{"id":8585,"date":"2023-01-01T04:36:22","date_gmt":"2023-01-01T04:36:22","guid":{"rendered":"https:\/\/www.stellaris.co.nz\/?p=8585"},"modified":"2023-02-01T05:04:28","modified_gmt":"2023-02-01T05:04:28","slug":"january-newsletter-2","status":"publish","type":"post","link":"https:\/\/www.stellaris.co.nz\/index.php\/2023\/01\/01\/january-newsletter-2\/","title":{"rendered":"JANUARY NEWSLETTER"},"content":{"rendered":"\n\n[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;section&#8221; _builder_version=&#8221;3.22&#8243;][et_pb_row admin_label=&#8221;row&#8221; _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.4.4&#8243;]<h1><span style=\"color: #000000;\"><strong>Happy New Year to you all!<\/strong><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">The year ahead is full of opportunity for strategic decision making.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yes, there has been some disturbing news in recent weeks: the lowest ever business confidence rating, the highest inflation since last century, the government passing 400 pages of amendments to a law they passed just 48 hours earlier, 40% increase in violent crime, a war in Ukraine etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time there has been some good news:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">I was elected to the Bay of Plenty Regional Council<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Scientists have found cationic nanomaterials\u00a0that can target specific areas of fat (<\/span><a href=\"https:\/\/www.engineering.columbia.edu\/news\/positively-charged-nanomaterials-treat-obesity\"><span style=\"font-weight: 400;\">https:\/\/www.engineering.columbia.edu\/news\/positively-charged-nanomaterials-treat-obesity<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">146 new species were discovered in 2023 (<\/span><a href=\"https:\/\/www.goodnewsnetwork.org\/146-new-species-added-in-2022\"><span style=\"font-weight: 400;\">https:\/\/www.goodnewsnetwork.org\/146-new-species-added-in-2022<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Retail spending fell $166 million in December and House prices are becoming more affordable.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This month I start a short series on the basics of economics. Understanding economic theory will make you better at strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Enjoy!<\/span><\/p>[\/et_pb_text][et_pb_text admin_label=&#8221;Text&#8221; _builder_version=&#8221;4.4.4&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;]<h2><span style=\"color: #000000;\"><b><\/b><\/span><\/h2>\n<h2><span style=\"color: #000000;\"><b><\/b><\/span><\/h2>\n<h2><span style=\"color: #000000;\"><b><\/b><\/span><\/h2>\n<h2><span style=\"color: #000000;\"><b><\/b><\/span><\/h2>\n<h1><span style=\"color: #000000;\"><b>ECONOMICS<\/b><\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Economics is a social science. In other words, it attempts to explain how people behave. In particular economics is about how people make choices when their wants are greater than the resources available to satisfy those wants.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If there is more than enough of something to go around and it is easy to get then that something tends to be free. Examples are fresh air and fishing off the wharf.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, we tend to always want more than we can have so we have to make choices and create priorities. Our first priority will have first call on our resources and then our second priority gets resources and so on and so forth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Economics is about how you and I allocate resources to make those choices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Economics does not have to be about money. For example, we make choices about how we use our time which is limited or <\/span><i><span style=\"font-weight: 400;\">scarce<\/span><\/i><span style=\"font-weight: 400;\"> relative to our wants. If we choose to do some gardening there is a cost in terms of the opportunity to go shopping perhaps. If we choose to watch TV there is a cost in terms of the opportunity to read a book or get some extra sleep. If we choose to be a high performing athlete there is a cost in the pain and pleasure of training. Everything then has what economists call and <\/span><i><span style=\"font-weight: 400;\">opportunity cost<\/span><\/i><span style=\"font-weight: 400;\">. Opportunity costs is not always measured in dollars and cents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Choices are impacted by one\u2019s values. For example, I could choose to buy a McDonalds Classic Share meal for 4 people for $30 or a New World Meal for Four for $25. Which is the rational choice? The first has limited nutrition but is fast and easy. The latter is very healthy but takes 30 minutes to prepare. If I value my time at more than $10 per hour and am not concerned about my health, then the rational choice is to buy the McDonalds meal. Or on the day I might not have 30 minutes to spare between meetings so choose a fast meal. Or I might be trying to impress someone with my cooking skills so am happy to spend time in the kitchen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is why economics forecasts can be a bit hit and miss. So much depends on the values which drive decisions. For this reason, a lot of data is <\/span><i><span style=\"font-weight: 400;\">aggregated<\/span><\/i><span style=\"font-weight: 400;\"> and we make our best guess hoping that there is some sort of law of averages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/span><\/p>\n<h4><span style=\"color: #003366;\"><b>KEY POINTS:\u00a0<\/b><\/span><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">People don\u2019t always seem to act rationally but really, they are just basing their reasoning on different values and emotions than yours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is an opportunity cost to any decision.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Economics is the study of how people allocate resources when they have to prioritise between choices.<\/span><\/li>\n<\/ol>\n<p><!-- \/divi:image --> <!-- divi:image {\"id\":8100,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} --><\/p>\n<figure class=\"wp-block-image size-full\"><\/figure>\n<p><!-- \/divi:image --> <!-- divi:image {\"id\":8101,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} --><\/p>\n<figure class=\"wp-block-image size-full\"><\/figure>\n<p><!-- \/divi:image --> <!-- divi:image {\"id\":8102,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} --><\/p>\n<figure class=\"wp-block-image size-full\"><\/figure>\n<p><!-- \/divi:image --><\/p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.4.4&#8243;]<h4><strong><span style=\"color: #003366;\">STRATEGIC QUESTIONS:<\/span><\/strong><\/h4>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you understand the values and emotions of your customers?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How can you raise the level of priority for your customers?<\/span><\/li>\n<\/ol>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/www.stellaris.co.nz\/wp-content\/uploads\/2023\/02\/ANZ-stats.png&#8221; title_text=&#8221;ANZ stats&#8221; _builder_version=&#8221;4.4.4&#8243;][\/et_pb_image][et_pb_divider color=&#8221;#000000&#8243; _builder_version=&#8221;4.4.4&#8243;][\/et_pb_divider][et_pb_text _builder_version=&#8221;4.4.4&#8243;]<h3><span style=\"color: #003366;\"><b>NEWS TO NOTICE<\/b><\/span><\/h3>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New Zealand has a new Prime Minister -Will Chris Hipkins be a new broom?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inflation stays at 7.2% &#8211; How has a cumulative 14% increase in prices over the last two years affect your business? (Food and vegetables up 20% in the last 12 months)?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Four sectors have \u201cFair Payment Agreement\u201d applications &#8211; is your sector included? <\/span><a href=\"https:\/\/www.mbie.govt.nz\/business-and-employment\/employment-and-skills\/fair-pay-agreements\/fpa-dashboard\/\"><span style=\"font-weight: 400;\">https:\/\/www.mbie.govt.nz\/business-and-employment\/employment-and-skills\/fair-pay-agreements\/fpa-dashboard\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pubs run dry of beer (well CO<\/span><span style=\"font-weight: 400;\">2<\/span><span style=\"font-weight: 400;\"> actually)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Te Pukenga is scrapping all local polytech brands and dissolving the work-based learning board.<\/span> <a href=\"https:\/\/www.xn--tepkenga-szb.ac.nz\/news\/work-based-learning-subsidiary-to-transition-into-te-pukenga-at-end-of-year\/\"><span style=\"font-weight: 400;\">https:\/\/www.xn--tepkenga-szb.ac.nz\/news\/work-based-learning-subsidiary-to-transition-into-te-pukenga-at-end-of-year\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Secondary school teachers are going on strike to get paid more even though fewer than 40% of kids actually attend school regularly.<\/span> <a href=\"https:\/\/www.educationcounts.govt.nz\/statistics\/attendance\"><span style=\"font-weight: 400;\">https:\/\/www.educationcounts.govt.nz\/statistics\/attendance<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government has introduced the Water Services Legislation Bill on 8\/12\/23 to amend the Water Services Entities Act 2022 they passed on 7\/12\/23 <\/span><a href=\"https:\/\/legislation.govt.nz\/bill\/government\/2022\/0210\/latest\/LMS794055.html\"><span style=\"font-weight: 400;\">https:\/\/legislation.govt.nz\/bill\/government\/2022\/0210\/latest\/LMS794055.html<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dairy prices have had a pretty unspectacular summer. WMP prices have slid about 5% since the beginning of December.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The USA Department of Justice is suing Google in an effort to break up its advertising business <\/span><a href=\"https:\/\/www.cnbc.com\/2023\/01\/24\/doj-files-second-antitrust-lawsuit-against-google.html\"><span style=\"font-weight: 400;\">https:\/\/www.cnbc.com\/2023\/01\/24\/doj-files-second-antitrust-lawsuit-against-google.html<\/span><\/a><\/li>\n<\/ul>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.4.4&#8243; min_height=&#8221;152px&#8221; custom_padding=&#8221;18px|||||&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_divider color=&#8221;#000000&#8243; _builder_version=&#8221;4.4.4&#8243;][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.4.4&#8243;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_text _builder_version=&#8221;4.4.4&#8243; min_height=&#8221;186px&#8221; custom_margin=&#8221;-90px||-8px|||&#8221; custom_padding=&#8221;||0px|||&#8221;]<h3><span style=\"color: #003366;\"><b>LET&#8217;S TALK STATISTICS<\/b><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Numbers tell a story. How do these numbers tell a story for your business?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I have included a random range of statistics. Please let me know other statistics you would like to follow.<\/span><\/p>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/www.stellaris.co.nz\/wp-content\/uploads\/2023\/02\/stats.png&#8221; title_text=&#8221;stats&#8221; _builder_version=&#8221;4.4.4&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.4.4&#8243;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_text _builder_version=&#8221;4.4.4&#8243;]<h5><span style=\"color: #003366;\"><b>ABOUT THIS NEWSLETTER<\/b><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">RON SCOTT is an elected member of the Bay of Plenty Regional Council but nothing in this newsletter should be taken as Council policy. They are my views or those of the sources cited.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ron is a JP, a chartered Member of the Institute of Directors and holds degrees in economics, history and geography. He is a director of the Royal Foundation of the Blind and Chair of SILC Charitable Trust.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">STELLARIS is your one stop shop for all things Governance. Our services include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Training workshops for trustees and directors \u2013 We offer a range of workshops covering Understanding financials, Meeting procedure, Strategic planning, Expectations of an employer, Health and safety, Creating a strategic plan and more. We adjust the level of the training to suit the level of your board members.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Meeting facilitation \u2013 whether it is a strategic planning session, a discussion group or an annual team building day give us a call.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coaching and mentoring of key staff and board members.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Give us a call on 0800 23 23 78 or email <\/span><a href=\"mailto:info@stellaris.co.nz\"><span style=\"font-weight: 400;\">info@stellaris.co.nz<\/span><\/a><span style=\"font-weight: 400;\"> to find out how Stellaris can best help you.<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.4.4&#8243;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_divider color=&#8221;#000000&#8243; _builder_version=&#8221;4.4.4&#8243;][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.4.4&#8243;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_text _builder_version=&#8221;4.4.4&#8243; hover_enabled=&#8221;0&#8243;]<p><a href=\"https:\/\/www.stellaris.co.nz\/wp-content\/uploads\/2023\/02\/January-2023-Newsletter-1.pdf\">DOWNLOAD <\/a>the January Newsletter<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.4.4&#8243;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.4.4&#8243;][et_pb_social_media_follow follow_button=&#8221;on&#8221; _builder_version=&#8221;4.4.4&#8243;][et_pb_social_media_follow_network social_network=&#8221;facebook&#8221; url=&#8221;https:\/\/www.facebook.com\/stellarisltd&#8221; _builder_version=&#8221;4.4.4&#8243; background_color=&#8221;#3b5998&#8243; follow_button=&#8221;on&#8221; url_new_window=&#8221;on&#8221;]facebook[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=&#8221;linkedin&#8221; url=&#8221;https:\/\/www.linkedin.com\/company\/stellaris-ltd\/?viewAsMember=true&#8221; _builder_version=&#8221;4.4.4&#8243; background_color=&#8221;#007bb6&#8243; follow_button=&#8221;on&#8221; url_new_window=&#8221;on&#8221;]linkedin[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n\n","protected":false},"excerpt":{"rendered":"<p>The year ahead is full of opportunity for strategic decision making.<br \/>\nYes, there has been some disturbing news in recent weeks: the lowest ever business confidence rating, the highest inflation since last century, the government passing 400 pages of amendments to a law they passed just 48 hours earlier, 40% increase in violent crime, a war in Ukraine etc.<br \/>\nAt the same time there has been some good news:<\/p>\n","protected":false},"author":2,"featured_media":8619,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[6,1],"tags":[64,81,90,62,74],"_links":{"self":[{"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/posts\/8585"}],"collection":[{"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/comments?post=8585"}],"version-history":[{"count":20,"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/posts\/8585\/revisions"}],"predecessor-version":[{"id":8630,"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/posts\/8585\/revisions\/8630"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/media\/8619"}],"wp:attachment":[{"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/media?parent=8585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/categories?post=8585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.stellaris.co.nz\/index.php\/wp-json\/wp\/v2\/tags?post=8585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}