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'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.
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.
2 comments:
I also believed this chapter was brilliant. The Dell Theory of conflict prevention works best and applies most to developing countries, China and Taiwan being the perfect example. I think when you get to countries like the U.S. the rule is not so easily applied. While there is a great economic benefit for China to avoid conflict the same benefits are not as crucial to us.
I think it is still crucial to us, but maybe slightly less so. But also, the U.S. doesn't necessarily need the incentive that other countries do. We don't wake up in the morning to plot a devistating world catastrophe. Like North Korea & Iran. I do not understand where they are coming from or their point of view for the life of me.
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