Session

1:
Introduction and Overview

Innovation and
GlobalizationDr. Paola Perez-Aleman
in Developing Economies
Professor of Strategy and Organization, McGill University

September 3, 2019 © Prof. Perez-Aleman

 Objectives for Session 1
1)  Class Introductions.

2)  Overview of the course plan.

3)  Introduce evolution on strategic management thinking.

4)  Introduce shifts in developing countries and world economy.

© Prof. Perez-Aleman
Social Problems as Opportunities

© Prof. Perez-Aleman
 Social/Environmental Problems as
Opportunities

Waste Concern
enterprise and Cargill
Bangladesh
© Prof. Perez-Aleman
 Evolution of Strategic Thinking and
Social Challenges
Corporate Innovating
Only Profits Philanthropy Social Business
Responsibility Models
•  Exclusive focus •  Donations •  Compliance •  Address social
on economic problems
value •  Volunteering •  Corporate through new
Citizen and coherent
business models
•  Improving
Business
Standards

© Prof. Perez-Aleman
 Why the Innovation Model Emerges?

 Global shifts in the context of globalization

 Rise of global value chains
 New relations with suppliers and consumers from
developing countries

© Prof. Perez-Aleman
Developing Countries and Innovation
v New products and services
v New markets
v New methods of production
v New ways of organizing business
v Introducing something in a new context
v User-driven
v Local problems as drivers

© Prof. Perez-Aleman
© Prof. Perez-Aleman
© Prof. Perez-Aleman
© Prof. Perez-Aleman
© Prof. Perez-Aleman
Most of the world’s population lives at
the bottom of the economic pyramid

Mature markets

Emerging markets

Survival markets

© Prof. Perez-Aleman
© Prof. Perez-Aleman
© Prof. Perez-Aleman
Human Development Index

© Prof. Perez-Aleman
 Hans Rosling’s Four Income Groups

Level 1 Level 2 Level 3 Level 4

One billion people. Three billion people. Two billion people. One billion people
This is what we think of Between $2 and $8 a Between $8 and spend more than
as extreme poverty. day. You can buy shoes $32 a day. $32 a day.
Less than $2 a day and and maybe a bike, so it You have running You have at least
get around by walking doesn’t take so long to water and a fridge a high school
barefoot. Your food is get water. Your kids go in your home. You education and can
cooked over an open to school instead of can also afford a probably afford to
fire, and you spend most working all day. Dinner motorbike. Some buy a car and
of your day traveling to is made over a gas of your kids start take a vacation
fetch water. At night, you stove, and you sleep on (and even finish) once in a while.
and your children sleep mattresses instead of high school.
on a dirt floor. the floor.
Source: https://www.gatesnotes.com/Books/Factfulness

© Prof. Perez-Aleman
Conclusions
v Innovation in products, processes, services, and business
models by addressing challenges in low-income contexts.

v  Core business strategy integrates market needs and impact.

v Ensure business activities support an increase in the

capabilities (people, producers, enterprises, organizations).

© Prof. Perez-Aleman
 Manager of the Future
A)  Ability to work with a wide variety of people and
organizations.

B)  Ability to solve complex problems for innovation and

social impact.

C) Skills for creating collaborative solutions through

partnerships with different organizations.

D) All of the above

Most important skills employers
want from managers
Financial Times 9/3/2018

Ability to Ability to Ability to Ability to Ability to

work with a set work in a build, solve
wide variety priorities team sustain and complex
of people and time expand problems
manageme network of
nt people