Ch 15: CONCLUSION: 11/9 vs. 9/11

I was happy to reach this chapter, not only because it was the last chapter, but also I wanted to hear his view on 9/11 with the global world. He had been mentioning throughout the whole book briefly, and now I finally got to hear what he had to say. He basically compares 11/9 (the fall of the Berlin Wall) to 9/11 (the most tragic day in the U.S.) Friedman had a theory that while 9/11 was the fresh new start of the globalization world and freedom, the evil masterminds involved in 9/11 were trying to put it all into reverse. His theory makes sense to me. 9/11 was meant to impress fear upon people (the U.S. particularly) and to make us second guess our freedom. These evil masterminds involved were against globalization and prosperity through rising countries. I feel that this event is definitely a major flattening stopper (or a slowing) on globalization. The fear that people have from the event make us to be more cautious about certain information, security in public places, security on the internet, and numerous other things. I remember when it happened was my junior year of high school and we were watching it in our classrooms. It was a very sad day. It was then that firefighters were being regarded again as heroes and the saying “United we stand” could be heard everywhere. While it is a terrible event and countless lives were lost and households broken, I think it is important to learn from these experiences. I thought it was very beautiful that in the time of tragedy, U.S. citizens put aside their differences and all stood together. Everyone viewed each other as a sister or brother, not “just someone with a different religion, education, or political party as me.”

I agree with Friedman when he said that we as Americans must set an example by not running away from the world, but becoming good global citizens. We should change people’s thoughts from the fears of 9/11 into the hopes of a 11/9 world. If we are afraid and try to break out of contact with the global world, then no good can come of that. Fear does no good. We must be cautious in our nation’s and world’s safety, but we should keep moving on into the global world that can bring abundance to everyone involved.

Ch 14: Dell

We are talking about good old supply chains again. And what better example than Dell? (well, besides Wal-Mart which we have already used enough…oh wait, they joint-ventured with Wal-Mart, can’t get away from them I guess.) A good amount of my friends have a Dell, so they must have done a good job marketing in the past. However, now I’ve seen more of a variety of computers that people are having, even in class. I have a Compaq. It is not terrible but it has given me some problems and half the time it doesn’t turn on, so that is why I never take it to class. And when it is acting up I have to hit I to turn on. I don’t want to take it in because it is too expensive.

Friedman is right on the dot, in my opinion, that countries that are in major global supply chains together would have a decreased probability to engage in war against each other. If his theory is correct, then that is very good news for our world, when it is a time of terrorism. He points out that more of the Asian countries have much to lose in a war against each other so they would most likely not risk it and would want to put any of their differences aside. However, the Middle Eastern countries are not involved in any major supply chain. It makes me wonder why. I think they should get involved with us and other countries so we can be more at peace about wars. However, then I am second guessing myself because he also points out that supply chains are not always good news. He refers to terrorist groups and Osama bin Laden in that if they have a hold on supply chain technology they may be more prone to use it to our disadvantage by attacking us. So now I am not sure of what side of the fence I am sitting on with his theory.

Ch 13: Globalization and the Local

Just when Friedman is done admitting in the previous chapter that the world is not completely flat, he talks in this chapter that the cultural revolution is about to begin. He proceeds to state that as long as you have a computer, camera and microphone, then you are good to go into the global world. And he claims that this applies for anyone. Well I do not totally agree. For instance, take people in China. Just because many may have these “three tickets into globalization” does not fully mean that they can take in the full benefits of it. I remember reading somewhere that China’s government still dictates what they can and cannot read in their country. We learned in Dr. Christiansen’s class that they are very private about what they will allow their people to know and especially about what they share about China to the outside world. They are also the only country in the world that will not allow the Pope to visit (so not open to religious freedom.) Yahoo! And Google have censorship rules in China that they must adhere to. So, even if they have very equipped with the global tools, then they will not be fully able to partake in all the benefits of globalization.

In addition to all of this I do not agree with his argument that globalization is not in the form of “Americanization.” I think that we are taking over the world. He claims that the internet will be able to have everyone’s culture broadcasted. Yea that’s true, but America has the most power so our businesses will most likely prevail. So the products, restaurants and clothes will be in American form, but will only be altered to the point that a very different culture will accept them. And if this is so, it will be changed only in their geographic area for them. For example, take McDonalds. It has a restaurant in India. They do not eat cows over there for religious reasons, so McDonalds wants their money and changed hamburgers to chicken burgers. In all other McDonalds across the world, it has regular “beef.” McDonalds only changed it because the had to for India otherwise there is no way that their people would buy it.

Ch 12: The Unflat World

Just when Friedman is getting me to fully believe that the world is indeed flat, he throws a curveball and admits that it is not yet. So I guess my original idea was right. Well- at least for now… He gives three scenarios for why the world will remain unflattend for some people. The first one is those that are “too sick.” Places that are largely infected with diseases, according to Friedman, are so because the people are too poor to have funds to cure it, or people are uneducated about how it’s spread. This is very sad and I believe it is our duty as member in the flat world, to educated fully those impoverished people and keep them safe and “in the know.” He mentions that these people will not compete in the flat world. While this is probably true, (and unfortunate) why the heck did he call the book the world is flat?! Because clearly, it is not. Not everyone is competing.

He also goes on about listing two other excluded people that will not be able to compete in the “flat world.” Those that are too disempowered, those that basically do not have the tools or skills to participate but know what’s up. The other group are the ones that are “too frustrated” involving terrorists. He also mentions five forces that drove antiglobalization movements, lead by the antiglobalization people. Which to me sounds like a bunch of modern day hippies. I guess every generation has its share of hippies… By this point in the book I just want to throw it into the dumpster because now I feel he is just yapping away trying to talk to us as much as he can, so I will conclude this blog right now.

Ch 11: How Companies Cope

“Everybody wants economic growth, but nobody wants change.” This statement is so true. I think as human beings, most of us are opposed to change, or at least initially. Sometimes people have the view, if it ain’t broke, why fix it? Even if your business is not doing terrible, if there is the opportunity for growth and innovation that comes through change, why not then take advantage of it? Maybe if a corporate culture would be drawn to embrace change and see it as a fun and exciting way to improve one’s self, then more businesses would be able to flourish in the long run. Sometimes businesses want to, but they have trouble getting their employees to enthusiastically go along for the ride.

Friedman says that all of the top businesses are the ones that are constantly changing. He gives a few rules that the top businesses go by. The first one is when the world is flat, whatever can be done will be done, the only question is if it will be done by you. This is important because if you have a good idea, just go for it. If you hesitate, with all the available information that is out there, chances are someone will tap into your new market first and steal your market share with a similar idea. The third rule that I like is “And the small shall act big…” This gives hope to small companies that they are just as competitive as the big ones with all the money.

My favorite rule that I always thought about (which was before I read this book) is that big companies shall act small. Starbucks is a great example. They are always listening to what their customers want. They do not dictate what services they will provide their customers, rather they let their customers dictate to them what service they want. They treat you in every Starbucks as a person, not just a number that is boosting their revenue. They make your experience a relationship as opposed to a transaction. They greet you by name, and not once have I ever came across a rude employee. Their coffee may be overpriced, but I am willing to pay a couple extra bucks to get the up most personal service I receive there. Friedman also mentions six other rules, but I feel most of them are pretty much obvious after reading the book so far.

Ch 10: The Virgin of Guadalupe

I couldn’t help but laugh when Friedman used the example of China exporting statues and symbols of the Virgin of Guadalupe to Mexico. It is one of Mexico's claim to fame, and most of the people in the factories in China probably are not Catholic nor really care about the symbolism behind it. I would think that Mexico would produce their own, however I guess in the global world, everything is treated more like a transaction business mindset and the most efficient way wins. He uses this example to show that China is becoming a "powerhouse" of low-cost manufacturing. (As if we didn’t know this already…) He uses this chapter to open up into his discussion of the flat world and developing countries.

The first step that Friedman makes is that developing nations must know where it stands with the ten flatteners. I agree with his next step that these countries must be more involved in open and more competitive markets. This is the only tool out of poverty. If I am a poor country, I obviously will not be as prosperous as America, and cannot just randomly get there. Since my country would already be behind the game, the only way to get back into it, is to start deciding what I do best, and then trade that with other countries who will need my competitive advantages. I guess I just tied my idea back into that whole free trade theory. I agree with his statement that countries whose cultures undermine the woman in the work place do put it at a competitive disadvantage in the truly existing global world. While men and women do work/relate differently in the workforce at times, it is a good thing because the more diversity, the better. If you have a country that is male dominated in the workforce, then those males may not know everything that is needed to tap fully into other markets. Friedman later provided a comparison between Mexico and China demonstrating why Mexico is behind China. It was a really good eye-opener. Like Erica, I wondered why we were always exporting from China, when we could be from Mexico which is closer to us. Now I better understand it.

Ch 9: This is Not a Test

Friedman talks about compassionate flatism that has the goal of changing the old welfare state to give Americans the outlook, education and skills needed to compete across the globe. He says that the main objective that we have is to build strong individuals. This is imperative since one of the themes of this book is that we are competing as individuals against other individuals. There were five action areas that he suggested that are imperative for the government to help Americans remain competitive.

He says that politicians should help educate and explain to people what world they are truly living in and what they need to do if they want to thrive in it. He says they are our leaders that should lead us to reality. I agree with his point. Instead of just making empty promises and what they are going “to do” they should try to make us rise and become better citizens.

With Muscles he is talking about creating a legal and institutional framework for universal portability of pensions and healthcare. It is sad that 50% of Americans do not have a job-based pension plan other than S.S. They should make a universal plan like the author suggests. I like his suggestion that when on worker moves to another job, the investment in that particular 401 K would automatically dump into his universal pension account. Also education was brought up by Friedman that the government needs to improve it. Dr. Christiansen said before in the summer that government has a role to upgrade the educational level system of the entire workforce. Everyone should have a chance to be well educated. I agree with Friedman's view that instead of putting bad teachers to teach a class, why not project the good teachers on a flat screen. I mean, what is the purpose of suffering with bad teachers if the technology today can help us to be at an advantage?

Friedman also made a key distinction that some "good fat" should be kept. SS is good, but a welfare system that discourages people from working needs to be changed and gotten rid of "bad fat." I agree with him because again back in Dr. Christiansen's class, he opened my eyes that the current system is not good, and if it is not good, why keep it around? I also agree on Friedman's parenting section that parents should motivate their kids to make something of themselves and not just sit around all day and play video games.

Ch 8: The Quiet Crisis

“Wealth doesn’t make it past three generations” – Chinese Proverb

As we see on the news, America is definitely drowning in debt. We want things now, right when we want them. Many people just buy for immediate gratification, but then later are faced with the headache involved in the great sea of debt. Many countries do look at us and wonder why we are so wasteful with not only our finances, but our resources.

Basically this chapter is about Friedman calling the current American generation lazy, which I think, as a whole many are. While some people need to get off their lazy butts and be more ambitious, overall I do not think it is always the fault of individuals being lazy. I think the way our system is set up in America that propels people to settle for mediocrity.

The media has a big part to play in this in my opinion. They glamorize things that are not that amazing, and set up unrealistic ideas in people’s minds, especially our youth. They do not have very many shows of substance, glamorizing drama, people with no ambition (or ambition of up to the point of hooking up and having the IQ of a typical “blonde”; not that many blondes are like that), and wealth that most of us will never be able to achieve. (Ok, I am not trying to sound like a 70-year old grandma, but common now, some of these shows are so dumb.) Yes I admit I do watch some shows like “the Hills” and E! (which is kind of dumb as well,) but my point is that the media controls our perceptions of things and that they should have a responsibility to glamorize not only dumb things, but maybe things that can be beneficial to people’s futures. This is not to say that when I watch TV I want to be watching some PBS special or anything, but maybe they could put on more shows like the Apprentice, or things that motivate people to seek better opportunities, and that getting yourself ahead in life is another aspect of glamour. Maybe do some “reality show” about people in India fighting for our jobs and how people in America are finding new ways for themselves to stay ahead. (just an example, but you get the point.)

Friedman points out that we should be considered about gaps in our education, infrastructure, and ambitions. He claims that less scientists are graduating from the U.S. than before, and that foreign counties are exceeding us in higher education. He also mentions the education gap at the top. A Romanian kid was used as an example in saying what we are learning in 7th grade, Europeans are learning three grades before us. This is pretty sad, and our education system is not that strong. However, we need better teachers in order to accomplish this. It is sad because the “better teachers” go to the better schools that are in more desirable locations. The impoverished schools are then left at a disadvantage, and more prone to remaining poor. Something needs to be done here, but I don’t seem to have a good answer in how to get the better teachers as the “worse” schools.

Ch 7: You've got The Right Stuff Baby... (jk...)

“How we educate our kids is more important than how much”

This is a pretty profound statement. As we grow up, adults were always telling us to get a good education and learn as much as we can. While possessing a lot of knowledge is important, learning how to learn is more important in Globalization 3.0. We should be taught to: learn how to learn. If I had not read the first six chapters of the book, I would have thought Friedman is crazy because it went against a lot of what I have been taught. However, times are changing, and technology is changing so we have to know how to adjust so we can pick up new skills quickly with passion. [Side note: The book “Rich Dad Poor Dad” has a similar philosophy in the fact that just getting a college education isn’t going to be the deciding factor getting you ahead in life.] (although I have only read the first two chapters and it is currently collecting dust on my book-shelf, I am pretty sure the book keeps that message all the way throughout the whole book…)

Friedman gives the equation he came up with as a rule to go by in life:

CQ + PQ >= IQ (or, Curiosity Quotient + Passion Quotient >= IQ)

People with this equation having a greater value on the left side will have the most advantage in flourishing in the global world. It backs up being able to “learn how to learn.” I wish I can sharpen my skills in this department, because I am sometimes lazy when it comes to learning some things. However, if I can see the true value of it in my future, then I have no problem of getting into the mindset that it is interesting to learn.

I thought it was pretty cool that we got to hear (well read) a part of Steve Job’s commencement speech. I had no idea that he was adopted, nor that after he dropped out of college that he would sneak into a calligraphy class and that it actually helped him out. He also spoke about “connecting the dots,” looking backwards leading up to his successful position in life.

Friedman also said that liberal arts should be stressed in school. He says America must learn to work with their right-side of the brain to do things better and innovate, while let foreigners do the left-side of the brain work cheaper for us. I think this was kind of a crappy statement. It is almost if he is making us think that we are better than others and that everyone should be doing lower-skilled jobs and that’s just the way it should be. While maybe he wasn’t trying to be so harsh about this, this is kind of what I pulled from it.

Ch 6: Untouchables: Finding New Middle

This chapter Friedman does a great job calling to everyone’s attention the need and importance of education to get ahead in this world. Friedman says there is no such thing as an American job anymore. This opened my eyes, because I used to think of some jobs as just this. Times are changing in this new global world, and as we have already begun to see the effects of outsourcing, many jobs will go to the best, smartest, and cheapest worker. As an individual, you want to make yourself an “untouchable,” meaning that you are so valuable at your job, that your work ethic cannot be duplicated by outsourcing. This is kind talk of caste systems kind of made me think of the Sex and the City episode discussing the caste systems and if they really do still exist. That episode basically said they do in a way, and Friedman backs up this statement, however from a different point of view. (Just a random fact for you all.)

Some of the things Friedman suggested to be in the untouchable category were pretty beneficial. One of these skills we are developing in the MBA program which is knowing how to work with others. Since practically half of what we do is group work, we are pretty used to this already. He also mentioned that we need to know how to speak to others, explain (something I need to improve upon,) and inspire. These skills are very crucial. At my internship I have been working on an employee survey and focus groups. Going over the results of the focus group, I spoke to my manager about some employees complaining about not being promoted when they are just as competent at the job and know more than some of the outsiders being brought in to fill vacant positions. My supervisor pointed out that while they may possess the knowledge, these certain employees do not know how to lead a group or have the correct people skills to manage a team effectively. The fact that we as MBAs develop these characteristics is very important if we are wishing to advance in our careers and keep our jobs.

Another thing Friedman suggested that I felt was important, is that no matter what you do, be amazing at what you do. I was speaking to Amanda’s dad when he came in town once and he mentioned that it is good to be so good at your job that you are irreplaceable.

Chapter 5: America & The Flat World

I agree with Friedman that David Ricardo was right about comparative advantage and it still applies today. If your country sticks with what they do best, other countries can do what you may be lacking on. You can then trade with other countries, and everyone benefits. This is something I learned in elementary and high school, and I believe it still applies today. What good does it do to try and make something that does not easily come for your country? I feel that we should tear down the walls against outsourcing and offshoring that may still exist in people’s minds.

Education is necessary for Americans to stay ahead and have better jobs that are not outsourced. Some people may think that if everyone is prospering with free-trade, then everyone will be making more money and there will be no one left to perform the jobs such as manufacturing. This is not true. As more people’s wages go up, then they will want to buy more things. So, we still need people to manufacture items. Maybe the manufacture workers’ wages will rise as well, but we still need things being produced. I was a little concerned with this chapter because the Chinese and Indians are racing us to the top, and I thought they may take all our “good jobs.” However, after reading this chapter, I do not think this will be a huge threat. However, we have to remain smart because the bar is going to rise along with standards.

Chapter 4: The Great Sorting Out

This chapter raised many concerns for me about the new flat world. Now in globalization 3.0, we have apparently moved from a vertical connect & collaborate value-creation model. Friedman speaks about the internet decreasing the distance between the consumer and the real-estate expert to where consumers don’t’ expect as much as they used to from them. This is because we now have the ability to do our background research prior to big purchases such as a house or a car. I know I definitely will use the internet on my next big car purchase. As business leaders, it is important to take this into consideration because customers are able now more than ever to be their own “salesman.” We will need to be able to create value into our products that competitors can’t offer, to ensure that consumers won’t be fixated on the bottom line price. Friedman also interviewed Colin Powell and asked him when he knew that the world became flat. He said that when he went to work realizing that he no longer needed to ask his subordinates to get info. He realized it was there at his fingertips (for example, Google.) Now it changes the way he conducts business by asking his employees for action instead of information.

The chapter also spoke about rapid social change. This concerns me because rapid social change is very destabilizing and stressful. The fact that the walls and ceilings of norms will be taken out is likely to cause chaos and confusion.

Also, Friedman says that only a customer can guarantee an employee a job. At first I thought that Friedman did not know what he was talking about. Only an employer can guarantee a job, because they are employing. However, he changed my opinion on this when I read further. What he meant to say is, if consumers want things at cheaper prices and aren’t willing to pay higher prices, then we need to cut costs. Only by cutting the supply chain prices can we be able to get lower prices that customers will be willing to buy at. And if customers want lower prices (for instance at good ‘ol Wal-Mart example again,) then we need to either cut labor, or decrease their pay and benefits. So, when you flatten your supply chain, it turns into a political issue, and you may be taking out a certain humanity element out of life (have employees being able to make ends meet on cheaper pay or no work at all.)

The most striking part of the chapter to me was “death of a salesman.” I was a marketing undergrad, and I am aware that personality has a big part in landing a sale. Now, since a lot of business is being taken care of electronically, there is no longer face-to-face contact in some sales transactions. So price is becoming more of a bottom line, making it harder to gain more business. I have experienced similar frustration to this by people saying “submit your resume online.” It sucks really bad because sometimes you know if they got to meet you first, that they would be more willing to call you into an interview than just being another flat page in a sea of thousands.

Chapter 3: Trippple Convergence (I know it's spelt wrong I was going for the "tripple effect"...

This chapter was kind of borrring to me, so bare with me in this blog. It basically goes over how the ten forces come together. Just after I was done letting all the ten forces sink in during the previous chapter, there was more sinking in that needed to be done…

Force one deals with how all the flatteners came together in globalization 3.0. And it talks about collaboration. One thing that was kind of interesting is that he described the Southwest process if you fly with them. We always talk about it as a reference in class of how awesome it is, but I didn’t really knew what happened in the process. While it does demonstrate in a genius way of tapping into an untapped market, I don’t think I would ever fly with Southwest because I don’t want to have to fight for a seat.

Convergence two was a little harder for me to grasp. I think it referred to something about consultants and using IT effectively to make a set of business skills to enhance the flattener’s potential. Yea, that comment didn’t really even make sense to me. I don’t think he did a very good job in stating what this flattener was.

Convergence three, like Alex and Nick, I believe is a little far-fetched. He makes it all “scary” that 3 billion people are competing in the playing field. Yea, well not for our jobs. Not everyone has access to the internet, and many people live in poverty that do not have the same opportunities as the “zippies” in India as he calls them. So all these “3 billion” some will be competing with our jobs that may be outsourced, but others will be performing manual labor for large countries, if that.

Overall, I think this chapter should have been shorter because I felt like he was just trying to add pages...

Chapter 2: Ten Forces that Flattened the World (although I will be talking about five…)

While there were ten forces that led up to the flattening of the world according to the author, I will speak about the ones that stood out the most to me, due to me not wanting to make this chapter’s post 10,000 words…

# 1 – Falling of the Berlin wall on 11/9/89.

This caught my attention for several reasons. First, it is a big event that I remember hearing about growing up, but did not yet understand at the time. Second, I remember reading that Pope John Paul II, someone I deeply admire, was very actively involved in getting rid of communism at the time and wanted to ensure all people the right to freedom. And lastly, this outbreak of freedom lead to more outbreaks of freedom like a ripple effect. This set the ground for all the other forces. Some of its effects were opening the formation of the EU, and common standards of accounting, banking, economies, etc. I had no idea that this one event in history affected so greatly our economies and how we do business today.


# 4 – Uploading

This one is both great and scary. It allows us to have a voice and not let the media dictate what can and cannot be published. I have used Wiki countless times, I am blogging right now for the first time, and YouTube is awesome for making dull presentations fun. The scary thing is, people can publish anything, which even if it is not true.

# 5 – Outsourcing

I plan on outsourcing my presentations one day when I am a higher up in a company. Doing this will save me time from trying to make it all pretty, and I can focus on other demands of my job as opposed to wasting time trying to make a good looking presentation.

# 7 – Supply Chaining

This one was pretty awesome in the way he described it. I applied my Operations Management class here in my mind when he was talking about Wal-Mart. The fact that Wal-Mart is number one, and it does not make one single thing, is pretty amazing. It goes to show how having an efficient supply chain in business really does dictate in great proportion of how your business will do. It is an unduplicated system, and it is kind of freaky how when I buy something off the shelf at my local Wal-Mart, it is automatically signaled over in their corporate headquarters. This flattener made me want to take supply chaining more seriously with my future organizations because I saw just how important it is to have an effective supply chain. However, it did bring to my attention that I should consider, when is saving money going overboard? Wal-Mart gives employees crappy wages, and that is not fair either. There needs to be a line between doing business efficiently, and treating our employees humanely by giving them decent wages instead of just letting the fat CEOs and higher-ups bank on saving money in a supply chain.

# 8 – Insourcing

I had absolutely no idea that UPS synchronizes global supply chains. I think it is very smart of Nike and other businesses to let UPS take over its supply chain because it saves them time, money and makes business transactions go faster. It also taught me that even if I am in a big business, I should not become too confident, because small businesses can act big now, leveling the competitive playing field in an already flat world.

Chapter 1: While I was Sleeping

Throughout his whole book, Friedman did an excellent job of backing up and painting the picture of his theories. The fact that he has actually traveled to all of these places really increased my interest in what he had to say. He is obviously a “big man on campus” in the business world. He has so many important contacts with highly ranked famous people. All of these people that he speaks with disclose valuable information to the readers. As MBA students, we can use this book to open our eyes to the fact that business is changing, and we have to be on the ball when it comes to making ourselves marketable in this changing global world if we want to land and hold good jobs.

One key theme this chapter has is Globalization 3.0, where the world has moved from size small to tiny, where we as individuals can compete. We went from large multi-national businesses being able to compete globally, to small businesses and even individual people who can do business globally. This was interesting because I never thought about myself as having so much power. I could sell stuff to things in Russia if I wanted and do not have to rely on some huge corporation anymore.

When Friedman starts off in Bangalore, several things came to my attention. I did not know it was one of the most wired places in the world, nor that it was a rich place for recruiting people with technical and financial skills. I liked how he painted the picture of the call centers and described them as “frat houses.” At first I was kind of freaking out because I didn’t realize how many jobs were being outsourced and thought India was taking over. But I then realized that us employing India is helping their economy. They are now demanding more American goods, so what goes around comes around. We all prosper. I also realized that I used to get mad when I called Verizon and they had someone obviously from a different country speaking to me. But then I realized I should just get over it, because that is the way it is going to be, and its not like someone answering in Georgia could really be physically present anyways. And the job still gets done and I can understand them. So if you can cut costs in your business by outsourcing and the job is done just as well, then why not give jobs to India?

The Indians are encouraged to pursue constant self-improvement and education in their 20’s. It also made me think of the numbers of American high school drop-outs, and how they are making a big mistake in not furthering their education.