World is Flat Group E

The World is Flat Group E

I tried to embed these as videos but it wouldn't work….The first one isn't much to see but interesting to listen to especially considering who it is coming from. -Meg

Also here is a great link from the movie A Beautiful Mind which talks about Adam Smith in reference: Capitalism/The Invisible Hand

World Is Flat: Group E Discussion #1: Rule #1 (p442)
According to Friedman, there are certain rules that companies live by in the flat world. Rule #1 states, "When the world is flat, whatever can be done will be done. The only question is whether it will be done by you or to you."… Any comments? Or how does this relate to you or the fashion industry? Specifically, any examples of small businesses with a global reach? Or maybe your plans in entering the flat world as a soon to be business woman?-EP

World Is Flat: Group E Discussion #2: Rule #2 (p447)
Rule #2: "This is an outgrowth of rule #1. Because we are in a world where whatever can be done will be done, the most important competition today is between you and your own imagination." This rule is especially interesting to want-to-be entrepreneurs I would think because the thought behind this is that entrepreneurs create their business based on their own creativity and imagination- or their competition with themselves.-EP

World Is Flat: Group E Discussion #3: Rule #3 (p449)
Rule #3: "And the small shall act big… One way small companies flourish in the flat world is by learning to act really big. Imagination is necessary, but not sufficient. You have to be able to implement what you imagine. And the key to being small and acting big is being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider, and deeper." I like "the mouse replacing the elephant" metaphor that Ghandour uses (p451). In other words small companies are now at a level playing field with large corporations because technology and other innovative tools are at the tip of their fingers and are at a cost that is affordable. -EP

Companies and the Flat World Summary (Chapter 11)- EP

Economist Paul Romer states, “Everyone wants economic growth, but nobody wants change.” “Unfortunately you cannot have one without the other” (Friedman, p441). According to Friedman, the companies that have managed to survive in the flat world are those that have adapted the best to change and those that take full advantage of the flat world’s possibilities. Chapter eleven examines eight rules that companies in the flat world live by.

Rule #1: “When the world is flat, whatever can be done will be done. The only question is whether it will be done by you or to you.”
Since the flattening of the world, people are now able to connect at any time of day across all geographic and legal boundaries. This connectivity brings lower costs and the ability to ‘shop around’, more innovative and widespread ideas, larger markets and workforces, and a quick circulation of ideas. Many multinational companies are now spreading their operations out across the world in order to reduce risk and to take advantage of each country’s resources and specializations. Entrepreneurs entering into the flat world do not have to worry about geographic location as a barrier to resources, employees, or their market. “All I had to think about [when I started this company] was: Where was the best resource to get something done,” said global entrepreneur Arijit Sengupta (Friedman, p447). These new business models that allow individuals and companies of any size to compete on a global scale are unlike any before and show that “whatever can be done is being done” (Friedman, p447).

Rule #2: “Because we are in a world where whatever can be done will be done, the most important competition today is between you and your own imagination.”
It is no longer a CEO who makes all the decisions in a company and it is no longer large companies that rule the market. Today, individuals either employees or customers are allowed to ‘stretch their imagination to create new products and services’ that cater to a more specific market (Friedman, p447). While companies are still competing with each other, it is the competition within one’s self that is driving the new innovative changes in today’s marketplace. Because an individual is now capable of doing so much more than he or she used to, we no longer rely on companies to show us what they are capable of. Instead we are showing them what we want and what we, as individuals, are capable of.

Rule #3: “And the small shall act big… One way small companies flourish in the flat world is by learning to act really big. Imagination is necessary, but not sufficient. You have to be able to implement what you imagine. And the key to being small and acting big is being quick to take advantage of all the new tools of collaboration to reach farther, faster, wider and deeper.”
Friedman uses the example of Fadi Ghandour, founder of DHL, to illustrate a small company acting big. In Ghandour’s case the flattening of the world allowed for his company to be able to compete with a large company through the use of technology, imagination, and a competitive edge. He was able to cut costs that his competitor was not and also used technology that was ahead of his competitor’s. “You don’t need to be a giant, you can find a niche, and technology will enable us to compete with the big boys” (Friedman, p453). Ghandour is just one example of a small company who recognized that the rules of the flat world were different and that he could take advantage of what it had to offer in order to maximize his business. Ghandour stated, “I was big locally and small internationally—and I reversed that” (Friedman, p454).

Rule #4: “And the big shall act small…One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big.”
The birth of the “self-directed consumer” is an attribute of the flat world that has truly changed the way businesses operate. Now, “instead of companies being in control of consumers’ behavior, consumers are in control of the companies’ behavior” (Friedman, p456). Large companies are acting small by allowing customers to make their own decisions. Companies are setting up a “buffet” for their customers in which they “serve themselves.” Friedman points out, “They [companies] are actually making their customers their employees and having them pay the company for that pleasure at the same time” (p455). Although it seems like an oxymoron this business model has proven to be a success. Take Starbucks for an example; It offers convenience, independence, and creativity to customers all the while allowing the company to act small and the customer to act big.

Rule #5: “The best companies are the best collaborators. In the flat world, more and more businesses will be done through collaborations within and between companies, for a very simple reason: The next layers of value creation- whether in technology, marketing, biomedicine, or manufacturing- are becoming so complex that no single firm or department is going to be able to master them alone.”
Vivek Paul, Wipro President, accurately describes the changes between today’s companies and those of the ‘old days.’ In summary he said that in the ‘old days’ when you started a company you hoped that in twenty years you would be a multinational company but today you are a multinational company on the second day you’re in business (Friedman, p461). In order to collaborate, companies are partnering together to take advantage of the specialties within each organization. It is impossible to specialize in every aspect of a business and that is why companies are synthesizing within industries and even within individual companies. For example, Apple takes advantage of what Steve Jobs calls a ‘deep collaboration’ or ‘cross-pollination’ in which all departments work together simultaneously instead of in an assembly line model (Friedman, p458). Diversity within the working environment tends to lead towards more innovative ideas and products.

Rule #6: “In a flat world, the best companies stay healthy by getting regular chest X-Rays and then selling the results to their clients.”
Because the world is changing faster than ever before businesses have to keep up the pace. According to IBM vice president for business consulting services, Laurie Tropiano, having a regular ‘chest X-Ray’ means that companies are “constantly identifying and strengthening their niches and outsourcing the stuff that is not very differentiating” (Friedman, p461). In other words companies are breaking down each component of their business in order to verify which parts are being done efficiently in relation to cost and time and which components would be more beneficial to outsource. The idea is to outsource the components that a company is not strong in or that is costing it more money than it should and use the money saved to focus on core competencies.

Rule #7: “The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists- not to save money by firing more people.”
The most successful and the majority of companies today outsource to gain knowledge and to provide customers with a better product or service. The idea behind outsourcing, as stated by Friedman, is to “find ways to leverage what is in India with the best of what is in North Dakota with the best of what is in Los Angeles” (p467). Customers now have more of a demand and are able to browse different option globally, which means that businesses that are not outsourcing are not meeting demands. According to Dov Seidman, “This [decision to use outsourcing] is all about playing offense, not defense” (p467).

Rule #8: “HOW you do things as a company matter more today than ever.”
Friedman states that one reason it is important how a company does business is because almost everything within a business can be commoditized and copied (p468). It is no longer enough to rely on competitive pricing or service; now businesses must differentiate themselves from one another by how they do business. According to Seidman, “When it comes to conduct – the hows—there is still tremendous variation in the marketplace. And where variation exists, opportunity exists” (p468). Today, thanks to blogs and easily accessible customer reviews, customers are in control of the measuring how well a company does business, not the companies’ marketing and public relations firms.

Rule #9: “When the world goes flat- and you are feeling flattened- reach for a shovel and dig inside yourself. Don't try to build walls.”
Although many companies originated before the flattening of the world and may be reluctant to adapt to the changes, they are being forced into it. There are more choices available to customers at their fingertips than ever before. Companies have to constantly restructure to cater to this ever-changing market. Like Ken Greer, a business owner who was forced to compete in the flat world, many companies are changing their way of doing business just to survive. Companies must become horizontally integrated and not just focus on ‘what they are able to do’ but rather how they do it (Friedman, p474).

Murray Low on Globalization and American Business

This video goes along with Rule #1. Let me know what you think. Do you agree or disagree with what Low is saying?

Hey Megan- I'm glad you got the video to work! It was interesting and I def. agree with what Low had to say. -Meg

MSNBC: Business: Globalization gets personal

This video talks about how globalization is getting personal. When I first watched it I found it very interesting.

How Globalization can effect us as Individuals:
There are two sides to every story:
The flattening of the world could lend to more boring monotonous everyday lives and products. The homogenization of cultures could generate similar products in all categories be it cell phones, cars, and clothes. On the other hand, the flattening of the world could nourish diversity, giving consumers more creative options because they have access to more ideas world wide. The flattening of the world could lead to less job options domestically for us but it could also offer more employment options in other nations.

Cases in which globalization can effect us as individuals:
In a round about way globalization has even effected the candy we eat. In this article it is argued that even though economic globalization has invented forced child labor, political globalization can end it through general public knowledge and opinion. The 2001 Cocoa Protocol promoted labels certifying chocolate products as “child labor free,” (Aaronson, 2007) came about because of a global uproar over the human rights violations in the cacao industry. Aaronson (2007) argues that to end child labor there would have to be an integrated approach by government officials, companies, and the public.
Even our medical options have been effected by globalization. Ollila (2005) noticed that international health policy-making has been moving from the public and toward the private division, which is in the interest of “transnational corporations and their shareholders,” not the individual seeking health care. This, she says, “weakens the effectiveness of regulation and accountability in policy-making” (Ollila, 2005).
Of course, domestically job opportunities and the economy have been effected by globalization. According to Gross (2008), Unlike the 1990’s, where globalization enhanced the economy of developed countries “in this decade, rampant growth in emerging markets has mercilessly boosted prices for energy and commodities; competition from foreign workers has tamped down wage growth, and the weak dollar has made U.S. companies vulnerable to foreign buyers. (Gross, 2008)”
In the 1990s, we got all the upside of globalization," said David Smick, an author of the book The World Is Curved: Hidden Dangers in the Global Economy. Now we're getting some of the downside.

In Cairo, nothing seems to change economically or geographically from year to year, yet after a year a city in China is virtually unrecognizable compared to the previous year. Why is this? “The basic formula for economic success is reform wholesale, then reform retail, good governance, education, infrastructure, and the ability to globalize” (Friedman, 2007, p.427). After knowing this then why does one country seem to put itself together and grow rapidly, while others don’t seem to change at all? This is where the term “the intangible things” comes into play. “The intangibles are primarily two factors. First, a society’s willingness to pull together and sacrifice for the sake of economic development and second, the presence in a society of leaders with the vision to see what needs to be done and the power to push it rather than preserve the status quo” (Friedman, 2007, p. 427). China and Taiwan are examples of countries that have been successful in focusing on economic development while Egypt has been “distracted by ideology and local feuds” and thus been unsuccessful in developing within the flat world (Friedman, 2007, p. 427). Of course a country cannot neglect its history, geography, and culture to adopt a new of way of life in the flat world. Each country must find a way to use its resources to grow in the flat world but also still hold onto its history and culture.
Mexico is an example of a country working towards reform and the intangibles but unfortunately is not succeeding. When compared with China, Mexico should have been a thriving economic environment in a flat world. Mexico stands next to the U.S., which has the largest and most powerful economy and many valued natural resources. In comparison, China is thousands of miles away, has few natural resources, debt trouble and constant overpopulation, making it an illogical economic hot spot. However, Mexico has faced an economic slow down since it initially began its reform while China has not only caught up to Mexico but taken exceeded them in economic growth and is on its way to competing with America.
Fashion Companies and the Flat World
Fashion companies in the United States must pay close attention to the countries they decide to work with. The fashion industry reaches many parts of the globe, affecting thousands of lives each day. The potential for the fashion industry to aid in the advancement of globalization and help raise the standard of living worldwide is great. While making sure the countries in which the fashion industry does business with are keeping up with the “four basics”- infrastructure, education, governance, and environment, it is extremely important that developed countries such as the United States also follow the “four basics” outlined by Friedman. “The jobs are going to go where the best-educated workforce is with the most competitive infrastructure and environment for creativity and supportive government” (Friedman, 2007, p.420). By meeting the criteria of the “four basics”, a country is making a pleasurable working environment, gaining an impressive reputation that more companies will want to work with. “In a flat world, the division of labor is steadily becoming more and more complex, with a lot more people interacting with a lot of other people they don’t know and may never meet” (Friedman, 2007, p.423). This relates to fashion because there is so much off shore production that is done between many different countries. Many parties are involved with garment production and throughout the production they are faced with many challenges such as having to learn to cross communication barriers, transmit ideas, follow government regulations, company policies, all while most likely not ever meeting the person. The flat world has changed how many people do business and particularly within the fashion industry.
~Janna Merciel - I hope this is what we are supposed to do, this whole wiki thing is confusing.

Here are some articles I thought pertained to my section. They are articles that have to do with China, economics, and fashion. Enjoy!

~Janna Merciel

Here's a revised version of what I plan to say during the presentation. If any one has any more suggestions, let me know.
slide 2- developing countries have opportunities for greatness in a flat world. in a paper for the world bank david dollar found that "the increase in growth rates that accompanies expanded trade translates on average into proportionate increases in incomes of the poor…globalization leads to faster growth and poverty reduction in poor countries." extreme poverty in globalizing developing countries has fallen sharply in the last 20 years. For example in China in 1990, there were 375 million people lived on less than $1 a day and in 2001 that number had dropped to 212 million. Compare this to sub-Saharan Africa were globalizing is moving slowly, in 1990 there were 227 million people living on less than $1 a day and by 2001 that number had reached 313 million.
slide 3- Friedman says the best way for developing countries to grow out of poverty and develop in a flat world is by taking a brutally honest look at their industries. A country must examine the four basics: infrastructure- which includes access to bandwidth, mobile phones, airports and roads, education-providing a system that allows innovation and collaboration, governance-which properly manages the flow of information and products between its people and the flat world, and environment- countries that take care of their green spaces are more likely to preserve and attract knowledgeable workers.
slide 4- 2 aspects of developing are reform wholesale and reform retail. reform wholesale has been most noticeable in countries like china, russian, mexico, and india. this is where leaders push their countries into export-oriented, free-market strategies by:privatizing business, deregulating financial markets, encouraging foreign direct investment, shrinking subsidies, lower protectionist tariffs, introducing more flexible labor laws. reform retail assumes that a country has completed reform wholesale. it looks at upgrading the four basics so people have the framework to innovate and collaborate at the highest levels. Friedman sites fives steps to successful reform retail: a country must simplify and deregulate wherever possible in competitive markets, because competition is the best source of pressure for best practices and helps to keep the industry honest, must focus on enhancing property rights, so that parents are able to leave the house to find work instead of staying home to protect their land, must expand the use and availability of the Internet, must be willing to reduce the courts involvement in business relations, and reform retail must be a continuous process for a country to succeed.
I'm also going to be talking about the 'how it relates to fashion' slide. If Janna and Milena want to add anything, or jump in during the presentation, feel free.
Basically I was going to say:
The fashion industry has the potential to bring globalization to many parts of developing countries and raise the standard of living for thousands of people. As part of the future fashion industry, we must make sure all countries we work with have strong investments in the four basics. We will also be interacting with more countries and cultures that we must learn to be tolerant and understanding of. As Friedman states, “In a flat world, the division of labor is steadily becoming more and more complex, with a lot more people interacting with a lot of other people they don’t know and may never meet.”

I found a map of bahrain, which is the country whose government tried to sue google becasue google earth was allowing the lower class to see how the upper class and elite were living, and what their houses look like and shows the distribution of land! which is definatly not even,
take a look at it
and here an excert from the article on McDonalds ecofriendly practices
All 1,200 outlets of McDonald's UK, a subsidiary of McDonald's Corp. in the United Kingdom and Ireland, will sell only Kraft Foods Inc. Kenco coffee — arabica beans that are 100 percent certified by Rainforest Alliance.

McDonald's UK is the first major retailer in the United Kingdom to do this, and will brew more than 143,000 cups of coffee daily using 1.8 million pounds of certified beans in 2007, Rainforest Alliance said in a release.

Rainforest Alliance is a New York-based international nonprofit organization that certifies coffee farms that meet specific production standards including those which protect the environment, rights and welfare of its workers, and the interest of its communities.

McDonald's signaled its intention to extend its commitment to serve certified coffee in restaurants throughout Europe this year, Rainforest Alliance said.

Prices will range from 1.09 pounds ($1.43) for a regular coffee to 1.50 pounds for a large cappuccino. -the site if u want to read the whole thing

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