professionalism out Even though companies have mushroomed in the last four ‘If the employees of of comfort zone? decades, the number of bonafide company do not feel According to an article in Wall Street organisations actually needs to be Journal, two areas in particular counted, according to Zaid Bakth. this passion as seem to hold the most potential for The ones in Bangladesh are more passed on from the missteps in the life of a family into achieving profits, rather than business: getting family members strive for organisational leaders, then the into the business and working out development. Without investing in leaders need to be successions in leadership.The management, it may be possible for Economist magazine wrote: ‘Of one generation to sustain their asking, why not?’ course, the second and subsequent businesses, but it would become generations have a choice. Keeping difficult for the next. The biggest the family in the business may mean challenge of the Bangladeshi disappoint the workers and continuing both to manage and to businesses is to get out of the feudal demotivate them. A professional own it—or the family may own the business practices and opt for leader is enough to bring the highest business but play no part in its professionalism, for the sake of the yields. ‘If the employees of company management.’ economy and the entrepreneurs do not feel this passion as passed on However, there is a lack of good themselves. from the leaders, then the leaders governance and the private sector is ‘Serious problems relating to family need to be asking, why not?’ said not immune and allegations of business ownership tend to be less Steve Jobs. corruption are there, too. In common when the firm is The companies must also get rid of family-owned businesses, some first-generation owned and the adhoc tendencies. Despite its owners may have the luxury to managed,’ explains Jeremy limitations, Beximco is running in a consider their corporations as their Shulman, founder and senior corporate structure, as is personal kingdom – whatever they partner at Leeds-based solicitors Rahimafrooz, Square, Summit and a say will constitute as rules of the Shulmans LLP. ‘Problems often arise few other organisations. There are a company. Such attitude demotivates when second-generation family few hundred companies, which have employee and creates a sense of members enter the business or when the bulk of the money to invest in insecurity among them. The point of ownership needs to be transferred.’ future, but they are still run and accountability for both employers He observed that most owners do dominated by individual owners of and employees in a healthy manner not have a plan to hand over the first generation. These becomes non-existent. Experts responsibility of firms to the next businesses are likely to be divided recommend a proper corporate generation. ‘Some struggle with the among successors instead of being culture, something which is still not very idea of letting go of the reins. run as one corporate entity. present in most companies even But in family businesses it's often Engineer Kutubuddin Ahmed, today. easier to plan succession, because Chairman of Envoy Group and one of Dr. Zaid Bakht, an economist at ownership stays within the family,’ first generation businessman, said, Bangladesh Institute of he added. ‘If we are to possess Tata-Birla Development Studies, said that The Tatas, the Birlas, Mittals, industries of our own, we must have there are no efforts visible to ensure Mahindras and Ambanis in India faith in management. Owners will a work and integrity balance in the have all sustained due to their have to make way for professionals companies. ‘The first generation embracing of change. They have to yield profits. Not only is this businessmen disliked the idea of allowed people outside of their needed for the long term benefits, decentralisation, which ensures a family to take over company but also for the growth of the professional decline in the long run, leadership. None of Mahindra’s businesses and industries as a affecting goods and services delivery children are in business, even whole.’ and its quality,’ he pointed out. If a though the Ambani brothers have Rubana Huq says that businesses company goes public in other split their businesses being run by may be increasing, but countries, in Bangladesh the family career professionals. Dr. Ahsan organisational structure is not interventions and participation Mansur says that business-related expanding. ‘Corporate governance is increases. Most of the businesses transformations in Bangladesh have a must for a company’s here are of private and begun only recently. Integrating sustainability. Companies usually proprietorship models, running in corporate structure and employee do not invest in mid-level pseudo-feudal practices. The ownership in the companies are managements, which are highly owners’ say, as contrary to proper catching up. If leadership is not unfair, as they are the spine of any business practices, is the last word, instilled among the employees in a organisation. They are making huge unfortunately. company, it would effectively losses for this regard as well.’

August 2014 ICE BusinessTimes 17 The road to entrepreneurs are to succeed, they Bangladesh may not have any need to have foresight, ambition and Warren Buffett, Bill Gates or transition ahead objectives, as well as imparting Dhirubhai Ambani, but it has Many companies have been values, principles and ethics onto companies that can be as successful established in Bangladesh during their children.’ as they are. Moreover, there are the last 43 years, but there is dearth Only 12% of family firms make it to a individual successes of of companies whose turnovers are third generation, and the moment of entrepreneurs numbering hundreds worth billion dollars. A reputed transition often proves to be the of thousands.Some of them have led business daily had reported a year moment of truth as well, observed the growth of reasonably large back that only two companies were the ‘PricewaterhouseCoopers’ survey companies. Still, their potentials are close to the $2 billion mark, and 3-4 report, which added that bridging enormous and the second companies in the $1 billion mark. the gap ‘requires clarity, generation has to take up challenges But economists say that there are no communication, and above all, to succeed. billionaire companies in thorough planning’. Bangladesh, but existence of billion dollar loaned-companies are there. However, if these companies are nurtured and can sustain their business in the long run, the entrepreneurs would see a bright future of Bangladeshi businesses ahead. Dr. Zaid Bakht is a bit pessimistic about the future. ‘Joint ventures with foreign companies would have ensured a better prospect of growth and sustenance but the one-man-run companies can hardly make us optimistic about their prospects. I am not sure if the second generation would come out of that kind of psyche,’ he added. Dr. Ahsan Mansur differs, saying that there is a shortage of age old companies around the world, and examples of family-run firms taken to the highest level of success are very rare. He foresees a lot of mergers and acquisitions in the second generation businesses and said, ‘Times has come to think about the businesses to run by the second generation.’ Aziz Khan also admits that time has come to change the mindset of the local companies.He says that the children of business owners cannot work elsewhere, or do not want to. ‘They cannot do so because the society does not view it in positive light. Nobody questions where Warren Buffet’s or Bill Gates’ children are, but if my daughter works elsewhere, both she and I will be subjected to unnecessary questions‘. Niaz Rahim suggests that a weak Tamara is the executive trustee of Ayesha family culture constitutes a weak Abed Foundation and the director of BRAC Banskhali Tea Co. Ltd, and the torch bearer of business environment. ‘If BRAC, Sir Fazle Hasan Abed’s creation

18 ICE BusinessTimes August 2014 Family Businesses In their Own Words How are they preparing themselves for taking over?

individual and collective human resource development. The company was doing business with, high level of design, due to the nature of the crafty products. Operational skills were needed at the production level. And intriguingly, that skilled manpower was developed from within Otobi. As the pioneer in the industry, Otobi had to create its own set of skilled workforce and manpower, extending up the ladder of management. Coming fresh out of school, when I joined the company with an enthusiastic set of ideas for growth and diversification- and an acquired inclination towards institutionalisation, structure, and strategic orientation for the company- I found things appearing more critical than I thought they would be. The heavy investment on developing manpower and set of operational skills over a very long period of time was giving yield. But the company was dependent on the owner in terms of direction, every bit of strategic nitty-gritty, and growth aspirations. For the sake of sustainability and I’ve found things appearing growth amidst the emerging competition that I saw while taking charge of the company- I faced my more critical than I thought first big challenge. And that was to establish an empowering structure they would be and to infuse brain down the muscle line of the company which was Aminesh Kundu functioning almost all on who succeeded his father late Nitun Kundu in Otobi Ltd motor-skills, relying heavily on the single brain on top. I took my sincere When my father started Otobi, it was too futuristic. Everything had to be shot to re-strategise the business for very difficult to start an started from the scratch. growth, diversification, and entrepreneurial venture in The base of the business was high sustainability. Along came a lot of Bangladesh. There was no level of design skills that my father challenges and I tried to overcome upstanding infrastructure, and had in him as an artist, and things those with my own set of strategic venture capital was very limited if that he acquired through his standpoints. In business, a mistake not non-existent. Particularly for the academic background in fine arts. It is a strategy that did not pay off, and furniture industry, the concept of was more than the innovation in I had my mistakes too. This is an organised retailing and products or machinery. It was to a ongoing process and the effort to material/design innovations were large extent the culmination of attain the long-term plan will go on.

August 2014 ICE BusinessTimes 19 decision-making is a lot left to be desired for. Many businesses have already moved on to our generation. I believe that it depends on how we are brought into the business. I grew up being in the office, finishing my after-school homework in office. I have been working for 20 years, out of which the first 10 years was spent on moving up the ladder from a management trainee to higher positions. After 10 years I became a deputy managing director, and became managing director 5 years ago. Having a last name does not help, but the next generation does bring a lot of interesting ideas to the table. The first generation learned how to do business while doing business, which started from trading and then evolved into other ventures. There were lots of initial struggles, so the second generation grew up around some of those struggles. Having gone through proper education at foreign universities, they have learned elements which were exclusive to the West/India/Australia. Coming back home, they brought with them the The second generation needs ambition to carry those elements out in Bangladesh. So yes, our generation is ready to take helms in space for independent our respective fields. I am privileged for a vast network of decision-making capable personnel, whom I can recruit for every venture. That is Nazim Farhan Choudhury something I credit to my family Managing Director, Adcomm Ltd lineage. A leader is someone who will envision where the company The elders look upon the next but in business and day-to-day has to go. The employees are those generation with a look of ‘what do operations, we have operational who will carry out those visions.We you know?’ and similarly the heads who takes the business have a managing committee where successors, feeling the lack of decisions for us. We have several everyone has a vote, I also have a space/independence, feel that endeavours, so in Adcomm Ltd, i.e., single vote and decisions are based pressure from them. That pressure Mrs. Chowdhury has the final say, I on committee votes. They will only often adds to the relationships. In have the final say in our radio look at the owners to set the our society we look upon our elders station, and other such operational guidelines. with respect, not going against their heads for the other concerns. They I think, what is important in decisions, so there is a dichotomy in know what to do and how to take business is value, not merely profit. working here. decisions. This is something which We are all for the longer version of Lots of companies today have has not only worked for us, but also business. In 20 years, I have seen figured out that professional for major Bangladeshi companies various individuals opting for quick management is the key to such as Square. So the second profits, but they perish after a few development. In our organization, generation has the element of vision years. The big agencies are the ones Adcomm Ltd, the family members to take their companies forward, but who sustain in the long run, thanks have the final say in board levels, the space required for independent to their integrity.

20 ICE BusinessTimes August 2014 Family Businesses

I have worked with general employees on the floor for a long period of time

Faraaz A. Rahim, Manager International Business, Rahimafrooz Bangladesh Ltd

the top management is disastrous. But I believe our families do that out of necessity, given the lack of loyal and professional employees. The ones who are efficient do not often turn out to be ready. So it is a matter of perspective, which we must get out of. If the point of view is not professional, then it paves way for It is probably interesting to note how my year-end dividends – but at the corruption. It is imperative that the I got into the family business. Just end of the day I am evaluated just businesses embrace corporate as any other employee got recruited like any other employee. structure. Capable personnel must in this company, except for facing an On whether our generation is ready be given their positions. The owners’ interview board. But I have worked to take over the business, I would perspectives must also be changed, with the general employees on the say, yes, we have been groomed which is where we are ahead of our floor for a long period of time, accordingly. It is true that we lack predecessors. We are aware about learning from them. Slowly I got the necessary experience to glide corporatization, use of technology, promoted as a sales manager, now through and subjected to a globalization, etc. Establishing working as a manager for luxurious lifestyle, but reality lends institutional governance is also international business. I have not perspective. I have been taught by important for management received any privileges of being from my family to take responsibility development. Business is definitely the family that owns this company. when the time comes. We are about profit, but that has to be No one can become a board member mentally prepared. obtained through values. Profit of this company without having 15 Taking through family lineage is a without values is futile, but this years of experience. I may be a challenge for our generation. lesson has to come from the shareholder of the company, getting Without experience, being placed in families.

August 2014 ICE BusinessTimes 21 Successors of family businesses have exposure to better education Navidul Huq, Director Mohammadi Group

If you look globally, most of the businesses. We are more exposed to though we are in the company, we businesses are family businesses. education and business. have not received complete Control is not passed on to the next Successors have more education, authority. Our guardians cast their of kin, but rather through merit. It is especially business education. We shadows over us, taking those privilege if the handover is on the are more culturally tuned. No one crucial business decisions. So it basis of inheritance. Our generation questions our authority, entry into would only be logical to judge us is starting to come to business, and the business, our merit, etc. It when we reach that position. will keep on coming. It is not that would have been good for business We need corporate structure, 100%. risks are increasing as we are if the questions were raised Otherwise companies will not grow, entering business. We have not though. Successors are accepted incapability will rise. Corporate failed completely; we have our fair into the companies, and expected structure is needed to increase share of successes. Many are to do so. organisational effectiveness and conducting businesses successfully. You see we are exposed to family help run things smoothly. Both On the other hand, very few business from a very early age. We profit and value are equally companies here have been knew back then we had to take important. But values take corporatised. Even though some responsibility at some point. We precedence in business. I do not institutes instill corporate have been groomed accordingly, want to earn money in any manner. management, the business decisions becoming regulars in the company. This may not make my company the always come from the families. Most of the successors like myself biggest, but rather can make it, the We are in fact ready to take over have the same experience. Even best.

22 ICE BusinessTimes August 2014 Industry Development THE PRIVATE SECTOR A collage of Bangladeshi vibrancy

By Asjadul Kibria

It was in the 1950s when a remote village in Pabna saw launching of a small medicine factory. A young man named Samson H Chowdhury along with three other friends set up Square Pharmaceuticals in 1958. More than 50 years have passed by this time and Square Group has become a mother company of a set of enterprises – pharmaceuticals, textiles, readymade garments, toiletries, consumer products and electronic media. A leading entity in the Bangladeshi private sector, Square has also been a global brand in the meantime.

August 2014 ICE BusinessTimes 23 Also think about late Abul Kashem The private sector accounted for Khan, popularly known as AK Khan! 21.39 percentage points of the Eclipsing his own identity as a investment-GDP ratio at 28.69% in former minister of the erstwhile 2013-14 fiscal year. Only 24 years Pakistan period, AK Khan back, in 1990-91, the privates established himself rather as a sector's share was 10.27 percentage visionary businessman, points in the aggregate entrepreneur and industrialist based investment-GDP ratio at 16.90%. in Chittagong. He was the founder Over the years, the incremental chairman of Eastern Mercantile increase in investment-GDP ratio Bank, now the Pubali Bank, which is has been propelled mostly by the the first bank established by a private investment while the public Bengalee in the then Pakistan. He sector investment remained in a was also the founder chair of former range of 4-7%. Eastern Insurance Company, a What is this private sector? In a pioneer insurance company in the simple term, it is a major part of the then East Pakistan. Today, AK Khan economy that is not state-controlled Group has huge investments in and is run by individuals and textiles, jute, plywood, tannery, companies for profit and growth. In heavy electrical goods, shipping, other words, the private sector agro-business and encompasses all for-profit telecommunications. businesses that are not owned or And believe it or not! We have operated by the government. history of private initiative taken Companies and corporations that more than 100 years ago. Way back are run by the government are part in 1834, Lakku Mia in Farashganj of what is called the public sector. area of old Dhaka started trading of Charities and other non-profit hides and skins. His small business organisations are part of the entity is today's Anwar Group, a voluntary sector. leading conglomerate in the country. The rise of industrial and business Within four decades of entrepreneurs is the greatest independence, the private sector has reflection of the private sector. In turned into the key driving force of fact, the seeds of the emergence of the Bangladesh economy. Just look Bangladeshi private sector were at the investment-GDP (gross sown in the 1950s. Besides domestic product) ratio: It would be non-Bengali entrepreneurs like clear how critical is the role the Adamjee and Ispahani, a few young private sector in the economy. but visionary sons of this soil dared to set up their own business in a smaller scale. Over the decades, those small businesses have grown them as conglomerates. One of the private sector pioneers in Bangladesh is late Jahurul Islam who had no formal education in development economics and capital management, but he had successfully established a series of ventures. He set up the country’s first real estate company - Eastern Housing Ltd (1965). In 1975, he founded the Bengal Development Corporation (BDC), the first Bangladeshi real estate construction firm of international standard. Akij Group of Industries and Beximco can be named as two other leading players in the journey of the

24 ICE BusinessTimes August 2014 Bangladesh Private Sector

Bangladeshi private sector sector-led development. To facilitate businesses. A remarkable surge in the growth of the private sector, the the private sector had taken place in government began liberalising the the 1980s as ready-made garments trade regime in the 1980s. The factories were set up in Dhaka, liberalisation process got higher Narayanganj and Chittagong. It was pace in the 1990s. Control on import in 1960 when a small tailoring was relaxed gradually and import outfit, named Reaz Store at Urdu tariff structure was more The journey of Road in old Dhaka, started business rationalised. and served the domestic market, Since 2000, Bangladesh is moving the country's including the one in Karachi towards relaxation of foreign initially, for about 15 years. Later in exchange transaction. The private sector 1973, it changed its name making it introduction of floating exchange M/s Reaz Garments Ltd which in rate system in 2003 significantly through almost 1978 sent first consignment of opened the country's external sector 10,000 pieces of men’s shirts to while the tariff regime was relaxed four decades Paris. The readymade garment further under the guidance of sector (RMG) is now the largest international financial institutions. and a half is not export-oriented industry and fully All these have provided the private private in operation. sector certain space and a more definitely a Bangladesh inherited a bruised favourable and competitive economy after the war of liberation environment to grow. smooth one as it in 1971. Mills and factories were The journey of the country's private closed down, agricultural sector through almost four decades has faced and is production was interrupted and and a half is not definitely a smooth infrastructural facilities such as one as it has faced and is still facing still facing a roads, bridges, railways, power a number of hurdles, including transmission lines and telephone political instability. But at the same number of network were damaged. Moreover, time, successive governments keep there had been exodus of the market-oriented economic hurdles, including non-Bengali owners of factories and policy unchanged and such policy banks. backs the private sector to grow, political instability. Against this backdrop and for the though in an uneven field government’s political commitment sometimes. It is heartening to note But at the same to socialist ideology, Bangladesh that from small and medium witnessed nationalisation of all enterprises (SMEs) to large and time, successive these business entities. Actually, the heave industries, most of the newly independent country Bangladeshi industries are moving governments inherited a tiny manufacturing base forward. Leather, furniture, and 80% of the sector was owned by cosmetics and toiletries, glass, keep the the Pakistani business houses or steel, ship-building, battery, bicycle, state agencies. Only 20% was owned CI sheets, home textiles, market-oriented by the Bangalees and they were agro-processing, pharmaceuticals, mainly small industries. In 1972, frozen foods and handicrafts are economic policy more than 600 large, medium and some of the sectors that reflect the small enterprises were nationalised vibrancy of Bangladeshi businesses. unchanged and and 6 sector corporations were In services sector, too, private formed to manage and operate those players are increasingly dominating such policy firms. and expanding day by day. Banks However, after the political and financial institutions, backs the private changeover in 1975, Bangladesh telecommunications, hotels and started giving importance to the restaurants and medical services are sector to grow, private sector. During 1976-1980, a few to name. It is the private sector there was a massive disinvestment that has brought Bangladeshi though in an and denationalisation. Despite some brands to the global level and the fault lines in the operational level, `Made in Bangladesh' phenomenon uneven field the policy was to encourage private is clearly a special contribution of entrepreneurship and a private the private sector. sometimes

August 2014 ICE BusinessTimes 25 Philanthropy VISIBILITY OF RESPONSIBILITY CSR, a popular business concept but a confused reality

By Doulot Akter Mala

Many people mix CSR with by-product of globalisation of Also known as corporate philanthropy or charity while others businesses with enhanced visibility. responsibility, corporate citizenship, equate it with corporate governance In some cases, CSR is being talked responsible business, sustainable characterised by ethical business about more as a fashion or responsible business or corporate practices. If we accept charity as CSR promotional activity than standard social performance, CSR (corporate practice, it is nothing new in this part business practices that help maintain social responsibility) is thus unclear of the world, although the modern triple bottom-line – profit, planet and both as concept and practice. Some concept has come to Bangladesh as a people [Lotus Holdings]. conservative businesses consider

26 ICE BusinessTimes August 2014 CSR investment for expansion of their industries and employment generation as CSR. Businesses that are driven mainly by profit motive try to adopt CSR to meet survival conditions, especially in the export market and bigger firms use it as a tool to engage with communities to expand and sustain business. However, factors outside of the corporate world have also influenced perception of CSR. In absence of good governance, the issue of CSR becomes less significant, leading to compromise with business ethics and CSR culture. The corporate sector, unlike America’s, is not under compulsion to hold dialogue or keeping constant touch with formidable labour union groups and consumer rights associations for accommodating their demands. So, in Bangladesh, CSR remains voluntary affairs of the businesses, despite their varying objectives. The businesses – mostly family-owned and first generation – are somehow involved in providing services to the communities but their initiative and activities lack any definite policy and justification and transparency of the money spend which were taken from profit. success of a company, the so-called differences, in doing businesses, Tax authorities theoretically provide triple bottom-line with the goal serving the society, especially in incentive (rebate) for the companies’ being to positively impact society poor and developing country. spending on CSR, but hardly any while achieving business success.’ Financial constraints of the company applies for such benefit in David Henderson, in his widely cited government also provide some space view of high rate of corporate tax. book titled ‘Misguided Virtue: False for the private sector to spend from And in a country where tax evasion Notions of Corporate Social CSR funds for the causes of public is widespread, it is very difficult for Responsibility’ in 2001 argued health, education, disaster the government to ascertain the forcefully against the way in which management and environment actual expenditures on CSR or any CSR broke from traditional corporate protection and even relief operations other purposes for that matter. value-setting. He questioned the in times of emergencies. Some banks In such circumstances, there are ‘lofty’ and sometimes ‘unrealistic have set examples of running CSR differences of opinion while defining expectations’ in CSR. activities. the CSR and its areas of coverage. In Some argue that CSR is merely Now, question may also be raised today’s business literature, we see a window-dressing, or an attempt to why the corporate sector would have wide array of definitions that, too, pre-empt the role of governments as to take additional responsibility reflect the state of CSR elsewhere in a watchdog over powerful when they are already engaged in the world. multinational corporations. CSR as a creating jobs and paying taxes to the Lotus Holdings defines CSR as ‘The term found popular knowledge in public exchequer. In fact, integration of the interests of the the 1960s and it has remained a expectations from the corporate stakeholders – all those affected by a term used indiscriminately by many sector are that millions of youths company’s conduct – into the to cover legal and moral coming to the job market would be company’s business policies and responsibility more narrowly provided with jobs and the actions, with a focus on the social, construed. government would generate higher environmental, and financial Yet CSR can make significant revenue for spending on

August 2014 ICE BusinessTimes 27 development and public welfare, practices among the banks. It set although Bangladesh has a tradition CSR intervention as criteria to of charity and philanthropic improve performance indicators of activities run by the rich men of the banks. society. Under the income tax law, the Modern business houses do it not National Board of Revenue has merely for profit maximisation but offered 10 % tax rebate on the for making the business amount spent by companies on CSR sustainable by brightening image, purpose. A total of 22 sectors have engaging more people and carrying been identified for making CSR out publicity campaigns in the interventions by companies. They process. For many Bangladeshi have to take ‘tax rebate certificate’ companies, it is important to from the NBR by submitting a address the issues of labour rights written action plan for CSR and environment to ensure access activities. In many cases, of products to the markets of other compliance with the condition for countries where there are obtaining prior approval remains a conditions to meet such difficult task. compliance. CSR can help them. This means tax incentives are not Sometimes, it seems to be a matter enough to encourage the corporate of rights of the communities living houses to increase CSR spending or around the areas where businesses in other words, the tax regime has are operated. What comes from the no direct correlation with CSR community must go back to them activities in Bangladesh. Aminur manifold (after value addition), said Rahman, a former member of NBR, Jamsetji Tata, founder of Tata group, feels that some of the conditions in which has been a model of CSR. Tata CSR are troublesome for businesses spends 80% of its profit for the to avail of the opportunity. consumers and only 6.0% is taken by ‘Obtaining prior approval from NBR the family. The company spends for CSR spending is not really most of the CSR funds for scientific feasible. But it should also be research and healthcare. remembered that tax evasion is Although improvement in corporate relatively high in Bangladesh. So governance, transparency in paying there must be some conditions for taxes and corporatisation are major obtaining the tax benefit.’ challenges in Bangladesh, some AB Mirza Azizul Islam, former companies have come up with social adviser to the caretaker government, welfare schemes with or without said ethical practices are essential intervention of regulators. for CSR activities. ‘Stakeholders’ Bangladesh Bank, however, plays an interest should be taken care of important role in developing CSR while running CSR activities. For example, banks are doing CSR but charging high rate of interest, or industries are producing substandard products but spending on charitable activities in the name Sometimes, it seems to be a of CSR,’ he said. Abdul Mazid, former chairman to matter of rights of the the NBR and chairman to the Chittagong Stock Exchange (CSE), communities living around the expressed his views that CSR is areas where businesses are meant for the corporates. ‘CSR as a concept should be widened as it operated. What comes from the covers vast areas of the society. Education or healthcare or issues community must go back to such as labour safety should be brought under the coverage of the them manifold CSR.’

28 ICE BusinessTimes August 2014 Mentoring TRAINING WITH HUMAN TOUCH AND PARENTAL CARE Today’s youths need mentoring, social and business leaders should come forward

By SM Zakaria

and Aristotle and Alexander as mentor and mentee present great examples as well and have influenced the history of mankind immensely as to how to enrich one’s others in worship with Allah is a self and transfer the bounties to great Zulm (wrong) indeed.’ [Verse others,to bring about similar 13, Surah Luqman] developments in the protégés. Verse 18 reads: ‘And turn not your Aristotle’s perception on the East face away from men with pride, nor was ostensibly based on ethnicity walk in insolence through the earth. and he counseled his disciple, Verily, Allah likes not any arrogant Alexander to be ‘a leader to the boaster.’ According to Verse 19, ‘And Greeks and a despot to the be moderate (or show no insolence) barbarians, to look after the former One of the greatest examples of in your walking, and lower your as friends and relatives, and to deal mentoring in human history is seen voice. Verily, the harshest of all with the latter as with beasts or in the Qur’anic account of Luqman, voices is the braying of the asses.’ plants.’ the wise man who was bestowed In the Biblical inscriptions, you may Mentoring, it may be observed upon with Al-Hikmah (wisdom and find in the Book of Mathew, 1:1: involves two or more persons: a religious understanding), as he ‘Then Jesus summoned his twelve Giver and a Receiver. What is given? advised his son on certain issues. disciples and gave authority over Not some money, nor an asset; the ‘And (remember) when Luqman said unclean spirit, to cast them out, and transaction constitutes in some to his son when he was advising to cure every disease and every life-shaping advices, guidelines, him: O my son! Join not in worship sickness.’ some dos, or don’ts. The mentor others with Allah. Verily joining The stories of Plato and Aristotle, provides the mentee with a kind of a

August 2014 ICE BusinessTimes 29 compass that shows the mentee the oriental mysticism reigning over The largesse of road, the trajectory, the map to thousands of years and the fashion follow in charting out his career of life pursued, influenced by that knowledge, wisdom either in business, or in thought, by the people of this region and experience employment, or in social work, or in including the territory of what is gained by somebody politics, or in religious pursuit, or in now called Bangladesh. The very any other job. many religions embraced and the throughout his life Above all, the mentor best suits as many languages talked in by the through perseverance being a Lighthouse for the mentee: people inhabiting the vast expanse and perspiration is, he emits light in the stormy worldly of land and territories from weather for the mentee so he Indonesia to India to Turkey to generally, thought to (mentee) can navigate himself Saudi Arabia to Egypt to Algeria to be partially transferred through the numerous hurdles, Morocco have been serving as the disasters and despairs of life taking determining factors of the lifestyles to the mentee over the lighthouse as the standard for and distinct cultures of these people. time under an intimate policies, strategies and actions. Very closely knit and coherent social process of What should be the characteristics systems developed among these of the advices provided by the societies linking intra and inter intercourses mentor? Definitely for the better, for family members in manners such individuals and societies do not long that mutual dependence became time scarce. So, few people like to for evils and bad deeds; those are almost inevitable and indispensable. spare time for others’ need and like weeds in paddy fields, they grow Parents play crucial roles concerning benefit. It seems that the in bunches uncalled for and need to the lives of their children for long Bangladeshi young folks who are be rooted out if a much needed crop years and vice versa; relatives, faced with ruthless competition in is to be yielded for sustenance. So, family friends and neighbors also life for survival, let alone lead the mentoring job involves firstly, can, in many instances, be of critical prosperous lives, are left behind high achievers either in respect of importance for peoples’ lives and in without attention from who have worldly affairs, or affairs concerning times of requirement. trekked ahead and amassed life’s hereafter; the second is what in So, mentors here come from within gifts. terms of advice and demonstration and professional mentors are hardly Public awareness, in this they pass onto the seekers, the to be found. Kin-mentoring at times circumstances, about the mentees. does not focus on a particular significance of mentoring in these There is a discrete difference profession, business or otherwise; days of scarcity of good education, between teaching and mentoring: there is a tendency in mentors to resources, government assistance teaching has a formal face provide a wholesome mentoring and sympathy, may perhaps help. delivering knowledge to pupils at covering as many aspects of life as Society needs to refrain from savage large under structural possible of the mentee. That, self-centric activities only and needs arrangements; mentoring to the therefore, cannot many a times keep to grow sympathetic. Civil society contrast, performs informally, profound impact on a mentee in and the NGOs can do great works, personally, mostly, on a one-to-one respect of a particular requirement. but first they need to be sensitised cord. The largesse of knowledge, There are still many people around about the necessity of mentoring in wisdom and experience gained by who, if approached and followed, our country which is also, by now, a somebody throughout his life would like to allow mentees to surf consumption maniac as her Western through perseverance and through the canvas of their lives counter parts are. perspiration is, generally, thought to which are rife with varied and exotic In the business arena, a ‘Forum For be partially transferred to the experiences that may help build Mentors And Mentees’, developed mentee over time under an intimate bright and potential careers. under the aegis of either Dhaka process of intercourses. Emotion, Unfortunately, modern life is Chambers of Commerce and deeper relation, great hope and limiting us in many respects and Industries, or the Federation of aspiration, a feeling of liability and people does have little time these Bangladesh Chambers of Commerce blessings for the mentee have a role days to listen to others’ problems and Industry may, probably do great to play in mentorship. Teaching may and offer a portion of their time to jobs in bringing mentors and not necessarily contain such help untie knots of real-life puzzles. mentees together on voluntary ingredients to educate some The contemporary great global considerations and forge alliances students for certain objectives. consumerism – which we are also that may produce outstanding Seeking to examine the status of immersed in - is making many business enterprises creating mentorship in Bangladesh may things and amenities available to us employment, adding to GDP and warrant a deeper appreciation of the but on the other hand, is making above all creating new mentors.

30 ICE BusinessTimes August 2014 Interview of the Month

Values are Stronger than Rules in Banking

Photo – Titu Zakaria

32 ICE BusinessTimes August 2014 Ali Reza Iftekhar

The recent scams in the banking How have been the generational changes sector are the hallmark of degrading values and ethics in individual in Bangladesh’s banking sector, both in practices and governance in the terms of entry of new bankers and arrival banking sector; admits the President of banks, that you have noticed from of Association of Bankers, Bangladesh (ABB) saying that the inside? revelations of fraudulence have Yes, people of new generations are coming in every 3-5 affected the entire banking sector and years. But unfortunately, in terms of quality, there is no damaged the country’s image. Ali significant improvement. Rather we have witnessed a Reza Iftekhar, also Chief Executive decline in the merit of new entrants compared to older Officer and Managing Director of generations. I would assume if the number of meritorious Eastern Bank Limited, emphasises jobseekers was 90 out of 100, that now has come down to 20 the need for building human in 100. I have made this comparison based on education, resources instilling values and ethics creativity, aptitude and all that. However, the only in them alongside ensuring reward advantage the new generation people have is that they are and punishment to improve the IT-savvy in general. situation. On the other hand, new banks have also joined the market In an interview with ICE Business but it is old wine in new bottle. We don’t see any change or Times, he expressed his conviction improvement in management as new banks have hired or that Bangladeshi banks have are hiring the people trained by old banks as a quick-fix enormous scope to diversify their strategy. Some relatives and admirers of the directors have services and serve the clients in a also been accommodated as employees of the new banks. number of ways. As the banking sector is sitting on excess liquidity, he What is your evaluation of monetisation thinks, money will not be a problem if of the national economy, especially investors come out of the shell of their ‘wait and see mood’. integration of rural, informal and non-formal sectors with the mainstream economic activities and the banking sector? Thanks to the financial inclusion, the information about the financial world has now been more available. We have seen growth of mobile banking and agent banking that have brought banking services to the doorstep of the rural people. Bangladesh Bank, too, plays an important role in this regard but we should also remember that mere administrative impetus is not enough to expand financial services. Of course, there is scope to bring more people under the banking coverage. I don’t think mere GDP growth will help the poor to come out of economic hardship; we must try to keep the inflation in check, and banks should be allowed to offer innovative services, such as insurance and sales of mutual funds, for the benefit of both the people and banks.

ABB President Ali Reza Do you think the country is still vibrant Iftekhar regrets declining for banking business, as the growing merit and ethics despite economy with a rising middle class offers the entry of a new opportunities? Banking business is not in a very good shape at the generation into the moment, although it was supposed to be vibrant. Banks’ non-performing loans have increased and income has industry eroded, especially net profit (after paying tax) has declined. A 1% increase in NPL means loss of Tk 300-400 crore from income. Even with increasing operational profit, banks lose By Ashraful Islam Translation and planning by Khawaza Main Uddin capacity to provide dividends.

August 2014 ICE BusinessTimes 33 Where are your bargaining points/issues with the government, regulators and bank owners when you represent ABB? From the government we expected that the corporate tax being paid by the banks at a rate of 42.5% would be reduced to 40% initially but nothing was done in the budget. This should be reviewed as nowhere in the world is there such a high rate of corporate tax. This is clearly discriminatory and not sustainable in the long run. We also feel that ABB should be consulted before issuance of ‘major circulars’, if not all, by the central bank so that Huge liquidity could have been a blessing, has there is policy consistency and banks there been higher demand for investible loans. It’s can implement them. We at ABB also need to be more active. I strongly been rather burden for the sector for banks have believe that the separation of role played by board of directors and bank to manage the funds in a cost-effective manner management as guided by Bangladesh Bank’s regulations providing series of incentives and Given the recent scandals should be maintained properly for the discourage trading that does not sake of protecting interests of the create much jobs. affecting the banking clients. Good governance cannot be ensured only by laws but by means of sector, what kind of ethical practices within the The banking sector is effects are you expecting organisation. sitting on huge liquidity. in the coming days and Would you share your What are, in your views, thoughts what best could how would you take main challenges of banks do to invest the remedial measures? investments these days? idle money? We the banks are really ashamed of We see positive indicators in the Huge liquidity could have been a the whole affair. The Sonali Bank’s financial sector, but investment blessing, has there been higher scam or Basic Bank’s forgery for that remains sluggish. There is no demand for investible loans. It’s matter is not affecting only them, movement visible across industries been rather burden for the sector for but the entire industry. This shows for expansion or setting up of new banks have to manage the funds in serious degradation of values and units, except a few sectors like power a cost-effective manner. So, despot ethics in individual practices and and some infrastructures. Investors rates have been cut to reduce governance in the banking sector. are apparently watching the situation operational costs and thankfully we The revelations of fraudulence have with a ‘wait and see mood’. We don’t are reducing the lending rates as also damaged the country’s image see much import of capital machinery well. Currently, banks are not abroad. The Sonali Bank Hall-Mark as reflected in the import statistics. collecting money due to lower scam was recently presented as a This has been a major challenge for demand and once demand increases (failure) case study at California the country because unless you make we are in a position to collect huge University, Berkeley. This has also investment in the manufacturing deposit and disburse among the increased operational risks. I think, sector, you will not be able to create investors. I am, however, concerned the banking sector needs to ensure employment opportunities, and at the fact that the government reward and punishment for the unless you provide people with jobs, might borrow a lot of money from performance of the bankers. We need the country’s development will not be the banks. This may have negative to build human resources instilling possible. I think, we must promote effects for the banking sector and values and ethics that are stronger manufacturing industries by eventually the investors. than rules and regulations.

34 ICE BusinessTimes August 2014 Emerging Business Click For Joy Online sales have finally picked up pace in Bangladesh By Wafiur Rahman

A number of potential sectors are As technology is becoming an Taking indicators like increasing just crying out loud to get the everyday accessory, and rate of Internet penetration, lifestyle attention of all the stakeholders. Internet penetration increasing like change, and time scarcity into Investments in those sectors are not wildfire, people’s tendency to sell consideration, it can be a safe at that pick as it should have been and buy online is also on rise. The prediction that online shopping is due mainly to two reasons – a lack most probable reason behind the going to be a phenomenon of the of favourable business environment rise in online shopping trend is the near future. Realising the demand of and dearth of information required time scarcity of modern lifestyle. a number of online shopping sites, for starting a business. Despite all Shopping regularly for daily the journey has started to make life these barriers Bangladeshi products has been rather a luxury to easier and lazier! To serve the entrepreneurs are taking initiatives this time-scarce society of today. As interest, here are some brief stories to make progresses happen not only the trends show, in near future the of some successful, from the point of for themselves but also for the rate and extent of online shopping creating buzz and attention players’ society and the country as a whole. will increase in manifolds. online shopping sites:

August 2014 ICE BusinessTimes 35 Big Idea: Akhoni.com is an online marketplace featuring discount deals with popular businesses. It provides discount deals with large number of businesses like- restaurants, hotels, theaters, fashion houses, Internet services, transports, beauty parlours, saloons, theme parks, gymnasiums, furniture shops, sports and recreation centers, etc. How it works: Customers can sign up to get regular deal alert on their email at free of cost. They can receive the deal voucher instantly on their web browser and through email by making payment instantly using VISA, MasterCard or DBBL Nexus card or one can also choose to book the deal online and pay cash when the coupon is delivered to their home. Then, the customer will show the voucher at the merchant location to enjoy the deal. Tipping Point: Attraction of the website is offering huge discounts to the customers, 50 to 90 per cent discounts are alluring people to log on to the website instead of going out for buying the products.

Big Idea: Clickbd.com has started its operations in April 14, 2005. ClickBD is an online marketplace where anyone can sell or buy almost anything. Why to care: The site has a strong and growing community of users who trade in a wide range of item categories including Electronics, Cameras, Phones, Computers, CDs, Mobiles, Fashion Accessories, Music, and Travel. Tipping point: Through a world-class technology infrastructure ClickBD enables & simplifies e-commerce for Bangladesh’s ever expanding online community.

Big Idea: Formerly CellBazaar.com, it was originally designed as a classroom project at MIT. It quickly became one of the most successful online and mobile shopping platforms. Despite the change in name, it allows people to buy and sell over mobile phones or computers. Dig deep: Anyone with a computer and internet, as well as Grameenphone users through their mobile phones are taking advantages of this service. Users can buy agricultural products, such as rice, fish, chicken, as well as large scale items like car, motorcycle, TV, fridge, apartment, land, etc. People can also offer services such as language tutoring (very relevant to migrants going abroad). Tipping point: The service is customer focused, who post items for sale, delete items after they are sold, and even adjust their own prices if they fail to get a buyer. Bangla is a key part of the user experience. That is exactly why they kept both Bangla and English as languages for navigation, with a convenient button at the upper-right corner to switch between the two. If you want to buy or sell anything you can insert your ad for free in Ekhanei.com.

Big Idea: Hutbazar.com, a sister concern of Right IT Corporation, pioneered online comparison shopping, and today is one of the fastest growing shopping destinations for a comprehensive set of products from thousands of trusted stores from across the Web. Tipping Point: With a singular focus on shopping, Hutbazar.com offers shoppers easy-to-use search tools, engaging content and time saving navigation.

36 ICE BusinessTimes August 2014 RMG

GSPGSP STILLSTILL HANGINGHANGING ININ BALANCEBALANCE RMG industry trying to improve, importers want more

IBT Report Photo: Sk. yeahhia

August 2014 ICE BusinessTimes 37 issues that led to the President’s decision to suspend GSP trade benefits,’ said USTR Michael Froman. The USTR office also appreciated some progress. Since June 2013, the government of Bangladesh has ‘registered approximately 120 new unions in the garment sector, has dropped pending criminal charges against labour activists, is cooperating with the private sector initiatives, the “Alliance” and the “Accord”, on plans to inspect thousands of factories in the ready-made garment (RMG) sector, and has reportedly suspended operations in approximately 20 ‘GSP Action Plan Review Finds More destinations of Bangladeshi factories which were found to be in Needs to be Done to Improve Worker garments. imminent danger of structural failure Rights and Worker Safety in The total value of US imports from or other catastrophic accident’. Bangladesh,’ reads the headline of Bangladesh under GSP was $34.7 The USTR office renewed its call for the news release by the office of the million as of 2012. The top GSP labour law reforms as part of United States Trade Representative imports included tobacco, sports implementation of the action plan, (USTR) about the latest status of equipment, porcelain china, and including changes to ensure that Bangladesh’s prospect of regaining plastic products. workers are afforded the same rights the trade concession for exporting At the time of the suspension of GSP, and protections in Export Processing various items including garments to Washington provided Dhaka with an Zones as in the rest of the country. The the American market. ‘Bangladesh Action Plan which gave a basis for US government is closely coordinating has made some important progress, the US President to consider the with the European Union, the but must do more to address the reinstatement of GSP trade benefits. International Labour Organisation worker rights and worker safety The next review of the progress on (ILO) and other international partners issues that led President Obama to GSP action plan made by under the July 2013 Sustainability suspend the country’s GSP Bangladesh is likely to be held in Compact on worker rights and factory (Generalized System of Preferences) December 2014. ‘The Obama safety in Bangladesh. Legal trade benefits in June 2013,’ Administration has been engaging authorisation for duty-free treatment observed an interagency review by the Bangladesh government and for all countries under GSP expired on the USTR. stakeholders over the past year to July 31, 2013. The US Congress is Meanwhile, Accord and Alliance, press for changes to address the considering legislation to renew the two groups of retailers respectively worker rights and worker safety programme. from Europe and America to oversee workers’ safety and working conditions in Bangladesh, inspected some garment factories and closed a few. Despite difference of opinions with the stakeholders, they observed significant improvement in factory compliance inclusive of safety measures. Bangladesh lost the US GSP, a programme Washington designed to promote economic growth by providing preferential free entry for up to 5,000 products, following accidents, especially Tazrin fire incident and Rana Plaza tragedy in 2013.The US suspension of GSP may have implications in the European market, one of major

38 ICE BusinessTimes August 2014 An Entrepreneurship Economic Rural banking, Messiah inclusive growth, use of technology all he tried a century ago

By Ashik Chowdhury

Rabindranath Tagore, known worldwide for winning Nobel Prize on literature, had close relations with farmers in Pabna, Kushtia and Naogaon districts. He opened schools for their children and requested other Zaminders to give attention to public education and health. He also founded banks and helped in introducing modern farming equipment. He felt that only agriculture could not help develop villages and living standard of rural masses, and so, initiated cottage industry. Some eminent researchers on the life and works of Rabindranath have suggested that his writings on economic issues should be included in the curriculum of higher education and the economics departments at universities should include in their curriculums the writings that reflect Tagore's socioeconomic thoughts and philosophy. The study on Rabindranath has been going on partially while the focus was narrowed down on his novels, short stories and songs only, they observed.

August 2014 ICE BusinessTimes 39 The researchers made some reflections on Rabindranath's socioeconomic ideology ahead of the 153rd birth anniversary of the first Bengali Nobel laureate recently. Among the researchers were Bangladesh Bank Governor Dr Atiur Rahman, Tagore exponent Ahmed Rafiq and a Professor of Bengali Department of Dhaka University, Rafique Ullah Khan. The views of the three researchers deserve further evaluation. Dr Atiur Rahman acknowledges that he follows Rabindranath in driving his vision for inclusive growth. ‘We need electricity, but that should be for all,’ the poet once wrote in an essay, clearly reflecting the idea of inclusive growth. Most of these essays are included in the book named ‘Atmashakti’ (self- esteem). But least we read this book and that is why a few are aware that the poet pioneered rural banking like today's Grameen Bank, introduced the idea of financial inclusion and inclusive growth and adopted modern technologies in our agriculture sector. ‘I came to know Rabindranath’s thoughts on socio-economy when I started reading the essays of the poet,’ said Dr Rahman. ‘Rabindranath established a close relation with the farmers during his stay in the then east Bengal, an area covering Pabna, Kushtia and Naogaon districts.’ The poet truly describes his thoughts about the country’s society, economy and culture, from which anyone can take the clue for However, coming to the East Bengal The poet established a Samiti in framing an effective development was an eye opening move, and I was Patisar under which some schools strategy for the country, said Dr ashamed because of my lack of were opened in the neighborhoods Rahman, who wrote a few books on knowledge about the struggle of the for free education to the children of Tagore’s thinking and ideology rural people. I asked myself what I the farmers. The schools were about economy, agriculture and did for these people and then funded mainly by the revenue environments. ‘Rabindranath decided to do something for them.’ income of the Tagore estate and the beyond the usual literary frame was With this new feeling and other estates of the areas. Some a creation of the life and the nature realisation, Rabindranath wrote to well-off farmers also regularly of the East Bengal,’ he said the neighbouring Zamindars: contributed to the schools. clarifying that his way of thinking ‘Please be kind to these people and Rabindranath noticed that many about life got a new dimension after give attention to their education and farmers were losing a huge amount he came to this country to look after health.’ Hardly anyone paid heed to of their hard-earned money to his family’s Zamindari. the request. ‘Many of them ignored money lenders in absence of ‘I was born in a town and grew up the request, but I thought I should institutional financial supports. So, with no idea about the rural life. do something for the poor people.’ he established a bank in Patisar for

40 ICE BusinessTimes August 2014 Tagore and Rural Development lending money to the farmers who wondered whether an umbrella ‘Our life is dominated used to count high rate of interest factory would create some non-farm for borrowing money from rural jobs for the people. He also brought by economy, and money lenders (Mahajans). For this attention of his son to the prospect bank, Rabindranath took deposit of setting up a cottage industry in Rabindranath left us from the farmers who were the Patisar. ‘The soil is solid in this area. his works to know subjects of his ‘Zamindari’ and also This soil could be used to produce gave them loan at around 12% rate various types of goods, kitchen about economy, of interest against the deposit rate of appliances and decoration pieces if agriculture and 8.0%. the potters are provided with Farmers were very happy at the necessary trainings.’ society beside the services of the bank as it helped He advised his son to bring an them get rid off the trap of high rate expert potter from Kolkata who wide range of his of interest for borrowing money would train the rural potters in creative literature’ from the rural money lenders. The Patisar. Eventually, Rabindranath bank, however, was closed in 1935 established a cottage industry in under the State Acquisition and Patisar and launched a coordinated remark: ‘Education is the highway Bengal Tenancy Act. Rabindranath effort with farm and non-farm of civilization.’ He believes that the then established another similar initiatives for the development of highest education is that which does bank in his Shantiniketan under the the rural economy. ‘Farmers alone not merely give us information, but name of Sri Niketan. The banks were cannot develop the agricultural also keeps our life in harmony with the core concept of the Grameen sector unless their initiatives are all other existence. (rural) and cooperative banks. supported by the science and Ahmed Rafiq said, ‘We should study The poet established an agriculture technology,’ he wrote and gave an the essays of Tagore to understand farm in Patisar for adopting modern example of lighting up lamp with the importance and necessity of his technology in agriculture. He also Veranda oil. ‘We cannot light our philosophy in individual and sent one of his sons and a lamp up with Verenda oil for ever. national life.’ He expressed his son-in-law to Ilion University for For that we need electricity and that concern that the young generation higher education in agriculture so should be for all.’ hardly knows about Rabindranath’s they can run an agricultural training These examples reflect that thoughts and ideology on economy, institution here after returning from Rabindranath realised long before society and agriculture because they abroad. They with financial support many economists that the demand only enjoy the songs, dance-drama, from Tagore Estate brought tractors in the economy would not be vibrant stories and novels of Rabindranath. to replace the cow-ridden years’ old without coordination between crop ‘So, we should institutionalise the farming tool. Some modern farming and non-crop sectors. Like study on entire Rabindranath, which equipment for irrigation and use of economists, the poet saw would benefit the society and the fertilizers and pesticides were also opportunities even in a situation of nation,’ said Rafiq, who wrote many brought for the farm. Many people extreme poverty. He wrote: ‘There books on Tagore’s works on including ones from overseas used are many poor countries around the socioeconomic aspects. to visit the farm regularly. Once a world. But I would like to say that ‘Our life is dominated by economy, famous US lawyer visited the farm the country is really poor where and Rabindranath left us his works and commented that the farm was people do not try to be rich by to know about economy, agriculture like one in the United States and generating their income.’ and society beside the wide range of even better in management. The Nobel laureate also wrote about his creative literature,’ said Rafique Rabindranath was aware that only the importance of women Ullah Khan, a professor at Dhaka agriculture could not spur the empowerment and their education. University. Referring that the economic growth unless it is He came close to the rural women current educational curriculum is supported by industrial during his stay in a boat on Padma limited to Rabindranath’s literature, diversification. On many occasions, River in Kushtia. Many rural women he said, ‘We should include he wrote to his son that only came to have bath in the river when Rabindranath’s writings and works agriculture could not help develop they used to talk to each other about on economy, agriculture and society villages and living standard of the their personal and family life. The at higher studies.’ Citing that rural people. In a letter to conversation of the women Rabindranath spent a portion of his Rathindranath, the poet referred to prompted the poet to think about Nobel Prize money for the wellbeing huge pineapple production of this women empowerment. In his Letters of farmers of Bangladesh (the then area and suggested producing some from Russia, the poet highly lauded east Bengal), Khan said that this goods from the fibre of the pineapple the women education of the then also indicated Tagore’s dedication to leaves. In another letter, he Soviet Union with the concluding the welfare of common people.

August 2014 ICE BusinessTimes 41 Regional focus

POOR EDUCATION CONSTRAINS SOUTH ASIA Quality, skills necessary for productivity gains, higher economic growth

An IBT Report

42 ICE BusinessTimes August 2014 Education

The poor quality of education in South Asian countries including Bangladesh prevents faster economic growth and more broadly shared prosperity, observed a recent World Bank report. Students are found to be poorly prepared in practical competencies such as measurement, problem-solving, and writing of meaningful and grammatically-correct sentences. One quarter to one third of those who graduate from primary school lack basic numeracy and literacy skills that would enable them to further their education, the report pointed out. ‘With so many skills important in the work world missing from what is taught in schools, it is no surprise that employer surveys confirm that inferior education systems and the shortage of skills are constraining private sector investment.’ Terming the poor quality of education a major obstacle to the region’s future economic prospects, Halil Dundar, one of the report’s authors, said, ‘Raising education quality in South Asia is an urgent priority that could transform the region’s economic landscape.’ Also the Asian Development Bank, in its recent publications, emphasised that South Asia needs to invest more in education and skills training to improve economic opportunities for its growing youth population. ‘South Asian countries need to invest significantly in human capital to reap the benefits arising from the limited window of demographic dividend from a growing young population in the next 3-4 decades and to move up the value chain,’ said the ADB. The WB report noted that many governments in South Asia had invested heavily in education to achieve the MDG targets and the investment resulted in an increase in the net enrollment rate in primary schools from 75% to 89% from 2000 to 2010. Yet, it added, there are large differences in schooling access across the countries of South Asia as well as between different socioeconomic and demographic groups within countries. At present, said the ADB, the potential for e-learning in South Asia is limited by poor broadband access outside urban areas and by student deficiency in English. The Asian aid agency mentioned that in 2012, only 5% of Bangladeshis had internet access, and this market is growing slowly. Nepal was marginally better off with 9% of the population enjoying access. To address the education challenges, the World Bank recommended engaging the private sector as South Asian governments cannot afford to improve educational quality by themselves. ‘The private sector is already playing a major role in education, and governments should encourage greater private-sector participation by easing entry barriers and encouraging well-designed public-private partnerships,’ said the report. Private higher education, a comparatively recent phenomenon, now accounts for 28% of enrollments in South Asia and 35% in East Asia, according to the ADB. Moreover, little is spent on technical and vocational education and training as a percentage of education ministry budgets or of total government spending: 2.6% of the Ministry of Education (MOE) budget in Bangladesh, 1.2% of the MOE budget and 0.2% of total government spending in Nepal, and 0.4% of total government spending in Sri Lanka.

August 2014 ICE BusinessTimes 43 Share Market

Nullified Over 105,000 BO accounts canceled

By Munir Hossain Translated by Wafiur Rahman

Over 105,000 BO (beneficiary owner) accounts have been canceled due to non-payment of renewal fees. The account records were taken from different brokerage houses through electronic methods and sent to Central Depository Bangladesh Ltd (CDBL), the company that conserves shares. The brokerage houses had set 25 June, or at best 30 June, as the last date for renewal by investors. After that, the default accounts just kept getting canceled. According to CDBL sources, the latest number of BO accounts stood at 2.8 million. It takes Tk. 500 to renew BO accounts, with CDBL getting Tk. 150, the respective brokerage houses getting Tk. 100, Bangladesh Securities and Exchanges Commission (BSEC) getting Tk. 50 and the state treasury getting Tk. 200. Before cancellation of many accounts, the number of BO accounts was 2.9 million. But informed sources said CDBL took renewal fees until 7 July. The bank shares and deposited shares had their fees taken from their bank accounts. Other houses kept shares as deposits as well, the accounts of which were also not closed. According to BSEC’s Schedule 3 2003’s depository rules, the depository participant has to pay a yearly charge for running the BO account, which was previously taken in advance before the beginning of the fiscal year, sometime in December. But in 2010 it was switched to the month of June, increasing the yearly charge from Tk. 300 to Tk. 500. A gazette circular was issued in this regard on 18 April 2011, with non-compliance therefore being subjected to cancelation. CDBL statistics state that out of the total BO account figures, 2.2 million are in Dhaka and the remainder outside of Dhaka. But last January, only 1.1 million BO accounts were found, where regular transactions were made. Some 900,000 accounts showed minimal activities, and 1.2 million showed zero activities – they were only active during Initial Public Offerings (IPO). The ones in Dhaka are used through machine readable accounts (one-fourth are not). Allegations of one person having over 150 accounts are also present, where only IPO applications are made. In 2009 the number of BO accounts was 1.4 million, but in 2010 it mushroomed to 3.3 million. To counter this requirement, national identification card was made mandatory in opening BO accounts, as well as providing bank account certificates.

44 ICE BusinessTimes August 2014 Different Perspective ENDLESS PITCHING Disney’s Million Dollar Arm tries to resurrect old-school sales charges. The Pirates released Patel in 2010. He never made the major league roster. Singh is recovering from elbow surgery and may yet work his way through the team’s minor league system. n Million Dollar Arm, Jon Yet Million Dollar Arm is afraid that Singh’s quest to be the first I Hamm takes a turn in the viewers might still be confused. Indian-born player in the majors now now-familiar role of the sports Nothing is left to chance. When takes a back seat to the movie about dealmaker with his top button something awesome happens, a him. The film counts ESPN analyst and undone. Tom Cruise created the character says, ‘This is awesome!’ Grantland editor Bill Simmons among template with Jerry Maguire in 1996. When J.B. learns that Indians do its producers and will get the full Brad Pitt tried it on in Moneyball, and things a little differently, an Indian measure of Disney’s cross-promotion- most recently, Kevin Costner gave it tells him that ‘here in India we do al power. Hamm went on Sunday Night a go in Draft Day. The main require- things a little differently.’ And when Baseball on ESPN (owned by Disney) ments are barking commands into a the moral of the story is that baseball to talk about Million Dollar Arm. At the cell phone, holding frank conversa- shouldn’t be just about business, screening I attended, viewers were tions with athletes, and soul search- J.B. explains that baseball shouldn’t encouraged to tweet using the ing behind the wheel of a car. be just about business—it’s hashtag #MillionDollarSweeps to win Million Dollar Arm is a Walt Disney supposed to be fun. Disney knows an Adventures by Disney Costa Rican production, so Hamm’s version is how to hold a moviegoer’s hand, but vacation. thoroughly wholesome. He plays J.B. it squeezes too hard this time. There’s nothing surprising about any Bernstein, a real-life agent who went The movie ends with real footage of of this, but somebody forgot to tell to India in 2008 to try to find Major the two pitchers learning that the director Craig Gillespie that movies League Baseball prospects by Pittsburgh Pirates have offered them shouldn’t be just about offering $1 million to any man who minor league contracts. The scene business—they’re supposed to be could throw three consecutive opens an uneasy gap between fun. As Singh and Patel take the strikes at 90 miles per hour. J.B. Million Dollar Arm’s moral—J.B. mound for the film’s climactic drinks Scotch a bit, womanises a learns to let go of success and care moment, the camera closes in tight little, and learns a lot. for the players as people—and its on their faces, but not so tight as to You may already know Bernstein’s existence as a commercial product. omit the Under Armour logos on their story from his memoir, also titled The movie is a coup for Bernstein no shirts or the Rawlings branding on Million Dollar Arm, or from the pages matter what happens now to his their gloves. of Sports Illustrated. He finds two When Sports Illustrated profiled hard throwers, the lefty Rinku Singh Singh and Patel in 2009, the two had (Suraj Sharma) and the righty Dinesh already grown tired of comparisons Patel (Madhur Mittal), and brings with Slumdog Millionaire, which them back to America for training came out at the time of their tryouts under University of Southern Califor- in the fall of 2008 (and also includes nia pitching coach Tom House (Bill Mittal in the cast). ‘We are not Paxton). Less than a year later, they characters from a film,’ Patel told the have a tryout in front of MLB scouts. magazine. ‘We want to be taken Even if you haven’t read it, you know seriously as baseball players, as how the story goes: triumph, tears, professional pitchers.’ Cue the swell- cheesy swelling score. ing score.

August 2014 ICE BusinessTimes 45 PICTURES ON THE How GoPro is transforming advertising as we know it Go

GoPro’s rising stock prices after its initial public offering (IPO) last month just go to show how powerful and versatile user-generated content can be. Some people still think of user-generated content as shaky videos or filtered photos, only good for sharing with family or friends on social media. But that is an outdated concept, and one which GoPro would dispel.

46 ICE BusinessTimes August 2014 Transforming Advertisement

a wearable camera to an amazing athlete and gets back advertising Technological and marketing gold. Regular customers have become advertisers advancements on a smaller scale, shooting have made high-quality video, loading it onto YouTube and social networks, and user-generated advertising the capabilities of the cameras to friends, family, and content both complete strangers. The new media reality compelling and But GoPro wants to be much more than a hardware-maker with a high-quality, and built-in, affordable marketing strategy. The company wants to GoPro proves that evolve into the user-generated a tiny camera, in media company of the future. And in that regard, GoPro is in the the hands of the vanguard of a new media reality. Viewers can tune in to a full GoPro right people, can channel on Virgin America Airlines or stream the video through an create captivating Xbox. What viewers see when they tune in is one of the most content remarkable, branded video experiences available. Viewers get a front seat to the adventures of world-class skiers and Many media platforms are proving snowboarders, BASE jumpers, and that user-generated content has the mountain bikers, not to mention a quality to captivate audiences. Video whole range of video outside of the cameras affixed to the helmets of world of extreme sports, like a skiers, snowboarders, and BASE stunning recent video of an African jumpers generate footage for the Pelican learning how to fly. slickest television commercials, and Technological advancements have Instagram photos from fashion fans made user-generated content both are now the center of online compelling and high-quality, and catalogues for major fashion brands. GoPro proves that a tiny camera, in User-generated value the hands of the right people, can Everyone got a glimpse of the power create captivating content that will of user-generated content thanks to gain an audience no matter what of all, it is relatable in a way that GoPro’s recent financial disclosures purpose it is used for: social media polished, directed, scripted leading up to its public offering. The marketing, advertising, or television advertising is not. GoPro’s valuation company more than doubled its net programming. GoPro is just one is based partly on the high-quality income from 2010 to 2011 to $24.6 high-profile example of this video camera that it makes. But million but only spent $50,000 more fast-growing trend. Fashion retailers even more than that, investors are in marketing costs to do it, and consumer-packaged goods intrigued by the potential of the according to Wall St. Daily. And companies are harnessing video camera manufacturer to GoPro repeated the feat in 2013, Instagram photos, Vine videos, and blossom into a full-fledged media increasing marketing costs by only other forms of consumer content to company driven almost entirely by $41,000, but making $28 million spread their brand message on user-generated video. For the brands more in net income. television, in online ads, and in that are spending big advertising Embedded in those numbers is the marketing material. budgets, the ascendance of GoPro is multi-million-dollar marketing and User-generated content is the next also a reminder of an evolution in advertising value of user-generated marketing and advertising frontier marketing that they must adapt to: content. In place of an art director, for brands. Its wide acceptance is the attainable and largely untapped acting cast, and team of due to the fact that it is both marketing and advertising potential videographers, GoPro simply hands powerful and affordable. But most of user-generated content.

August 2014 ICE BusinessTimes 47 Photo Feature

BUSINESSBUSINESS OF OF THE THE YEAR YEAR The annually-coveted business targeting Eid is big business

50 ICE BusinessTimes August 2014 Eid Shopping

lthough Eid shopping has still to gather Apace, traders across town are bracing for eventful days ahead with Ramadan approaching the halfway mark. ‘It is almost always that people tend to start off their shopping by mid Ramadan and the first half remains generally quiet but this time, the BUSINESSBUSINESS OF OF THE THE YEAR YEAR rush is more than expected in first half of Ramadan,’ points out Muhammad Ali, a cloth trader at the usually busy Chadni Chawk Photo by Ali Rehan Pushon market. Text by Wafiur Rahman

August 2014 ICE BusinessTimes 51 One reason could be the pre-Eid sale offers by different brands and shops that attract a good number of the people in the evening. ‘I am here to look for good shoes on sale. Prices will go rocket high in the second half. I think it is wise to shop before Ramadan or at least in the first half of the holy month,’ said Shakeela Awwal, a housewife. From the low scale markets to the posh shopping plazas, the business community is keenly looking forward to cashing in on this once-a-year opportunity. Though the fancied bangle and henna stalls have yet to come up, the colours of Eid however, have slowly but surely begun to show. Many of the main markets are being lit up, as is done almost every year prior to this momentous occasion. It is quite obvious that the rush of buyers is going to grow in the forthcoming days while it is also clear that the shopkeepers have considerably increased the prices of virtually everything that is Eid-related. Be it the clothes for kids or their shoes, a dress for the elders and all else, the prices are soaring but as in previous years people would dole out whatever they have to make purchases and celebrate the festival with zeal. ‘It is the spirit of Eid that drives people to go ahead and buy things,’ explains Iqbal Baig, an elderly Lalbag

52 ICE BusinessTimes August 2014 Eid Shopping

resident. ‘It is the same each year, the businessmen exploiting buyers,’ he said. The traders on the other hand insist that there hasn’t been much change. ‘Our prices are more or less the same they were last month,’ said a shopkeeper dealing in children’s garments. However, at his shop in New Market, a pair of girls’ shalwar kameez is priced Tk. 2500. Similarly, the prices of shoes be it the big-name stores or those selling their ware out in the open, have also raised their prices — a good pair of boys’ or girls’ sneakers setting one back by approximately Tk. 2,000 to Tk. 3,000 in some of the top shops. It is a strange though that each year before Eid, people complain of soaring prices yet by ‘Chand Raat’ most of the shops go virtually empty, such is the pace and seriousness of the buyers. Some of the Dhaka markets that are likely to be swarmed by buyers in the run-up to Eid would of course be the New Market, Gawsia/Chadni Chawk, Hawkers’ market, Bashundhara City and the usual Dhanmondi/Gulshan/Banani markets. Clearly, the traders are in for busy days ahead.

August 2014 ICE BusinessTimes 53 Trade Overview China, for its part, issued a statement through its foreign ministry on June 8, saying Vietnam boats had rammed its ships more than 1,400 times and was using ‘frogmen and other underwater agents’ to interfere with its operations. ‘Immediately stop all forms of disruptions of the Chinese operation and withdraw all vessels and personnel from the site, so as to ease the tension and restore tranquility at sea,’ the statement read. The order to state businesses to stop investing apparently came through a phone call from China’s commerce ministry, the Post reported, adding that a person working in the ministry’s bidding permit office confirmed the suspension. While China has been Vietnam’s biggest trading partner for the past decade, it only ranked only 11thin foreign direct investment, according to Vietnam’s general statistics office. Most of China’s 113 companies registered in Vietnam do engineering, including in the power and chemical industries, according to a business association that tracks Chinese investment, the newspaper said. ‘The market must play a decisive role’ and China ‘must actively and steadily push forward the breadth CAPITALISATION and depth of market-oriented reforms,’ China’s leaders solemnly How Bangladesh can benefit from proclaimed in a 60-point reform plan, released at last November’s Third Plenum. Part of that was Sino-Vietnamese conflicts supposed to be making state enterprises more market-oriented. It’s one more sign of how far China sign that China is playing the That goal is proving difficult. has to go before it starts treating its economic card. How effective will it ‘The challenges to commercialising state enterprises more like normal be? We will have to wait and see,’ SOEs stem from the government’s commercial businesses, as its said Xu Liping, an expert on reliance on SOE’s balance sheets leaders pledged last November. Southeast Asian relations at the and resources to perform many Government-owned companies have Chinese Academy of Social Sciences. strategic and policy-oriented been told to freeze temporarily any Tensions are growing between the functions,’ notes Fitch Ratings in plans for new business in Vietnam, two countries following China’s ‘China State-Owned Enterprises: On reports the South China Morning mooring of an oil rig in a disputed a Bumpy Path Towards Market Post on June 9. part of the South China Sea, a little Reform,’ a June 9 report. Those The government has temporarily more than 200 kilometres from include ‘undertaking outbound stopped Chinese state-owned Vietnam’s central coast. China’s investments to facilitate diplomatic companies from bidding for fresh southern neighbour has released a relationships,’ the report notes. It contracts in Vietnam,’ the Hong video showing a Chinese boat looks as though state enterprises Kong-based paper reported, citing ramming and sinking one of its own have a role to play when overseas several unnamed sources. ‘This is a vessels. relations are going sour too.

54 ICE BusinessTimes August 2014 Franchising

GOLD’S A historical GYM perspective into the success story of the world’s most popular fitness franchise

56 ICE BusinessTimes August 2014 Gold’s Gym

sold and today there are almost six hundred and fifty Gold's Gyms around the world, although most are based in North America. These six hundred and fifty gyms cater to three million active members. Gold's Gyms suffer with the same issue as all franchise operations as standards do vary from establishment to establishment. In the most general terms Gold's Gums are well known for their range of exercise equipment and trainers. Although traditionally focused on strength work, in recent years there has also been a growth in yoga, pilates and cardiovascular workouts. Overall the quality of equipment and cleaning standards matches up well to other There is one man who is often international gyms. credited as being the father of That though is not to say that there bodybuilding, and that man is Joe is not issues with Gold's Gyms and Gold from Los Angeles in California. complaints about the chain are not It was Joe Gold who opened up the unknown. It is though another first of the Gold's Gyms on Pacific generalization to say that there are Avenue, Venice Beach, California in often issues revolving around the Autumn of 1965. It was a gym membership. People have had that soon became an iconic fixture problems cancelling their in the area. The positioning of the membership and also the charging of gym was key, as it was near to the fees has been inconsistent. The already famous ‘Muscle Beach’, and membership though will normally it was soon attracting the leading allow you to access a Gold's Gym bodybuilders of the day including wherever you are in the world. Arnold Schwarzenegger, the newly Overall Gold's Gyms are one of the arrived Austrian muscleman. leading gyms. If you are looking to Joe Gold soon proved himself to be the standard of equipment and the an excellent personal trainer, but he training possibilities then the chain was an even better business man. is as good as any available. With the GOLD'S GYMS Gold figured that he could make right attitude the gym can help with money from the brand name by any fitness regime, and is no longer SUFFER WITH THE encouraging the purchase of the just for bodybuilders. Care though name in the form of franchises. It needs to be taken when signing up, SAME ISSUE AS was an inspired move and by 1970 read through the small print and be Joe Gold was in a position to sell the sure before signing that contract. ALL FRANCHISE chain of Gold's Gyms; today although still called Gold's Gyms the OPERATIONS AS chain was brought again in 2004 for $158 million by TRT Holdings Inc. STANDARDS DO The initial success of Gold's Gyms though was helped by its role in the VARY FROM 1977 film, ‘Pumping Iron’ which starred Lou Ferrigno, Franco ESTABLISHMENT Columbo and of course Arnold Schwarzenegger. Gold's Gyms soon TO became a destination for the ordinary citizen, as well as the ESTABLISHMENT celebrity. Franchises continued to be

August 2014 ICE BusinessTimes 57 Professional Development

One Interview Question ONE THAT That Reveals a Superstar Job Candidate SAYS IT ALL

e all have our favorite interview questions. (And every W interviewee has questions, like the five great questions job candidates ask.) Yet we all wish we had better questions to ask, especially when hiring the perfect person is so critical. But is there one perfect question that can identify a true superstar for your business? Turns out there is. Tejune Kang, founder of Six Dimensions, an IT service firm that provides expert consultants and on-demand implementation and management services, has one he swears by. ‘The world is full of mediocrity,’ Tejune says. ‘I don't just want to compete. I want to hire superstars, because I want to win the Super Bowl.’ So Tejune starts every interview with a few basics. Assessing the candidate's hunger and drive is important, so he asks how candidates determine their goals as well as what motivated them then and what motivates them now.

58 ICE BusinessTimes August 2014 Job Interview

He also looks for competitive people, so he asks about the last time they competed, what they like about winning, what they don't like about losing, how they feel when they lose--and what they do next. Then he takes a step back: ‘It sounds like you have the right degree, the right background, and the right skills, but in our company every employee has those qualities. That's a given. ‘The problem is, I just don't see that extra something in you that all of our people have.’ And then he throws down the gauntlet:

‘I'm sorry, but I just don't think this is the right fit for you.’ Then he sits back and waits. What happens? Nine out of 10 people immediately fold. They say, ‘Well, I appreciate your time.’ They say, ‘I'm sorry you feel that way, but thanks for the interview.’ But the true gems don't fold. They instead immediately rise to the challenge. After all, they want the job and know his company is the right fit for them. So they work hard to overcome his resistance. They say, ‘I think you're wrong. I'm here for a reason. Here's what you're not seeing.’ In short, superstars don't give up--which is exactly what you want every employee to do. ‘It's one thing to have a pleasant conversation during interviews,’ Tejune says. ‘And I definitely do that. But at some point, you also need to turn up the heat and see how people respond. Anyone can do well when things go perfectly. Superstars rise to the challenge when things don't go their way.’ The Gotcha Game I know what you're thinking. Tejune's approach sounds like a test. But aren't all interviews, at least in part, some form of test? You ask questions. You dig. You No matter how probe. You assess. No matter how hard you try to make an interview a conversation, there's still an element of ‘testing’ involved. Besides, some hard you try to companies literally test prospective employees (here's looking at you, Google). Others spring surprises like group interviews or role-playing sessions. Because make an there is no way to truly know what's inside a candidate--and how that candidate will perform once on the job--every interview involves some form of test the candidate passes or fails, even if that test boils down to, ‘Do I like this person?’ interview a Plus, Tejune's approach focuses on an important quality that is often hard to identify in an interview. Say you're hiring a salesperson. Salespeople hear ‘no’ conversation, dozens of times a day. Sales superstars rise to and defeat the challenge of ‘no’ much more often than mediocre salespeople; that's one of the qualities that there's still an make them super. Or take it a step further. Don't you want your employees to be able to push back and say you're wrong--and then explain why you're wrong and element of what is the better option? Of course you do. Superstars aren't just good at what they do. Superstars push ‘testing’ past barriers, push past rejection and roadblocks, and rise to the occasion when times truly get tough--which, in any business, they inevitably do. Qualified involved. candidates can do the job when life is good. Superstar candidates can do the job when everything collapses around them because they have the hunger and the drive and the competitive spirit to not just compete...but to win your version of Besides, some the Super Bowl. The next time you interview a job candidate who doesn't appear to have what it takes, be honest. Say, ‘I'm just not seeing it.’ (You may not feel companies comfortable when you do, but because you'll eventually tell the candidate he or she didn't get the job...why not do it now?) literally test Then sit back and see how the candidate responds. Most will thank you for your time. And that's fine. But once in a while, a candidate will rise to the occasion prospective and the challenge, and surprise you...and you will have found a superstar you otherwise would have missed. It's worth a shot, because no company ever has employees enough superstars.

August 2014 ICE BusinessTimes 59 Motivation EMOTIONAL INTELLIGENCE How Understanding Personalities Can Change Your Career

If you want to become your best Iself, it’s important to tune into personalities--your own as well as those around you--says John D. Mayer, author of Personal Intelligence. ‘Personality is a means by which each of us navigate our lives,’ says Mayer, a professor of psychology at the University of New Hampshire, and one of the co-developers of the theory on emotional intelligence. ‘It balances social requirements placed on us, and helps us go through a series of settings and situations in everyday life.’

infer information on that by looking at others.’ We can also pick up clues to our personality by listening to what other people say about us. ‘If someone calls me controlling once, I might not pay attention,’ says Mayer. ‘But if Defining Your Own somebody else says the same thing, I might say, ‘Hmm, I didn’t know that Personality about myself. I may have to examine Whether you’re outgoing, reserved, that a little bit more.’’ high-strung, or laid back, you can You can also actively solicit gather some information about your information about your personality, personality through introspection, although Mayer says it’s hard to do. but this process has its limits. ‘We ‘Information about ourselves is not often can accurately identify how we neutral,’ he says. ‘It can make our feel during certain situations,’ says blood boil or warm our hearts. It’s Mayer. ‘But we aren’t good at not always something we can hear identifying other traits, such as how right away.’ Our personalities make smart we are. The best we can do is it easy or hard to perform certain

60 ICE BusinessTimes August 2014 Human Personality

tasks or get along with other people. Understanding ‘People who Part of it is preprogrammed, but Mayer says there is considerable Others are good at flexibility in how we apply it. In fact, Those with high personal figuring other it’s possible to change certain intelligence are also good at qualities. identifying what makes other people people out If you’re naturally introverted, for tick. This is done through example, Mayer says you have observation, inquisitiveness, and possess an three options: natural curiosity. Information advantage. • You can simply live with it, gathered can then be used to adjust choosing an occupation and your own behavior or thoughts. For They social life that fits. example, Mayer says a receptionist • You can mitigate certain aspects at a medical office he visits is very understand of this personality trait, pushing stern and disapproving. ‘I’ve come yourself to go to parties, but to know that person and understand people’s needs explaining to friends why you that to be a habitual quality of hers,’ must leave early. well enough to he says. ‘There is something • Or you can actively work to pleasing in its familiarity. While it is change it, practicing being more know how to off-putting, I know she is efficient at social. cooperate with ‘While moving outside of our spotting issues with paperwork, natural areas encourages us to saving me trouble later.’ them, and they stretch in different ways, it takes a It’s easy to take someone else’s identify the huge amount of energy to change personality personally, but Mayer your personality,’ he says. says that's not the correct thing to troublesome do. Instead, determine if the other person’s behavior is based on members of Using the something you did or if it is the Information person’s way of expressing things. the group and Knowing your personality helps When you begin to understand the can keep an shape your future by giving you a personality of others, you can form range of your abilities. This lets you models of how that person may react eye on them.’ put yourself in the right situations. under other situations. Mayer says If you’re a risk taker, for example, this is helpful in forming then you could go into enterprising relationships with others, such as positions such as entrepreneurship; coworkers, as you can predict while people who like orderliness behavior. might pursue a career in accounting. ‘People who are good at figuring Personality can also help us other people out possess an systemize goals by telling a coherent advantage,’ he says. ‘They story, says Mayer. It helps you understand people’s needs well choose a career instead of a job, enough to know how to cooperate providing long-term information with them, and they identify the about what you can contribute and troublesome members of the group accomplish. You can also use knowledge of your and can keep an eye on them.’ While personality to shape the way you personal intelligence is just one of behave with others. For example, if many intelligences we each possess, you find out others consider you to Mayer says it’s an important one. be abrupt, you can work to soften Other types of intelligence include that aspect by actively practicing general, social, emotional, and politeness. You can also take partial verbal. ‘People who achieve notable steps to manage it. ‘You might tell successes--however they want to coworkers, ‘I know I come across as define it--often do so from a rude at times, but that’s not my sustained effort in a particular intention. If I do that, please let me direction,’ he says. ‘It’s hard to have know but don’t take it personally,’’ a sustained focus without high says Mayer. personal intelligence.’

August 2014 ICE BusinessTimes 61 Going Green

BUSINESS IN FORESTS In the Amazon, it turns out you can make money without destroying the forest

eforestation is a big problem in Brazil, now, deforestation is perceived to be Dwhich contains the majority of the risky--but that's largely dependent on Amazonian rainforest. But it's getting whatever government is in power. better. A paper published in Science The authors write that the will to curb points out that deforestation rates have deforestation ‘may be weakening in the declined by 70% between 2005 and face of a stagnant national economy ... 2013, even as land-intensive beef and and if deforestation policies lose soy production has continued to grow in political will, positive incentives for the country. How has Brazil pulled it farmers, counties, and states that are off? forgoing or reducing deforestation will The authors say that this burst of grow in importance.’ None of these growth combined with a lower rate of incentives, such as low interest loans deforestation is the result of several given to landholders who aren't converging factors, including a rise in involved in deforestation, are operating beef yields and better law enforcement at scale yet. and fines leveraged against anyone Campaigns by environmental considering deforestation. There's also organisations like Greenpeace have been more protection of land located in made it risky for companies to operate agricultural frontier zones, as well as in the Amazon and preserve their the so-called ‘Cattle Agreement’ spurred reputations--and as a result, the by Greenpeace, wherein the biggest beef authors speculate that responsible processing companies have stopped agricultural companies which could working with producers who deforested potentially help with sustainable after late 2009. The expansion in soy development could be scared away production through 2013 occurred altogether. entirely on land that had already been There are a lot of moving parts involved, clear-cut years earlier. and even if a decline in deforestation It's hard to say which of these factors continues, the country has other issues has contributed to the present situation in the Amazon to contend with, like the most because they all overlap overfishing, forest fires, and potentially around the same time and place, the problematic hydroelectric dams. But at authors admit. But the authors do know least we've seen that a drop in that a continued decline in deforestation rates--without stagnated deforestation can't be guaranteed. Right economic growth--is possible.

62 ICE BusinessTimes August 2014 Corporate Grooming SCENT-FUL BLISS Fragrances for this Eid

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ALL QUIET ON THE BORDER FRONT Border Makes China and India Bristle, Even as They Seek Closer Ties in Trade

hina’s state news media has welcomed India’s Cnew Prime Minister, Narendra Modi, as a pragmatic new partner on economic matters, noting that as a regional leader, he made four visits to Beijing seeking investment and even went to the trouble of printing his business cards in Chinese characters, in the auspicious colour of red. But as the two giant neighbours attempt to reinvigorate their relationship with the first in a series of top-level meetings, one image may interfere: that of a Tibetan man who was led to a seat near the front at Modi’s swearing-in last month. He is Lobsang Sangay, the prime minister of Tibet’s India-based exile government, and a man who is rarely invited to official ceremonies for fear of provoking the wrath of China. China has denounced the exiles and their spiritual leader, the Dalai Lama, as separatists, sometimes curtailing diplomatic relations with foreign governments that receive them. On the day of the ceremony, Sangay was still smarting from a recent snub from Norway’s prime minister, who refused to meet the Dalai Lama, and he was initially unsure what to make of the invitation in New Delhi.

64 ICE BusinessTimes August 2014 Indo-China Trade

‘I thought, ‘Maybe I will get to sit at the back end, as long as I can sit in the shade.’ But then I showed them the ticket, and they told me to go to the front,’ said Sangay, head of the Central Tibetan Administration, which has been arguing for three traditionally Tibetan provinces to be granted ‘genuine regional autonomy’ within China. Sangay’s presence at the event — at the request of Rashtriya Swayamsevak Sangh, the influential Hindu nationalist organisation that helped give Modi’s political career its start decades ago — attracted little notice until last week, when China lodged a formal complaint with India, according to The Times of India. reducing their relations with 26-year-old Tibetan exile set himself It points to abiding tensions Pakistan.’ on fire to protest China’s policies in between the world’s two most China’s public statements since Tibet and later died. Graphic footage populous countries, focusing on Modi took office have been of his act was seen around the their shared 2,521-mile border and uniformly positive, and Wang told world, providing the exile dating back more than 50 years, to The Hindu, a daily newspaper, that community with a rallying point. China’s territorial claim over Tibet. President Xi Jinping had ‘personally Among the strongest advocates for Even as Modi pursues closer instructed him’ to visit India soon Tibet’s exile movement in New Delhi economic ties with China, there after Modi took office. Wang said is Rashtriya Swayamsevak Sangh, have been reminders of deep he had come bearing the message which recommended inviting suspicion from India’s security that ‘China stands by your side Sangay and his predecessor to the establishment. throughout your efforts of reform swearing-in ceremony on May 26, Modi’s new junior minister for and development, and your pursuit according to Ram Madhav, an internal security is from the state of of dreams.’ official. Arunachal Pradesh, parts of which China is offering to help India set up Pemba Tsering, the speaker of are claimed by China. And on special economic zones and promote Parliament in the Tibetan exile Sunday, the day China’s foreign industrial development clusters, and government in Dharamsala, said the minister, Wang Yi, arrived in New has already sent a delegation to invitation had sent the message that Delhi, an Indian newspaper reported inspect prospective sites. Wang said ‘we will not see a downgrading in that China had been building up a some Chinese business had already Tibet as an issue for India’ with the military presence in begun construction on industrial change of governments. Pakistan-controlled Kashmir, citing facilities, and were hoping for Mohan, the analyst, said support for a classified document leaked by preferential policies to speed up the the Tibetan exiles ran deep in Indian India’s Intelligence Bureau. process. society, regardless of party. ‘We’re ‘The basic outlook is that we want to But tension over border issues was still the only ones who support do more on the business side; that not far away. Early Sunday, before them,’ he said. ‘The Indians are the doesn’t mean they are going to be Wang arrived for his first scheduled only ones who still give them different on security issues,’ said C. meetings, security forces in New shelter, and we are willing to stand Raja Mohan, a leading Delhi took up positions around a by that commitment.’ strategic-affairs analyst in New Tibetan neighbourhood in north He added, though, that Delhi was Delhi. He said China, facing Delhi. Several hundred activists not likely to ever return to the turbulent relations with neighbours from the Tibetan Youth Congress, forceful advocacy of the 1960s, like Japan and Vietnam, had sent a who had gathered to stage a protest when the Indian Army fought a brief similar message to India. outside the Chinese Embassy, were war with China over border ‘I think they’re signaling that they locked in and unable to leave, said incursions. ‘There will be more would like this part of the periphery Tenzing Jigme of the Tibetan Youth empathy, more affection visibly,’ to be reasonable and tranquil,’ he Congress. Mohan said. ‘How much are they said. ‘They have not indicated Two years ago, during a visit by willing to do? That will be anything on boundary disputes or President Hu Jintao of China, a interesting.’

August 2014 ICE BusinessTimes 65 Innovation

Because we need to be HAPPY How Pharrell's Creative Director Is Making the World Happy

Pharrell Williams recently told a magazine that he used to be ‘the guy next to the guy.’ It was an apt description for a man who spent much of his two-decade career as the behind-the-scenes producer, or the somewhat famous singer/rapper in the video with the very famous singer/rapper. This past year, thanks to gargantuan hits, an Oscar nomination and a critically acclaimed solo album, Pharrell became The Guy. Which begs the question: Who is next to him? Her name is Mimi Valdés, and her vision is changing the way the world consumes pop culture.

66 ICE BusinessTimes August 2014 Creative Direction

Valdés is creative director for Pharrell's i am OTHER, a multimedia company that works in music, apparel, philanthropy, film, video, and whatever else Pharrell wants to explore. Hers is a simple title for a complicated position where she is responsible for an astounding number of things. ‘Album covers, music videos, live concert performances, I’m in charge of executing all of that,’ says Valdés, adding that she is not as directly involved with the fashion side of Pharrell's growing empire. She is working on so many projects simultaneously that she has taken to listing each on its own index card. The stack is more than an inch thick. It's hectic, yes, but her former career as a magazine editor more than prepared her. ‘When you're an editor, there are all these moving parts--writer, editor, photographer, and art,’ says Valdés, who was editor-in-chief of both Vibe and Latina magazines. After years of unofficially giving Pharrell, a close friend, the advice and counsel that a creative director would, he asked her to join i am OTHER at launch. ‘I was unsure at first,’ she admits. ‘I had never done this before. But I had to check myself--I have done this before. I know how to create content and this is just a different form of content. Also, I know more than anybody how to help Pharrell execute his vision.’ She started in January 2011 and immediately went to work shaping a company built on the idea of innovative creativity. And then came ‘Happy,’ the 2013 song that catapulted Pharrell to mega-fame. ‘'Happy' is such an amazing little blessing of a story,’ Valdés says. A track on the Despicable Me 2 soundtrack, ‘Happy’ needed a music video before the film was released on DVD. ‘Originally Pharrell wanted to do something in a black Mimi Valdés church with a choir,’ she explains. ‘Then I said, 'I feel like, do what the character in the movie does. He dances through the streets, saying hi to people, doing acts of kindness.'‘ In someone ‘I had never done else's hands, the ‘Happy’ video might have been four minutes of Disney cuteness starring Pharrell. Valdés, however, wanted to this before. But I bring on the French directing duo We Are From LA (with additional creative direction from Woodkid), who turned ‘Happy’ had to check into a daringly original 24-hour video that played the song on loop while different people danced. It spawned more than 1950 myself--I have done tribute videos and propelled the song to No. 1 around the world. Many companies would have leaned on the success of ‘Happy’ this before. I know for years, but i am OTHER wants to ‘get involved with everything . . . every medium,’ Valdés says. So on her stack of how to create index cards there are projects for potential films, a European tour, set design for The Voice (where Pharrell is a coach), and content and this is corporate branding. ‘We can be a creative agency, figuring out ways for brands to engage with new audiences,’ she says. ‘But just a different form only ones that are okay taking risks--Pharrell wants to change culture.’ of content. Also, I So does Valdés, which is why she is also creating her own independent magazine. ‘Kaleido Beauty is an idea I've had know more than forever,’ she explains about the print title that will launch in December. ‘When you look at covers of magazines, it's normally anybody how to dictated by Hollywood and there's not a lot of variety. Kaleido is concerned with the culture of beauty, with exploring what people help Pharrell really consider beautiful. And why.’ For some, adding another major project to their lives might be a major deterrent. But for execute his vision.’ Valdés, it brings a deep satisfaction. ‘If I can entertain and inspire and inform, I am the happiest person in the world.’

August 2014 ICE BusinessTimes 67 Corporate Ethics

Are You Machiavellian? Most super-successful people exploit weaknesses in others. If you don't, watch your back

If I had to point out one major difference between educated people who make ordinary incomes and those who make big incomes, I would say that the latter, the super-successful, are much, much better at looking out for their self-inter- ests. Indeed, the survey research for an author’s book titled Business Brilliant revealed enormous disparities between self-made millionaires and people with ordinary middle-class incomes when it comes to unscrupulous, ‘Machiavellian’ behavior. Almost 90 percent of the millionaires in the survey agree that ‘it's important in negotiations to exploit the weaknesses in others.’ The middle class? Just 24 percent. About 80 percent of the million- aires say that ‘coming out on top in business dealings is paramount.’ For the middle-class, just 31 percent agree. And a full 77 percent of millionaires say, ‘I do not have any problems confronting my business associates.’ Fewer than 13 percent of the middle class say the same. On this particular point, the multi-millionaires, those who have a net worth higher than $10 million, are nearly unanimous. More than 98

68 ICE BusinessTimes August 2014 Exploitation

percent say they have no problem • Are you less emotionally affected with confrontation in business. by social norms and social Get the picture? The numbers pressures than most people? suggest that what separates the • Are you good at identifying super-successful from everyone else optimal strategies for getting is that they play to win, exploit what you want? weakness when they find it, and • Do you consider your attitude defend their interests even if it toward business as cool, requires a showdown with a partner detached, and rational? or friend. Does this mean that the • Do you consider yourself oppor- super-successful are maestros of tunistic? Machiavellianism? Most super-suc- Now let's say you disagree with most cessful people think so. Almost 78 of these characterizations. Injustice percent admit that ‘being Machiavel- upsets you more than inefficiency. lian is essential to becoming You consider opportunism to be wealthy.’ The middle-class, though, distasteful and destructive. You prefer to think the business world is regard your sensitivity to social a kinder, gentler place. Fewer than norms and pressures as an asset in 17 percent say that Machiavellian- doing business with people. Does ism is essential to becoming that mean you can't be financially wealthy. successful? Not at all. How Machiavellian are you? In order Remember that at least 22 percent of to find out, you don't need to read the super-successful in my survey You regard your The Prince, Machiavelli's 16th-cen- don't agree that Machiavellianism is sensitivity to tury treatise on power. You can take essential to success. So scoring low an online test devised years ago by on the Machiavellian personality social norms and social psychologists Richard Christie test is hardly a barrier to your and Florence L. Geis to measure success. But if that's the case for pressures as an Machiavellianism as a distinctive you, it's important to remember that asset in doing personality trait. Their 20-question your way of thinking does put you in survey will give you an instant the minority when dealing with the business with assessment of where you rank on wealthy and powerful. Next time the Machiavellian spectrum. you're ready to negotiate a deal or people. Does In general, social scientists define sign a business agreement, keep that mean you Machiavellianism as corresponding these Business Brilliant survey to people who would respond results in mind. Whenever you meet can't be financially affirmatively to the following people who seem to display these questions: Machiavellian beliefs and behaviors, successful? • Are you more upset by inefficien- it's not paranoid to wonder if they're Not at all cy than injustice? ready to pick your pockets in a deal. They just might be. Most people don't consider Machia- vellian tendencies during their business dealings at all. Only 36 percent of middle-class people say that ‘in negotiations I expect people to try to take advantage of me.’ About 70 percent of self-made millionaires, however, have that expectation. So even if you're not out to screw the other guy, seven out of ten super-successful people will assume that you are. hether you consider yourself Machi- avellian or not, you need to be aware most every successful person you deal with is--a phenomenon that could help you win.

August 2014 ICE BusinessTimes 69 Leadership

PAY IT FORWARD New research says that companies that encourage generosity between employees score wins by generating ideas, sharing knowledge, and creating a better culture

uilding a pay-it-forward culture at your company may sound ridiculous. But it's not as Bcheesy as Helen Hunt, Kevin Spacey, and Haley Joel Osment made it seem in the movie. Recent research by Wayne E. Baker, a professor at the Ross School of Business at the University of Michigan, and Nathaniel Bulkley, who consults on organizational effectiveness issues for Innovation Places, found that two types of generalized reciprocity can be used to create a cooperative culture: Pay it forward, where someone helps another person and that person assists a third, and reputation rewarding, where a person who is known to pitch in receives more from co-workers than less helpful colleagues.

70 ICE BusinessTimes August 2014 Pay it Forward

Baker and Bulkley conducted an experiment with MBA students, Harvard Business Review writes, where students ‘This supports the were required to post five questions to a group message board hypothesis that the and respond to 15 requests from others. The activity counted for 10 percent of the students' grades. Anything beyond those more help a person 15 requests did not win students additional credit. The results are encouraging. The more responses posted to receives from others, the forum in total, the greater the chance a student would the more likely that answer an additional question--no matter how many questions that student had already answered. ‘This supports person is to help the hypothesis that the more help a person receives from others, the more likely that person is to help someone else. someone else. Second, the more responses a person wrote in the week before Second, the more making a request of his own, the more likely others were to answer his question. This supports the idea that helping responses a person others will make it more likely that they themselves will receive help--rewarding reputation did have an impact,’ wrote in the week writes Gretchen Gavett in Harvard Business Review. before making a There's one caveat for rewarding reputation though: a person's recent assistance is the only thing that matters. request of his own, Baker and Bulkley write that ‘reputation effects decayed . . . and actually turned negative’ fairly quickly. Therefore, an old the more likely others reputation for helping out colleagues isn't enough. Baker and were to answer his Bulkley refer to this as the ‘What have you done for me lately?’ syndrome. question. This Paying it forward, though, is less complicated. ’The sole requirement [of paying it forward] is that a participant be supports the idea that aware of his or her own experience, which is simpler and helping others will more salient than observing others and keeping track of what they do,’ Baker and Bulkley writes. make it more likely that They also found that both general reciprocity behaviors can work well together. ‘Over time, rewarding reputation and they themselves will paying it forward may have created a virtuous cycle of receive help-rewarding cooperation,’ the two write. ‘The fact that almost 9 of the 10 participants continued to use the system after the quota [had reputation did have an been attained] suggests that a 'tipping point' may have been reached. If it had not, then a vicious cycle might have ensued, impact,’ and cooperation would have plummeted.’ Is it hard to instill such thinking in your company? During their research, Baker and Bulkley found a few large companies that have programs to promote cooperation. At Southwest Airlines, they have the ‘agent of the month’ award, which recognizes employees who have helped others do great work. The airline says using gratitude as a tool motivates other employees to help each other. Google has a ‘a peer-to-peer bonus system that empowers employees to express gratitude and reward helpful behavior with token payments,’ Baker and Bulkley found. The policy basically has a pay-it-forward mechanism built in--’a recipient of a peer-to-peer bonus is given additional funds that may only be paid forward to recognize a third employee.’ ConocoPhillips, the oil and gas company, built an online knowledge platform where employees pose questions and others provide answers. Baker and Bulkley say that the company has saved $100 million by this means of tapping employees' knowledge. Paying it forward at your workplace doesn't sound so ridiculous now, does it?

August 2014 ICE BusinessTimes 71 Company Culture THE NEED FOR THE BRAVE Are your employees empowered to speak up and challenge the status quo, or do they keep it safe?

Every business has many types of business need and want. These folks employees. There are the ones who clip will bubble up issues, not bury them in their toenails at their desk. Every an attempt to be safe. Safe won't get company has a blend of the good and you growth or momentum. Safe will get bad. But there's one type of employee you status quo. E that I want to single out: the brave one. If your business does not have brave You Need to Be employees, you could be missing out big time when it comes to truly having Brave, Too top talent. What exactly do I mean? Let So, how do you ensure your employees me show you. feel safe enough to be brave? As the leader of your company, you've got to lead by example. If your employees see Being safe gets that you and your leadership team you nowhere question the status quo and seek out At too many companies, employees are honesty, they may feel more empowered afraid to rock the boat. Fear paralyzes to follow suit and speak their minds. them. Fear shuts them down and shuts But here is what's really important: them up. And that, my friends, can When they do speak up, it's all about prevent your business from going where how you or their managers react. Do it needs to go. What you need are some you fire-hose them? Or do you truly fearless, brave souls who are not afraid listen, take them seriously, and to push back when necessary. They are empower them to be heard? It takes a not afraid to challenge things and speak brave leader to have a brave team. So, I up for what your customers and ask you, are you feeling brave?

August 2014 ICE BusinessTimes 73 On the Bookshelf

Hard Choices Hillary Clinton’s new book is sure to show a side we never knew before

The rollout of Hillary Rodham latest issue of People magazine, the Clinton’s new book, ‘Hard Choices,’ wall-to-wall lineup of television as a prelude to a possible 2016 run interviews this week, a grueling One of the few things for the White House, has had all the cross-country book tour. this book shares with subtlety of a military operation The book itself, however, turns out ‘Living History’ is its ramping up to full speed: the leak of to be a subtle, finely calibrated work the Benghazi chapter to Politico late that provides a portrait of the former emphasis on Clinton last month (presumably to get talk secretary of state and former first as someone capable of about that hot-button topic out of lady as a heavy-duty policy growth and change the way early), the cover story in the advocate. Compared with her 2003

74 ICE BusinessTimes August 2014 Hard Choices memoir, ‘Living History’ — which tumultuous days as first lady policy-oriented, there are personal tended to lapse into glib, (Whitewater, Monica Lewinsky) with tidbits strewn lightly throughout, stump-speech like pronouncements images of her negotiating with like small chocolate Easter eggs. and reactive efforts to blame leaders on the world stage; and to Clinton tells us that she would fight assorted enemies for her and her lift her above the partisan jet lag by sometimes digging ‘the husband’s travails — ‘Hard Choices’ mudslinging of Washington. fingernails of one hand into the is a statesmanlike document The only chapter in which Clinton palm of the other’; that she kept the intended to attest to Clinton’s sounds defensive or defiant is the raid on Osama bin Laden’s hide-out wide-ranging experience on national one on the 2012 attack that killed secret from her husband (‘They told security and on foreign policy. There four Americans in Benghazi, Libya — me not to tell anyone, so I didn’t tell is little news in the book. And unlike the subject of continuing anyone’); that President Obama former Defence Secretary Robert M. investigations by House once called her aside before an Gates’s rawly candid memoir ‘Duty,’ Republicans, bent on asserting that international meeting for what she this volume is very much the work President Obama and Clinton thought was a sensitive of someone who is keeping all her covered up what they knew about the consultation, only to hear him political options open — and who causes of the attack. ‘I will not be a whisper in her ear, ‘You’ve got would like to be known not only for part of a political slugfest on the something in your teeth.’ mastering the art of diplomacy, but backs of dead Americans,’ she writes. Clinton’s views are perceived as also for having the policy chops to Clinton has always been a often more hawkish than Obama’s, become chooser-in-chief. conscientious A grade-student, and and in these pages, she walks a ‘Hard Choices,’ like Clinton’s tenure ‘Hard Choices’ is methodically delicate line between being his loyal at the State Department, does not organised by country (China, Russia, lieutenant and articulating her own evince a grand, overarching foreign Iran, etc.), region (the Middle East, beliefs. She takes a hard line on policy vision, as Henry A. Asia, Latin America) and topic (the Putin, writing that ‘hard men Kissinger’s 1994 book ‘Diplomacy’ Arab Spring, climate change, human present hard choices’ and ‘strength did. Rather, Clinton displays a rights). Though she does not and resolve were the only language’ pragmatic, case-by-case modus possess the genial explanatory gifts that the Russian leader understood. operandi. Some critics have argued of her husband (showcased in his Of her unsuccessful argument that she played it safe as secretary 2011 book about the economy, ‘Back within the administration for of state, that she had no marquee to Work’), she provides the lay arming and training moderate achievements like a Middle East reader — and potential voter — with Syrian rebels, she writes: ‘No one peace accord. And her new book succinct and often shrewd likes to lose a debate, including me. (written with an assist from what appraisals of the complex web of But this was the President’s call and she calls her ‘book team’) suggests political, economic and historical I respected his deliberations and that Clinton’s main legacy lies in forces in play around the world, and decision.’ reorienting American foreign policy the difficulties American leaders Addressing much-chronicled in a globalised, tech-savvy 21st face in balancing strategic concerns tensions between the State century, and in helping restore the with ‘core values.’ The tone is calm Department and White House country’s image abroad in the wake and measured, with occasional advisers, Clinton enumerates some of the Iraq war and the unilateralism humorous asides, like describing an of her differences with them in the of President George W. Bush’s offer by Vladimir V. Putin, the book — including her counsel of administration. Russian leader, to take Bill Clinton caution to Obama in pressing One of the few things this book along on a polar-bear tagging President Hosni Mubarak of Egypt to shares with ‘Living History’ is its expedition. step aside in the face of mounting emphasis on Clinton as someone More positive developments like the street protests in Cairo. She also capable of growth and change: an diplomatic and economic isolation writes that it was painful to see her individual who says she learns from of Iran are described in considerable old friend Richard Holbrooke, the past mistakes like her 2002 vote to detail, while more controversial veteran diplomat she had chosen to authorise military action in Iraq. subjects like drone warfare and the handle the Afghanistan-Pakistan (She ‘got it wrong,’ she writes of data collection programs of the portfolio, ‘marginalised and that vote. ‘Plain and simple.’) ‘Hard National Security Agency get only undercut’ by younger White House Choices’ seems meant to serve cursory, talking-points treatment. aides who disliked his flamboyant, several purposes at once: to Beltway readers will not learn much old-school style. document Clinton’s tenure as new here about matters like the Of her own plans — to run or not to secretary of state; to put her Obama administration’s handling of run for president — Clinton writes dysfunctional 2008 presidential the war in Afghanistan or its that she has not decided yet. It’s campaign in the rearview mirror; to counter terrorism policies. ‘another hard choice’ to make in the supplant memories of her For readers who are less near future.

August 2014 ICE BusinessTimes 75 Movies

not just the WOODS ANYMORE 'Transformers: Age of Extinction' Heralds Age Of The Globalised Blockbuster With US-Chinese Co-Production

You wouldn’t know it from the With less than a month before the American flags waving wistfully in premiere, ‘Transformers: Age of the trailer, but ‘Transformers: Age of Extinction’ is aggressively courting Extinction’ could be one of the the Chinese market. Paramount has biggest Chinese films this year. partnered with the China Movie Like previous entries in the Media Group to promote the film ‘Transformers’ series, the fourth heavily across the nation.’ installment of Michael Bay’s Transformers’ is set to close the robot-heavy action franchise is Shanghai International Film Festival produced by Hollywood’s di only a few days after its world Bonaventura Pictures, but ‘Age of premiere in Hong Kong. Among the Extinction’ also bears co-production more creative pitches is a video credits from a pair of Chinese message from Mark Wahlberg studios, Jiaflix Enterprises and the wishing Chinese students luck on China Movie Channel. their upcoming -- and extremely ‘Transformers: Age of Extinction’ stressful -- college entrance exams. was shot extensively in the Chinese ‘Hey, everyone, I’m Mark Wahlberg, mainland and features Chinese star of the new movie Transformers actors Li Bingbing and Han Geng, 4: The Age of Extinction,’ Wahlberg making it the largest of a new group says with the assistance of Chinese of Hollywood blockbusters that do subtitles. ‘The annual college more than pay lip service to the entrance exam is coming, so I’d like international market. to wish all of you students out there

76 ICE BusinessTimes August 2014 Transformers 4 lots of luck, and don’t forget to catch Transformers 4 -- after the exam!’ From casting to content to promotion, ‘Transformers: Age of Extinction’ is heralding the age of the truly international blockbuster. This isn’t an accident; China is the second-biggest film market in the world, and it’s only going to get bigger. The country’s box-office grosses in 2013 hit $3.6 billion, and 2014 is headed for a take of $5 billion, according to the Hollywood Reporter. (Deadline estimates a slightly more modest $4.5 billion.) time-traveling superhero feature set incremental dollars, but getting To meet growing demand, China a final-act fight scene in China and $100 million in China isn’t the same added more than 5,000 screens in cast Chinese star Fan Bingbing as the as getting $100 million in Latin 2013 alone, Variety reports. The U.S. teleporting X-Man Blink. (Fan also America,’ Wible added, noting that box office, by comparison, is appeared in the Chinese-only scenes Chinese exhibitors guarantee expanding at a significantly slower of ‘Iron Man 3’). Despite these studios the lowest percentage of box pace, hovering at $10.9 billion in efforts, ‘Days of Future Past’ uses its office revenue in the world. 2012 and 2013, up slightly from time travel mechanism to launch a There is, however, a workaround to 2011’s $10.1 billion. If the numbers soft reboot of the X-Men series at the this, which ‘Transformers’ and continue along that path, China end of the film, meaning, for others are employing. While foreign could rival or overtake the U.S. box purposes of the story, the Chinese studios receive only 25 percent of office by the end of the decade, and scenes effectively never happened. the box office gross in China, studios Hollywood is struggling to move ‘Transformers: Age of Extinction’ is, that co-produce their features with into that market. by contrast, the first of a wave of Chinese production companies ‘It’s a market where if you can get American blockbusters to make a receive a better cut of 38 percent, through the quotas they have in place, truly naturalistic effort at China Briefing explains. That still you can make a lot of incremental integrating Chinese and American isn’t as good as other foreign money on your films. It’s the content, and it’s likely to pay off markets, of course, but it’s a step up. second-largest market and it’s growing handsomely. The last film in the Going forward, more and more at a very rapid rate,’ Anthony Wible, series, ‘Transformers: Dark of the studios are likely to use the managing director of entertainment Moon,’ took in $173.6 million in co-production route as a means of and digital media at financial advisory China and currently stands as the boosting their take-home in China. firm Janney Montgomery Scott, told Ice country’s fourth-highest grossing Some studios are banking on the Business Times. film ever. Chinese market enough that they’re ‘Transformers’ is hardly Still, there are a number of risks in permanently expanding into the Hollywood’s first attempt at every business venture, and country. In 2012, DreamWorks reaching out to Chinese audiences, Hollywood’s move into China Animation announced the joint but it’s arguably the smartest -- and doesn’t mean the market is strictly a venture Oriental DreamWorks, the most thorough. Last year, cash cow. For one, while the Chinese designed to produce animated films Marvel’s ‘Iron Man 3’ boasted a box office has been growing at an for both Chinese and American co-production status with China’s enormous rate, American studios get markets. Next winter, DreamWorks DMG Entertainment, and director a smaller slice of the gross than in Animation and Oriental DreamWorks Shane Black filmed about three any other foreign market. will jointly launch ‘Kung Fu Panda minutes’ worth of scenes exclusive ‘It’s not the most lucrative market 3,’ about a third of which will have to the Chinese cut of the film. But for your film given that the film been produced in China. most Chinese audience members rental rates are heavily skewed in Even more than ‘Transformers: Age were reportedly turned off by the favour of the exhibitors,’ Wible said. of Extinction,’ the latest installment scenes, which pandered to the In the United States, Wible noted, in the ‘Kung Fu Panda’ franchise audience with product placement exhibitors and studios typically split won’t just be a foreign export, it will and lines like, ‘Tony doesn’t have to film gross half and half, but in be a collaboration between creative do this alone -- China can help.’ China, local exhibitors receive 75 teams on two different sides of the This year’s ‘X-Men: Days of Future percent of the revenue while studios globe, and a sign that the future of Past’ tried a more subtle approach receive only 25 percent. large-scale filmmaking no longer that worked out more smoothly. Fox’s ‘It’s great because it’s all belongs exclusively to Hollywood.

August 2014 ICE BusinessTimes 77 Sports

BUSINESS BY CONSOLATION 2022 Why Qatar's Tarnished 2022 World Cup Is a Safe Bet for Sponsors

Add sponsors to the list of those raising questions about Qatar hosting the 2022 FIFA World Cup. They can go just behind bettors, human rights monitors, environmental engineers, and former U.S. President Bill Clinton.

78 ICE BusinessTimes August 2014 Qatar : 2022 FIFA World Cup

Over June, FIFA global partners Sony yet to be surprised by the fans’ and Adidas issued statements willingness to forgive and forget. If I expressing their concern about the had to put a bet on the line right latest allegations of bribery in now, even if it does happen in Qatar Qatar’s winning bid. Those were the way it’s planned right now, I quickly followed by Coca-Cola, Visa, think it still could be a successful Hyundai , and Anheuser-Busch in World Cup and sponsors could still Bev. ‘As a FIFA partner, we expect get a return on their investment.’ these allegations to be investigated Qatar’s World Cup, for all its ugly appropriately,’ Sony spokesman preamble, is still a better investment George Boyd said in a statement that than, say, a Donald Sterling-owned captures the general message. ‘We Los Angeles Clippers. Sponsors continue to expect FIFA to adhere to didn’t just express concern in that its principles of integrity, ethics, and case—they ran for the exits. Those fair play across all aspects of its investments were smaller, easier to operation.’ undo, and easier to renew. And the ‘The negative tenor of the public goodwill from backing out was debate around FIFA at the moment probably greater than any exposure is neither good for football nor for from the sponsorship. FIFA and its partners,’ read a There is little doubt that the U.S. statement from Adidas, FIFA’s market is now a key consideration longest-serving sponsor. Coca-Cola for FIFA. Although there has been no followed suit. ‘Anything that routine bad press about indication yet that the negative detracts from the mission and ideals construction delays, corruption, and press regarding the Qatar World Cup of the FIFA World Cup is a concern to misspent funds—and then share in bid, including the rights of workers’ us, but we are confident that FIFA is the glory of last-minute goals and building the infrastructure around taking these allegations very deliriously happy crowds. ‘In some the tournament, has impacted seriously and is investigating them ways, these sponsors are like the interest, the more long-sighted thoroughly through the fans’ says Andrews. ‘They wish this among FIFA’s members will be well investigatory chamber of the FIFA wasn’t happening. They wish they aware of the risk of slowing the ethics committee.’ Sony, meanwhile, could just concentrate on the growth of the game. stated, via a spokesman, that it matches and pretend it wasn’t going FOX has already voiced its concerns expected the allegations ‘to be on.’ about the idea that the Qatar World investigated appropriately.’ Comedian John Oliver described this Cup will be moved to the winter in The brands that together pay exact fan mindset in a bit on his order to avoid the blazing-hot hundreds of millions to be HBO show Last Week Tonight. After summer temperatures. Having paid associated with the World Cup calling FIFA a ‘comically grotesque so much for summer programming, stopped short of making specific organisation’ and describing Qatar’s the idea of marketing the World Cup demands or issuing ultimatums. World Cup as potentially ‘the most near the Winter Olympics and at the This was the corporate equivalent of deadly Middle Eastern construction climax to the NFL season will not parents telling a wayward child not project’ since the Egyptian impress. to let them down. ‘These are very pyramids, Oliver confesses that he is It is well established that, not only tempered statements,’ says Jim ‘still so excited about the World Cup did Blatter not want the World Cup Andrews, vice president for content next week’ in Brazil. to go to Qatar, but he wanted it to go strategy at sponsorship consultant With Qatar, where bribery to fellow bidder the U.S., adding an IEG. ‘I think that is all we can expect allegations come amid concerns extra element of intrigue. It could be at this point.’ about player and fan safety in the that Blatter, who will be up for A World Cup sponsorship always extreme heat and worker safety in a re-election next year, likely against comes with downside risk. In Brazil, repressive labour system, FIFA is Qatar-supporter Michel Platini, for instance, Coca-Cola and others testing the limits of the existing could help safeguard both his own are currently dealing with the fallout calculus for sponsors. So far, future and the reputation of FIFA, from political protests that have however, the math still works. especially in the U.S., with a re-vote. turned their anger toward FIFA. By ‘I would be hard pressed to say to a With a cumulative TV audience in the time the matches begin, company that had a clear target the tens of billions, the World Cup however, the intense interest of the market that was perfectly aligned might need an actual smoking gun largest global audience in sports with World Cup fans to say, ‘Don’t in the hand of FIFA President Sepp usually overwhelms any negative sponsor the World Cup wherever it is Blatter before Adidas or anybody associations. Sponsors absorb the going to be,’’ says Andrews. ‘I have else backs out.

August 2014 ICE BusinessTimes 79 Hot on Wheels

WHETHER IN REVERSE GEAR

Sales of four-wheeler fall globally, many companies recall cars. But Bangladesh is still a growing market

IBT Desk

Sales of cars across the world have region still remains a relatively witnessed fluctuations, a decline in vibrant region as indicated in the most cases recently, raising fierce competition among the rival concerns among the manufacturers car manufacturers who want to in the West and Japan.Major become successful in Asian market, automobile players in the global especially in China. market have also recalled millions And in Bangladesh, the car market of vehicles and incurred losses and is still growing after dull sales additional costs in recent months. during the months of political The situation has been described by turmoil,thanks to the demand for market operators as worse than the private cars on the streets of major one during the global financial cities including Dhaka, market crisis in 2008. operators said.The government has However, Asia and the Pacific also provided certain incentives for

80 ICE BusinessTimes August 2014 Car Sales

Co is likely to recall vehicles with 3,624 cars were registered during the potentially defective air bags, a move that could expand a massive, first three months of this year, multi-company air-bag recall by more than a million. A similar move indicating increase in sales might be taken by Toyota Motor Corp which was reportedly recalling 6.4 million vehicles globally, increasing sales of some cars by in Asia through success in China. including 35,124 in the UK, over slashing down supplementary duty Building muscle in China by five separate issues. on imported vehicles in the producing Jeeps and more Fiats German carmaker BMW earlier said proposed 2014-15 budget despite locally is a pillar of a new it would voluntarily recall more duty hike in some cases. turnaround plan to boost global than 156,000 vehicles in the United Registration of vehicles, especially sales by as much as 60% to 7 States; including its popular 3 private passenger cars, has not million cars by 2018. Three Series compact sedan, to check for shown a marked rise in recent years Japanese carmakers – Toyota, potentially defective bolts that after a high growth in 2010 when Honda and Nissan that have could lead to engine damage. Also, as many as 22,960 private cars upmarket brands Lexus, Acura and General Motors Co issued five more were registered with Bangladesh Infiniti – are making renewed recalls, covering almost 3 million Roar Transport Authority (BRTA) efforts to close the gap with three vehicles globally, and was expected compared to 12,950 in 2011, 9,224 German brands, Mercedes, BMW to take a charge of up to $200 in 2012 and 10,472 on 2013. ‘The and Volkswagen's Audi. Together million. It saw the first quarter registration figure which indicates the German trio, now have 70% of profits hit by a $1.3bn (£774m) sales has started increasing again,’ the market for fast, expensive and charge to cover the cost of a huge said a businessman who sells luxurious cars, whereas the recall. Japanese reconditioned cars. The Japanese have just 10%. In India, Tata Motors posted a first three months of the current However, the stories on automobiles 29.6% decline in its total vehicle year, 3,624 cars were registered. that dominated newspaper pages – sales for the month of March when Global players like Fiat Chrysler both print and online – around the Maruti Suzuki, the country's largest Automobiles is now trying to world are related to recalling cars car maker posted 5.5% decline in capture a significant market share by various companies.Honda Motor total sales.

August 2014 ICE BusinessTimes 81 Startup TAKE NO It's time to stop chasing MORE venture capital funds already

Running an email productivity didn't understand the problem we lightheartedness’ paid off, helping startup isn't easy, but the husband solved,’ Moore says. ‘We met with Baydin turn profitable in 18 months. and wife team behind Baydin have one and were explaining how People ponied up, because ‘they managed to make it work. Alex Boomerang lets you alert yourself if know that we're a tiny startup,’ says Moore's and Aye Moah's flagship you don't get a response to an email Moore, and that the Boomerang product is the Outlook and Gmail and he said, 'Why would you need plug-in provides value. As a startup, plug-in Boomerang, which lets you that?' He just didn't have the ‘we try to be people that our schedule messages to respond to problems that we solve.’ customers can root for.’ and send later. It's been downloaded Here's why not chasing venture Since Baydin charges either $5, $15, 3 million times, and the related capital worked out for Baydin. or $49 a month for Boomerang, website The Email Game, which depending on the plan users sign up helps users get to Inbox Zero, was Going the Freemium for, it isn't like this is a ‘one-time big named one of Time magazine's best Route ticket purchase’ either, says Moore. sites in 2012. Boomerang ‘had users and traction That made it more enticing. Beyond their clever products, what's early on,’ says Moore, so ‘we used interesting about Baydin is that the that angel round to keep ourselves The Downside of startup has never taken venture really lean until we figured out how funding. In winter of 2010, it took to monetize.’ At one point, they Profitability an angel round of $400,000, but devised a ‘glorified donation button’ Getting to profitability, however, after that Moore and Moah focused that popped up and said, ‘Hey, if you doesn't solve all of your problems. on monetizing their products, and love us, pay for a subscription.’ The For starters, Moore admits that Boomerang in particular. ‘We button was effective, encouraging when you monetize users, you can converted to a freemium model that one percent of its users to pay. So lose a ‘decent chunk of heavy ones summer,’ he said in an interview Moore realized if he could do that, who are engaged with the product,’ with Inc., because ‘we wanted to he could get more people to and if you're trying to get that user give people the ability to pay.’ subscribe. number higher, going the paid route By not going the venture capital Soon Boomerang's model was will impact your growth rate. And route, Moore had the flexibility to structured so that users could setting up the necessary customer make decisions that were good for schedule up to 10 messages a month support resources is tedious. ‘You're his business, such as trying the free of charge. When they sent the not focused on making your product freemium model. ‘When you raise 11th message, Baydin prompted value higher; you're focused on the VC money, the expectation is users to pay, and if they didn't, ‘we turning some of that value into that you will get very, very large, or continued to let them use the service money,’ he says. That said, when you will die, which is not exactly but with nag screens,’ Moore you have someone paying for your right for every business,’ he says. ‘A explains. ‘By the 18th message, we'd product, it will change your lot of VCs just don't [want to invest send you a limerick asking you to relationship with them, often for the in] email,’ he says, because others pay. We'd often get limericks back all better. ‘They're delightful when you have failed. ‘They just aren't the time with people saying, 'Sorry, have customer support issues,’ jokes interested in investing in the space.’ we're broke.'‘ Moore. ‘Some of the free users are Worse still, ‘most venture capitalists That ‘little bit of goofiness and definitely not as nice.’

82 ICE BusinessTimes August 2014 Time Out

CORPORATE wouldn't stand for ‘perverts’ (pedophiles?) working in her company. He showed me her copy JOKES of the memo, with her demand that I be fired, with the word ‘pedagogical’ circled in red. The In 1998 a business magazine ran a contest asking HR Manager was fairly reasonable, and once he looked for Dilbert-like quotes from people who had real-life the word up in his dictionary and Dilbert-like managers. Here are some of the winners. made a copy of the definition to send to my boss, he told me not to worry. He would take care of it. 1. As of tomorrow, employees will (CIO of Dell Computers) Two days later a memo to the entire staff came out, directing only be able to access the 8. Quote from the boss: ‘Teamwork us that no words which could not building using individual is a lot of people doing what I be found in the local Sunday security cards. Pictures will be say.’ taken next Wednesday and (Marketing Executive, Citrix Corporation) newspaper could be used in employees will receive their company memos. A month later I 9. My sister passed away and her cards in two weeks. resigned. In accordance with (Microsoft Corporation - this one took first funeral was scheduled for company policy, I created my place) Monday. When I told my boss, he resignation letter by pasting said she died so that I would 2. What I need is a list of specific words together from the Sunday have to miss work on the busiest unknown problems we will paper. day of the year. He then asked if encounter. (Taco Bell Corporation) we could change her burial to (Lykes Lines Shipping) 13. This gem is the closing Friday. He said, ‘That would be paragraph of a nationally 3. How long is this Beta guy going better for me.’ to keep testing our stuff? (Shipping Executive, FTD Florists) circulated memo: ‘Lucent (Programming intern, Microsoft Technologies is endeavorily Development Team) 10. We know that communication is determined to promote constant a problem, but the company is attention on current procedures 4. E-mail is not to be used to pass not going to discuss it with the on information or data. It should of transacting business focusing employees. emphasis on innovative ways to be used only for company (AT&T Long Lines Division) business. better, if not supercede, the (Accounting Mgr., Electric Boat Company) 11. We recently received a memo expectations of quality!’ from senior management saying, (Lucent Technologies - formerly a division 5. This project is so important that ‘This is to inform you that a of AT&T) we can't let things that are more memo will be issued today important interfere with it. regarding the subject mentioned (Advertising /Mktg. Mgr., UPS) above.’ 6. Doing it right is no excuse for not Drum Up Business (Microsoft Legal Affairs Division) meeting the schedule. No one Many years ago, a large will believe you solved this 12. As director of communications, I American shoe company sent problem in one day! We've been was asked to prepare a memo two sales representatives out to working on it for months. Now, reviewing our company's training different parts of the Australian go act busy for a few weeks, and programs and materials. In the outback to see if they could drum I'll let you know when it's time to body of the memo one of the up some business among the tell them. sentences mentioned the (R&D Supervisor, Minnesota Mining & ‘pedagogical approach’ used by Aborigines. Manufacturing/3M Corp.) one of the training manuals. The Sometime later, the company 7. My boss spent the entire day after I routed the memo to received telegrams from both weekend retyping a 25-page the executive committee, I was agents. proposal that only needed called into the HR director's The first said, ‘No business corrections. She claims the disk I office and was told that the here... natives don't wear shoes.’ gave her was damaged and she executive VP wanted me out of The second one said, ‘Great couldn't edit it. The disk I gave the building by lunch. When I opportunity here... natives don't her was write-protected. asked why, I was told that she wear shoes!’

August 2014 ICE BusinessTimes 83 Business Tips

DAVIDS SLAYING Is it possible to compete with Amazon? Julie Wainwright, former CEO of GOLIATHS IN Amazon-backed Pets.com, thinks it is. And she says her luxury-goods consignment service, The Real Real, is living proof that BUSINESS? there are segments of the e-commerce market where the online retail giant does Can a Small Business not want to be. The site raised $20 million Compete With Amazon? in Series C funding last month.

1. Avoid markets in luxury-goods consignment $125 million and are close to which Amazon will experience that people like her friend breakeven with about 230 would use. Moreover, this was not a employees, including 30 in the field. compete. market that would play to Amazon's We keep 30 percent of the price, and ‘Amazon will rule the economic strengths. the other 70 percent goes to the world,’ says Wainwright. ‘If you ‘We are different than a marketplace consigner. We run these sales for 72 want to buy anything, they will find like eBay, because we take hours. We have 2.4 million a way to sell it cheaper and better. possession of the goods, and we members, process more than 40,000 This made me realize that if I wanted screen out fakes,’ Wainwright says. luxury items per month, and have to start an e-commerce company, I ‘We have gemologists, art curators, shipped more than 450,000 luxury would need to get backing for and other experts on staff to inspect items to date.’ something that Amazon can't do.’ the articles to make sure they are in 4. Understand where 2. Give your customers compliance with our brand investors want to be. compelling value. standards. We have a sales team Wainwright had experience as a A friend of Wainwright's gave her an that researches the value of the brand manager at Clorox before idea for what that something would items and picks them up. And we Pets.com. This experience gives her be. ‘I have a girlfriend who spends take photographs of the items and a brand manager’s perspective on $10,000 to $20,000 a month on display them on The Real Real,’ retailing and venture investing. clothes,’ Wainwright says. ‘She said explains Wainwright. ‘I pay close attention to venture that she spends most of the money 3. Create a viable capital investor sentiment, which on previously owned designer business model. changes quickly,’ she says. ‘If a dresses from Chanel and Gucci. The What good is creating value for venture-backed company pulls its reason, she told me, is that I know customers if you can't make money? initial public offering from the the owner, it's a beautiful store, and Whereas Pets.com did not really market at the last minute, that I get amazing deals. She makes know its market and lost millions of means VCs will not want to invest in money through consignment.’ dollars, Wainwright is not making a company in that category. Wainwright did research and found that mistake with The Real Real. Conversely, if a VC-backed startup out that most consignment shops How does it break down for her new has a successful IPO, VCs will want were slightly sleazy and had lots of business? She notes: ‘We are to pour more money into startups inefficiencies that she thought she operating at an annual run rate of that compete with it.’ could eliminate by creating a

84 ICE BusinessTimes August 2014 Life Lessons

You can do it, 1. Necessity is the mother of invention People like to be in their comfort zone. TOO We tend to ignore problems until they become too painful to do so. That is why What entrepreneurs inventions seem so hard to come by. It is can learn from also the reason why insurance and saving plans are so hard to sell. People ‘The Pursuit of Happyness’ just prefer to ignore them at their own peril. How do we promote invention? You can start on a personal level by asking yourself the following questions: “Why BBased on true events, The Pursuit of is it this way? How can I make it better? Happyness (the incorrect spelling is explained What do I need? Who do I benefit” They in the film) follows Chris Gardner (Will Smith) are basic questions that we rarely ask as he struggles to achieve the American ourselves. dream. Chris has everything going against him. His wife (Thandie 2. Newton) left him and he's raising Don’t do a job that does not directly his 5-year-old son alone, without any real income. link reward to results Determined to provide for his In the movie, we see Will Smith juggle a son Christopher (Jaden Smith) stock broking job and a medical no matter what, Chris enters equipment sales job together. He worked an unpaid internship on the sales on the weekend and broking program at a brokerage firm on weekdays. If the performance of your in hopes of landing the one job has no strong direct link to paid position available at the payout, think of ways to the end of the training improve and get another program. second income stream. Jobs Sleeping in bathrooms, that pay you based on time homeless shelters, and as just taking away the most shabby hotels when he's valuable resource of got the money to afford a your life from room, Chris never gives you. Time is the up on the idea only limited he can land a resource in job and provide the world. his son with a You cannot better life. make time Will Chris be and worse able to grab still, you the brass have no ring? Will idea of his son be how much raised in an you have environment left. So of love? If you invest your watched the 20/20 time special on the real Gardner, wisely. you know exactly how this story turns out.

August 2014 ICE BusinessTimes 85 generalizing here but I think the standard of living. But once you 3. girls I know generally have less attain that, happiness is less You are who you determination than guys. They are definable because it varies from mix with just not that interested in achieving everyone. Varied experiences and There are studies which determined goals. So if you see one who will being in control of your life that your income is the approximate stick by you through thick and thin, generally bring experiences. See weighted average of all your make sure the glue is always Maslow hierarchy of needs if you friends( I can’t find the link now but strong. need to know basic stuff have to be I am sure it exists). Stick with the fulfilled first. For me, happiness right people and you will rise with means being in control of my life, the tide. Stick with the wrong group 7. having financial security and doing and you will go under. Will Smith Luck evens out in the long term hard and meaningful work. had a big break where he got into Sure. In the movie, Will seem to the exclusive box stand. There he always have bad luck everyday. But 9. got to know so many contacts that luck is statistically proven to be non Happiness is relative were much valuable than those that existent. Flip a coin many times and They say a happy man is one whom could be found on his cold calling you get even results. Work on your earns $100 more than his wife’s list. The fact that he came with a cold calling and you will get that X sister’s husband. Less comparison CEO of a large pension fund also numbers of meetings. As long as in of status with other people make help gained him creditability. The the short term you survive, there is you content. Or you could simply internet age has made it very easy nothing to blame on luck. downgrade your lifestyle. to network. Try the business networking portal LinkedIn now. 8. 10. Money != Happiness It is hard to climb out of 4. With an income more than 20K, poverty. Social mobility is One decision can make your life your happiness level does not dropping difficult or very good increase with further increases in In the Documentary 30 Days, they Some decisions, like Will’s decision to income. In this study, it is shown did an experiment where a couple invest in the medical scanner, can that everyone needs a decent worked on minimum wage for 30 make life more difficult than days. Not only did they have no necessary. His decision to jump into savings at the end of 30 days, they stock broking however made his life were in the red. It is not surprising much better. The point is not to avoid that people cannot climb out of making big decisions in fear of poverty. No one would be willing to making your life extremely bad, but hire anyone without a home to make sure that you always have a address. You basically drop out of lifeline. Dumping your savings in the system and no work=no something you do not understand is money= no home. It’s just a vicious hardly a smart decision. cycle. 5. Determination, Motivation and Ambition are the same things They make you take action. Action is the part separating thinker, dreamers from the successful. Set goals and work for them. If you are working, you should aim for your next promotion in the next X years. If you are doing sales, apply will’s mantra: “X calls=X meetings=X interested prospects= X closing=X money” Ask yourself: what is the X that you are aiming for? 6. You need a supportive partner I thought it really sucked to have his wife walk out on him. I am

86 ICE BusinessTimes August 2014 Tourism

YOUR PERSONAL MENAGERIES IBT’s guide to hiking and trekking, during Eid holidays

Though the great Himalayas lies just within 100 kilometers from Bangladesh, the hobby or passion for Mountaineering or Trekking didn’t grow up among the Bangladeshis at all. In fact, it took almost half a century for us to step into the summit of the Himalayas, after it was first conquered by Hilary-Tenjing in 1953. But thanks to our latest Everest-trio Muhit, Nishat and Wasfia, mountaineering and hiking is becoming increasingly popular among the new generation.

Keokradong (Photo: Sk. Yeahhia)

August 2014 ICE BusinessTimes 87 The great natural treasures were hidden for many, many years in Bandarban. Maybe for a lack of interest, or the insurgency caused the travelers to ignore the Chittagong Hill Tracts. But things are changing now, as the keen and brave fellows are penetrating deep inside those hills to see the unseen, the sublime and heavenly beauties are being unfolded. However, all those efforts are being taken by private teams or even by solo efforts. A geographic survey is yet to be conducted and proper steps for the betterment of tourist facilities are yet to be taken. We don’t even exactly know which one is our highest peak. Is it Keokradong, or Thajindong or anything else that we don’t generally know? Let’s explore some of the most amazing peaks of Bangladesh, which can be ideal for trekkers and adventure seekers, or even for those who loves to feed his mind the heavenly beauties of nature. Before that, a curiosity may arise in our mind, what is a mountain? We don’t have any peak with snow cap or ice on top, so all we got are Hills, no mountains? Basically, the peaks which got a height over 3000 feet (900 meters) are generally called Mountains. Yes we are blessed with a few of them in Bangladesh; Saka Haphong (Photo: Stock) Saka Saka Haphong from both Ruma and Thanchi of by the Bangladeshi military The highest peak of Bangladesh? Bandarban. You can meet wild proclaims the actual altitude to be Murong Tribes (the most savage 3172 feet, and it might be the 5th The peak is situated in the district of tribe of our country) who may be highest peak among all. The peak is Bandarban. Saka Haphong is also seen roasting a Cheetah for eating! situated in Ruma Thana in known by the names Mowdok Taung Bandarban. As the Hill Tracts is the and Tlang Moy (Taung and Tlang – Keokradong heaven for Bangladeshi trekkers, which in Tribal language means The one that started it all this route has become the first Peak). It is situated at the border of trekking experience for most new Bangladesh and Myanmar. Though Keokradong is the most popular trekkers. It can be said as the birth it is not officially the highest peak, peak of Bangladesh and has become place of outdoor activity in but some topological map and GPS one of the most popular tourist Bangladesh for most of the people in (Global Positioning System) based attractions as well. It is also counted Bangladesh. Although it is widely survey suggested it is the possible as the most popular trekking reported to be the last highest point highest peak of Bangladesh. ‘Saka destination of Bangladesh. in Bangladesh at 1230 metres, Haphong’ means ‘the peak of the Sometimes, officially it is claimed as recent data and GPS readings and East’ in Tripura’s tribal language. the highest peak of Bangladesh. Russian topographic mapping show This name was first published by Though the official height of the that its true height is less than Nature Adventure Club Bangladesh peak is 1230 meter or 4035 feet, but 1,000 meters. Garmin GPS recorded in 2007. Trails to this peak starts a stone put up on the top of the peak 974 meters (3196 feet) at this

88 ICE BusinessTimes August 2014 Hiking and Trekking location, a different team measured 986m. Trail for this peak starts from Ruma bazar, and it goes through mind blowing Boga Lake, the highest lake of Bangladesh. Kapital The forbidden Capital

Commonly known as the Kapital (Capital) is one of the unique and fascinating peak on the Keokradong range. This massive 3000 ft mountain top once used as a hide out place by separatist group from Mizoram. They declared this mountain top as their temporary Kapital (Photo: Stock) Kapital capital of free and independent Mizoram. Even now the locals calls Rangamati district, the trail starts to accept everything! (You won’t get this mountain top as Kapital. Its from Ruma bazaar, and you need to a toilet up in the hills, any height is measured to be 939 meters pass Keokradong and Passing Para, restaurants or hotels whatsoever) (3,016 feet). Trail starts from Ruma the most developed tribal village of Besides, a traveler or trekker must bazaar, and you need to pass through Bandarban. respect the local cultures. Keokradong during this trail. Environment is another big issue, Sippi Arsuang littering must be avoided. Tazing Dong Truly wild A well-equipped but light backpack is Second best? enough for your trek. A medical kit The peak is situated in the bag with all sorts of emergency This is claimed to be the highest Roangchhori Thana of Bandarban. medicines is a necessity. Dry foods like peak of Bangladesh (also known as The peak is known as Ramjhum in instant noodles and soup would be Bijoy). It has been claimed to be Tanchanga or Chakma tribal real handy. Asking tribals for help 1,280 metres. Its exact location is language. Also, it is called Sippi would save a lot of troubles. During unclear but neither Russian Arsuang by Boam Tribe. This is one trekking, a walking stick, or a trekking topographic mapping, nor Satellite of the newly discovered and a few pole, or a perfectly sized bamboo stick data show anything in the area trekkers of the Bangladesh has would make trekking handy. exceeding 1,000 meters. There are climbed to the top of the peak. In Winter is the best and safest season three peaks in the Tazing Dong area February, 2008 a trekking club of to trek, but in high altitude it will be known as LungpheTuang, Tajin Bangladesh named ‘Nature extremely cold (temperature may fall Dong and Chinchirmoy. The peaks Adventure Club’ climbed over it and down to single digit….7, 8). Rainy were all measured and Tazing Dong measured the peak. They claimed season is not ideal for adventurers was found to be 871m (2,856 feet), the height was to be 923 meters, as the trails become dangerously it doesn’t even fall in a Mountain 3028 feet. The trail starts from slippery, and flash floods or class. It stands almost 12.5 km far Roangchhori. This peak is covered landslides are common. However, from Thanchi Bazar of Bandarban mostly with thick and dense you can use mountaineering boots from where the Trail starts. bamboo, and if you are lucky for trekking but it won’t be much of enough, you can meet a wild bear a help in Chittagong Hill Tracts. Tinmatha Pillar face to face during this trek. Plastic sandals are perfect for Where three nations collide trekking in Jhiripath trails (water How to equip streams), you’ll find them easily at Tinmatha, also known as Tinmukh Ruma bazaar, Thanchi bazaar and or Border Taung (among locals, yourself they are surprisingly cheap. Most Tripura Tribe) is a peak with a As a beginner in the trekking art, importantly, don’t panic if you are border pillar on top, which marks one must start from Keokradong. attacked by tiny brown leeches the meeting point of the borders of This trail is much easier, and it will during trekking. If you don’t donate Bangladesh, Myanmar and India. boost the confidence in you. some blood for them, you are not a This is an amazing place with a However, most adventurous trails trekker at all. If you have time for height of 935 meters (3060 feet). requires physical stamina, walking trek, please go ahead and explore Though this peak is situated in capacity and of course, a fresh mind the beauties of our motherland.

August 2014 ICE BusinessTimes 89 Online Networking IS MINECRAFT THE FUTURE OF SOCIAL NETWORKING?

As Facebook turns 10 and Twitter that ‘they hadn't found a game; The future of social climbs to 241 million users world- they found a playground for all they networking might wide, the billion dollar question could imagine.’ In their book they remains: What is the social network theorise that maybe Minecraft isn’t look more like Aof the future? Some analysts claim a game at all; perhaps it is in fact a it will revolve around images, a la social network, or maybe what multiplayer building SnapChat or Pinterest. Others social networks will become, some- blocks than predict that it will be a private thing else altogether. network, akin to Nextt. However, I'm While there isn't one clear defini- character limits and convinced I have a front row seat to tion, there surely is no comparison. the future of social networking. True, the graphics aren't anything check-ins As authors Daniel Goldberg and to write home about, but that Linus Larsson explain in their book, doesn't stop millions obsessively Minecraft, some of the first testers playing. Here are three social of Markus Persson's creation felt things Minecraft does really well.

90 ICE BusinessTimes August 2014 Future of Social Networking? 91 s e 2. m i articles. T s s expert Alan together. As together. ne i them to write us recent issue of recent more engaging.’ more B Collaboration Minecraft for the E than 3,000 helpful than 3,000 and outside of the Take a spin over to Take active contributors C Wiki, an info-heavy game. For example, game. For platform for making classroom, enabling classroom, I place where anyone place where Scientific American, but it is an excellent assignments, create assignments, create the world. The ‘mod’ intense collaboration game-based learning ‘not only is Minecraft Outside of the school plenty of examples of Gershenfeld says in a MinecraftEdu to learn boundaries, and guide manage the Minecraft environment, there are are there environment, can contribute to more can contribute to more used in schools around used in schools around how Minecraft is being among the fans--inside 4 allow teachers to adapt their students to create their students to create immersive and creative, immersive and creative, almost any subject area almost any subject area 1 0 and Learning Potential August 2 There are millions of disparate communities connecting millions of disparate communities are There on today's top social networks. The Minecraft whole. on the other hand, feels more community, Minecon, Minecraft maker Mojang's annual convention, the kicked off with much success in 2010. Last year, selling on their blog that they were company shared tickets for the gathering in advance (7,500 quickly sold out), explaining that it was the only way they wouldn't have to turn away tens of thousands of fans at the door. community is so vast that there The Minecraft YouTube is now a new gathering (not affiliated with Mojang) City in 2014; Mineorama is a taking place in New York Convention. fan-based Minecraft YouTuber collaboration, and community solid creation, Aside from deserves for showing a lot of credit Persson at its core, us that the next big thing in social must be didn't set out with this game-based. While he probably Minecrafter and you goal in mind, watch a five-year-old unfold, one too will see our social networking future building block at a time. Social networks as we know them today are entirely entirely today are as we know them Social networks the and you have Facebook in to Log one-dimensional. an on posts or add a post, comment option to create than 1 that more While it's impressive image or video. log in everybillion people a place to get month, it's not to 140 characters, helps simplicity, Twitter's creative. today's maker however, hit; make it a real-time to find it boring. generation is bound hand, is all about Minecraft, on the other sharing, sharing and crafting. building--crafting and include top block-based creations Some of the game's of the Rings), (The Lord Tirith the Space Shuttle, Minas creative While such extreme and the Winter Palace. enough Edition is simple Pocket possibilities exist, the can join the fun. children that even pre-school 1. 3. Building Cohesive simplicity Community maintaining Creativity while Creativity Tech

MAKING AMENDS Why The Desires Of Gamers Are Driving Xbox One's New Direction

By Saad Mahmud

More than ever, as a way to bring corporate vice president, devices and According to official numbers, the order to its house, Xbox is facing a studios at Microsoft. ‘Within that, $499 Xbox One is being outsold by crowd-sourced future. The Xbox E3 we feel really good about what we've the cheaper PS4, with 5 million 2014 Media Briefing was 90 minutes done.’ units sold worldwide versus 7 of games. From Microsoft's own Recent business moves were only million PS4s. So for E3 2014 the huge franchises such as Halo and mentioned briefly at the conference. company focused on its publishing Forza, to partner's mega titles like A month before, on May 13, MS partners and the indie developers it Assassin's Creed and Call of Duty, to announced that it would decouple was working with. Xbox would indie darlings such as Threes and the Kinect camera from the Xbox thrive on giving fans more games. Ori. There were no execs talking One, lowering the cost of the console This was the ammunition it needed about sales numbers, app partners, to $399--the same price as Sony's to catch up to Sony. and other business details. During PlayStation 4. And in March there ‘Our focus has been on our fans, gaming's most attention-grabbing was a restructuring at Microsoft and the Xbox 360 fans in particular. days of the entire year, Microsoft Phil Spencer, the head of Xbox's There are 80 million of them that was all about games. game studios, would now be the have yet to upgrade to an Xbox ‘We have a value proposition that head of the entire Xbox Division. It One,’ says Mehdi. ‘When we show this is the only place to play all of was as if these big announcements them the Halo: Master Chief the big games you want to play: Call were made early to get them out of Collection, and we went on sale this of Duty, Destiny, Watch Dogs, the way so that the press conference week for $399, I think those are Battlefield, Halo, Forza, Sunset could focus on the games. things that get people to say that Overdrive,’ says Yusuf Mehdi, Xbox needed a course correction. it's time to jump.’

92 ICE BusinessTimes August 2014 XBOX One

Xbox One: Now goals that earn gamer points and let take one example: Frito-Lays saw a Since the restructuring in March, you compare your gaming ability to 12% sales increase when it Microsoft has had tunnel vision your friend. For the first time, the conducted a contest last year to about giving people what they want, app will be connected to the introduce potato chips with flavors and not just with games. For Xbox Internet, allowing you to click decided by fans. Then again, 360, they would update the console through for advice or even Kickstarter is littered with projects once or twice a year. The Xbox One walkthrough videos on how to get that failed to find the crowd-support gets monthly updates that tweak UI, an achievement. they were looking for, from films to add features, or launch new By the end of the year, Microsoft will video games. entertainment apps. Just like the release another such connected app: There is something to be said about company's strategy for the console, Twitter for TV. Users will see what giving the public innovations that the box itself would continuously topics are trending on Twitter in they need, rather than what they evolve. regards to television, including want. Steve Jobs is likely rolling over ‘We look at it through the lens of tweets about the show you are in his grave because of the tactics listening to our customers and watching. There will be a list of the employed by Xbox and others. And seeing what they are asking for and television programs being discussed Henry Ford is believed to have said: the features they most want to see, the most and then you may click ‘If I had asked people what they and responding as fast as our through to watch them. Such wanted, they would have said faster engineering team can build it,’ says cross-functionality between tech horses.’ David Dennis, director of program and entertainment fits the original, Can Xbox thrive on a hybrid management at Xbox. ‘That's the futurist vision of the Xbox One. strategy? Giving gamers the games beauty of a connected device like Now the company is creating they want for the Xbox One, while this. We can continually adapt it, platform to try to ensure continued still adding entertainment and tech tweak it, and update it to be the engagement. Earlier this month they partners to build the futurist product that our customers want it launched a new site, experience they originally intended? to be.’ feedback.xbox.com, where fans With plans to expand Xbox One to In March, the company added the could submit their own ideas on 29 new markets including China by ability for players to broadcast their what should be updated on the September, Microsoft will have a gameplay online through Twitch. console. Fans can also vote on the greater stage to demonstrate the Coming next month will be improved submissions of others. But do such effectiveness of its evolving tracking of game achievements, fan-driven companies succeed? To strategy.

August 2014 ICE BusinessTimes 93 Gadget Macbook Air 2014REVIEW The 13-inch MacBook Air 2014 has had a minor spec boost and a price cut

By Saad Mahmud

Apple seems to be changing its ways, and aiming its products at more price-conscious punters. Not only has it launched its cheapest ever iMac, it’s also slashed a ton off the 2014 MacBook Air. So this year’s model can be yours for just Tk. 89,900. It’s identical to last year’s model, except it packs a 1.4GHz dual-core Intel Core i5 chip. That’s up from the 1.3GHz dual-core i5 in the 2013 Air. So not exactly a massive leap. And the price cut is most welcome. But is it enough to stave off rivals like the Microsoft Surface 2, Toshiba KiraBook, and new Samsung Galaxy Tab S? Let’s take a look.

94 ICE BusinessTimes August 2014 Macbook Air

Size and Build Aesthetically, this year’s MacBook Air is exactly the same as last year’s. Not that we’re complaining – the MacBook Air is one of the most gorgeous gadgets we’ve ever laid eyes on, with its brushed aluminium body and fantastically bright screen. (There are rumours of a Retina display model, which would really make our day.) The new model has the same 325x227x17mm frame as the MacBook Air 2013 model. (We tested the 13-inch version, which starts at £849, but you can also buy the 11-incher.) The edges taper so it’s just 3mm at its slimmest point. And it weighs the same 1,350g, which is light enough to not really notice it in a bag. Very impressive indeed. Features Again, it has the same features as the 2013 model. Mac OS X Mavericks comes as standard (though OS X Yosemite will be out in the autumn). On the ports side of things, you get two USB 3, a Thunderbolt, the MagSafe 2 (for the magnetic charger) and an SDXC card slot. Wi-Fi and Bluetooth 4.0 come as standard, and the keyboard is the same winner as before, with plenty of space (pardon the pun), and backlit keys. Screen The 13.3-incher packs 1,440x900 pixels, giving it a pixel per inch heavy usage. Apple quotes 12 hours, count of 128ppi. If you want an even Performance which sounds accurate. If you’re out more portable option, the The spec bump is only a measly and about all day, the MacBook Air 11.6-incher has 1,366x768 pixels, 0.1GHz, so you won’t tell much with 135ppi. It might not be a Retina difference between this and last should last you. model – not yet, anyway – but year’s model. Again, that’s no bad colours are accurate, it has wide thing. All the games we tried ran Verdict without any issues, and it handles viewing angles, and it’s more than We tried our best to find something basic tasks like web browsing and bright enough. However, things have to dislike about the new MacBook video streaming with aplomb. moved on since, and it seems the Air, but really, it’s hard to find MacBook Air has been left behind Start-up is fantastically quick too, faults. The screen is still a stunner, somewhat. The Toshiba KiraBook thanks to the solid state drive. it’s still the most premium-looking boasts a QHD display, with a laptop around, and now it’s cheaper resolution of 2,560x1440 pixels, Battery and a bit more powerful. The best giving it 221ppi. So while the The slightly upgraded processor just got better. It is available in all MacBook Air’s screen might be good, didn’t make any difference to the there are better – if more expensive battery life either. We got a full day Apple outlets and vendors who sell options – available. out of it, and that was with fairly Apple products.

August 2014 ICE BusinessTimes 95 Word of Mouth

RFL Plastics receives highest VAT Payer award RFL Plastics Ltd, a sister concern of PRAN-RFL Group, received the highest VAT payer’s award for 2012-2013 fiscal year for paying highest VAT in the category of service sector at national level. Commerce Minister Tofail Ahmed MP handed over the crest as chief guest to Choudhury Atiur Rasul, Director (Accounts) of PRAN-RFL Group at RAOWA convention center on July 10. Highest VAT payer’s award have been given to 113 individual and organization in three categories i.e Production, Service and Business sector at national and district level. Farid Uddin member of NBR chaired the award giving ceremony while DR. Mashiur Rahman, Economic Perfume World now at Affairs Adviser of Prime Minister, M. A. Mannan Jamuna Future Park State Minister of Finance and Planning were present Bangla Perfumes Distributors Ltd. has informally launched its as special guest. 10th outlet ‘Perfume World’ at ground floor of Jamuna Future Park with an area of 1287 square feet. Media personality Sharmin Lucky, Beautician Kaniz Almas Khan and Munni, Singer Elita, Chairman, Md. Faridul Hassan Chowdhury, CEO, Khondoker Nazrul Islam, Director, Reshad H. Khan, Executive Director, Md Zakir Hossain, Assistant Manager, Operations, Nurun Nobi Nobin of Bangla Perfumes Distributors Ltd. were present in the ceremony. Bangla Perfumes is distributing 32 world famous branded fragrances in Bangladesh and these brands are exclusively available in all Bangla Perfumes’ own perfumery retails PERFUME WORLD. On inauguration there shall be special gift with per purchase until the day before Eid-Ul-Fitr.

31st Anniversary of United generation banks in the country. With a vast network of branches, the bank has already made a distinct mark in Commercial Bank Limited the realm of private sector banking through personalized service, innovative practices, dynamic approach and United Commercial bank Limited (UCB) has stepped into efficient management. its 31st Anniversary on June 29, 2014. Incepted in 1983, A cake was cut in a festive mood at the head office of UCB UCB is one of the progressive and leading private to celebrate the event. Honorable Chairman of UCB M. A. commercial banks of Bangladesh with a strong network Hashem; Vice-Chairman Sharif Zahir; Chairman, of 139 branches all over the country. With a firm Executive Committee Anisuzzaman Chowdhury; commitment of the economic and social development of Chairman, Audit Committee Lt. Gen. (Retd.) Abu Tayeb Bangladesh, UCB started its journey and has since been Muhammad Zahirul Alam, rcds, psc, along with other able to establish itself as one of the largest first senior officials were also present at the event.

96 ICE BusinessTimes August 2014