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.