New research from McKinsey looks in detail at 23 different industry value chains across 43 countries to get a better view of what companies are already doing on the ground and how they add up to fundamental changes that will shape the next era. It finds that the geography of global demand has radically changed over the past decade.
China, India, and other emerging economies originally plugged into global value chains by making labor-intensive manufactured goods and exporting them to advanced economies. But now their billion new consumers are a powerful force. Companies are absorbing and reacting to these deeper shifts even as they try to cope with policy uncertainty. With both industry structures and the global economy in flux, this is a moment to re-evaluate where to compete along the value chain and where to operate around the globe in the future.
One-third of respondents in a recent McKinsey survey of global executives said that uncertainty over trade policy is their greatest concern—and three-quarters of all companies say their global investment strategies are changing as a result. First, the geography of global demand has radically changed over the past decade. China is reaching the tipping point of having more millionaires than any other country in the world and now represents roughly a third of the global market for luxury goods.
While local demand is rising, emerging economies are also reaching a new level of industrial maturity. This opened China up for a huge influx of companies working inside of China. Offshoring is when a company takes a whole factory and relocates it to another country offshore. An example of offshoring is when, a whole factory moves from Fargo, North Dakota to Canton, China where it would produce the exact same product in the same way only much cheaper. By China joining the WTO, China ultimately became a challenge to the whole world with its mass of low-wage unskilled and semi-skilled workers.
Other poor countries like Malaysia, Thailand, Ireland, Mexico, Brazil and Vietnam have to compete for better tax breaks, subsidies, and other factors to encourage offshoring to their shores. Another problem that exists is workplace standards, lax labor laws, and low wages just to name a few. In talking about offshoring, Freidman tells a story about a friend of his who is an American-trained Chinese manager of a fuel pump factory in Beijing. Shortly after China joined the WTO, his friend posted the following proverb from Africa translated into Mandarin on the factory floor:.
When the sun comes up, you better start running Freidman, Wal-Mart is undoubtedly the largest retail company in the world and it does not manufacture a single product it sells. This supply chain moves 2. As one box gets transported through the supply chain, the engineering system keeps track of it coming in, where it is needed, if it needs to be supplied again, and if it does it sends the order in all automatically. Supply chaining allows suppliers, retailers, and customers to create value by collaborating horizontally. Supply chaining also forces common standards between companies so that every process can interface with the next.
These types of global supply chains have become important all over the world, the challenges are global optimization and coordination disruption prone supply with hard to predict demand. Wal-Mart is very good at redirecting its products when there is a change in demand. If demand is low in Texas then products can be redirected midstream to Indiana. What does sushi in Arkansas have to do with supply chaining? With its role as one of the ten forces that flattened the world, Wal-Mart in Bentonville, Arkansas was one of those places Thomas Friedman needed to see for himself.
But where am I going to find sushi in northwest Arkansas? And even if I found it, would I want to eat it? Could you really trust eel in Arkansas? As it turned out there were three new Japanese restaurants opening soon in Bentonville. It seems that UPS and FedEx both are synchronizing global supply chains for small and large companies. UPS headquarters is located in Atlanta but the UPS Worldport distributions hub is located next to the Louisville International Airport, which at night is taken over by the UPS fleet of cargo jets aircraft as packages are flown all over the world, sorted, and flown back out again a few hours later.
However, UPS is much more than just a delivery company of packages. It does much more, for example, when you send your Toshiba laptop to be fixed via UPS what actually happens is that UPS is fixing the computers at its hub in Louisville in a special clean room where UPS employees are wearing blue smocks and replacing broken motherboards in Toshiba computers and shipping them out again.
This type of business started around , when UPS created a whole new global business opportunity.
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If a company needs it, UPS will finance part of the business. According to Freidman, In-Forming is the individual or personal analog to uploading, outsourcing, insourcing, supply-chaining, and offshoring Whether it is Google, Yahoo, or MSN Web Search, when these search engines were new, people would react with eureka moments when they found the something in a search that was really good.
Now people presume they will find the data they are looking for when they are doing a search. It is staggering the amount of information that is out to be mined. In-forming also involves searching for friends, allies, and collaborators. Search engines are businesses too. In this flattener there are six steroids. In , the Intel processor produced only 60, instructions per seconds. Not only are the chips faster they are also smaller.
The second steroid is the breakthroughs in instant messaging and file sharing. The third steroid is the ability to make phone calls over the Internet.
The fourth steroid is videoconferencing. The fifth steroid is the advances in computer graphics driven by computer games. And as that has happened, more people from more places have started asking one another the same two questions: Can you hear me now? Can we work together now? None of these inventions would have been possible without mathematicians, scientists, engineers, and technologists working together. The world needs all of these professions to collaborate globally on global challenges and create the inventions that will make our lives better in the 21 st century.
Many groups have weighed in on the global challenges Scientist, Engineers, Futurist, etc. Engineers in the United States U.
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These are their challenges:. The Millennium Project, which is a global think tank, founded in This think tank connects international experts in universities, corporations, NGOs, UN agencies and governments all around the world. The Millennium project has list of 15 Global Challenges.
Their Global Challenges, which are more extensive than the other groups, are as follows:. How can shared values and new security strategies reduce ethnic conflicts, terrorism, and the use of weapons of mass destruction? How can transnational organized crime networks be stopped from becoming more powerful and sophisticated global enterprises? How can ethical considerations become more routinely incorporated into global decisions? If you look at all three of these global challenging lists, many of them are similar which tells us that these truly are important global challenges and they have been thought out by a number of different groups.
The question is how do we solve these challenges? That is the billion dollar question. One way to solve global challenges would be for mathematicians, scientists, engineers, and technologist all over the world to work on these global challenges together, some of that is happening now, but not to the extent that it could or should be happening.
Unfortunately, in the U.
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What would it take to educate our college students today to feel comfortable in working with any group of individuals around the world on a project? Are our university students being prepared for this type of work? The answer today would be no for a majority of undergraduate students, however, in order to accomplish this, some skills for the future need to be entrenched into higher education institutions.
As an example, a recent report from the Center for the Advancement of Engineering Education CAEE stated that undergraduate engineering education students reported a considerable increase in intellectual growth, but reported lower personal growth and fewer opportunities to study abroad than other college students Atman et. In preparing for a global career, students in their undergraduate studies should try to acquire global competencies and multicultural skills.
Included in the global competencies would be workable knowledge of global leadership skills which are essential to succeed in a globalized world. If you intend to be a global leader, you should know the answers to the following questions.
These questions were provided by working professionals at the IBM Corporation:. How to leverage the assets within a global team? Gandhi, The ability to address with the team; who has control to make decisions, how are risks, successes, and accountabilities shared within the team.
The ability to build collaboration within your global team through traditional methods or new collaborative tools. The ability to understand and manage the different specialization in the team, utilize and componentized the skills as needed. The ability to identify the key skills in the global team and utilize them in such a way that you get the most value from the project Gandhi, These are all further explained below:. Cultural differences - There are differences in countries, educational systems, religious backgrounds, environments, and cultures. Just in the cultural differences there are differences in individual verses collective orientation which come into play too.
The best way to handle this is to build a cultural awareness, and acceptance in the team. Differences in expertise level — The differences in expertise in a team can lead to ego issues. This is a challenge for the leader because ego problems can cause distrust issues. Geographic time zones differences — The lead must consider a common time but also take into consideration cultural considerations.
Allow flexible work schedules to accommodate individuals. And if needed allow for a share the pain approach so that everyone suffers equally. Always clearly communicate the acceptable time range to host a meeting. Perhaps it is not necessary for all to participate in all the meetings, make sure the right people are included in the right meetings. Trust issues - Leaders must build the trust in the team. The leader should have at least one face to face meeting so that everyone can meet. Introduce a break the ice type scenario so that individuals can meet and learn about each other in a relaxed atmosphere before the team starts on the project.
Clearly communicate team objectives, team responsibilities, team member accountabilities, project timelines, risks, etc to all team members. To build trust, communication is extremely important. Language and communication differences- English words have different meaning in different languages so this is an area that can be extremely difficult. The use of colloquials can be very complicated in conversations.
In the field of formal education in Nursing, we have to search for, obligatorily, an emancipating education, as an important dimension to form professionals with critical ability of thinking about them, thinking globally about the present structures, from their historical roots, and acting locally to solve problems, in a transforming way and with social and ecological responsibility.
The education needs to be committed with preparing nurses able to, among other aspects,: 1 know about local and global reality; be aware of the health profile of the population, regionally, nationally and internationally speaking; 2 work in the several levels of complexity of individual and collective health care, with social responsibility and commitment with citizenship; 3 develop a culturally competent practice, that values and respects differences in the scope of gender, sexual orientation, among other aspects; 4 build knowledge as of the educational practice.
In the context of care, some strategies are necessary, focusing essentially on people, guiding them to emancipation and autonomy, making them capable of thinking and acting critically to improve their lives. Likewise, to value and encourage believes and cultural values are essential to perform care culturally competent, favoring building attittudes, and health behaviors. The intention in this text was to open up space for reflection on some issues related to globalization processes and impacts on global health, pointing out some implications in Nursing.
Naturally, the cut we have used reduces significantly this complex and plural reality. Within this context, we have to ask ourselves: where should we go from here?
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Any path we choose implies collective responsibility and goes through the logic of solidarity, justice and human dignity. The future of Nursing and health will depend on our collective and political choices. Santos BS. Porto: Afrontamento; Ferreira JMC. Assmann SJ. World Bank. Attacking poverty: opportunity, empowerment, and security. Washington DC : World Bank; World Health Organization. World health report. Making a difference. Geneva: WHO; Lister G. Global health and development: the impact of globalisation on the health of poor people.