Globalization Full Portfolio

David Iskander

DAVID ISKANDER: GLOBALIZATION 2014 2

GLOBALIZATION 2014

MAY 2014

Written and published in accordance with Dr. Dennis Laurie’s Globalization Course at California State

University, Long Beach


ACKNOW LEDGEMENTS

To underline the valuation of this statement right away, all the gratitude is sent to Jesus Christ. Made certainly without significant help from my parents, friends, and teachers, this book is only a true statement of God’s faithfulness and character. At the top of my list, behind God, come my mother and father who selflessly gave up everything in Egypt to raise me in a land of opportunity. Like Mr. Buffett stated at a shareholders meeting recently, “The luckiest probability in the world is being born in the U.S. today”. I am truly blessed to have such great parents. My father, Nabil Mikhail Iskander, who passed away in 2010, was an inspiration of motivation and character. My mother, Angela Asham Iskander, is the driving force keeping me at my best through each season of life. In addition, I would like to thank my friends who have promoted me, encouraged me, and stood by me through each season of my education. I would not be where I am today without you. Specifically, I would like to thank Michael Redding for inspiring me to chase after my dreams in the business world. My pastors, mentors, and leaders throughout the years would be remiss if I did not mention. This goes for all my teachers as well. It is said that, elite colleges do not produce harder workers or happier people but what does is inspirational teachers. I can attest that my most inspirational teachers have led me to be the person I am today. Sincerely, with all my heart, thank you.


PROLOGUE As I finished the manuscript, I felt it necessary to say that this book is first off an introduction with in-depth analysis of the globalized world we live in today. From a business stand point, the insights and analysis hold one main conversation topic true – globalization is changing. By publication date, this text illuminates a moment of globalization in 2014. The scope of the text is for readers with little to no knowledge of globalization in the business context to begin to understand the depth and complexity of the term. Further, this book records information about starting a career in todays globalized economy. After many months of study, this book highlights the key findings. Enjoy.


TABLE OF CONTENTS

Globalization Chapter 1: 2014 6 Chapter 2: The Rise 10 Chapter 3: Our Advantage 13 Chapter 4: Our Disadvantage 16 Chapter 5: Counter Forces 18 Case Studies Chapter 6: Shaking Things Up: A Coca-Cola Case Study 20 Chapter 7: Trillion Dollar Tax Issue with a Billion Dollar Company: A Caterpillar Case Study 24 Chapter 8: A Monumental Expansion: A Panama Canal Case Study 27

Career Development Chapter 9: $ / ¥ 29 Chapter 10: $1,000,000 31 Chapter 11: Fortune 500 33 Chapter 12: Convergence 35

Appendixes Appendix A: Biography 37 Appendix B: Tracked Hours 38 Appendix C: Pizza Team 39


[1]

2014

What had seemed as insignificant, minute advancements in the twentieth century came together almost seamlessly to be the biggest revolution of its kind. With new technology, new innovation, and new ways of interconnectivity, we found a tandem compound each year to what we now deem as globalization. When the walls of sovereignty were just being formed for the majority of the world’s nations, globalization had already grabbed hold of their economies. Each year the world is more interdependent and connected than the previous. My Nike Free 5.0 shoes made to have a barefoot feel are made in China. Hanging right above my ankles are my Levi 511’s made in Cambodia and my slim fit dress shirt is tagged “made in Indonesia”. My snack after breakfast - almonds - happens to be the only thing that comes from my state, California. Even while I am staying in a none-westernized country, for example, in Asia, I can find delicacies I trust. My favorite drinks, shopping stores, and hotel services have been globalized to give me the comforts of home anywhere in the world. It’s true, globalization is upon us. It is at this point inevitable, real, and moving faster than ever before. When militant groups in Nigeria deviate oil from a major pipeline that flows into US automobiles, the price shift up of just a couple pennies is acquired from the owner of that vehicle. The Kleptocracy in Nigeria that is based on the export of its natural resources is part of OPEC – the world’s largest petroleum cartel. Helping themselves to the world’s oil has led to influence the price of gas in the United States in the near future. These quite different world autonomies both share one thing in common. There are both now apart of the sweep globalization is having on the world. Globalization “Globalization is the interdependent, worldwide marketplace for products, services, labor, capital, technology, and culture.” In less than a decade, an optional course in colleges of business and a word brushed to the side in corporate boardrooms is now a headliner performing new tricks everyday. It is a reality now. The intersection of cultures, people, and nations is being crossed more frequently and in new ways. Nigerians living in underdeveloped socioeconomic conditions influence Shell Petroleum Development Company of Nigeria to change their operations as 40,000 – 60,000 barrels of oil are being deviated each day. This cross of people and operations is a part of the tandem compound that the global economy is creating.


New graduates are building their careers in this global arena. No longer are only students in the greater Los Angeles area competing for the jobs within the perimeter. Today, students at either Wharton School at the University of Pennsylvania or at the London Business School or the Hkust Business School in Hong Kong (ranked number 8 in the top MBA programs globally) are going head to head for positions at the Fortune 500 companies. We live in a world that is more connected than ever before. A century ago it took a week long journey to go from New York to California, today, it takes less than 48 hours to reach any destination in the world, ten seconds to call a friend 7,000 miles away or even message a friend through an App in a fraction of a second, sovereignty and nationalism are taking on new definitions. Thomas Friedman published The World is Flat in 2005. Friedman’s book is already outdated in many ways but his main theme – our countries are becoming more interconnected - is undeniable. He believes that as boundaries come down, everything moves easier. In the book he talks about ten flatteners (forces) that galvanized globalization (Collapse of the Berlin Wall, Netscape, Outsourcing, Workflow Software, and more).

2014 Business Fortune magazine publishes its Fortune 500 list of the top companies in the US, by revenue, each year. For over 50 years, Fortune 500 has shown the list of America’s largest corporations. Through the beginning of the new century, Fortune began to publish the Global 500 listing - the top 500 corporations by revenues throughout the world. In 2013, Royal Dutch Shell took the number one spot with revenues at $481.7 billion, respectively. In 2005, Royal Dutch Shell was located at the forth position at approx. $268.7 billion in revenue. Considering the evolution of globalization on the world economy, and the increases in consumption as a byproduct of our interconnectivity, Royal Dutch Shell is part of Globalization 3.0 taking on the turn of corporate 2014 business.

Interdependent Production, labor, trade, innovation, technology and profits are interconnected and linked through global commerce. As the example in Nigeria, a sudden change in Africa has a


perpetuating effect outside its borders. The US, China, and other oil dependent countries accompany the Nigerian struggle by paying a premium on their oil. The character of interdependence defines a reliance upon each other that is not visible until it is missing or dramatically altered. For instance, as long as I can go to my gas station and find the pumps working, I do not worry or consider where the oil comes from. On the other hand, if a sudden closure of 90 percent of gas stations in the county disappear, my desire to fix Nigeria’s political issues is now relevant. The phenomenon of interdependence works both ways. Local affluence and consumerism in the UK purchasing general merchandise for their lifestyle clout the Honduras textile warehouse to keeps up operations. At the same time, turmoil in Thailand’s political instability and current volatility influences the American's availability to purchase Nike products. This integration develops and changes constantly. Overall, on a day-to-day basis, interdependent economies, nations, are interlocked. The financial crisis in 2008 was not just a hit for the US economy, but it spread all over the world.

Marketplace The modern day bazaar is not just limited to the town square any longer. The majority of the world exchanges goods and services in marketplaces. Today, it is widespread throughout the world. Brick-and-Mortar organizations to virtual organizations (Amazon) are exchanging goods, services, labor, capital, technology, and culture across borders easier and faster than ever before. In our formal, technologically advanced economy, the modern day marketplace takes life with people thousands of miles away, products moving across international borders, and services being tracked and delivered fresh and on time. The marketplace has been one of the major links to conjoining and intertwining different nations around the world together. A worldwide marketplace creates value for products to be produced in China exclusively for use in the United States, and vic versa.

911-5 The world economy has evolved from two billion people in the early twentieth century to toppling seven billion people in late 2011. During the twentieth century alone the world population grew from 1.65 to 6 billion people. As economically linked nations in 2014 face population increases year after year, our world economy is exponentially growing. Currently, roughly $9 trillion is moving across borders in products, $1 trillion in services, and $1 trillion in FDI (foreign direct investment). These three numbers – 911 - are the numbers that sum up the total annual movement of products, services, and investments. With that, on a daily basis, the world trades about $5 trillion in the foreign exchange market. Yes, $5 trillion - a day! The Mexican Peso is being bought in Tokyo, traded back in Singapore and then repurchased again in London with the click of a button. The global financial center index (GFCI) rates London, New York, Hong Kong, Singapore and Zurich as the top 5 in 2012. These markets all have been able to take hold of the truly global marketplace


that 2014 has presented. With that, the top four of all time are included in this list excluding Zurich. The daily balance of the global economy is run, in part, through these financial centers that are growing each and everyday. Just about 25 of the 77 financial centers the Global Financial Center Index follows are emerging markets. By 2040, competitiveness and the global economy may be looking at a whole new set of global financial leaders.

Global GDP Considering, the world’s gross product accumulate to a total of $87 trillion dollars. The United States accounts for almost $17 trillion, respectively, and that means that $1 out of every $4 is spent by the United States throughout the entire world. Following up next in China, Japan, and Germany at roughly $5, $5, and $4 trillion.

Globalization Today Globalization in 2014 accolades itself again and again. As our interconnectivity increases, the global marketplace grows and then globalization enhances. In 2014, globalization is a fundamental, reality where careers, businesses, and livelihoods are being built. Just as magma explodes out of cinder cones and Shield volcanoes flowing down the landscape and consuming everything in its path, globalization is on the move. Unable to pinpoint the initial eruption, the all-encompassing advancements of humankind influence everyone in its path. Volcanoes take thousands of years to form. Globalization, in just about two decades, is just as powerful and has formed to a mature state. Globalization is steamrolling everything in its path with an unavoidable force. It is probably impossible to reverse as long as people still like Nikes, Levis, and almonds in the morning. This worldwide marketplace has changed the way people interact with each other and the benefits and costs outline a whole new way of life for tomorrow.


[2] The Rise

Incessant pushes on the human capability through innovation and technology have led to a great deal of advancements. The world as Thomas Friedman said is flat. The advancements he talked in the world today are still in progress. As the world becomes flat there have been four major factors that gave rise to the birth of globalization. The seeds of globalization began in the early 90’s.

Factors In 1989, the Berlin Wall falls. A symbol depicting the fall of communism, a great power at the time. The fall of the berlin wall was an important component in the rise of globalization by discrediting communism. Simultaneously, the fall of communism led to the rise of capitalism, the second major factor. A Darwinism mentality with winners on one side and losers on the other, Capitalism was now the stronghold on world politics. Next would be the Fortune 500 companies pushing and spreading their operations globally becoming multinational corporations. These corporations began investing millions, and soon billions, into foreign countries. A turn for capitalism to also increase, the Fortune 500 turned into today superpowers that rule and challenge governments, economies and civilization as a whole. Finally, technology is crucial and certainly influential. Without technology, the ubiquity of the marketplace, globalization would definitely not be as mobile or as advanced. This includes three major categories of technology that contribute mightily: Telecommunications: Telecommunications give individuals anywhere in the world global reach. The Internet solidifies information by reducing information asymmetry – the lack of information for one party versus the other. It gives the option to research, learn, investigate, and understand from your fingertips. The richness and density of information reduces costs and raises the quality. The interactivity created by telecommunications is also rich by media options like video messaging, videos, pictures, music, and more. Above all, the Internet is built on one


set of standards. Easier to understand than any government system, the Internet is build up on technology standards that are universal. Access to the Internet is becoming cheaper and easer everyday with the advancements of the next category. Information Technology: Information technology encapsulates many different arenas of data and information transfer through people, procedures, databases, networks, software’s, and hardware’s. The price for the products and storage options keep going down while the amount of data keeps exponentially growing at unimaginable rates. For instance, Intel postulates that since the dawn of time until about a decade ago, 5 exabytes of data have been created – a number already inconceivable. With that, in 2012 alone, roughly 2.7 zettabytes of data will be created. That equates to 500 times more data in 2012 alone then since the beginning of time. Plus, by 2015, it should grow to be three times bigger than 2012. This explosion in data is due to more sources and devices. In part contributed to the interconnected, global economy running wild through every nation everyday. Transportation technology: Transportation technology influences the ability of globalization from rail, to tracked shipping, to logistical and onboard ship technology that manifest valuable and new operational ability for corporations. These forces are pushing globalization forward as the biggest promoters. The biggest lobbyists through the world of globalization come from these for factors and their influence. Capitalism builds wealth in nations that before were restricted to their town. Further, the fortune 500 companies are build on the idea of capitalism, a severe case of Darwinism; that is, the only and more important goal of business is to create profit. And underlining all these dynamics is the increasing aptitude that technology gives us in every moment, anywhere in the world.

Myanmar, Formerly Known as Burma A nation with roughly 50 million people, poverty stricken from a repressive regime’s control over the last two decades has now opened up to the world economy. Just in 2008, when the world economy was well underway, Myanmar’s military officials had picked their position. A sudden natural disaster caused an episode in Myanmar’s history to go either way. The choice was a simple yes or no; however, the choice would influence millions of people and their livelihoods. In 2008, Cyclone Nargis hit Myanmar killing over 80,000 people and 50,000 people went missing. The UN estimates that nearly 2.4 million people where impacted by this two-day event. Businesses, livelihoods and entire towns were demolished. The world responded with foreign aid creeping around the nation on the sea and in airports in Thailand – approx. 30 minutes away. The strong hand of military rule denied access to any of this aid while being unable to provide proper relief efforts for their own people. This devastation arose and was soon forgotten, as Myanmar did not want to play part in the global arena. The interdependence of foreign allies to the military for had no need for cooperation. Fast-forward to April 1, 2012 and the military rule no longer had the upper hand. Democracy, led by the famous dissident Aung San Suu Kyi was introduced to a country held


under military rule for over 50 years. She became a Nobel-Peace Prize winner for her non-violent struggle to democracy after 15 years of house arrest in her home country. Today, two years after this election, Myanmar is raising its hand and opening its doors to the global arena. The fall of a suppressive regime – discrediting a military enclosed rule – stepped Myanmar forward in one giant leap. Myanmar represents on of Asia’s largest and geographically prime locations that is untapped and a new market completely for the global arena. Coca Cola in 2012 was able to sell its ‘moments of happiness’ again in Myanmar after being banished for over 60 years. Large companies like Honda are investing into plants to build motorcycles. Japan is investing millions into technology to expand the education system in Myanmar. These are not baby steps but giant shifts with the power of globalization interjecting into their lives, infrastructure, and government policy for the people of Myanmar. The rise of globalization has introducing the idea that as any nation nurtures the growth of these four factors, the possibility of being a global competitor arise. The swift acceptance and rise of capitalism in Myanmar is a great illustration of the power of globalization in a more than developing world.


[3] Our Advantage

Myanmar highlights continued acceleration of the propelling force advancing continents, nations, societies, people groups, and individuals. No greater world economic shift has taken such widespread influence in such a short time frame. This movement, in a developing nation such as Myanmar or a developed nation as the United Kingdom, outlines key benefits for all its shareholders. Wealth Generation Firstly, the world’s largest corporations to the most rural family in Indonesia contribute and take part. Therefore, a main integral advantage of globalization is wealth generation. Globalization does more than hint the need for free-market economies. That so, as competition increases, which results in greater efficiency, then more money can be made and economies work resourcefully. To date, the fight against poverty is rendered most effectively within free-markets and facilitating globalization. Hence, as Carlos Slim, the billionaire in telecommunications in Mexico said, “Charity can never eliminate poverty, but what will is capitalism”. Globalization has aided the world better than any NGO or Philanthropist in bringing people out of poverty and deprivation. Up until the Industrial Revolution, the majority of people lacked opportunity. Economic freedom, according to the Heritage Foundation starts when, “governments allow labor, capital and goods to move freely”. This brings us to another benefit of globalization, World Peace. World Peace “When products seize crossing borders, soldiers will”, the political economist Frédéric Bastiat, author of The Law made a large statement for his generation. The early 1800s knew nothing of the onset of globalization in the 20th century. It seems hardly plausible that world peace will ever happen with much of the world in chaos and turmoil today. Yet, even more so, world peace is taking on a new foundation underneath cultural contexts. It is understood that from 1874 to 1939, Germany and France had invaded each other three times. Fast forward 69


years after World War 2 and we find that Germany and France have pulled back from using military force to accomplish all their national goals and establishing sovereignty. Globalization not only highlights world peace by avoiding wars but also by achieving monumental economic stature. The Japanese, a bit over a half-century ago, were found nowhere on the radar as an economic super power. Subsequently, war broke out and the Japanese attacked the United States at Pearl Harbor. Many learned about the catastrophe of that day in grade school. It is convincing to see Japan now at its current level of economic power without a barrel of a gun pointed at other nations. Today, Japan is one of the most powerful economies in Asia and paves the way for similar cultural nations to emulate their success. They accomplished national growth, not with more attacks or a stronger military, but through globalization, an interconnected global economy. Benjamin Disraeli, a British conservative politician who served as Prime Minister twice, gave us important insight to the future of peace before he passed away in 1881. Disraeli punctuated this point audaciously when he said, “Peace is best preserved, not by statesmen, but by capitalist”. Disraeli did not see the forthcoming of even the end of the Industrial Revolution, yet grasped the undertaking necessary for peace to come. Creative Destruction Thirdly, a seismic influence on our world is the interpolation of efficiency between people and jobs known as creative destruction. This term by Joseph Schumpeter, an economist and scientist who died in the late 1950s, realized a great truth of globalization. That is, poor performance or even highly efficient performance will be swept away when even-greater efficiency in any operation is realized. Forte Paine, Alabama, not to long ago, was the sock capital of the world. The residents were buying houses, new investments and shops were opening up all over town, and the streets were thriving. Large companies were selling their products and everything was moving fittingly. Until, lay-offs starting to happen and residents began to move to other cities and states to make a living. Why? That is, meanwhile, as Forte Paine was doing what they did best, manufactures and factories started to cultivate in an unimportant town – at the time - across the world. The cost of socks in Forte Paine was no longer the best deal in town. With globalization, the sock capital of the world now is in Datang, China. This small town in Eastern China is now producing billions of socks and bringing in billions of dollars of revenue. Today, the streets in Datang are now thriving while Forte Paine is a ghost town. Creative Destruction is explained by Schumpeter as the, “incessant revolutionizing economy structure from within, incessantly destroying the old one, incessantly creating a new one”. It takes on a global scale in 2014 and only looks to take on a bigger precedence in the years to come. The residents of Datang, China may feel they are sitting pretty but creative destruction is a character of a globalization potentially benefiting all. Creative destruction has key benefits. First off, a benefit is more efficient operations. This outlines that poor performance and inefficient operations are swept away with advancements in efficiency. We would still be buying expensive handmade chairs otherwise. Next is an


increase in income value. Typically, the prices on goods drop with advancements. That means we have more money to spend on other things than socks. Also, jobs are eliminated, created and then multiplied. Admittedly, there is an initial loss of employment but other jobs are being created and multiplied. Take for example an automaker’s assembly line hypothetically going from hand made cars to fully automated production. The number of employees is cut dramatically while the demand for IT professionals, programmers, and service repair teams increases. Joseph Schumpeter was underlining that loss in an inherent part of growth. With our continued growth, by 2025 we will have a new story of the sock capital in the world. Possibly, it could be Vietnam, Bangladesh, or Cambodia. With potentially a cheaper labor force or a changing government rule, Creative Destruction is an inherent part of globalization. Suppressing Tyranny Lastly, on the news, more often then not, we hear about dictators being thrown out by their people in protest demanding better opportunity, rights, and freedom. The fourth advantage perpetuates cosmic, inconceivable benefit that manifold through every one of the world’s 7 billion residents. Globalization’s advantageous character is doing a phenomenal job – better than many UN meetings – to overrule suppressive tyranny. Autocratic rules, which have suppressed their people for years are finding themselves in a tight situation. Dictators for centuries have had the ability to rule over the people by implanting fear into the heart of the people. Deprivation, trepidation, and uneasiness bore the souls of innocent individuals. Globalization is heading to change that. Autocratic rulers are in fear of globalization. Mainly, technology in the hands on any individual ignites two strong concerns. First, technology lets people see more opportunity than what they currently have. This leaves them feeling left out or unworthy. Secondly, technology allows individuals, communities, and small bodies of people the ability to do practically anything themselves without waiting on the ruler. The fear dictators impregnate into their people with hostility is now contracting as the world increasingly is more interconnected. The Heritage Foundation’s Economic Freedom Index paints a vivid, clear depiction of why these regimes are the leading cause of poverty and deprivation. The Economic Freedom Index rates the level of freedom of 178 nations. In 2013, 114 nations improved while 59 declined. Globalization has seen a mighty force sweep the totality of the world’s government powers. As time progresses, rulers who use a gun named fear toward their people are now feeling globalization point a gun at them. These factors have a largely widespread impact on the livelihood of the average individual. It is safe to say that the Arab Spring, protests in Thailand, and rebellion in South America have one thing or another to do with globalization. People are demanding their freedom to have opportunity. More so, there has been no time in history that we have been so prosperous. Globalization outlines a new world order that dispatches a reassuring cry that change is a natural part of growth.


[4]

Our Disadvantage

The full side of the story needs a transparent portrait to make clear and understandable. Globalization plays a large role in changing the lives of an average person in the middle of the Sahara Desert or someone atop the 100 floor of the Shanghai Tower. Either way, there are costs to this fervent permeation of globalization. Environmental Damage We are becoming more aware that increased efficiency, increases consumption and therefore our footprint on the planet is only increasing. This means, as globalization increases, environmental conservation and sustainability are vital to the future generations. Consider, with all else equal, an increased population from 7 billion to 9 billion people by the year 2050 and globalization increasing incrementally year after year until then. Our environmental footprint is something we need to deal with. Especially, advanced, developed economies will be provident. Labor destruction and Violation As of late, job outsources has not been a big topic on the news but not too long ago, Americans were frustrated that more and more jobs were being sent to Asia, especially China. A simple formulated response to cheaper labor equals a bigger bottom-line is part of globalization. As prices for labor are cheaper in foreign nations, jobs tend to be outsourced. Also, issues with child labor, minimum wage, and abuse are only intensified with outsources and a more interconnected world. Higher demand for product coming in from foreign nations means jobs increase. Under those circumstances, unprotected workforces are left to harsh conditions. Furthermore, as we become more interconnected, these issues are brought to light and how customers and companies respond is critical. Small Competitors Wal-Mart has been trying to maneuver strategically into India for over 20 years. Even with greater efficiency, more money and jobs being created in India, the government of India has weaned any Wal-Mart store being built. This is because India’s economy is built on hundreds of thousands of mom-and-pop shops. Consider if one Wal-Mart enters a neighborhood, more likely than not, all the surrounding businesses will be shut down within the first year of the Wal-Mart store opening its doors. Small businesses have a very hard time competing in a globalized economy.


Reduced Nationalism Today, with the ability to work from anywhere and communicate via hundreds of different avenues, nationalism is not as preferred. Reduced nationalism is a major discussion when it comes to national sovereignty. Trade treaties and tariffs alike tell the story of how high the borders are of a particular country. With that said, nationalism is less and less essential as we continue to develop and advance. Black Swan Vulnerabil ity Nassim Nicholas Taleb, a teacher in London and ethnicity Lebanese, coined the theory of a Black Swan. Simply put, there are three main criteria for a Black Swan:

• A small probability of occurrence considered non-computable probability of the rare event

• Moment of impact is unknown and happens in a moment

• The disproportionate impact of such a rare event that is beyond the realm of normal expectations

Black Swan Vulnerability is now heard often in corporate boardrooms. Recent examples like the Target IT breach and the GM recall on the first day of Mary Barra’s position as CEO are Black Swan’s. Further examples, include the invasion by Russia in Ukraine, which had major implications for European trade, the BP oil spill in the Gulf of Mexico in 2010, and Mattel learning its children toys included lead in the paint. Concerning the cost of globalization, Black Swan Vulnerability entails that in April 2011 the Fukushima earthquake not only had large implications for Japan and the surrounding region but also globally. By July 2011, fish markets and sushi bars in California saw the price of fish increase and supplies vanish. 150 years ago, the same earthquake in Fukushima would not have such an effect on the rest of the world. Income Disparity GDP per capita rankings display a numerical analysis that economies vary widely and levels of income do as well. This tells us that, all things equal, as globalization increases, more wealth is generated thus resulting in wealth dispensed. However, this by no means entails equal dispersion of wealth. Currently, in the United States income disparity has widened over the past two decades. Income disparity is already a large matter in the world and looks only to widen as the year 2020 and 2030 near. In all, the costs of globalization are necessary to understand the effects globalization has the world both positively and negatively. Many negative aspects are addressable while lots of people suppose counter measures towards the rise of globalization as the best plausible way of reconciliation.


[5] Counter Forces

“Trade enriches the vast many, pauperizes the few, and the few rebel.” - Anonymous Globalization 2014, seldom to a carefree worldwide transition, is facing major opposition. A company or a singular force never initiated globalization. Rather, it was perpetuated by society as efficiency demands increased, technology advanced, and transportation costs decreased overtime. In any case, there are major factors playing against the present globalized world we function in today.

Unions Firstly, Unions are a powerful force against globalization. The UTWU, UAW, and Teamsters alike, since the birth of globalization, have fought against the rise of globalization. For instance, the UAW backs the American auto industry. When foreign car companies invest into manufacturing in the United States, for example, they have strategically placed themselves south the Mason-Dixon line. Underneath the Mason-Dixon line, these auto industry competitors have the option to unionize while most have yet to. Just recently, VW, according to the WSJ, allowed a vote to allow employees to choose to be part of the UAW. The majority voted against the unionization. Seen as a win for some, Unions are forewarned against this force. Indeed, as foreign competitors invest globally, unionized members are becoming seen as ‘the few’. Further, this is costing corporations more money and making it harder to compete. Thus, unions are rebelling against their lost momentum.

Domestic Monopolies Secondly, domestic monopolies play a large role in impeding the development of globalization. During the rise of steal giants like Andrew Carnegie in the 20th century, the power of domestic monopolies became obvious. From Japanese rice growers to US steal makers, domestic monopolies use tactics like lobbying to keep tariffs high for foreign companies. These moves come to delay the expansion of globalization through new era’s of corporate influence. Many organizations play a proactive push towards or a contracting pull on globalization.


Organized Crime Thirdly, organized criminal organizations obstruct the natural flow of globalization. There are many different organizations preventing globalization from taking a stronger force throughout the world. For instance, pirates in the Strait of Malacca come with heavy weaponry and invade TEU ships loaded with tons of cargo. Right in-between Malaysia and Indonesia, most of these ships are either headed or coming from one of the busiest ports in the world. Singapore has the world’s second busiest port by cargo tonnage in the world right behind the Shanghai International Port. Undeniable, an ideal location for pirates, this is a bad location for natural growth of globalization. Pirates off the coast of Somalia disrupt the flow of globalization just as much in the Strait of Malacca. To note, highlighting the complexity and magnitude of our interdependent world. And not only do pirates with an oceanfront confront the growth of globalization. Kidnappers, Internet hackers, and pirated property all negatively influence globalization’s natural, dominating force.

Suppressive Government Fourthly, dictator type government powers juice the natural growth from globalization strikingly. Putin’s recent annexation of Crimea and the battle for Ukraine’s freedom demonstrate a clear example of the impeding forces playing against globalization. Kim Jong-Un celebrates his power of rule over his people by halting the natural flow of trade at the borders. National leaders and government powers have the influence to trample on the force of globalization knocking on their doorstep.

Groups who cannot Compete Fifthly and lastly, all the groups who cannot compete are a counter force against globalization. There are many organizations - large and small - collectively and unknowingly harmonizing against globalization. NGO’s pose a mighty threat against the power of globalization and its speed of onset. Environmental, educational, human rights, and many more NGO’s in the US account for 40,000 potential obstacles. Also, public demonstration groups like Occupy Wall Street, the poorly educated and Luddites – named after Ned Ludd who in the early 1800s was against machines being used – try and sweep globalization back under the rug. Their actions have lead to civil and uncivil initiatives. Many of these respondents have a reaction towards globalization by attack. There are two ways any individual could response. That is, one could respond by taking part in or going against. Counter forces in globalization are found in the newspaper everyday. Union votes, partnerships between already dominating firms, government shenanigans, criminals causing disasters and many more. Whether the news is headlining or dismantled through the grape vine, counter forces are a prevalent factor in the rise of globalization.


[6]

Shaking Things Up: A Coca-Cola Case Study

Every Fortune 500 Company now operates at a multinational level and competes with foreign firms. Intrusively, they face competition from foreign competitors in the US market. Coca-Cola, with 127 years behind its name, and ranked number 3 on Interbrand’s Best Global Brands list at $79.2 billion – not million - brand names in the world, can highlight some interesting points about globalization in 2014. According to Coca-Cola, with over 1.9 billion services of the Coca-Cola Company beverages each day, the company is the world’s largest beverage company. In mid-2013, Coca-Cola inaugurated its first ever-bottling plant in Myanmar, a $200 million dollar investment. This highlights, Coca-Cola’s focus to be an industry leader in non-alcoholic beverages. Today, Coca-Cola has 17 billion dollar brands like Sprite, Diet Coke, and Fanta. The vivid numbers show that Coca-Cola is inspiring moments of happiness and refreshing the world.

Current Status In 2012, Coca-Cola recorded approximately $48 billion dollars in revenue with $9 billion in profit, an almost 20 percent profit margin. With nearly 4.5 billion shares outstanding and a share price average in March 2014 of $40, Coca-Cola’s market capitalization stands at over $160 billion. Also, in 2012, Coca-Cola’s dividend yield was almost 3 percent. [Warrant Buffett’s company, Berkshire Hathaway Inc., currently owns just about a 10 percent stake of the company. Resulting in ownership of 400 million shares at a sum valuation of roughly $15 billion. Buffett said, “I’m the kind of guy who likes to bet on sure things,” at a recent Coca-Cola shareholders meeting. Creating moments of happiness appears to be worth investing heavily into.] Coca-Cola employees over 150,000 people globally. These employees serve to progress over 500 plus drink choices in 200 plus countries with 17 of those being billion dollar brands and 20 other megabrands generating more than $500 million in annual retail sales. Today, North America generates roughly 45 percent of their sales.


Headquartered in Atlanta, Georgia, Coca-Cola’s CEO Muhtar Kent has held his position for almost five years. Since taking his position, the company has faced many issues that Kent addressing in a recent interview. In the interview with the Harvard Business Review in 2008, Kent gives us not-so-clear vision for the future. Mainly, Kent outlines priorities at CEO, branding, obesity, and sustainability issues.

2020 Vision “Establishing a long-term vision (2020 Vision) and restoring growth in North America” Kent emphasized as the priority to get Coca-Cola to reach new levels of success. He elicits turning things around for the company would be to go from a company-centric focus by using new forces to stabilize the company. These new forces consisted of bring in people from all around the world. As Kent describes this, he then loosely cultivates his own thoughts about the matter. He states that the people he brought in from all around the world were people from the company.

Case Analysis The first discussion of this case study was to analyze and evaluate Mr. Kent’s replies to the interviewer’s questions. The company has faced many hardships due to decreasing sales and becoming what some called too big. Addressing this issue was a concern about the company holding too many meeting with just Coke people. His response was to get people from all around the world. Dimly helpful, the people were Coke people. Further, the 2020 Vision, namely, has been set out to double revenues by the year 2020. It has a vision for profit, people, portfolio, partners, planet and productivity. Kent’s discussion about the vision and its potential is large. This global company is setting out to supersede benchmarks and towers of success. Under a closer analysis, the road to success seems very unclear. The company has guided its vision but has not made itself clear on its objectives. Peter Drucker, an Austrian-born American management consulter said it right that, “You cannot manage what you do not measure”. It seems that Mr. Kent’s large speech, vast vision, and on-track plan seem to be nothing more than a conversational topic. With that, analyzing the numbers shows revenues drop from 2012 fiscal year to 2013 fiscal year by almost $2 billion. The Wall Street Journal published an article on April 10 that Coke-Cola’s flagship soft drinks are getting a hard hit in their North American market. Further underling our discover that a goal without a plan is just a wish.

Brand Value Coca-Cola has over 500 different drink options and only one of those is titled Coca-Cola. That brand value has risen to extraordinary levels of valuation. When asked by the Harvard Business Review about applying the company’s name to other beverages Mr. Kent replied, “Because branding does not work that way”. Reflecting on this reply, evaluate McDonald’s McChicken, McFlurry, and McCafe. Also, Nike’s swoosh on all Nike products. Similarly, Apple


puts its name and logo on each and every one of its products. This draws the conclusion that there may be deeper issues on why the 3rd most reputable brand value is not used on other Coke products. That is, Coke-Cola has issues with its Coke brand name that affect its other brands. For example, Coke products do not touch any shelf’s in supermarkets like Trader Joe’s, Sprouts, or Whole Foods, a set of supermarket chains that have taken a presumptuously large growth over the past couple years. Because these stores focus on health (Whole Foods), price (Sprouts), and uniqueness (Trader Joe’s) these companies dare not to put Coke on their shelves. Or do they? In any one the many Sprouts locations you can find Zico Premium Coconut water, a Coke brand. Similar in the other stores as well, this gives Coke a way to skip on the obesity issue and not trample on conflicting markets. A final analysis of Mr. Kent’s reply, without making any farfetched conclusions, indicates that there is a lot more to this story than just branding. This brings us back to the transparency of the article written by the WSJ on April 10. Coke has suffered immense pressure from around the world that their drinks are a main source of obesity with so many sugary, unhealthy beverages. Kent refers to this by initiatives of promoting education about health, sports, and activity. This issue has long due issue with how Coke will reach its 2020 Vision especially as its biggest market is now taking Coke out of the fridge.

Corporate Social Responsibility Sustainability or Corporate Social Responsibility (CSR) has held itself as bigger and bigger news as globalization grows and grows. With its large CSR initiatives, water sustainability is mandatory for the continued success of Coca-Cola on a global level. Today, over 350 billion liters of water a year is used for its business processes. Also, with the 2020 Vision, Mr. Kent said, “we’re committed to water neutrality by 2020”. A major feat indeed, ambitious in all respects, there are some issues. The World Wildlife Fund (WWF) both measures its water use and water conservation efforts. A conflict-of-interest to say at the least. The current amount used to produce one liter of Coke is 2.26 liters of water according to the WWF. One way Coke deals with this problem is by building wells in Africa. In hindsight, without disregarding the beauty of building wells in Africa for people in need, this does not sold the issue. For instance, if Coke uses 1 million gallons of water in a small city in India at one of its plant a year and brings neutrality by building enough wells to equal 1 million gallons in Africa, all this is does in make the numbers equal. Yet, people in India are left in a greater demand for water. In final analysis, it is safe to conclude that Coca-Cola has a big water issue to deal with.

Sustainability: leaving mother earth at sundown the same way you found her at sunup. CSR: Extra-legal, social programs Both terms are used more and more in corporate boardrooms.


Conclusion Coca-Cola, moving into its second century, is a well-matured company that has had substantial growth through difficult times. Delivering moments of happiness bottled up in bubbly refreshment has seen a new day. That is, globalization has taken on its once well-to-do product to a realization that this could easily end up like the cigarette companies ridiculed, hated, and bad-mouthed on the news. CVS has made a commitment to take out all cigarettes from its stores. This move comes out as health concerns are pressing forward and unhealthy products are moving back. Processed sugars, and unhealthy drinks don’t seem to be on the rise but the decline. Maybe it as it was easy for Buffett to bet on sure things, it may be just as easy for him to change his bet on sure things, we will see. In all, globalization will have something to say about all this.


[7]

Trillion Dollar Tax Issue with a Billion Dollar Company:

A Caterpillar Case Study

In an article published by the WSJ on the first of April 2014, Caterpillar (Cat) received major attention from the Senate’s Permanent Subcommittee on Investigations about unlawful tax practices (SPSI). The Subcommittee’s allegations against Caterpillar also are under heavy examination of Apple Inc., Microsoft Corp., and Hewlett-Packard Co. Each of these companies structures and practices are being analyzed due trillions of dollars of cash left overseas. Today, profits held overseas and safeguarded from US tax law accumulate to $2.12 trillion dollars in the Russell 1000 index. Up about $1 trillion from 5 years ago, this seems to be a behemoth issue that the United States needs to address. Either way, the direct action today is to target large U.S. firms that may be shielding profits from taxation, namely, Caterpillar.

Current Status Caterpillar is one of the largest producers manufacturing business in the world. The current CEO, Doug Oberhelman, has driven the company for about four years. With Net revenues in 2013 at just about $55 billion, 120,000 employees, and headquarters in Peoria, Illinois, Caterpillar has gained the 42nd position in the Fortune 500 list and 136th position in the Global 500. A remarkable producer, Caterpillar manufactures trucks, construction, and farming machinery. Profits in 2013 were recorded at $7 billion, roughly 13 percent of revenue. The dividend yield was 2.4 percent and the company paid a 29 percent tax rate. Today, roughly 70 percent of Caterpillar’s sales are international. Cat’s business model is through manufacturing, marketing, research and development and sales. Specifically, sales of replacement parts are a large source of revenue for the manufacturing giant.

Case Study The United States tax law, according to the WSJ, requires U.S. firms to pay corporate income tax on profits earned from any international sale. This is quite contrary to foreign nations that only tax domestic income. However, U.S. tax code allows companies to defer tax payments on overseas income until the cash comes back home. This tax law has initiated the Subcommittees investigations and allegations against Caterpillar for evading the payment of over $2.4 billion in U.S. income tax on $8 billion dollars in sales. Caterpillar, in the late 1990s, reconstructed how it handled the

The Big 4: The top accounting firms today are Ernest & Young, PwC, KPMG, and Deloitte. In all, with $110 billion in revenue, 700,000 employees, and offices all over the world, these companies audit and consult the Global 500 companies.


sale of parts to customers outside the U.S. PricewaterhouseCoopers (PwC), Caterpillars both auditing and consulting accounting firm, was paid $55 million to consult Caterpillar on different options to reconstruct their business operations. The final decision that is under investigation by the Subcommittee questions the restructuring of the sales (of parts to customers outside the U.S.) through a Swiss subsidiary. This change deferred all tax payment on the sale of parts to foreign buyers and has brought in over $8 billion in revenue since. The majority in the Subcommittee sees the Swiss subsidiary as a tax haven, which is illegal under U.S. tax law. Opinions vary about accusing Caterpillar with tax evasion and if these tactics are beneficial. The Investigation The Subcommittee is made up of the majority leader, Senator for Michigan Mr. Carl Levin and the minority leader, senator of Arizona Mr. John McCain. Levin is set to elicit U.S. giants like Caterpillar, Apple, HP, Microsoft, and now Pfizer with shoring profits overseas to avoid paying corporate income tax. On the other hand, McCain states their practices as ‘egregious’ and legal. The national Association of Manufacturer’s (NAM) vice-president, who’s current Chairmen is Caterpillar’s CEO, states we are focused on the wrong thing. Accusations against Caterpillar are a palliative resolution. The ‘antiquated tax code’ as Ms. Coleman states, is out of sync with the rest of the world.

Next Steps Under careful research and analysis, Caterpillar has four strategies to continue:

1. Informal Alliance: Without a direct meeting under Caterpillar’s operations, an informal alliance with NAM would allow them to call these other companies and deal with the issues presented to them collectively. This would be a front for the company.

2. Directly Responsible Individual (DRI): Coined by Apple Inc.’s Steve Jobs, this phrase would put someone in direct responsibility for each part of the business structure. In this case, most likely the CFO, Bradley Halverson would be the DRI.

3. Optics: How the public, the government, and the world view the company. Potentially arguing the benefits of a lower tax rate and giving sufficient reasoning could give the


optics of Caterpillar a better view rather than a company skimping on its tax requirements.

4. K-Street: Lobbying for certain actions, especially with the size of Cat, could be a meaningful initiative for the company. Certain objectives would be to: (1) Get Levin out of office, (2) get a reduction in the tax rates for corporate taxable income, and (3) to reinforce the current tax law.

These initiatives would help clear up Caterpillar’s name from any unjust accusations. In all, the fight against these companies like Caterpillar, HP, Microsoft, Apple, and Pfizer all are a palliative resolution. Tougher questions need to be asked that deal with the underlining cause of not a $2.4 billion dollar tax issue from Caterpillar but a $2.1 trillion dollar issue with U.S. companies.


[8]

A Monumental Expansion: A Panama Canal Case Study

Long before the Panama Canal, distance and travel time from the east coast of North America to Asia would be 16,000 miles and almost two months of travel time. As President Roosevelt took the swing to establishing the Panama Canal, international trade was immensely changed. Roughly 5,000 miles from the journey going around Cape Horn under South America have been cut.

Panama History Almost 100 years later, the Panama Canal is seeking a further expansion to be able to haul in neo-Panamax ships that can carry just about 13,000 TEU containers. Comparing, the current maximum ship size the canal could take carriers a max load of 5,000 TEU containers. Furthermore, a growing demand in the transpacific sea route is Liquefied Natural Gas (LNG). With the expansion of the Panama Canal, the Department of Transportation in the U.S. projects that 86 percent of the current LNG fleet will be able to use the canal compared to a current 16 percent.

Under Analysis Due to unforeseen circumstances, our case study starts at the cost of the expansion that is roughly $11 billion. To note, ports all along the east coast of America have invested billions of dollars into their own expansion projects. East coast container ports dredging in Boston, Miami, and Savannah has begun and is estimated to finish within the next three years. The projected inaugural of the expanded canal has been delayed numerous times due to increases in cost of construction with two European firms building the locks for the new canals. Many Fortune 500 companies will profit from this expansion. Including, Caterpillar with the use of its heavy machinery to build the canal, will be able to yield a profit from this expansion. Also, LNG companies like Phillips Conoco, BP, ExxonMobil, JV Hunt, and


more will be able to take their East coast operations and ship them through the transpacific sea routes to Asia. Indeed, IBM will be able to yield a profit from the Panama Canal’s use of computer equipment to open and close the locks, help with logistics, and more. However, these are a bigger underlining issue with the canal’s expansion project. Recall that global GDP is at $60 trillion, $9 trillion dollars in products move across borders annually, and $1 trillion in services move across borders annually. In 2012, the Panama Canal recorded $2 billion in revenue from toll fees. Granted, global trade means global commerce with all possible routes of transportation. Yet, this seems to be quite an irrelevant expansion. While global GDP toppling over $60 trillion and the Panama Canal is deriving only $2 billion in revenue, their seems to be a lot more alternatives than the canal.

Other Factors Worth Considering Inclusively, there is one more important factor worth considering. A Chinese billionaire has set way to launch an almost $50 billion project to build a canal through Nicaragua. This 100 plus mile canal would be in direct competition with the Panamanian government. Lastly, a Black Swan hit just recently. As Russia annexed Crimea, gas demand in Europe is venerable from their suppliers in Russia as the EU stands against current Russian actions in Ukraine. Thus, a demand for LNG in Europe may be met with supply in North America. In all, the Panama Canal monumental expansion might just be left as a monument to an era of trade and sea route shipping through the transpacific route that quickly is dying away.


[9]

$ / ¥

Freedom in any economy is influenced by societies use of a currency. Today, roughly 130 different currencies make up the global monetary systems that allow people to trade in the global marketplace. Transactions are dependent on a freedom to buy and sell. Commerce is only possible because of the currencies used today. Global transactions are done today with any one of the 130 currencies. Many factors determine the value of the currency. The pieces of paper itself or the numerical valuation have little to do with the actual valuation of the currency.

Top Players Today, the top five players in the foreign exchange and currency markets are, in no particular order, the dollar, the Yuan, the euro, the pound, and the yen. Each of these currencies is backed by an economy that includes factories, businesses, and infrastructure. The valuation of the currency is used to buy and sell products and services and allows the local and global marketplace to expand. Being that, global commerce is possible by converting currencies done in the foreign exchange markets. As the Dollar is being traded for the Peso to buy new Plasma’s to fill Best Buy stores all around the United States, a fluctuating foreign exchange rate determined the actual price paid. Between a week span, the exchange rates are changing hundreds of thousands of times. Previously stated, this is due to factors like the economy backing the currency and their state of affairs. This is also due to the supply and demand for the currency, reflective of the economic state, in the foreign exchange markets. As over $5 trillion dollars in foreign exchange trading happens everyday, no wonder the valuations are constantly changing.

Exchange Implications There are three topics of discussion in our globalized commerce that will be addressed about currency valuation and their impact on globalization. Firstly, earnings abroad increases if a domestic currency is weak. Take for instance, a German company with revenues of ¥5 billion in Asian markets last year. Given the corresponding exchange rate, domestic revenue from Asia are recorded at €10 billion. The next year, revenue align to be roughly the same in Asian markets at ¥5 billion. Given the floating exchange rates of the Yen and Euro, the Yen has strengthened (or the Euro has weakened). Now, those ¥5 billion in revenues are recorded at €15 billion. Actual revenues in


Asian markets have not changed. Given all other things equal, the impact of having a weakened domestic currency means stronger earnings internationally. Secondly, a strong currency domestically, decreases (hurts) exports. A very likely scenario for many companies that use the top 5 currencies, a strong currency makes it harder for countries with weak currency to buy their goods. Namely, buying a product from either the United States, the United Kingdom, or Japan with Hryvnia (₴), the Ukrainian currency, is much more expensive. In the same way, a weak domestic currency increases exports, our final case. Thirdly, a strong currency at home makes it cheaper to buy foreign assets. For example, purchasing products from a nation with a weak currency means cheaper, less expensive, and ultimately more bang for your buck in commerce. Today, the Euro and Pound valuation are much higher than the dollar. Their strong currencies allow the purchase of good from the United States much more efficiently. A property in the United States, seen expensive buy the Dollar standards, is cheaper for a foreigner with a stronger currency. Conversely, a weaker currency at home makes it more expensive to purchase foreign assets. Second by second, from financial centers around the globe, the foreign exchange markets are changing. It is a growing and effervescent market that is expanding rapidly. Globalization is heavily influenced by the way foreign exchange markets progress and correspondingly, foreign exchange markets are heavily influenced by the way globalization develops.


[10] $1,000,000

“On the average, a graduate with a bachelor degree will earn $1,000,000 more than someone who does not.” Over the lifespan of an average person, more likely than not, an individual will spend 40 years of their life in the workforce. In today’s internationally competitive job environment, opportunity is more widely available for an individual to reach their full potential. With that said, this environment creates a more competitive. A bachelor’s degree does set up an individual for a better likelihood of success but it is no guarantee. The key word is average. As the globalized world intensified, competition permeates every corner of the workforce and there are key factors that will elate an individual even further. Working for a Fortune 500 f irm Fortune Magazines ranking of the top 500 companies by revenue is useful in more ways than one. Working for a Fortune 500 company earns about 25% higher salary than non-Fortune 500 companies. Other benefits like full coverage, health insurance, educational reimbursement, and retirement benefits also coincide with working for a Fortune 500 company. Specifically, educational reimbursement has the potential to increase salary with even higher education. High level of math ski l ls It is so easy to outsource lots of our brain functionality to our phones. When in fact, there is a major necessity for math through the totality of our working life. Understanding the relationships between numbers, percentages, and being able to work with large numbers is critical to the development and success of an individual. A solid base in fundamental algebra can go a long way. Major With more and more degrees and fields of study, their have a number of ‘timeless’ degrees like Science, Technology, Engineering, Math and Business (STEM-B). These are key and fundamental to starting a career headed toward the success one pursues. Hours of Study Malcolm Gladwell’s magical number of 10,000 hours is critical the ability and aptitude one has in the highly competitive business world. The underlining truth of this concept is that one must


pay the price, that is, in effort, to be able to reach this goal. With any job, it will be time on the job, research, studying, learning, asking, and more. The hours matter. GPA GPA matters. It is highly critical in two key times of life. Firstly, interviewing for a job out of college and secondly it is important when one sends in an application for a graduate program. GPA has the power to predict an individual’s situation 40 years from today. Speaking Abil ity This may seem obvious or not so obvious depending on individual’s goals. More importantly, a major factor to being successful in the corporate world is being able to ask questions, answer persuasively, and communicate effectively with colleagues, clients, and partners. Writ ing Abil ity This may be one of the most difficult to change overtime, yet critical again to the success of the initial quote. In today’s world, with wide availability to the best grammar tools and an expansive source of writing examples, it is imperative that an individuals writing ability be superb. This could be a major deal breaker for highly skilled individuals who lack a proper writing ability. University Paying the price to get into the right school has more benefits than a well-known name but seniority in job options. Many fortune 500 companies have connections with elite universities for graduation student intern programs. The university matters.

Personality With an earnest desire to overcome all distractions, roadblocks, and walls, any individual is able to push through the competition and rise above. Seeking after ones goals with ambition and throwing away all distraction a key factor. Your personality matters. Throughout this discussion, a meter probably was flying in your mind about where you stand on each one of these circumstances. Considering the increased competition and dynamic shift of the world market, developing your skills is critical to earning that potential $1,000,000 more because of your degree. Besides, the $1,000,000 is not the limit at all but the average.


[11]

Fortune 500

From the beginning of the Fortune 500 list, companies have been expanding, producing more, and leveling new territory. Today, all Fortune 500 companies operate on a global level. These 500 companies represent the epitome of American business and more so business in general. Their practices and ideologies and cultures pave the way for future corporations. Here are a couple reasons why Fortune 500 careers are worth considering. Salary Stated previously, salary at Fortune 500 companies is typically 25 percent higher than at non-Fortune 500 companies. Considering retirement benefits, educational reimbursement, and health benefits, Fortune 500 companies offer a lot more in terms of compensation throughout a career. Foreign Posting Active in over 100 plus nations, Fortune 500 companies operate worldwide and have the power and ability to send their people throughout the world. This offers great benefits with potentially higher salary. Over time, this seems to be growing into a necessity for an individual career path. Putting in a stint abroad may also help you in your corporate career as you develop and gain a position by meritocracy, which we will discuss below. Reputation At a family gathering or a networking event, Fortune 500 companies carry a pride in their name. As one might put it, it is something to brag about and put on your resume load and clear. Stabil ity In a not so stable economy, any form of stability is helpful. Fortune 500 companies offer better security and protection and advancement than non-Fortune 500 companies.

Meritocracy in Action: Current non-native CEO’s of Fortune 500 companies include Muhtar Kent (Coca-Cola) from Turkey, Indra Nooyi (Pepsi) from India, and Hubert Joly (Best Buy) from France all have earned their position at the top.


Spectrum of Opportunity No matter what your specialty is, in any Fortune 500 company there is always a need. A career in a Fortune 500 company allows you to gain access to untapped markets and also chase your dreams with unlimited resources behind you. Meritocracy Definition: non-majority male or female or expatriate. Ruled by merit, meritocracy higher the most capable, understanding, and best optional candidate. This is a major shift defying the odds from the majority white male CEO’s found in Fortune 500 companies just a quarter century ago. Today, Fortune 500 Company’s revenues amount too over $12 trillion. A career with one of these companies may lead to a future board chair as CEO, CFO, COO, or other high-paid, influential jobs. At large, Fortune 500 careers pave a way for global interaction in the worldwide market.


[12]

Convergence With all the elements of globalization in theory and practically, what we find today is the educational system being internationally gradually becoming similar. Before long, an MBA program at the London Business School will be identical to an MBA program at Wharton School of Business in Pennsylvania. With an emphasis on similar management style, many factors contribute to this convergence and shift to a unified system. Consumer Habits It is true that upper and middle class income households have more in common with each other worldwide than they do with the poor in their own nation. Take for example a hotel. It is better suited today to facilitate the needs of guests from China, India, UAE, France, South America, and Canada than 40 years ago. In sum, global service quality is converging and thus management style is similar in demand. Expatriates These people head companies from different cultures nowadays. This is only possible because management style is merging into a similar set of qualities. English English is the Lingua Franca of business. With many western influences, English is becoming the language of business in Global 500 companies more and more rapidly. MBA The MBA program at California State University, Long Beach will be the same as Harvard and Yale. Training and educating the future workforce to be able to handle the international world of present day business. [An international business degree in 2025 will be no more than a business degree. Why? Business is on the verge of going international and it would be foolish to not teach this in every institution as a core set of classes.]


Reading The WSJ, Fortune Magazine, and the Harvard Business Review are of choice value in reading material. Soon, throughout the world, the top choice reads will be the same sources and thus management style will be influenced accordingly. IFRS The international style of accounting is used by countless nations. As the standards internationally move towards more similarities, it will be taught to all business students throughout the world. Fortune 500 Fortune 500 companies intensify the speed of convergence. That is, they operate globally and transfer their corporate culture to every multinational office. They also bring English with them wherever they go. Due to many other factors, like accounting practices, marketing methods, compensation plans, and more, Fortune 500 companies reinforce this future convergence.


[Appendix A] Biography

David Iskander is a speaker, a writer, and an entrepreneur with a focus on networking and developing people. As a graduate with a degree in international business, he is currently pursuing a full-time career in the global corporate world. He lives in Long Beach, CA.


[Appendix B] Tracked Hours

In regard to Malcolm Gladwell’s special 10,000-hour goal, tracked hours was a practice to evaluate how much time was devoted to a particular task. This practice, simple and effective, is completely worthwhile. The main takeaway from tracking my hours for one course is about blocking out distraction. So much of any persons day is filled with nonsense and time wasted on trivial tasks. Having this guide, throughout the semester, truly allows you to see your progress and performance. My time was mainly devoted to reading the WSJ, case studies, and the writing portfolio. Tracked Hours is a plan to make a goal more than wish. Total Hours: 153 Weekly Average: 10 Least Hours in One Week: 0 (Spring Break) Most Hours in one Week: 22 (Finals Week)

1/26 2/2 2/9 2/16 2/23 3/2 3/9 3/16 3/23 3/30 4/6 4/13 4/20 4/27 5/4 5/11 Week avg. 5 6 6 7 8 9 10 9 9 9 8 9 9 8 9 10 Σ 5 12 19 27 42 54 69 74 84 93 93 104 111 118 131 153 Hrs. 5 7 7 8 15 12 15 5 10 9 0 11 7 7 13 22

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[Appendix C] Pizza Team

Members: Gustavo Huerta Carlos Montes Victoria Melhuish Pizza teams throughout the semester varied with different classmates outside of the core pizza team made up of Carlos Montes and Gustavo Huerta. Carlos aptitude on subject matter was extensive. His input and insight on topics was insightful, useful and relevant. Gustavo’s ability to think outside the box was remarkable. A keen eye on business knowledge and provided valuable data. Our meetings consisted of going over class notes, relevant information, and comparing findings. Additionally, Victoria was attentive and fully versed in class topics. Her keen speaking ability and sound train-of-thought was significant. Our exchange was through email of information, data, and comparing class notes to assure full coverage of material.

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