GJ's Profile

Lauren, this was a very interesting and insightful read! Thank you. Many comments already touched on multiple ideas, so I try to keep it short. If water shortages affect hops and barley production, it should also affect the supply chains of all other agricultural products, most notably meat. In the not too distant future, we should see all prices of agricultural products rising (if we don’t want to buy GMO products which might need less resources to grow). In such an inflationary environment, aren’t consumer not just likely to accept higher prices for beer? One could argue that large multinational breweries might possess a cost advantage because they need fewer water in their growth process. But to my mind, that is also visible in the quality of their products. In conclusion, the smaller micro-breweries don’t compete for the same customer segment right now and won’t compete for this kind of price-sensitive low-end customer segment in the future.

With 20 preceding comments it is hard to say something new. But to my mind, one aspect is missing in the discussion. How will climate change affect the availability of water in wine-growing regions? For wine production, 872 gallons of water are needed in the production process of one wine gallon (1) The availability/reliable availability of water resources is thus a decisive factor. Climate change could desiccate whole regions.

[1] Boehrer, Katherine. Huffpost. April 13, 2015. https://www.huffingtonpost.com/2014/10/13/food-water-footprint_n_5952862.html (accessed 12 01, 2017).

Eye-opening article. Why do Western countries not adapt similar technologies? Populations would definitely benefit.
Your essay touches on very interesting points, but I’d like to add one more. Embracing digitalization, Seoul could also lead the way in transparent government behavior with high visibility/accountability. Right now, Seoul seems to be focusing on the supply chain of physical services for its citizens. What I’d like to see is a similarly digitalized supply chain of information and participation for local governments, e.g., voting, fulfilling public tenders online etc. The way I see it, this could add another innovative level to the way Seoul is delivering service to its citizens and could be a beacon for other cities across the world. Especially ones which suffer from corruption and information asymmetries.

Matt – Thank you. It was a pleasure to read your essay and I highly appreciate the quotes from some of the best movies around. Well done.

What can Disney do? Do build on a finance saying, in the streaming business, “content is king”! I see Disney in a very strong position. They have some of the best movies and a very strong brand. Their connections in the industry, the amount of available capital and their brand reputation should allow them to produce even more original content. To my mind, I would urge Disney to double down on developing an own OTT streaming service where they offer their content. Offering material from ESPN as well could serve as an important differentiator from their more family-oriented content. In addition to that, their new developments should aim at adding content which is not related to the family-segment, in order to have a diversified portfolio.

The author touches on multiple hot topics which are currently debated. On the one hand we have thriving foreign markets, on the other hand the US has a president who fears the movement of jobs from North America to other countries and continents.
The article makes a case for moving the final assembly to China and/or to look into the possibility to form a joint venture with local companies, despite the pressure from the US president.
Although I agree to the tenor of the post, i.e., that China is an incredibly interesting market for aerospace, I would caution Boeing’s management against moving the assembly to China. A credible fear of many western companies is the “transfer” of knowledge and technology. In order to access the market, the Chinese government forces foreign companies to lift its secrets [1]. Is a better access to this market really worth unveiling all of Boeing’s secrets in manufacturing?

[1] Wang, Yue. Forbes. October 23, 2017. https://www.forbes.com/sites/ywang/2017/10/23/china-first-foreign-tech-terms-must-be-wary-under-xi-jinpings-rule/#26b1129f44c3 (accessed 11 27, 2017).

Adding to the analysis, it is not only the possibility of tariffs which is threatening the supply chain of Jaguar and Land Rover. To my mind, a big worry of Brexit to JLR’s supply chain is the possibility of hold-ups at the customs inspection of parts from the EU. As Peter Campbell notes, JLR only holds inventory for 2 hours of production in some of its plants [1]. These just-in-time supply-chains rely heavily on the fast delivery of parts and additional controls or uncertainty at the border could severely impact JLR’s operations.

I disagree with the author’s idea that JLR could try to influence the Brexit negotiations to achieve a somewhat favorable deal. The political situation is so unclear and fragmented right now, that it seems that the UK is going to sleepwalk into a “hard Brexit”, i.e., exiting the EU without a new trade deal. Migration and billion-pound settlements are on top of the agenda of the negotiating parties. It is hard to see how one company could try to gain an edge in these talks.

[1] Campbell, Peter. Financial Times. October 16, 2016. https://www.ft.com/content/c397f174-9205-11e6-a72e-b428cb934b78 (accessed 11 27, 2017).