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photo by Donald Chan/Reuters, from the article

From Charles Duhigg and Keith Bradsher in the New York Times:

When Barack Obama joined Silicon Valley’s top luminaries for dinner in California last February, each guest was asked to come with a question for the president.

But as Steven P. Jobs of Apple spoke, President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States?

…

Why can’t that work come home? Mr. Obama asked.

Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest.

The president’s question touched upon a central conviction at Apple. It isn’t just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products.

Apple’s manufacturing decisions exemplify the altered circumstances of high-technology commodity production in the contemporary world. The article describes the situation, but not the solution for regions and nations wishing to insure stable and remunerative work for their people. Note especially the conditions of daily life for product assembly workers sketched out in the article. The industrial revolution appears to be repeating itself yet again with similarities of both triumph and tragedy.

To read the article…

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From The Economist…

These are thrilling days for behavioural research. Every week seems to yield a new discovery about how bad people are at making decisions. Humans, it turns out, are impressionable, emotional and irrational. We buy things we don’t need, often at arbitrary prices and for silly reasons. Studies show that when a store plays soothing music, shoppers will linger for longer and often spend more. If customers are in a good mood, they are more susceptible to persuasion. We believe price tends to indicate the value of things, not the other way around. And many people will squander valuable time to get something free.

The sudden ubiquity of this research has rendered Homo economicus a straw man. Yet such observations are not new. Analysts have been studying modern man’s dumb instincts for ages. Sigmund Freud argued that people are governed by irrational, unconscious urges over a century ago. And in America in the 1930s another Viennese psychologist named Ernest Dichter spun this insight into a million-dollar business. His genius was in seeing the opportunity that irrational buying offered for smart selling. More…

(Credit: Reuters)

From The Economist…

Young mums shopping in the Copley Mall in downtown Boston last month found themselves being questioned about their use of soap by students from Harvard Business School. The students were not doing odd jobs to earn beer money. They were preparing to help a firm in Brazil launch an antibacterial cleanser.

Fieldwork—ie, going out and talking to people—is a big change for HBS. Its students used to sit in a classroom and discuss case studies written by professors. Now they may also work in a developing country and launch a start-up. “Learning by doing” will become the norm, if a radical overhaul of the MBA curriculum succeeds.

The 900 students arriving in Boston this summer for their two-year course were told they would be guinea pigs. The new practical addition to HBS’s curriculum is known as “FIELD” (Field Immersion Experiences for Leadership Development). Not all the staff and students are overjoyed to be experimented on. But the man responsible, Nitin Nohria, who became dean of HBS in July 2010, says that “if it works, the FIELD method could become an equal partner to the case method.” More…