I empathize with the concern such political moves lead to. Highly appreciate you bringing this topic! Delphi can either choose to succumb to such changes or may push its creativity/innovation to reduce the costs in other areas and try to maximize value. While Delphi may not be able to serve other countries through use of resources from Mexico, it can look to create a strong customer base in Mexico, keeping in mind the customer demands & affordability. I still believe that government decisions are not that irrational in the mid to long term, though companies and ecosystem may have to adjust accordingly.
I could not stop thinking about the visa restrictions in US for Indians in tech companies. Prima facie, this looks as a move to discourage Indians from contributing in US, but there is also the point to push IT companies in US to pay Indians at par with US employees and stop exploiting cheap labor. I am sure there is more to it to fully understand.
In the short term, Delphi must start looking for supplies locally as the business continuity plan. And, for moral responsibility towards Mexico, Delphi can explore to develop products to be sold in Mexico or keep exporting at high prices.
Thanks for choosing such an exciting topic! In such issues, its difficult to pinpoint the reason and clarify the intent. As I read about this, from European Union’s point of view, American based tech companies are exploiting their lack of physical offices in a country to book their profits in low-tax states. (https://www.theguardian.com/business/2017/sep/26/eus-tax-plans-for-tech-companies-will-damage-growth-us-body-warns). In nutshell, broader question is that are American based tech companies helping Europe grow enough as compared to the value they are extracting? Tech industry in Europe is quite behind that in US. So though governments are interested in anyone serving their consumers but also have vision to promote in-house capability in any field. One way Indian government deals with this is that it required the companies to put up offices and hire Indian talent so the deal benefits mutually.
On the other hand, to bust consumer side barriers, Google and other companies need to understand the local behaviours, challenges and needs while designing & offering a product. Assuming that a product designed for US consumer will work globally may not help. Eg: Uber offers “pay in cash” option in India.
Thanks for sharing your insights on this topic! You have done some comprehensive research. It caught my interest and I read about it. Firstly, I believe it’s the responsibility of all the organizations esp the big ones to join hands with government and set up good examples to protect climate to inspire others to follow. However, government rules can change practices (such as the ban of sow gestation crates in Europe and some USA states). US can seek inspiration from other nations:
1. Chinese government emphasis is on modernization and industrialization of the pork sector while enforcing strict implementation of environmental policies to address the country’s land and water pollution issues.
2. Australian government has provided funds to Pork Cooperative Research Centre to find ways to support the industry sustainably. Government drought assistance to Australian farmers must reflect the bigger picture of climate change to allow for sustainable agricultural production, and equally as important, eligibility criteria and assistance measures must be updated to reflect modern day farming practices and business structures. (http://australianpork.com.au/wp-content/uploads/2013/10/National-Environmental-Sustainability-Strategy-for-the-Pork-Industry.pdf)
This post is quite educational for me as a consumer! I do agree with the steps Levi has taken to combat the climate change. Other than leading by example in adopting sustainable measures and educating the consumers, I think Levi can promote recycling of jeans so we control the number produced overall in the world (http://www.greenpeace.org/international/en/news/Blogs/makingwaves/fast-fashion-drowning-world-fashion-revolution/blog/56222/).
Levi can also work with farmers on the latest irrigation and water harvesting techniques in the key countries to produce cotton in more eco-friendly way. Dutch aWEARness, creates clothes from 100% recyclable polyester. It uses 95% less water & 64% less energy during production than standard cotton.
I appreciate you bringing up such an important topic. I agree with you that application of GIS is much more than just planning & coordination. Some of the challenges faced are in giving access to refugees on education & livelihood. While we see some progress in using these systems to understand the “demand” and match with “supply”, it may not be always possible to bring outside supplies timely. So another interesting application would be to collect and integrate the data on the refugees and use it to make those resources available to themselves as required. Eg: some of the refugees could be doctors or teachers and can be relied upon till outside supplies get in.
Thanks for sharing this interesting case! I share your concerns on meeting “5 year” targets with digitization, but believe that Danone Russia should explore on taking pricing to improve margins or selling more leveraging its strong presence, rather than investing in digitization. Reason is that digitization will lead significant upfront investment (cost & resources) and would also depend on the state of digitization of other stakeholders (suppliers, customers etc). My concern is that if Danone Russia don’t see gains materializing within 5 years, they may resort to cutting corners in quality of product which will make the situation even worse (https://www.ft.com/content/e1c99df2-78a1-11e4-b518-00144feabdc0).
Other than timeline concern, I agree with 2 out of 3 possible next steps. Regarding the marketing spend, I think Danone Russia should stick to TV advertising as this is the product for masses and internet penetration in Russia is ~50%. Effectiveness can be measured with help of market research companies (such as Nielson) through consumer surveys in terms of brand awareness, equity etc. Also, as read in Marketing cases, its bit difficult to calculate returns even on digital marketing.