Qin Shi Huang vs Google Inc

Let's start with some history ...

More than two thousand years ago, Qin Shi Huang unified China, and became the first emperor of China. In between 213 to 206 BCE, he ordered burning of books, except those from his chancellor Li Si's school of thoughts. Hundreds of scholars were also buried alive. This incident is probably one of the earliest illustrations of how important it is to manage and control information and knowledge.

Now come back to 2009. Google Inc has a wonderful idea to scan and digitize books around the world to build a e-library online. This is exactly the opposite of what Qin Shi Huang did. In my opinion, this project matches that of Qin Shi Huang in terms of its scale and impact to the world, of course more towards the benefit of mankind in this case. Could you imagine any books at your fingertips? Could you imagine all knowledge being properly stored and managed generation after generation?

But of course, Google is still a profit-seeking entity, it does this for its own benefit. Just imagine when reading a book, all sorts of Google advertisements related to the content line up readily for you. That must be a cash cow for Google.

There are still a lot of legal and copyright issue to be addressed for the project to be successful. As a consumer, I wish Google all the best.

Pizza Hut pasta, anyone?

You must have watched the latest Pizza Hut advertisement. It is about a group of 80 diners tasting Pizza Hut pasta, without knowing it's from Pizza Hut. Many of them gave comments like, 'it is authentic', 'taste like that from xxx restaurant', etc.

Well, it is really a good idea by Pizza Hut to prove that their pasta is as good as any others, including those priced a few times higher.

Normally we would say that, well rental is a big part of the cost, so if you eat at a high class restaurant, obviously a big percentage of the price is towards paying the rental.

Let's look at it from demand side, and from a financial perspective. I believe many of us are aware of the term 'time value of money'. Basically what it means is that as money travels along the dimension of time, its value increases. In layman terms, money got to earn interest.

Now, think about it, what about 'money value of time'. As time travels across the dimension of money, does its value change? Put simply, at a particular point of time, does money change the value of that moment? Imagine you are in a romantic (and expensive) restaurant, would spending $30 for a plate of pasta makes you happy (value to you)? Or you rather just drink plain water and go for a $6 Pizza Hut pasta (proven just as tasty) later?

Acceptance of cash offer through ATM?

The acceptance level of SPC shareholders to the cash offer by China National Petroleum has exceeded 90%, so a delisting is unavoidable. I have therefore decided to accept their offer. Quite a pity, I thought, it was bought for the dividend. At the price I bought, the trailing yield is about 7%.

So I have to fill up the pink form and mail it out, it has to be received no later than 28/Aug. I am wondering, why can't the acceptance be performed through ATM? Afterall, we have IPO, right subscription, EPS done through ATM. The advantage is fast and reliable. Well, I don't mind they charge me $1 or $2 for this. What do you think?

Sports in shopping mall

I have not had the chance to visit the newly opened Ion Orchard yet.

Instead I went to JB last weekend. I was in its largest shopping mall, City Square, where I came across this most creative activity conducted in a shopping mall I have ever seen.

They had a volley ball competition in the shopping mall. For safety sake, they have nets covered up the place. And audience could watch the matches from almost 360 degree from near distance. It was a different experience compared to watching it in a stadium.

I think it was a smart move. The organizer of the match certainly had drawn a big crowd, and if their intent was to promote the sports, what other better ways? For the shopping mall, it gave the patrons a fresh experience other than the normal sales or food fair.

By the way I understand that GIC has a share in this shopping mall. Not sure if they participate in the management. But City Square is clearly a very successful mall in JB, and better than some of Singapore ones.

TheEdge 200709 - 7-11 Biz opportunity in Shanghai?

I gather these points in Sunita Sue Leng's article.

1. Taiwan has highest density of convience store, 1 for every 2500 people
2. President Chain Store Corp controls 52% of it, ie 4,810 outlets.
3. In Beijing, there are 75; In Guangzhou 512. Shanghai? 4.
4. Map of control for 7-11 in China, North: 7-11 Japan, South: Dairy Farm HK, East: President Chain Store.
5. President took 7 years and 100 stores to break even in Taiwan. It estimates to take 3-4 years and 250 stores to achieve break even in Shanghai.

It certainly looks like there is a big potential market, and an experience and determined franchisor. Doing a franchise 7-11 was one of the many business ideas I considered once, but I dropped it when I saw it almost every corner, and don't forget NTUC Cheers. Anyone interested in running the business in Shanghai may consider it. :)