Michelle Y.

Carmen

BSA 4-1

Reaction Paper

The speaker of the forum is Michael Porter, father of modern strategy. He talks

about the competitiveness in India. He says that there are some questions needed to

have an answer. This questions are (1) What leads to prosperity? (2) What is the

fundamental cause of prosperity? (3) What is competitiveness and the set of steps and

choices necessary to move us in the direction of success?

To build the prosperity is a marathon, not a short race. It takes decade to transform

a country’s potential prosperity and to spread that prosperity broadly across the citizens.

Citizens should have shared understanding of what creates prosperity. To have it, the

beginning is important. Think strategically about it to succeed and think beyond a single

government. The problem about competitiveness and prosperity is, everybody has its own

idea of what it looks like but no common understanding. So, most of all need to have a

shared understanding of what success looks like. To spread prosperity more broadly

across the citizens is to increase the competitiveness. Competitiveness happens when

we can do things at the same time. It is needed to create an environment where firms

compete successfully in markets. The firms need to be competitive and the average

citizen needs to improve the standard of living. If firms can’t compete then nothing good

can happen. To consider the business and society is to win the both. In order to create

this unique ability for both citizens and business to win, we have to be productive. This is

number 1 central challenge of any economy that wants to be competitive. To earn

prosperity and be wealthy, be productive. This is the iron rule of global economy and need

to have a workforce participation. There are three levels to consider: inherit endowment,

macroeconomics circumstance and microeconomics competitiveness. It is more

important for competitiveness is not national but regional. To do competitiveness, do it

decentralize not centrally. It needs to get each region thinking about its unique situation

so it will raise the bar. Work as one on every little thing not separately. The strategies

need to be align in the priorities. Because for a country to be prosperous, business has

to be successful.