How do you stay ahead of your competitors when you manage more money than the GDP of China, Japan or the United Kingdom?
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It will be hard to predict policy outcomes as politics becomes more complex and volatile. Regardless of what happens in politics it is key for companies to diversify and create contingency plans. While Samsung has likely incurred increased costs to move plants to the U.S. they are also effectively hedging against unknown future policy decisions. This is not only a U.S. problem but a global one. Companies must manage their global footprint conservatively, so as not to be overly concentrated in one part of the world. Whether a company faces problems in manufacturing (e.g. Bangkok floods) or services businesses (e.g. Brexit) a company’s assets must be diversified and there must be contingency plans in place.
Sharat, I appreciated how your piece clearly lays out the short and long term impacts climate change can have on Miami. I think one point that is clear to me is that only Miami can save Miami. It seems that on a national and state level funding and support will fluctuate for climate change, so it will be hard to depend on outside political funding or support. Overall, Miami must make efforts along its most vulnerable areas and consider secondary impacts of climate change (like boat issues). It is also vital to protect against climate change today, as hurricanes become more violent and destructive Miami will need to help its citizens and infrastructure be resilient.
You mention some important consequences that isolationism and policy can have on a local, concentrated, work force. Going forward it will likely continue to be difficult to predict the political environment. As a result, I would suggest that as LFP rebuilds its workforce it also focus on managing risks. Are there ways we can get as diverse a work pool as possible? Can we crosstrain employees so they can take on new roles quickly if needed? Can we leverage technology in a way that we can replace some human job processes? Is there a way to use outsourced staffing or incentivize workers to come from outside our local area?
Overall, political decisions will be hard to predict. Companies like LFP should continue to plan for the worst.
You bring up some interesting points to consider in the battle against climate change. While we think of climate change as a macro/global problem it is also a micro/city problem. I think many of the methods you mentioned will help Dallas battle climate change, but the city must also focus on leveraging its local, state, and national relationships. While Dallas can implement its own strategies, by gaining both monetary and political support from larger political bodies, cities can better implement a coordinated climate change policy. Further, by joining with other cities there can be a lot of shared learning and synergies. Dallas could also look to financial partners both locally and across the country to help the city finance new infrastructure projects that offer benefits for the municipality as well as solid risk adjusted returns to investors. Overall, Dallas, like all cities who wish to battle climate change, must leverage as many resources as possible to be successful.
Kimberly, you bring up a lot of interesting points in your piece. Relating to my own consumer behavior I have definitely focused many of my online purchases where I know I will get free/fast shipping. Whether I shop at Amazon or other ecommerce companies I prioritize my purchases on shipping.
I wanted to touch on your point around innovation in Amazon’s last mile distribution. As you mentioned, technologies like drones and improving warehouse technologies could help Amazon become more efficient. I believe solving the last mile problem will be a key driver of Amazon’s success. It is interesting that Amazon is also innovating on last mile through its acquistion/distribution strategy. In its recent purchase of Whole Foods (see article link below), some speculate that Amazon can now leverage the 430 Whole Foods stores as new distribution, storage and pick up points. It seems that Amazon is well aware of the opportunity and challenge presented by its supply chain and is attacking it from many angles.