Wednesday, November 28, 2007

Chapter 15: 11/9 Vs. 9/11 (Use your Imagination)


I thought how Friedman contrasted 11/9 (Fall of the Berlin Wall) and 9/11 (Twin Towers) was quite interesting. He took two different forms on imagination and showed us the differences behind them. 11/9 was a more open world, why 9/11 showed how evil thoughts cold stop the flattening of the world. His example is of the two airlines he uses to demonstrate his point is quite ironic and clever. The first airline was JetBlue, they began selling paperless tickets and provided jobs to house wives. They wanted to be innovative and embrace the new world. The second was the airline made by Osama bin Laden, that was determined to crash into the World Trade Center trying to slow us down. One made flying more efficient, the other made chaos and flying horrific. But I believe that 9/11 woke us up and increase our global presence, not stop flattening the world.


I also respected Friedman's thought when he said technology alone will not keep us safe, that we have to affect the imaginations of those who are trying to hurt us. Because we are the world's most powerful country we are suppose to lead by example, and help other countries prosper in this flattening world. Hopefully we can change more peoples imaginations towards 11/9 ideas rather then 9/11 ideas. I remember that day like the back of my hand. After watching all the madness on TV and hearing it all over the news, anger struck across this nation. It's sad, but it was an event that brought this split nation together. The first Dolphins football game that happened after that tragic day was my best because after the anthem the entire stadium was chanting U.S.A. It was told that you could hear it from miles away.

Chapter 14: Purchasing and Supply Chain Management

Dell did have a great run and expansion in the beginning of the twenty-first century. Their purchasing and supply chain methods were unprecedented and set a lot of standards. They advertised to the right market (mostly college students), and had a great promotion theme. Unfortunately the time I heard of the "Dude, you're gettin a Dell" guy, he was arrested for drugs or DUI or something. I want to know what happened to Dell though, they kind of disappeared?


Friedman's theory of conflict prevention is probably the smartest thing he had to say in this whole book. Talking about how nations that are invested in just-in-time global supply chains are more likely to stay out of wars and keep the peace. These countries would suffer significant financial losses if they did. Why don't we go to the Middle East then? Most the countries in the South Pacific resist war despite their cultural and religious differences because they are all economically invested. Just look at the Middle East with no global supply chains. Great point Friedman!

Friedman talks of two tests that prove his theory. The biggest and first case is China and Taiwan. In 2004 Taiwan was hoping to finally get independence from China. However their DPP (Independent party) lost because the people did not want to be independent. Friedman says they realized that their economic stability was reliant on China, also they didn't want to have the Chinese invade. This kind of reminds me of the U.S. and Puerto Rico, how we provided protection and stability for their country and they did not want to get rid of their Common Wealth status.

The second test dealt with the nuclear crisis in 2002 between India and Pakistan. A nuclear exchange between the two seemed imminent and all U.S. citizens were advised to leave India. The CIO of United Technologies talked to the Indian Prime Minister and threatened to take business away. The concerns were informed and the Indian govt backed down their position. I don't believe this necessarily was the real reason, but I do believe it was a variable in the crisis. Then of course Friedman talks about the con's of his position in the end of the chapter.

Chapter 13: Uploading and Sweat shops.


Friedman starts out by saying the Cultural Revolution is about to begin, and that globalization is really driven by American cultural Imperialism. It's true to some degree, we are the ones who are outsourcing to other countries and bringing our products international. We are Americanizing the world and they are eating it up, whether its McDonald's, Entertainment, or materialism. The U.S. has the ability to take advantage of this new world and we are. We are bringing diversity to a degree the world has never seen. Friedman says this is primarily due to the fourth flattener, Uploading. It is suppose to globalize the local, there are no barriers to entry as long as you have a computer, microphone, and a camera. The bad part is most of the world does not have the capacity to upload items onto the web with having 20% of India's population only has the ability. Only 31.1 million people in China have Broadband. Uploading can be a very negative aspect too. Terrorist are using the web to podcast terrorism and their beliefs. I saw a report on the news talking talking about we are winning the war, but losing the war on propaganda. Which is the most powerful tool of all, and they are turning people against us.

The biggest thing that got my attention in this chapter is the Sweat shops going on in China. I knew they were a somewhat communist country and repressed freedom of religion, but I didn't know slaves were still around. When Friedman talks about the Uighur and the iPod factories, that made me mad. You would Human rights watch or some organization for humanity would step in. Making young people work 15 hour days for $50 a month. Punishing them for screwing up, and warehousing them from the public. Sounds almost like a concentration camp to me. People say America is full of shit, but stuff like that makes me proud to be an American.

Chapter 12:The Unflat World


Finally! He admits that he embellished many of the flatteners of the new contemporary world. He has been also contradicting himself throughout the whole book! That's what you get for writing a gazillion page book. Anyways as you all know Friedman admits that the world is not flat, and that he thinks of himself as a technological determinist (Whatever that is). He finally says that everybody cannot embrace this new world, when yet he said some 3 billion people are now waking up. But I will give him some respect for playing the devil's advocate on himself. You do need to show the pros and con's to every situation. In this chapter he tells of some of the reasons why flattening could go wrong.

The section of the world that will have a hard time coming about is the "too sick" people. Which is the poor in the developing nations. This is common sense of course. Diseases like malaria and AIDS are to rampant in these countries and there is no support on how to prevent this pandemic. One bad feature about this is because of a flattening world, these diseases could spread a whole lot faster and we would have another plague on our hands.

The second group of people is the "too disempowered", or also known as the half-flat people. These are lower class citizens and people in ravished nations. Friedman talks about trying to improve local govt, infrastructures, and education. Also their lack of opportunity to be apart of this new world. Places that have communist leaders and dictators is a great example of this. Look at Cuba and Castro, having the government control every move you make. Cuba could be a thriving country even with its small size.

One of the biggest set backs to me is terrorism, which Friedman hits on a little bit. The Arab-Muslim world today caused so many barriers with their violent Islamist fringe. Groups like al-Qaeda and their attacks on 9/11 have brought tighter security measures and built protectionist walls. Americans don't want to do business with people that want to kill us or who we are at war with. Who really wants to go to a business meeting or work over in the Middle East. Its to bad too, because places like Dubai are one of the fastest growing nations in the world.

Part 4; Chapter 11: How Companies Cope


"The companies that have managed to grow today are those that are most prepared to change". Friedman starts off with this observation of the chapter meaning how do these companies respond to the triple convergence. It's about coming up with a strategy to survive in this new world. I like the part where he talks about Howard Schultz, founder and CEO of Starbucks, and how they have 19,000 variations of coffee. Their strategy was to make the customers the designers and customize the product the way they want it. As we talked in one of our discussion boards, these new people are Prosumers. Friedman also has seven rules on how to survive. Ill briefly touch on a few of them.

Rule #1 - When the world goes flat-and you are feeling flattened-reach for a shovel and dig inside yourself.
During this Triple Convergence stage, companies need to find a way to stay competitive and survive in this new global market. He uses his friends company Greer & Associates as an example. This rule is common sense to me, and I will sum it up in one of my favorite quotes. "If you stand still, you will get left behind"

Rule#2 - "And the small shall act big"
This is the classic story of David verse Goliath. Small companies need to not act their size and take advantage of the new technology for collaboration. Use the resources that the bigger companies offer, like in the previous chapters, how Toshiba used UPS for quick delivery and even repairs.

Rule #3 - And the big shall act small
This is one of my favorites, because it's saying the big companies should no longer treat you as a piece of meat, but as an individual personalized customer. They use the example of Starbucks as I talked about in the intro of this chapter. Starbucks made their service into a buffet for the customers, and let them have their way.

Rule #6 - The best companies outsource to win, not to shrink
Saying the successful companies don't outsource to save on cost, rather they want to be innovative, increasing market share, and having a diversified staff. This subject is rather controversial, and Friedman has gone back and forth about the matter. He is really just confusing me with his opinion. There is so many pages I think he forgets what he writes.

Part 3; Chapter 10: The Virgin of Guadalupe and the D.C.A.


This chapter talks about what policies developing countries need to make it in the flattening world. Each country needs to know where it stands compared to the ten flatteners. Friedman talks about the only way out of poverty is to join more open markets, and that it must have three elements: Infrastructure, proper education, and the right governance. But for a lot these countries have bigger problems to deal with then the 10 flatteners. What about hunger, no reliance on govt b/c of warlords, or disease. I believe a lot of these couldn't even catch up in a few hundred years, a man living in a clay hut in Iraq isn't not worried about the world being flat.

Friedman does make some sense when he says developing nations need a a business-friendly environment. But it needs to be regulated well, most of those govt are corrupt and won't deal with the WTO. He talks about Ireland addressing these issues and going from the worst to the second richest in the EU, and that its about the most productive labor for the cheapest price. But, Ireland was not that bad to start off with, and its a fairy tale story. Not every kid is going to be a professional athlete.

Friedman's talks about culture being a big determinate is a very controversial variable, but he's right to some degree. He says that open cultures are the most willing to adopt global practices verses closed cultures. What about the Asian cultures, they are all about tradition and solidarity, but is one of the biggest flattening factors. On the other hand though countries in like the Middle East don't let there woman work or in the public process, and that eliminates a huge workforce.

Tuesday, November 27, 2007

Chapter 9: This is Not a Test


Friedman is saying this isn't another Cold War era where it is won without a shot being fired. That the other countries are not just going to lay down and collapse on their own. He is saying its a 75 question scan tron test with essays, the real deal. Its time for Americans to respond to the challenge and pro-globalization advocates to recognize the need for compassionate measures. Friedman outlines 5 areas of this compassionate flatism in which the goal is to give us the tools to compete in the flat world.

1st action - Leadership - Its time for politicians to get serious about globalization. I say just get Bush and his goon's out of house and we'll be find. He says they need not to encourage stupidity among constituents. But look who is in the White House.

2nd action - Muscles - How are we going to enhance each workers lifetime employability by giving them "muscle" that will make someone employable for life. Some examples are Universal pension plans, more stock options, or portable health care program.

3rd action- Good Fat - Wage Insurance, for people that have lost their jobs and will not make as much next employment b/c of our economy. Three criteria make you available for this : One, lost job through displacement. Two, held job for 2 years. Three, could not collect until he found a new job.

4th action - Social Activism - Relationship b/w the global corporation and its moral conscience. He trying to be a peace maker here and just say why can't everybody get along. He's killin me smalls. Also we need to do more for our citizens like educate consumers.

5th action - Parenting - The economist, technologist, and now parent counselor. He says parents need to do a better job at raising their kids. Every old person whine's about the younger generations, and that's never going to change. They give you the I walked up hill both ways to school and back.