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December 24, 2005

Roe v. Hwang


stemcell.jpg The last few days have seen a major story break, one that will reverberate through scientific, academic, and corporate circles for years. Here's one headline I picked up via Drudge:
"South Korean researcher Hwang Woo-suk faked results of at least nine of 11 stem-cell lines he claimed to have created, a deliberate deception that has undermined the credibility of science, his university said Friday.The announcement by Seoul National University of results so far in its investigation into Hwang's work were the first confirmation of allegations that have cast a shadow over his entire list of breakthroughs in cloning and stem-cell technology."

By early Friday a SNU panel announced its findings:

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December 20, 2005

What Conflict of Interest?

broun-heywood.jpg As is now widely known, Linda Foley, President of The Newspaper Guild, a union representing media workers, made the following remarks during a speech toThe National Conference For Media Reform on May 13, 2005:
"Journalists, by the way, are not just being targeted verbally or, ah, politically. They are also being targeted for real, um, in places like Iraq. What outrages me as a representative of journalists is that there's not more outrage about the number, and the brutality and the cavalier nature of the US military toward the killing of journalists in Iraq. I think it's just a scandal."
"They target and kill journalists from other countries, particularly Arab countries like Al Jazeera, for example. They actually target them and blow up their studios with impunity."

Accordingly, the above remarks, along with her non-clarification a few days later, have prompted many to re-examine other of Ms. Foley’s public remarks. In War Journalist Action Figures I pointed to the “Our Future” statement appearing on the NewsGuild’s site where Foley gushes that news industry workers are “making news and shaping a revolution”, not merely reporting and documenting.

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December 19, 2005

War Journalist Action Figures

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Linda Foley, President of The Newspaper Guild, a union representing media workers, made the following remarks during a speech to the National Conference For Media Reform on May 13, 2005:
"Journalists, by the way, are not just being targeted verbally or, ah, politically. They are also being targeted for real, um, in places like Iraq. What outrages me as a representative of journalists is that there's not more outrage about the number, and the brutality and the cavalier nature of the US military toward the killing of journalists in Iraq. I think it's just a scandal." "They target and kill journalists from other countries, particularly Arab countries like Al Jazeera, for example. They actually target them and blow up their studios with impunity."

No sooner did Ms. Foley make these statements than did several members of the blogopshere take Ms. Foley to task for the remarks, remarks which she has since attempted to “clarify” and “contextualize” but in no way retract. (See the last of the above links for a full round-up.)

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December 18, 2005

Sand and Deliver

aquarius.jpg As many of my regular readers know, I am teaching this year in the United Arab Emirates, at the American University of Sharjah, just outside of Dubai. One topic which gets frequently discussed around the water cooler is the state of education in the Emirates and Gulf States, in particular, and the Arab world, more generally. But we are not the only ones talking about it. So are high government officials and the local English-language media.

For the most part I am convinced as to the sincerity of all parties in this debate and am impressed by the apparent willingness to uncover root causes and talk solutions rather than point fingers and apportion blame. Here, for example, is a remarkably candid assessment by Sheikh Nahyan, UAE Minister of Education, of the country's educational failing and a clearly articulated strategy for preparing secondary students for higher education, whether here and abroad:

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December 16, 2005

Corporate Poetry

corppoet2.gif "Corporate Poetry?" I can hear you puzzling, bemusedly. Yes, I know full well that for some, perhaps many, the words "corporate" and "poetry" are a contradiction in terms, are words that should not be uttered in the same breath, are, when taken together, an oxymoron on the scale of jumbo shrimp. But now I ask you, "Please hear me out."

To be sure, there is much about life in modern corporations that would seem to be the very antithesis of all that we associate with poetry, in particular, and art more generally. Business-speak, i.e. phrases like best practices, business process reengineering, downsizing, total quality management, efficient consumer response, and dotcom, as well as a bewildering array of acronymns, rightly strike many as euphemism, mixed metaphor, and verbal slight of hand. Modern business jargon is so anti-septic and its imperatives so technocratic that it rightly lends the impression of having been pieced together by a standing committee rather than having sprung forth fully-formed from the minds of inspired employees.

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December 15, 2005

Another Best Selling Apple Product

apple.jpg The last few years have seen an endless stream of glowing reports on the success of Apple Computer's foray into the music industry. Products like the ipod have become both ubiquitous and emblematic of the perpetual-innovation machine that Apple appears to be- at least under Steve Jobs. Such unique and stylish products have also provided Apple with tremendous leverage over its value chain, allowing it even to win a protracted battle with retail behemoth Wal-Mart over the price at which ipods would be sold.

Word comes today by way of an article in the Washington Post of another kind of "Apple" product being developed in Japan, one that is also satisfying consumers appetites and surpassing sales expectations. It is not another high-tech, highly-original kind of product, however. Rather it' s the original sin kind, the kind that grows on trees and that is becoming increasingly specialized, niche-marketed and, most importantly, highly profitable:

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December 14, 2005

Getting Stoneciphered

My first job after completing my undergraduate was to work as Electrical Engineer at the Boeing Company in Seattle, the city where I spent my childhood. And although I left the employ of the Boeing Company almost 15 years ago, I still relish the chance to read news about the company and revel when its good. The last few years have not given me much to cheer about.

First, there was the departure of the company's corporate headquarters from Seattle, the city of its founding, to Chicago. Then, there was the execrable performance of former CEO Phil Condit. Profits and the stock price plummeted while he was at the helm and the Board of Directors waited too long to let him go.

As if that weren't enough, there was also a major procurement scandal, where then-CFO Mike Sears secretly negotiated to hire an Air Force procurement officer, a Ms. Darleen Druyn- while she was still negotiating the sale of 100 Boeing 767's to the Air Force. Airbus, the European consortium and Boeing rival, is frequently accused on this kind thing -and more- but in the US it's a federal offense. No surprise, then, that Mr. Sears got sentenced to four months of federal time and a $250K fine. Ms. Druyn got 16 months- four times as much as Martha Stewart with about 1/10 the publicity.

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(Get Yourself a Pair of) Cheap Sunglasses

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Two things are interesting about Business Pundit's recent post on those ubiquitous, full-page, free sunglasses magazine inserts. The first is that its as rare as it is refreshing to see a smart person admit that there is something they don't know, especially when it is in their area of expertise. The second interesting thing is the question itself. Here's how Rob worded it:
I open up a web browser and search for free sunglasses and I find lots of sites offering them. Why? What am I missing about this business model? Some of these sites claim that they have overstock sunglasses that they would rather give away than pay to destroy. But I keep thinking that if I was a sunglass manufacturer, and year after year I was overproducing sunglasses that I had to give away for free, I would cut back on production. My best guess is that either: 1. Sunglasses really are dirt cheap to make. or 2. Once you get your free sunglasses you get a bunch of other junk mail. Does anyone see something I'm missing, or know anything about this strange business model?

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December 13, 2005

The Wages of Socialism & Social Democracy


Acording to Hans-Werner Sinn, Director of the Ifo Institute for Economic Research in Munich, Germany, the country that gave the world Socialism and the modern European welfare state, still has yet to come to grips with "Anglo-Saxon capitalism." As he so clearly spells out, the failure to do so is increasingly costly:
In the postwar period, Germany’s economic miracle calmed skeptics of capitalism. Starting with extremely low wages and an underdeveloped currency, German workers succeeded in competing against the world. Wages rose rapidly and most Germans experienced growing prosperity. Ludwig Erhard’s liberal economic approach worked and the socialist ideas found in the party programs of the Social Democrats and Christian Democrats were forgotten.

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December 12, 2005

Where Would Jesus Shop?

If you seek a five forces analysis of Wal-Mart, please try this page. Where would Jesus shop? Well, that's not exactly the question that is asked in the latest WakeUpWalMart ad targeting Wal-Mart. It is, however, the one that is clearly implied. Here's how the Marcus Kabel of the AP describes the ad:
Where would Jesus shop? According to union-backed critics of Wal-Mart Stores Inc., not at the world's largest retailer. WakeUpWalMart.com on Thursday unveiled a religious-themed campaign Thursday asking shoppers whether God wants them to buy things from the Bentonville, Ark.-based company.

The group, funded by the United Food and Commercial Workers union, launched a TV ad and released a letter signed by 65 clergy members and religious figures. The group says Wal-Mart's policy over wages, health benefits and other issues harm families and communities.

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December 9, 2005

Wal-Mart Roundup, the Shanghai Greeters Edition

If you seek a five forces analysis of Wal-Mart, please try this page. shanghaigreeters.jpg In my last roundup I took note of some poll numbers about Wal-Mart commissioned by the anti-Wal-Mart group, WakeUpWalMart (WUWM). I accused Zogby of "jumping the shark." I did so not because of any particular flaw in his methodology or for his recent string of bad predictions but because of his apparent motives. >I did so because there was no way I could see that a poll undertaken at the behest of a group so steadfastly opposed to Wal-Mart could possibly be objective. The poll results so favored the positions that WUWM has advocated for the last several months and dove-tailed so nicely with the goals cited on their website, that is hard to imagine that this end was not known from the outset. But given that I had no data or evidence to support this claim, I kept my powder dry and limited my commentary and analysis to the results of the surveys themselves.

Today brings two new pieces of information about the group that commissioned the poll and the pollster who conducted it. First, when visiting the site of WakeUpWalMart today I took a closer look at it, particularly the "About" page. Here's are some excerpts:

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December 8, 2005

Soldiers in Pinstripe Suits?

Wretchard of the Belmont Club has recently made the following remarks about the long-term impact of Operation Iraqi Freedom (OIF):
Whether OIF has wrenched events in the Middle East from their old tracks and put them on a better route remains to be seen. What is less debateable is that OIF has subtly changed America. The Armed Forces have acquired capabilities they never had before. Bill Roggio in Patrolling Haqlaniyah describes three-tour veterans who can talk politics with Iraqis. For many individual Americans Iraq is now something less than home and something more than a foreign country.
I predict that many of our soldiers will return for fourth and fifth and sixth tours of duty- only duty of another kind. One day Iraq will be ready, willing, and able to do business. And were I running a business instead of blogging about it, these former soldiers would high on my list of people to hire. After all, they have an understanding of the people, the language, the region, and the political landscape. They know much about leadership, strategy, logistics, organization design, planning, and the marshalling of resources and capabilities to meet clearly-defined objectives. In short, they are ideally suited to help Iraqi one day erect the other pillar of a free society- the free enterprise system. And though that day has yet to dawn, preparations are quietly underway.

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Comment on Belmont's "Baghdad County"

In Baghdad County, Wretchard wonders about the effect that Operation Iraqi Freedom has had on America, specifically the capabilities of the veterans of its Armed Services:

Whether OIF has wrenched events in the Middle East from their old tracks and put them on a better route remains to be seen. What is less debateable is that OIF has subtly changed America. The Armed Forces have acquired capabilities they never had before. Bill Roggio in Patrolling Haqlaniyah describes three-tour veterans who can talk politics with Iraqis. For many individual Americans Iraq is now something less than home and something more than a foreign country. For America as a whole, one thing that no politician will dispute in 2008 is that aside from being a European and Pacific power -- which it has been since the end of the Second World War -- the US is now a part of the strategic landscape of the Middle East and Central Asia.

I remarked:

I predict that many of these men and women will return for fourth and fifth and sixth tours of duty- only duty of another kind. One day Iraq will be ready, willing, and able to do business. And were I running a business instead of blogging about it, these former soldiers would high on my list of people to hire. After all, they have an understanding of the people, the language, the region, and the political landscape. They know much about leadership, strategy, logistics, organization design, planning, and the marshalling of resources and capabilities to meet clearly-defined objectives. In short, they are ideally suited to help Iraqi one day erect the other pillar of a free society- the free enterprise system. And though that day has yet to dawn, preparations are quietly underway.

The New Shape of Business in the Emerging Markets

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Prof Edwin Locke, writing in Capitalism Magazine, notes that the three most oft-repeated claims made by anti-capitalists and anti-globalists are that multi-national corporations:

1) are becoming too powerful and threaten the sovereignty of smaller, developing, and emerging-market nations

2) exploit workers in said nations by paying lower wages than they would pay in their home countries; and

3) destroy the environments of the same

Via the Social Science Research Network comes a new paper by professor Paul Bracken of the Yale School of Management that addresses the first of these three claims head on. The paper is entitled "Big Business and the Golden Straightjacket . In it, Bracken argues that the days where Western multinationals were "unchallenged suppliers of technology and know how to launch the emerging market economies on their path to capitalism" are nearing and end. But it is not anti-capitalist policies that are bringing about this state of affairs. Rather, its competitive and nationalistic forces. Bracken continues:

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December 7, 2005

Wal-Mart Roundup, the Wal-Martians Edition

If you seek a five forces analysis of Wal-Mart, please try this page.
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Blogs

Jim Gilliam from Huffington Post accuses the Wal-Mart war room of trying to "Swiftboat" the anti-Wal-Mart documentary, the High Price of Low Cost.
From the moment Wal-Mart saw the trailer they went into full attack mode complete with a war room, political operatives and spin doctors. They may have an unlimited bank account (well, actually they OWN the bank), but this film will not be swift-boated.


By invoking the highly controversial (and successful) "swift-boat" ads from the fall 2004 election, Gilliam, like so many other Wal-Mart critics, has interjected partisan politcs into an essentially non-partisan, apolitical, economic issue . While I am not accusing him of reading off of any other critics' talking points, I do find interesting how so many Wal-Mart critics cast the matter in this light. Among other things, this suggests to me that that many critics are either unconcerned with the underlying economic issues and/or unable to evaluate them on the merits.

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December 6, 2005

Airing Your Pajamas in Public

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No sooner I started reading the Pajamas Media Blogjam, "What should Pajamas Media be?", than did come to mind the old adage about not airing one's laundry in public. But like so many of my first impressions, this one proved partial. As I read more closely I realized that I was witnessing something rather rare and remarkable- a discussion, both open and in the open, about the core strategy and mission of a new, high-tech enterprise. I concluded that, yes, Pajamas Media was airing its strategic laundry in public but, also concluded that, no, this was not a bad thing. Here's why.

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Carnival of Music #23

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Welcome to the 23rd installment of the Carnival of Music. While The Business of America is Business is not a music blog, it is a blog written by a music lover and music industry watcher. This week's selections include music reviews, commentary, analysis and personal reflections. It is my distinct pleasure to share them with you.

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