Sunday, October 02, 2005

Wrong solution

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It is interesting to note that the food on wheels scheme may not be renewed after next year. One of the reasons given is the poor response as out of the original 30 or so licence given out only about 4 are still plying. This is not surprising as when the scheme first started, interested party were put to a ballot. This created a bunch of opportunist who don't have a business plan but just hoping to reap benefits from the predicted scheme, trying their luck with those with a business plan and strategies. A result of this that more than half who are lucky enough to get a licence did not even start their business. And it was reported at the time that the duo who first approached the authorities with the scheme did not even got a licence. Whether theirs was a successful venture unfortunately, is anybody's guess. On the other extreme, now we see more and more HDB shop space put up for balloting. In this scheme people with deep pockets will triump over the less fortunate. Hence now we see a 24-hour convenience store chain opening up in Hdb void decks where mamak stores used to be.


Two contrasting schemes for two contrasting business models. One a 'new' and untested business concept tied to a 'first-pass-the-post' selection system (food on-wheels); and another tried and tested conventional model tied to 'winner-takes-all' system (shop space). One would expect the former being a 'new' model be more suitable for one would good business plan since there is no model to guide or follow. In the latter however there are ample examples to follow hence the chance of success is higher even in the absence of sound business plan. Therefore the licencing selection process is highly inappropriate.

In a 'new' business model with no models to follow, a sound business plan is important. Every steps has to be planned from food selections, number of food vans, operating hours and operating sites, among others. Any of these factors can make or break a business and there are no examples to learn from. Therefore it would be more appropriate if the selection process is not based on luck but on business plan (ideal) or on commitment (bidding).

In the traditional tried-and-tested method of doing business where a person with a particular skill can ply his trade, bidding selection will not be ideal. This is because the small people would never be able to compete with the big boys when it comes to bidding. For most of the small people, the business is probably the first effort or even forced upon due to circumstance example retrenchment. Therefore their bidding effort must be necessarily disadvantaged. I do not blame private establishment for such selection practices but when it comes to the government agencies, something must be amissed. This is because it has been harping on helping the misfortunate. When previously HDB shops and void decks are a free-for-all for anyone who wants to set up shop, now it is bidding. Where does that leave the small people?

Maybe government agencies should relook into their primary role and not their bottomline. This may not be easy because of the current financial climate imposed by government. However, the small and common man must not be neglected. Otherwise they will forever be trapped in the cycle of despair and poverty.

1 comment:

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