MEDIA: CBC News Network Weekend Business Panel (December, 2019)

Closing out 2019 in studio for the CBC News Network Weekend Business Panel, alongside Sherena Hussain and Natasha Fatah (aka The Women in Blue!).

Here’s what was on our Holiday Season menu:

  • New NAFTA Reaches the Finish Line:  As Canada, the US, and Mexico agree to some final revisions, what are the next steps for New NAFTA?  What does it mean for Canadian companies?
  • Compensation Rules for Flight Delays Kick In:  Air travel passengers in Canada will now have the potential for compensation in the event of some flight delays, but will it be meaningful?
  • More Ontario Cannabis Shops on the Way:  Removing the cap on the number of cannabis shops in Ontario might be an opportunity to better meet market demand, but are there other important considerations?

Negotiation of a new trade deal between Canada, the US, and Mexico has been unfolding over the past year and a half and has not been an easy task.  Given that Democrats control the House in the US, they were in a position to push for revision in order to support ratification and the countries were able to find agreement around clauses pertaining to dispute resolution, environmental, prescription drug, and labour provisions.  In particular, Mexico will have to take steps to improve the labour environment in that country, an area that has been contentious, given its ability to provide an inexpensive workforce and displace jobs.  Deals are one thing; it will be interesting, however, to see how well implementation occurs, once all countries have ratified what is effectively NAFTA 2.1.

Speaking from experience, we live in a world where air travelers tend to feel like they have no rights, especially in those moments when they are not treated particularly well (cue to the herding cattle analogy).  Air travelers are essentially at the mercy of airlines when delays happen, as there are limited alternative to get from one location to another.  Effective December 15, 2019, airlines will now have to compensate passengers in delay situations that are within their control, guidelines that likely have Canadians wondering if they are worth much, in practical terms.  It is important for passengers to know their rights when traveling, keep track of travel documentation, and ask airlines for clarification, when needed.  From a fairness perspective, good communication and transparency are important, however, too many of us know what it is like to be delayed in an airport with little in the way of information sharing.

As the cannabis industry continues to evolve, Ontario’s decision to remove the cap on retail shops is an area to watch.  Although studies indicate market demand, successfully operating a company is something that is quite different.  Business leaders too often make the mistake of thinking that a product alone makes a company, when nothing could be further from the truth.  We can all think of stores, restaurants, or coffee shops that opened too many locations, only to have to retrench to a more appropriate number; this type of downsizing can be onerous and expensive.  The same mistakes could be made here; this time, with a highly regulated product that requires special attention of its own.

As 2019 comes to a close, it’s a good time to be thankful for this past year.  It has been my pleasure to appear on the CBC News Network Weekend Business Panel, work that is both fun and a privilege.  Thanks for watching and see you in 2020, a year that is sure to bring a host of interesting developments, to say the least; stay tuned!

 

MEDIA: CBC News Network Weekend Business Panel (January, 2019)

Starting off the New Year in studio for the CBC News Network Weekend Business Panel, alongside John Northcott and Elmer Kim.


As our world continues to experience economic, political, and technological change, our discussion reflected just that:

  • Turmoil in Venezuela.  In the face of leadership uncertainty and devastating economic and social challenges, potential US sanctions could significantly impact Venezuela’s oil industry.  What could this mean for Canada?
  • Ontario enhances autonomous vehicle pilot program.   Changes to an existing program will now allow some automated vehicles on public roads with just a passenger on board or a remote operator monitoring the vehicle.  When could we expect to see these vehicles on the road?

The Venezuela story is a reminder that developments in far away countries can impact us here in Canada, including in terms of business and the economy.  In the event that Venezuelan oil exports are sanctioned by the US, refineries in that country will be seeking supply to meet the needs of their operations.  Canadian crude oil could fill this gap, however, meeting such opportunities successfully requires more than just identifying solutions at a high level.  Logistical challenges and limitations have been in the news for some time and relate to the need for Canada to continue to focus on developing a global trade strategy for oil.  This approach raises the likelihood that opportunities could be successfully met as they arise; it is also simply good business.

The advancement of riderless cars, one step closer to being approved for regular road use, reminds us that the future is now.  Although there is still additional work to do in terms of testing and refinement, the practical use of autonomous vehicles represents tremendous change for many, including car manufacturers, insurers, companies that utilize vehicles and drivers, and consumers.  Are they ready?  I expect that many are facing the need to work quickly to keep up with the pace of these exciting developments.

And so, 2019 begins, with what should be an interesting year.  Special thanks to CBC News Network for the on-air mention of my new book, Defusing the Family Business Time BombI sincerely appreciate it!

 

MEDIA: CBC News Network Weekend Business Panel (December, 2018)

Closing out 2018 in studio for the CBC News Network Weekend Business Panel, alongside Elmer Kim and John Northcott.  This week, we focused on the business implications of the ongoing Huawei saga, which became part of the news cycle earlier this month with the detaining of the company’s CFO, Meng Wanzhou.

China’s concern over Meng’s circumstances has been playing out through a range of potential threats to companies, such as Apple and Canada Goose.  Actions that could arise include boycotting iPhone purchases, while Canada Goose has already faced a falling share price and delays in opening its new store in China.

This situation could also bring complications to the current 90 day “quiet period” between China and the US, in an attempt to arrive at a trade agreement that could bring more favourable terms than the recent past of escalating tariffs and other troubles.  While the two largest economies in the world seem poised for an uncertain relationship, with Canada facing warring words of its own from China, the news isn’t all bad. In the event that China cannot come to a reasonable trade resolution with the US, it will have to continue to procure goods to support its own economy, with a need to look beyond its regular trading partners.

Here are some things that Canadian companies should think about, in terms of balancing the opportunity and risk associated with the Chinese (or any new) market:

  • Bring a balanced approach.  When seeking to do business in new markets, it is critical to fully understand the marketplace, in terms of potential opportunities, risks, regulations, and business practices.  Too often, the focus is primarily on the opportunity, which could result in significant challenges when inevitable difficulties surface.
  • Take a long term perspective.  Entering new markets should be viewed as an investment, not a whim.  Investments require the right research, strategy, and implementation plan, not only to generate success, but also to address challenges and mitigate risk.  Although this might sound obvious, companies tend to fall into the trap of focusing primarily on generating short term, positive results, an approach that puts an investment at risk once early days pass.
  • Conduct an integrity check.  Among the important issues of opportunity and risk is the manner in which business is done; call it values, basis of judgement, operating style.  The bottom line is that not everyone (or every place) has a style that is consistent with your own, which could lead to significant problems down the road.  Knowledge is key to determining whether or not the opportunity at hand is a place where you want to be, and finding this out after the fact could be too late.

Increase the likelihood of success by resisting the temptation to leap without looking, and instead, doing the necessary homework to make an informed decision and strategize accordingly.  There’s strength in recognizing that those who are first out of the gate aren’t always in the race for the long run; be sure to avoid this all too common pitfall.

Thanks for watching and see you in 2019!