This company has moved beyond selling physical products and lifestyles into the business of selling an identity.
I am youthful and vibrant, I am passionate about the great outdoors and I will fight to preserve the environment which I so much love.
Nowhere within this 100 page magazine was there ever a mention that Patagonia sells outdoor gears but if you identify with the persona just described above then Patagonia is your go to brand.
The company has positioned its brand at the self actualization level of the Maslow’s hierarchy of needs.
FuYao is a Chinese manufacturing company that products glass for automobiles companies:
The company setup a factory in Dayton Ohio in 2013 to take advantage of the abundant supply of cheap skilled labor in the region resultant of the 2008 recession.
- globalization continues to apply downward pressure of wage growth around the world for commoditized labor
- automation continues to eliminate entire categories of jobs around the world
In depth analysis of FuYao Glass America
The opening of a plant in the new country can be seen as a acquisition of sorts. Acquisition activities is considered a merge of the following components:
In this case, it could be seen as a merging of FuYao’s culture and process with Dayton Ohio’s asset which is cheap skilled labor.
Below are the key conflicts with the merger
- highly structured and propagandized environment (Chinese) versus loosely structured and casual environment (USA)
- processes built around social norms in a weak union environment (China) versus social norms from a strong union environment (USA)
- productivity and throughput focused paradigm (Chinese) versus safety and family focused paradigm (USA)
- workers paid USD29/hr when working for GM before it shuttered are now paid USD17/hr under FuYao
- governor and grassroots were encouraging unionization to encourage more say American say in the running of the plan
- removal of locally hired senior management (USA) with Chinese senior management (USA) for effective implanting of culture within company
- battling against worker unionization
Leaders impact is more on shaping the attitudes more so than setting legislations
Income inequality caused by globalization and technology has eliminated entire categories of jobs. Wealthy people with excess money to invest due to this aggregation of wealth at the top seeks to maximize their wealth by investing in more and more kinds of financial instruments to return generates. This in turn creates bubbles.
Cost of health care and college education continues to rise as corporate America continues to optimize its monetization engine.
Online media channel consolidation and structural deepening of algorithmic social media newsfeed (Facebook and Twitter) continues to drive polarization of views. The media is primarily geared towards eliciting a response so as to drive conversion rate instead of helping audience develop well rounded perspectives on social issues through holistic presentation of facts.