Ch 10: What does globalization mean? ( ( (Percy Barnevick: Boos at ABB…
Ch 10: What does globalization mean?
Boos at ABB (Asea Brown Boveri)
MT. Understanding of globalization
Centers of excellence
Multicultural multinational structure
Systems of information
Knit the organization
Transfer expertise around the world
An idea whose time has come
"Globalization" used so much by MTs
Globalization became important for small companies to launch sophisticated products around the world.
Has no standard meaning
The 3 myths of globalization
Theodore Levitt: "Technology is increasing global markets"
Aurelio Peccei: "Multinacional corporation is powerful for the internationalization.
Global brands adapt theirselves to the local
Mktg is interested in segmenting rather than bundling
Small companies gain more than big from globalization
Deregulation of capital markets made it possible for small companies to borrow money
Multinationals are less multinational than they seem, migrate not so far.
How much does geography matter?
How global firms have become insiders
Globalization force governments to be more independent, and teach people think more about the other.
Makes firms stick in their roots and origins
Some companies are too bound up with the local culture
The trasnational corp.
Not the triumph of big monolithic companies.
Not the eclipse of local differences
Not the omnipresence of products
Not a strategy but a phenomenon
Represents problems and opportunities
Powerful company: can manufacture its products globally, making use of the different local cultures.
What companies take advantage of globalization?:
Transnational (Christopher Barlett and Sumantra Ghosal)
Multicultural multinational (Percy Bernavik)
Some companies have given the responsibility of a global products/functions to subsidiaries
Transnational companies are more particular and sensitive about the products they market across the borders
Reasons to be global
Multinational can devote more resources to the products
They become more powerful being part of networks of knowledge
Two types of integration:
Reinventing companies to use knowledge across borders is difficult
The Multicultural Multinatinational
People are more important than products
Companies fail in globalization strategies bc people not always go along with it.
If multinational doesn't use their subsidiaries knowledge, better close them and hire subcontractors
Should exploit multiculturalism
The more distinctive internal culture, the better.
Sometimes there is no other choice than multiculturalism
Corporate culture has become the fifth management asset
Nowadays multinational have cleaner and greener images
The people test
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The battle ahead
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