Fall 1998, Vol. 40, No. 1

 

Given the meltdown in global economies, it becomes more important than ever for managers of multinationals to rethink their strategic approach to emerging markets. David Arnold and John Quelch provide a framework for assessing markets based on four areas of decision making: whether to enter the emerging market at all, which market to enter and when, how the product and market life cycles will evolve, and how to structure relationships with their local partners. Their new framework for assessing long-term market potential will, we hope, provide managers with some guidance during the current crisis.

In a related article, Hal Gregersen, Allen Morrison, and Stewart Black report on their survey of executives in Fortune 500 companies; 85 percent report that they do not think their companies have enough globally competent managers. The authors propose a new way to develop managers for MNCs by seeking people who are curious about other cultures, who can communicate across cultures and are ethical and loyal to their company's values, who can deal with the uncertainties in global business, and who can recognize opportunities in worldwide markets.

Models of strategy and structure developed for an industrial economy no longer work for an economy based on information. N. Venkatraman and John Henderson take the view that virtualness is a strategic characteristic that applies to all organizations — whether century-old auto manufacturers or new high-tech startups. The authors raise many questions that will help managers reframe their strategic thinking for a virtual world by ensuring integration among customer interaction, sourcing, and leveraging knowledge.

The efficacy of collaborative partnerships among suppliers is illustrated by Toshihiro Nishiguchi and Alexandre Beaudet's fascinating account of a disastrous fire in a Toyota supplier's plant. Without the vital P-valves in production, the entire Toyota line could have been shut down. Instead, suppliers worked together to set up alternative production sites. By planning ahead and disseminating knowledge across the group, Toyota ensured that its suppliers could self-organize in a crisis.

Marc Meyer and Robert Seliger apply the platform architectures used in building physical products to the development of software. The benefits are increased R&D productivity and rapid growth of market share and revenue. The authors use the examples of Visio Corporation's graphics-charting software to which other companies and users can add shapes and scripts, and VenturCom's "real-time" operating systems that allow customers to build the final product.

Developing customer loyalty is, of course, vital to a successful firm. But even firms that purport to deal effectively with customer problems and complaints do not always meet their clients' expectations. In a survey, Stephen Tax and Stephen Brown found that the majority of customers are dissatisfied with the way companies solve their problems. While identifying the service failure and resolving the problem fairly are important, the authors suggest that communicating and categorizing information about the service complaint will prevent reoccurrence and foster learning throughout the firm.

Anany Levitin and Thomas Redman point out that companies frequently don't know what data they have, can't use the data, have too much or too little, or find that the data are inaccurate or not securely protected. Their comprehensive approach to data management will help companies supply the right data, ensure access to the people who need the data, guard against loss or unauthorized use, and guarantee quality. The explosion in data makes their prescriptions vital.

— Jane Gebhart

 

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