Designed in U.S. Made in China

American businesses have a history of designing products in America, but then sending the designs to companies abroad, especially to third world countries, to be assembled. Why would a first world country, with the capacity for better materials and production processes, outsource the building of their products to lesser developed nations? The answer is simple: cost.

One of the most common countries for assembling American-designed products is China. In 2011, there was an article in Forbes titled “Buying from China is in Fact Buying American.” In this article, the author talks about his friend Johnny, a middle class American who owns a couple of small restaurants. 

Most of the cooking utensils and furniture in Johnny’s restaurants were made in China. Like most middle-class Americans, he shopped at stores that sold primarily Chinese-made merchandise. Johnny’s reason for using these Chinese-assembled products: they were cheap and “good-enough.”

The article went on to talk about different American companies that sell products that are made in China (Apple, Dell, Gap, Hasbro, Nike, etc.) and how, according to a San Francisco Federal Reserve study, an average of 55% of the value of American imported goods from China goes to American companies and workers. 

This is compared to 36% for American goods in general. Not only can companies that outsource to China sell their goods at a cheaper price, but they actually make a lot more money in the process.

„You’re gonna like the way you look”

In a competitive marketplace, service is how companies differentiate themselves from other companies selling similar products, especially if the products are of comparable quality (i.e. Toyota vs. Hyundai; Ford vs. Chevy). Americans expect good service after they have bought a product.

One service-related tagline is the Men’s Warehouse slogan: „You’re gonna like the way you look, I guarantee it.“ If there is a problem with the products customers purchase, Men’s Warehouse promises to take care of the problem to ensure they are happy.

Another distinctly American retailer is L.L. Bean, which grants a lifetime guarantee on everything it sells. If the customer ever finds the product to be unsatisfactory, it can be returned for a refund or replacement.

Americans also expect customer service to be accessible, friendly, and informative. Many companies have 24/7 call centers with toll free telephone numbers, as well as extensive websites with Frequently Asked Questions and other helpful troubleshooting information. These websites usually contain contact fields where customers can submit questions; American customers expect rapid responses to queries posed on a customer site, usually within 1-2 days.

Service: The occupation or function of serving; employment as a servant; contribution to the welfare of others; a helpful act; useful labor that does not produce a tangible commodity; a facility providing maintenance and repair. From Latin servitium: condition of a slave, body of slaves, from servus slave.

QIC Awards

Every year the American National Asphalt Pavement Association (NAPA) grants Quality in Construction (QIC) awards to any asphalt producer, paving contractor, and/or road owner in the United States who completes a project “that deliver(s) on the promise of high performance and drivability.“ 

In 2014, 205 projects were honored with a QIC Award, and of those 90 projects were singled out for their use for sustainable construction practices (such as using recycled materials). Some of the 2014 winning projects include:

Golden Gate Constructors of San Jose, California for work on the San Francisco International Airport. The company had to construct new taxiways to allow for installation of an engineered material arrestor system. Crews worked round the clock to produce a high quality pavement under budget and 30 days ahead of schedule, allowing an early reopening of the runways.

Everett Dykes Grassing Co. Inc. of Cochran, Georgia for work on SR 27 in Appling County. The project included milling, resurfacing, and shoulder rehabilitation, and through the use of careful paving techniques and careful quality control, the company produced a pavement that was 58 percent smoother than the previous road.

J.H. Rudolph & Co. Inc. of Evansville, Indiana for work on Evansville Regional Airport, which included rehabilitation, reconstruction and new construction work. Paving with multiple laydown techniques and employing strict quality control, J. H. Rudolph & Co. achieved a smooth pavement seven days ahead of schedule.

Earle Asphalt Co. of Farmingdale, New Jersey for work on SH 33 in Monmouth County. The project required the mill and overlay of both westbound and eastbound roads to achieve a 36.5 percent improvement in ride quality. Paving crews worked at night to limit traffic disruptions.

POSs

The book American Gods by Neil Gaiman, follows the adventures of a man called Shadow as he travels across America. At one point during his voyage, he finds himself stranded in the middle of the Wisconsin, attempting to rent or buy a car.

As it turns out, there is nowhere nearby for him to rent, so he has to settle for buying. In an attempt to find someone willing to sell him a car, he tries talking to a woman manning the till at a gas station:

“Car died a few miles down the road. It was a pieceashit if you’ll pardon my language,“ said Shadow.

‘Pee-Oh-Esses,’ she said. ‘Yup. That’s what my brother-in-law calls ’em. He buys and sells cars in a small way. He’ll call me up, say Mattie, I just sold another Pee-Oh-Ess. Say, maybe he’d be interested in your old car. For scrap or something.’”

Eventually, Shadow meets the brother-in-law, and although he has plenty of money with him, at this point in the story he only needs to drive about 500 miles, so he tries to buy the cheapest car that could take him the full way. 

“The piece of shit he chose was a 1983 Chevy Nova, which he bought, with a full tank of gas, for four hundred and fifty dollars. It had almost a quarter of a million miles on the clock, and smelled faintly of bourbon, tobacco, and more strongly of something that might well have been bananas. He couldn’t tell what color it was, under the dirt and the snow. . . The piece of shit had a radio, but nothing happened when he turned it on.”

Nevertheless, despite the poor performance of the vehicle, Shadow was content with his purchase because it was cheap.

Navel-gazing

Useless or excessive self-contemplation; self-absorption, self-centeredness, self-concern, self-interest, self-involvement, self-preoccupation, self-regard. Navel-gazing.

Too much self. Too little other. Self being the process, how the work is done. Other being those who should benefit from the work to be done, the output, the product or service.

The deeper Germans discuss and debate how the work is done – process – the more their American colleagues fear a turn from the outward to the inward. The link is lost between process (how the work is done) and the results.

Americans often have the sense that their German counterparts believe that process can solve any problem, address any challenge, even those which do not lend themselves to process. Leadership. Decision making. Business relationships. Process works with the measurable, the quantifiable, but less so to the immeasurable, the unquantifiable.

For Americans, process is a tool. Apply where applicable.

“Have it your way!”

“The customer is always right” is a very common phrase in American business. It was first made popular in the early 20th century when it was used as the slogan for Marshall Field’s Department Store in Chicago and London’s Selfridges Store (founded by American Harry Gordon Selfridge).

Both of these stores became extremely profitable, primarily because they had a reputation for good customer service. As a result, many American businesses have attempted to model their processes on the principle that “the customer is always right.”

In 1911, in an attempt to promote a local business, the Kansas City Star newspaper included an article about the business owner George E. Scott, saying “Scott has done in the country what Marshall Field did in Chicago, Wannamaker did in New York and Selfridge in London. In his store he follows the Field rule and assumes that the customer is always right.”

Many American companies have slogans that show that they care more about customer service than anything else. Examples:

Burger King – “Have it Your Way”

UPS – “What Can Brown Do For You?”

United States Postal Service – “We Deliver for You”

Mounds and Almond Joy – “Sometimes You Feel Like a Nut, Sometimes You Don’t”

Skinning cats and Westward Ho!

There is a popular American phrase which states “there is more than one way to skin a cat.” This phrase is used to express that there are multiple processes which produce the same result, and that as long as the result is achieved, the approach taken does not matter how. 

It was first used in 1840 by American humorist Seba Smith in The Money Diggers, in which Smith wrote: “There are more ways than one to skin a cat, so are there more ways than one of digging for money.”

This phrase was (and still is) so popular that it inspired many variations. In 1855, Charles Kingsley’s Westward Ho! used the phrase “There are more ways of killing a cat than choking it with cream.” Many other popular variations include killing cats (and sometimes dogs) by hanging, choking with butter, and choking with pudding.

The phrase has also appeared in many American books, including Mark Twain’s 1889 book A Connecticut Yankee in King Arthur’s Court, in which the author wrote “she was wise, subtle, and knew more than one way to skin a cat.”

Much unease

Americans become very uneasy whenever they see their German colleagues address processes with their characteristic intensity. German process discipline is almost synonymous with rigidity.

Another, more careful, look reveals, however, a contradiction. On the one side, German processes are generic, theoretical, complex and seemingly not fully focused on the goal. On the other, Americans have the sense that Germans expect processes to be followed by the letter. They ask themselves how they are supposed to follow a process which is hardly described?

German procedures are also generic and not spelled out. The Germans take this as a signal to decide independently, to make their own judgement, in a given situation. Instead of requesting input or permission from their manager, they either decide themselves or discuss with an experienced colleague how to handle a given procedure within the context of its process.

To the Americans this represents a severe breakdown in process discipline. They have little understanding, thus tolerance, for processes or procedures which allow for so much independent action when that action can lead to mistakes, errors, problems, to an domino effect.

Purpose of processes

Procedures, policies, guidelines, compliance, and other types of structure. In the end, however, most business cultures would agree that the purpose of processes and procedures is to structure how the work should be done, and allow for repeatability, consistency, and quality control.

Processes as a success factor: If asked which are the key success factors in any enterprise most Americans would name: market/customer orientation, innovation, speed, price, service. Seldom, if ever, would they cite internal business processes.

If American customers were asked which factors are key to them when choosing a product or service they would name, among others, value and service. Value is the relationship between quality and price. It would never occur to them to say the internal business processes of the company whose product or service they are purchasing (or workmanship).

In other words, although American companies have many processes and procedures, Americans are not inclined to believe that these will ensure success.

Pet Rocks

In 1975, Gary Dahl, a freelance copywriter, bought several smooth Mexican beach stones and began selling them in the United States as “pet rocks.”  But what was initially meant as a joke soon became what Newsweek called “one of the most ridiculously successful marketing schemes ever.”

Within a few months, Dahl had sold over 1.5 million rocks. He was a guest on The Tonight Show, and at one point Gary was selling approximately 6,000 rocks per day.

The reason for his success was largely due to marketing: every pet rock came in a carrying case (with air holes), nestled on a bed of straw. Additionally, the purchase of a pet rock also bought its new owner a manual on the care, feeding, and house training of their new pet. Other factors, especially processes, were of very little importance in driving this pet trend.

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