Tuesday, October 9, 2007

CH13: Berlin Wall vs. Bin Laden

9/11. Do you know where you were when you heard about the attacks? I remember it was junior year in high school and I was in my government class. The teacher got a call on her phone to turn on the TV. After she turned it on we saw a video of the World Trade Center with a fire on one of the top levels. Me and my classmates didn’t know what was going on. It was a very scary.

In the final chapter of the book, Friedman reminded us that the new flat world is being used for good (to help improve quality of life and grow the economy), but also sometimes for evil (terrorism). It's important for us to fight the people that are using "the flatteners" for evil.
The Berlin Wall crumbled on 11/9/89 which signaled the start of a new revolution of freedom and when technology began to go into hyperdrive. However, when Bin Laden orchestrated the attack on 9/11/01 it was almost a setback for the "flattening" of the world. Everyone was afraid and realized that maybe we were "flatenning" too much and technology was now available to everyone.
I feel that with anything, some people are going to be use it for good and some for evil. However, I don't think that should make us want to slow down on innovation or technology. Maybe just be cautious.

CH12: Dude! You’re Getting A Dell

Dell Computers are the best! I have both a Dell Desktop (from 2003) and laptop (Summer 2007) and have not had any MAJOR problems with them ever. Whenever I do have a problem, I simply call their 1-800 number and talk to a technician (probably at India’s Call Center) and they help me solve my problem. I can see why they are the #1 computer manufacturer in the world. Good quality and quality customer service.
I was surprised to see numbers of suppliers involved in building one laptop: over 400. Wow! That’s a lot suppliers! I’m currently taking a Supply Chain elective and understand all the procedures and steps involved in working with 1 supplier, let alone 400. It was interesting to see all of the parts to my computer are from all parts of the world: China, Japan, Philippines, Mexico, Thailand, and lots more. Dell is good example on how to successful manage your supply chain. They recently entered a joint venture with Wal-Mart to allow them to sell pre-customized computers from Dell to their customers. This is a great strategic move as people already associate “Low Prices” with both Wal-Mart and Dell.
This chapter was about supply chains and how they are important in preventing conflicts (wars) between two countries. The theory is if 2 countries depend on each other enough (like US and China) than the probability they will get in a war is highly unlikely. This is true and very important for countries to remember. For example, China produces so many goods for us it would be almost suicide if the US ever got in a war with them as our imports would reduce drastically.

Friedman decided to name this the “Dell Theory of Conflict Prevention”. It is a very catchy and interesting theory for the Globalization 3.o0 age.

CH11: The Unflat World

Finally, in this Chapter, Friedman admits that the world isn’t flat…yet. The book should actually be called “The World Is Flattening”. There are still dozens of countries around the world who are undeveloped and behind us in every single way. So with these places and people still existing, the world is still round. Just like Christopher Columbus thought! :P

The section touched on various different groups who are a part of the unflat world: sick, disempowered, frustrated, and depletion of the world’s natural resources. The group that I’ll focus on this is the “too sick”.

The too sick included the people who have HIV-AIDS, malaria, TB, polio, and who do not have electricity or clean water. It was sad to read that some of these never seen a toilet before or a shower. Also, instead of drinking clear, clean water they have to gulp down muddy, dirty gutter water.

In some of the countries in Africa, AIDS is so prevalent that 1/3 of all pregnant women are HIV positive. With HIV/AIDS affecting the continent of Africa, it will probably be harder for them to become into a flat world as many of the children may not even grow up and live past 18. It was good to see that Mr. Bill Gates has donated lots, and I mean lots, of money to fight diseases and poor living conditions. Over the years, he has donated over $27 billion to these causes.

Friedman reminds us that people who too sick will not be able to compete in the flat world as they might not be around to compete. While this is sad, it is true.

CH10: Can I just order "A Simple Coffee" at Starbucks

This chapter seemed to talk about how successful companies in today’s world are the ones that best understand triple convergence. With this understanding, they have developed their own strategies for coping with it. He gives 7 rules to businesses on how to do this. I will just touch on my 2 favorites.

Rule #1: When the world goes flat-and you are feeling flattened-reach for a shovel and dig inside you. Don’t try to build walls.

This was my favorite rule as it’s self explanatory and makes sense. If you see competitors in your industry globalizing and using technology to their advantage, just don’t sit there. Be proactive and do a SWOT Analysis on your company and look at what strengths you have to offer, and what opportunities are available. This is the first step in creating your competitive advantages.

For this rule, Friedman used Greer & Associates as example. The CEO said, “Our competition is not only those firms we always used to compete with. Now we have to deal with giant firms, who have capabilities to handle small, medium, and large jobs.” In this day of age, we have to not only look at our competitors in America, but also across the world.

Rule #3: To flourish in the world, companies must act mall, while acting companies act big.

This was another important rule. Remember back in the day when companies decided every aspect of how make the product. Well now in this flat world, customers are making these decisions. Starbucks is a good example of this. When the popular coffee shop first opened, they only had a handful of flavors and mixes. However, now after customer input they are including coffee mixes that include soy milk. Also, customers can make their own unique blend of a latte or cappuccino or whatever they want. Customers are BIG, while companies are SMALL.

I’m not a big coffee fan at all. I’m actually scared to go to Starbucks because its too confusing and wouldn’t know what to order.

CH 9: Don't Do Business in Africa

This chapter discusses developing countries and how they factor into the flat world. I liked the creative example Friedman made about “What if regions of the world were like a neighborhood?” Even though I think it was a sort of stereotypical, especially as he placed a label on countries that had populations of hundreds of millions or billions of people. The most interesting descriptions were:

The U.S. – Gated community with a metal detector at the front gate and a lot of people complaining on how lazy everyone else was. However, there is a small hole in the fence for Mexican labor

Latin America – The fun part; the club district; workday doesn’t begin until 10pm and everyone sleeps to mid-morning

And last but not least: Arab Street – Curtains closed, shutters drawn, signs on their front lawn that say “No Trespassing. Beware of Dog.”

Also found it interesting that each country has VASTLY different rules and regulations on new businesses in their company. A new biz in Australia takes 2 days to open, while Haiti makes a new biz wait around 200 days to open. Over half a year! Ridiculous!

The study the IFC did called “Doing Business” was a good study as it showed which countries were the best to do business with. Singapore, New Zealand and China are countries that you SHOULD do business with. However, many countries in Africa you SHOULD NOT do business with. I agree that developing countries need to analyze themselves and decide what all do they need to eventually become a developed country so they may be able to better survive in this flattening world.

CH8: This Is Not A Test (Good because I didn't study!)

Friedman is warning us that THIS IS NOT A TEST. This quiet crisis we are going through is the real thing. If we don't begin to shape up and make changes, we will fail the test. Meaning we will lose our place as the #1 country in the world in terms of power, innovation, and economy. As a fellow American, I would like to see us stay at #1. Friedman has came up with 5 factors on how we can PASS THE TEST. I'll briefly comment on the 5.

Leadership - I agree that our leaders, especially The President, should be smart and knowledgeable in how the world is working. George W. has gotten slack his entire presidency for not being the brightest crayon in the box and lying the public (ie. weapons of mass destruction)

Muscles - Some of the reasons that Friedman gives to what he says has more to do what HE BELIEVES then what is BEST FOR AMERICA. However, his wanting college to be free to allow everyone to get a higher education is fully supported by me.

Cushioning - This is where I saw through his "Helping make the world flat" speil. He wants America to keep Social Security, but get rid of welfare because it discourages people to work. While I do agree that welfare is sometimes misused, many people really NEED welfare to help support them and more importantly their KIDS. Don't try to push your political agenda on us Friedman!!!

Also he made up a stupid "wage insurance" plan that is so complicated I'm embarassed the editors kept it in the book. If a person ends up making less than what they did at their previous job, he wants the government to give them the difference. However, there are certain rules your must follow.

1) Must have worked at job for at least 2 years.
2) Must have lost job to downsizing, outsourcing, or offshoring
3) Not paid until worker had found new job
4) Cap of $10,000 year

Man that is way TOO complicated and is just another form of unemployment or welfare. Focus on the facts and stop trying to be a senator and pass bills, please!!!
Social Activism - This was just boring and pointless. This is just another form of social responsibility that most companies are already doing. It looks like he was trying to stretch his list to a nice, round five number.

Parenting - The most interesting factor as he mentions the infamous Bill Cosby rant to black people to be "better parents". His speech caused lots of controversy and an uproar in the black community back in 2004, but many agreed what he was trying to say. Friedman said that Cosby's speech should be applied to all people (black, white, red, brown, green...) and remind parents that they should try to get their kids to do less playing games and studying and learning as they are the future of our world.

CH7: Leave Britney Alone!!! (Oh yeah, and The Quiet Crisis)

No, you are not at Chris Crocker page on YouTube. But I just wanted to tell the author to LEAVE BRITNEY ALONE. Why is it everywhere I go, I hear and see Britney Spears news. Even when I'm reading a book about globalization, Friedman has to go and insult and mention Britney. I admit I'm a fan ("Gimme More" and "Slave 4 U" are THE joints!). I just don't see why he had to say...

In China today, Bill Gates is Britney Spears. In America today, Britney Spears is Britney Spears - and that is our problem.

Stay on topic Mr. Friedman. The World Is Flat. We Are In Globalization 3.0. Yada yada yada. Just leave Britney alone.

Enough with my rant, back to the Chapter...

The 3 Dirty Little Secrets that the author mentions aren't really secrets. Well at least not to me. The secrets are:

#1: The Numbers Gap – The fact that the number of people going in to math & science is decreasing is NOT surprising. I went to a magnet school for math & science and while I’m good at both subjects, doing a career in them isn’t the desirable.

#2: The Ambition Gap - People over in China and India are more ambitious and harder-working should be no surprise to us either.

#3: The Education Gap - Americans have becoming lazier as technology gets faster and better. Hopefully, soon we can try to fix this problem as if we don't, the quiet crisis is going to be a very loud crisis with our next generation.