Business Archives - Page 62 of 67 - Michael Horesh Business Coach and Mentor

27 August 2009

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Categories: Business, Israel, Palestinians

The weband utube is flooded with calls to boycott Israeli goods. They are frequently racist, masking behind politically correct statements. They are inherently hypocritical.

Do the Palestinians boycott the Israeli economy? Well, we know that extremists like Hamas for years have tried to ensure that Israeli consumer products, especially food items, have no place in Arab shops. Obviously, this kind of ethnicity is morally justifiable, isn’t it.

On the other hand, we know that every day, tens of thousands of Palestinian workers voluntarily enter Israel, primarily as manual labour. Remember, relative to what can be earned in Gaza or in Jenin, they high salaries.

OK, well that may be an economic necessity, but what about trade?

This week, a seminar was held near the Allenby Bridge between the Palestinian and the Israeli business community. Did you know that in the year 2008 alone, the two economies created 20 billion shekels of volume?

Do you know how many jobs that is worth? Do you what that represents in terms of investment for small businesses?

The Netanyahu government is committed to ensuring this trade surges forward. In London, the Israeli Prime Minister stated at a press conference that: –

We have already moved: my government has removed, to be precise, 147 checkpoints and roadblocks. The 14 remaining checkpoints, 12 of them are manned 24 hours a day, seven days a week, to facilitate movement. I have extended the time of passage on the Allenby Bridge on the Jordan River in order to facilitate movement in and out of the Palestinian territories. I chair a ministerial committee that seeks to remove and has removed roadblocks to economic activity in the West Bank. We’ve moved on the ground.

In parallel, much will be determined by the ability and desire of Palestinian leaders to reign in the terror machines. In the West Bank, there are clear successes here for the short term.

Unfortunately, Hamas has allowed a continuation of shelling, as residents in Zikim, Ashkelon and other Israeli towns can testify this week. Thus, they are ensuring that the passage of trade is minimal at best.

So, next time you hear about calls for a boycott of Israel, ask the proponent why Palestinians do not join in. And then point out a few home truths.

24 August 2009

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Categories: Business, Israel, Jerusalem

Down the road from me in Jerusalem, a 10-storey high research complex is nearing completion. Its structure may be out of place n the landscape, but the capital’s new biotech research facility will fit in well to its surroundings.

Jerusalem’s Hebrew University has a strong science tradition, dating back nearly 100 years. The city and its satellite towns have attracted a high ratio of academics in recent decades, particularly from Russia, USA and Britain. And the government grants Jerusalem start ups Grade A status in terms of public sector financial support.

What goes in Jerusalem can also be found in other parts of the country. D-Pharm in Rehovot has just raised around US$23 million in a rights and shares offering. Protalix is finishing Phase III trials, edging towards a billion dollar plus market.

If that is not exciting enough, the Office of the Chief Scientist has launched a tender for a National Biotech Fund, projecting to add hundreds of millions of extra investment to the industry.

No downturn here.

23 August 2009

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Categories: Business, Israel

Today’s papers in Israel were full of the stats from the last economic quarter. Private consumption up 4%. Growth up 1%. Exports up 5%. Investments up 5%.

Apart from rising unemployment and inflationary scares, all seems rosy, as Israel comes through the global downturn. And…and now let’s return to reality.

Yes, I have always maintained that Israel’s economy was well placed this time last year, especially compared to the UK and to the USA. For example, there was no mortgage crisis in the Holy Land.

“We are not out of the economic recession yet,” declared Finance Minister Steinitz today.

Look at the reports, and maybe the problem is not if “you are out of it” or if you are “emerging from it” or if “round the corner is a bright light”. What has happened is that in order to ensure that the country would not go through a major depression, unusual economic measures have been taken. And these have created discrepancies that have not existed for decades.

1) How can the government provide more resources for growth, when the fiscal deficit has soared?

2) The shekel has strengthened to the dismay of exporters, but the Bank of Israel (BoI) is about to raise interest rates. And, the BoI has ceased to buy dollars in the financial markets. Thus, the 2 weapons used to depress the shekel have been taken out of play. thus exporters will receive less of a return.

3) The labour market has yet to pick up, as layoffs still occur or production is fuelled by overtime.

So, where is the country going? Yes, Israel is doing well, on its own and compared to many others. That is very encouraging for the future and good news for overseas investors.

However, when considering what may happen next, it is The Economist magazine that gives us some guidelines. As this week’s leader points out, the global economy has ceased to shrink, but that is the end of the good news. Many powerhouses are in for a long period of weak growth.

For Israel, with an economy dependent on exports, that is not good news.

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22 August 2009

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Categories: Business, Israel, Palestinians

Last week, Israel’s ambassador to USA, Michael Oren, authored a telling item in the Wall Street Journal. His opening lines says it all.

Imagine an annual economic growth rate of 7%, declining unemployment, a thriving tourism industry, and a 24% hike in the average daily wage. Where in today’s gloomy global market could one find such gleaming forecasts? Singapore? Brazil? Guess again. The West Bank.

These are stunning stats, which are rarely seen around the global economic scene. They are based on the most recent assessment of the IMF.

Oren continues by differentiating between the West Bank and Gaza, where the latter is ruled by Hamas. In that fertile strip, 40% unemployment is a common number.

Certainly, we must take Oren’s glowing priase of economic success with some perspective. The ambassador gets paid a salary to hide the downside of the stats.

And this latest growth comes in the aftermath of the Palestinian initiated Intifada, when Palestinians paid a heavy social and financial price for their violence. For example, up to the Autumn of the year 2000, around 120,000 workers daily crossed over into Israel, receiving relatively high salaries. Much of that income disappeared for years.

However, Oren is hinting at something else, something far more positive for Palestinians. If this is what can be achieved with even a tiny smattering of reduced terror against Israel, then think what could be attained with a full peace treaty.

If that is the case, we have to ask ourselves why the Palestinian leadership cannot bring itself to negotiate with Israel, openly and properly?

19 August 2009

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Categories: Business, Israel

Intel has 3 r&d plants in Israel. In the second quarter of 2009, he company recruited tens of new software engineers. that trend is expected to continue for 3Q09.

Info from Israel’s Central Bureau of Statistics reveal that this is no isolated item. There is a clear rise in the number of hours worked, although not of all of this is carried through into increased employment. Revenues from commerce and services rose 4% annualized in 2Q09, a sharp reverse of the 5.5% drop in the previous quarter.

Add in a booming stock market and better tourism figures, what does all this mean?

To be clear, Israel’s economy is not back to the rosy levels of this time last year. Inflation soared in July, as the 1% rise in VAT took effect. Many companies are still watching their wage bill.

What is increasngly evident is that Israel is pulling itself away from the bottom of the pit. That is what overseas investors look for.

16 August 2009

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Categories: Business, Israel

Much has been made of the French and German economies leading Europe out of a recession.

Figures released on August 13th showed that the euro area’s GDP shrank by just 0.1% in the three months to the end of June, far less than the 2.5% slump in the previous quarter. The near stability was the result of an early exit from recession in the region’s two largest economies. The economies of both France and Germany grew by 0.3% in the quarter…..

The Economist magazine has also pointed to the strengths of several Asian economies.

The four emerging Asian economies which have reported GDP figures for the second quarter (China, Indonesia, South Korea and Singapore) grew by an average annualised rate of more than 10%……..

All very encouraging. And I want to draw attention to Israel’s economy. I have consistently stated that the country entered the downturn in a good position, structurally. It turns out that GDP grew by 1% in the second quarter of 2009, beating most predictions.

I am sure that the finance ministers of all these economies are gloating at these stats. Prime MinisterNetanyahu has already released a press statement promising more structural reforms, particular in the Land Administration.

Clearly, one quarter does not make a year and certainly not a long stretch of recovery. What it does point to is the potential of an improved economic future and thus a stronger platform for investment.

16 August 2009

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Categories: Business

You are standing on the dock and you can always stand on that dock. Always. Or you can get in a boat and push off.

Thus wrote Zack Arias. Zack’s blog was introduced to me by an IIB colleague, Tiffany Kemp.

Zack’s style does not appeal to me. He is too full of descriptive terminology, roaming around the main point. But what a point he has to deliver. Whatever your background, YOU, each of us, has something mega to offer to many other people. So stop hanging around and watching other people’s boats, when you have the ability to handle dome of you own sailing.

Even if you are down in the dumps – prison, drugs, poor health – somewhere inside of you is something desperately wanting to illuminate the world. And what will drive you on to that creativity?

M-o-t-i-v-a-t-i-o-n. That massive gutfull of determination from within!

Zach’ next blog is an interview with a door-to-door soap salesman. This guy has a police record and few substantial resources. So what? Weighing firmly against these restrictions is a new inner realisation that he can succeed, deserves to succeed and will succeed just like anybody else. As Zack wrote: –

This goes out to everyone who fears your past. For everyone who wonders if you can make it. For everyone who hates your poor, lush, desk job that seems to suck the life out of you. Do you fear rejection? Make sure you watch the video.

If we look around our environment, we will see just how importnt this drive and verve is in out lives. Last week, I was touring Israel with my family. We came across a spot, which is placed firmly in Israeli military folklore – a heavily fortified Syrian bunker, perched on a hill, and which was captured in hand-to-hand fighting. How? How did the Israeli soldiers succeed against all odds? My 18 year old son immediately threw out the word – “motivation”, and there the discussion ended.

Amazing. As a teenager, he had understood. My parents never spoke to me in such terms. A generation thingy?

My daughter has ADHD. She wears it on her sleeve, doing well in her studies because of the issue and not in spite of it. She has just passed a hell of a course to become a junior instructor for the country’s ambulance brigade.

In a few hours time, I will turn on my internet radio, and pick up the latest scores from my favourite cricket team, Middlesex. It is a side that possesses real talent, both amongst the newer and senior members of the squad. These players know how to perform and can perform. And yet, they have done naff all for most of the season.

Blame bad luck. Blame injuries. Whatever. Something inhibits the team to dispose of the opposition frequently and effectively.

I have made my point. So has Zack. Time for the Middlesex management to convert that in to tangible action.

14 August 2009

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Categories: Business, Israel

Let’s get down to the point. My familyhas just spent 7 days travelling round the north of Israel, including the Galilee and the Golan Heights. And I want people to know what we did and why it was such a great success.

We left Jerusalem via the road to Jericho. The Jordanian Valley is rich with Bedouin, Palestinian, Christian villages and sites. The main road, which travels the West Bank was open to all, and the camel owners appeared to have no problems encouraging tourists to part with their dollars.

We eventually stopped just south of the Sea of Galilee at Neharayim Park, right on the River Jordan. This was the site of an electricity power station, set up by Zionists in 1931, which even supported towns stretching into modern Syria and Jordan.

Here’s what is fascinating. A small section of the area is called “the island of peace”. Under the 1994 peace agreement, it officially belongs to Jordan, but is under the complete management of Israel. Both flags fly near to each other. The murder of 7 Israeli schoolgirls in 1997 have not stopped this wonderful project.

We spent 3 nights at the hotel on Kibbutz Hagoshrim. The Kibbutz lies along the northern ridge of the Hula swamp, drained by pioneers 100 years ago. In 1940, Emir Fa’ur, a powerful tribal leader, sold his lands to the Jewish National Fund (Keren Kayemet) and left his palace . 13 years later, the hotel was established, and in the lobby you can still discern the original structure.

The hotel hosted a multitude of languages; English, French, Arabic, Hebrew and more could be heard. As for nationalities, the dining room was a ready match for the UN, both amongst staff and guests.

10 miles to the west of Hagoshrim is Kibbutz Manara. It is perched about 1,000 meters above the hotel and stares straight at the Golan Heights, into villages divided by the Lebanese border, and into surrounding Israeli towns. It proides a commanding view.

It backs on to an area, which possesses a rare mix of religions; Druze, Muslim, Circassian, Christian, Jewish and several more, living together. It is only the threat of the Hizbollah and its consistent rearmament that clouds the tranquility.

From Hagoshrim, we moved to Had Nes, located on the lower Golan Heights and just above the Sea of Galilee. It is almost a decade since the late President Assad refused to make peace with Prime Minister Barak, because the Syrian leader would have had to concede a 10 meter wide strip along the lake.

Meanwhile, Israeli development continues in the Golan, where over 50 ancient Synagogues have now been excavated. The Golan winery challenges the best vintages from Europe. Red grapefruits are big seller in Japan.

One of the highlights of the week was our walk through the gorge of the River Yehudiya. At the top, we passed an abandoned Syrian village, which in turn had been built on the ruins of a former Jewish town. Below, we struggled along the heavy basalt rocks, wading in and out of the river. We dropped from ledges into small lakes. fantastic challenge.

I could describe other parts of the holiday. Watching and talking to Druze picking sabra fruit – a rare but simple technique. Meeting up with European volunteers on kibbutz enjoying themselves. etc etc.

There were many reasons why our family had a great holiday. Maybe the most important factor was the beauty of the region, open to all. Long may it stay that way.

14 August 2009

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Categories: Business, Israel

In the past week, Israel has thrown out a series of encouraging news items for overseas investors.

Let me start with a story that was first reported on the Hong Kong stock exchange. Hutchinson Telecommunications International will sell its 51.3% equity interest in Partner Communications, Israel. This is expected to pull in a pre tax profit of around US$1,000 million.

Shlomi Cohen is an established commentator on the local finance scene. In his latest writing, he has identified several Israeli high tech companies that have ridden the global tsunami with great skill.

And these companies are not individual islands of success. If you look at today’s Globes financial newspaper, you can find a string of satisfying investment news. To take just 2 examples, check the links to D-Pharm and to Tower Semiconductors.

The Israeli economy is on the move back.

6 August 2009

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Categories: Business, Israel

This item was posted on Globes site just now, echoing much of what I have been arguing for the past 9 months.

Main point – Israel will come out of the recession relatively early. UBS expects growth at well over 2% in 2010.

The article in full appears below.

UBS believes that economic activity in Israel “will show clearer signs of a pickup over the course of the third quarter of 2009.” The assessment is based on the Swiss bank’s composite lead economic indicator, which showed a moderate rise in April-May, and a strong rise in June.

UBS economic Reihard Cluse believes that the Israeli economy will recover sooner than many other organizations that track the local economy, including the Bank of Israel, which is quite concerned about growth forecasts.

Cluse writes, “Overall, the new data point has strengthened our confidence that the Israeli economy will return to positive growth (in sequential quarterly terms) in the third quarter, following a weak first quarter and, most likely, an even weaker second quarter. We maintain our above-consensus growth forecasts of minus 0.8% for 2009 and 2.7% for 2010 (consensus estimates: minus 1.2% in 2009 and 1.6% in 2010; and the Bank of Israel forecast of minus 1.5% in 2009 and 1% in 2010).

Cluse adds, “Compared with many of its EMEA peers, the Israeli economy suffers from relatively few structural problems; we believe this should help it to pick up again relatively quickly once the global economy (and the US economy, in particular) recovers in a more sustained manner.”

UBS’s composite lead economic indicator comprises six variables: manufacturing Purchasing Managers Index (PMI ) for stock of purchases, new order and new export orders; intermediate goods imports; the Tel Aviv 100 Index, and the Bank of Israel quarterly lead indicator. UBS states, “All of these subcomponents registered positive changes in June.” The banks stressed the word “all”.

6 August 2009

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Categories: Business, Israel

The main index of the Tel Aviv stock market (TASE) just keeps on shooting upwards. A 13% climb in the past month. And the trading volume is also up 10%.

Boom or bust? Well, I have always maintained that Israel would be well placed to emerge relatively well from the global recession. Reforms starting back in 1986 have created a sound structure, with no false mortgage market.

Another reason, somewhat cynically, is that as the recession emerged, Israel’s politicians found themselves engaged in a drawnout general election. No time for unimportant matters like saving (or tinkering with) the economy. That was left to Stanley Fisher, Governor of the Bank of Israel, a man trusted by the international community.

The results can be seen in today’s newspaper.

IKEA has 300 stores around the world. Its store in Netanya is one of the top 20 in terms of revenue. In July, it reported record takings at the tills!
In July, the number of people seeking unemployment benefit dropped 5%
Leonard Cohen, Madonna, Pet Shop Boys and others are all performing in Israel this summer. Sell out is an understatement. Despite the high price of tickets, extra shows are being laid on in some cases.

Is the recession over? No. Is the shekel overvalued? Yes. And many will say that the TASE is due for a small correction. However, something very positive is happening in Israel’s economy.

Let’s make sure that the politicians take an extended summer holiday.

5 August 2009

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Categories: Business, Israel, Palestinians

Fatah, the largest block in the PLO and in the Palestinian Authority, is holding its Sixth General Congress this week in Bethlehem.

General opinion holds that Palestinian President, Mahmoud Abbas, will ensure that the discussions take a hard line in tone. The option of armed resistance remains firmly on the table. Even Palestinian schools, responsible for a new generation of peace makers, continue to teach as routine that Israeli cities including Haifa are part of Palestine.

What is disappointing is the lack of state-building. President Obama with European support is actively taking measures to bring this near eternal conflict to an end. In response, Fatah offers a negligible amount of discussion, which deals with creating a functioning economy or implementing administrative reforms.

Bottom line: The corruption and nepotism, for which Fatah was famous for under Chairman Arafat and which led to the Hamas triumph in Gaza, will be protected at all costs.

The Palestinian Prime Minister, Salim Fayyad, is an economist with a strong and hard-earned international reputation. It is through him that much of the hopes of the West are transferred. But as we learn in psychology, such transference is not a guarantee for a new reality. As information from the Congress emerges, it is clear that real power lies outside Fayyad’s spacious office.

The result? For the near future, more political uncertainty, a poor recipe for economic growth. As for policy measures, there will be no new initiatives to build cheap housing, as has happened previously in the Ramallah region. There are no known initiatives to set up regional development councils. (That is often undertaken by NGOs, who then criticise Israel). There will be no restructuring of the public sector finances, as consistently demanded by the IMF.

The intenational media will continue to receive sensationalist copy. The Palestinian person in the street will continue to receive large amounts of valueless rhetoric. No if that where to be registered in the national accounts, the Palestinian economy would be booming today.

30 July 2009

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Categories: Business, Israel, Jerusalem

Israel has been a strong partner of the third industrial revolution, communications. When it comes to cleantech, Israel has shown itself to be a world leader.

Just look at some of the news items over the past month alone.

Siemens has committed to playing a major role in promoting Israeli cleantech.

New water purification techs were shown off at the annual Greentech exhibition in Tel Aviv.

Last week, I accompanied a European investor to several Jerusalem based companies. And discussions have already moved on considerably in some cases.

“The Economist” magazine featured 2 Jerusalem based solar companies, an impressive honour for the city.

There are several overseas investor conferences promoting Israeli clean technology. I am associated with one in London, 20-22 October 2009. Organised through the commercial attache in London, it will place dozens of companies in front of potential strategic partners. The event has already attracted the attention of international media.

What Israel has done is to take cleantech beyond a dream. Almost daily, concepts are being converted into commercial realities, which is capturing the minds of international investors.

28 July 2009

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Categories: Business, Israel

The Israeli stock market kicked off the week with a near 4% jump. This brought it back up to the levels of November 2008.

In parallel, unemployment has hit 8.5% and inflationary fears are on the move. What’s going on?

Listening on the radio yesterday, one of the country’s leading constructors, Akirov, referred to the state of two economies. And Israel is well used to this situation. Despite the growth in GDP over decades, Israel has one of the widest discrepancies amongst Western economies between the top and bottom income earners .

Specifically, Israel’s economic policy makers are faced with several contradictions over the next few months.

For example,the rate of interest stands at 0.5%, down from 4% in August 2008. Alhough the Bank of Israel has announced “no change” for August, everybody knows it will start to rise in order to head off inflation.

However, such a movement will protect the shekel, already seen as overvalued against key currencies like the US dollar.

Now look at the stock market: It has been driven upwards by the performances of Wall Street, low interest and future expectations. However, for the small private investor to start risking money on the back of current improvements is… it’s still a risk. The world may be over the worst of a recession, but the downturn still remains in may key economies.

As for the government, there are signs that a budget will be passed soon. However, the pressures of coalition politics place an enormous strain on the spending side. And politically, Mr Netanyahu has not shown a clear capability to lead and to control.

The governemnt has promised huge structural reforms – opening the supply of electricity to competition, privatising the ports, etc. In opposition, the unions have already demonstrated their strengths.

So what’s the bottom line? It is great to read about the stock market leaping forward. However, economic history teaches us that sustained economic growth, the basis of any solid financial revival, rarely comes through one-off, huge improvements.

The government needs to lead through constructive initiatives and sound decision making. Now that would be a revelation in the Holy Land.

23 July 2009

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Categories: Business, Israel

Israel’s cleantech sector has an impressive global reputation. There are now close to 1,000 companies engaged in the industry, not bad for a country the size of Wales.

In the past week alone, two important pieces of news have been posted. An American solar giant, SunEdison, will be moving into Israel. In parallel, Israel’s Office of the Chief Scientist will start to prioritise funding of projects in the cleantech sector.

These are not isolated items. For example, earlier this week, I visited several companies, developing water and solar capabilities, with a European investor. One stop included Solaris Synergy, utilising solar energy from water. Established less than a year ago, they have 2 beta sites in Israel and strong prospects in Europe.

The Ministry of Industry, through the Israel Export Institute, have already announced the details of an Israeli cleantech misssion to London in October. Participants will engage with potential strategic partners. Last week, I met up with Gil Erez, the commercial attache in London, who is organising the event.

In other words, small and medium sized Israeli companies are playing a strongly growing part in the global cleantech industry.

22 July 2009

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Categories: Business, Israel

Unilever is one of those global giants. Loads of well known household food brands come out of its factories.

In Israel, Unilever has long established itself on the local breakfast table. Annual turnover is estimated at over US$400 million.

To illustrate its importance, anti-Israel boycott groups have tried to target the conglomerate, but without much attributable success. Now, a leaked report in today’s “Yediot” newspaper claims that Unilever will significantly increase its place in the Israeli economy.

Strauss is considered the major seller of ice-creams in Israel with about 60% of the market. It already has a partnership with Unilever. Strauss is now reported as preparing to sell its remaining 49% of its agreement to Unilever.

The value of the contract is not known. It can be assessed against Strauss’s annual turnover of ice cream at around US$150 million per annum.

22 July 2009

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Categories: Business, Israel

I recently commented on twitter about how to “get the right work done”. In a nutshell, simple techniques to focus on what is important and not to be sidetracked. The net result will be ….net results!

I have been working with 2 SMEs in Israel, serious and industrious teams. They are committed to establishing their respective businesses, both very ambitious. They have different backgrounds, both arriving at commercial life with good experience and support groups.

And here’s the interesting point. For all the good intentions, neither were sure how to move forward.

To put it another way: The final goal or vision sounded great, but proved to be too cloudy and near frightening.

In both cases the way forward has been to: –

Define precisely the vision.
Give that vision a time deadline
Working backwards, set out the task leading up to the vision.

Inevitably, this creates new sub-challenges, re logistics and budgets, and that is marvellous. Effectively, the small business owner invites themselves to take a hard look at what resources – time, money, raw materials – will be needed and when.

If they cannot meet that time framework, which they have set, the question arises if they are really so committed. If they are not, time management becomes a very difficult issue.

20 July 2009

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Categories: Business, Israel

Israel’s overall economic activity is measured monthly by an index, which amalgamates several statistics. For June, the index rose 0.2%. Not much, but the first positive rating for nearly a year.

The index links together data on industrial production, revenues from commercial activity, exports and imports.

These figures are also reflected in recent trading on the Tel Aviv Stock Exchange. Over the past month, the main 25 Index has risen around 4.5%. This has been matched by a similar change in the daily volume of trading.

19 July 2009

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Categories: Business, Israel, Palestinians

Three pieces of news have been released recently on the Palestinian economy.

The most encouraging comes from the International Monetary Fund (IMF). Real economic growth (GDP) is expected to rise by 9% in 2009. When you compare that to Israel (around -1.0% or less) and to the UK (at -2.5%), that is remarkable.

This change is promoted by:

The removal of many Israel security restrictions, resulting from a decline in Palestinian violence.
Increased trade between Israel and the Palestinian sector – not just in goods, but also in high tech.

Still lacking is a more open, transparent regulatory financial system. This has yet to be implemented by the Palestinian Authority (PA), despite repeated annual demands of the IMF.

The report had been preceded by the announcement of the World Bank, which intends to contribute an additional US$33.5m to Palestinians in Gaza. The money will be directed primarily towards infrastructure projects. An agreement was signed with the PA’s Prime Minister, an internationally respected economist.

There is no issue over whether the money is needed. What hangs over the investment like a bad smell is the question of transparency.

The PA has no representation in Gaza, which is under the authoritarian control of Hamas. Who can guarantee that the money, effectively given by Western taxpayers, will be used properly and not diverted as has happened in the past? This remain a cause for great concern, yet to be broached by scared politicians.

As if to emphasise the point, a third piece of news was revealed. The President and Foreign Minister of Greece have unwittingly been part of scam to raise money for a hospital in Gaza. The contributions totalled over US$1.5m.

Problem no’ 1: No such hospital existed. Problem no 2: Nobody can trace the money.

17 July 2009

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Categories: Business, Israel

I have written that despite the global recession, the flight path between Israel and the UK has become even more crowded in the past 12 months. And since my posting, Easy Jet have announced that they will also mix it with the old timers.

I have just returned from a trip to the UK. I broke a lifelong association with EL AL and chose BMI. Some initial price research did not reveal a great deal of difference between the two.

I began to compare the service on offer, and took a chance with BMI.

And good service is what I found. Helpful attendants, a calm and quiet manner, a more serious approach to the safety procedures which we all ignore, etc. Even those silly announcements about wishing you a safe flight seem to come with a more personal or an individual approach.

Oh, and as for the BMI lounge at Heathrow Airport, now that is a class act, clearly designed with the frequent flyer in mind.

There is nothing bad about EL AL. What makes the difference is that BMI aim to go the extra few steps and smiles to ensure that you are relaxed and satisfied.

The BMI concept is not new. Dov Gordon is an experienced marketing strategist in Israel. He cites the history of the hotel chain The Four Seasons. Gordon quotes Issy Sharp, the founder of the chain.

Sharp cares about The Golden Rule: Do unto others as you would like others to do unto you. Around 1980 he decided that this would be the guiding value of his growing chain of hotels. They would treat all others – customers, employees, partners, suppliers – as they themselves would want to be treated.

“There was nothing new about this, of course,” said Sharp. “What was new was that we enforced it.”

I am due to go back to the UK in October.

Pages

Palestinian-Israeli economies interlocked

Israeli biotech firms ignore recession

Israel and the recession

The Palestinian economy

Stats show Israel emerging from recession

German, French and Israeli economies.

Soap, Syrian army, cricket; What motivates you?

Can you tour Israel freely?

Israel – a market for overseas investor

UBS sees clear recovery in Israel

Has the Tel Aviv stock market got it right?

Blow for Palestinian economy

Israel cleantech surges ahead

What next for Israel’s economy?

Israeli cleantech sector moves ahead

Unilever shows its confidence in Israel

Time management – 2 brief case studies

Israel’s economic activity in June – clear increase

3 updates on the Palestinian economy

When service is more important than price – an Israeli case study

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