Aloysius Chan's Blog

Strategic leader Anticipate changes in the market environment. Challenge assumptions and the status quo. Interpret a wide array of data and viewpoints. Decide what to do after examining their options. Align the interests and incentives of stakeholders. Learn from success and failure by experiments. Tuning in to customer's signal Put yourself in your customer's shoe. Make customer's order as your own. Grow together with your customers. Action plan to see sooner Go through all the pass over threats and opportunities. Bring yourself to your customers, suppliers and other partners to solve their problems. Run a war-game to understand your competitors, legislators and other key stakeholders. Study emerging rivals, especially those who innovates. Envision future technology will redefine your market. Scan wider Identify the weak signals at the edge of your current business model. Play different realistic future scenarios. Identify and learn from other start-ups beyond your industr...

  Integrated cascades of choices What is our winning aspiration? The purpose of the enterprise. Our guiding aspirations. Where will we play? The right playing field. Where we will compete Geographies Product categories Consumer segments Channels Vertical stages of production How will we win? Unique right to win. Value proposition. Competitive advantage. Low cost. Systemic understanding of costs/cost drivers. Relentless reduction of costs. Sacrifice of nonconforming customers. Commitment to standardisation. Differentiation. Deep and holistic understanding of customers. Intensive brand building. Jealous guarding of customers. Commitment to innovation. What capabilities must be in place? Capabilities required to win. Reinforcing activities. Specific configuration. What management systems are required? Support systems. Systems, structures, and measures required to support our choices. Good strategy examples P&G Grow in core businesses and focus on core consumer segment. Extend lead...

 Quant meltdown 2007, AQR Capital Management, Goldman Sachs Global Equity Opportunities Fund and Medallion loses a significant amount of investments. Metastability is the reason for the quant meltdown. Wisdom of crowd effect If people are unbiased in their estimates and if they make different mistakes that tend to cancel out. Bernie Madoff effect He cheated 10 of billions of dollars. It was a ponzi but covered by blue chip investment of 10-20% p.a.

Introduction Oikonomia Greek word: to manage your household. Mercantilism Maximise the exports and minimise the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. Zero sum game Classical economics Free market and free trade increase efficiency and prosperity. Adam Smith: competition produce cheaper goods. Marxism The effect of capitalism on labor, productivity, and economic development and argues for a worker revolution to overturn capitalism in favour of communism. Keynesian The government should increase demand to boost growth. Neo-Keynesian Economic growth and stability rather than full employment. Monetarism  The total amount of money in an economy is the primary determinant of economic growth. Mixed economic Combines aspects of both capitalism and socialism. Behavioural, environmental, happiness, development. Markets Supply and demand Primary driver in the market and why house become so expensive. The invis...

Introduction Good business model = good business plan + experience + intelligence + hard work Business models: creation of profitable revenue and the delivery required to keep the revenue flowing. Business plan Presupposes the existence of a strong business. Clarity of purpose and passion. Explain why the business model work, not how. Cost leadership Access to natural resources Scale Vertical integration Technological leverage Proprietary processes Differentiation Superior branding (Rolex) Unique supplier relationships (Eddie Bauer Edition Ford Explorer) First mover advantage (iPad) Location ("location, location, location) Scale (Boeing) Intellectual property (Intel) Market niche Tesla on electric vehicles (EVs) Taiwan semiconductor on fabrication Amgen on biopharmaceuticals Starbucks on coffee Amazon on books Rally on hamburger Doctor on heart surgery Business models Common aspects What problem are you trying to solve? Who needs this problem solved? What market segment is the mod...

  Introduction Refocusing and rebranding may helps to raise more funds. Before you start, get to know Why are you funding this business? Convenience Need, requirement or legal reasons Specialist products or services that are hard to find Fear Luxury What are you skills and knowledge? How much funds do you need? Viability Market research Customers or clients Product or service Price Promotion Partners Competitors Crunch the numbers Cash flow forecasts Breakeven analysis Profit and loss statement and projections Balance sheets and projections Funding need and uses Financial rewards for funders Raise the money Debt Loan Overdraft Asset finance Invoice finance Commercial mortgage Trade finance Peer-to-peer lending Equity Alternative finance Economy of scale Marketing Technical Resources and skills Administrative or associated infrastructure Purchasing Financial Types of fundings Seed finance Pre-trading Pre-revenue Pre-profit Fund usage Research and development (R&D) Product testin...

Leaving the Herd It's not the "road most traveled or less traveled." It's the road you create for yourself. Leadership doesn't start at the top; it starts in the middle. Team building can't work because you have committees, not teams. Commitment is fine, but compliance is often what's needed. The more you pursue a "paperless" office, the most paper you'll get. If you think you should conform to your colleagues, you'll never stand out in a crowd. You'll simply be one of the herd. People pay those they respect, but they have lower expectations for the quality of advice from pals. Personal questions Do I have financial goals appropriate for my talent or am I using other's metrics or even my parents' beliefs (which are often based in a poverty or scarcity mentality)? Am I settling or selecting in my personal relationships? Do I have a healthy selfishness about my time and energy or do I constantly sacrifice for others out of guilt...

Introduction Resources are scarce Natural resources Human resources Manufactured resources Scarcity forces us to choose Economics is the study of how individuals and societies choose between the alternative use of scare resources to satisfy their innumerable wants. Opportunity cost is the highest-valued alternative that had to be sacrificed for the option that was chosen. Production possibilities curve: trade-offs. Law of increasing relative costs. Ceteris paribus assumption: other things constant Microeconomics is the study of individual decision-making by both individuals and firms. Macroeconomics is the study of economy-wide phenomena resulting from group decision-making in entire markets. As such, it deals with the economy as a whole. Positive economics indicates what is, whereas normative economics considers what ought to be. Economics systems No matter what the economic system, the fundamental economic problem of scarcity must be solved. Every economic system faces opportunity co...