New tack for Saudi, leaving dependence on oil

Rizal Philippines

From NY times


KSA through its crown prince Mohamad Bin Salman will launch its Vision of 2030 in an effort to lessen KSA dependence on oil revenues.   Times have been challenging for the kingdom when oil revenues are hovering at the $30 price, down from its high of $100.00 in 2014.   Flush with oil revenues at the height of the price, KSA is now suffering and has borrowed money to shore up its liquidity.

One plan involves selling 5% of the shares of Saudi Aramco, one of the largest State owned Petrol company (the company is worth trillion) The idea is to set up fund to fuel the investments.  One of the plans is make KSA a financial capital.   KSA produces roughly 10% or about 10 million barrels of oil a day. and owns one of the biggest oil reserve in the world

Many doubt if the plan would work because of absence of entrepreneurial talents in KSA.  Many citizens would prefer to be given state welfare, prefer not to work, and let expatriates do the job.  All because of dependence on oil.

I have always commented that we are better in the Phil, because we source of fresh water, aquatic resource, forest and food supply.  KSA has nothing.  If it loses its oil (which can be in this lifetime) or difficulties with the market, then pity KSA

What do you suggest for KSA?

More bankruptcies for the oil industry

Many analyst foresee many bankruptcies happening in the oil industry as well for the banks and suppliers.  There could be hundreds of them and they are publicly listed with oil prices hovering at $30.00 per barrel.  The fire in Canada seemed to augur well for oil industry because the prices edged a bit.  Now the danger of fire is over.

Medical Entrepreneurship

Rizal Philippines
April 24, 2016

From HBR - Medical Entrepreneurship a New Movement to Accelerate Cures

Doctorpreneurs


I was tasked with making a presentation on Medical Entrepreneurship by Dr Efren Laxamana and I prepared a PPT for the said topic. Unfortunately, the event for the presentation never came.  I like the topic that is why I prepared the slide.

The recent conference for GSB I was told that the output of MBAH focused on research on medical science innovation.  I had students before Dr. Catan who had numerous invention on prosthesis and orthopedic devices, and a surgeon now at ASMPH who had numerous inventions for surgical equipment.  Truly there were numerous outstanding work by doctors in their field, outside of the MBA but within the scope of their practice as professions.

There is a recent article in HBR on the said subject matter.  The article decried Kaizen, baby steps innovation in the medical practice. It called for quantum type of innovation, and breakthroughs, lke cure for Alzheimer, or cancer, or prostrate.  However, many researchers are hampered by focus on getting the funding and writing the research proposal rather than the research

How can we structure a class syllabus that will aim to develop such kind of doctors.?

How come Japan is into negative territory?

Rizal Philippines
April 24, 2016

Japan has again fallen intor recession

Japan has been into recession (contracting economy) for several years now.  The President IMF, LaGarde is worried not so much with less developing countries but with Japan. Japans public debt is 237% of its GDP, the highest among developed countries - WSJ  Although yen is now the darling of world currency, she was worried about too much debt of Japan, although mostly yen denominated (US has plenty of debt too - almost trillion dollars)

And its giants like Nissan, Toshiba, and Sharp have been taken over by foreign partners.  Of late, Mitsubishi is in trouble because of its alleged cheating on emission tests (like VW)  Because of the recent earthquake at Kyushu, giant car makers Toyota and Honda have ceased production because of disruption of supply chain.

From Japan Times - Sharp and Toshiba face dire prospects

The combination of  natural calamities, (earthquakes) aging population plus mistakes in fiscal and monetary policies have brought Japan into this challenges.  Let us add management complacency and smugness.  The Japan tiger of yore has become slow, and probably unmindful of world developments which included China.  The Japanese management and technological prowess on Kaizen, QFD, Gemba, TPM 5s was overcome by cheap and mass produced products from China. Everybody was caught unprepared.

Some say that loss of entrepreneurship fueled by conservative Japanese banks who favored large and and ongoing concerns, contributed to loss of innovation and change in Japan.  The likes of Akio Morita of Sony and Konosuke Matsushita who were for sound management and innovation was gone.