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jerryking : global_champions   8

Canada’s missed opportunity: Pot industry now being run out of the U.S.
JULY 3, 2019 | The Globe and Mail | by ANDREW WILLIS.

With Bruce Linton’s firing, it’s now all too clear that the biggest companies in Canadian cannabis are run out of New York and the state of Washington. An industry that this country seemed destined to lead when the federal Liberals legalized recreational cannabis last October 2018, is increasingly dominated by foreigners. ...... The opportunity to create global cannabis champions, based in Canada, appears to be vanishing. There should be a conversation around that issue, in political and business circles, before the biggest head offices all disappear... Linton ...lost his job because his visionary approach for Canopy Growth Corp. didn’t fit with the predictable, quarter-by-quarter profits demanded by Constellation Brands Inc....Linton’s departure is similar to what has played out at many startups that get sold to multinational companies. .....Even when we brought Constellation's $5-billion in, I knew, from that change of structure, there would likely be implications for management, but it was the right thing to do for the company.”... our entrepreneurs tend to sell successful startups at a relatively early stage, compared to jurisdictions such as the U.S. and Asia. . The trend, now happening even more rapidly in the cannabis sector, cuts into the potential future prosperity of this country......a study last year from the Washington-based Brookings Institution and the Martin Prosperity Institute at the University of Toronto’s Rotman School of Business – scaling up successful domestic businesses is essential to creating wealth and producing the next generation of corporate leaders. Canadians need to do better at turning their own companies into global champions. Silicon Valley generates enormous wealth out of a vibrant tech community. Why can’t Leamington, Ont., or Nanaimo, B.C., aspire to do the same in cannabis?..Canadian cannabis companies were created by government policy..... federal and provincial regulators granted the licences needed to grow and distribute their products – and local capital markets were receptive to financing them...CEOs, boards and domestic politicians should be asking if the country is best served by a laissez-faire approach to cannabis that created vibrant, valuable businesses following legalization in 2018, then quickly began handing over control of the sector....
Andrew_Willis  Bay_Street  Brookings  cannabis  Canopy_Growth  CEOs  Constellation_Brands  crossborder  departures  firings  global_champions  head_offices  home_grown  industrial_policies  Martin_Prosperity_Institute  missed_opportunities  sellout_culture 
july 2019 by jerryking
Investment fund makes $1-billion bet on owners who control their companies - The Globe and Mail
The Canadian Business Growth Fund

“Canadian entrepreneurs find it difficult to secure the funding they need to grow, while maintaining control of their business,” said Mr. Rossolatos, who started his own career as a private-equity investor at TorQuest Partners Inc., then ran tech company Avante Logixx Inc. for seven years. He said the new fund, created by the federal Liberal government but backed by the country’s largest financial institutions, will offer an alternative to traditional venture-capital and private-equity funds, which typically demand control of a company in exchange for their money.

“Our goal is to help entrepreneurs scale up their mid-market businesses as a patient, minority capital partner,” Mr. Rossolatos said. The growth fund formally opens its doors on Tuesday with a $545-million capital commitment from 13 Canadian banks and insurers, which have the option of increasing that backing to $1-billion if the concept proves to be a money maker. Mr. Rossolatos joined the fund in January and has spent the past five months setting up the business and hiring a team of a dozen investment professionals.

Backers expect the new fund will help solve what’s perceived to be a chronic problem for small to medium-sized Canadian companies: Owners sell control relatively early in the businesses’ development, and miss out on the opportunity to build regional or even global champions.
Andrew_Willis  owners  private_equity  privately_held_companies  mid-market  mid-sized  global_champions  CEOs 
june 2018 by jerryking
The decline and fall of Canada’s global corporate superstars - The Globe and Mail
Aug. 16 2013 | The Globe and Mail | Eric Reguly.

Here’s a depressing exercise: Scan the upper reaches of the Top 1000 companies in the July-August issue of Report on Business magazine and try to spot Canada’s global winners.

You could call them Canada’s corporate ambassadors, if they existed.

The short list is exceedingly short:
...Why does Canada, a Group of Seven country that encourages open markets, celebrates innovation and risk-taking, pumps fortunes into R&D, votes in business-friendly governments, is blessed with skilled workers and globally competitive tax rates and sits on the doorstep of the world’s largest market produce so pathetically few global corporate superstars?....It can take decades, a century even, to build a company like Inco or Dofasco. Don Argus, the former chairman of BHP Billiton of Australia, the world’s largest mining group, was right to denounce Canada’s sellout culture. “Canada has lost more head offices than any other country,” he said in 2008, at the height of the resources’ buying and selling spree. “Canada has already been reduced to an industry branch office and is largely irrelevant to the global mining stage.”

Of course, BlackBerry doesn’t really play into the hollowing out story. In retrospect, it should have foisted itself on Microsoft, Nokia or Amazon shortly after it became apparent to investors and tech geeks, if not to the deluded executives at BlackBerry itself, that the iPhone was here to stay. BlackBerry’s value destruction since then has been awe-inspiring. Mr. Lazaridis and Mr. Balsillie were superb entrepreneurs, but failed at keeping the company competitive.

So why does Canada lack global champions? Don’t blame government policies. Blame the sellout culture, nice-guy directors with a propensity to protect the wrong executives at the wrong time and Canada’s classic lack of corporate self-confidence. The upshot is a country that turned into a one-trick pony – oil sands – with a few decent, protected banks and insurers at its side. If Switzerland, the Netherlands and Sweden can churn out global champions, Canada should be able to at least double the rate. The next BlackBerry is not just around the corner.
Blackberry  boards_&_directors_&_governance  brands  branch_plants  competitiveness_of_nations  decline  Eric_Reguly  G-7  global_champions  head_offices  hollowing_out  large_companies  multinationals  oil_sands  sellout_culture  superstars  value_destruction 
august 2013 by jerryking
The head-office exodus - The Globe and Mail
Jun. 29 2012 | The Globe and Mail | ERIC REGULY.

Gord Nixon stated that “we should be asking why so many of our industry leaders are being consolidated, rather than doing the consolidating; why we are losing head offices at such an alarming rate; and what is the cost?”...Hollowing out has turned Canadians into bit players in industries that we used to dominate, or where we at least had a seat at the table....Why are Canadians so keen to sell? Lack of confidence is a good place to start. For decades, Canadian companies had capital handed to them, first by the British, then by the Americans. Now that CEOs face a global fight for capital, many of them seem to be taking the easy way out and selling to, rather than competing with, big-name rivals.

Greed is surely another reason. Canadian investors adore instant gratification, even if it means giving up a long-term growth play....All hope is not gone. We’ve lost head offices in mining, beer, steel and other businesses, but there is an industry where Canada has a chance to become a world-beater: agriculture. We have land, water, technology, potash-based fertilizer and infrastructure, such as rail and ports. Another two billion people will have to be fed by 2050. Canada should, and could, build its own Glencore, Archer Daniels Midland, Cargill or Monsanto.

Oops! We’ve now agreed to sell Viterra and its irreplaceable grain elevators, to Glencore.
Eric_Reguly  exodus  mining  mergers_&_acquisitions  Glencore  agriculture  hollowing_out  Strata  sellout_culture  global_champions  Viterra  head_offices 
june 2012 by jerryking
Analysis: U.S. Tech Companies, China Tangle Over Contracts - WSJ.com
APRIL 18, 2011 John Bussey. Despite an agreement between
President Obama and President Hu in January, U.S. technology companies
are again complaining about how China awards contracts...The bigger
issue, Mr. Murck adds, is that this is just one piece of China's broader
industrial policy, a large array of mostly new rules designed to speed
the growth of national champions and foster home-grown innovation.

The list is long: new patent laws that could make it easier to seize
foreign innovation; the setting of standards that require products to be
re-engineered to meet Chinese specifications; national-security
initiatives that give preferential treatment to Chinese companies in
several industries; limitations on market access for U.S. services
companies; continued weak enforcement of intellectual-property rights.
China  contracts  global_champions  home_grown  Hu_Jintao  indigenous  industrial_policies  innovation  intellectual_property  non-tariff_barriers  patents  patent_law  predatory_practices  property_rights  technical_standards  technology_transfers 
april 2011 by jerryking
Success Beyond China Seems Unlikely for Its Online Giants - NYTimes.com
March 23, 2010 | New York Times | By DAVID BARBOZA.
Post-Google, China’s Internet market could increasingly resemble a
lucrative, walled-off bazaar, experts say. Those homegrown successes,
however, could have trouble becoming global brands.

“If the Chinese government continues to favor domestic companies, those
companies that reach critical mass could become phenomenally
profitable,” said Gary Rieschel, founder of Qiming Ventures, an American
venture capital firm with investments in China. “But it may be hard for
those companies to become world class without outside competition.”
China  Google  protectionism  censorship  Baidu  Tencent  Alibaba  global_champions 
march 2010 by jerryking
China Toughens Rules for Foreign Companies - WSJ.com
MARCH 17, 2010 | Wall Street Journal | by ANDREW BROWNE And
JASON DEAN. Business Sours on China. Foreign Executives Say Beijing
Creates Fresh Barriers; Broadsides, Patent Rules. China's relationship
with foreign companies is starting to sour, as tougher government
policies and intensifying domestic competition combine to make one of
the world's most important markets less friendly to
multinationals....Signs of nationalism are evident in the grooming of
state-owned companies (SOEs) to dominate their industries as "national
champions," often at the expense of private Chinese companies as well as
foreign firms. From airlines to coal mining to dairy products,
government policies are expanding the state's role.
China  protectionism  multinationals  patent_law  economic_nationalism  SOEs  global_champions  state-as-facilitator 
march 2010 by jerryking
Capital C: Why can't Canada get it in gear?
Jennifer Wells interview with Tony Chapman of Capital C.

"I look at Canada and I think, why aren't we doing global brands here? We have a multicultural society, we are one of the earliest adopters of new technologies in the world. We have so many things going for us, but no one's come up with a strategy that says, how do we become a superpower in creativity?"
Capital C has proved a creative power in the advertising world. That unbranded "Wig-out" viral video – the one in which a bride goes nuts over hair unhappiness – was revealed to be the work of Capital C for Sunsilk shampoo. The agency counts Frito Lay Canada among its client base, and Dove among its brands.
"We won the global retail strategy for Dove worldwide two weeks ago," Mr. Chapman says. "The retail footprint for Dove around the world will now be coming out of Capital C. That's the kind of work we need to get."
By "we" he doesn't mean his own shop, but the agency world in Canada.
"Could you imagine if we had, for example, the ability to do predictive modelling against every marketplace in the world?" In other words if Canada sold itself as the world's test market, with the capability of measuring the relative impact of a product in marketplaces from Shanghai to Mumbai to London.
"A big part of the future of creativity is understanding the consumer – how they think, feel and behave," he says.
"I want every agency in Canada and every head office in Canada to have access to the technology and tools to invent, create, test, prototype, validate and implement. … If we're the test market for validating brands, head offices around the world are going to send their best people to Canada."
He envisages university alliances and the development of a student population where the learning is more about entrepreneurship and less about the standard marketing precepts of product, place and promotion.
Tony_Chapman  branding  innovators  Jennifer_Wells  design  national_identity  predictive_modeling  thought_leadership  advertising_agencies  Frito_Lay  Bolthouse_Farms  global_champions  brands  multiculturalism  advertising  creativity  test_marketing  innovation  Capital_C  cultural_creativity  Canada  customer_insights  consumer_research  head_offices 
january 2009 by jerryking

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