Sometimes Work Does Get In The Way...

..... of blogging and bloghopping. :D

My apologies dear online buddies because save for a few, I really haven't had the chance to stop by your blogs lately. I've been swamped with quite a bit of work these past few weeks that except for the occasional blog entry, I haven't really been able to visit your respective sites.

I had tight deadlines to meet that in fact, my recent blog entries were drafted and developed while I was on train rides home. Thus, an entry that would normally take a few hours to develop and complete took quite a number of days to conclude. In addition, a case of writer's block didn't make writing any easier.

Since my mind was tied up with work-related stuff, I decided to skip on the bloghopping for some time just to get a number of things off my desk. In addition, I didn't want to post half-ass comments (please pardon the expression) on your blogs knowing that I simply breezed through something that you took the time and effort to write and post.

Take care of yourselves, dear folks. My load at work is starting to lighten at this point. Thus, I should be able to visit your sites soon. I look forward to again reading the stories you wish to tell. I wish everyone well.

Playing Things Safe at San Miguel

I was reading the Business Section of yesterday's issue (October 29) of the Inquirer when I was struck by an event that was reported in this article. The article reported on the UK-based investment firm Ashmore Group's move to increase its control over Petron. I have no problem with foreigners increasing their level of investment in Filipino companies as long as the investment would lead to the creation of more jobs and better incomes for our countrymen.

However, I was not too happy to find in the same article that San Miguel Corporation, that long-time food and beverage conglomerate, has plans to buy into Petron too. In fact, reading further, I found that San Miguel was seeking more than 50% control of Petron, this planned move was announced right after acquiring a 27% stake in Meralco last Monday.

I am no strategic genius or business whiz but San Miguel's foray into power distribution and its planned entry into the oil refining business should not impress any serious student of Philippine business. This company has been able to lord it over the Philippines for many decades due to its sheer size and lack of true competition. Given its reputation and the resources at its disposal, I expect a lot more from a multi-billion dollar corporation who has been around since 1890. But aside from the Philippines, its premier product, San Miguel Beer, still does not have a significant presence in any foreign market save for Hongkong.

I love San Miguel's beer and I strongly believe that the product has the potential to compete with the world's best. But San Miguel's management hasn't done a very good job of introducing and marketing its premier product into different foreign markets. It seems content playing a conservative game of marketing San Miguel Beer only in places marked by a large Filipino presence. Instead of trying to compete in the global market against foreign brands, San Miguel's management seems content to just play it safe within its home grounds.

In my humble opinion, this is the problem when a company the size of San Miguel has never operated in an environment where it had to seriously compete to either maintain or expand its share of the market. Although the security afforded by a protected business environment may seem reassuring to a company's investors, the lack or absence of challenges or fights from a serious competitor never truly forced San Miguel to seek greater efficiency in resource allocation to lower its costs and boost its market share. It never had to mount a serious counterthrust to any competitor's moves. In short, it has a management that by international standards has never been truly battle-tested.

Instead of growing the company's revenues organically by expanding the market share of its products locally or by expanding into foreign markets either through strategic acquisitions or strategic alliances, San Miguel's management decided to pursue the path of least resistance by growing the company through investments into other industries WITHIN the Philippines even if these companies are in businesses outside of San Miguel's core competency. Even its selection of industries to invest in (power distribution and oil refining) are "safe" industries in the Philippine context. Both are practically cash cows and both are environments with limited or no competition.

In a previous job many years ago, I had the chance to be part of teams that analyzed parts of San Miguel's operations in a couple of its divisions. Typical of problems in a virtual monopoly, we found bloated bureaucracies, operational inefficiencies, waste, and even corruption. Due to the absence of competitive market pressures, we sensed no urgency on the part of both management and employees to fix their problems. I don't mean to paint a broad brush but a culture of complacency certainly prevailed. The place ran like a government office. I have no reason to believe that such mediocrities and problems have gone away because the environment San Miguel operates in remains virtually unchanged.

San Miguel is a company that can do more and achieve more. A lot of foreigners I know who have tasted its beer love it. Aside from beer, it has a wide array of products that are of high quality that competing in foreign markets and gaining the acceptance of foreign customers should not be deemed an insurmountable challenge. Instead of pouring its resources into businesses it knows next to nothing about, the company ought to focus its energies on its core competency. Instead of focusing on protecting its local market share and stifling local competition, San Miguel's management owes it to the country, the Filipino people, and themselves to prove that the people behind San Miguel are made of sterner stuff. The only way to do so is to unleash the competitive spirit within them and do competitive battles on foreign shores.

Oh Well....

A week from today, people in this part of the world will be exercising their right to vote for the man who will occupy the most powerful office in the world for the next four years.

National polls and trends point to an Obama victory. They may very well be proven right.

But as a lot of these electoral exercises go, different motivations and situations will drive people to prefer one candidate over another. The motivations could be any of the following: economic, political, social, or emotional.

Some people will base their decision on which candidate's campaign proposals would better address the nation's economic problems. Some people will vote upon due consideration of each candidate's resume and professional track record. Some people will vote because they share the same social experience and history with one candidate. Some people will exercise their right of suffrage and vote for the candidate simply on the strength of the endorsement of celebrities and other pop culture figures. Some people will vote for one candidate simply because his election will make history.

Regardless of who wins, the next President and Presidency will be consequential for the world if it isn't so already. The next President will either be one who was a celebrated war hero who served with distinction in the US Senate or one who has become a favorite among glitzy Hollywood celebrities and the media elite because his campaign style has been nothing short of "cool". But for many people in this world, things boil down to how a President's decision would impact their economic well-being.

For all the people's talk of how much they care for their lives; of how much they love the things that they get to enjoy in life that became possible as a result of either their job or business; of how much it means to them that future generations grow up in a morally upright environment; and of how much it means to people to have a goverment that would continue creating economic opportunities for those who seek them, it bothers me that from all indications, they will vote into office the one candidate who stands for social and economic policies that go against the very things they care about.

Oh well, as the say, "Be careful of what you wish for."

W Endorses Mac and Palin

McCain finally got a much needed campaign "boost" from the President last night.

Enjoy. :)

Satirists often provide a good gauge of the public mood. Senator McCain has indeed tried his very best to distance himself from the President Bush since the beginning of the year. However, except for a few good weeks for him in late August through early September largely brought about by "Palin Mania", his awful handling of his campaign, the Palin candidacy, and his continued failure to sell his tax proposals are all helping to pave the road for an Obama landslide victory in less than a couple of weeks.

Sorry, Mr. McCain.

A Presidential Inauguration in 1935

This event was a first in Asia. This event marked a crucial milestone for a region that was lorded by Western powers at the time. Some of the colonial powers even expressed their concern over the event's impact on the peoples of the region. Time Magazine reported that the British voiced displeasure over this development because it could signal the demise of the white man's rule over that part of the world. The event I'm referring to is the subject of the following newsreel from 1935 that reported on the inauguration of Manuel Luis Quezon as President of the new Philippine Commonwealth.

President Quezon's inauguration was held at the steps of the neoclassic Legislative Building on November 15, 1935. As can be seen from the video, the occasion was graced by then US Vice President John Nance Garner (1868-1967) who served under Franklin Delano Roosevelt from 1933 to 1941. According to Time, Mr. Garner led a party of 17 senators, 26 representatives, and 34 American newspapermen. Secretary of War George Henry Dern (1872-1936) also attended the event as President Roosevelt's personal representative. It was estimated that about 15,000 official guests were on hand to witness history being made.

Mr. Quezon was sworn in to a six-year term by Justice Ramon Avancena (1872-1957) who was then Chief Justice of the Philippine Supreme Court. The 1935 Constitution, which the Filipino people had approved in a plebiscite held in May that same year, called for the election of a President to a single six-year term with no reelection. It also called for a unicameral National Assembly. These provisions were however changed later that same decade (1939-40) when the Constitution was amended to allow for a bicameral Congress and to allow a President to govern for a maximum of two four-year terms.

One can see from the video that it was a very well attended affair. It was estimated that about a quarter of a million people attended the ceremonies marking the inauguration of the President and the birth of the Commonwealth. It is to be noted too that President Quezon's inaugural ceremonies were held on the steps of the Legislative Building and not at the Luneta Grandstand as succeeding Presidents have done since 1946. I am assuming that the decision to hold the inaugural ceremonies at the steps of the Legislative Building was patterned after the American tradition of holding Presidential inaugurations at the steps of the US Capitol Building.

The Legislative Building stands at the corner of Taft Avenue and P. Burgos Street. Thus, I'm assuming that the impressive military parades shown on the newsreel were held on P. Burgos Street. It can also be seen from the joyous and excited attitude of the crowd that the move towards independence enjoyed broad popular support.

The newsreel also briefly showed President Quezon's son, Manuel L. Quezon, Jr. (1926-1998), standing attentively and smartly dressed in an aide-de-camp's uniform. Unfortunately, due to the age of the film, it was quite difficult for me to identify the elegantly dressed couple MLQ Jr. stood next to.

I don't mean to deviate from the historical significance of this newsreel but there is one last observation regarding its content. It can be observed from the video that as President Quezon took his oath of office, one of the microphones that stood before him prominently showed the call letters KZRM. Quite a bit of historic information can be derived from the call letters on that microphone stand.

Note that this was the 1930s, a period before the birth of television broadcasting. Thus, all events of historic or national importance were broadcast over radio. Unlike today where call letters of radio stations in the Philippines begin with the letter "D", it is to be noted that during the pre-war years, specifically from 1924 through 1947, the call letters of radio stations in the Philippines began with the letters "KZ". This designation was in accordance with the radio broadcast laws of the US which applied to our country being an American colony.

KZRM was one of six major radio stations that operated in Manila during the pre-war years. The others were KZEG, KZIB, KZRC, KZRF, and KZRH. KZRM was owned and operated by the Radio Corporation of the Philippines (which later became known as RCPI) and began broadcasting in 1928. The Radio Corporation of the Philippines was then a fully-owned subsidiary of the Radio Corporation of America, or more popularly known to radio and music enthusiasts as RCA.

Of the six stations mentioned, KZRH, owned and operated by the Manila Broadcasting Company is the only one that is still around to this day. This radio station began operations in 1939 atop the Heacock Building in Escolta and is now known to Filipino listeners by its call letters DZRH.

It was at a 1947 International Telecommunications Union conference held in Atlantic City, New Jersey where the radio call letters for the Philippines were changed to begin with the letter "D". Radio stations that broadcast from Manila were assigned call letters that begin with "DZ"; radio stations in Luzon were assigned the letters "DW"; Visayan stations got "DY"; and Mindanao stations were assigned "DX".

Anyway, I hope you enjoy this newsreel. Though it runs for less than a minute, it still manages to provide us with a wealth of historical information about our beloved country.