Professional Documents
Culture Documents
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Globalization takes different forms
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Visible Signs and Symptoms
The Globalization of Markets / Customers
Advances in the technological environment.
(Internet and e-commerce)
Technology effecting
information/communications
It is possible to "know" where to buy
components parts at cheaper prices
People around the globe are more connected to
each other than ever before.
Information and money flow more quickly than
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Visible Signs and Symptoms
Outsourcing: the "modular approach to business”
Few things "made" in a factory, most stuff is
assembled from component parts that come from
a variety of locations, some national, some
international.
Goods and services produced in one part of the
world are increasingly available in all parts of
the world.
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Core Problems
Financial – Matching international currencies and
their rate of exchange. Handling finances of a
company on a global scale.
Economic – Dealing with economies of different
countries.
Political – Political issues of different countries.
Informational – Managing flow of information
across international boundaries.
Language – Different languages in different
countries.
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Core Problems
Competition – Global competition. New
competition in new markets.
Ecological – Climatic & environmental problems
in different countries.
Cultural – Different working & general cultures of
different countries.
Legal/Ethical – Different legal policies in different
countries.
Religious – Prime religion of a country & its
impact on local people of a country.
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How should companies respond ?
Trade Barriers: Burden of tariffs, quotas, the
policy of buying.
Understanding Customer Demands: Effective
operations, product assurance and reliability,
logistical problem solutions
Globalization of Competitors : Understanding the
behavior of the international competitors.
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How should companies respond ?
Regulations and Restrictions: Limiting the
expansion, Regulations related to encroaching in
the local companies' profits ,controlling costs.
Providing Incentives : Capital infusion, skills, and
technology voluntarily provide incentives such as
fixed assets, tax exemptions, subsidies, tax
holidays, human capital, and low wages.
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Key considerations in Globalization:
Strategy and Plan
Determine the forms of growth
Identify the country to start with
Identify the right fit M&A targets
Define the vision and values to be modified in the new
organization
Evaluate the operating model and organization
structure
Evaluate the branding strategy to appeal to the internal
& external environment
Define the talent to be attracted and the attributes to be
infused in the leadership
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Evaluate policies and practices in line with the local
Expected Benefits
Huge annual turnover: Revenues of Wal-Mart is
bigger than Indonesia. Revenues of General
Motors is approximately equivalent to that of New
Zealand, Ireland and Hungary combined.
Better Purchasing Power: open up all government
contracts, services, and goods to competitive
bidding .
More Opportunities: less governmental
interferences, and market access provisions .
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Expected Benefits
Economic and Political Stability :With economic
prosperity, comes political stability
Economic partnership : create win/win exchanges
. Eg U.S. has backed international loans to
Argentina
Reduce Trade Disputes: Economic partnership
reduces trade disputes. For example it might be
able to soothe trade disputes between the U.S. and
Brazil .
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considerations in Globalization: Execute and
Integrate
Organize and mobilize leadership team with international experience
Define details of the operating model, organization, branding and
practices
Align leadership and middle management
Acknowledge and realize the value in diversity
Communicate with Employees
Maintain momentum and speed
Communicate with Customers / Shareholders
Plan and execute integration to realize synergies
Formulate to-be corporate culture and plan for change initiatives
Integrate and implement operating model
Gradually infuse core values into each organization
Continue to seek opportunities to reinvent and reshape the globalizing
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Examples
Reliance
TCS, Infosys etc.
GE
Unilever
Toyota
Citibank
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THANK YOU
Thank You
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