Soft Power Can Put A Smile On Your Face
March 17th, 2009
Submitted by: Andrea Muntzel
You can imagine my surprise when I turned on the TV Tuesday morning only to see Good Morning America doing a segment on Mumbai. The show is doing a new reporting stint on the “biggest” things in the world. Why were they in Mumbai? It is because the city is the most populous in the world, with the potential to dwarf the total population of the entire Australian continent in just a few years. Although the initial draw of the city was its colossal population, the segment didn’t dwell on that. Instead, they attempted to show a snapshot of the many faces of Mumbai. Those who chose to read the Khanna book Billions of Entrepreneurs will surely remember the portion dedicated to India’s “soft power.” Khanna quotes Joseph Nye, a member of the Clinton administration, when describing soft power as “the ability to get what you want through attraction rather than coercion or payments. It arises from the attractiveness of a country’s culture, political ideals, and policies.” Contrast this with China’s hard power which is gauged by how well the country can “coerce and get its way through military power and economic weight.”
Since we are in business school, it would make sense that we often fall into focusing on that “economic weight” portion of hard power. It seems clear though, that India lacks the hard power of China but is still finding success economically. Something must be said for the magnetism that emanates from India’s soft power. I’m not sure how long GMA keeps its videos up, but I hope you get the chance to see them. It’s a series of five short video segments on things as diverse as the slums of Dharavi to Bollywood to our favorite game, cricket.
Just to keep in mind when you watch, notice how many times the words ‘spirit’ and ‘determination’ are mentioned. Observe the ‘electrifying energy’ that surrounds Mumbai and ‘binds the spirit of the people.’ Finally, how does soft power ultimately affect business in India? How does it affect the people drawn to doing business in these countries? According to Khanna, China lost a lot of its soft power during the Cultural Revolution. We all know there’s something to be said for efficiency, but how important of a factor is culture in business?
From the videos, we can see that Mumbai’s chaotic, bustling, and energy-rich culture has given birth to at least one interesting business prospect: Tiffinwallas. Essentially delivery men, these individuals pick up business people’s homemade lunches at their house and then deliver them to their work, making so few mistakes and resulting in such incredible efficiency that Mumbai’s tiffinwallas have a 6-sigma rating! We’ll have to talk to Professor Olsen about that one next quarter…
In my opinion, soft power is inextricably related to business power. Regardless, though, even during dead week, these videos can put a smile on your face.
Entry Filed under: Pre-Departure, China, India, Mumbai, Pre-Departure
10 Comments Add your own
1. Catherine Kristensen | February 10th, 2010 at 4:10 pm
Dr. Singh’s presentations are always full of statistics about India and so are the blogs and books we read in preparation for our trip. No matter how many stats I hear, I am always shocked by the staggering figures relating to India.
Some of my favorites from this video include:
- Mumbai has 1M new residents EVERY year
(a little quick math: that is almost 3k/day!)
- Bollywood releases 1200 movies year - which is double Hollywood’s releases!
(that is over 20 movies a week!)
- Victoria Train Station (scene of the dance scene finale in “Slumdog Millionaire”) has over 6M passengers/day!
I am glad to see that this video link is still live on abc.com almost one year later. GMA did a great job creating a mosaic of Mumbai in those 3 minutes - wow, I am getting excited for our trip! They refer to Mumbai as a city that is “alive and kickin’” - I can’t wait! The maps and visuals of this video really do a great job of summing up the staggering statistical figures relating to this city. The time elapsed videos also help to portray the bustle that awaits us in India’s largest city.
2. JOhn Barry | March 4th, 2010 at 12:46 pm
While most of us were not alive during the time, it’s funny to think that America was once better known for its soft power than its hard power. Back in those days, our belief system in freedom and human equality is what garnered the world’s attention, not our overabundance of investments in military expenditures and our Gross Domestic Product. It’s unfortunate that due to some poor and misguided leadership, America has lost much of the world’s respect over the years because of its reliance on solving problems not through diplomacy but rather through brute force. Just because you’re the biggest kid in the yard does not mean that you have to be a bully to get your way. As a matter of fact, if you can convince people that your way will benefit them the most, you won’t have to make constant expenditures of energy everytime you seek to get something done. Hopefully your well implemented display of soft power will pay dividends in the form of people’s hearts and loyalty, making it unnecessary to have to constantly re-assert oneself and display one’s hard power. If we MBA’s can keep this in mind as we progress in our future careers, perhaps we can have more productive business relations with customers, suppliers, business partners, and even competitors.
3. Tim Lynds | March 5th, 2010 at 11:22 am
I agree with Andrea that business power is essentially soft power. Companies cannot force a consumer to buy their products by putting a gun to his or her head, although I am sure some companies would if they could. Companies have to attract and retain customers using soft power in order to become successful. Just as the basis for Mumbai’s soft power is the energy and spirit of its people, companies get their soft power from brand image, company culture, product quality, etc. All of these factors combine to attract consumers to the company’s products and helps them make the decision to buy.
I know there is some coercion and other hard power type actions going on behind the scenes in business, but no business would be successful without any customers. Businesses need soft power first before any hard power actions can be taken.
4. Jay Ponto | March 6th, 2010 at 11:27 am
I agree that business power (as we know it) is soft power. Companies will do whatever they can to get you to buy their product, but traditional business power as we know it in the United States is soft, and done through advertising, special offers, deals, etc.
The video does emphasize everything being BIG. Whether it’s the number of people flocking to Mumbai, the city’s population, the train station, the number Bollywood movies produced, the demographics of the population, or the separation between the rich and poor, everything is big in Mumbai! Just like how Americans describe New York City as the city that never sleeps, it seems that Mumbai is similarly being characterized as being a very vivacious metropolis. Mumbai seems like an exciting place with lots of opportunity, and I am very eager to visit it this summer!
5. Jordan Wente | March 8th, 2010 at 5:02 pm
I think culture plays a big role in business. If the culture of a society promotes hard work that translates directly to how people in that society will conduct themselves on a job. Energy, determination, and spirit are all desirable characteristics that can have positive results on business efficiency. If the workers are happy and determined that leads to a more productive work environment. This soft power seems to affect business in India because people are attracted to this energy. It could be compared to picking a mate. Most likely you would be attracted to a person that is energetic, determined and full of spirit rather than someone who possesses characteristics of hard power. Economic weight is extremely important but the mixture of energy and economic weight is even more appealing in my opinion. Look at business in the US that focus on the wellbeing of their employees in an attempt to create an environment full of energy with the goal of ultimately be more productive. People are drawn to doing business in India for the same reason that the videos put a smile on your face. It’s that smile that appeals to people and the knowledge of the determination that accompanies it. I would have to say if you were to choose between two countries, with similar capabilities and qualifications, you would ultimately choose the one that inspires you. That’s the country I would choose anyways!
6. Danielle Steussy | March 9th, 2010 at 10:01 am
Something that we learned about in Organizational Behavior is the importance of company culture. The employees truly have an impact on how the business is formed, maintained and perceived, and each day we learn about more companies that incorporate a soft power approach into their company culture. As a result, employees are more productive and actually exhibit more creativity. Such companies like Google give their employees more freedom and flexibility while still giving them ample incentives to get work done. Even local businesses like San Luis Obispo’s MindBody has a creative environment and are thriving. Many people hear about these places and how employees are treated and strive to work for them. This productive and creative culture is not ruled by hard power, but rather soft power. We’re seeing incredibly innovative companies emerge and thrive with high profit margins to prove their success.
7. Michael Minasian | March 10th, 2010 at 11:35 am
While this does seem like an interesting way of addressing things, I think that there is something to be said about the effectiveness of China. While I completely disagree with the way that they get things done on a moral level it is admirable the amount of prosperity that China has achieved under such tyrannical rule. It is heartening to see that people doing things based on people’s wants and needs as opposed to coercion can still be successful. It might be a slower ascent, but it is certainly on the way up.
8. Frederick Peemoeller | March 12th, 2010 at 7:39 pm
Both India and China are doing well with either of their mentalities. It seems that their power, whether soft or hard, works well with what the country is known for producing. China is the manufacturing hub of the world. We rely on almost everything to be manufactured and shipped from China to the states. In that regards, we aren’t looking for the most innovative products, but rather the most affordable ones. The hard power approach works well because it strives for production rather than creativity. The opposite can be said for India. The country is known for its services in technology and engineering, which require a more creative mind. The soft power helps mold these innovative minds, and the country prospers because of it.
9. Chase Janvrin | March 14th, 2010 at 3:20 pm
I disagree with some of the earlier posts regarding business power as soft power. I think in this day and age the connection between big business and politics is undeniable. Consider our wars in the middle east right now. How much of those wars were “fueled” by the desires of the very companies that our President and Vice President used to head, to gain access to those oil reserves? While that may be an extreme example, I’d also point to an earlier blog touching on the fact that because the primary source of drinking water in the big cities of India is bottled water, there is little to no support to improve public water facilities. While ensuring that the economic infrastructure can support business is an important facet of attracting business, money still talks. And you aren’t talking large, community changing money without talking hard politics.
10. Yuxiang Gao | March 19th, 2010 at 5:02 pm
India’s infl uence is soft rather than hard.
Indian movies have become part of global culture.
India’s private sector has leveraged its success in its knowledge economy to gain global economic relevance. India’s capital markets are also strong and act as a market-based mechanism to incentivize competion within the country.
A shared experience of Buddhism gives China and India a
common cultural ground. Bilateral trade and commerce are growing.it seems that their power, whether soft or hard, works well
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