Why start bgC3? Bill Gates' New Company

Bill Gates officially retired from Microsoft mid-year 2008, but then jumped ahead to build another one - bgC3 a.k.a. "Bill Gates Catalyst 3", earlier named Carillon Holdings. BgC3 is supposedly described as a "think tank," which includes "scientific and technological services", "industrial analysis and research", and "design and development of computer hardware and software". Others say it's a way of coordinating Gates's business and philanthropic work.


I think Bill Gates wants to focus on less grind work and more broad strokes, Nobel-worthy activity. I've met CEOs who dream of just thinking about what the company could be or could be doing in the next 3-5 or even 10 years without having to worry about the limitations of now, or the current problems (Vista) faced by the company's current image and processes.


No doubt, he wants to be free from actually worrying about how Microsoft runs while still being able to contribute to its success. It's always nice to be in the planning stage and not have to worry about the details. I guess that's the privilege of being a retired CEO

What Will Happen To Marketing In The Time Of Economic Crisis?

That question must be in the minds of a number of marketing professionals these days. What do we do with marketing now in times of economic crisis? Given the economic conditions brought about by the US recession, it's imperative we ask:

1. Do we shut down marketing?
   
2. Do we slowdown on marketing?

The answer to #1 is of course NO. Do not stop marketing. Research shows that retention is strengthened in consumers particularly when marketing is done during economic lows. Why is that? Because your company emanates an image of strength and tenacity during a time when everybody else seems weak and vulnerable.

I'm inclined to respond "no" to the 2nd question too, but of course there will have to be a consideration as to the company's budget and goals. I am not averse to cost cutting when it is done prudently. However, marketing is a very complicated thing - because you spend money to make money. You spend a dollar to get a hundred or maybe even more.

Although cutting marketing cost may end up having to be an option when the bottom line becomes thin, it is nevertheless not a wise move specially if your marketing campaigns are timely and targeted. Because even if the economy is down, your market may still be nudged into the right direction. Even if you decide to lower the marketing budget, always bear in mind the opportunity cost of returns that may not be gained.

One thing about marketing is that, if people are really not interested (or if your marketing campaign does not echo the right message) they will not respond to your advertising.

Bear in mind that marketing is an activity of resonance. Prospects will respond to your message if your marketing campaign is successful - meaningful and well-targeted. Regardless of the signs of the times, people will still spend for essential commodities like food and clothing. Although they might tighten their belts in terms of non-basic expenditure such as vacations, hobbies and maybe extra services that they can still live without at the moment, they might still part with their money if they perceive the value to be much higher than the actual money they shell out.

So capitalize on your products value, if consumers see the value and/ or quality of your product then for sure your marketing will be well worth the allocated budget.

Predictions on How the Philippine Economy will Suffer along with the rest of the World

It's a good thing the Philippines wasn't so advanced in the first place in terms of investment because if we had been, then the Philippines would also be in a pretty bad shape now.

The only reason the Philippine economy is still afloat is because the Philippines was too poor to invest its finances in the riskier financial institutions. Unfortunately the smarter more advanced economies thought that taking smaller more secure investments and reinvesting them into riskier investments made them a lot more money. Unfortunately, that didn't work out the way they planned it.

The Philippines will feel the ripple effect of the US economic slowdown. The impact will be felt first of course in the stock market as well as direct exposure. The latter is minimal while the stock market will hurt PSE among other things. And then in terms of incoming investments. The export industry will suffer - particularly those that service the US and Europe. Yes Europe is also in trouble as a result of the sub prime catastrophe. Iceland has already declared bankruptcy and I'm pretty sure that country was much better off than the Philippines. Both the US and the UK have put in place bailouts as sponsored by their governments. Let's hope they make it through this as well. Because we are all interconnected financially, the Philippines owing money to other countries, make it susceptible to these changes although not on our shores.

Nevertheless the living conditions won't be as bad as it has always been - prices will continue to be high, gasoline prices have at least has gone down because there is less demand for oil now as a result. Business that are dependent on tourism and incoming remuneration from abroad will be hit specifically.

If OFWs abroad will have a difficult time, the Philippine economy will be hit pretty bad although I doubt the the extent to which overseas Filipino income will be threatened any worse than an American or European.

The newspapers these days are just peppered with images of the stock market and how it has just crashed amidst the US economic trouble. The bail-out will take a few months or even years to take effect - as the primary issues now are that people are no longer comfortable with spending money, banks are no longer free to give as much credit as they used to. There is a lack of predictability as to what might happen to the stock market, everything being red now.

Some people are buying stocks while their dirt cheap while most are just unloading what seems like lost causes.

The world will be a lot wiser after this economic slum... if it will survive it