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These articles by Melinda Sherwood and Teena Chandy were published in U.S. 1 Newspaper on June 16, 1999.
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Selling Our HeritageFor all the differences that exist between Princetonand Trenton, the two towns have this much in common: neither has awell-defined plan for drawing tourists. This is a naive mistake, saysPeggy Wall, president and CEO of the Annapolis Conference andVisitors Bureau. “If the tourist business is doing well, everyone’sbusiness is lifted,” she says.
Heritage tourism, which draws in the babyboomer generation, is among
the most lucrative areas of tourism. “Babyboomers are the most-traveled
segment of the population,” Wall says. “They’ve been traveling
all their lives. They want experience and education and they want
to be able to find it without working hard because they have little
time to do it in,” she says.
“Heritage Tourism: There’s money in our history,” will be
the topic at the Mercer County chamber on Thursday, June 17, at 11
a.m. at the Trenton Country Club. Wall will share her experience coordinating
a large-scale, successful effort between business and historical groups
to revitalize the Annapolis economy. Cost: $30. Call 609-393-4143.
Wall, a native of McKeesport, Pennsylvania, earned a BA in political
science from Catholic University and a master’s in urban and regional
planning from Cornell. Before moving to Annapolis, she created and
operated the Inn at Sunderland, a 10-room bed and breakfast in Vermont.
Since joining the Annapolis Visitors Bureau in 1993, she has expanded
the annual budget from $170,000 to $1 million.
Most of the new income came from increased hotel taxes, which Wall
says hotel owners all supported. “Hotels actually asked to have
the lodging tax increase on the premise that one half of the increase
would go to the bureau,” she says. It was viewed as an investment
that was sure to pay off.
There are 7,500 hotel rooms in the Annapolis area. In Trenton there
are none. Wall works with a staff of eight and dedicates a large effort
to marketing and destination sales. Trenton has a two-person staff
and a brochure.
Princeton has no organization dedicated solely to coordinating tourism.
Ramar Inc., a private event and party planning firm at 179 Nassau
Street, is the acting Princeton Visitors Bureau. It mainly siphons
calls to the Princeton Chamber, which distributes brochures.
“My understanding is that there are resources and history there
and nobody is working together and identifying themes,” Wall says.
The absence of a hotel in Trenton is an anathema to her. “I was
very surprised to hear that there was no hotel,” she says. “The
greatest single addition to the economic impact is to make a person’s
stay longer. You’ve invested in someone to get them there one day,
and it costs less to keep them there on the second day.”
Local businesses need to team up with historical and cultural organizations,
says Wall. For businesses who want to get off to a start, she suggests
the following:
Be neighborly. Find out what’s going on in the community,says Wall, and form partnerships. When you’re ready, take it one stepfurther: coordinate strategic hours of opening and closing and setpre-paid prices — anything to make it easier for the tourist.Use the storefront. Wall suggests advertising area eventson the storefront as well.Think regionally. Work with the existing visitor bureauto spread the word about your business — both in print and onthe web.The idea is to bring people to you, Wall says. “Heritagetourists think: `I don’t have to work to go to Mercer County becauseMercer County wants me to come. They’ve made my decision for me.'”Whether you believe Mercer County has something to offer touristsis hardly the point. As Wall puts it: “Palm Springs markets thedesert so I guess anything can be sold.”Melinda SherwoodTop Of PageDigital NervesYou won’t find it in a hotel room drawer, but “Business@ The Speed of Thought” (Warner Books, 1999), the best-sellingbook by Bill Gates, is rapidly becoming the bible of business.Gates himself has already become a sort of Information Age prophet,whose vision of business in the 21st century is affecting CEOs, entrepreneurs,and consultants like Henry Lubas, director of Amper Consulting.”I say it’s a bible only because everyone thinks Gates is thedefinitive authority on technology,” he says. “He’s proposinguses of technology that are right on.”Lubas will discuss some of those concepts in “Implementing a DigitalNervous System” on Thursday, June 24, at 8:30 a.m. at Pine Manorin Edison. The sermon is free. Call Amper Consulting at 732-287-7849.Lubas received a BS in accounting/computer science at Boston Collegein 1981 before joining Arthur Young (of Ernst & Young) as one of thefirst computer auditors. He is a CPA and received an MBA from NewYork University in 1991. Before joining Amper — a division ofAmper, Politziner & Mattia — he worked for Pfizer.The crucial relationship between business and technology was obviousto Lubas early on. “The biggest reason I went into computers wasbecause I was interested in using technology as a competitive weapon.It was something I heard about in 1984: using technology in innovativeways to give companies true competitive advantage,” he says.Only in the past few years, Lubas says, have conditions been ripefor a full-blown technological revolution. “A lot of companiesare striving to use technology but the problem is that historicallyit’s been too expensive to deliver,” he says. “Now it’s cheaper.Software applications are more powerful and are cost effective. Evensmall businesses can use it to garner competitive advantages. Gates’book highlights a lot of the opportunities out there.”As Gates writes: “In many companies the middle managers can beoverwhelmed by day-to-day problems and not have information they needto fix them. They may have reams of data in front of them — literallyreams of paper reports — that are difficult to analyze or correlatewith data in other reports. A sign of a good digital nervous systemis that you have middle managers empowered by the flow of specific,actionable information. They should be seeing their sales numbers,expense breakdowns, vendor and contractor costs, and the status ofmajor projects online, in a form that invites analysis as well ascoordination with other people.”If you want fulfill the Gatesian vision, Lubas suggests doing thefollowing:Figure out where you want to go. This includes very specificgoals and a complete inventory of your company’s strengths and weaknesses.Don’t invest in underpowered technology. A company shouldfirst determine whether its problem pertains to software issues, infrastructureor hardware needs. “We’ll get into a company that says `I needaccounting software,’ and we’re hesitant to do that until we get intoa real sense of where the company is headed,” Lubas says.Involve people in the process. “The worst thing youcan do is make decisions without consulting the people whose livesyou’re affecting,” Lubas says. “You want people to buy intothe concept, or a lot of times you end up with failed projects.”The earlier you get people involved in the transition to digital,the better off you are, he says.In fact, involving employees is crucial. After all, the InformationAge is essentially about converting human intelligence to artificialintelligence. “The concept of Business @ The Speed of Thoughtis to use technology that will replace what was usually done by humanthought,” says Lubas.This may have “worker displacement” written all over it, butLubas assures us that there will be plenty of room for everyone inthe 21st century economy. People who were previously involved in processingtransactions, he says, will now become “value-added” membersof the organization. “Instead of circling invoices that need tobe shipped out, now you have tools at your disposal to spot trendsand analyze,” he says. “Businesses need to adapt new technologyand individuals need to adapt.”– Melinda SherwoodTop Of PageTake Risks to ExportThe global business environment has never been better,says Beverly Pegnato of Pegnato International. “Trade agreementslike the NAFTA (North American Free Trade Agreement) and the WTO (WorldTrade Organization) have brought down a lot of trade barriers, andtrade blocks like the European Union have made it easier for companiesto make an entry into foreign markets.”Foreign companies are not ignoring America either, says Pegnato. “Thisis a great place, a huge market, and their entry has increased thecompetition within America. If you’re not part of the global village,you won’t survive.” Many start-up American companies even findit more profitable to enter European markets first, says Pegnato.”It really depends on your product. Right from the initial stagesyou should spend some time and energy exploring the possibilitiesof doing business outside the country.” Pegnato will conduct theworkshop, “Are You Competing or Just Participating in Exports,”on Tuesday, June 22, at 10 a.m. at the Business Owners Institute inBridgewater. The workshop is free. Call 908-526-1500.Pegnato majored in accounting at Rutgers University, Class of 1977,and has been managing international business and finance for morethan two decades both in the U.S. and abroad. Five years ago in Nutleyshe founded her consulting company to help businesses develop exportstrategies.The United States government and foreign governments offer many incentivesfor foreign trade that companies do not take advantage of, says Pegnato.”The tax incentives for export businesses sponsored by the Departmentof Commerce put into law in 1984 helps small businesses make moremoney by paying fewer taxes.” Foreign governments encourage investorswith incentives like the value added tax, which help you recover apercentage — from 8 percent to 25 percent — of the money youinvest, says Pegnato. “For example if you go to Germany to doa trade show and spend $100,000, you can recover about $15,000, whichis a significant amount of money.”At the workshop Pegnato will focus on market opportunities; financialissues, such as pricing, foreign exchange, and tax-related issues;and regulatory issues, including customs, local laws, and labor issues.”Each of these issues are interdependent and each of them wouldimpact each other,” says Pegnato. “You have to do the researchto find out if your widget has a market in that country, you haveto make a price for it so you can make a profit, and then you haveto deal with the regulatory issues to get your widget in there.”Approaches differ. A low-risk method would be to go through an exportmanagement company or an export trading company, but this method haslow rewards, says Pegnato. “You don’t encounter the foreign buyeror market directly, which reduces risk, but your lack of market intelligenceand market knowledge also precludes you from expanding and exploringthe full potential of that market.”On the other hand, says Pegnato, “you have multinational companiesthat do their purchasing in one country, manufacturing in another,warehousing in yet another country, and selling into a totally differentcountry. It is a complex business arrangement fraught with high risks,but the rewards can be very high.”Pegnato will also cover foreign exchange issues. “You can loseout on a good market opportunity by not being foreign exchange smart,”says Pegnato. American companies may have to deal with currenciesother than the dollar to gain entry into new markets. “There areways you can capitalize on issues related to foreign exchange. Whenyou are dealing with a foreign buyer you have to understand what sideof the table the risk is on and develop strategies to manage the riskbetter.”Doing business in Europe became much easier after the formation ofthe European Union, says Pegnato. “Before the EU you had to dealwith each and every country’s rules. Now if you have entered one country,you have entered every country.” There are differences in eachcountry, she adds, “but there has been a real push to harmonize,normalize, and simplify rules and regulations. The Euro will allowcountries to function in one currency, and things you had to do 10times, you will only have to do once.”Pegnato encourages businesses to consider expanding internationally.”But plan, plan, plan before you do. Do as much research beforeyou invest, or you might find yourself in a deep dark hole.” Peoplewho have experience in exporting can be wonderful resources, saysPegnato. “There is a wealth of information here in the U.S., bothfrom governmental and non-governmental sources.”Do not underestimate your foreign counterparts, and do not ignorethe cultural impact, cautions Pegnato. “Just because they don’tspeak English does not mean they do not have the ability to do business.Culture cannot be easily analyzed or categorized, it is far more pervasiveand underlined and affects everything from the way you do businessto the relationships that you form.”Culture is embedded in laws and mores, and it forms part of the fabricof a country’s legal system, says Pegnato. “For example, biotechnologyproducts have a tough time making an entry in Europe. A lot of Europehas banned genetically engineered agricultural products because itis contrary to their historical view of life.”Most American businesses seek out foreign distributors, and 70 to80 percent of all initial relationships fail for cultural reasons,says Pegnato. She cites the example of an American company that terminateda longstanding relationship with a Japanese distributor and had toface the consequences. The distributor took his case to the courts,the finance ministry intervened, and the company could not exportany of its products to Japan until the problem was resolved.”The American company thought they could change a long-standingrelationship just like that,” says Pegnato. “You can do thatto a guy in Pennsylvania but it might not work in another country.Americans are used to changing people or changing banks when theyfeel like it but it is different in other countries,” she says.”You’re in it to do business, not to have legal problems, andfinancial issues. You will run the risk of putting yourself out ofbusiness if you do. If you are going to Japan to be a rabble rouserthat is different, but otherwise that is not your goal.”Be aware, and consider the culture of the country and translate thatinto your business dealings with them, says Pegnato. “The Americanperspective does not prevail all over the world. Think of that asyour premise and you will do well.”– Teena ChandyTop Of PageNew Energy DealsStarting August 1, says Frederick F. Butler, businessescan get energized in new ways. “There lots of ways to do new andexciting things and save money on energy bills.” Butler, a Democrat,is the just-appointed commissioner of the Board of Public Utilities,and he will speak to the Middlesex Chamber on Friday, June 18, at8 a.m. at the DeVry Institute on Route 1 North.In a panel entitled “Energy Deregulation: what will it mean foryou and your business,” Butler will be joined by John S. Wisniewski,an assemblyman from the 19th district, and John R. Murray, associatedirector of facilities operations for Bristol-Myers Squibb. Murrayis also the energy council chairman of the New Jersey Business andIndustry Association. For $15 reservations, call 732-821-1700.The New Jersey Builders Association will hear another take on energyderegulation, this one from GPU Energy, on Thursday, June 17, at 7:30p.m. at the Eatontown Sheraton. Frank Migneco, supervisor ofresidential programs, will give a morning-long presentation on energy,Y2k compliance, and new service issues. For the invited builder members,the breakfast is free. Call Sharon Fullagar at 973-455-8389.Only good things will happen with deregulation, says Butler: “Mandatedrate reductions will kick in on Saturday, August 1, exactly.”In Public Service Electric & Gas territory, all customers will geta 5 percent reduction at 12:01 a.m. that day. Starting next year,the first part of the gross receipts and franchise tax kicks in, andthat will add another 5 percent tax reduction. By year three of thisfour-year transition period, the total rate reduction on public servicewill go from 5 percent to 13.6 percent and then to 18.6 percent.Everybody wants to compare energy changes to the telephone deregulation,but that equates apples to oranges, insists Butler: “We are notgoing to make the same mistakes again. It will be much more controlled.”No slamming. For instance, energy clients will not needto worry about arbitrary changing of a customer’s service withoutpermission. Slamming was and is a very big problem for telephone companies,but the board is taking preemptive steps against it. “They wouldbe fined $10,000 per day, per slam,” says Butler.No operating without a license. Unlike telephone companies,utility companies cannot operate without a state license. If theymisbehave, says Butler, “we can pull the license.”Less complicated bills. Energy bills will be easy, comparedto telephone bills, says Butler.If your favorite charity has been tapping PSE&G largesse, don’tworry that the pipeline will dry up, says Butler. The utility mayneed to tighten its belt, “but it won’t come out of the charitywork. That is as much public relations for them as it is charity.And a new societal benefits charge will be in the law.”The good news for the energy companies is that they will be able tosell energy in the rest of New Jersey and will be allowed to offerother competitive services, such as appliance repair contracts.The bad news for the small contractor is that the energy firms arenow allowed to offer appliance repair contracts. “That is drivingsome of the small contractors bananas, but hopefully the consumeris better off,” says Butler.The good news for business clients is that they will be able to shopfor the energy. “They can purchase the kilowatt hours from whoevercan give the better price,” says Butler, “or they can paymore to get green energy. If enough people switch to green energywe will all benefit. More windmills will go up. If a coal plant inPennsylvania sees its revenues down because people are using greenenergy, maybe they will take one of their coal plants out of service.”A native of Linden, where his father was a purchasing agent and hismother a legal secretary, Butler studied at Villanova, Class of 1968,and has a master’s degree in international studies from Johns Hopkins.He taught in the Washington, D.C., public schools, pursued PhD studiesin political science at Rutgers, directed capital budgeting for thestate treasury department, and taught at Rutgers’ Eagleton Institute.Along the way he has sung bass for Princeton Pro Musica, held electiveoffice in Dunellen and Plainsboro, and he is now vice chairman ofthe Plainsboro planning board.After 17 years on the staff of the New Jersey General Assembly Democraticoffice, most recently as executive director, Butler announced hisresignation. Almost immediately, Governor Whitman put his name upfor the board job; he was nominated in February and sworn in on March.”As a commissioner I am one of three decision makers, and it islittle less hectic,” says Butler. “In the legislature we coveredA to Z, agriculture through zoos. I was staff. Now I havestaff.”Top Of PageE-Commerce and the ArtsStudents seeking a masters degree in Business Administrationat the Rutgers Graduate School of Management have two new options– E-commerce and Arts Management. “Electronic commerce isa rapidly expanding field,” says Howard Tuckman, dean. “Tomorrow’smanagers need to understand the technology of E-commerce, its potentialimpact on the way business activities are managed, and apply traditionalmanagement disciplines to it.”The new concentration in E-commerce requires course work in Internettechnology, and electronic commerce and marketing. A new course willbe offered next fall in the development of a virtual business.”As the New Jersey Performing Arts Center broadens its own program,the demand for well-trained arts managers has grown,” says PatKettenring, director of the school’s Business and the Arts Program.”There simply aren’t enough qualified graduates to meet that demand.”The 12-credit concentration, the first of its kind in the state, isfor persons interested in a management career in the non-for-profitsector of the performing and fine arts.Other existing MBA concentrations include computers and informationsystems, entrepreneurial management, finance, human resources management,international business, marketing, professional accounting, and strategicmanagement. Call the Department of Management at 973-353-5656.Corrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
