Homework #3

1. Summarize each of the 3 convergence and draw a relationship on how each of the convergences has changed your life, and your future career.

The convergence #1 is that the ten flatteners have to spread and take root and connect with one another so that each flattener enhance the others. The more one flattener is developed, the more their magic on the world will be. In my personnal life, this convergence has changed the fact that I can do almost everything from my house thanks to internet such as online banking, shopping, hotels booking and so on. For my future career it changed the fact that I can send my resume online to apply for jobs.

The convergence #2 is that the ten flatteners alone are inefficient. There is a need for the emergence of people (cadre of managers, innovators, business consultants and so on) to get comfortable with and use them together in order to enhance the productivity. So a shift from collaborating vertically to collaborating horizontally in order to add value creation or innovation is possible. In my personnal life and future career, I will have to be aware of all the new process and technologies in order to not be outdated.

The convergence #3 is that the countries that had followed the sovietic economic model such as India, China, Russia, Eastern Europe, Central Asia and Latin America began to open their economy to the rest of the world so that they converged with the developped countries. It enhanced horizontal collaboration across the globe because the workers from each country could work with the rest of the world without travelling. This is seen as a new brain power and it is very important because it shapes the global politic and the global economy. This convergence is the most important for my future career because more and more companies tend to globalize and if I work in an international company, I will have to know how to deal with cross cultural differences.

2. Re: Death of a Salesman section. Explain what they mean when they say “The fat is what gives meat its taste?”

Ken Greer compares meat to business. For him, nowadays, the flattening process cut the fat out of business and life, but fat is what gives life taste and texture. By fat he means everything which spin around business and life such as the human aspect and the human contact. Today e-mails, phones and visioconferences are preferred to human contact because it’s faster and cost less and there is a « death » of salesman.

3. In Chapter 5 describe ( in your own words) the comparative cost advantage theory by David Recardo.

The comparative advantage theory argue that a country has to specialize in the manufacturing of a product if it is cheaper to produce and then trade it with other nations specialized in the manufacturing of other goods. This is suppose to generate a gain for each country so there is a global gain.

4. Discuss the argument between the Protectionist/Anti-Outsourcing idea to versus the Free-Trade/Outsourcing advocates provide me with your opinon for each side.

On one hand, I think that outsourcing, which is the process of subcontracting to a third party (included accross national boundaries) is a good thing because it is cost savings and it allows you to increase your productivity while focusing on specific tasks. Outsourcing add value to your products. On the other hand, I think this is an economic, ethic and quality issue. First, outsourcing in foreign countries doesn’t create jobs. Second, you can not control the work conditions in the other country. And finally, there could be a lack of quality control on the raw materials used to produce your goods.

Chapter 2 in the Chaffey text book

Read case 2.1 and answer (in your blog) questions 1&3

1. Summarize the operation of a B2B reverse auction from both the buyer’s and seller’s perspective.

The reverse auction is a kind of auction in which the buyers and sellers switch roles. From the buyer’s perspective, the aim is to buy the goods at the lowest price. From the seller’s perspective, the aim is to try to cut the margins as low as possible in order to get the deal. That is why the price decrease overtime.

3. Explain the benefits of reverse auction for the purchasers.

The principal benefits of reverse auction for the purchasers is saving. Moreover, it saves time in the negotiation process because the sellers compete directly in their offers.

Read case 2.2 and answer this questions (in your blog). Explain the relative success of lastminute.com using the six criteria found on page 69,70

The concept of lasminute.com is very strong. They generate the lowest prices for many travel and entertainment deals, and they package and deliver products and services, such as restaurant reservations, entertainment tickets and gifts in convenient, novel and distinctive ways. The target market is wide. Their concept is very innovative and they were the first on the travel and entertainment market to do that. Lastminute.Com is a fast website and it is secured for online payments. They advertise online but they also do advertise on TV, billboards and so on. The website is complete. The traffic generated is measured by the clicks, sales and newsletter’s subscribers.