The 'Age of Asia': Part 2 - Doing Business

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Part 2 (Part 1 of this post was made on 10/23/19 please read that post first).

Asia is relevant for all U.S. businesses, large and small. The question is: how to take advantage of this expanding and exciting market.

Businesses need to reassess their Asian operating/marketing model - and it is not all about China. Companies need to understand the differences within the entire Asian geographic area and each of the four regions, as discussed in Part 1, need to be treated differently.

Obviously, Asia is fraught with political risks and territorial conflicts and each country has differing business rules and laws that must be dealt with. But, despite short-term issues regarding trade tensions and China's decelerating growth, the Asian business prospects are very extremely favorable.

Environmental issues remain a problem which need addressing but all other determinants, such as, trade flows, capital, people, transport, and infrastructure are favorable in all 'four Asias'. Asia is not only growing in scale but is also integrating at a very rapid rate - U.S. companies must take advantage of this integration or be left on the sidelines.

There is no single Asia. The countries are highly diverse and each deserves special treatment. The four distinct economic regions differ in terms of scope and economic development thus requiring different market strategies. Any firm contemplating business in Asia needs to unlock the opportunities arising from the 'four Asias' but must take into consideration the nuances of each - doing so, will provide for long-term sales and profits.


Jim Lavorato, Founder/CEO
Fund-House Ventures & 4M Performance
James@4MPerformance.com

The 'Age of Asia' : Part 1 - What You Need To Know

The Asian century has begun. Collectively, the economies of Asia currently account for more than 50% of global GDP and 40% of worldwide consumption. Asia will shape the way globalization emerges over the next decades and have profound impact on the rest of the world. This is Part 1 of a two part series on the 'Age of Asia'.

Jakarta, Indonesia

This is Part 1 of a 2 Part post. McKinsey & Co. is the source for the basis of these posts. 

Asia can be segmented into four distinct business regions:

1. Advanced Asia : Australia, Japan, New Zealand, Singapore, S. Korea
2. China
3. Emerging Asia : Bhutan, Brunei, Cambodia, Indonesia, Laos, Malaysia, Mongolia, Myanmar, Nepal, Philippines, Thailand, and Vietnam
4. Frontier Asia and India : the 'seven stans' (Afghani, Kazakh, Kyrgyz, Paki, Tajiki, Turkmini, and Uzbeki) Bangladesh, Fiji, Maldives, Sri Lanka, and India

The regions are very diverse. For example, Advanced Asia has a per-cap GDP of $30-60,000, is highly urbanized, and has domestic markets that exhibit high-end consumer consumption. In contrast, Emerging Asia provides labor and has steady growth while being highly culturally diverse. Frontier Asia, conversely, has the least integration with the rest of Asia, but represent great new markets as they do integrate with their Asian neighbors.

Rising internal consumption and developed supply-chains are driving the Asia-to-Asia growth. Advanced Asia and China are investing in Emerging Asia. Frontier Asia and India have huge potential but they are hampered by a lack of modern infrastructure and heavy bureaucratic regulations; however, they have a large, young population and plenty of capital for investment. 

There are a number of Asian mega-cities that are competing to become innovation centers, equivalent to Silicon Valley.  Beijing, Shenzhen, and Wuhan in China, Jakarta in Indonesia, Yangoni in Myanmar, and Hyderabad in India are examples.    

Tourism between the Asian countries is booming and in contrast to the past, where Western culture had significant impact culture now flows in both directions, particularly from Japan to the West.

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In Part 2 of  'Age of Asia' we'll discuss how western businesses cope and prosper in dealing with this expanding Asian juggernaut.

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The 10-4-1 Social Media Rule

Posting once a week to your company blog? Don't. A once a week post will not generate enough traffic to your website and not enhance your social media engagement one bit. To get any social media traction you need to post at least 3x per week.

The 10-4-1 Rule is a tried and true way of posting to get the most audience conversions. If you post 15x per week the posts should be broken-down as follows:

• 10 posts should be sharing 'other people's content' to your followers. Principally information gleaned from experts in the industry or others, such as authors and influencers.
•  4 posts should be sharing 'your content that's not directly sales related'. Posts on how to save money, do something better, how-to videos and podcasts. If that content is valuable, your members/followers will share the information with others and over time you will become the expert or influencer.
• 1 post should be a direct sale pitch. A CTA for a special deal, check this out, ends today, sign on, etc.
• Post to Tweeter, Facebook, LinkedIn, Instagram and Google
• 
  

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In addition, every business must:

1. Have a social media marketing strategy
2. Setup engaging social media profiles
3. Build a rock-solid following
4. Learn how to use each platform for maximum impact

Jim Lavorato, Principal

Fund-House Ventures, LLC and 4M Performance

jlavorato@fundhouse.us

Business Burnout : It's REAL

Burnout is a real issue!

Burnout: It is more common than thought

In a recent Gallup survey, 25% of all U.S. workers felt burnout at work MOST of the time, while 45% reported similar feelings, through less frequently.

And, it's not only in the U.S., similar studies in Europe and Asia conclude that working long hours coupled with increasing levels of stress had a significant role to play in the creation of the 'burnout culture.'

What is burnout?

The pressure of your work and the physical and mental affects of that pressure. Burnout is also related to specific personality types. High achievers are particularly at risk. Often, given their "I can do everything" personalities - these high impact types don't see the burnout coming.

Burnout is a state of chronic stress. It shows itself with physical signs such as complete exhaustion, feeling ill, an inability of sleep, extreme anger, anxiety, and depression. The ultimate solution for many suffering burnout is leaving their job. For others, it leads to complete exhaustion, a sense of failure and being unable to find the strength to do anything about it.

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Can Burnout Be Cured

Less confrontational workplaces, less comparing of self with others, and re-engaging with people seems to work. Talking to loved ones, colleagues, friends helps and of course recognizing that your burnout exists and you have it.

There is no easy answer. As long as there are high achievers there will always be burnout. It doesn't make a difference if you are a Baby Boomer, Gen X, Millennial, or Gen Z'er the stress and pressure of life and work will take its toil. Some ways of eliminating burnout:

• Control access to your social media
• Say NO to taking on more responsibility and learn to set boundaries
• Document what is causing your stress
• Spend more time with friends, not colleagues
• Take a vacation and mini breaks throughout the year
• Nourish your creative side 

Jim Lavorato, Principal

Fund-House Ventures & 4M Performance

7 Steps to Classical Problem Solving

To be successful in solving any problem a classical seven step approach is required. Those seven steps are defined below:

#1 Define the problem. What is it that needs 'fixing'. Many times this is unclear and needs to be pinpointed.

#2 Disaggregate the problem. Take the problem apart and attack it in pieces. In business you have the profit tree. Revenue = Price + Quantity. Cost = Cost X Quantity. Both need to be broken down and studied.

#3 Prioritize. How important is each component in the disaggregate process and do I have the power to change it. What do I analyze?

#4 Breakdown what has been prioritized. Define a work plan to accomplish tasks and define and fix biases.  Develop a work plan that reflects the level of precision required, the time frame you have, and the stakeholders you need to bring into the process.

Problem solving is not a linear process, it is iterative. Most problems can be solved in a day or even a few hours. If you see a 50 page work plan that goes out six months you know it's wrong! It will be outmoded very quickly by the learning process of the seven steps. This is why diversity in the problem solving team is so important.

#5 The work plan is done. Now you've got to do the analysis. Look at statistics before analyzing and understand the scope and shape of the problem before applying complex analytical approaches and models. Test-and-learn is the methodology to be used.

#6 & 7  Once analyzed the decision maker needs to have the question, "What should I do?" Answered. This is where the people tasked with implementing the problem's solution get motivated to action; otherwise, you haven't solved anything. The bias must be to action or you will end up where you started.

The seven step process allows for biases to be avoided. I am talking about cognitive biases not personal ones, like gender, race, etc. I am talking about biases we carry with us, such as overoptimism, anchoring, and availability (you think you have seen this problem before and therefore have the answer to it). Also the sunflower bias - bias based upon hierarchy.

Jim Lavorato, Principal
Fund House Ventures & 4M Performance