What Business Should Do To Restore US Competitiveness, an article in Fortune Magazine that is based on their perspective of how to restore business competiveness in today’s weak economy. The debate is whether it’s up to the law makers or business leaders to shoulder the responsibility. One camp say’s it’s up to the government; another camp says it’s up the leaders of corporate America who are viewed as “Benedict Arnold CEO’s” when they outsource American jobs.
There is a third perspective that focuses on the efficiency on productivity on how companies are managed. Gary Pisano coins the term, “the commons” which refers to the business environment in which a community operates from. The article includes a three step plan with proven techniques implemented by businesses in their local communities. The strategic plan is based on three steps: Pursue Productivity, Build the Commons and Business, and finally a rein in Self-Interest. A well ran business is obviously key to its success.
The competitive edge is what sets it aside from the rest. A well given example is La-Z-Boy who gain an edge over a low-wage Asian furniture company by offering incentives to customers through fast delivery and customization; this is also due to the fact that they are a US company at home which has allowed them to offer. This is a clear example of what the first step; Pursue Productivity is by utilizing American strengths. Building the commons is the next step in restoring competitiveness.
Many companies overlook the potential impact of success in their communities. Instead of taking a passive approach in drawing employees from local high schools, vocational schools, and universities, companies should and are starting to be more proactive in net working closely with these institutions. Upgrading supporting industries decreases costs and increases profit margins. Working together will improve overall region’s environment. Lastly, business can improve US competitiveness by putting a rein on self-interest that weakens the commons.
When companies solicit the government for special permits such as tax breaks, they warp competition. When companies take such actions, others think they must do the same, resulting in a higher prices and more complex business. Companies must refrain in these activities in order to have a more business friendly environment. By a business’ implementing the stated steps and advocating policies that improve Business’ environment, thus restoring competitiveness and benefiting the economy.