Corporate globalization

Growing Organizational Complexity and

Reach
By:
Sukhpreet Banipal
Vishal Sharma
Sunil Bhardwaj
Velol Gupta
Rohit Singhal
Aprajit Kathuria
Gaurav Sinsinwar
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 Globalization takes different forms
Globalization is the process of change seen as
increasing
interdependence, integration and interaction among
people and
companies in disparate locations around the globe.

Globalization strategies take different forms for

different companies:
Multinational –companies with specific strategies for
each different country.

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 Globalization takes different forms

Transnational –companies with strategies to gain

worldwide efficiency and local advantages.
International –companies with a global strategy but
with
local adaptations
Worldwide –companies with a “one-size-fits-all”
strategy in all countries

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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
4 ever.
 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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