Where is Volkswagen headed now?

As 2015 draws to an end, the largest corporate scandal of the year will drag well into 2016 as fines and class action court battles ramp up. Wolfsburg is the Volkswagen built town put on the map in 1938 by the Nazis in 1938 pursuing their dream of building the people’s car. Wolfsburg rode Volkswagen's post-war boom to financial prosperity and the two are intertwined.

Wolfsburg's population of 120,000 people draws commuters from the surrounding areas with some 70,000 working for Volkswagen - Wolfsburg is as dependent on the auto sector as Detroit was in its heyday.

Many arguments may be made that the requirements were too stringent and no engine is able to meet these standards. Regardless, the defeat device software was able to detect when the engine was being tested downgrading performance and emissions. Once out of test mode, the software ramps up performance with tailpipe emissions more than 40 times specified amounts.

When found out, Volkswagen owned up to the fact pretty quick, there wasn't a round of denials further tarnishing their reputation. It has been widely reported that the EPA has the ability to fine the company a maximum of $37,500 per vehicle that breached standards. With approximately 11 million vehicles worldwide not meeting standards, fines of up to $18 billion are being bandied around that is a simple equation of vehicle versus maximum fine. 

Regardless, shareholders are feeling pretty nervous as the financial hit to the company has the ability to be extraordinary. I am guessing inhabitants of Wolfsburg are also understandably concerned, they had no part in the decision making process yet are the ones to bear the brunt of these poorly conceived decisions.

The demise of journalism in Australia

The 24/7 news cycle forces competing news agencies to out scoop each other, all jousting for relevance in a cluttered marketplace. Tabloid style reporting, the rise of the celebrity culture and voyeurism are all contributing to the decline of investigative journalism in Australia.

This is a terrible shame, journalism using traditional mediums is in decline; newspapers, once the domain of media moguls still exert influence but are numbered due to the revenue loss through classified advertising affecting the financial viability.

Contracted journalists sitting in the Canberra press gallery reported political issues to the masses, this still happens to a certain degree. But instead of being employed directly by the media company, the journalist is now an independent contractor working freelance with blogs providing content for electronic distribution of media companies.

Traditional newsprint in the form of spreadsheet newspapers are my favoured news medium but is considered too static in the digital age. News radio, television and internet reporting are the preferred distribution in an interconnected world offering breaking news to the masses.

The News of the World scandal in the United Kingdom highlighted the depths to that journalism (for want of a better word) can sink. Tapping people's mobile phones surely is fueled by the public creating demand for such reporting.

The celebrity culture and news cycle generating such content can only be broken when consumer demand dries up - we the public created this problem.

Do we really need to teach the controlled emergency swimming ascent anymore?

During entry-level diver training, the controlled emergency swimming ascent (CESA) must be taught. Experienced instructors hate teaching this skill for a number of reasons, first and foremost, the skill is outdated with modern equipment.

Secondly, when teaching big classes on a daily basis, multiple fast ascents is bad for you and thirdly, if a new diver can't remember to check their cylinder pressure, what is their chances of remembering the CESA procedure?
 

Then you have the logistics, a full class, no certified assistant and time pressures of a charter boat. You have to take each diver down individually while the other divers remain in view in a vertical column of water holding onto the ascent line as you can't leave uncertified divers in the water.

However, you have to leave uncertified divers on the surface unattended as you take each diver down the line but that is allowed - I would hate to have to defend that action in court.

Submarine escape training required specialised facilities, not only are specialist stand-by divers present, medical staff and safety equipment, a recompression chamber is usually on site for any diving maladies. Submarine escape training is required for all submariners and can also double for military divers.

The skill is a throwback to the days of military diver training, the equipment requirements today require the use of submersible pressure gauges (SPG) measuring the contents of the cylinder. No longer is the J-valve used, as such, divers no longer need to switch to the reserve to ascent to the surface.

For those who are unfamiliar with the J-valve, there was no SPG available to measure cylinder pressure and hence cylinder volume and as the cylinder emptied, it became more difficult to breathe from the tank informing the diver the cylinder was close to empty, the valve was moved allowing unhindered breathing for the ascent.

The SPG measures the exact contents of the cylinder, during confined water training sessions, that is an exercise that must be taught so that newly certified divers take responsibility for their own gas usage. 

Correct training techniques include the diver monitoring their own cylinders and not the instructor checking the contents of their cylinder. With modern equipment and training techniques, there is no longer a requirement for teaching the CESA and the skill should now be relegated to diving folklore.

Christmas down under

We all know Australian quarantine and customs is ultra strict, they don't let much pass through them. Ok, that little twerp Johnny Depp managed to smuggle a couple over-sized rats disguised as small dogs named Pistol and Boo in to the country on his private jet; the threat of 10 years jail and/or $102,000 in fines might be a deterrent after all to him and his wife after creating a bio-security threat. 

So, what are their chances of letting a bunch of reindeer through border control after trampling around central and South-East Asia? Yeah, unlikely with concerns of foot and mouth, rabies or a whole bunch of other diseases foreign to Australia - forget it.

So at Darwin, the reindeer are unhitched and placed in quarantine and six white boomers; that is large male kangaroos, are hitched up to the sled for the great southern continent delivery run. Let's face it, reindeer don't much like the hot summer nights, they are much more suited to the snowy fjords of the northern hemisphere winter. 

This is summer, this is the southern hemisphere and all the Christmas stories of snow and a white Christmas are totally irrelevant to us southerners. We have our own traditions and identity; Christmas is summer, let's be under no misconceptions here. When the weather is starting to heat up, we know Christmas is coming.  

The social media landscape

Social media is exploding, it is difficult to a) choose the platform that best suits you and b) the platform your friends are using. There is little point in building a fantastic profile on a particular platform only to be shunned by all your friends socialising on another social media service.

Of course, the overuse of social media tends to limit social interactions, a certain irony exists in such a domain. The advantage for me is, I have made many friends overseas from travelling, this is a great opportunity for me to keep in touch and communicate with my overseas friends.

Social media is evolving, new platforms are popping up weekly, the take-up of new media is driven by the young upwardly mobile crowd. I am wondering what will evole next, the hardware to run such applications, the social media platforms or limitations of the telecommunications networks?

Marketing management

Well, I am progressing through the coursework and marketing management is all done, I am now waiting on results. I did learn a fair bit, while I already knew marketing was more than just advertising, I was surprised to learn what marketing really entailed. Marketing is the study of markets with an emphasis on the mechanics of exchange.

The course started with an overview of marketing and ethics before moving onto strategic planning for a competitive advantage, consumer marketing, market segmentation and targeting markets, marketing research, product concepts, distribution channels and supply chains, retailing, pricing and the future of marketing.

Our final assignment was a group marketing plan, that isn't bad and my fellow team members were pretty good to work with, I have engaged in remote tam assignments before and it was a little more than frustrating. that being said, the new method of work is remote cross functional teams so it prepares us for future employment situations - that's pretty good. 

The unit is pretty broad, we didn't get into as much detail as I expected in regards to supply chains and marketing channels nor did we really spend a great deal of time getting into pricing models. This is a pretty broad course and the emphasis is on self-learning and I am guessing this is an introduction to the concepts with further engagement necessary to really master the material - a broad overview mostly. 

It would be good to be able to move on from a broad degree to more specialised areas with majors in management, human resource management, finance, marketing, operations, economics, entrepreneurial & start-ups, international business or strategic management after all the basic units are covered. 

What I do know is the MBA degree has grown from a broad based education to somewhat of a specialised area now and I wouldn't feel confident moving straight into accounting, finance or marketing straight after completing the course. I need a little time to really embed the learned concepts into a sustainable knowledge base without constantly reaching for my textbook.

Yutz Place - an expensive Bali steakhouse

I was talked into going to Yutz Place, this is a Balinese steakhouse in Legian that I must admit that I wasn't much interested in. I was forced to head in because of online recommendations and my protests went unanswered.

There are many good quality restaurants in Bali that are very reasonably priced, why go to an expensive over-rated restaurant? From now on, maybe I should be insisting the person pushing to go to such an establishment should be picking up the bill.

You have to very careful what you order, the bill will escalate very quickly. Whatever you do, don't get caught out on happy hour, it only applies to beer despite what they actually tell you - they will charge you extra for the mixer too, it is not inclusive. 

The next round of drinks you order, when you inquire, they then tell you happy hour is over for spirits, beer only. Not a lot of goodwill either when you question the bill, no discussion at all - not a great strategy to build customer goodwill.

The steak is great, I asked for rare and that is what I got. Naturally, you pay for it, be ready for a dent in the plastic. The service was only so so; despite obvious failings, even if you have communication issues, a compromise goes a long way in the eyes of the consumer. There are no issues with the food or the quality of presentation.

The advantage of blogs is you are able to air your grievance in public, no longer do you just have to just take it and silently vow to never return. The onus is on the vendor, within reason to keep the customer happy; after all, the customer does pay the bill. 

If the plan is churn and burn as opposed to generating repeat customers, then the strategy worked. When your query is for less than 10% of the bill total, it at least warrants a discussion instead of being left feeling that you have just been done over.

Hay Shed Hill - 2013 cabernet sauvignon

I have been a long time drinker of Hay Shed Hill so you can imagine my disappointment with the 2013 cabernet sauvignon. Hay Shed Hill has always been a softer style and I have always liked their product, my first bottle of 2013 left me less than impressed.

This vintage was awarded 95 points by James Halliday, so I'm guessing it is just my tastes that didn't appreciate their work. The blend of 86/10/4 percent of cabernet sauvignon would usually be to my tastes. The blend of malbec and cabernet franc was laid down in French oak for 13 months to improve complexity, yet for me - this wine was left wanting. Maybe I will try another bottle sooner rather than later to see if it was just a bad day for me.

A national innovation strategy

One of my colleges at work is more politically left of centre than me; he is a union member and supports the left side of politics. Conversely, my political views are more right of centre; I more of a capitalist than a socialist but I believe in regulation as a balance of power is required.

I also believe in social safety nets such as government welfare to assist those less fortunate within reason; naturally this assistance is short term only to help people get back on their feet.

One area we did agree on was when the Abbott government came to power, he slashed budgets across all departments; this was required after the budget disaster he was bequeathed but the scientific budget needed to be expanded.

But the science and innovation portfolio was largely ignored in order to derive budget savings; to my way of thinking, this is short-term thinking that has long-term ramifications.

Some of their leading innovations and scientific discovery from the CSIRO include WiFi, plastic banknotes, the Hendra virus vaccine, extended wear contact lenses, Aerogard insect repellent, the total wellbeing diet, RAFT polymerisation, BARLEYmax, self twisting yarn and softly washing liquid.

The Abbott government pretty much slashed the CSIRO budget, that is the Commonwealth Scientific and Industrial Research Organisation that employs scientists, engineers and research technicians - the whole reason why we need to better utilise PhDs.

We ran the real risk of losing top notch talent to overseas organisations where our leading scientific minds defected to international organisations - our country loses the benefits of their knowledge and work.

Since the Prime Ministerial coup, the first real change of policy is to inject $100 million back into the CSIRO with over twenty individual measures running across eleven ministerial portfolios.

The funding forms the ­national innovation and science agenda focusing on four key outcomes of commercialising research, raising capital and ­effective risk management, providing government leadership as model of innovative practices and boosting talent and skills across the economy - great stuff.

Notwithstanding, such research requires funding to attain commercial success and that requires venture capitalists investing scarce resources to projects that hold commercial capabilities.

The top international universities of the world such as Harvard University, the Massachusetts Institute of Technology, Stanford University, Chicago Booth and Wharton University all generate significant interest and funding opportunities through venture capitalists.

The strategy supports science, mathematics and technology at schools across the country to provide the foundations of the program. Now we have the tools and government support to compete at the highest level to attract the best talent worldwide. While Abbott stated Australia is once again open for business, Turnbull is creating the environment to attract science and innovation back to Australia.

Furthermore, tax advantages will now drive investment in ventures that may have not received venture capital funding in the past, one hopes scarce capital is attracted to entrepreneurial business enterprises leading to jobs and investment. Naturally, some business ventures will fail with such risk allowing tax deductions of capital lost.

We have discussed at length the advantages and disadvantages of a Prime Minister with his real world commercial experience. Malcolm Turnbull is a business success, he has extensive merchant banking experience where he made his fortune in technology innovation. He is now reversing the regressive policy of his predecessor - I think we will both agree that this is a positive outcome.

The value of Ronald McDonald House

Say what you want about McDonald's fast food outlets, their work with Ronald McDonald House is exemplary - this is a fantastic community service.

As the old Princess Margaret Hospital is closed down, the new children's hospital at the redeveloped Sir Charles Gardner Hospital site means the residential facility had to be moved as well as it is imperative that the facilities are close to the medical facilities.

When families have to travel to Perth for their child's hospital treatment, they have the opportunity to stay at this outstanding residential facility. The new building has the capability to house 180 people each night with Lotterywest contributing $8 million.

BHP kicked in $5 million and Fortescue Metals Group also contributing $2 million to the construction. West Australians donated $22 million and was raised in just 9 months.

The state government providing the land adjacent to the hospital - an outstanding contribution all round. The facility is staffed by volunteers who work to provide services for families stressed with sick children.

The original Ronald McDonald House in Philadelphia came about after football player Fred Hill organised a housing facility when he was forced to sleep in corridors after his daughter was diagnosed with leukemia.

The local McDonald's franchise owners organised special milkshakes with the funds collected used to renovate the house. McDonald's Australia pays all management and administration costs so all donations benefits the families.

The relationship began in 1981 with 15 Ronald McDonald Houses operating throughout Australia - a noble cause.

John Mellencamp back at Sandalford winery

Back in 2008, I was lucky enough to head out to Sandalford winery in the Swan Valley to attend an outdoor concert on the grounds. This was my first time to see John Mellencamp in concert and it was a fantastic evening - I loved it.

Now 8 years later, John Mellencamp will be back for a concert under the stars and I immediately snapped up tickets. I will have to wait until February 2016, this will be a hot summer's night in an ideal setting sipping the excellent fine wines of Sandalford - really looking forward to reliving this concert.

Islamophobia - real or imagined?

On one hand, we have Islamic apologists trying to shout down everyone asking questions regarding Islamic extremists views calling people who oppose their views as racists, bigots or Islamophobic.

Then on the other hand, we have a bunch of people calling for every Muslim person to be deported and flung from the country; the answer seems to be somewhere in between.

Islamic extremists are generally drawn from the ranks of mainstream Muslim followers; for anyone to argue IS, ISIS, ISIL or Daesh is not about Islam deluding themselves.

Quite possibly, the name of the organisation Islamic State may offer some clues to their intentions. However, for people to blame every Muslim for the deeds of Islamic State Iraq Syria is also misguided and wrong.

Yet, the recruiting of young followers and jihadists from mosques is real; the issue requires leadership from within the Muslim community - so far, this is sadly lacking.

So where are we at? People are concerned about the Muslim community, it is a fair call, there are serious integration issues.

For the Islamic community to integrate, the leadership needs to address the wider community in both conversation and deeds. The Christian community provides essential public services.

If the Islamic community wants to be taken seriously then community services such as feeding and housing homeless people, meals on wheels, aged care and disadvantaged people and groups would enhance their image.

The Muslim community has an image problem, one of only taking - not giving; hands out for as much money as they can milk it for without providing any community service.

Until the Muslim leadership can address these issues - they will continue to suffer from their own abilities to effectively integrate in the country they now live.

Where is Yahoo! headed?

Is Yahoo! Inc a business with a future? Founded by David Filo and Jerry Yang in 1994 when the internet was really kicking off; the question is, are they going to survive?

Current CEO Marissa Mayer is considering selling out of the internet business to concentrate on its investment in Chinese technology giant Alibaba. The two major assets of Yahoo! are the Alibaba stake and Yahoo Japan with the 15% in Alibaba valued around $32 billion USD and 35% stake in Yahoo Japan valued around $8.5 billion USD.

Following a line of short-term CEOs, Mayer is feeling the pressure to stem the bleeding and arrest the flow of top executives leaving the corporation. Despite the Asian assets performing well, the rest of the business seems to be sinking after being a leading internet business.

Whilst remaining a big deal, the search engine is losing ground to rival Google although the email and news functions still drive people to the site allowing advertising to remain a cash cow for the business. Is this the end of Yahoo! as we know it?

If plan A fails

Interestingly, contradicting Susanna Kass at Stanford's Graduate School of Business is Elizabeth Holmes CEO of Theranos, the privately held health technology and medical laboratory company suggesting "The minute you have a back-up plan, you'e admitted you're not going to succeed."  

Both of them can't be incorrect, so the question is - "Is contingency planning an admission of impending failure or prudent risk management?" I tend to support Susanna's views believing strategic planning is fluid and responsive insofar as correct methodology and processes are undertaken to achieve desired results.

As a sailor, you need to steer to the course and keep the endgame in mind, but the best tactical decisions are based on current conditions and strategy. The old adage of defending your position when you are in the lead and engaging in offensive tactics when you are challenging for the lead holds true - you can't just sail your own race. You need to account for the other competitors and respond accordingly.