Global Operations

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Creating More Resilient Supply Chains

Global supply chains bring increased risks of disruption from events such as natural disasters. But by understanding and planning for such risks, Cisco Systems improved its own supply chain resilience. Its five-step process: identify strategic priorities; map the vulnerabilities of supply chain design; integrate risk awareness into the product and value chain; monitor resiliency; and watch for events. John Chambers, Cisco chairman and CEO, calls this type of risk management “a key differentiator.”

Image courtesy of Flickr user Ming Xia.

Protecting Intellectual Property in China

“By operating in China, overseas businesses expose their intellectual property to risk,” write Andreas Schotter (Ivey Business School at Western University) and Mary Teagarden (Thunderbird School of Global Management). “But deciding to stay away entails the even greater risk of missing opportunities to acquire knowledge that is critical for competitiveness across a wide range of global markets.” To protect their IP, companies need to control and manage their IP vulnerabilities proactively.

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MIT Sloan Management Review Launches Chinese Edition

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MIT SMR has launched a Chinese edition of its magazine and website, in partnership with local publishing firm Shanghai Li Han Technology Information Management Co. Ltd. Building on MIT SMR’s English language content, translated into Simplified Chinese, the publication will be enhanced by localized content relevant to business leaders and academics in China. The Chinese edition will bring MIT SMR’s premier content to the Chinese management and business community.

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Developing Tomorrow’s Global Leaders

Human resources executives say that the next generation of global executives will be more diverse. But by diverse, they don’t just mean having variations in age, nationality and gender. They believe that top leadership groups in the future will be characterized by people with greater diversity of experience and “thought styles.” HR executives also believe that next-generation leaders will be working more collectively.

Image courtesy of Flickr user utpal.

Should Top Management Relocate Across National Borders?

International relocations of entire corporate headquarters are rare. But the relocation of top management team members is happening more and more. For instance, a desire to be close to its major global customers led Halliburton Co., an international oil services group, to relocate the company’s CEO from Houston to Dubai. But there are strategic costs and benefits of such decisions. Deciding which option to pursue depends on the strength and interplay of the relocation drivers and barriers.

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Image courtesy of Nestle.

On the Rocky Road to Strong Global Culture

Companies often approach the process of developing a global culture as a one-way process dominated by corporate headquarters, exemplified by common terms such as “cultural transfer” “and “culture dissemination.” Also, core values often originate at corporate headquarters and fail to reflect and incorporate diverse cultural influences. This approach breeds skepticism about global culture among overseas employees, who may perceive headquarters’ core values as ethnocentric and parochial.

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Debating Offshoring’s Impact

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Too often, discussions of contemporary economic issues end up either overly simplified for popular consumption -- or too jargony and technical to be followed by anyone but economists. A new book, Offshoring of American Jobs: What Response from U.S.

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Confidence, Tricked

Since 2007, as banks took successive writedowns related to deteriorating mortgage-backed securities, the conventional wisdom was that we were facing a crisis of bank solvency triggered by falling housing prices and magnified by leverage.

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The New Practice of Global Product Development

Many manufacturers have established product development activities in different countries around the world. Yet their senior managers often struggle to tie those decentralized organizations into a cohesive, unified operation that can efficiently drive growth and innovation. New empirical frameworks may help unlock practices with which managers can deploy well-coordinated global product development strategies.

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The Myth of Globalization?

A series of surveys by Alan Rugman, professor of international business at the Kelley School of Business, Indiana University, and senior research fellow in strategic management at Templeton College, Oxford, suggest that only a small proportion of the largest companies that call themselves multinational have an effective global presence.

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The Japanese Juggernaut Rolls On

Plus ça change, plus c’est la même chose. — French expressionThey don’t make much money, but they sure make a lot of stuff. — Down East Maine expressionRumors of my demise have been much exaggerated. —Mark TwainAfter years of observing U.S. industry under siege from foreign competitors, U.S.

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