February 2013
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by Anna Domanska
Economic conditions do not seem to be improving. Japan, the world’s third economy, has been struggling for years and, in fact, it is currently facing another recession. New Prime Minister Shinzo Abe is seen as a knight in shining armor… Will his program, which is widely known as “Abenomics”, have a chance to get the Japan’s economy back on track? You can find an answer for this question and many more in the cover story. But our current issue has something special also for those who are madly in love and are ready to pop out the question. And it seems that February, which is the month of love, is a perfect time for a proposal. So if you think about taking another step, you can find some inspiration in the “Larger than life” feature. People and companies are more environment-oriented as we witness ecologic disasters, including oil spills. Currently, more researchers are involved in finding more efficient ways of cleaning up oil spill that put at risk our lives and the existence of the world. If you are interested in new ideas that can help us survive, just have a look at the “Wow quotient” feature. All this and more… Regards,
Anna Domanska Editor-in-Chief,
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Contents
FEATURES
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COVER STORY
LONDON Back in the XIXth century, Benajmin Disraeli said: “London is a modern Babylon.”...
Will “Abenomics” get Ja38 pan back on track? 82 The term of “Abenomics” has been recently gaining popularity. Analysts are analyzing whether the new government led by Shinzo Abe will be able to get Japan out of the oblivion of recession. And since the victorious elections of the Shinzo Abe party, the new term of “Abenomics” has appeared in the public debate. Read More...
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AstraZeneca AstraZeneca plc is a BritishSwedish multinational pharamaceutical and biologics company...
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Contents
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REGULARS
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Latest in Business
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Leader Talk
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The WOW ! Quotient
28 50 Mergers & More
After all, it seems that the long battle for Fraser & Neave Ltd. is over. Apparently, a group led by Overseas Union Enterprise Ltd. decided to withdraw from the race...
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Mergers & More
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Larger Than Life
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Industry Events & Tradeshows
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12 Lastest in Business
According to a regulatory filing released on the 18th of January, Robert Iger, chief executive officer at Walt Disney Co., collected about $40,2 million compensation for 2012...
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Talk 18 Leader Economy today serves as a re-
minder that there is no guarantee in business. Many entities are finind themselves struggling to stay afloat - and a lot of them are sinking. In better economy days, a company could survive with a moderate profit margin achieved through dedicating attention to its bottom line...
Head-Space
“
Action is the foundational key to all success.
“
- Pablo Picasso
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Maker of Cartier jewelry Richemont sees Q3 sales grow The maker of Cartier jewelry Richemont SA posted its third quarter results showing that sales in the period grew by approximately 5 percent at constant exchange rates and about 9 percent at actual rates. The Genevabased company saw satisfying growth in the Americas, but witnessed lower growth rate in other regions, including the Asia-Pacific region. In particular, the rate of China’s sales slackened as demand for luxury goods dropped in the world’s second economy.
Richemont’s Q3 sales On the 21st of January, the maker of Cartier jewelry Richemont SA pub-
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lished its results for the third quarter ended December 2012. As a result, shares of Geneva-based Richemont SA, which is the world’s second largest luxury goods company, decreased more than 6 percent in early trading. Richemont SA sales increased roughly 5 percent at constant exchange rates in the third quarter to slightly over €2.85, missing the analysts’ estimate of 7.6 percent. r. The results were visibly weaker due to the fact that retailers in the Asia Pacific region and, in particular, China became more cautious. Analysts note that these results indicate the current weakness of the luxury segment in the world’s second economy.
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Latest In
- Anna Domanska
Kim Dotcom launched new file locker “Mega” He is back! Kim Dotcom, the founder of once widely-used and then banned website Megaupload, launched his new venture, namely, file locker service Mega. The launch of the new cloud storage and file-sharing site comes one year after the closure of popular Megaupload, while Kim Dotcom is facing extradition to the United States as he is charged with internet piracy.
New “Mega” New file-sharing site “Mega” is expected to gain popularity due to the fact that it is a service that enables people to up-
load and store files, including films and music records. It is simply a continuation of famous Megaupload which was shut down by authorities for breaking copyright laws. New file locker service “Mega” is said to have a end-to-end encryption system enabling its users to cypher their files before they decide to upload them. As it has been underlined by Kim Dotcom its new service “Mega” would duplicate encrypted files and store them with hosts, while the servers are located in New Zealand and overseas as well.
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Disney CEO Robert Iger gets 20% increase According to a regulatory filing released on the 18th of January, Robert Iger, chief executive officer at Walt Disney Co., collected about $40,2 million compensation for 2012, a 20 percent increase from a year earlier as the entertainment giant reported high revenue, net come as well as earnings per share in the period.
roughly $7.75 million in option awards and a bonus of approximately $16.5 million. Walt Disney Co. granted the 20 percent increase as it noted fruitful and successful results in 2012. According to data, the company saw its profit jump about 18 percent to approximately $5.7 billion in 2012.
20% increase
Walt Disney Co.’s profit grew about 3 percent to as much as $42.3 billion in the year, while earnings-per share climbed about 24 percent. The California-based company informed that Robert Iger’s performance was found exceptional.
Data showed that the Robetr Iger got the $2.5 million base salary and slightly over $3 million in pension benefits, more than $9.5 million in stock awards,
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Latest In Tax relief granted for 90% of North Sea developments According to a Deloitte’s study, over 90 percent of the North Sea developments in 2012 were granted tax relief. Tax breaks, which have been recently introduced, are expected to encourage investors to engage more in the North Sea, the British oil province.
Activity in the North Sea The study, which was conducted by Deloitte, showed that drilling for oil and gas in the North Sea was nearly 35 percent higher in 2012 compared to a year earlier. As for deal activity in the North Sea, it climbed by as much as a third.
Without a doubt, high oil prices encouraged to ramp up activity in the British oil province. The survey also noted that activity was significantly boosted by a broader range of tax allowances as well. As it was underlined by Graham Sadler, managing director of Deloitte’s Petroleum Service Group, “The Government introduced a range of tax reliefs which have sufficient breadth and depth to create an environment in which companies of all sizes and investors have the confidence to take some risk and expand their operations in the North Sea.”
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Miner Rio Tinto to expand iron ore production on growing China’s demand Rio Tinto PLC, the world’s second largest mining company, informed that it would expand iron ore production by approximately 15 percent as it saw its 2012 output grow to about 253 million tons, topping its earlier forecast. The strong results were pushed mainly by the revival in China’s demand for iron ore.
Rio Tinto’s 2012 results On the 15th of January, Rio Tinto posted its fourth quarter results showing that iron ore production climbed to about 52 million tons in the final three months of
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2012, compared to slightly over 51 million tons in the same period a year ago. According to data, Rio Tinto produced roughly 253 million tons of iron ore in 2012. As it has been announced by Rio Tinto, the global miner attempts to produce 290 million tons by the end of 2013. By the end of 2013, Rio Tinto aims to produce roughly 360 million tons of iron ore. If the company’s expansion plans come true, Rio Tinto will replace Vale S.A. as the world’s largest producer of iron ore.
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Latest In Imperial Tobacco’s mood spoiled by black market sales On the 30th of January, Imperial Tobacco Group Plc. informed that the first-half profit would decline because of black market sales and the deepening crisis in Europe. Along with the announcement on the half-year profit outlook, the Europe’s second-biggest tobacco company revealed that Robert Dyrbus had resigned from his position.
in revenue was driven by higher prices. The company has pinned the blame for these results on black market sales which are more popular among Europeans. Therefore black market sales are expected to hit the first-half profit. According to figures, that market volumes for legal cigarettes in the European Union fell by as much as 7 percent.
Gloomy outlook for gloomy times
The company has underlined that it expects the first-half operating profit to decline on year-on-year basis. However, the JPS, Davidoff and Gauloises Blondes producer expects 55 percent of the profit to come in the second half of its fiscal year.
Imperial Tobacco Group Plc. reminded that it witnessed a 2 percent increase in its net revenue in its first fiscal quarter ended December 2012, however it also saw its volumes go down. The increase
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Adopting a C driven
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Corporate Culture n by values - Patrick Alain
Economy today serves as a reminder that there is no guarantee in business. Many entities are finding themselves struggling to stay afloat – and a lot of them are sinking. Industry Leaders Magazine
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Cultural focus in tough economy. Economy today serves as a reminder that there is no guarantee in business. Many entities are finding themselves struggling to stay afloat – and a lot of them are sinking. In better economic days, a company could survive with a moderate profit margin achieved through dedicating attention to its bottom line. However, to be truly resilient through an economic downturn, a company must be based on values, not profit margins. Focusing on values increases performance levels, improves service, reduces employee variability, and supports sustainability. A value-driven culture not only helps a company’s bottom line, but also sets groundwork for establishing a powerful legacy that can have a positive social im-
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pact for generations. Struggling companies may believe that the only way to outlast today’s economy is by having an obsessive focus on the bottom line, thus ignoring their values and creating a profit at all cost. These companies are operating within the first three levels of corporate awareness, as defined by Barrett’s Values Centre, which focus on pursuit of profit, need-based relationships, and day-to-day best practices. In times of financial stability, this might be enough for moderate success. However, for companies aiming to survive through the worst of times and thrive through the best, higher levels of corporate awareness are needed. To reach these levels, companies need a supportive, creative culture of shared values including: strategic alliances
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with customers and the local community; physical, emotional, mental, and spiritual employee fulfillment; environmental stewardship and sustainability; and long term perspective for improving and empowering future generations.
“100 Best Companies to Work for in America” was 23% compared to only 14% for companies on the Russell 3000 Index.
When Stakeholders Share the Right Corporate Values, Companies Deliver Better Results Rebelling against the oppression of the bottom line takes courage, but it is a worthwhile endeavor. A recent study showed that over a ten year period, the average annual shareholder return for the “100 Best Companies to Work for in America” was 23% compared to only 14% for companies on the Russell 3000 Index, a general index of American industry. Companies that focused on all stakeholders – shareholders, existing and potential
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employees, and society – and emphasized leadership development, grew four times faster, created jobs seven times faster, and had stock prices that grew twelve times faster than those that did not. Collins and Porras, authors of Built to Last, found that companies mindful of corporate culture outperformed others by a factor of six and outperformed the general stock market by a factor of fifteen over a period of several decades. On the whole, the profit performances of values-based organizations are an astounding 750 times higher than companies without cultures of shared values and adaptability.
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Being Resilient To be truly resilient through an economic downturn, a company must be based on values, not profit margins. This data reveals that a company’s values are important to all of its stakeholders; society, shareholders, and employees. What a company sells is becoming less important than what a company values and stands for. In the mid-90s, 66% of Americans stated that they would switch to a brand associated with a good cause, price and quality being equal. That number spiked to 76% near the end of the decade. In the 21st century, the green revolution and emphasis on sustainability have
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far more valuable to investors. NYU Stern School of Business professor Baruch Lev reports that “between one-half and two-thirds of corporate market value reflects the value of intangible assets.” In other cases, intangible assets may account for as much as 80-90% of a company’s market value.
Resilient businesses need to recognize what so many shareholders understand: a company’s value is equal to the values of the company. As Barrett writes, “The only way companies are going to increase market value in the 21st century is by focusing on their intangible assets – the components of cultural capital.” Resilient businesses need to recognize what so many shareholders understand: a company’s value is equal to the values of the company.
The Right Culture Attracts the Right People
thrown an even greater spotlight on corporate values.
The ability of a values-based organization to outperform its competition is the result of the attention paid to its employees, both current and potential. A corporate culture based on support, creativity, and shared values attracts and keeps talented, hardworking employees.
A company can no longer afford to view itself as an isolated, profit-driven entity; it must recognize that its resiliency during economic hardships is dependent on its role in societal sustainability. Society’s views of corporate culture are also reflected in a company’s shareholders. Emphasis on green production has made shareholders pay more attention to intangibles than ever before.
Companies not only need to fulfill employees’ physical and emotional needs, but also their mental needs by supporting creativity and creating opportunities for self-improvement and education. Successful companies also focus on spiritual needs, such as helping employees find meaning in their work, feel that they are making a difference, and believe that they are being of service through community action plans and charitable work.
In the stock market, the intangibles of intellectual and cultural capital are becoming
In these ways, employers are realizing big gains in human capital and profit margins.
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The Wilson learning Corporation found that 39% of the variability in corporate performance is attributable to the personal fulfillment of employees. The relationships an employee has with his or her superiors account for 69% of the variability in employee fulfillment. Furthermore, when an employee leaves an organization, 80% of the time the reason is related to a relationship with a superior. Without a focus on corporate culture, company values, and employee fulfillment, a business cannot attract the creative, talented people needed to pull a business through
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difficult times and raise it to the highest level of sustainability and social responsibility.
Implementing Change
a
Cultural
Changes in corporate culture are only truly effective when adopted from the top to the bottom of an organization. The values of management and all employees need to be assessed and aligned. Once agreed upon, the values and mission statement of an organization must saturate a company through coaching, action plans, and align-
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ment and cohesion programs. Plus, these new focus areas must be quantified with metrics and put alongside the profit metrics for measuring the progress of the entire organization. Execution, maintenance, evaluations, and above all, the com-
plete commitment of the leadership team, are necessary for a cultural transformation. Many companies choose to begin a relationship with an outside expert to achieve these goals. An expert in developing corporate culture will have the tools, know-how, and resources to go about measuring and align-
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ing corporate values, while allowing the company to focus on its core competencies. Companies that focused on all stakeholders – shareholders, existing and potential employees, and society – and emphasized leadership development, grew four times faster, created jobs seven times faster, and had stock prices that grew twelve times faster than those that did not.
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Companies cannot afford to ignore the role that a value based culture plays in the success and resiliency of a business in difficult times. Taking advantage of economic hardships by improving corporate culture can allow the changes made for survival today to result in the creation of a legacy that will positively impact society for generations to come.
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The Oil Spi
The Ideas on
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The
ill Cleaners
n the Rescue
- Richard Meryn
“It is so big and expanding so fast that it’s pretty much beyond human response that can be effective. ... You’re looking at a longterm poisoning of the area. Ultimately, this will have a multidecade impact.” - Richard Charter of the Defenders of Wildlife Industry Leaders Magazine
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The scourge of oil spill will bedevil humanity. In last years, we have witness many oils spills. Some of them where small, some of them were bigger, but undoubtedly all of them had enormous impact on the environment. And as good planets are hard to find and we have to look after the Earth, the best way to keep the world clean and imbalance is to prevent oil spills. But oil companies and simply people make mistakes, not to mention that technology sometimes comes unstuck. The Deepwater Horizon oil spill has shown how much oil spills are harmful to the environment and people. But the oil spill in the Gulf of Mexico has also shown that oil com-
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panies and their technology is not enough for cleaning up oils spills. And cleaning up oil spill is crucial for the future of our planet and for our own good sake.
The Deepwater Horizon oil spill has also shown how much oil spills are harmful to the environment and people. Different companies, individual scientists and groups of independent young engineers have been working on ideas of cleaning up
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The
oil spills and the new technology. The efficient cleaning up oil spill is inevitable as we want to continue to live in the balanced ecosystem. While oil spills create colossal problems for ecosystem and wildlife, but in fact cleaning up oil spills can bring even more problems. The Deepwater Horizon oil spill cost a lot – BP and its partners had to pay hefty sums for cleaning up the oil spill, not to mention damages. Even though the Deepwater Horizon oil spill in the Gulf of Mexico had a disastrous impact on the ecosystem, wildlife and life of people, the catastrophe has pushed companies and scientists to look for and develop efficient technology of cleaning oil spills so that the negative effects will be minimize in
case of a similar disaster.
Magnets to the rescue One of the ideas of cleaning up oil spill was developed by researchers from the Massachusetts Institute of Technology (MIT). They claim that magnets can be use to recover oil after a spill. Some may ask: “How it’s possible, provided that oil is not magnetic?” According to researchers, when oil is mixed with water-repellent nanoparticles that contain iron, a spill might be removed from the water almost effortlessly. And what is more, by removing the nanoparticles, companies will be able to reuse the oil. Markus Zahn, who works in the Research Laboratory of Electronics MIT Laboratory for Elec-
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tromagnetic and Electronic Systems and High Voltage Research Laboratory, underlined: “I had known about other scientists using magnetic fluids to separate oil but it had never worked out practically and that was something I felt I could do something about.� The magnets method, however, has been welcomed with mixed feelings. As it was stated by the Markus Zahn, one big oil company refused to financially support the
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research. Yet the MIT scientists are confident that other companies or even public departments will be interested in sponsoring further research. But the magnets method is said to be highly controversial, not to mention that it is difficult to use it on a large-scale. Some experts note that the use of magnets to remove oil spills is highly risky as it may even damage marine life in case of an accident.
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The Cesar Harada – idealist Cesar Harada might be called many things, but the best word to describe him is an “idealist.” As he admitted, he resigned from his dream job at MIT once he learnt about the Deepwater Horizon oil spill so that he could focus on the development of the technology of cleaning up oil spills which is fast in use, cheap and open-force.
Since the biggest oil catastrophe in the human history, Cesar Harada has been working on an open source spill cleaning robot, Protei. In his opinion, oil spills are men-made problems, but people can eliminate them by using natural forces. Since the biggest oil catastrophe in the human history, Cesar Harada has been working on an open source spill cleaning robot, Protei. As it was highlighted by him, the design was inspired by ancient sailing techniques. Cesar Harada aims to build remote-controlled, autonomous, relatively inexpensive and open hardware which will be efficient in cleaning up oil spills while preserving the health of the workers.
Therefore some experts underline that the method would be good when it comes to small-scale use. Dr Susan Shaw, founder of the Marine Environmental Research Institute, highlighted: “On a small-scale it (the magnetic technique) may be an excellent system but I don’t think it will work at sea in such a challenging environment,” adding that the MIT development would be a good way of recovering the oil but ashore.
He strongly believes that it is possible and evitable as the traditional oil spill skimming technologies are not sufficient to fully get rid of oil as they are only able to collect roughly three percent of it, not to mention that the method is risky to workers’ health. So the idea of Protei gives a hope for a safe and efficient way of cleaning up oil spills. What is interesting is that Protei is developed by a globally connected network of enthusiasts willing to work on technology which will be a better way of cleaning oil spills. However Cesar Harada is strongly convinced that this method might be used elsewhere, he has underlined: “We have several hundreds of millions of tons of
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plastic in the ocean to collect. We need distributed surface instrumentation to study disappearing corals reefs, monitor shrinking fisheries, measure radioactivity leaks and much more,” Harada says.
Expensive – cheap
Oil companies will, certainly, use some of newly-developed technologies. However it is clear that they will use those technologies which will give them more savings. But analysts indicate that the new products, which are developed around the globe, will not likely to generate serious earnings as the oil spills, especially bigger ones, are rare.
Jim O’Brien, founder of O’Brien’s Response Management, noted: “There will be a strong focus for some years ... but in the absence of a significant (spill) for an extended period, apathy will fall in place.” 34
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And not all companies want to support these developments and projects. And clearly, oil giants do not want to collaborate as they consider each other to be mortal threat. Cesar Harada is strongly convinced that collaboration is the best way to develop effective and successful ways of cleaning oil spills. But experts also fear that oil companies will not support the projects once major spills fade from the memory and news. Jim O’Brien, founder of O’Brien’s Response Management, noted: “There will be a strong focus for some years ... but in the absence of a significant (spill) for an extended period, apathy will fall in place.” But the progress of all projects aimed at developing technology of cleaning up oil spills also depends on the hierarchy of val-
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The
ues. The question remains whether on the top is either environment or profit. The answer can change everything. Undoubtedly, no two oils spill are the same given oil types, locations and other factors, but on the other hand there are many promising oil spill cleanup innovations including a robot that detects spills, soak-up sponges, a very groovy disc, an oil-collecting funnel, etc. that are expected to help resolve problems caused by these disasters. We have recently heard that the colonization of Mars is not longer a dream of some crazy scientists. Two separate projects are aimed at colonizing the Red Planet in approximately 10 years. Yet, in the near future the Earth will stay our main planet and therefore we should pay much attention to the environment and cleaning all the dirt, including oil spills, as good planets are hard to find.
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Will “Abeno Japan back 38
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omics” get on track?
- Anna Domanska
The term of “Abenomics” has been recently gaining popularity. Analysts are analyzing whether the new government led by Shinzo Abe will be able to get Japan out of the oblivion of recession. Industry Leaders Magazine
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The term of “Abenomics” has been recently gaining popularity. Analysts are analyzing whether the new government led by Shinzo Abe will be able to get Japan out of the oblivion of recession. And since the victorious elections of the Shinzo Abe’s party, the new term of “Abenomics” has appeared in the public debate. Certainly, in the near future we will hear more often the term which describes the fundaments of the new policy introduced by Prime Minister Shinzo Abe. But what does this enigmatic term mean?
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Where did it come from? The origins of the term are very difficult to trace, but certainly the expression comes from the combination of the last name of the current Prime Minister and the word “economics.” In a nutshell, “Abenomics” is related to the Shinzo Abe’s promises regarding the introduction of more public spending, loosening monetary policy, implementing fiscal stimulus to boost the Japan’s economy. Economists however underline that “Abenomics” is nothing new and that the Shinzo Abe’s policies will introduce nothing new as all of these steps have been already used
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by previous LDP governments with little success. But some experts believe that “Abenomics� including the efforts to coordinate policies as well as the acceleration of both fiscal and monetary policy might be fruitful and even by the end of the first half of 2013 some results will have been observed.
Victorious Abe Japanese citizens, who have been facing more economic plights, chose Shinzo Abe and his party LDP to govern the country. It will be not the first time Shinzo Abe has a chance to rule Japan as from September 2006 to September 2007 he served as the
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Prime Minister of Japan. What’s more, the victory of LDP was not a surprise... Without a doubt, his promises to end 20 years of economic stagnation and the former government’s inability to take back the Japan’s economy back on track and the pledge to end a territorial dispute with China had the main impact on his victory. After the short break the LDP came back to power. Shinzo Abe will have to face many issues
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which are not so new to him, namely, deflation, the strong yen, an aging population, high cost of living. But there is one more problem, which might be an obstacle while trying to overcome aforementioned problems, namely, he has been labeled a “nationalist” and this tag does not help while establishing relations with other governments and cooperating on the international level as rightwing politicians push Shinzo Abe to challenge China over the Senkaku Islands and change the ”American-imposed” Constitution in order
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expected to concentrate on the first two. Certainly, the moves in the monetary policy have captured attention of analysts. The government of Shinzo Abe had been pushing the Bank of Japan to be more aggressive, finally the central bank gave up. But the most important and significant in the government – central bank relations was the fact that Shinzo Abe threatened to modify the character of the central bank to force it to comply with his demands. Without a doubt, these kinds of threats are not the best start of the cooperation in any case. Yet it should be underlined that the independence of the Bank of Japan is not the same as FOMC.
The biggest problem in Japan is not the territorial dispute with China or deflation, but the lack of innovation in big business. While the Japanese people believe that Shinzo Abe can get the Japan’s economy out from the oblivion, some experts underscore that the Prime Minister’s plan, which is widely known as “Abenomics” might not be what a doctor prescribed. They highlight that there is nothing new in “Abenomics”, it is simply a combination of public works and construction spending program and monetary easing.
to delete famous Article 9. And while some of these pushes are irrational, the Prime Minister should aim to end the territorial dispute as Japan and China just need more cooperation. But everything indicates that, in fact, Shinzo Abe will focus on the economy. The economy should be his priority. While there are three main components of the LDP program, monetary policy, fiscal policy and nationalism, the new government is widely
Tough times for Japan Just before the elections, Japan entered its fifth recession in 15 years. Certainly, the territorial dispute with China does not help the world’s third economy. But according to some analysts, the biggest problem in Japan is not the territorial dispute with China or deflation, but the lack of innovation in big business. Japan, which once was the better business destination, has been losing many foreign
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businesses as the 40 percent corporate tax is daunting. Analysts are convinced that the government of Shinzo Abe should introduce more incentives for companies to stay in Japan. Latest results show the tough conditions which Japan faces. For example, according to data, the world’s third economy saw its industrial output decrease approximately 1.7 percent in November from October. Yet Japan’s industrial output declined almost 6 percent compared with 2011 November.
Certainly, the industrial output was affected by the slowdown in exports as the territorial dispute between the Japanese and Chinese governments triggered a consumer boycott in China. The 1.7 percent decline was partly caused by a decrease in general machinery output and fall in smartphone demand as well. In addition, the November’s decline in industrial output exceeded analysts’ estimates of the 0.5 percent decrease. According to the findings, among those industries which led to the decrease in November were, inter alia, general machinery, fabricated metals and electronics equipment. Certainly, the industrial output was affected by the slowdown in exports as the territorial dispute between the Japanese and Chinese governments triggered a consumer boycott in China. But demand for Japanese exports was hurt also by the European debt crisis. Also the strength of the Japanese currency, the yen, has made things only more complex. Due to the strength of the yen, Japanese exporters have been encountering more problems while trying to sell their products.
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Also other results, which show that the 2012 annual trade gap increased to approximately $78 billion (6.93 trillion yen) as exports continued to dive and fuel imports climbed, do not instill optimism in analysts. The Ministry of Finance informed that the imports rose in 2012, with the biggest jump of approximately 34 percent in energy exports. Energy import grew to over $270 billion after the Japanese nuclear power plants were shut down following the
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earthquake and tsunami in 2011. As of yet, only two reactors are working and generating electricity, thus Japan is forced to import LNG and other fuels to compensate for the shutdown of its energy sources. According to data, Japan decided to import energy largely from the Middle East and the country’s energy dependence increased.
exports to China plunged by roughly 10.8 percent in the period. The aforementioned boycott affected many Japanese exporters, inter alia, Japan’s carmakers including Toyota Motor Corp. and Honda Motor Co. As for Japan’s exports to the European Union, the ministry informed that Japan saw it decrease by as much as 15 percent.
At the same time, Japan saw its export decrease due to lower demand in crisis-hit Europe and the Chinese boycott of Japanese products. According to data, Japan’s
“Abenomics” answer for Japan’s gripes Shinzo Abe once underlined: “We need to
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say goodbye to the shrinking economy and aim to achieve a strong economy where innovation and new demand lead to more jobs and income.” Yet while the goals are reasonable, the question remains whether “Abenomics” is the right mixture of policies to fight with recession. But not too encouraging data on the Japan’s economy is believed to have give Prime Minister Shinzo Abe more tools so that he will be able to pressure the Bank of Japan. Indeed, the Bank of Japan made its strongest move on the 22nd of January by changing its monetary policy and implementing a program similar to one introduced by the US Federal Reserve. The bank aims to achieve a 2 percent increase in consumer prices “at the earliest possible” moment following a massive
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spree of purchasing assets on an “openended” basis. The inflation target had been set at 1 percent in 2012. However, due to a stagnant growth rate and intense pressure from the government, the new inflation rate was repositioned at 2 percent. The central bank had witnessed intense pressure from the Prime Minister of Japan, Shinzo Abe, regarding the falling prices and the inability to bring a change in the stagnant economy. The global financial crisis led to diminish the growth rate in Japan over the years. The relatively weak economy and a low grade deflation rate had pushed Japan into the web of recession. As it has been underlined by Shinzo Abe, “a more aggressive action is needed from the third largest economy in the world to tackle falling pric-
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es and a dull business environment�. Since two decades Japan has made consistent efforts in overcoming the problem of a weak economy and decrease in deflation. However, the recent implementations by the Prime Minister of Japan have proved to be unorthodox and assure to bring new reformations that will help strengthen the economy of Japan. The approach of open-ended purchasing will be in effect from 2014; the bank aims to purchase assets worth nearly $150 billion every month.
disturbed as they believe that the new BOJ policy, which was announced on the 22nd of January, might lead even to possible competitive devaluations among largest economies and that would, without a doubt, have damaging results on the economic situation. But the latest steps aimed at deteriorating the value of the Japanese yen have not been welcomed by foreign policy makers who believe that it might lead the currency war.
On the 28th of January, Japanese analysts felt an air of hope on their faces as the government informed that it expected to see the Japan’s economy to increase 2.5 percent in 2013/2014 fiscal year. The forecast is mainly based on the assumption that the latest fiscal and monetary policies, which have been lately introduced by Shinzo Abe, will boost domestic demand and Japanese exports in key overseas markets as well. Industry Leaders Magazine Feb 2013 47
The new Prime Minister, Shinzo Abe, has highlighted that he aims to boost industrial competitiveness by introducing stimulus program and increasing spending on public projects as well. Yet analysts are convinced that if the new government wants to see stagnation end, real and tough structural changes have to be implemented. But foreign governments and analysts are
Thai bill Charoen’s closer to the
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lionaire big dream e realization
- Jason Miller
“We believe the offer represents an opportunity for F&N shareholders to realize the value of their investment in cash and to make a complete exit from F&N� - Charoen Sirivadhanabhakdi Industry Leaders Magazine
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of $10.3 billion was not compelling at the time, according to the F&N board. Initially Charoen Sirivadhanabhakdi had been only interested in Fraser and Neave (F&N) beer assets. However after analyzing the company’s portfolio he noticed merits of Fraser and Neave (F&N) properties and distribution networks. After all, it seems that the long battle for Fraser & Neave Ltd. is over. Apparently, a group led by Overseas Union Enterprise Ltd. decided to withdraw from the race as it did not increase its bid to match Thai billionaire Charoen Sirivadhanabhakdi’s offer of approximately $11.2 billion for the Singapore-listed property and beverage company. Thailand’s third richest man needs only to gain the shareholders’ and regulatory approvals for his bid of $9.55 per share for Fraser & Neave Ltd. The playoff started back in September 2012 when Charoen Sirivadhanabhakdi decided to make a takeover offer for Fraser and Neave (F&N). However his offer
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Successful bid for F&N Thai billionaire Charoen Sirivadhanabhakdi is one step closer to the takeover of Fraser & Neave after the long and exhausting battle against Overseas Union Enterprise Ltd., the consortium led by mogul Stephen Riady and backed by Kirin Holdings Co. which happens to be F&N’s second-largest shareholder with a nearly 15 percent stake. In this long-lasting contest, Thai beer tycoon Charoen Sirivadhanabhakdi decided to increase his offer for the 130-year-old Fraser & Neave Ltd. to as much as S$9.55 per share, or $7.78, from roughly S$8.88 per share, exceeding the $9.08 per share offer made by the group led by Overseas Union Enterprise Ltd. The latest bid from Thai
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billionaire Charoen Sirivadhanabhakdi was sweetened by approximately 7.5 percent, compared to his previous one. But Thai billionaire Charoen Sirivadhanabhakdi had been preparing for the takeover of Fraser & Neave for some time before he finally got it. He is the owner a 40 percent stake in the 130-year-old company which has assets from soft drinks to properties. The stake was initially acquired as the Thai billionaire could gain an advantage in the battle for the biggest takeover of a Singapore-based company.
Analysts note that the price per share might have been much higher, yet S$9.55 is not a bad offer at all. They underline that everything indicates that the majority of F&N shareholders would be satisfied with the offer. Experts also note that Thai billionaire Charoen Sirivadhanabhakdi is strongly convinced that his latest bid was generous enough to be accepted.
No. 1 obstacle on the Charoen’s road to F&N takeover One of the first obstacles on the Thai Bil-
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lionaire Charoen Sirivadhanabhakdi’s road to the successful takeover of Fraser $ Neave Ltd. was an offer made by unnamed party. Back in October 2012 Fraser &Neave Ltd (F&N) received an offer of roughly $1.1 billion for its hospitality and apartment unit. The bid was expected to complicate Thai billionaire Charoen Sirivadhanabhakdi’s efforts to takeover of the conglomerate. However Fraser and Neave (F&N), the Singapore-based conglomerate, informed that it turned down the $1.1 billion bid from the unnamed party to buy its hospitality unit. As it was underlined by anonymous sources, Overseas Union Enterprise Ltd, which
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was backed by Lippo Group, made the offer bid for the Fraser and Neave Ltd.’s(F&N) unit. On the 10th of October Fraser & Neave (F&N) disclosed the bid of $1.1 billion in a statement to the Singapore stock exchange; however the company did not identify the bidder. Fraser and Neave only informed that the party making the bid for the hospitality and residence unit was not related to either directors or substantial shareholders. The bid, however, did not threaten the Thai Billionaire Charoen Sirivadhanabhakdi’s takeover plans. The mogul was able to focus on his efforts aimed at the takeover of Fraser & Neave Ltd.
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brewer Kirin Holdings Co. which planned to purchase F&N’s food and beverage unit if the takeover was successful. Both offers, Charoen Sirivadhanabhakdi’s $7.2 billion bid made in September and the Overseas Union’s $10.6 billion bid made in November, were turned down as Fraser & Neave believed that they underestimated the value of the company. Without a doubt, the emergence of the rival in the shape of the group led by Overseas Union consortium was viewed as a threat by Thai Billionaire Charoen Sirivadhanabhakdi. However in the third week of January 2013, Singapore’s Securities Industry Council stepped in to secure shareholders’ need for certainty.
The company believed to the last moment that the F&N takeover was a chance to transform it into the Singapore’s No.1 listed residential developer.
No. 2 obstacle on the Charoen’s road to F&N takeover Despite the fact that the bid for the hospitality unit of Fraser & Neave was declined, Overseas Union came back as a leader of the group deeply interested in the takeover of the Singapore-listed company. What is interesting is that the group, which was led by Overseas Union, was backed by Kirin Holdings Co., the owner of nearly 15 percent stake in Fraser & Neave Ltd. The first offer of the group led by Overseas Union was made in November 2012. The $10.6 billion bid was backed by Japan’s
The institution set a deadline of the 20th of January for the bidder to show their final offers or submit to an auction. The action of the Securities Industry Council pushed Charoen Sirivadhanabhakdi to buy slightly over 93 million shares, or about 6.46 percent of Fraser & Neave, on the 18th of January 2013. A day after on the 19th of January, he decided to sweeten his offer to S$9.55 per share. Overseas Union Enterprise Ltd., however, did not decide to submit a better bid, it withdrew from the battle for Fraser & Neave Ltd. as it partners had not agreed to raise their last offer. The successful F&N takeover for a bigger amount of money would not have been as appealing as the partners initially thought. The company believed to the last moment that the F&N takeover was a chance to transform it into the Singapore’s
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No.1 listed residential developer.
Building Empire News on the withdrawal of the group led by Overseas Union Enterprise Ltd. was welcomed with big relief and satisfaction by Thai billionaire Charoen Sirivadhanabhakdi. The $11.2 acquisition of Fraser & Neave is certainly the biggest takeover in Southeast Asia. The takeover is aimed at adding popular names and brands, not to mention distribution networks to Thai Beverage Plc which is owned by Thai billionaire Charoen Sirivadhanabhakdi and led by his son. Certainly, 130-year-old Fraser & Neave Ltd. was a tidbit for the Thai billionaire as the company is said to be a leader in Singapore and Malaysia’s soft drink markets.
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Thai Beverage Plc, which is led by the Charoen Sirivadhanabhakdi’s son, is likely to get better access to soft-drink markets of Fraser & Neave Ltd. At last Thai billionaire Sirivadhanabhakdi succeeded and his vision of expansion might actually come true despite the failure of the acquisition of Asia-Pacific Breweries. What is underlined is the fact that the takeover of Fraser & Neave Ltd. is in the line with the company’s expansion strategy. 2012 will be remembered as a big year for mergers and acquisitions in the Southeast Asian region. Takeovers, mergers and acquisitions reached the highest level since the beginning of the global financial crisis. The all recent bids and takeover battles indicate following trends:
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• The significance of the Southeast Asia region as a whole and the individual economies as the regional companies have been becoming crucial players also outside their home markets. Southeast Asia economies are the example of the fast growth not much affected by the global financial crisis compared to the so-called
Western economies. • The growing significance of the billionaire families who are in charge of those companies.
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LONDO
Puts an Eye on
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BETTER BUSINESS DESTINATION
ON
n Business
-Jason Miller
“By seeing London, I have seen as much of life as the world can show.” -Samuel Johnson Industry Leaders Magazine
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Back in the XIXth century, Benajmin Disraeli said: “London is a modern Babylon.” Time passed, yet the Prime Minister’s allegation is still up to date. Once you visit London, you will not only feel that it is full of tourists from all around the globe as it is full of historic and cultural heritage but you will inhale the air sated with the international business and unlimited possibilities. In fact, it is not an exaggeration to say that London is the center of the British financial life and one of the world’s foremost inter-
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national financial centers as well. London has, undoubtedly, profound importance for the UK’s economy as the city’s GDP is larger than GDP of smaller countries. All these above along with the city’s luring attractiveness make London also the leading location for European headquarters. Some underline that cultural diversity and human capital are the foundation of the competitive advantage over other cities, thus making London the better business destination. Without a doubt, so-called
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BETTER BUSINESS DESTINATION
“The City�, which is site located on eastern side of central London, is a proof that London is the better business destination as you can find there endless banks, insurances companies and other business services. But all these services can be found throughout London. But what makes London the better business destination? What is so special and alluring in the capital of the UK that companies are keen on running businesses,
doing them and just being there?
London – business destination Even though the center of inertia is moving from the West to the East, London and other cities are still better business destinations. Some companies even think that London itself is the best place in the world to set up the headquarters, affiliates, etc. Certainly London is included in the selec-
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tive group of cities which are said to be better business destinations. The Mayor of London, Boris Johnson underlined: “Despite the current challenging economic climate, London remains a resilient and strong base for businesses of all sectors to operate in, and quite simply, the best big city on earth.�
The strategic localization, which means easy access to the local and international market, will just get your business on the right track. But London is one of the favorite better business destinations because it has stable legal system which will enable you to get licenses and deal with government offices easily and it glories in the quality of human resources so one will not have a problem with finding the right individual for jobs. But also factors such as availability of transport infrastructure, favorable time zones, excellent facilities and easy access to markets make London a city attractive for business in general and make the business successful. All of aforementioned factors mean and lead to one important thing, namely, opportunities. Without opportunities, success is not possible. The strategic localization, which means easy access to the local and international market, will just get your business on the right track. Therefore it is not surprising that London has been enlisted in numerous rankings of the best business cities in Europe and in the world. And despite the fact that Europe is currently more open, London still remains attractive for companies which are looking for a place to locate their companies. According to several surveys, many companies are still interested in setting up or expanding their businesses in London in spite of the ongoing financial crisis. That shows the strong position which the capi-
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BETTER BUSINESS DESTINATION
tal of the UK has and confirms that it is the better business destination. James Close Government Services partner at Ernst & Young underlined: “Whether they have always been part of the fabric of the city or a global company that has set up here from abroad – perceptions of London elsewhere are clearly high.”
London & Companies As it has been already mentioned, London is home to many companies from all over the world. According to several studies, over half of the UK’s top 100 listed services and more than 100 of Europe’s 500 largest enterprises have chosen London as the place to run business as the city offers easy access to markets and customers, quality human resources, strong and developed telecommunications and communication infrastructure. Above factors are decisive while making decision to locate or relocate businesses.
There is a visible trend showing that fast-growing companies from emerging markets such as China and India choose London as a place to establish their headquarters. The service sector in London has started accelerating in the 1980s when a decrease in production and manufacturing jobs started. Still in London there can be found modern product-based manufacturing-specialist and high-tech companies. In addition, there is a visible trend showing that fast-growing companies from emerging markets such as China and India choose London as a place to establish their headquarters. Certainly, the easiness of setting up the business and maximum return on investment give London an edge against other rival cities in the Old Continent. London as the better busi-
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ness destination is the Europe’s easiest city to do business in. Authorities know that the position of London may be maintained only if investments are to be continued, thus billions of pounds are being invested in many areas including infrastructure and telecommunications. Companies want to do business in a city which is modern and goes with the times.
English language, relatively low taxation, the deregulated economy, etc. contribute to a business friendly environment that is so alluring and tempting for international companies. Doing business in London is a dream comes true for many companies as the better business destination is a city where everything is possible. Companies are convinced that London might be the beginning of something big for them.
Companies also choose London as the bet- London ter business destination has historical relationships with the US and Asia as well. The 66 Feb 2013 Industry Leaders Magazine
in the Future
BETTER BUSINESS DESTINATION
investment location, it needs to adjust to new conditions. It simply has to continue to provide a stable and secure environment, quality human resources, and invest in infrastructure and innovation. Vanessa Rossi, senior research fellow at Chatham House, underlined: “Access to specialist business clusters, a skilled workforce and new technology will attract innovative international companies to London.”
“I want London to be the best big city in the world in which to live, work and invest.” If London as the better business destination wants to remain significant in the future, it has to build an environment which will be favorable for global innovation process, international alliances, corporate innovation strategies, etc. London has many features that make it the better business destination. Demographics, human capital, access to markets, operating environment and other make it attractive for doing business. London needs, however, to adjust to changing trends, but with its unique features the process of adapting will not be as painful as in case of other better business destinations.
As competition gets fiercer, London has to prepare itself to remain attractive for companies, to remain the better business destination. The world is changing; the center of political and economic gravity is moving from West to East, London has to gear up for the coming changes. India and China, these two Asian countries are to dominate the world in the near future. In fact, India and China are to dominate as sources and recipients of foreign direct investment (FDI). If London wants to remain the better business destination and the
London has its magic. And certainly it will not give up easily and will continue to be in top places to do business. Boris Johnson, the mayor of London, commenting on one of rankings underlined: “I want London to be the best big city in the world in which to live, work and invest and I am delighted that my fellow mayors already put us in the top three. (…) And we are always willing to learn. I admire both the Olympic legacy of Barcelona and the sustainability achievements of Copenhagen, and I will be seeking shamelessly to copy and then improve upon their success.” With the willingness to learn, London can achieve anything.
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Two souls, one hea one filthy expen engagement ri 70
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eart and nsive ing.
-Jennifer Morgan
February is a special month, some call it the month of love as Valentine’s Day is celebrated on the 14th.
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ing engaged or betrothed. The engagement ring represents a man’s desire and commitment to a woman, not to mention love and loyalty. Some believe that the engagement ring should have a diamond as the stone is one of the hardest gems available and indicates the strength and durability of the affection. Yet, also other precious and semiprecious stones are also used in designs of engagement rings, so your choice is not limited only to diamonds!
February is a special month, some call it the month of love as Valentine’s Day is celebrated on the 14th. When love is in the air, these individuals, who are crazily in love, decide to pop out the question: “Will you marry me?” And when it comes to an engagement ring, some do not want to make do with an average one! They aim high as their love is heavenly. Engagement rings have been known not from yesterday, in fact they have been known for centuries and they have been used as a sign and symbol of either be-
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If you are thinking about buying an engagement ring with another stone, it would be desirable to check the meaning that the gem can hold. And also engagement rings with other stones can also be unimaginably expensive. Someone once said: “Marriage requires a person to prepare 4 types of “Rings”: Engagement Ring, Wedding Ring, Suffering, Enduring.” The question remains whether you are ready to pop out the question with the ring that symbolizes a strong commitment to love and care for your beloved one. Do you not care about money as the world’s
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richest and most famous do not? Are you looking for something breathtaking? If the answer is “yes” and if you are looking for an inspiration just look down where you can find engagements rings which are believed to be the most expensive ones in the world.
Beyonce’ engagement worth $5 million
ring
The proud owner of the most expensive engagement ring is Beyonce. But that is not surprising taking into consideration who
gave it to her. Jay Z, who is known for his extravagancy, proposed to Beyonce with 18-carat flawless diamond ring designed by Lorraine Schwartz. The ring is valued at substantial $5 million and is said to be one of the world’s most expensive engagement rings. The ring was presented to the public in September 2008, a few months after the famous couple of world-known musicians got married. Certainly, the unique diamond makes it so expensive especially as it is set onto a platinum split shank! Jay
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Z decided even to make a $5,000 copy of the Beyonce’s engagement ring so it could be used by his spouse while performing on stage.
Paris Hilton’s engagement ring worth $4.7 million Even though Paris Hilton was the owner of the world’s second most expensive engagement ring, her example shows that the ring might not always lead to the marriage. She
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was gifted the 24-carat Emerald cut diamond engagement ring by her then Greek boyfriend Latsis. Without a doubt, Paris Hilton is either loved or hated. But she surely knows what she is worth. And it seems that so did Latsis at the time. The engagement ring unfortunately did not lead to “happily ever after”, but at least after all it was auctioned off for charity, she used it for a good cause. Paris Hilton used to say that her hand hurt from wearing the impressively massive engagement
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which he gave to his girlfriend Melania Knauss who happens to be his third wife. At the time of the proposal, the Melania Knauss’ ring was said to be the most expensive with a price tag of $2 million - $3 million until 2005 when Paris Hilton got hers.
Donald Trump would not have popped out the question without something special, he would not have scraped the bottom of the barrel. Once the world’s most expensive engagement ring is made of the diamond embedded in a platinum basket setting with channel set tapered baguettes flanking each side… Yeh, Donald Trump would not have popped out the question without something special, he would not have scraped the bottom of the barrel.
Jacqueline Kennedy’s engagement ring worth $2.6 million
ring. So you should consider whether the big diamond is something what your beloved one wants.
Melania Knauss’s engagement ring worth $2 - $3 million Donald Trump, real estate mogul, does not have to be ashamed of the 15-carat classic Emerald cut diamond engagement ring
Jacqueline Kennedy is said to have been a fashion and style icon. Even today she is much respected for her own individual style which was also appreciated by her partner, Greek shipping Magnate Aristotle Onassis. He popped out the question with the 40.42-carat diamond Lesotho III ring which was designed by Harry Winston. The Jacqueline’s gem is one of only 18 diamonds cut from the legendary 601-carat rough Lesotho diamond discovered in 1967 in Lesotho in South Africa. The engagement ring was auctioned off in New York for as much as $2.6 million in 1996, topping analysts’ estimates of $500,000 to $600,000. Jacqueline was said to have worn the ring only two times.
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But it was not the only very much expensive engagement ring which she was given. Also her first husband, later the president of the United States, John F. Kennedy spent approximately $1,5 million on the ring for his Jacqueline.
Elizabeth Taylor’s engagement ring worth $2.5 to 3.6 million (estimated) sold for
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$8,818,500 Elizabeth Taylor’s once said: “My mother says I didn’t open my eyes for eight days after I was born. But when I did, the first thing I saw was an engagement ring. I was hooked.” And something must have been in that statement as Elizabeth Taylor, the icon of the film, went down the aisle several times and had many engagement rings. But the most expensive one she got
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from Richard Burton who was the biggest love in her live and twice her husband. The 33.19-carat diamond ring was auctioned off in New York in December 2013 and bought by a private buyer from Asia for as much as $8,818,500. So the new owner is a proud owner of the ring, yet will s/he use it as an engagement ring? Apart from having loved engagement rings, she also loved jewelry. Sometimes her taste was named strange, eccentric and weird, yet as old Latin saying notes: “De gustibus non est disputandum” – “In matters of
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taste, there can be no disputes.”
The question – the ring If you are not inspired by all above engagement rings of rich and beautiful, you might also check out rings that are owned by Jennifer Lo, Kim Kardishan, Catherine Zeta Jones, Mariah Carey, Camilla ParkerBowles, Kate Middleton and others. If are still not moved and you haven’t found anything special at the jewelry, then you can think about designing an engagement ring for your beloved one as Brad Pitt did.
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Remember that you do not have to stick only to white diamonds which are popular. You have a whole color palette. And what is more, blue and pink diamonds are the most expensive ones. And certainly the diamonds are the girl’s best friends but keep in mind that you do not have to hold on like grim death to diamonds as there are so many other gems. You can let yourself design or buy something more extravagant and you will not
regret it. You may always look for an enagagemnt ring at auctions as there are so many incredibly expensive daises which once were owned and worn by the most influential people on Earth. Remember one thing, that women are said to love shining and expensive gemstones on their fingers, however every woman is different, thus deciding what you want to buy, think about her and her taste and likings. Good luck!
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AstraZe
Health Conne
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eneca
ects us all - Richard Meryn
AstraZeneca plc is a British-Swedish multinational pharmaceutical and biologics company headquartered in London, United Kingdom. Industry Leaders Magazine
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AstraZeneca plc is a British-Swedish multinational pharmaceutical and biologics company headquartered in London, United Kingdom. It is the world’s fifth-largest pharmaceutical company measured by 2009 prescription drug sales following after Pfizer, Novartis, Sanofi, and GlaxoSmithKline.
They have operations in over 100 countries. It has a portfolio of products for major disease areas including cancer, cardiovascular, gastrointestinal, infection, neuroscience, respiratory and inflammation. The company was founded in 1999 through the merger of the Sweden-based Astra AB and the UKbased Zeneca Group.
It has a portfolio of products for major disease areas including cancer, cardiovascular, gastrointestinal, infection, neuroscience, respiratory and inflammation.
Touching lives
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For patients and physicians, AstraZeneca provides medicines for some of the world’s most serious diseases. For the people who pay for healthcare, they work to make sure that their medicines offer real value for money. For their employees, they provide a culture in which they can feel appreciated, energised and rewarded for their contribu-
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tion. For their shareholders, they aim to deliver value through their continued focus on innovation and running their business efficiently. For the wider community, they want to be valued for the contribution their medicines can make to society and trusted for the way in which they do business. They work closely with all our stakeholders to understand their challenges and how they can combine their skills and resources to achieve a common goal: improved health.
Global, innovation-driven and integrated Their mission is to make a meaningful dif-
ference to patient health through great medicines that bring benefit for patients and add value for their stakeholders and society. They discover, develop, manufacture and market prescription medicines for six important areas of healthcare, which include some of the world’s most serious illnesses: cancer, cardiovascular, gastrointestinal, infection, neuroscience, and respiratory and inflammation. AstraZeneca has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £39.5 billion as of Dec 2011, the tenth-largest of any company with a primary listing on the Lon-
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don Stock Exchange. It has secondary listings on the New York Stock Exchange and the OMX exchange. AstraZeneca is a global, innovation-driven, integrated biopharmaceutical company. They discover, develop, manufacture and market prescription medicines for six important areas of healthcare, which include some of the world’s most serious illnesses: cancer, cardiovascular, gastrointestinal, infection, neuroscience, and respiratory and inflammation. We employ around 57,200 people (46% in Europe, 31% in the Americas and 23% in Asia-Pacific).
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The People They want their people to feel positive and enthusiastic about what they are doing, with a clear sense of purpose and confidence in their ability to meet the challenges. This means providing them with effective leadership, clear targets, open lines of communication, excellent learning and development opportunities and a healthy, safe and energizing workplace – within a performance culture in which diversity is valued and individual success depends solely on personal merit and performance.
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Setting Goals A key priority of their people strategy is the continued development of a performance culture across the organization. By strengthening their focus on setting high quality objectives aligned to their business strategy, they will ensure that performance at all levels of the organization delivers value. The AstraZeneca Board is responsible for setting their high-level strategic objectives and monitoring performance against these. Managers across AstraZeneca are accountable for working with their teams to develop individual and team performance
targets and for ensuring that people understand how they contribute to overall business objectives.
Developing Talent They encourage and support their people in achieving their full potential by providing a range of learning and development (L&D) programmes designed to build the capabilities and encourage the behaviors needed to deliver their business strategy. They are implementing a global approach, supported by the creation of their global talent and development organization, to ensure that high standards of L&D practice are applied across the organization.
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Diversity and Engagement Valuing and promoting diversity is not a new commitment for AstraZeneca – but they know there is more to do to make sure that diversity, in its broadest sense, is appropriately represented in their leadership, workforce and thinking. The diverse cultures, backgrounds, skills and experience of their global workforce bring great crea-
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tive strength and energy to their business and have a critical role to play in achieving strategic objectives. AstraZeneca has long been committed to fostering a culture of respect, fairness and equal opportunity but as they continue to re-shape their organization and their geographic footprint, they know there is more they can do to make sure that diversity is appropriately integrated into people strategies.
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They have a Global Steering Group of senior leaders from across the business, established in 2010 and chaired by their CEO. The Group has agreed a set of actions to support a more actively inclusive culture, with the focus on driving change in key areas identified by their research: leadership and management capability, transparency in talent management and career progression, and the challenges of work-life balance.
Pascal Soriot Pascal Soriot, a 53 year old French National joined AstraZeneca from Roche AG where he served as Chief Operating Officer of the company’s pharmaceuticals division since 2010. Prior to that Pascal was Chief Executive Officer of Genentech, where he was credited with leading the successful merger between the San Francisco-based biologics business and Roche. Pascal joined the pharmaceutical industry in 1986 and has worked in senior management roles in the US, Asia
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and Europe. They know that open lines of communication are critical to in helping their people to engage with their business strategy and understand their role in achieving AstraZeneca’s goals. They use a variety of global leadership communications channels and local leaders and managers hold regular meetings with their teams. They also use the intranet, video conferencing and Yammer (a social media tool) to encourage dialogue. In addition, their Code of Conduct outlines the procedures for employees to
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raise integrity concerns, including a confidential helpline.
Contribution to the Community Wherever AstraZeneca is located worldwide, they aim to make a positive contribution to their local communities through sponsorships, partnerships, charitable donations and other initiatives that help to make a difference. Backed by their Global
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Community Support Policy, their activities around the world are focused on bringing sustainable benefit in ways that are consistent with the business of improving health and quality of life. Their contribution to better health is founded on the research and development of innovative medicines, so they also look at ways in which they can promote the value of science among young people and encourage the scientists of the future. Despite major advances in healthcare in previous decades there are still ma-
jor unmet medical needs they need to conquer. They know where their expertise lies and where there is the biggest need for innovative health solutions. By focusing their own efforts, and working with their partners and stakeholders, they hope to make significant progress in the discovery and development of medicines in six key areas: Cancer, Infection, Cardiovascular diseases, Gastrointestinal, Neuroscience and Respiratory & Inflammation.
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ENERGY 2nd Annual Enhanced Oil Recovery and Heavy Oil Conference Date: 27 - 28 March, 2013 EOR is becoming more important in the Middle East, due to increasing maturity of some fields; to higher oil prices which make EOR techniques more economic; to improvements in EOR technology from recent experience, such as in chemical EOR, or steam-flooding; and from the environmental driver to reduce CO2 emissions. However, it is still relatively early days, and there is a lot to be learnt about how to apply EOR techniques mostly effectively in the Middle East context, for instance to carbonate reservoirs, and deep high-salinity reservoirs” - Robin Mills, Head of Consulting at Manaar Energy - Dubai, and author of ‘The Myth of the Oil Crisis’ and ‘Capturing Carbon’. Venue: Abu Dhabi, United Arab Emirate. Save Power Date: 02 - 04 March, 2013 Save Power is an event that contributes significantly in shaping the future of Kerala with the help of green energy and help the sector to develop in the region. This three day event is organized by AOJ Media Pvt Ltd. Venue: Cochin, India. Russia Power Date: 05 - 06 March, 2013 Russia Power will enhance awareness of the strategic and technological changes that will enable industry professionals to react quickly and be successful. The marketing theme is Changed, Modernization and Growth these three factors will undoubtedly drive Russias future power industry. Venue: Moscow, Russia. HVAC Vietnam Date: 05 - 07 March, 2013 HVAC Vietnam in its 7th staging is the Vietnam’s most established premier international exhibition on Heating, Ventilation, Air-Conditioning, Refrigeration, Air-Filtration & Purification Systems. This leading international event provides the most ideal marketplace for international manufacturers and Supplier of the HVAC industry to launch new products, reach out to buyers, appoint agents & distributors and establish business networks in Vietnam’s booming economy. Venue: Ho Chi Minh City, Vietnam. International Battery Expo & Recycling Conference
Date: 05 - 07 March, 2013
IBRX India - 2013 will bring together from world over leading battery manufacturers interested in technology and business cooperation, battery equipment and component manufacturers, experts in Waste Management and in Environmentally Sound Technologies for Recycling of Batteries, Recycling equipment manufacturers and Recyclers. Venue: Goa, India.
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Industry Leaders Magazine
MANUFACTURING
Sustainable in Manufacturing Orlando
Date: 06 - 07 March, 2013
Sustainable in Manufacturing Orlando is touted as one of the premier in featuring of one of the largest advanced design and manufacturing event that will take place in Orlando, in the southern United States. Venue: Orlando, United States Of America. Expo-Russia Jordan
Date: 12 - 14 March, 2013
Expo-Russia Jordon will be organized on March 12-14, 2013. This exhibition will provide its exhibitors a great opportunity to learn and promote their products, services, ideas and achievements locally in Jordan, regionally in the Middle East and internationally in the Russian Federation. Venue: Amman, Jordan. Almaty International Protection, Security, Rescue and Fire Safety Exhibition Date: 13 - 15 March, 2013 AIPS 2013 will provide the exhibitors with a unique opportunity to introduce corporation and the products in the global market, which manufactures security equipment while dealing with the needs of consumers. Venue: Almaty, Kazakhstan. Safety in Action Date: 19 - 21 March, 2013 The Safety in Action is now Australia’s Largest trade show bringing you the latest in workplace health and safety products and services, featuring over 250 manufacturers and suppliers. The Safety in Action is expected to double in size this May with over 300 companies already booked to exhibit at Melbourne Exhibition Centre. Venue: Melbourne, Australia. Central China (Zhengzhou) International Equipment Manufacturing Exposition Date: 28 - 31 March, 2013 Central China Zhengzhou International Equipment Manufacturing Exposition will take place in Zhengzhou, China for four consecutive days. Automation and control, robotics, electronic application systems, instrumentation and equipment manufacturing information solutions will be given prime importance in this event and will make this event more popular among the industry leaders and technical and professional experts related to industrial equipment manufacturing industry. Venue: Zhengzhou, China.
Industry Leaders Magazine
Feb 2013
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CONSTRUCTION
Worldbex
Date: 13 – 17 March, 2013
Worldbex is one of the most eagerly anticipated construction sector trade shows in Philippines. The event is billed as the largest business show of its kind in Asia and brings in more than 800 exhibiting companies at each of its editions. The show registers high overall participation figures and visitors can find different varieties of building materials, electrical engineering tools, IT and telecom equipments, interior design themes, real estate services and home renovation systems that are displayed here. Highly informative seminar sessions, helmed by noted domestic as well as foreign industry speakers, are held during the event, while eminent representatives from international embassies are also present here. The unique business matching opportunities that are available at the show raises the overall corporate worth of the event further. More than 108000 visitors take part in the show. Venue: Manila, Philippines. National Construction
Date: 01 - 03 March, 2013
National Construction Exhibition offers a comprehensive range of construction and building equipments and is known as the largest and the most recommended one. The exhibitors targets the architects, designers, retailers, local authorities and others who get an opportunity to interact with the experts and get into business dealings with them. Venue: Magdeburg, Germany. Caribbean Hardware & Construction Trade Show
Date: 01 - 03 March, 2013
Caribbean Hardware and Construction Trade Show is stated to be the largest hardware and construction show in the regions of Puerto Rico and the Caribbean Islands. This event draws 4, 500 visitors who make purchases that exceed 25 million dollars and therefore is an event that the exhibitors cannot afford to miss. Venue: San Juan, United States Of America. Saudi International Building & Construction Exhibition Date: 03 - 06 March, 2013 Buildex Saudi Arabia offers exhibitors a forum to showcase their range of professional products and services to the thousands of trade visitors expected to attend the exhibition from the Middle East, segmented into three parts, BUILDEX features the following: BUILDEX, Building Construction, Interior Design and Maintenance Exhibition, AIRVEX, Air conditioning, Refrigeration and Ventilation Exhibition, ENERGEX, Power Generation, Electrical and Electronics Engineering Exhibition. Venue: Dammam, Saudi Arabia. Architecture+Construction Materials
Date: 05 - 08 March, 2013
Architecture+Construction Materials features construction materials for commercial buildings, cultural and public facilities as well as homes and office buildings. The exhibits also include related equipment, building techniques, tools and software. Venue: Tokyo, Japan.
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Feb 2013
Industry Leaders Magazine
SUPPLY CHAIN
LatAm Rail Opportunities 2013
Date: 05-06 March, 2013
LatAm rail opportunities 2013 will explore the opportunities available in the region; the major issues and probable solutions to the concerns facing the industry. The platform will be used to share best practices in the industry and the latest innovations in rail technology. We bring together experts fromlLeading rail, associations, operators, supplier companies to make the conference, an interactive and knowledge sharing platform by discussing vital case studies and holding brain storming sessions that the attendees at large could gain from. Venue: Sao Paulo, Brasil. Transport & Logistic-Bulgaria
Date: 06 - 09 March, 2013
Transport & Logistic-Bulgaria offers a comprehensive range of sponsorship and exhibition packages to suit your sales and marketing goals. It is the most important presentation of transport and logistics in Bulgaria. Venue: Sofia, Bulgaria. The Marvac Battle Creek Camper and RV Show
Date: 07 - 10 March, 2013
Battle Creek Camper and RV Show will feature a collection of new models pop up camper, travel trailer, truck camper, wheel trailer, conversion vans, motor home and custom motor coach. There will also be specialists and travelers giving information about the best locations for camping and the essential camping tools and equipments required. Venue: Battle Creek, United States Of America. Iwla Convention & Expo Date: 10 - 12 March, 2013 wla Convention & Expo is going to be held at Orlando for a period of three consecutive days. The main aim of this event is to help its members create more profitable third-party logistics companies. It is going to create a big platform for both the exhibitors and visitors to gather at one place and share their important views and opinions with each other. Venue: Orlando, United States Of America. TMC Meeting & Transportation Technology Exhibition Date: 11 - 14 March, 2013 TMC Meeting & Transportation Technology Exhibition is going to be an important event that will take place for a period of four consecutive days and the place is Nashville, Tenn. this event is going to feature a strong slate of educational sessions, plus trucking complete technology tradeshow. Venue: Nashville, United States Of America. Logistics
Date: 21 - 21 - 23 March, 2013
Logistics is considered to be a unique event where the participating exhibitors will display a wide range of logistics products, transport, logistics solutions and logistics services. This grand event will draw a large crowd of logistics professionals at the Fiere di Parma, Italy, since this event will display a number of innovative automotive technologies and high tech materials and machineries for business processing. Venue: Parma, Italy.
Industry Leaders Magazine
Feb 2013
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FOOD & BEVERAGES
New York Wine Expo Date: 01 - 03 March, 2013 For 3 days, New York Wine Expo will be hosted at premiere venue, Jacob K. Javits Convention Center, New York, USA. Being organized by Resource Plus Shows & Events, the show is directed towards tapping emerging opportunities of Agriculture sector. Venue: New York, United States Of America. Buon Vivere Date: 01 - 03 March, 2013 Buon Vivere is the ideal showcasing podium where the consumer groups will get to exhibit superior and assured range of processed food and beverage items. The event is reckoned to be one of the largest and hugely visited shows in the entire region as no other guarantees such quality of products. Venue: Piacenza, Italy. SweetTARG Date: 03 - 05 March, 2013 SweetTARG is the international exhibition for confectionery bakery and ice cream sector in Poland. The event will showcase all the products for related industries, where potential buyers and exhibitors can meet together. Venue: Katowice, Poland. Foodrex Date: 04 - 06 March, 2013 Foodrex is one of the leading food and drink trade fairs of Siberia. It is going to be held in Belgrade, Siberia for the period of four days and is organized by Duke and Peterson Ltd. Over 20,000 national and international visitors are expected to attend this trade fair and over many exhibitors who are mainly the specialized producers and multi product producers will be providing their valuable products and services. Venue: Belgrade, Serbia And Montenegro. Dairy Industry Date: 12 - 15 March, 2013 Dairy Industry, the unique specialized exhibition in Russia representing the newest technologies of reception of milk, its industrial processing, packing and realization ready dairy and milk-based products, and also certification of production, transportation, storage, cleaning, sanitary of industrial enterprises, specialized working clothes. Venue: Moscow, Russia. Wineries Unlimited Trade Show
Date: 13 - 14 March, 2013
Wineries Unlimited Trade Show is a good platform to launch, market, showcase, sell and promote the latest brands of wines industry in a market with a huge market potential. This exhibition will showcase a wide range products and services associated with wine manufacturing industry under one roof. Venue: Richmond, United States Of America.
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Industry Leaders Magazine