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Advances Newsletter, Q4 2016
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Vol. 6, #7, Q4 2016, No. 61
Midea’s Miracle Year
2016 remembered
ADVANCES
Advances Newsletter, Q4 2016
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ADVANCES Newsletter
Contents
Midea Advances Newsletter is published monthly
by the International Strategy Department of
Midea Group. We welcome all comments,
suggestions and contribution of articles, as well as
requests for subscription to our newsletter. You
can reach us by email at: [email protected]
Address:
ADVANCES, International Strategy Department
Midea HQ
No. 6 Midea Road
Beijiao, Shunde, Foshan, Guangdong
P.R.C. 528311
Tel: +86-757-2360 4714
Web: www.midea.com
Quote for the
Quarter:
“Money was never a
big motivation for
me, except as a way
to keep score.” -
Donald Trump
NEWSLINE
Midea, Clivet Complete
Share Transfer PAGE 4
What a Year! PAGE 3
Listed by Thompson Reuters
as Top Innovator PAGE 3
Sponsor of FINA Games PAGE 6
Fellow of UK Royal Academy
of Engineering PAGE 5
www.midea.com
USA: From Jefferson to Jazz
Music PAGE 16
Japanese Quality
Certification Page 13
Carrier Midea India Partners
with Kohinoor Technical
Institute PAGE 10
JV Manager Presented with
Award by Belarus Deputy
Prime Minister PAGE 9
$396 Million E-Commerce
Revenue in One Day PAGE 11
1st Dubai Brand Showroom PAGE 11
Technology Unites Factories
from 4 Corners of the Earth Page 15
Olympics Happy Couple
Visit HQ PAGE 7
CAC Training in Saudi Arabia PAGE 12
FUSION
Partnership with DHL in
Indonesia PAGE 8
Air Con Installed at One of
Asia’s Largest Real Estate
Projects PAGE 13
CAC Shines at Georgia
Exhibition Page 14
Q3 Report: Profit up 16%
Year-on-Year Page 14
Advances Newsletter, Q4 2016
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What a Year!
By Kevin McGeary
T he Chicago Cubs won the World Series for the first
time in 108 years, Leicester City won the premier league after
being built on a fraction of the budget of their competitors, and
a few significant things may have happened in international poli-
tics. Just about everything that happened defied expert predic-
tions.
2016 was quite a year and Midea had a few momentous
occasions of its own. Here are a few:
Fortune 500
Midea Group entered the Fortune Global 500 for the first
time on July 20. Midea debuted at 481st after a strong 2015 that
saw the company achieve US$22.17 billion revenue, and total
profit of US$2.02 billion. The group also rose to 402 on the
Forbes 2000 list.
Kuka
Midea announced late December it secured approval for its
bid to take over German robotics firm Kuka. The group will
promote the robot and automation technology around the
world.
Midea
announced
the bid on
June 16, of-
fering to pay
115 euros
(around
US$120) per
share. It will
take 94.55 percent of Kuka after the bid is settled. Kuka, found-
ed in 1898 and based in Augsburg, has a workforce of 12,000
and its 2015 revenue was over US$3 billion.
Toshiba
Toshiba and Midea entered into a Definitive Agreement to
transfer an 80.1% stake in Toshiba Lifestyle Products & Ser-
vices Corporation (“TLSC”). The transaction price for the
stake was determined at JPY51.4 billion (US$500 million).
First announced March 30, the deal officially went through
three months later. Under the conditions, Midea will be licensed
to use the Toshiba brand worldwide for 40 years.
NEWSLINE
Listed by Thompson Reuters as Top
Innovator By Midea
Last year Midea entered the Fortune Global 500. This is of
course a big deal, however, even more
important than being huge is being
innovative. Of the original Fortune
500, published in 1955, 88 per cent
are no longer there. It is companies
that consistently innovate that last the
course. Midea was named by Clarivate
Analytics December 8 as one of Chi-
na's 100 most innovate companies, joining Huawei, Alibaba and
Tencent. Clarivate, formerly the IP & Science
business of Thomson Reuters, recognizes excellence in innova-
tion, technology, and intellectual proper-
ty.
Clarivate Analytics provides trusted in-
sights and analytics to customers around
the world, enabling them to discover,
protect and commercialize new ideas,
faster.
The owners, curators and analysts of the
most complete and authoritative knowledge.
Advances Newsletter, Q4 2016
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Midea, Clivet Complete Share
Transfer Press Release
O n Monday, October 31st, at Clivet’s headquarter in
Feltre (Belluno) took place the ceremony of completion of the
acquisition of 80% of Clivet S.p.A., Clivet España S.A. and relat-
ed real estate assets by Midea Group Co., Ltd (SZSE: 000333,
“Midea”).
“Today marks a major step forward towards an industrial
partnership between Midea and Clivet” said Mr. Paul Fang,
Chairman and President of Midea, “We look forward to leverag-
ing on our complementary resources and capabilities to fully
realize the potential of the partnership. We believe our continu-
ous investment in the brand, technology, marketing and people
and unwavering commitment to product quality will enable us to
serve our customers better and create more value for the society.
Eric Tian, President of Midea Commercial Air Condition-
ing Division, commented: "Through this win-win strategic alli-
ance, Midea will
further reinforce
its presence on
the European
markets and ex-
plore growth
opportunities
together with
Clivet.”
Clivet Gen-
eral Manager
Stefano Bellò also
commented.
"Clivet is proud
to become a Eu-
ropean center of
excellence for innovative solutions of Midea Group. Through
joint efforts with Midea Commercial Air Conditioning Division
we will have a stronger impact on changing the way Comfort
and Heat Pump systems are traditionally designed, winning the
sustainability challenges the world is facing for the future. This
industrial alliance, in fact, will speed up the diffusion of our
principles of energy saving, air quality and sustainable comfort.”
Stefano Bellò concluded: “As far as our territory is con-
cerned, this strategic alliance lays the foundation for a develop-
ment of our production site with the opportunity to create new
jobs”.
As previously announced, Midea had entered into a Defin-
itive Agreement (“DA”) on June 21, 2016 to acquire 80% stake
of Clivet S.p.A., Clivet España S.A. and related real estate assets.
As of October 31, 2016, all the condition precedents of the DA
have been satisfied and the relevant regulatory approvals have
been obtained.
About Clivet
Clivet is a European leading company based in Italy that
since 1989 is designing, producing and distributing systems for
cooling, heating, air ventilation and air purification for residen-
tial, commercial and industrial markets.
The Company has an operational area of 50,000 m2 locat-
ed in Feltre
(Italy) and com-
mercial offices
and internation-
al subsidiaries in
6 different
countries: UK,
Spain, Germany,
United Arab
Emirates, Russia
and India. The
company em-
ploys over 700
people. Clivet's
research and
development
area includes a team of over 50 designers.
Clivet, knowing that each building has specific characteris-
tics related to its use, has gone beyond the concept of the prod-
uct and has developed complete and advanced heat pump sys-
tems specialized for the different applications, ensuring high
quality comfort, optimizing design and installation times, grant-
ing great efficiency and respect for the environment.
To find out more about Clivet, please visit http://
www.clivet.com/
NEWSLINE
Advances Newsletter, Q4 2016
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Fellow of UK Royal Academy of Engineering
By Advances
D r. Zhu Ziqiang of Midea’s Motor Research & De-
velopment Center was elected a fellow of The Royal Academy
of Engineering in the United Kingdom September 8. The acco-
lade is considered one of the highest honours in the engineering
profes-
sion.
Founded
in 1976,
the Royal
Academy
of Engi-
neering
has a
total of
1550
fellows,
and to
become
one re-
quires a
comprehensive 2-year vetting process by existing fellows. Engi-
neers around the world dream of becoming one of the maxi-
mum of 60 fellows that can be added every year.
Born in 1962 in Ningbo in southeastern China’s Zhejiang
Province, Zhu Ziqiang entered Zhejiang University’s Electrical
Engineering Department in 1977, completing his Bachelor’s in
1981 and his Master’s three years later. In 1991 he completed his
PhD at Sheffield University in the United Kingdom.
He achieved tenure at Sheffield University in 2000 after
taking part in research projects for companies including
Rolls-Royce, Siemens, Toyota, and Nissan. During this
time he was responsible for 53 patent applications and
wrote over 900 peer-reviewed papers, 290 of which were
published in international journals. He has also supervised
over 70 PhD candidates.
At Midea, projects he has been involved in include
the Aipu Lan Award-winning smart drum washing ma-
chine motor and his work has also been garlanded with the
China Appliance Technology Progress Award. His pres-
ence as a Midea employee augurs well for the company’s
ability to continue bringing world class products to the consum-
er.
NEWSLINE
Dr. Zhuziqiang
Dr. Zhu with Group CEO Paul Fang
Advances Newsletter, Q4 2016
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Sponsor of FINA Games
Press Release
F orty-six gold medals were won in Windsor, Canada at
the FINA Aquatics World Championships. Midea, as a proud
official sponsor was right in the middle of the actions and the
Midea brand was extremely visible throughout.
Midea, the world’s #1 appliances producer, partnered with
FINA to showcase its comprehensive range of home appliances.
The company packed that message into a video called: “A Midea
Day” that spectators could see on the big screen in the arena.
“A Midea Day”
The video tells the story about how Midea products from
all categories accompany the consumer 24/7. It shows how the
day starts at 7:22am with a hot shower from a Midea Water
Heater and every half-hour a different Midea product is used by
millions of people in offices and at home to guarantee “you al-
ways feel at home”.
Global Brand Launch from Indonesia to Canada
Midea commenced its global brand positioning activities in
September with a major press conference in Jakarta, Indonesia.
It then shared several messages with the world – the new
slogan: “make yourself at home” and its news status as
the “world’s #1 major appliances producer”. In Canada in
December, there was more much-welcome brand expo-
sure in FINA’s official magazine.
The next generation
Midea is heavily investing
in the next generation at home
and abroad. In Windsor the
company gave 120 free tickets
for the final races every night to
local schools and swim clubs.
“What a spectacular event
here in Windsor”, said Brando
Brandstaeter, Head of Global
Brand & Communication at
Midea HQ. Having been myself a swimmer, it is not only a priv-
ilege but also an amazing experience to work for a company like
Midea, especially given its strong support for sports like swim-
ming. At Midea, we are looking forward to working together
with FINA on several programs across many countries to edu-
cate young kids to learn how to swim which is a basic survival
skill and we hope that we are paving the way for some young
children to perhaps participate in future FINA Worlds Champi-
onships – beating world records.”
World Records
Midea also proudly sponsored each world record at the
championships. The first one was broken on the first night in
Windsor by the US Women’s 4x50m Medley Team and the
second on Thursday night by South Africa’s Chad Le Clos.
NEWSLINE
Advances Newsletter, Q4 2016
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Olympics Happy Couple Visit HQ
By Advances
T he public marriage proposal of Chinese diver Qin Kai
to teammate and girlfriend of six years He Zi was one of the
stories of the Rio Olympics (she said “yes”). On September 19,
the couple visited Midea Group’s global headquarters to say
hello to the company that has sponsored China’s swimming and
diving team through the most successful period in its history.
Both have eye-wateringly impressive records. Qin Kai won
gold in 3m synchronized diving at Beijing 2008 and London
2012 among many other major achievements. He Zi won gold in
synchronized springboard at London 2012 and has won four
gold medals in World Championships.
Yet what they are most famous for is the image of Qin
getting down on one knee by the swimming pool after an event
at Rio 2016 and He, after wiping a tear away, accepting his pro-
posal. As if to prepare for married life, they attended a Midea
cooking class where they tried out a range of products including
Midea’s IH rice cooker, M-smart microwave and juice maker.
NEWSLINE
In the products showroom
Domestic bliss
Advances Newsletter, Q4 2016
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Partnership with DHL in
Indonesia By Advances
M idea Electronics Indonesia (MEI) and global logis-
tics powerhouse DHL held a grand opening October 6 of the
warehouse from which joint operations will be based. MEI has
outsourced its logistics operations to DHL with the long-term
aims of improving delivery time, providing end-to-end visibility,
and optimizing supply chain network and cost efficiency.
With the launch of MEI’s P100 project, the backend ware-
house and logistics operations have been in need of improve-
ment. A rapid increase in sales and increased brand awareness
mean that MEI needs to work with a professional, trustworthy
and hi-tech partner, and DHL fits this requirement.
DHL has implemented its own standard operating proce-
dures, KPI management, electric forklifts, a warehouse manage-
ment system, and transportation management system. It even
uses drones with WIFI cameras to survey any issues with the
building, such as a leaking roof.
The cooperation with DHL will bring Midea to the next
level in logistics in Indonesia, providing a higher level of satis-
faction to customers.
About DHL
DHL Express is a division of the German logistics compa-
ny Deutsche Post DHL providing international express mail
services. Deutsche Post DHL is the world's largest logistics
company and is a particular leader in sea and air mail.
NEWSLINE
Advances Newsletter, Q4 2016
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JV Manager Presented with Award by
Belarus Deputy Prime Minister By Advances
Y ou Baofeng, General Manager of joint venture Midea
-Gorizont, has been presented with an award for outstanding
management by Belarus First Deputy Prime Minister Vasily
Stanislavovich Matyushevsky. The event was part of a celebra-
tion marking the 75th anniversary of the founding of Horizont,
the Belarusian consumer electronics manufacturer with which
Midea holds the joint venture.
At the awarding ceremony, Vasi-
ly Stanislavovich Matyushevsky said that Midea-Gorizont was
one of the world’s great home appliances joint ventures. He
compared the work of a manager of such an organization to that
of the captain of a football team,
not someone who stands at the
side of the field shouting instruc-
tions, but one who is out there
with his teammates in the heat of
battle.
Since being appointed to
the role in 2014, You Baofeng
has overseen the implementation
of strategy, team-building and
diversification at Midea-Gorizont.
He has also personally organized
a number of philanthropic and
charitable activities to bring his
team together.
In 2014,
Mr. You
achieved prof-
itability at
Midea-
Gorizont. The
following year,
he accom-
plished cumu-
lative profits.
This year began
with the intro-
duction of wa-
ter heaters to
the joint ven-
ture's product
range, a project
that is already
proving successful.
In August, Midea and Horizont between them had a mar-
ket share of 40.8 percent. In microwaves, Midea’s own brand
rose from having a market share of 0 to 10.8 percent in just six
months. In May, the two companies signed an agreement to
manufacture water heaters, over 90 percent of which are for
export, cementing the joint venture's influence in the Eastern
Bloc and beyond.
NEWSLINE
Advances Newsletter, Q4 2016
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Carrier Midea India Partners with Kohinoor
Technical Institute Press Release
C arrier Midea India and Kohinoor Tech-
nical Institute (KTI) signed a memorandum of un-
derstanding (MOU) October 7 to launch vocational
training for air conditioning & refrigeration techni-
cians. India suffers from a severe shortage of HVAC
technicians so it is in the interest of both parties that
KTI uses its capacity to train over 1000 students a
year in Midea’s variable refrigerant flow (VRF) tech-
nology and other relevant specialties.
The MOU signing ceremony at MIG cricket
club Bandra, Mumbai, which was covered by local
and national media, saw the two parties agree to
some major conditions:
Addition of a module on Midea VRF dur-
ing the regular HVAC course
Practical training on Midea VRF
KTI will allow Midea to display its brand in their labs
to increase awareness with trainees
Short-term course to be designed by KTI specially for
Midea’s VRF dealer network
KTI will offer their facility to Midea for any training
to be done for its dealer network
About KTI
Established in 1967, Kohinoor Technical Institute (KTI)
is a pioneer in vocational training for technical courses. It has a
vision to empower the young workforce of India by imparting
skills that are government-approved and industry-ready.
KTI does this by imparting quality technical education focused
on employment and livelihood. Founded by the Honourable
Dr. Manohar Joshi, KTI
started with a single cen-
tre at Dadar in Mumbai,
and has now grown into
a national network of
over 77 centres across 8
Indian states.
The Institute is a training
partner of National Skill
Development Corpora-
tion (NSDC), Govt. of
India. Programs con-
ducted at KTI are NSDC
and Sector Skill Council
(SSC) affiliated.
NEWSLINE
Advances Newsletter, Q4 2016
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1st Dubai Brand Showroom
Via Eros
E ros Group - the sole Middle East distributor of
world-renowned brands, including Samsung, Hitachi, TCL and
Linksys, is showcasing extraordinary solutions of surprisingly
friendly home appliances brand, Midea, on a grander scale at the
Eros Digital Home store in BurJuman Centre, Around 2000 sq.
ft. of space at the
store has been sole-
ly dedicated to the
global brand, giving
consumers a chance
to see Midea’s di-
verse product offer-
ings in the home
appliances segment.
The store was inau-
gurated by Deepak
Babani, CEO, Eros
Group, Niranjan Gid-
wani, Deputy CEO,
Eros Group and So-
phie Shao, Head of
Marketing at Midea
International, Elvis
Wang, General Man-
ager, Midea Middle East, in the presence of senior management
from Midea and Eros Group. Eros Group has an exclusive
partnership with Midea after a deal was signed between both
companies earlier this year, in May. The Home Appliances giant
total revenues in 2015 is over US$21 billion; which is a sign of
the brand’s popularity in the home appliances segment not just
in Asia but across the globe.
NEWSLINE
$396 million E-Commerce Revenue in
One Day By Midea
M idea made US$396 million in E-Commerce sales on
November 11, which has become an E-Commerce bonanza in
China in recent years. Midea was the top appliances brand on
the day, with subsidiary brand LittleSwan ranking tenth.
Midea's residential air conditioners made US$46 million;
kitchen appliances made US$67 million; and washing machines
pulled in US $83
million. Each de-
partment and
product division
pulled its own
weight to maintain
Midea's status as a
leader in E-
Commerce.
Established
in the mid-1990s,
November 11—with
its four uses of the
digit 1 - is known as Single’s Day in China. To mourn (or cele-
brate) single status, consumers are encouraged to spend big
online and companies compete for their dollar. It is of a similar
scale and status to Black Friday in the United States.
Entertaining the troops: Midea Group President Paul Fang takes a selfie with E-Commerce staff
Advances Newsletter, Q4 2016
12
CAC Training in Saudi Arabia
By Advances
M idea Commercial Air Conditioning (CAC) held a
training seminar in Riyadh, Saudi Arabia November 7, gathering
key partners to promote its main products and strengthen coop-
eration.
The event began with a speech from Mr. Jamal, Vice Presi-
dent of CAC's regional distributor, about the market. Other
speeches talked about the selling points and technical points of
core technology such as variable refrigerant flow.
Dan Brown, who oversees Midea's own brand business in
the region, introduced the situation and market share of Midea
CAC in Saudi Arabia, describing the blueprint for future devel-
opment.
To become the global leader in the industry, CAC will
continue providing reliable products and world-class service.
NEWSLINE
Mr. Jamal gives an introductory speech
Regional manager Dan Brown gives a speech.
Guests at the seminar
Advances Newsletter, Q4 2016
13
Air Con Installed at One of Asia's Largest
Real Estate Projects By Advances
F orest City in Johor, Malaysia is the largest internation-
al real estate project of Chinese property developer Country
Garden. It will be built on four man-made islands with an area
of 14 million square meters, over 9 phases in a period of 20
years. As well as being one of the largest real estate development
projects in Asia, it will also be a pioneer of eco-friendly con-
struction.
Within a month, Forest City will have its first duty-free
shopping mall at the Fisherman’s Wharf on Island 1, offering a
wide range of global brands. Midea has installed its variable
refrigerant flow (VRF) products at the offices and hotels in
Fisherman’s Wharf and two water-cooled screw chillers in its
sales office. The total capacity is up to 5,000 kW.
This is the latest in a long line of major international projects
scored by Midea Commercial Air Conditioning for one of the
real estate industry’s most ambitious companies.
NEWSLINE
Japanese Quality Certification
By Midea
M idea was formally awarded No-
vember 3 with certification from the Japanese
Quality Assurance Organization (JQA) to
carry out product safety tests in its own labor-
atories. The JQA - established by the country’s
Ministry of Economy, Trade and Industry in
1957 - is believed to be Japan’s most demand-
ing certification body.
Midea’s Kitchen Appliances Division
(KA) began applying for the certification on November 9 last
year, set up a task force in June this
year, and welcomed inspectors from
JQA to its laboratory from Septem-
ber 5-9 before finally receiving the
certification in late October ahead
of the formal presentation. KA
joins powerhouses of the Japanese
microwave industry Panasonic,
Sharp, and Hitachi in receiving the
certification.
Advances Newsletter, Q4 2016
14
CAC Shines at Georgia Exhibition
By Peck Zhao
A quatherm Tbilisi is Georgia’s only annual trade fair
for heating, energy technology, sustainable energy systems, sani-
tary appliances and installation technology, cooling, air condi-
tioning and ventilation. The Event, held from Nov. 9-11, is a
concentrated stage for products, communication and the ex-
change of information
Midea Commercial Air Conditioning (CAC) and its local
distributor attended this year's event to exhibit the ATW heat
pump, V5 X series VRF and VRF indoor units and other lead-
ing products. During this exhibition, CAC made contacts that
have the potential to be mutually beneficial and increased its
visibility in the booming East European country.
NEWSLINE
Q3 Report: Profit up 16% Year-on-Year
By Midea
M idea
Group’s Q3 report
has shown that
revenue for the
first three quarters
was US $17.36
billion, a year-on-
year increase of 4.5
percent. Profit was
at US$2.05 billion,
a year-on-year
increase of 16.3
percent.
The past quarter has seen advances in India, Indonesia
and the United
States, with in-
creased investment
in research and de-
velopment paying
dividends. Net cash
flow in the first three
quarters was US$2.8
billion, a year-on-
year increase of 6
percent.
Advances Newsletter, Q4 2016
15
Technology Month Unites Factories from 4
Corners of the Earth By Midea
D uring Midea's 21st Annual Technology Month, col-
leagues from factories around the world were invited to the
global HQ to talk about the past year's achievements and experi-
ences as well as bench-marking and strategy.
Their visit came in two parts, the first being a one-day
workshop, the second a series of activities including factory vis-
its aimed at identifying long-term and short-term needs.
The sharing conference on September 24th began with a
speech from Wu Shoubao of Midea Residential Air Condition-
ing. He talked about the changes that manufacturing has gone
through in the past year and the likely challenges of the next
twelve months.
The sharing conference on September 24th began with a
speech from Wu Shoubao of Midea Residential Air Condition-
ing. He talked about the changes that manufacturing has gone
through in the past year and the likely challenges of the next
twelve months.
Rajiv Yadav from the India factory shared what he had
learned from his outstanding work in factory culture, standardi-
zation of components, localization of procurement, optimization
of value chain and product quality.
Hvozdz Alexsandra from the Belarus factory talked about
how the microwave and water heater businesses have been built
from scratch. The microwave business has already become a
market leader, with share of 40.4% including both OBM and
OEM manufacturing. Midea’s own brand has gone from zero to
having a 20.8% share in just half a year.
Mohamed Yehia gave an introduction to the culture and
development of the Egypt factory. He talked about the Egyp-
tian air conditioner market and explained, from a technological
standpoint, how to make products that meet local demand.
After the sharing conference, MIB invited colleagues from
the Residential Air Conditioning, Kitchen Appliances, and Wa-
ter Heater divisions for a seminar on the development of KPI
in the past year and proposed strategy for the next.
At lunch time, visitors from overseas factories were taken on a
tour of Midea’s History Museum so they could learn more
about whose footsteps they are following in.
NEWSLINE
Advances Newsletter, Q4 2016
16
USA: From Jefferson to Jazz Music
By Kevin McGeary
W ith a new research and development center in
Kentucky and a lavish office in New Jersey, the United States of
America is one of Midea Group’s most important markets. Here
are some things you may not know about the world’s richest
country.
1. Founding
1776 is celebrated as the official beginning of the United
States as the Declaration of Independence was issued on July 4.
The declaration, authored primarily by Thomas Jefferson and
announced at Pennsylvania State House in Philadelphia, con-
firmed the then-thirteen colonies’ independence from The Unit-
ed Kingdom.
Biographers and historians have concluded that the
Founding Fathers—the group of men that established the Unit-
ed States—were exceptionally intelligent people. Jefferson spoke
seven languages and played five musical instruments. Benjamin
Franklin, a member of the Committee of Five who drafted the
declaration, was a leading scientist, author and inventor.
Despite having a relatively short history, the United States
can claim to be the world’s oldest democracy. In its 240 years it
has had no monarchs, no unelected heads of state and no mili-
tary juntas.
2. The Flag
Contemporaneously referred to as the Continental Colors,
the flag of the newly independent United States contained thir-
teen stripes of alternating red and white and a British Union
Flag on the top left corner. On June 14, 1777, the Second Con-
tinental Congress passed the Flag Resolution which stated:
"Resolved, That the flag of the thirteen United States be thir-
teen stripes, alternate red and white; that the union be thirteen
stars, white in a blue field, representing a new constellation."
Flag Day is now observed on June 14 of each year. While
scholars still argue about this, tradition holds that the new flag
was first hoisted in June 1777 by the Continental Army at
the Middlebrook encampment.
As the nation grew territorially, the number of stars in-
creased. The most recent addition, bringing the total up to 50,
was Hawaii, which was added on July 4, 1960. One of the big-
gest cultural faux pas a visitor can commit in the United States
is to allow a flag to touch the ground.
3. Territory
Originally, the United States consisted of thirteen colo-
nies, ranging down what is now the east coast from New
Hampshire to Georgia. Throughout the nineteenth century, the
country expanded greatly, starting with the purchase of Louisi-
ana from France on April 30, 1803.
Sometimes by force, sometimes through treaties with Eu-
ropean empires, the expansion reached south through Florida in
1845 and west through states including Illinois in 1818 and Ala-
bama in 1819.
Though there is no scholarly agreement on what consti-
tutes the West, the “wild west” of the nineteenth century, has
taken on a mythic reputation as a place of unique ruggedness.
Its “taming” came through the expansion of railways and poli-
cies by the federal government, including sending women there
to tie more men down to marriage and subsequently stabilize
their lives.
4. The Star
Spangled Banner
"The Star-
Spangled Banner" is
the national anthem of
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USA: From Jefferson to Jazz Music (Cont.)
By Kevin McGeary
the United States. The lyrics come from "Defence of Fort
M'Henry", a poem written on September 14, 1814, by the 35-
year-old lawyer and amateur poet Francis Scott Key.
Key was inspired by witnessing the bombardment of Fort
McHenry by British ships of the Royal Navy in The War of
1812. The poem was set to the tune of a popular British song
written by John Stafford Smith for the Anacreontic Society, a
men's social club in London.
The singing of the anthem is an essential part of major
events including presidential inaugurations and the Super Bowl.
Performing the anthem can be one of the biggest honors of a
singer’s career, making a reputation (Whitney Houston) or
breaking one (Roseanne Barr).
5. Presidents
With elections held every four years, the highest political
office in the
United States is
the presidency.
History’s most
celebrated presi-
dents include
George Wash-
ington, a military
leader and the
first man to hold the office; Thomas Jefferson; Abraham Lin-
coln, who presided over the nation during the Civil War; and
Theodore Roosevelt, who was known for both industrial devel-
opment and conservation efforts.
Those four figures are celebrated on Mount Rushmore,
located in the Black Hills of Keystone, South Dakota. The mon-
ument was completed by sculptor Gutzon Borglum in 1941.
Forty-three men have occupied the Oval Office. Barack
Obama is counted as the 44th president due to the historical
quirk of Grover Cleveland, who served two non-consecutive
terms and consequently gets to be both the 22nd and 24th presi-
dents. Of those, eight have died in office, four of whom were
shot dead—Abraham Lincoln (1865), James Garfield (1881),
William McKinley (1901), and John F. Kennedy (1963). With an
assassination rate of over 9%, it is statistically America’s most
dangerous job.
6. Music
With its diverse population and colorful history, America
has contributed greatly to world culture, with inventions includ-
ing jazz, blues and country music.
Jazz, characterized by swing and blue notes, call and re-
sponse vocals, polyrhythms and improvisation, originated in
New Orleans, Louisiana in the nineteenth century. One of its
greatest practitioners was Louis Armstrong, who came to prom-
inence during the 1920s, also known as the Jazz Age. During
that period, prohibition gave rise to numerous new night clubs
which helped the form come into its own.
The phonograph, which was invented by Thomas Edison
in 1877, brought about the era of recorded sound and subse-
quently the international superstar performer. American musical
greats include Bob Dylan, who in 2016 became the first song-
writer to win the Nobel Prize for Literature.
7. Hollywood
In the
early 1900s,
most motion
picture pa-
tents were
held by
Thomas
Edi-
son's Motion
Picture Pa-
tents Com-
pany in New
Jersey, and
filmmakers
were often sued to stop production. To escape this, filmmakers
began moving west, where Edison's patents could not be en-
forced. Subsequently Hollywood, a recently-incorporated sub-
urb of Los Angeles, with its ideal climate for shooting loca-
tions, became the capital of the American film industry.
After a vote of 846 film critics, programmers, academics
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By Kevin McGeary
and distributors, Sight & Sound magazine placed five American
films in the top ten on its “50 Greatest Films of All Time”.
Number one was the 1958 thriller Vertigo and number two was
the 1941 (thinly disguised) biopic Citizen Kane, both American
productions.
Adjusting for inflation, all of the top ten highest grossing
films of all time have come from Hollywood. Number one is the
historical epic Gone with the Wind, which grossed US$3.44 billion
after being released in 1939.
8. NASA
The National Aeronautics and Space Administra-
tion (NASA) is an independent agency of the executive
branch of the United States federal government responsible for
space programs as well as aeronautics and aerospace research.
Presi-
dent Dwight D.
Eisenhow-
er established
NASA in 1958
to encourage
peaceful applica-
tions in space
science.
NASA astronaut
Alan Shep-
ard became the
first American
in space on May
5, 1961 aboard
his Mercury spacecraft Freedom 7. The United States' Apollo
11 was the first manned mission to land on the Moon, on 20
July 1969. There have been six manned U.S. landings (between
1969 and 1972) and numerous unmanned landings.
The organization has a long, quirky history and has been
involuntarily politicized. However, it managed to get humans to
the moon with a computer system less powerful than a
smartphone.
9. Silicon Valley
Silicon Valley is a nickname for the southern portion of
the San Francisco Bay Area, in the northern part of California.
Home to many of the world’s largest high-tech corporations, it
boasts the headquarters of 39 businesses in the Fortune 1000,
and thousands of startup companies.
Silicon Valley became famous as the birthplace of the sili-
con-based transistor in the 1950s. A man named Don Hoefler
later entered the nickname into the public consciousness
through a series of articles he wrote for the Electronic News in
1971, having borrowed the term from his friend Ralph Vaerst.
By this time, the rapid growth of the tech industry was well un-
derway in California.
Google, Apple, Facebook and Hewlett-Packard have all
set up their headquarters there and aspiring tech entrepreneurs
are drawn
to the place
the way
would-be
movie stars
go to Holly-
wood.
10.
The Great
American
Novel
The
concept of
the "Great
American Novel" has been described by The LA Times as “a
book that most perfectly imagines the kaleidoscope of our na-
tion, its social fabric and its troubled conscience, its individual
voices and strivings, our loves and losses.”
Contenders for the title include “The Adventures of Huckle-
berry Finn” by Mark Twain, which broke many of the literary
rules of its time and thus set the pattern for much of American
literature ever since; “The Great Gatsby” by Scott Fitzgerald,
which captured the zeitgeist of the Jazz Age; and “The Adventures
of Augie March” by Saul Bellow, which follows the mixed odys-
sey of its eponymous hero.
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