Tuesday, October 18, 2016

Could 2016 Electoral Split give rise to the American Phoenix?


2016 US elections are fraught with a rancorous debate and character assassinations. At the moment there is total chaos which reflects a severe split among the American voters. On the surface it is hard to comprehend why there is so much polarization. But a closer inspection of trends shows this is not a new phenomena but has been growing steadily over the past decade.
Electoral College is uniquely American way of electing the US President, where using a "winner-takes-all" method, electoral votes for are all (but 2) states are pledged to the candidate who wins the most votes in a specific state. This is why everyone focuses on the state-level counts to see which states are "Red" vs. "Blue".
However, due to this oversimplification lot of information about the voter preferences are lost which might help to explain the current degree of polarization. University of Michigan professor Mark Newman developed different ways to visualize the past election results of 2012 using voter data at the congressional district on a geographic map as well as on a cartogram, where sizes of states re-scaled according to population instead of area and the color scale ranging from red (for 70% Republican or more) to blue (for 70% Democrat or more), Maps of the 2012 US presidential election results
As is clearly evident from the above Chart (D) in 2012 President Obama, Democrat (Blue) was reelected despite some massive opposition of very strong Red areas.
While Pundits are predicting a victory for the Democratic candidate (Clinton) in Nov, 2016, it is worrisome to think what would happen in the "Red" areas who are looking to the Republican candidate (Trump) to represent their points of view. Could this turn out to be like the election of 1860 when Abraham Lincoln won but later had to deal with the American Civil War. Could this once more be the Rise of the American Phoenix!!!

Thursday, October 13, 2016

Planning: Early Decision NOT always an Easy Decision



Deciding which college to attend is one of the biggest decisions we (or our parents) make in our lives. It is especially hard for the 17-yr old teenager brain especially if they try to consider the possibility that this choice could possibly impact the rest of their lives. For these same reasons, we parents constantly fret about how our kids are coming along with their college apps. These days that's all we seem to talk about at our house.
As if it wasn't hard enough to choose among thousands of colleges based on multiple criteria (like the fees/budget, location, areas of study, reputation, admissibility etc.) we also need to choose when to apply to those colleges. Some of the more selective ones offer the option of applying Early (by Nov 1) in addition to regular deadline of Dec 31st
However, there is a slight twist to these Early applications - Early Action or Admit (EA) vs. Early Decision (ED). If you apply early decision, you sign a binding contract agreeing to enroll if you're accepted. Because of this binding agreement to enroll, you can only apply to one school ED. (Single choice Early Action, is like EA but you can apply only to one college)
Some of the popular and top schools like Brown, Boston U, CMU, Cornell, Dartmouth, Duke, Johns Hopkins, Northwestern, NYU, Tufts, and U Penn ... offer higher rates of acceptance to their ED applicants which account for 40-60% of the incoming class of undergraduates. According to Washington Post "At 37 schools the early-decision share of enrolled freshmen in 2015 was at least 40 percent."
Despite the inherent advantage of higher acceptance rates for ED, the decision is not so easy. In my analysis of the 2015 ED data of 64 schools (from Washington Post article) I see two distinct groups, ones where there is a significant advantage, while the other with not so clear advantage.
Let me illustrate my analysis (using applications data from 2015 Common Data Set) for two of the popular highly selective schools.Complete List of Early Decision Schools
Both Cornell and NYU picked about 40% of their incoming class from ED applicants who were 11% and 15% of the total applicants respectively. Acceptance rates of ED applicants was 26% at Cornell and 29% at NYU, which means acceptance rates for regular decision (RD) were 14% at Cornell and 34% for NYU.
Assuming all other things equal between ED and RD (a big assumption), you were twice as likely to get accepted into Cornell if you applied ED (26%) vs RD (14%), while you would have been better off applying RD (34%) at NYU instead of ED (29%), while keeping open all your options. Above chart shows % improvements in Acceptance rates expected for Early Decision over Regular Decision.
So think carefully before you apply - Early decision is NOT always the best decision.

Sourcing: Carpets from Persia, Time is right now...



What would life be without the Belgian chocolates, French fragrances, Indian spices, Chinese silks, Italian shoes .. a bit bland don't you think. Thanks to colonial expansions and global trade, people around the world have been able to enjoy these fine things for more than four centuries.
While most finer luxuries of life are available in the US a few things are still hard to get - at least legally, like the Cuban cigars which have been banned ever since the cold-war dispute with the island nation. But that is about to change as the 50-year old ban is about to be lifted.  Another thing that's hard to come by are the handmade rugs from Iran.  Ever since 1995, a total global trade embargo on Iran to punish them for their Nuclear forays blocked them from exporting their oil, natural gas, and carpets to the word. Again, recent diplomatic breakthroughs have led to unfreezing their US assets and allowing them to trade freely.
But this may have come too late for Iran's carpet industry which has suffered during the total blockade resulting in loss of their production capacity while countries like China and India have stolen much of their demand by selling cheaper (machine-made/hand-made) carpets as inferior substitutes. Iranians kept their industry going while waiting for the ban to lift and and made a lots of rugs. Now with embargo lifted all this inventory is starting to show up at the US wholesalers (on both the East and West coasts) who are selling them on internet auction sites (like eBay).  Some of these are going at 60-80% discounts off their prices from 20-yrs ago.
There is just no substitute for the real thing, and right now may be the best time to buy a genuine "Persian" rug.  Prices are at all time low and there is lots of inventory. But this won't last forever ... so act quickly so you can enjoy one of the finest things in life and preserve it for the next gen...
* Learn how to buy a good rug.  "Persian" is not the same as "Oriental", which is anything that is made in India/China/Pakistan/Nepal...all except Iran, and they have been repeatedly accused of violating many international child labor laws in their 500 yrs old carpet weaving industry which got started with help of the Persian artisans who came with the Mogul rulers to India.

Sourcing: Carpets from Persia, Time is right now...



What would life be without the Belgian chocolates, French fragrances, Indian spices, Chinese silks, Italian shoes .. a bit bland don't you think. Thanks to colonial expansions and global trade, people around the world have been able to enjoy these fine things for more than four centuries.
While most finer luxuries of life are available in the US a few things are still hard to get - at least legally, like the Cuban cigars which have been banned ever since the cold-war dispute with the island nation. But that is about to change as the 50-year old ban is about to be lifted.  Another thing that's hard to come by are the handmade rugs from Iran.  Ever since 1995, a total global trade embargo on Iran to punish them for their Nuclear forays blocked them from exporting their oil, natural gas, and carpets to the word. Again, recent diplomatic breakthroughs have led to unfreezing their US assets and allowing them to trade freely.
But this may have come too late for Iran's carpet industry which has suffered during the total blockade resulting in loss of their production capacity while countries like China and India have stolen much of their demand by selling cheaper (machine-made/hand-made) carpets as inferior substitutes. Iranians kept their industry going while waiting for the ban to lift and and made a lots of rugs. Now with embargo lifted all this inventory is starting to show up at the US wholesalers (on both the East and West coasts) who are selling them on internet auction sites (like eBay).  Some of these are going at 60-80% discounts off their prices from 20-yrs ago.
There is just no substitute for the real thing, and right now may be the best time to buy a genuine "Persian" rug.  Prices are at all time low and there is lots of inventory. But this won't last forever ... so act quickly so you can enjoy one of the finest things in life and preserve it for the next gen...
* Learn how to buy a good rug.  "Persian" is not the same as "Oriental", which is anything that is made in India/China/Pakistan/Nepal...all except Iran, and they have been repeatedly accused of violating many international child labor laws in their 500 yrs old carpet weaving industry which got started with help of the Persian artisans who came with the Mogul rulers to India.

Strategy: Amazon Moves to takeover Campus Bookstores

This summer during my son's college visits I noticed many top-notch institutions (in the Midwest and on both the coasts) have teamed up with Amazon to let them takeover their campus bookstores. Barnes&Noble is out - Amazon is in.

Almost overnight Amazon has transformed itself from an online e-commerce site to a demand fulfillment/logistics business.  They are growing their "real world" presence to support their enormous "online" presence and starting to offer next-day delivery service in major metros by opening new warehouses, building a door-to-door delivery service using Amazon vans, opening retail outlets... so their move to takeover campus bookstores is an extension of the same strategy. They get pre-existing storefronts located in premium campus locations, right next to their target customers (students) which can also serve as convenient pickup spot for all the stuff they already buy online.
This move is also good for campus bookstores - they remain relevant on the campus and to their student body.  They also receive a small cut of the online Amazon sales incl. the textbook orders which had significantly shifted away from the bookstores to online vendors like Amazon.
These new Amazon stores look nothing like the previous bookstores and have been transformed into a new type business which is more relevant to the students. Design of these stores closely resembles the retail store designs of Apple, Microsoft, UPS and FedEx ... showing very strong branding, consistent design across campuses, very limited product displays (low inventory), kiosks for order processing, most orders are placed online, and customers show-up to pick-up their item.
Its clear Amazon wants to sell them much more than just books and spirit ware. Lots of the millennials already buy many of their day to day supplies online instead of going to the big-box stores.  By seamlessly integrating their online catalog/ordering, Amazon will be able to deliver the same experience without all that inventory... that's not just good its brilliant.  
Not long before this idea moves beyond college campuses, so Walmart, Target, FedEx, USPS, UPS... should all watch-out or be Amazoned!!!