In 2008 it was certainly an interesting year for international business people. The popular non-fiction book; "The World is Flat" by Thomas Friedman shook up the general public and made the best sellers list. Of course, it was answer by another author with a similar set of competing ideals called "The World is Round" and then there was the book by the former Clinton Administration's Commerce Department Secretary; "Futurecast" by Robert Shapiro.
What are all these books saying? Well, probably what most anyone who reads Foreign Affairs, The Economist or studies the research papers coming out of the UN or OCED already knows. The world is getting closer together every day and it is becoming a Glocal World as one famous economic Futurist who coined the term likes to call it.
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One troubling trend has been that many socialistic and communistic governments are stealing private businesses and giving them to the state. Bolivia has nationalized several mines and natural resource businesses much to the chagrin of foreign investors who put up the money. Venezuela failed to renew long-term oil leases effectively nationalizing oil, but they did not stop there.
Then there are issues at the European Union attacking American Companies, calling them onto the carpet for anti-trust, obviously following the United States' botched cases here, thus hurting American Companies abroad, like Boeing, Microsoft, Wal-Mart, and Intel. Speaking of Intel they have had problems in all sorts of Asian nations too, with 8 of their plants raided by authorities in Japan, undoubtedly trying to steal trade secrets under the disguise of anti-trust after complaints from AMD.
On the other hand the EU has made it easier for businesses in those countries to do business in neighboring countries. It has also opened doors for foreign companies to partner and then expand their product distribution throughout Europe. Then we must also consider the issue with the Euro value against the Dollar, which has made the US a more favorable place to make products and do manufacturing. And the strength of the Euro is making American products less expensive to European buyers.
China has been opening its doors to American Partners investing in manufacturing, but then attacking American Companies or companies with American Partners first when it comes to cleaning up their environment. So, that's a big catch-22, even as the patent pirating runs ramped.
China's emerging middle class is hungry for Western Products, but they certainly are not alone. Dubai is calling on experts in all industries throughout the world to help them build their shining city and they are buying lots of American products there too. Some are worried that Dubai is over extended financially and predict a catastrophic collapse, but that does not appear to be something that would happen in 2008.
So, much more to talk about and in more depth, but I thank you very much for listening.
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Car Guys vs. Bean Counters: The Battle for the Soul of American Business Overview
"It's time to stop the dominance of the number-crunchers, living in their perfect, predictable, financially-projected world (who fail, time and again), and give the reins to the 'product guys'...those with vision and passion for the customers and their product or service."When Bob Lutz got into the auto business in the early 1960s, CEOs knew that if you captured the public's imagination with innovative car design and top quality craftsmanship, the money would follow. The "car guys" held sway, and GM dominated with bold, creative leadership and iconic brands like Cadillac, Buick, Pontiac, Oldsmobile, GMC, and Chevrolet.
But then GM's leadership began to put their faith in numbers and spreadsheets. Determined to eliminate the "waste" and "personality worship" of the bygone creative leaders, and maximize profitability, management got too smart for its own good. With the bean counters firmly in charge, carmakers, and much of American industry, lost their single-minded focus on product excellence and their competitive advantage. Decline soon followed.
In 2001, General Motors hired Lutz out of retirement with a mandate to save the company by making great cars again. As vice chairman, he launched a war against the penny-pinching number-crunchers who ran the company by the bottom line, and reinstated a focus on creativity, design, and cars and trucks that would satisfy GM customers.
After emerging from bankruptcy in 2009, GM is finally back on track thanks in part to its embrace of Lutz's philosophy, with acclaimed new models like the Chevrolet Volt, Cadillac CTS, Chevrolet Equinox, and Buick LaCrosse.
Lutz's common-sense lessons, combined with a generous helping of fascinating anecdotes, will inspire readers in any industry. As he writes:
"It applies in any business. Shoe makers should be run by shoe guys, and software firms by software guys, and supermarkets by supermarket guys. With the advice and support of their bean counters, absolutely, but with the final word going to those who live and breathe the customer experience. Passion and drive for excellence will win over the computer-like, dispassionate, analysis- driven philosophy every time."
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