President Bill Clinton challenged IIT alumni to use their ingenuity in the service to mankind: “Being a good citizen no longer means paying your taxes and depending on your government. We can use innovation to help the less fortunate directly.” His message fell on ready ears and was deeply appreciated by 2,500 graduates of the Indian Institutes of Technology at PanIIT, their annual global conference, which was held in Chicago, Illinois. […]
New Exit Strategy for Mature Manufacturers—Acquisition by Asian Firms shows how process excellence can inject new vitality into ailing manufacturers.
Picture this: you are the CEO of a venerable manufacturer that has been besieged by price pressure, increased imports and high capital costs. Revenue has been barely edging up, and profits have been negative three of the last five years. You have had to lay off a significant portion of manufacturing personnel, many of whom had been with you more than a generation.Your ship is still taking on water despite best efforts, and you do not know where to turn.
This was precisely the situation of several U.S. firms that took the unusual route of selling themselves to Indian firms that turned the companies around very quickly by applying sophisticated process and management expertise. In many cases, local employment increased because the companies became much more competitive. Here are two examples:
India Trade Minister Draws Chicago-India Parallels at Executives’ Club offers coverage of Shri Kamal Nath’s Chicago presentation. Key themes: new global economic architecture presages economic realignment and thinking beyond the obvious to tap emerging opportunities.
Illinois leaders were addressed by His Excellency Shri Kamal Nath, Minister of Commerce and Industry, Republic of India. True to form, His Excellency struck chords of transformation, partnership, common interests and harmony at the lunch held in his honor at the University Club on 19 February 2008. Attending were Chicago Mayor Richard M. Daley, Mr. Rajinder Bedi, Managing Director of the Illinois Office of Trade and Investment, The Honorable Susan Schwab, U.S. Trade Representative, Craig S. Donohue, Chief Executive Officer, CME Group and John Estey, President & Chief Executive Officer, SC Electric Company.
Reading between the lines, the U.S. and India stand at a significant turning point: India’s impressive economic growth is a significant element of the ongoing redistribution of global economic power—which holds excellent opportunities for U.S. businesses and workers that are looking for it.
Globalization’s 21st Century Makeover explains how “emerging” market companies are rapidly becoming global players—to whit, new owners for Jaguar and Land Rover.
Emerging countries have long been regarded by globalizers as targets for exploitation, but 21st century market forces are turning legacy thinking on its head, which produces disruption and its sibling, opportunity.
The conventional thinking goes that emerging countries like Brazil, Russia, India and China (BRIC) have talented knowledge/human capital resources that can be tapped in outsourcing and offshoring arrangements. Moreover, these workers’ employment in high value knowledge jobs creates a new consumer class among large populations. Emerging countries’ rapidly growing consumer markets stand in sharp contrast to developed countries’, which are flat or shrinking. China and India have been relaxing restrictions on foreign ownership, which has increased FDI, especially in China, enabling foreign companies to invest in and buy BRIC companies.
However, the big story in 2007 was the opposite:
Will China’s Rise Lead to an Environmental Catastrophe? summarizes The Economist Chicago debate, examining the environmental fallout of the Chinese economic supernova—sibling rivalry rears its ugly head.
In 2007, nary an RSS feed or the page of a newspaper (for those still inclined ,^) does not mention China’s exploding impact on the global stage: China is truly an economic supernova, and it is breaking almost any record for development that is laid before it. However, China’s breakneck development is accompanied by grave environmental fallout: for example, as the host of the Beijing 2008 Olympic Games, the city is designing extreme measures to ensure that the air is clean enough for the athletes to breathe. The chief culprit is coal, a key source for China’s insatiable need for electric power, and a resource that the country has in abundance. For key facts on China, I suggest The Economist’s Country Briefing or CSRA’s Emerging Markets category (in depth) or China tag (mentions).
The Economist and WBEZ 91.5 FM presented an Oxford-style debate on the effect that China’s rise would […]
Caterpillar CEO Pitches Free Trade to Business Leaders at Executives’ Club asks whether the U.S. is at turning point with global economy in the balance—A lack of courage?
James W. Owens, Chairman and Chief Executive Officer of Caterpillar Inc., beseeched U.S. business and government leaders to find the courage to save free trade. The speaker at the Executives’ Club of Chicago’s Global Leaders Series, Owens addressed a packed house at the Hilton Chicago on 16 October 2007. His speech was immediately followed by the Club’s Technology Conference at which CIOs advised their peers on the emerging role of the CIO in the “networked economy 2.0.”
A Ph.D. economist with extensive global management experience, Owens made a very convincing argument that the U.S. and the global economy are at a turning point. It is time for the U.S. to lead by example to assure the continuance of the free trade juggernaut that has produced so much wealth in the world. If it fails, the world stands before the prospect of sharply curtailed trade.
Following a […]
China Analysis and Outlook 2007 offers political insight into the global knowledge market.
The Strategic Management Association, the Harvard Business School and the CDMA sponsored the 2007 China Outlook, which was given by Lyric Hughes-Hale, Founder China Online in Chicago 9 January 2007. Her presentation was preceded by David Hale’s 2007 Economic Forecast.
As a long-time China watcher and analyst, Lyric has rare and unusual insights to which I’ll try to do justice before giving my observations. The Global Human Capital Journal also covered the 2006 China Outlook.