Saturday, March 9, 2013

Europe Looks To Take Advantage Of Growing Chinese Tourism


* 200 mln Chinese seen travelling abroad by 2020
* Europe should exploit Communist history
* Spain seeks slice of market
By Victoria Bryan and Clare Kane
BERLIN/MADRID, March 7 (Reuters) - European countries will need to focus less on beach holidays and more on communist history, rolling landscapes and even poetic trees if they want to take advantage of growing numbers of tourists from China.
According to the China Tourism Academy, some 200 million Chinese could be travelling abroad annually by 2020, up from 82 million in 2012.
While the overriding image of the Chinese tourist in Europe is one of busloads of shoppers heading for the luxury boutiques in Paris and Milan, Europe must not get carried away by these stereotypes and think of other ways to tempt them on a long-haul flight, experts at the ITB travel fair in Berlin said.
"We're been thinking not like Chinese, but like Europeans," Eduardo Santander, the head of the European Travel Commission, which promotes tourism to the continent, told Reuters.
"Europe is still the number 1 tourism destination so far but that may dramatically change in 10 to 15 years if we don't change some patterns."
For Chinese tourists, the sun and beaches of the Mediterranean that are so popular with Brits, Germans and Russians hold little appeal, said TUI Travel CEO Peter Long.
Instead they want to visit places that hold historical relevance for their own culture, they enjoy classical music and, wanting to escape the smog back home, they appreciate a clear blue sky, Santander said, citing a study the group had done among Chinese web users.
Interesting places for Chinese travellers looking to explore Communist history include the German city of Trier, the birthplace of Karl Marx and Montargis, a little-known town 60 miles south of Paris.
Chinese history lovers are keen to visit Montargis because it was the home of Deng Xiaoping during the 1920s and said to be the place where a group of Chinese students first proposed the idea of a communist party for China.
Furthermore, if you see groups of Chinese people admiring a willow tree at King's College, Cambridge, it is because it is mentioned in a much-loved modern poem 'On Leaving Cambridge' by Xu Zhimo.

SPANISH DREAMS
With the euro zone crisis and austerity measures crimping travel budgets in Europe, it has become all the more urgent for countries like Spain and Greece to look outside their traditional British, Dutch and German source markets for income.
In Europe demand for cross-border travel is due to rise by only 2 percent in 2013, compared with 7 percent for Asia.
In Spain, where tourism accounts for 11 percent of gross domestic product, 57.7 million tourists visited in 2012. But arrivals from Britain, the country's biggest source market with close to a quarter of the total number of visitors, were flat.
"The British and the Germans are not getting richer... and the times of flying for 10 pounds from London to Spain are ending," Wolfgang Georg Arlt of Chinese tourism research institute COTRI said.
Spain has therefore set a target of reaching 1 million Chinese visitors a year by 2020, up from 177,100 in 2012, a goal described by Arlt as a tall order.
Shao Qiwei, chairman of China's National Tourism Administration, said Spain must also overcome the language barrier to attract more Chinese tourists and adapt dishes to their tastes.
"We are hoping for more Chinese tour guides in museums and tourist sites and to see Chinese television in Spanish hotels," Shao said at a UNWTO event in Madrid.

PILGRIMAGE
It's not easy to adapt though and the ETC's Santander said his organisation would try to ensure all parts of the tourism chain, from taxi drivers to tour guides and luxury hotel owners were educated on Chinese travel wishes and customs.
Spain has even already put on some bullfights where the bull was not killed at the end, to appease Chinese tourists who do not like blood.
Tour company Marly Camino, which offers high-end walking packages on the Way of St. James, a pilgrimage route to a cathedral in northern Spain, has seen an increase in enquiries from Asian tourists from Singapore and the Philippines, but said there was only one official Chinese-speaking tour guide in the region.
"There's the cultural barrier too, the etiquette is a little different. If we're going to be receiving that kind of client we want to be in the loop with how you treat that kind of client and what they expect," said co-director Samantha Sacchi Muci.
Marly Camino therefore plans to create packages for Chinese agencies to directly market to tourists to side-step the language barrier, saying it needs such agencies as an intermediary to help crack the market.
Tourism watchers at the ITB in Berlin said Europe's beach resorts could follow the example of the Maldives, among the top five most popular destinations for Chinese tourists.
The islands made a conscious effort to attract arrivals from sun-wary China with island hopping tours, night fishing and snorkelling when arrivals from Europe collapsed after the deadly Indian Ocean tsunami in 2004.
"Forty years ago, when Germans and Brits first started coming to Spain and Greece, they were a strange race too," said Martin Buck, who helps organise the ITB, the world's largest travel and tourism fair.
"But Spain and Greece used the chance to make those visitors into an important pillar of their economies. Why shouldn't they do the same with the Chinese?"

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Source: http://www.huffingtonpost.com/2013/03/08/europe-chinese-tourism_n_2832241.html

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Federal workers brace for furloughs

WASHINGTON (AP) ? First there was a two-year pay freeze. Now furloughs loom, as federal agencies make personnel costs a prime target for across-the-board budget cuts that went into effect last week. The result: anxiety and low morale in a workforce often envied for its job security.

"It would certainly put a strain on things," said Jonathan Schweizer, 61, an environmental engineer at the Environmental Protection Agency in Chicago who could be forced to take up to 13 days of unpaid leave this year. "I'd probably have to run up some credit card debt or defer maintenance on my home that I'd otherwise consider important."

Government agencies vary widely in how they are dealing with the "sequester," as the automatic cuts are called, according to labor unions that represent federal workers. Federal workers could face seven days of furloughs at the Housing and Urban Development Department, while Homeland Security personnel might see twice that number.

More than half of the nation's 2.1 million federal workers could be furloughed over the next six months. The federal government is the country's single largest employer, with its employees making up about 1.2 percent of the nation's work force.

"A lot of people think federal employees are fat-cat bureaucrats in Washington, but they don't realize more than 85 percent of these workers live outside of D.C.," said Tim Kauffman, spokesman for the American Federation of Government Employees. "A lot of them are not highly paid folks, like VA nurses and emergency response workers."

AFGE, which represents more than 600,000 federal workers, is trying to keep track of all the different furlough plans as their members face the prospect of lost wages during mandatory time off without pay and growing frustration about getting work done.

It seems the federal workforce is under constant attack these days, particularly from Republican lawmakers who want to shrink government and contend federal employees are overpaid with more generous benefits compared to the private sector. Even President Barack Obama supported the pay freeze, though he has issued an executive order that will give workers a 0.5 percent cost-of-living raise set for April. Still, Congress could take action that prevents the raise from happening.

The latest unemployment numbers offered even more bad news for government workers as federal employment, excluding the U.S. Postal Service, shrank by 4,200 jobs last month. That's the fifth straight month of cuts, which may reflect a trend towards greater belt-tightening.

Schweizer conceded that working for the federal government remains a lot more stable than other industries, but he said the comfort level has changed.

"We've definitely been squeezed financially," he said. "People have left and haven't been replaced. That puts more pressure on us as far as getting the job done and it certainly hurts morale in my office."

Some agencies, including the Justice Department, already have sent out formal furlough notices to workers indicating furloughs of up to 14 days could begin as soon as April. All furloughs are subject to 30-day notices and to bargaining with unions representing government workers.

While the unions can't stop the furloughs, they can try to ease the pain for employees by negotiating different times, allowing employees to swap days, or other changes. Unions are also trying to persuade agencies to make other cuts that don't affect worker pay, such as cutting government contracts with private companies.

The Social Security Administration, for example, says it hopes to avoid furloughs altogether, instead saving money by terminating more than 1,500 temporary and other workers and losing more than 5,000 other positions through attrition.

"In some cases, the agencies can figure out ways to slow down federal contracts instead of taking it out of federal personnel," said Patrick Lester, director of fiscal policy for the Center for Effective Government.

But there are limits on flexibility. "If they are largely personnel-driven, there's no way to avoid personnel-related cuts," Lester said.

Meat and poultry inspectors at the Agriculture Department initially were told they might be furloughed for 11 consecutive days between June and July, possibly leading to a meat supply shortage and higher prices. But Agriculture Secretary Tom Vilsack backed away from that at a House hearing this week, telling lawmakers that the furloughs would not be consecutive after all.

"Furloughs are going to cause disruption," department spokeswoman Courtney Rowe said Wednesday. "We're looking to do it in ways that cause the minimum impact."

At the EPA, officials are planning up to 13 furlough days, with the first four coming between April and June 1, said John O'Grady, president of AFGE local 704. There also would be mandatory furlough days on May 24, July 5 and Aug. 30 ? coming around the Memorial Day, July Fourth and Labor Day holidays ? that would shut the agency entirely, he said.

Some of the longest furloughs are expected at the Defense Department, where about 800,000 civilian employees face up to 22 unpaid days off over the next several months. The agency has not yet specified when those will happen, but some agencies may try to put off furloughs for several months in hopes that Congress will come up with a budget fix.

More flexibility could be coming soon. A House measure passed Wednesday that prevents a shutdown of federal agencies on March 27 also would grant the Pentagon greater latitude in implementing its share of short-term spending cuts. Senate Democrats could try to expand that flexibility to other agencies, potentially reducing the number of workers who are furloughed.

Sen. Roy Blunt, R-Mo., said he plans to introduce legislation that would allow the Obama administration to exempt from furloughs essential federal employees, such as those who perform food inspections and other urgent functions, so the consequences of the budget cuts would not harm the economy or public safety.

Border Patrol agents at the Homeland Security Department, for example, face up to 14 days of furloughs and a moratorium on regular overtime pay, which could mean a 35 percent decline in wages for the rest of the fiscal year. Union officials warn that could mean trouble for border security, as agents aren't used to stopping work just because their shifts end, especially if they are chasing drug or gun smugglers.

___

Follow Sam Hananel on Twitter: http://twitter.com/SamHananelAP

___

Associated Press Writer Christopher S. Rugaber contributed to this report.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2013-03-08-Budget%20Battle-Furloughs/id-65aa17b7834949959c653a8650a1f1f6

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Facebook adds University of Calif chief to board

(AP) ? Facebook says the chancellor of the University of California at San Francisco, Susan Desmond-Hellmann, will join its board of directors.

She will be the second woman elected to the Menlo Park, Calif., company's board, joining Facebook's No. 2 executive, Sheryl Sandberg. The company named Sandberg to the body last June after criticism that its directors were all men.

Before serving as chancellor, Desmond-Hellmann was an executive at biotechnology drugmaker Genentech, which markets some of the best-selling cancer drugs in the world. She is a doctor with a specialty in treating cancer.

Facebook Inc.'s board also includes Netflix Inc. chief Reed Hastings, entrepreneurs Marc Andreessen and Peter Thiel, and Washington Post Co. CEO Donald Graham. Facebook CEO and founder Mark Zuckerberg is chairman of the board, which now has nine members.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/495d344a0d10421e9baa8ee77029cfbd/Article_2013-03-06-US-Facebook-Board-of-Directors/id-94ee2a32487d4a6f87915bed665f0655

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The Hidden Cost of Business as Usual - CRM Magazine


To hit end-of-quarter sales targets, many companies oversweeten deals and overextend promotions. The result? Orders explode in the last few weeks of the quarter and sales quotas are met. Good news, right?

Although many companies make up to half of their revenue this way, this strategy is likely costing businesses more than they imagine. Rush orders on raw materials, workforce overtime, large inventory fluctuations, and expedited delivery charges are just a few of the unavoidable consequences, resulting in margin erosion.

This model, dubbed the "sales hockey stick," has unfortunately all too often become deeply embedded in sales cultures, leading to an increasingly unstable way to do business.

Managing on the brink

Volatility in the market is exacerbating the hockey stick at the same time that profits are thinning and supply chains and channel structures are growing more complex. It has become harder to forecast demand, which makes sales targets less likely to be realistic.

In response, sales organizations and senior managers are pushing harder to make their numbers, increasing the force of the margin erosion vortex in which they are caught. There are no more periods of normality to reset, and the lack of predictability is reducing companies' ability to plan and make strong investment decisions.

In this environment, companies are recognizing the hockey stick as a multiplier of instability that they can ill afford. They are no longer willing to accept it as a normal way of doing business.

We have noticed that sales management, culture, sales compensation, and the overall way in which businesses are run quarterly together create the natural rhythm of the hockey stick.

Potential causes of the hockey stick effect

Channel incentives. One-time deals can become a recurring phenomenon. When that happens, a significant mismatch can occur between actual market demand and shipments to distributors.

Product quality. When a new product has quality issues, many companies are tempted to provide incentives to boost demand. Further, the drop in sales of a new product may trigger an unexpected spike in demand for existing products.

Sales compensation. The quarterly cadence of compensation calculations and payouts can encourage the sales force to offer whatever discounts are necessary to make their numbers. Even when payouts are made monthly, many sales organizations still measure on a prorated basis rather than using granular monthly targets.

Sales operations and deal management processes. These processes are often not considered in a hockey stick analysis. Yet the lack of real-time visibility into the channel and into the demand for specific products makes it harder to keep track of the different factors that can drive hockey stick spikes. Further, lack of visibility hobbles business planning and investment decision-making.

Culture. Pressure from Wall Street on quarterly earnings percolates down to the sales force. Whenever companies recognize performance based on quarterly goals, they encourage behaviors that can lead to lumpy sales.

Controlling the hockey stick

Companies can take three steps to increase predictability of sales throughout the quarter.

First, explore root causes to identify exacerbating factors that are making the hockey stick more pronounced (as mentioned above). Then determine the degree to which the hockey stick is affecting your business: Are there temporal events? Where are they? What is driving those events? How much do they cost?

Second, decide whether to invest in flattening the hockey stick as well as how much to invest. The problem exists in all industries, though it can be more damaging for companies with physical supply chains, many SKUs, and complex channels or routes to market.

Third, develop a prioritized plan, based on the root causes identified and the benefits desired. Examples of potential strategies include:

  • Breaking the cycle of always providing promotions at the end of the quarter. Show the market that you are serious about spreading out sales. Provide occasional incentives during other parts of the quarter. Incentivize channels to purchase earlier in the quarter or to provide you with longer lead times.
  • Optimizing S&OP processes. Gain better knowledge of your customers' and channel partners' purchasing plans. Use your sales and operations process (S&OP) to manage lumpy, inconsistent demand. Provide discounts rationally, such as primarily on products with high margins.
  • Gaining visibility into the sales channel. Implement processes and select tools for this purpose. After all, what you do not measure you will not fix. And figure out why end customers buy your products rather than those of your competitors.
  • Looking at the entire value chain. For channels, explore the relationships between sales to distributors, distributor sales to end customers, and distributors' inventory. Good sales pipeline and distributor management processes integrate such capabilities and enable companies to stay on top of emerging marketplace trends.
  • Changing sales compensation plans. Set up a plan that combines quarterly goals as well as linearity. Make sales-out a bigger portion of the compensation plan. Calculate and pay out monthly rather than at the end of the quarter.

Taylor White and Phil Wong are principals at PricewaterhouseCoopers LLP. Taylor White leads global commercial (sales and marketing) excellence programs. Phil Wong leads PricewaterhouseCoopers' customer-centered strategy team for the technology sector and works with many high-tech companies in tackling strategic and execution issues related to their customer-facing functions, and in improving overall customer experience and success. Sudhar Govindarajan, a manager at PricewaterhouseCoopers, is focused on operational strategy, sales and channel effectiveness, and product development.


Source: http://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/The-Hidden-Cost-of-Business-as-Usual-88106.aspx

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Mont. man kills Sportsman Channel host, then self

(AP) ? Police in northwestern Montana say a man shot and killed the host of the Sportsman Channel show "A Rifleman's Journal" while the TV personality was visiting the shooter's wife.

Whitefish police say 41-year-old Wayne Bengston then beat his wife, took his 2-year-old son to a relative's house, and drove to his home in West Glacier where he apparently killed himself.

Police identified the shooting victim as 43-year-old Gregory G. Rodriguez of Sugar Land, Texas. Besides appearing on TV, he's the CEO of Global Adventure Outfitters.

Bengston's wife told police that Rodriguez was in town on business and visiting her at her mother's house when her husband showed up Thursday night.

It wasn't clear how Rodriguez and the woman were acquainted. Police plan to hold a news conference Friday afternoon.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/4e67281c3f754d0696fbfdee0f3f1469/Article_2013-03-08-Whitefish%20Shooting/id-0f8bf406a56a471d95b1f010adfe5343

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Friday, March 8, 2013

Motorola workforce to drop by 10 percent, cuts being made in US, China and India

Google's Motorola unit seems to be facing some hard times -- according to an email acquired by the Wall Street Journal, up to ten percent of the division's workforce is facing layoffs. "While we're very optimistic about the new products in our pipeline, we still face challenges," explained the email. High costs and losses in competitive markets are forcing the company to make staffing cuts. "These cuts are a continuation of the reductions we announced last summer," a spokesman told the WSJ. "It's obviously very hard for the employees concerned and we're committed to helping them through this difficult transition. Much like the company's August staff reduction, the new layoffs will effect workers in China, India and the US, reducing the team by about 1,200 employees overall. It's a rocky start to the season, but one the company deems necessary to get it through the next generation of mobile devices. Hopefully it has something in store with enough "wow" factor to stave off future cuts.

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Source: Wall Street Journal

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China calls on Japan, US, EU to avoid devaluation

(AP) ? China's commerce minister appealed Friday to other major governments to avoid suppressing the value of their currencies to boost exports, warning that could hurt global growth.

Chen Deming was responding to a question at a news conference about the Japanese yen's weakness but said his appeal also was directed at the United States and Europe.

The yen has fallen by about 20 percent against the dollar since the middle of last year, prompting concern other governments might respond by driving down their currencies to keep exports competitive.

"I'm worried that 'competitive devaluation' will lead to oversupply of money and it will have a negative effect on global economic growth," Chen said.

The new Japanese prime minister, Shinzo Abe, has called publicly for a weaker yen to help exporters compete. His government has not directly intervened in currency markets but its policies have convinced traders it will create new money, eroding the Japanese currency's value.

Several developing economies also have criticized the U.S. Federal Reserve's program of bond-buying, dubbed quantitative easing, for pushing up the value of their currencies relative to the dollar.

Finance officials of the 20 biggest industrialized and developing countries issued a joint pledge Feb. 17 in Moscow to "refrain from competitive devaluation." They promised to "resist all forms of protectionism and keep our markets open."

Chen appealed to other governments to stick to their anti-devaluation pledge.

"If there were a huge devaluation of those major currencies, it would deliver a huge shock to developing countries by depressing our exports," he said.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-03-08-China-Currency%20Wars/id-ed5a86de422849b3a78eb6428cd8fe42

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