Global Strategy

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The Ability to Navigate the In-Between Spaces

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  • Read Time: 7 min 

Efforts to effectively connect decision-makers in large organizations across functions, divisions, and business units — not to mention with other companies, governments, and other external stakeholders — usually require organizational innovations. Several key leadership attributes are necessary for this to work. They include the ability to navigate the gaps not covered by specialists, a record of following through and getting things done, and knowledge of other cultures, including the ability to speak multiple languages.

How to Compete Against the New Breed of National Champions

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  • Read Time: 8 min 

While the threat of national champions is nothing new, their essential character has substantially changed, and the competitive advantage of national champions in the global marketplace has become more pronounced. Today’s national champions are much more sophisticated, competing in more industries, and harder to spot than ever before. As a result, Western companies need a new strategic guide for competing against them.

The Five Steps All Leaders Must Take in the Age of Uncertainty

Leaders need a new mental model to better understand the complex interplay between companies, economies, and societies. To do so, they must shift their focus to the broader business and social ecosystems in which their companies are embedded.

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Leading to Become Obsolete

Zhang Ruimin, the CEO and chairman of the Qingdao, China, white goods giant Haier Group Corp., has done what most chief executives dare not even dream about. He blew up nearly the entire administrative structure of a global manufacturing enterprise, eliminating the 10,000 management jobs that once held it together, and reshaped the organization into a network of entrepreneurial ventures run by employees.

Revisiting the Logic of Being Global

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The state of the multinational and how “the world is losing its taste for global businesses” is the subject of a recent cover story in The Economist titled “The Retreat of the Global Company.” For many multinationals, the article notes, the case for global integration has been hurt by falling profits, lower returns on capital, and increasing pressures from governments looking to protect local jobs and tax revenue.

From the Archives: How to Reshore Manufacturing Successfully

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  • Read Time: 3 min 

The Trump administration has an aggressive stance about finding new American manufacturing jobs, which could pressure some companies to consider bringing overseas operations back to the U.S. But the task is complex. “While the macroeconomic data on comparative labor and factor costs may be compelling, the actual process of reshoring — bringing assembly work back from abroad — is hard work,” wrote Harvard Business School’s Willy C. Shih, in a 2014 article in MIT Sloan Management Review.

Competing Through Joint Innovation

Even as multinationals struggle to make inroads in emerging markets, companies from those markets are finding ways to compete in Europe and the U.S. A case in point is Huawei, a Chinese telecommunications company, which has used strategic partnerships to gain ground in Europe. Huawei’s overseas expansion closely resembles the strategy the company used to build its position in China: Start at the perimeter and work toward the center.

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The Next Wave of Business Models in Asia

The first wave of innovation from emerging markets in Asia has been predicated on the replication of existing business models at lower cost. The second wave, which could be even more disruptive than the first, fundamentally reimagines various facets of the business model to find new, often digitally enabled, ways in which resources and processes can be leveraged. Such companies identify creative ways for partners, stakeholders, and customers to be involved in value creation and capture.

Mastering the Market Intelligence Challenge

A shortage of reliable information is common in emerging markets. Because such markets are heterogeneous, the sources and methods for market intelligence require modification before they can be transferred from one emerging market to another. Market intelligence is thus best viewed and managed as a strategic asset that multinationals should invest in keeping up to date.

Engaging With Startups in Emerging Markets

For large multinationals, forging effective partnerships with emerging-market startups is complicated. Traits that make startups attractive as partners also make it hard for large companies to engage with them. Looking at startups in India, China, and South Africa, researchers identify key factors inhibiting emerging market partnerships and offer strategies for addressing them.

Harnessing the Best of Globalization

Globalization offers significant opportunities, yet most companies approach key decisions haphazardly. Although the complexity of globalization means managers rarely can fully analyze a global business opportunity before they need to act, the basic tensions in global business models are straightforward. A simple analysis of global ventures along these dimensions can help entrepreneurs develop clearer expectations and decision-making processes.

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Developing Effective Intellectual Property Partnerships

All too often, companies from emerging and established economies talk past each other when discussing intellectual property. The result is that often fail to consider all their options for a productive collaboration. The authors detail five ways that companies can structure such IP partnerships, and say that it’s important for a company to choose the one that’s the best fit for the project: “The choice of IP business models is a strategic decision, not merely a legal matter.”

How Global Is Your C-Suite?

New research shows that the vast majority of the world’s largest corporations are run by CEOs native to the country in which the company is headquartered. Does that matter? Some studies indicate that national diversity in the top management team can be associated with better performance. What’s more, the presence — or absence — of nonnative executives in a company’s top management team can send a signal to employees outside the home country: It indicates the long-term career prospects for foreign middle managers already in the company as well as for potential hires.

The New Mission for Multinationals

Something strange is happening as globalization marches forward: Increasingly, powerful local companies are winning out against multinational competitors. Some 73% of executives at large multinational companies say that “local companies are more effective competitors than other multinationals” in emerging markets. To compete effectively, multinationals need to let go of their global strategies and embrace a new mission: Integrate locally and adapt globally. That means becoming embedded in local distribution, supply, talent and regulatory networks as well as in the broader society.

What It Takes to Reshore Manufacturing Successfully

The process of bringing assembly work back to U.S. factories from abroad is more challenging than the economics would predict. In the United States, many key resources, including the manufacturing workforce, have atrophied. Author Willy C. Shih (Harvard Business School) recommends that to reduce turnover, companies that embrace reshoring — bringing assembly work back from abroad — encourage workers to complete training and certification.

How Facebook is Delivering Personalization on a Whole New Scale

As Facebook becomes more mobile-centric, it’s also becoming adept at laying its customer data over brand data and third-party data to create uniquely customized experiences for its users. In a Q&A, Blake Chandlee, vice president of global partnerships at Facebook, details the power that comes from being able to overlay all that customer information. “Historically, we’ve never had the ability to have the scale of a mass media along with the personalization that digital provides,” says Chandlee.

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