India - The Conclusion

In conclusion, the two weeks in India was most informative and I think I came home at least five pounds lighter.  Not my luggage, though.  I purchased a sari for my daughter who laughed at it and happily I will keep it for myself.  I made some wonderful new friends and look forward to next year’s trip.  No trip will ever equal this one thanks to the work of both Professors Grossman and Rao.  Jet lag from India was unbelievable.  I had no idea I would be so affected.  I fell asleep and stayed asleep for unbelievable periods of time for days however, I returned to the needs of my children and the fact that the Spring Session began just days after.  Even the (formerly) live Christmas tree needed to be removed from the living room.  I have lived abroad (in Europe) but this culture, history, foods and habits makes one see the world in different ways.  The use of human touch was different.  The food was different.   While I have had bouts in my life of vegetarianism, Mr. Ranganath of Grundfos certainly made meat eating sound very different when he spoke about an excursion to Subway that cost him so much more money to purchase a sandwich because it had cold cuts in it.  There is no way that I will ever recover from the transportation of India partly because of the amount of people that require some way to get from point A to B.    Seeing the smiling faces of people living and working together in small communities with little services and homes that we could fit into some of our kitchens, certainly make you appreciate the conveniences of the average American home.  All in all, one has to wonder if we are tooooooo pampered and if so, what will become of us and our society. 

India - Krushi Orphanage

I wish I had photos of the orphanage in Hyderabad called Krushi.  This home was started by the Alumni of Professore Rao's high school, known as Sainik School, Korukonda, Andhra Pradesh, after having some measure of success in their own lives.  I had many challenges with my camera and the requirement for batteries during my two weeks in India.  I am fortunate to say that I came home with over 350 photos, but sadly none of this day.  As our livery entered the compound, a swarm of SpongeBob Squarepants shirt wearing little boys met us with wide smiles.  When asked if they knew the character on their shirts, all smiled and responded negatively.   No Nickelodeon?  A smile from me (really a yellow sponge living in a pineapple under the sea?).    Seems the shirts were a donation to the school.  On this particular day roll call included 92 boys ranging in age from 5 up.  The newest boy had walked across the state and then was picked up at a local train station.  At lunch time, he could not get enough of the yellow rice and vegetables on his plate.  This boy did not speak the language of the others (or us, English).   The children enjoyed the members of our group that ran the soccer ball around the field with them.  A tour showed us how the facilities were self-sustaining with a reverse osmosis treatment facility.  We saw the bunk beds set in a military fashion inside of large rooms by age and met the residential help.  The home had hoped to expand and was in need of additional funds.  In a jaw dropping moment, Professor Rao pledged to assist with this goal and also provided the lunch meal that day.  The one thing that truly struck me was the little library of less than three shelves of books for the children to read at their leisure.  I have always been an advocate of reading with my own children, nieces and nephews and I live in the town having the first public library (benefactor Benjamin Franklin).  It is my future goal to assemble additional reading materials and send it to Krushi for these wide-eyed children that will hopefully have a brighter future thanks to Dr. Rao and his classmates. 

While touring the various businesses, the subject of salaries came up.  There was no discussion on any differences between men and women but rather the hours that a woman worked as opposed to a man who was able to work at any hour.  Call center employees started at approximately $10,000 USD per year while the skilled workers (university educated) such as software developers/engineers, etc. started at approximately $70,000.  Those working at the sewing factories were making $100 USD per month.  Employers spoke on the benefits that there were available to their employees including additional training programs and certifications at employer expense, cafeterias, wellness programs including gyms and fitness trainers and in some cases, housing and transportation. 

India - Celebrity Fashions International Ltd

Celebrity Fashions International Limited is a shop sewing shirts for Abercrombie & Fitch, Timberland and Indian Terrain (an Indian brand of clothing).  This shop had a goal that day of putting together four hundred shirts.  During our briefing, the managers gave information on cotton grown in India, harvesting and some history of cotton in India and Pakistan.  We started our tour in another building where fabric was rolled out and cut with precision.  From there the pieces were brought into the main building, assembled and processed for shipment.   As we entered the gates, there was a sign saying that only those over the age of eighteen years would be considered for employment.  Both men and women worked in these buildings with mostly women using sewing machines.  There was signage saying that all overtime was voluntary.  It was explained to the group that the business ran six days a week with an average work day of eight hours.  There were several buses in the backyard that the managers explained were for transporting employees to work.  We were told that the average time it took an employee to come to work was thirty miles or one hour of travel.  This site employed 1400 employees.  There was a lot of signage throughout this building with an employee bulletin board in the front explaining HR policies, etc.   

We were not shown any recreation at this site to garner camaraderie amongst the employees.  There was no visit to a break room or cafeteria.  The average employee was making $100 USD per month.  The price tag being snapped into the fabric of an Abercrombie & Fitch man’s shirt showed $78.50 (USD).   Most surprising as we departed was the sight of all of the women’s handbags on shelves outside of the building (inside the gates of the shops but untended by any of the security guards).

India - Grundfos

Grundfos was the business in Chennai that we visited on January 11th.  Managing Director Ranganath N.K. sat with us for quite awhile discussing his views on the differences between modern day India and the United States.  Mr. Ranganath is a constant visitor to America.  Grundfos is a Danish company having started in 1977.  The green building of Grundfos in Chennai has garnered awards for its use and design. It opened during 2005.   Mr. Ranganath spoke on the social responsibility of creating a pump that was energy efficient therefore it was natural that they would inhabit a building that would be healthy and happy for its employees to work in and that would not be harmful to the environment.  Grundfos creates pumps for domestic waste water applications.  We were shown how discarded wood had been turned into office furniture for use in the building.  Mr. Ranganath opined that he did not believe that American/Indian abilities were so different but rather there are cultural differences which require consideration in the workplace.  In wrapping up his visit, Mr. Ranganath spoke on the unnecessary violence in the United States saying it was more challenging to get a driver’s license than a gun permit.  He also gave an example of a senseless practice when he tried to turn in a rental car earlier than the contracted date.  Even though he was willing to pay the difference in the contract, the rental company refused to allow return of the car.  His personal opinions on U.S. policies were insightful and gave reason to consider an outsider’s view.   Generously we had a tour of the plant and enjoyed lunch in the company lunchroom.    

India - Education

Education in India was right in front of our face every day.  The children go to school six days out of the week wearing uniforms.  We saw many field trips of these children while touring historic sites in their nice orderly rows looking intently at us and the exhibitions.   Even the most rural village we toured near Bangelore had their children going off in their tidy uniforms to school each day.  Higher education is everywhere.  Colleges and universities are springing up to support the needs of India.   We toured Symbiosis Institute of Business Management and had an exchange with faculty and students of the differences in our educational systems.  When asked if the Indian students were contemplating coming to America after receiving diplomas, the students were unanimous in agreeing that there were too many opportunities in their nation to consider leaving for employment reasons.  When touring the businesses discussing employment, many said they would not consider hiring anything but Indian students.   However, these employers discussed the challenges of keeping their skilled employees.  It was not uncommon for another company to offer a better package and without company loyalty, those employees would “jump ship”. 

Shopping in India was a lot of fun for the majority of the group.  There were bazaars featuring gold jewelry, handmade wood items, clothing and other textiles.  Teak was very popular with intricate carvings.  While visiting the owner of Cow Paradise close to the Fireflies Ashram, the owner showed us a beautifully carved teak chair looking out into the garden for the express use of visiting religious monks.  Most shopping was done at locally placed mom and pop operations.  Our first walk outside of the Fireflies Ashram was to the local village where cigarettes were purchased for approximately half a dollar.  This business, like a convenience store, had a few other small items for purchase by villagers.  While I would compare its service to our convenience stores without the volume of inventory it had no welcoming doors, ADA ramp or even a sidewalk outside.  Instead there was only dirt.  To close the business there were pulled down gated doors.  No credit card machines , ATM or parking area.  It was possible to get a Coca Cola or Pepsi but the only decaffeinated Coke I had during the two weeks was the one that came with me which I drank after six days and being chilled in a hotel fridge.  We were always careful to ensure that our water had been boiled or filtered prior to consuming. 

Later we travelled into Bangelore where we went to an area known as their Times Square where saris, scarves and other tourist items were available.  There were lights strung over the congested street.  Trying to cross any street was its own adventure.  In Chennai after taking our train ride to the street bazaar, we got off the bus at a MALL!!!!  It was heaven to sit and have a cup of coffee with a muffin before browsing through the many floors available of multi-national brands and some solely Indian such as Indian Terrain.  (Indian Terrain was a textile company to be visited later in the week.)  McDonald’s with veggie burgers was available in the food court along with Chinese food, Arabian food and a pastry cart (just to name a few).   Currency was always a challenge.  Happily I brought along my calculator which got quite a workout.   While one professor assisted the group with currency exchange, we found it necessary on occasion to use exchange places.  45 rupees equaled the USD during our visit.  Saris were a popular item for purchase by mostly the female students or as a gift for a loved one back home.    Sadly, street vendors and beggars were extremely aggressive.    Even though they were told emphatically no, they would not let up and move on to other targets.  Persistence was their motto. 

India - Historic Places

While in India we visited many historic sites.  Our first visit was to the summer palace of Muslim general Tipu Sultan built sometime in the late 1700’s.  While there we saw a Persian manuscript book written by hand which contained the code of regulations used by the general and his Army.  It was a beautiful palace requiring some restoration which was being done while we were there.  From there we visited the gorgeous cathedral of St. Philomena.   For lunch we headed to the Queen’s Castle in Mysore.  Professor Rao explained that the ladies of the court stayed with the queen in this smaller palace while the king conducted business across town in his much larger and more majestic palace.  The Queen’s Castle was now a five star hotel accommodating guests as a cost of about 6000 rupees per night for two people in a standard room.  The grounds had monkeys roaming around and were found in the outdoor pool when one of the group jumped in for a swim.  Sitting at the lunch table under the Wedgewood blue colored ceilings we ate from a Thali.  The Thali contains a plate of various curry entrees, bread and a dessert.  There were sitar players serenading the group.  It was a magical experience completed with a surprise visit by a lizard on the veranda as we left the building.  From there we ventured across town to the King’s Palace with many cannons guarding the entryway.  Large photographs of royals showed the group who inhabited these magnificent domains.  There was a quick stop to the Timpurthy Temple and the wonders at Mahabalipuram.  There were many temples throughout our visit.  While in Chennai we went with a guide to the oldest temple there.  We left there to see St. Thomas’ Basilica and then to Fort James Museum.  We ended that day with a trip to the Snake Park seeing massive reptiles all in one place.  The next day we set out for a long drive to Pondicherry, a French colony.  This looked a lot like the architecture of New Orleans.  Pondicherry is also on the ocean.  We rode by another beautiful Christian church and stopped at an ashram where silence was a requirement.  The last and most breathtaking monument (for me) was that of Golkonda.  This fourteenth century fortress encompassed a massive amount of property which included several walls to surround several villages.  To reach the top one must climb more than 350 stairs passing two mosques along the way.  That evening we took our seats to a fascinating history of the fort including a light show.  The challenge besides the 360 stairs was staying awake after the early morning departure, physically exhausting day and the excitement of being in India.  Fortunately some old was mixed in with the new when we had a stimulating visit to the new golf country club in Hyderabad courtesy of Professor Rao’s former classmate, Mr. Amarnath Devabhaktuni. 

India - Transportation

Transportation throughout India was indeed a challenge.  We were blessed to have luxurious bus service everywhere we went but it was not without its moments.  On our first business visit while dressed for success, we ventured into the city to the EcoScience Park for a visit with MicroLand.  Our journey was not without excitement.  The traffic of India is not something you can envision driving down our own landscaped expressways and clearly laid out road systems.  This is a country exceeding one billion people with a median age of 24 years old.  Just as done by their former British rulers, Indians drive on the left hand side of the road.  Most roads are narrow and the cacophony of horns is overwhelming.  There is a horn blast for getting a slower vehicle out of your way or for letting oncoming traffic know that you are passing on the right.  While we were travelling to MicroLand the left hand lane was obstructed with a rare piece of some type of construction vehicle.  Vehicles, cars, busses, bicycles, auto rickshaws, etcetera were all trying to get around and to continue on their journey.  In a flash a city bus came by and knocked off the driver’s left hand mirror from our bus.  The driver stopped, put the bus into park and took the keys with him as he ran after the offending bus.  It appeared that as the city bus stopped to hear the complaint that the two drivers may come to blows.  Instead, our driver entered the bus which continued down the roadway!!!  We sat stupefied unsure of what to do next.  After a lengthy period of time the driver returned saying that he settled with the city bus driver for ten rupees (approx. $4.50) for the damage and we continued on our way to the happiness of all of the traffic stalled behind us.  Auto insurance is essential in India (says Auto Mobile India, internet January 21, 2011) and there were many billboards advertising this service.     

To give us an additional lesson on day to day life in India, the two professors took us to the train station where tickets were purchased for us, handed out and we boarded the train for a short ride to the bazaar.  It was explained that there was an upcoming holiday which required new clothing so everyone was shopping this particular Saturday afternoon.  Entering and exiting the train was done in a rhythm that did not allow for error.  The throng of thousands banded together and moved.  The same precision was necessary to get from one end of the market to the other.  Stopping for a transaction was out of the question since the study group would have been lost in the masses.  Similarly we returned to our hotel by city bus with so little space people were standing on the stairs leaning out of the bus. 

Coconuts in India

We received an additional education while in India in the use of coconuts.  While having a sightseeing excursion to Mysore (famous for its silk fabric), we had a visit to the cathedral built in 1933 (Wikipedia says 1936) to honor Saint Philomena .  It was quite beautiful having the catacomb for St. Philomena located in the lower area with the alter on the ground floor above.  Outside are vendors selling religious relics, teak carvings, etc.  Professor Rao steered the group to a local vendor selling coconuts.  He purchased a round for the group.  The vendor took his machete and hacked off a portion and dropped a straw into the liquid inside.  Once you drank the liquid, the coconut was handed back to the vendor.  He carefully took his machete and hacked the coconut in half and then whacked off another piece of the hard outside to be used as a knife to cut through the soft inside of the coconut to eat.  We wandered off leaving the two shells of the coconut with the vendor.  Later we learned that the shells are burned for fuel.  Coconuts grow very well in India and could be seen in many of the areas we visited.

India Rising - One Billion Reasons to Care

In the ABC Documentary India Rising – One Billion Reasons to Care, the videographers took to the streets of India to see life as it occurs in India.  It was quite surprising to see the internet school with the older model computer knowing that the call centers of India are taking incredible volumes of calls on such outdated computers.  The language of English was constantly referred to but as we viewed many signage throughout the country, the use was not always correctly stated or spoken.   The housing was as poor as it was in the first video and transportation also difficult with so many people to be transported.  I also viewed another video not on the list about the Indian Military:  Future Superpower.  This made me very curious about an aspect that was spoken little about – the role of women in Indian society.  While travelling about we did see women performing in military uniform.  In the prestigious companies of Infosys and Microland we saw women employed at those businesses but it was in the pharmaceutical company of Astrix Laboratories that we heard that the social norm only allows women to work during certain hours of the day (I assume this is outside of the home).  We saw women selling fish and working in the fields of the village. 

Review of the Future of India

The video, Future of India was very insightful giving a history on the many contributions to progress the Indian people have made.  It also appears that with the challenging educational process that is common in the nation of India, there is much more to come from them.  One must wonder, however, when people will become unsatisfied with the poor housing, challenging public and private transportation, long workdays and lower pay. 

U.S. Anti-Trust from the U.S. Government

Mergers and acquisitions are two different ways of bringing organizations together.  In a merger two entities are brought together and combined to become one larger entity.  In an acquisition, one entity transfers its control to another but may still act independently.  Prior to these acts being finalized for entities acting within the United States, there must be a review and acknowledgement from the Antitrust Division, the Federal Trade Commission and the Department of Justice all enforcing federal anti-trust laws. To gain more information on mergers and acquisitions being considered within the United States is at the Federal Register.  This publication is created and printed by the Government Printing Office which also includes information for the National Archives and Records Administration.  According to the webpage for the Federal Register, it is the “official daily publication for rules, proposed rules, and notices of Federal agencies and organizations, as well as executive orders and other presidential documents. It is updated daily by 6 a.m. and is published Monday through Friday, except Federal holidays.”  When making business decisions, it is important to have the most up to date information available when considering purchases from either stock or companies.  This publication is just one of the many ways to acquire information relevant to those decisions. 

Marriott Corporation In India

 Entering foreign markets is not a new phenomenon for Marriott International.  For the last 53 years Marriott has been generating growth in the hotel industry.  Marriott actually owns few hotels, but adds its name through franchising and licensing agreements.  The Pune Marriott Hotel & Convention Centre will be located in Pune near Mumbai, India.  This is the 500^th Marriott Hotel being opened by the corporation.  You will recall that Mumbai, India, a tourist area, had a major bombing a few years ago.  The Marriott organization announced that it intends to quadruple its inventory of hotels in India over the next three years and that India has proven to be a successful market for the Marriott Corporation.  In determining where growth should be in the hotel industry there are several factors to consider.  There is enormous growth in the business world of India making a name brand such as Marriott something to be sought out when making a business trip to another culture whether you are an American or European, etc.  India also offers a wealth of history and tourist attractions bringing customers from a myriad of cultures for vacations as well as business.  In keeping with the cultural differences, the organization has brought both together to make each feel comfortable in this environment.  During the celebration opening the new hotel used a traditional lighting ceremony, music and dance performances native to the Indian culture.  The rich fabrics of India are used throughout the hotel.  But the quality of the Marriott organization is familiar to those that use Marriott Hotels throughout the world.  The hotel ownership is Indian business owners having previous ties to this community and knowledge of institutions in India.  Marriott also encourages community and is a major sponsor of many charities involving children.  Leprosy continues to be a challenge that India deals with and prior to the opening of this hotel, another Marriott hotel became sponsors of a local orphanage in Chennai that has children and parents suffering from leprosy.  The hotel staff began Rising Star Outreach, a non-profit organization to provide schooling, housing, sanitation and good nutrition to people with Leprosy in India.  The road to India is being paved with good works as well as offering jobs and services to the local community. 

Racing as an Entrepreneur

Ever consider F1 racing in Monaco?  This is one of the oldest automobile races in the world.  It is also one of the most expensive places to have a short vacation.  There is the flight to get to this small country near Nice, France and the need for hotel accommodations.  How about being in chilly Siberia and attempting to run the Daytona 500 in sunny Florida?  These are possibilities thanks to entrepreneurs sitting in their computer rooms, licensing fees and a few keystrokes to encourage those racing enthusiasts that have full time jobs and responsibilities.  Road racing is an expensive hobby and one that requires a team.  Tough for the average working person to consider however with a little initiative once the internet was a reality it has become easy to do.  Simulators have been used for training opportunities but now are available for recreation.  Small fees are needed to enter races after building your car.  There is an industry for those that create the virtual autos and teams if the driver isn’t particularly skilled.  There are fantasy haulers to bring the virtual autos to the racetrack.  Another industry associated with this sport is viewing the races on the computer where you can sit in the stands of your own computer room and cheer on your loved ones even though you are sitting in another state.  Broadcasters tune in via radio/computer set ups to cars to interview the drivers.  As shown in recent news, there is still risk associated with the creation of an internet business.  Entrepreneurs have risk.  While the textbook discusses storefronts being beneficial to small industries, the internet has opened many opportunities without ever leaving the living room to include shopping, dating and racing. 

Looking Ahead to the G20 Summit

It appears that next week is going to be a very busy week for Korean President Lee Myung-bak who will be hosting the upcoming G20 Summit in Seoul.  In the Korea Herald today it is being reported that he will talk with U.S. President Obama and the Chinese President Hu Jintao for final coordination of the agenda for the G20 Summit and one of those agenda items will be the currency exchange rates.  The article reports that there are criticisms from China and Brazil at the latest U.S. stimulus plan adding six hundred billion dollars of long term treasury bonds into the U.S. economy.  The fear is that this will create a sharp drop in the dollar and create a flood of capital inflows into emerging markets.  President Lee hopes to mediate this issue with the Chinese and U.S. President prior to the beginning of the G20 Summit.  China currently holds many treasury securities.  There is much speculation about what China could do to retain its current economic standing.  Possibly they could purchase some of the new treasury securities adding to the large debt it currently holds.  If the Chinese Government was to revalue its currency, this would create havoc with the U.S. economy.  Additional items that President Lee will address during the summit is economic cooperation with the Brazilian President for a highway construction deal in Brazil, he will meet with Russian President and the Australian Prime Minister to assist in the on-going negotiations for a free trade deal between Korea and Australia.  Also attending this meeting will be the U.N. Secretary General.  While President Lee meets with the Russian President, there will be talks on economic cooperation involving energy and natural resources, modernization efforts and lastly the denuclearization of North Korea.  Last week there was a free trade deal signed between Korea and the Economic Union.  There will be additional meetings to work towards ratifying this deal.  Lastly will be negotiations between Korea and France to retrieve “Oegyujanggak” which are books containing records of the Josean dynasty of Korea which were found to be taken during a French invasion in 1866.  These documents have since turned up in the National Library of France.  This blog does not have a complete agenda of all items to be discussed at the upcoming G20 Summit but it shows a wide array of items to show how global the world has become.   Upcoming highways in Brazil to retrieving historical documents taken during 1866 found in a library.  These world leaders have lots to discuss to maintain an economy and a society for all people to thrive in.  In looking at world leaders, it isn’t hard to believe that when taking office a nation’s head of state whether he is called President of Prime Minister has a full head of colored hair which can easily go grey from the weight of these responsibilities. 

Investing in the Future

Here I am blogging about chapters 5 and 6 of our text book.  The subject of chapter 5 is about trading internationally and chapter 6 covers investing abroad.  James Hagerty wrote in today’s Wall Street Journal in an article Dollar’s Swoon Opens Doors how opportunities are being presented for company’s abroad from the “slumping U.S. Dollar” and the “sputtering” economy.  He continues in the article saying how the weak dollar is helping Consol Energy, Inc., a Pittsburgh-based coal and natural-gas producer compete with countries such as South Africa and Australia in China.  Consol opened new offices in Asia and Switzerland through a partnership with a trading firm.  The article continues giving other examples of how the U.S. Dollar is affecting businesses worldwide both positively and negatively.  One company has begun participating in trade shows in Asia and Europe in an effort to develop its business of industrial and marine equipment.  One tool and die owner was quoted as saying that with the challenges the U.S. dollar is facing, that it gives a price advantage and that branching out globally rather than rely solely on North America for sales.  Interestingly the text discusses the ethical dilemma of Delphi Corporation and the high cost of doing business in the United States while today’s Wall Street Journal is full of stories of businesses investing in global businesses for their futures. 

Blogging into Week Three

Blogging into Week three.  I have the Wall Street Journal spread out here on the kitchen table.  On the front page is a quick blurb entitled Vital Signs with a graph showing the G-7 unemployment rate of the G-7 Nations (seven nations including U.S., Canada, Britain, France, Germany, Italy and Japan).  Last fall the rate on the graph peaked at 8.5% and today it is only down slightly.  The article compares to the early 1980’s when the rate was at 8.2% but then about nineteen years ago when today’s college freshmen being born in 1991, the rate decreased to just above 5% and then began to rise and fall again and again leading into this much higher rate. 

So what was happening in 1980?  Well, there was a U.S. led boycott of the Olympics in Moscow because of the Soviet invasion of Afghanistan.  In the United States, President Jimmy Carter introduced the Carter Doctrine in his last State of the Union address in which he noted that the United States would use force if necessary to address actions in the Persian Gulf region.  The G-7 was having their sixth meeting in Italy, marred by the death of the Japanese Prime Minister who died prior to the start of the conference.  Happily, Japan was having an economic boon during 1980.  G-7 annual meetings continue now as the G-8 with a mission for these economically well off industrialized nations to meet for an international forum.  Russia entered the group in 1997 making it the G-8.  Vital Signs does not include employment statistics for that nation.  In June 2010 a quick Google search shows that the Russian unemployment rate was published at 6.80. 

Recapping the international changes from 1980 to 2010 would be much too time consuming but notably from the comments in the beginning paragraph, Afghanistan is still in flux although the Russian presence is very different.  The United States now has a presence there along with United Nations troops.  This last weekend there was an election in Afghanistan with voters being intimidated by insurgents.  It will be weeks before the results are known. 

WSJ: Cuba Unveils Huge Layoffs In Tile Toward Free Market

The one thing that is constant is change.  So correct.  Times are changing.  Cuban President Raul Castro has announced that a portion of government workers are being “laid off” to encourage more private sector jobs.  In doing this, he also must now consider what industries there are that will absorb these workers.  Currently Cuba has a list of 124 jobs that are “authorized” as self-employment.  They include toy repairer, music teacher and piñata salesman.  There is still need for policy changes within the government.   While it is permissible to manufacture furniture, mass production is discouraged.  Instead there must be an order for a piece of furniture.  Cuba has been economically supplemented by Venezuela but that country may have difficulties with keeping us this practice.  Industries that Cuba is looking to consider include oil, tourism and biotechnology.  The information that I am including in this blog comes from the Wall Street Journal (an article written by Jose De Cordora and Nicholas Casey on September 14, 2010).  Cubans realize that the world is changing and that economically they cannot be left as the only nation not moving forward in globalization.  Could Cuba be one of those nations for Vera Wang and a renewed tourist location for destination weddings? 

WSJ: Vera Wang's Idea of Empire: Marry High, Low, In Between

In my first International Management blog written after seeing “Bride Wars” again, I was happy to read about Vera Wang in today’s Wall Street Journal.  It is Fashion Week in New York City.  Writer Ray A. Smith discusses in the WSJ Marketplace section today “Vera Wang’s Idea of Empire…”  The article gives some tiny pieces of biographical information on Ms. Wang.  She is 61 with a 20 year closely held company having a three-tiered retail strategy in several locations throughout the United States and some in countries such as the Ukraine, Saudi Arabia and Thailand.  In all there are a total of thirteen international locations.   One year ago, Mario Grauso joined Vera Wang as President (giving Vera more freedom for design) and the company gave a five year plan to expand in Asia and Europe as well as creating more affordable products.  The Wall Street Journal article was to provide information on Vera Wang and the decision to design for David’s Bridal, a three hundred store chain, mainly in the U.S.  David’s Bridal does have a few international locations. The line being created for David’s Bridal will be sold at prices ranging from six hundred dollars to fourteen hundred dollars.   Vera Wang has created other affordable products for retailers such as Kohl’s however this is a huge departure for Ms. Wang who has designed wedding gowns for such notable figures as Chelsea Clinton, Hillary Duff and Alicia Keyes (these most recently).

Mr. Smith further describes in this article a three-tiered retail strategy of products in a luxury line, a mid-priced and then a discount line.  He talks about how this strategy can be “tricky” by the fear of tarnishing a designer’s image.  The article concludes with the company’s plans to further expand the luxury locations and its dealings with celebrities. 

In conclusion, readers will need to stay tuned to find the additional locations that will favor Vera Wang’s styles.  As stated previously, she has thirteen international locations but only one in Asia (Taiwan) and none in Russia.  David’s Bridal only has locations in four countries but also has none in Asia or Russia.  There are huge cultural differences for weddings in many parts of the world and both Vera Wang and David’s would need to become very educated on those markets and strategize to meet those needs to become successful.