We have returned to the USA!

Six cities, over 16 firms, several universities, and numerous cultural excursions in 18 days.

Below you can read about Days 1-17 of our journey. Overall the firm visits this year were excellent.

I view the trip and course as a success, but I define “success” differently than perhaps most would.

First, let me note that this was an excellent group. Collectively, the “got it”. I appreciated their effort, maturity and professionalism on the trip, including their willingness to put self aside for the greater interests of the group.  They collectively worked hard, bucked up when travel bumps appeared, they rolled up their sleeves and were proactive in their learning and the questions they asked. This group was much more active than past groups in practicing some of the simple things of business like the exchange of business cards, networking, and starting to cultivate relationships with people they met abroad. This was great to witness, as it was one of the learning goals for the course.  Collectively, they were outstanding ambassadors for our country, college and university.  I am very proud of them and their efforts.  In many instances, because of the professional way they conducted themselves, they changed the perceptions of Chinese and Indians about Americans in a positive, productive way.  I felt honored to witness such an exchange and it made me feel optimistic about the future.

Some students found they really liked China and/or India. Some discovered they did not. Some students came to see China mainly as the factory of the world; others concluded it’s a market and/or both. I think many came to realize that with respect to India, nice roads and trains do not necessarily make a country — it is the people that make a country. As an example, during their off-the-clock free time, a number of the students went to a nice night club and witnessed Hindi, Punjabi and English music and songs being seamlessly played and connected, as the crowd danced with delight. For me, this is a true symbol and metaphor of India and its strength — the Indians adapt and are self sufficient, lack of infrastructure and all, and they make it happen and succeed, and all while not making a big deal out of their success. We just don’t see this happening as much, in my view, in the West.

Some of the innovators in our student group spotted tremendous business opportunities amidst the chaos of China and India; while some of the traditionalists in the group seemed flustered, stressed and/or intimidated by the chaos one finds in China and India. This trip was a great testing ground for for both subsets.

Sometimes students found that on a trip like this the plane or bus is on time and comfortable; other times not. Some tolerated the food and some even liked it (particularly in India!). Some discovered they could thrive in the difficult physical circumstances that China and India and international business presents; others found that mountain hard to climb.

There is no doubt that throughout this trip we saw ample anecdotal evidence to support Fareed Zakaria’s hypothesis and argument in his excellent, thoughtful, and recently published best selling book, The Post American World; to wit, that it’s not that the USA is in decline so everybody needs to sit back down and stop stressing out about that myth; it’s just that other countries like China and India are on their way up and we need to learn how to deal with it and partner with them.

The health of most held up, but some did become physically ill due to a cold, fever or the food.  I was very thankful nobody was quarantined as we entered mainland China.

All seemed to develop a deeper understanding and appreciation of the sacrifices that overseas employees and their families make when a firm sends them to make headway into a new market and the unique business opportunities that can be found for a forward leaning business thinker in a place like China and India in relation to the West.

We caught a break with the weather in China - it was not as hot as usual and the pollution was not nearly as bad as usual in Beijing. In India, it was fairly hot and humid, and it pushed each of us. We were also lucky in that in Bombay (Mumbai) it did not rain that much, even though it was/is monsoon season there.

The students also picked up several best business practices from the Chinese and Indians that they can bring back with them to the West (e.g., in China and India, the guest, client, etc. are king and attention to them matters; in India, they even have a saying relating to this point - “the guest in your house is a god”). They also caught a good glimpse of the type of people they need to hire who they can send and who can thrive in the markets of China and India, particularly if/when they conclude getting on said plane ride is not for them.

Most students appeared to be humbled and impressed by China and India and their people and talent; while some may return home skeptical; and a very small minority might even return home with a mistaken Western ethnocentric belief they are somehow smarter, better looking/prettier, or superior to the average Chinese or Indian national or manager who speaks broken English (and man, oh man, is this latter minority in for a wake up call someday).  All seemed to reach a deeper understanding of why China and India and the US need to work together to solve future geopolitical, business, societal and environmental problems. Should we elect to not partner with these countries and their peoples to solve the challenges of today and tomorrow, we do so at our peril.

Some students saw China and/or India as needing the USA for some time; while others concluded that China and/or India will in time throw down its crutches of needing the US, begin to walk on its own and in time run and be true contenders on the world stage, possibly even surpassing the US in the economic and geopolitical spotlight. Others described what they found in China, a communist country, as being full of pure, raw, unfettered capitalism at its best (and sometimes its worst); while others saw more of a mixture of a system made up of government monopolies that protects certain players and industries. Comparing “communist” China with hyper-democracy India was an outstanding learning experience. Most seemed to develop an appreciation that whether one likes China and/or India or not, an educated MBA and MS in Industrial Technology needs to better understand how they fit into the global value and supply chain.

In other words, everybody who made the effort had the opportunity to test their talents, beliefs, values, biases, egos and professionalism in some way, shape or form, and the trip was a microcosm of the real world that no textbook, case study or professor in a classroom can teach.

Most of the above are also some of the very types of issues, questions and items we had hoped students would grapple and struggle with when we started to plan this trip a year ago, and I do not believe for a minute that one can teach these types of lessons sitting and staying within the confines of comfortable Cal Poly and San Luis Obispo, California or even the United States for that matter.

I also encourage the readers of this blog to check out the reflective post-trip journal entries that I require each student to make, as over the next few weeks they will load that document onto their personal trip blogs you can/will find on the right hand column of this blog. Good managers and leaders take time to reflect on what they have learned, where they have been, and where they are going. Click and read away as their post trip reflections come in. Having said that, I have learned on this trip that the true power of their learning experience will likely not fully hit them for another year, maybe two or three.

These 32 Orfalea College of Business graduate students were provided with an on-the-ground opportunity to see, ask questions, experience and witness first hand some of the pros and cons of: (1) China — the world’s biggest start-up and turnaround; and (2) India — the tiger struggling to break free from its leash and at the same time finding that it is the very leash holding the proverbial tiger back.

We also had the opportunity to develop a deeper understanding of what globalization is all about and some of the challenges that will face the business firms and governments of tomorrow. Each of us was able to confirm and test some of our preconceived notions about business, capitalism, communism, China, hyper-democratic India, and themselves, and debunk others. These students should also now have the ability to understand and analyze, at a sophisticated and nuanced level, the next front page article they read about China and India and business that appears in the Wall Street Journal, Financial Times, New York Times, Business Week, The Economist, et al. and be able to understand why it’s a front page story and be able to separate fact from global legend and urban lore. This ability to do so will set these students apart from the average American and businessperson, and even most of our politicians, who blather on and on about China or India when they know nothing about it, they have never even been there to see these places for themselves, and/or they could not find said places on the map if their lives depended on it.

Of course, how, when and whether this group of future business leaders leverage the knowledge and experience gained through this trip during the next phase of their lives is up to them. At the Cal Poly Orfalea College of Business, I can represent we have done our best in this regard. I am confident they will make the best of it. This is a talented group of young men and women. They give me great hope for the future.

A big, big shout out and thank you to all who helped us on this trip. THANK YOU! Again, our firm visits this year were top notch and incredibly engaging.

As for me, I am bone tired and jet lagged. But a nice thing about this trip for me is that I always feel a deeper love for home — meaning the USA, SLO and my house and family — each time I return.  Traveling abroad for such a long period of time also, as the saying goes, “helps me remember who I sometimes forget to be”, and I am thankful for such a crash review and reminder course.  The next few weeks I plan to get away from work and spend time with my family. I also plan to take a break from China and India and blogging for the next month and I don’t plan to make many (possibly any!) posts during that time.

Until then, thanks again to this wonderful group of 32 students.  They made us proud at Cal Poly.  And they were a lot of fun to travel with.

[You can follow our learning and adventures below.  If you continue to scroll down, you will see subsequent days of the trip reported by the assigned team.  We welcome constructive comments, thoughts, reactions and impressions. - Prof. Carr]

Team Two:

In what we hope will be an auspicious start to our trip, everyone showed up to LAX on time. “On time,” of course, meaning four hours early. The airport was crowded, the check-in baggage process would have made our Operations professor cringe, and there was no sitting room. But the mood was upbeat – in a few hours we’d be flying over the Pacific, to the other side of the world!

Our airline was top-notch. The food was tasty, the seats came with personalized TVs – not to mention dozens of channels – and the service was exceptional (albeit behind masks, as the Chinese are taking swine flu seriously). The airline’s quality was much appreciated, as our flight was fifteen long hours. Most everyone conked out for at least a few of those, and got in a movie or two.

Landing over Hong Kong made for an awesome sight: soaring apartment towers, one after the other, nestled between lush green mountains, covered by – surprise – smog. We had a relaxing break at the airport, drinking overpriced coffee and sampling some authentic Chinese food. Eric White ate a fish and seaweed snack which received dubious glares.

After the six-hour layover, the group boarded a relatively short (but very hot) flight to Bangkok. Whatever discomfort was felt was overwhelmed by the anxious feeling that we were already in Asia and only a few hours away from our destination: India! Even our in-flight menu options seemed to scream India. The menu went from offering an egg sausage muffin, to fish, to an exquisite rice curry.

Touchdown !!! The airplane retracted its flaps and the plane slowed into a controlled halt. Finally we had arrived to our first of many destinations. But the energetic glee coming out of the corner of everyone’s eyes had vanished. It had been a long journey. And now we were being held up by shuttle buses that hadn’t shown up to drive us to the airport.

Another delay, the buses arrived, and we raced past the immigration booth towards the conveyor that held our valuables. For a brief moment it seemed we were about to join the ‘lost luggage’ club of past MBAs. But after ten intense minutes of searching, everyone found their bags – technology managed to get all of bags to our final destination intact.

Welcome to India! Outside of the airport we waited for our bus to arrive and pick us up. And strange was the sensation that everyone felt as we waited outside on the hot and humid climate. Thus it was a relief to finally board the nice air conditioned bus that drove us past the many amazing construction sites that seem to define Delhi and the five lanes of traffic that formed on the three lane highway. After passing 500 rickshaws and a stray cow or two we arrived to our destination for the night and were welcomed with two generous gifts from our Indian sponsor, giving a much needed smile to some weary travelers who then sunk into their bed and recharged their batteries for the journey ahead.

Team One:

Dipping Our Toes in the Water… of India

6:30 am
We awoke to the sounds of New York – traffic, yelling, dogs barking, and Bollywood MTV music videos. Alright, not New York in the geographic sense, approximately halfway around the world in New Delhi, India. Being so far from home causes one to construct a relationship between the things we can and can’t relate to.

Our hotel serves as one of the few accommodations available in India. It offers Spartan rooms and a welcome place to rest our weary heads. The essentials differ from American standards, some in unusual ways. We manage without little bottles of shampoo, a big TV, furniture in excess of a couple beds, and a shower that doesn’t flood the bathroom. The showers here have no base just a drain and a floor that doesn’t slope quite enough. For most, the services the hotel offers constitute an upgrade from student life. Seriously. They wash our towels! They’ll do our laundry for a nominal fee! We also eat a hearty breakfast of eggs (hard-boiled or in omelet form), spicy vegetable cutlets, French fries, cornflakes (accompanied by warm milk), toast, and orange drink, coffee, or tea. Oh, the staff didn’t disappoint either selecting some wonderful morning entertainment: more Bollywood MTV.

After breakfast we quickly transited to our air-conditioned bus. A note: the temperature in New Delhi isn’t unbearable but any air-conditioning aides in adapting from our spoiled San Luis Obispo temperature. Traveling the frantic streets, everyone did their best to observe the driving habits and vehicles in preparation to our visit with India’s top auto manufacturer. However, we found ourselves distracted by Brahma cows pulling carts, an army of monkeys overtaking the local park, and a frightening number of near accidents inches from our cumbersome bus.

What information gather we can summarize in two comparisons to our domestic automobile environment: 1) Nearly every brand we know (along with a few we don’t recognize) produces vehicles for Indian roads and 2) Small, nimble cars offer significant advantages over our common SUVs and minivans. We recognized many Toyotas, Chevys, mini-minivans from the newcomer Tata, and a disproportionate number of Maruti-Suzukis. Seeing more Marutis boded well for us: We would soon step across their doorstep.

Mr. Gopalakrishnana, Senior Manager of Public Relations for Maruti-Sukuki greeted our team outside the company’s largest manufacturing plant. He politely led us inside to a conference room stocked with a fantastic spread of cookies, Pepsi, tea, and coffee. It was a surprise; we had not presumed ourselves lucky enough for such gracious hosts. Mr. Gopal (he asked that we use a more comfortable name to pronounce, another courtesy to us foreigners) presented a brief, well documented, and insightful PowerPoint overview of Maruti-Suzuki. It was a mere appetizer though to a luscious main course: a full guided tour of their manufacturing process from rolled steel to rolling car. Dr. Olsen would have been in LEAN heaven. Maruti utilizes Kaizen bursts, visual management, andon systems, kanban stations, FIFO, and load leveling to build vehicles at a pace that surpasses their competitors. After visiting the facility we can safely say every LEAN student is now a LEAN believer. We marveled at the seamless waltz of machinery, man, and material. Only the dry heat drew us from our focus and reminded: this not the legendary Toyota from Japan but the startling unbridled Marti-Suzuki from India.

Needless to say as stunned as we all were we had innumerable questions. Mr. Gopal and a panel of four Maruti chiefs obliged our intrigue. We feel we must return their generosity with a degree of silence; they provided a great deal of insight into the company’s past and future success. Yet, we can say this culminating discussion cemented our feelings about Maruti-Suzuki as a competitive auto manufacturer flush with drive, genius, and a formidable knowledge of LEAN production. It also boasts a gracious management team hungry for the ideas our freshly educated minds can conceive.

And THEN… we got back on the bus. We stopped at a mall to enjoy some Indian food for 170 rupees=$3.50 for lunch before continuing to Rockland Hospital. No one knew the journey would turn out to be an adventure. Our driver missed a turn and brought our enormous bus to a dead end. Without a turnaround. The thoughts of starvation and desolation filled our minds while the bus driver attempted a forty-point turn. God forbid MBA students would have to walk! Just when we thought the world would end… we got glimpses of gypsies emerging from the trucks that lined the streets. One, two, three, four, five… or more. Could it be salvation? Was a turn around possible to create?? To our great relief, it was and we watched these gypsies push a vehicle full of cement mix out of our way. Raquel Rusing raised her hands up and cheered for the fearless soldiers and one gypsy responded with excitement by “raising the roof.” Oh India.

Rockland Hospital, a private hospital, was an impressive structure and example of the rise in Medical Tourism. Their doctors were specialists and the hospital tapped into niche markets by providing exclusive programs and packages, such as stress management. Their financial and ethical practices gained the company a partnership with the IFC and allowed them to be ranked among the top 5 hospitals of India.

With two company visits down, we headed back to the hotel and had an opportunity to experience more traffic – but it was more exciting since the bus decided to drive down a one-way street because it was faster. Even a policeman couldn’t stop us. We bribed him. Yep. We illegally drove a 40-foot bus into on-coming traffic for the promise of 50 rupees. We have yet to pay our debt. Ohhh yeah.

It had been an exciting day by this point and a celebration was in order. And oh what a celebration it was. We were escorted to a five-star restaurant with an outside patio draped in red canopies, white couches and zebra pillows, bubble gum flavored hookah, Kingfisher brewskies and exotic belly dancers clanking the coins around their hips. I think the majority of the guys enjoyed the cushy pillows the most… riiiiiight. I don’t think Jimmy moved an inch as he waved away or beckoned a server to bring him the wide variety of Indian delicacies – tikka masala, grilled fish, paneer sticks, etc. (To be honest, I cannot be trusted with the names of any of our snacks. I suggest Wikipedia for further information). By the way, Jimmy’s new nickname is now Raja Jim. We ate and drank until late in the evening before heading back to prepare for Day 4.

We fell asleep with full-bellies and mystical dreams of India. Welcome to the other side of the world, Cal Poly.

Team Four:

Today we jumped in our lagoon. After an early morning breakfast we visited a real life ashram. We learned the basic principles of yoga by a reproductive microbiologist from one of the most prestigious universities in India. One of the many analogies that he used involved a lagoon. The lagoon is very much like the rest of the ocean, just as our lives are part of society at large, or so his analogy went. If you jump in and see the lagoon for what it is, you are getting a glimpse of the rest of the ocean too. Through a beginners yoga course we learned how truly flexible an MBA can be. Turns out we’re a pretty stiff crowd. After all of the hustle and bustle described in the previous posts, it felt good to get a stretch in.

After our time in the ashram, we high tailed it over to the Akshardham Temple. This four year old temple was covered in intricate sculptures hand carved out of sandstone. The attention to detail was incredible, as was the sun’s fury. It must have been at least a hundred degrees, but there wasn’t a single complaint from our class of champions.

We ended the night in a posh nightclub to celebtrate Raquel’s birthday. Happy birthday Rocky! The food was fantastic, the beers were long awaited, and the evening was great. This was also the night that the entire class learned about McKinnon’s breakdance and windmill capabilities. Getting home from the clud was an adventure in and of itself. This was the first chance most of us had to ride an auto-rickshaw, and I think it’s safe to say we feel lucky to be here today. It made the roller coasters at the county fair look like a teacup ride. And if that wasn’t enough excitement for everyone, a few somehow ended up ditching the rickshaws for a more luxurious elephant ride down the highway. All in all it was a pretty good day.

Team Seven:

The streets of Delhi were relatively quiet in the morning on the way to the Taj Mahal. As the bus moved swiftly through the cows, rickshaws, pedestrians, and broken down cars of Delhi, most people were sleeping or looking at the sights. As we made our way to the outskirts of the city the roads began to open up and we were able to cruise at a relatively high speed while swerving in and out of slow trucks. The road to the Taj Mahal and Agra goes through mostly farmland and small farming towns that are different from rural country roads in the United States. There are slow moving farm tractors like the U.S., but there are many delivery trucks, bicycles, motorcycles, scooters, and wandering cows which require non-stop honking. Along the side of the road in some areas there were some factories and compounds of notable multinational corporations. One that stood out in particular was the JCB tractor factory and compound along the road; the factory was massive and the storage lot was full of brand new JCB backhoe tractors and cranes. It was obvious that JCB has made a significant investment in India and is planning on taking advantage of the growing market of construction equipment in India.

Upon arriving at the Taj Mahal, we parked the bus a little outside the area and took electric powered taxis to one of the three gates that you can enter through. It’s ironic because electric vehicles are used to limit the pollution neat the Taj, but there is already a large amount of pollution in the air from all the other vehicles. After exiting the vehicles we passed through security and entered the gate. This lead to a long walkway that lead to a nice courtyard. All three gates opened into one side of the courtyard, with the fourth side being occupied by an even more impressive gate that lead to the actually Taj Mahal. The gate featured 20 domes, 10 on each side of the gate to represent the 20 years that was spent in construction. It was upon walking through this gate that the main building first becomes visible, and it is spectacular. Everyone has seen of what the building looks like, but pictures cannot do it justice. No only is it enormous, but it was made from a special kind of marble that is one of the hardest materials on Earth. To make it even more impressive, the marble features intricate writings and designs that were created by inlaying precious and semi-precious stones into the marble.

Our tour guide stopped us outside the monument and explained the history of the famous structure. It was built by an Indian king as a tribute to his wife who had passed away. He had promised to build her a palace during their lives, but she died in her mid-thirties. Although the king had been married twice before her met her, he never married again after her passing. In total the king spent 40 million rupees on the 3 million hours of labor that it took to be constructed. After its completion the king decided that he wanted to build a separate matching black Taj Mahal across the river for himself. His son decided that the cost of such a structure would be detrimental to the country, so he decided to imprison his dad and chop off the arms of the main workers who had constructed the building. This would prevent them from building another one. The king’s only request from his son was that he be imprisoned in his castle that overlooks the Taj Mahal, so he could see it every day.

While there, many of us were expecting to see some foreign tourists in India, however our consensus at the end of the tour was out of thousands of people, there were about a handful of foreign tourists besides ourselves. The tour guide explained that 85% of the Taj Mahal’s visitors are Indians; we thought the summer heat was keeping many out. Additionally, the Mosque on the located to the left of the Taj Mahal would bring many Muslim visitors daily because it is still operating. Additionally, the way the tour guide shared about the Taj Mahal reflected the sentiment many Indians have toward the monument - great pride and awe. Since the monument was ultimately a token of love to an emperor’s wife who passed away it is a great symbol of Indian culture. Many who visit and observe the unbelievably extravagant structure can’t help but be inspired to create and go above and beyond expectations. As a business takeaway - when you go all out, people will flock by the thousands just to observe the hard work, dedication, and overall investment put into a project.

Following our grand tour of the Taj, we went to the local shop that manufactured the granite inlays we had witnessed earlier. Immediately upon entering the shop, one of the salesmen started rattling off the ins and outs of the manufacturing process, as two of the workers sat on the floor building one of the pieces. One of the workers was tasked with shaving tiny pieces off of the precious stones to be inlayed into the granite. The other worker cut shapes into the granite and placed the stones in each of the designated holes. The granite became so sharp from the cutting process that it caused the man’s index finger to slowly be cut into two distinct pieces.

After this demonstration, we all walked into the showroom to haggle with the salesman. The products created by this process were utterly amazing. They ran anywhere from $45,000 tables to $10 jewelry boxes. Unfortunately, this store had a monopoly on such products and was not desperate to make a sale. Therefore, bargaining was nearly impossible.

As we left the granite inlay place, Dr. Singh pointed out that we were going to eat at a hotel, which had the best food of the trip yet. We were ready as many had eaten a light breakfast and the thought of an air-conditioned buffet sounded pretty nice after walking around in the heat all day.

We arrived to a VERY nice hotel and were greeted with an extensive buffet. While the hotel we are staying in is nice, it was nowhere the level of this hotel. Our current hotel could be equated to a basic Best Western, while the one we visited would have been on par with a Four Seasons. Most importantly, it was the first time we had the opportunity to eat fresh veggies! An onion broccoli goat cheese salad, fresh cucumbers and fresh tomatoes were just some of the vegetable choices we had. Like most of our high-end eating experiences, the choices seemed endless. There were roughly 15 main courses to choose from. Most of the staple curry choices were available, and also an excellent potato eggplant dish that had not been offered in our previous meals.

Following these main courses was a nice selection of desserts. Most of the choices were standard American sweets, with the exception of a sort of hot Indian donut. It was similar to a donut hole except soaked in a sort of sweet honey sauce. Jay informed some of us that the best way to eat it was to combine it with the coconut ice cream. Much like hot apple pie ala mode, the combination of hot and cold really capped of what was a superb meal. Fortunately, this was also accompanied by the best cup of coffee we have had so far (for those who are true coffee drinkers Indian coffee has left something to be desired). All in all, it was great to enjoy another fantastic Indian meal!

After lunch the group headed to Agra Fort, which is where the King who built the Taj Mahal lived, was later imprisoned, and eventually died. The outside of the fort was made from red stones that gave it a very unique look. The high outer walls and moat added to the castle feel, although it lacked the high towers that are common with medieval castles. Upon entering the fort main gate, we had to walk up a long sloping road, which lead up to the main fort grounds. At the top of the road was a wide-open courtyard with four separate squares of grass and bushes. Walking paths separated these areas, and a 7 foot tall stone cup was at the center. On the other side of the courtyard was a series of hallways and separate smaller courtyards that demonstrated their architectural skill. Like the Taj Mahal, the rooms and walls featured intricate carvings, although these walls were not made of marble and didn’t have the detailed inlays. After walking through several of these rooms and courtyards, we came upon the side of the fort that faced the Taj Mahal.

The sight down the curving river was breath taking. Off in the distance, to the right of the river, stood the Taj Mahal in all of its glory. Seeing it from this distance demonstrated how big the structure really was. Many people took advantage of the view and took lots of pictures. As you walked long the side of the fort, each different courtyard and room offered a different view and perspective. At the far side of fort was the area where the king was imprisoned by his son. The king chose this area because he wanted to be able to see the Taj Mahal. This area was also the area where the king eventually died. Sadly this section of the fort was closed off from visitors, so we were not able to see it.

At the very center of the fort were the two largest courtyards of the facility. Walking paths crossed both areas that featured lots of vegetation. The first courtyard had a large fountain at was situated at the center. Water was no longer in the fountain, but its design signified the beauty that it must have had when it was filled. Several other areas also had empty fountains and one room even had a waterfall that came out of the wall and flowed down the length of the room before collecting in a small pool. To have seen these features filled and flowing with water would have been spectacular.

The second courtyard was one of the most visually pleasing as it featured a large open room with many arches and pillars. Walking through the arches was beautiful as each new area offered a different perspective of the aches and columns. At the steps of leading up to the column were also a group of ants that were about the size of a fingernail. One ant was even lifting an aluminum soda can pop-top that was twice his size up the vertical service.

After the last courtyard, the group was extremely tired from the long day. A group of us congregated along some benches in the shade and rested. We enjoyed to the peaceful scenery until it was time to head back to the bus and begin the long journey home. It was surprising that even though the day was focused on the Taj Mahal, the fort was also spectacular and will definitely be one of the highlights of the trip.

The trip back from the Taj Mahal to Delhi was relatively long but was entertaining because of the dance party that occurred thanks to some iPods and portable speakers. It was a long ride there and back, but it was well worth it because we all got to see the Taj Mahal and get a look at the rural side of India.

Team Three:

We started the day the best way possible…Sleeping in! It was much needed and we were happy to start our tour today with good rest and in good spirits.

After breakfast we headed to Gurgaon, a city right outside New Delhi where business is booming. Guraon is the 6th largest city in the Indian state of Haryana. It has grown in the last 20 years as a manufacturing, outsourcing and shopping destination due to the demographic shift to younger, more affluent and better educated people. The buildings there were modern and well-maintained. The large crowds of business people moving through the outside streets were young and nicely dressed, helping us blend in a little. The average literacy rate in India is 59.5% and in contrast, Gurgaon’s rate is 77%.

We spent the day in this city visiting two large businesses. The first was Airtel, one of India’s largest cellular providers. Airtel was created with little capital and is native to India. Over the past 14 years the company has grown to 100 million customers, 24% market share and has even expanded to Sri Lanka. The presentation we got was one of the best so far and gave some great insight into the importance of brand value. Airtel has partnered with some of the largest creative ad agencies in the world and the result is an impressive ad campaign which successfully targets several market segments. Again, due to the young population in India, the company has enjoyed impressive growth and success. We were greatful to have had an opportunity to be hosted by them.

We then headed over to American Express. The building and business part it was located in felt more like Los Angeles than India. Once again, we got an expert presentation and a host who was more than willing to answer our many questions. The presentation suited the day perfectly because in contrast to Airtel, American Express is an American company who has globalized and faces unique challenges and opportunities in the Indian market. India’s youth was again a topic of discussion as we discussed how the population’s attitudes toward credit are changing. One relevant message we got was that it is not the other credit card companies or banks who are the true competitors, it’s cash and checks. Another challenge was that of targeting a niche of Indians who make over $20,000 USD annually. A figure which would hardly represent a niche in the US.

Our day ended with a trip to Subway! The company has changed the menu quite a bit to fit Indian tastes. Most notable in this student’s opinion was the chicken tikka sandwich, a delicious spicy chicken which I only wish was available at the US chain. Other than the small menu changes and the fact that our soda pop came in a can, the restaurant was familiar and satisfying.

Thus ends day 4. We are packing up, bidding farewell to New Delhi and looking forward to our next stop … Mumbai.

Submitted by: Andre Ourthiague

India gained its freedom from British rule on August 15, 1947. Less than three years after attaining freedom, India had framed a Constitution and declared itself a Republic on January 26, 1950. The Constitution was shaped to ensure justice, liberty and equality for the citizens of India. The Constitution was made flexible enough to adjust to the new demands of social and economic changes that would arise under the new democratic framework; the 94 amendments to the Indian constitution since its adoption 60 years ago is a testament to this flexibility. The Fundamental Rights of every Indian citizen include the freedom of speech, expression, belief, assembly and association, migration, and choice of occupation or trade. These rights also protect every Indian from discrimination on grounds of race, religion, creed or sex, and are enforceable in courts of law.

The Indian constitution defines the federal government that presides over the 28 states of India. India has a parliamentary republic system of government based largely on the United Kingdom. Parliamentary republics, unlike presidential systems, do not feature an executive head of state with broad executive powers because these powers are typically designated by a prime minister. The government in India is divided as follows:

LEGISLATIVE

The legislative power of the Indian government is held in the two houses of parliament. The following descriptions are taken from the Parliament of India website.

Rajya Sabha (Council of States): The Council of States consists of not more than 250 members, of whom 12 are nominated by the President of India and the rest elected. It is not subject to dissolution, one-third of its members retiring at the end of every second year. The elections to the Council are indirect. The allotted quotas of representatives of each State are elected by the members of the Legislative Assembly of that State, in accordance with the system of proportional representation by means of a single transferable vote. The nominated members are persons with special knowledge or practical experience in literature, science, art and social service. The Rajya Sabha is presided over by the Vice- President of India.

Lok Sabha (House of the People): The House of the People consists of 545 members. Of these, 530 are directly elected from the 25 States and 13 from the seven Union Territories. Two members are nominated by the President to represent the Anglo-Indian community. Unless dissolved sooner, the term of the House is five years from the date appointed for its first meeting. The Lok Sabha elects its own presiding officer, the Speaker.

EXECUTIVE

There are three primary figures that serve in the executive branch: president, vice president, and prime minister. In India, the president serves as head of state and is commander-in-chief of the armed forces, but rarely executes constitutional power on his/her own initiative. The president is elected by an electoral college comprised of members from state legislatures and from members of both houses of parliament. Once elected the president serves a five-year term and can be re-elected. The current Indian president is Pratibha Devisingh Patil.

The vice-president serves as head of the Council of States (similar to the US vice-president). The vice president is elected by the members of parliament.  The current vice president is Mohammad Hamid Ansari.

The final key figure in executive branch is the prime minister.  The prime minister is elected by majority support in the Lok Sabha. It is the prime minister that oversees the day-to-day operation of the federal government. The current Prime Minister of India is Dr. Manmohan Singh. The prime minister is also responsible for selecting a cabinet of ministers that handle policy regarding specific areas of the government. The ministers are equivalent to secretaries (state, treasury, etc) in the United States, and to ministers of China.

The prime minister and the cabinet are both accountable to the Lok Sabha. Individual lapses by a department can result in a “vote of no confidence”, and thus a forced resignation for individual ministers. A serious lapse by the prime minister and his cabinet can result in a “vote of no confidence” against the government. A “vote of no confidence” against the government requires all ministers headed by the prime minister to resign. The closest parallel we have in the United States is presidential impeachment.

JUDICIARY

The Supreme Court in India upholds and interprets the constitution. The Indian Supreme Court serves in the same capacity as the US Supreme Court.  Each state in India has a High Court that defines laws particular to the individual state. However, a uniform civil and criminal laws applies to the entire country of India. State High Courts also do not possess the power to contradict the Indian constitution. The Supreme Court is responsible for resolving disputes between state and federal governments.

The Indian government is very similar to that of the United States. The primary difference is in the power held by the Prime Minister. The roles of Indian president and prime minister are encompassed in the roles of the US president. Aside from this division of roles the systems are strikingly similar. Two legislative houses hold the law making power. An executive branch holds military decision making, vital decision making, and key appointment responsibility, and a judicial branch interprets the constitution.  Despite fighting for independence from British rule, the United Kingdom was the model of democracy that most strongly influenced the structure of the India’s government.

Submitted by: Andrew Welborn

I am excited as we travel to two very different countries to compare the many cultural differences. I thought a quick comparison of transit systems would be in order, as we will have the chance to experience some that outshine American systems and some that are downright scary. The U.S. is rapidly falling behind other countries in regards to a transit system and this has impacted our competitiveness in the manufacturing industry. The U.S. as a whole is a rather poor example of mass transit with the exception of a few localized areas around the country. China and India still require leaps and bounds to achieve effective transportation, but the decisions that they make now will affect the world in the near future. They have the opportunity to create truly efficient transport systems to connect the billions of people that make up each country. Here are two links for a quick rundown of the overall transportation systems in both China and India.

”China’s Transportation System”

“India’s Transportation System”

By now we should all know how involved the government in China is with infrastructure and growth. They have been building on a simply massive scale with little regard for the environment, but are now facing congestion in major cities due to the massive growth. They are continually implementing new projects for mass transportation that rival the technological prowess of the most advanced countries, but is this really what China needs to go forth as more and more people are increasing their disposable income and want the status symbol a car brings?

As Cece Reyes posted previously, India has a rapidly growing market in ultra low-priced cars. These vehicles would be a major upgrade to the scooters families use, but does India have the infrastructure necessary to accommodate another 500,000 vehicles per year from one manufacturer? Thomas Friedman doesn’t think so. Read link for his views on where India should be heading.

Other links about the future of India’s transportation system:

“A Smoother Passage Through India”

“Making Mass Transit a Priority in India”

“Video on Train Safety in India”

As both countries modernize their systems, a big question is where the capital will come from. In China the obvious answer will be from the government. However, in India that question is currently up for debate, and who pays for the system will have a big impact on what the system will be and how well it will function in the interest of the public.

Both countries are using a diverse mix of transportation systems, and both are seeing a growth in the ownership of cars. This may be all good and fine now, but in five years will this begin to stifle growth in urban areas as more and more cars travel in an already congested city? Not to mention the increased pollution and use of resources. On the flip side if the countries firmly embrace mass transit as they grow, will the populace begin to demand more personal vehicles and leave the mass transit systems unused? There is no easy answer, and a mix of systems would do the trick, but what mix would be best for each country?

My questions for you are: What are the complications that will need to be addressed in both countries to continue to progress their transit systems? What are the business implications of following the U.S. model versus mass transit? How do these major decisions on transportation systems affect the rest of the world from a resource view? There is the ideal solution from an environmental and conservationist perspective, but which direction do you see each country progressing in the near future and what role will business play?

Submitted by: Alex vanDalen

We’ve been talking quite a bit about the differences between China the United States. We’ve discussed “the good, the bad, and the ugly”. Despite the myriad of cultural differences that exist between these countries, and indeed the world over, I am more and more struck by the blatant similarities that exist, not only in China and the USA, but in large nations across the board. Despite the rampant finger pointing, name calling, and general ideological drivel that emanates from party elites on both sides of the pacific, it seems that large nations everywhere are proceeding in the general direction of tyranny; imposing greater restrictions on the freedoms of their citizens, increasing the manipulation of the media, and tightening restrictions on the flow of capital, information, and people.

In China the CCP is reorganizing the method in which local and township officials are chosen, giving its citizens a voice on who they wish to elect. Under the new system, which is gaining steam in many areas, local citizens are encouraged to participate in local Party leadership and elections for officials are being held. Yes that’s right; ELECTIONS in China… provided of course that the nominee meets all eligibility requirements (i.e. CCP membership). See the full story here … China has also sent observers to judge the fairness of foreign elections such as the one in Palestine. Does the CCP judging the fairness of elections sound a bit ironic to anyone else?… while elections are great, as we’ve seen in the past decade in the US they are easily manipulated, stolen, and influenced via irrelevant “hot button” issues. Also, let’s not forget that China, as of the end of Feb., has barred foreigners, especially journalists, from Tibet and sensitive regions of Sichuan …what will THAT do to foreign investments and MNEs operating in the country?

Earlier this year, Pentagon officials said as many as 20,000 Soldiers under the U.S. Northern Command (NORTHCOM) will be trained within the next three years to work with civilian law enforcement in the area of “homeland security”. This is, to quote the report, in case “the economic crises should lead to civil unrest, such as protests against businesses and government or runs on beleaguered banks.” US military being trained to move against the US citizenry? Sound a bit like all the hoopla we’ve heard about China preparing for civil unrest in advance of its 20 plus million migrant workers becoming jobless? Party loyalists who don’t believe me can read the full government document here…

Then there’s the “hot” topics in the US: Nationalization of banks and insurance companies, CEO pay capping, industrial subsidization?… er… does that really sound like free market capitalism?

And let’s not forget Russia, after all it’s a democracy too now … isn’t it? Though Putin supposedly gave up power in 2008, it is common knowledge that his protégé Medvedev’s maintenance of his regime and it’s stranglehold on both government policy and media expression (not to mention the flagging economy) has led to pro-Bolshevik demonstrations across Russia earlier this year. Story here… Yes that’s right… many Russians apparently feel that the Reds can once again provide a more economically and socially viable alternative to Czar Vladimir I and “democracy”.

Regression toward the mean (thank you Dr. Jaggia) is apparently not just a concept applicable in the realm of numerical analysis. While it could be argued that the “communists” are becoming more fiscally open and the “capitalists” more socialist, I would argue that these ideological divides are nothing more than a fabricated excuse for all three of these nations to further restrict the freedoms of their citizens. The excuse time and time again is the same; “maintaining stability” or “ensuring prosperity” … prosperity and stability for whom … Washington DC, Beijing, and Moscow?

You may be wondering what this diatribe has to do with international business. How on earth can this be applicable to you ?… I believe that free enterprise is a critical component in ensuring the social and economic liberties of the individual. We’ve been talking quite a bit as well about sustainability and localization as it relates to “corporate social responsibility”. A firm is dedicated to making profit, yet at the same time this profit cannot be sustained in the long run unless the firm invests in cultivating and maintaining the well-being of its customers, economically, socially, spiritually,… across the board. Corporations are in a unique position to subvert the authority of governments as they function with many of the same rights individuals, yet with far fewer restrictions. With the advent of the internet, capital and information can move ever more freely across borders. China has met with almost no success in its efforts to block the internet data flow. There is some talk of an open-source banking system (see Ripple) that could subvert, and thus devalue, the worlds leading currencies. While at present this is only dream, business leaders are in the unique position to make critical decisions that facilitate an increase in the fluidity of not only capital and knowledge, but hopefully of people as well.

It is the responsibilities of corporations to do everything in their power (aside from illegal actions which may pose financial liabilities) to funnel capital away from governments that take actions that are not in the best interests of the people. These citizens are in fact the corporation’s customers. While boycotting investment is a popular method, it is one that may ultimately hurt a firm in the long run as other firms may not join you in the boycott ( i.e. prisoners dilemma). Creative business models that subvert or avoid tax liability (see the IKEA nonprofit example) are wonderful in that they have both legal authority while at the same time undermine fiscally irresponsible governments that use tax funds for items such as ICBMs, space lasers, and for all we know genetically engineered marsupial soldiers.

Unfortunately in the IKEA example, the firm has chosen not to “close the loop” and use their tax savings as an investment in human capital, rather they hold the funds so that their founder and his family can grow still richer. Still, I would argue that a consumer holds more power than a citizen (money talks) and that it is far easier to oust a possibly irresponsible corporation than it is to oust an inevitably irresponsible government.

To close, individuals can be corporations too! Running one’s life as a corporate entity may seem a bit far out, but it has some definite advantages, especial when trying to make oneself more mobile and adaptable in the global marketplace. Loyalties should lie with one’s community, one’s family, and one’s customers, not with an ideology or an assembly of autocrats thousands of miles away. To meet the environmental, economic, social, and political challenges of the 21st century it will not be on government officials but on us as future business leaders to think small, think sustainably, and perhaps most importantly, to think independently.

Comments, thoughts, and arguments are greatly appreciated (pls no name calling … i.e. “that guy is a Nazi” as it doesn’t befit the caliber of our academic institution).

Submitted by: David Caldwell

I came across a rather depressing piece while browsing the internet: an exposé about an Indian worker named Rewa Ram, entitled “My life cleaning Delhi’s sewers.” The article describes the job of one of India’s lower castes: the untouchables, or “Dalits.” While just reading about Ram’s experience is enough to induce nausea, he says “I am not educated, I come from a very poor family of untouchables. What else can I expect…At least I have a government job and I am able to feed my children. I get into this hell every day but then this is my job…I live smelling death, but it is fine.”

Ram’s response seems of indicative of a glass ceiling above the lower classes. When I started to think more in depth about what kinds of influences were keeping the Dalits down, I realized that I had almost no understanding of the caste system or social stratification – it’s just not something that I’ve ever had a lot of exposure to. This is why I’m so excited about getting to go to India to learn about their society first-hand.

Related to the previous article, I stumbled across another piece that caught my interest: a Fora.tv video about The Privatization of Water. While I don’t claim to be any sort of environmental advocate, one part of this video caught my attention. Alan Snitow talks briefly about how much more expensive bottled water is than municipal water sources, but American consumer guilt isn’t what he’s interested in. At 00:35:45 into the talk, he mentions that the “real problem [he] sees with bottled water is best seen in other parts of the world.” Specifically, he observes than in India, the middle and upper classes drink bottled water because there is a perception that the municipal water supply is unhealthy. As a result, the only support for improving public water systems comes from the country’s poorest citizens – essentially limiting their access to clean, affordable water by robbing them of any sort of political clout.

Snitow chastises the privatization of water sources all over the world by companies such as Nestle, Coca Cola, and Pepsi. This grates harshly against my experiences with business and education – until now, I’ve been a staunch believer that private industry was the best way to get many things done; after all, competition brings out the best in people, right? When I’m talking to my friends about a poor performance or a substandard service, I often jokingly say that “it’s good enough for government work!”

To reconcile these two conflicting ideas, I’ll have to think back to our Macro Economics course (GSB 533) last spring, in which Dr. Marlow taught us that when governments create restrictions and incentives in markets, they may achieve certain social objectives, but it won’t be as efficient an allocation of resources to their highest value uses as if the government had embraced a laissez-faire attitude. I appreciate that at the end of the day, we didn’t learn whether governmental intervention was right or wrong, but that it was up to us to decide what we thought was the most important, and to act accordingly to pursue those goals. As it pertains to Rewa Ram, it’s up to the Indian government to decide whether or not it wants to resist foreign and domestic investment in municipal replacements at the cost of efficiency, or if it wants to embrace them at the cost of its most destitute people.