Do we need to learn Mandarin?

DISCUSSION TOPIC

Tesco Chairman Promotes Mandarin Lessons - 3/3/09

TOPIC SUMMARY:

David Reid, chairman of Tesco PLC, criticized the U.K. educational system for not teaching enough Mandarin in its schools. According to Mr. Reid only 10 percent of schools in the U.K. offer language lessons in Mandarin as part of the curriculum.

According to a report by The Scotsman, Mr. Reid told an audience at the headquarters of the Royal Bank of Scotland, “This has to change. The unprecedented speed and scale of changes in China means the U.K. cannot afford a slow transformation, as that will deny British young people the support they need to best prepare them for a future in which China will play a big role.”

Mr. Reid has the support of Gordon Brown, the British Prime Minister, in seeking to expand Chinese language and cultural programs. Mr. Brown said in January, “If we are to make the most of our relationship with China, we need to understand China better, through our schools, universities, cultural institutions, our businesses and in government. I am determined to do that.”

Discussion questions:  How critical is it for Americans to learn Mandarin for U.S. businesses to remain competitive in the future? Are there other languages that are equally or more important for American workers to learn? Is the American educational system adequately preparing students for an increasingly global marketplace?

My post: 

English standards in American schools must improve markedly.  English will remain the primary language of business for the foreseeable future.  However, learning a second language is also a critical skill – not only for working in an increasingly global workplace, but also for learning about world cultures and helping to avoid fundamentalist attitudes.  Mandarin, Hindi, Arabic and Spanish would be the key languages for helping ready our youth for possible international work opportunities – but any of them will do for the purpose of expanding minds and hearts.

Mike Osorio, your Dare to be Contagious! ^TM strategist

www.OsorioGroup.com

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Go to the full discussion at RetailWire.com:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/13587

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Should retailers raise prices?

DISCUSSION TOPIC:  Inflation Rears Its Ugly Head

TOPIC SUMMARY:

Another retro trend from the seventies is working its way back to retail. Unfortunately, it’s inflation.

Retail prices are expected to rise in many categories – e.g., apparel, footwear, toys and electronics – that have largely enjoyed a deflationary cycle over the last two decades. For retailers, many will be challenged to raise prices without irritating customers who have grown used to bargains.

The reason for the price gains are mainly due to higher manufacturing costs coming from China. Among the factors driving up the gains: rising wages in China, the devaluation of the dollar against the (RMB), escalating raw material costs such as steel, and rising fuel costs that are increasing freight costs and the cost of plastic. And many of these drivers – particular the weakening dollar against the yuan – are expected to get worse before getting any better. According to an article on Slate.com, some Chinese factories are now asking their American customers for price increases of as much as 20 percent to 30 percent.

That leaves American retailers to devise new pricing strategies to avoid overwhelming consumers hooked on $3 T-shirts and $30 DVD players. A manager of several discount stores confided to Slate.com that his company has started raising prices of certain goods while putting others on sale. Others are considering bringing in lesser quality goods to meet price points expected by consumers, or being more aggressive around opportunistic buys.

Longer term, suppliers will be challenged to find a manufacturing hub as cheap as China. Other countries seen as possible replacements, such as Vietnam and India, don’t have infrastructure to handle the volume production that the world depends on for cheap goods. Other countries expected to gain a stronger look include Indonesia, Mexico, Malaysia, as well as Brazil or Kenya.

Discussion questions:  How can a retailer maintain its value proposition to consumers in industries facing inflationary pressures? Should they be raising prices sooner rather than later?

My post:

I predict the silver lining in the current situation will be the failure of several so-called retailers which are really private equity owned financial instruments (some of which has already started).  When a retailer’s strategies are based on the basis of short-term financial results needed by short-term financial owners, a sustained downturn will frequently crush that retailer.  The ability of a retailer to raise prices appropriately based on real market conditions depends on the level of trust built with their customers over time.  Trust comes from strategies based on the customer and the brand vision.  Retailers who have built trust can phase in price increases because their customers will trust that this is appropriate given the market realities.  

Prices must be raised now vs. later to ensure the continued financial health of the enterprise.  Those retailers with strong trust-based relationships with their customers will continue to thrive, and those that don’t, won’t.

Mike Osorio, your Dare to be Contagious! ^TM strategist

www.OsorioGroup.com

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Go to the full discussion at RetailWire.com:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12906    

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Thank you for visiting my blog!  Please subscribe using the RSS button and comment on my postings.  Comments are the life-blood of any blog and I appreciate yours!