16 April 2012
by: Roadside Picker
This Week’s Provoking Thoughts
Here are some provoking topics, from the news report.
(1) 160 million years old dinosaur fossil. It was discovered in the region of Xinjiang in China – largest dinosaur grave yard in the world. Why is it so provoking? (Is there anything that’s too big to fall?)
(2) Strategic Acquisition Or Waking Up The Wrong-side of Bed?
The eventual outcome of the $1b priced acquistion of Instagram by Facebook will be a case study of how to recognise strategic issues or how not to be silly.
The only reason for the seemingly over-valued buy out of a photo-sharing application software company is that Facebook will soon be public-listed and loaded with cash that they just don’t know what to invest in.
But maybe the skeptics are wrong. Simply it is worth that much because of huge applicaton users out there?
The essence of this business decision is not about price tag, but really about betting it out for a future directon.
Tech companies are expected to act things out this way – win big or lose big (die).
(3) Shock Theraphy. One of Singapore senior economists proposed that in order to narrow the city state’s widerning wage gap, is to provide salary increments to lower income group (i.e. $1,500/month) with 3 years increase of 15% in wages and, coupled with freezing of wage for those who earn $15,000/month and above for the same period of time.
This so-called “shock therapy” for wage structure draws huge out-cry from other economists as well as union leaders (these people love productivity theory more than anything else).
At least one cabinet minister said that the shock theraphy though it sounds radical, the impact to economy as a whole should be studied in detailed before conclusion is made and options explored.
Those who oppose the idea of 3 years wage increases for lower income groups tend to ignore the essence behind such shock theraphy but continue to hold on to the “sacred cow of Lion City” in which this small state should never take any drastic changes on everything or else… the end of the world kind of syndrome.
Is it true that small states in the world must only take on small-steps remedial actions otherwise… gone case? Only wisers will know. Sometimes history is not a good guide for moving foward.
So far not many have the vision to push beyond the “envelope of smallness syndrome” with regard to macro perspective issues.
Roadside caption: “Maybe it is the doctor should be given the shock theraphy!?”
(picture extracted from ZAOBAO News)