Every global manager needs to develop the vision necessary to succeed in the integrated world economy. Understand your market, develop a clear focus, refine business processes, form a talented team, and aim to conserve your organization’s identity.
Scanning the Market
Monitor the global business environment to identify any opportunities and risks that could affect your organization. You should be particularly aware of industry trends, changes in your customer preferences, competitor moves in products and pricing, new technology, legal and regulatory changes, relevant government policy changes, new methods for marketing and distribution, and new supply sources. Gather information so that you can ensure that strategic and tactical policies are based on fact, not speculation.
Developing a Focus
In formulating global strategic goals, a business must have certain information. Make sure that you know who and where your customers are and how they are changing. Look at your products and services to consider which have the best potential to succeed, while requiring the least adaptation. Study strategic markets to see how they can be entered into or expanded. Finally, look at the strategies of global and local competitors: think about how they could be bettered and beaten.
Learning for Competitive Advantages
To improve its strategies, and to be able to develop and sustain its sources of competitive advantage, a business must be in a continuous state of learning. Recognize that global competitive advantage comes from at least three sources:
- Technical excellence: An ability to create, absorb, and apply knowledge across the organization.
- Operational excellence: An ability to develop world-class systems and processes.
- Relational excellence: An ability to work effectively with culturally diverse customers, colleagues, and partners.
Points to Remember
1. Similarities in global customer preferences present opportunities for greater economies of scale.
2. Global customers like to deal with suppliers who can fulfil their needs around the world.
3. Focus attention on capabilities that make your organization distinctive in the global market.
Maximizing Value and Minimizing Costs
A business consists of value-creating activities, such as product development and marketing. Your organization must decide where to locate each of these activities in order to maximize value creation and minimize costs. Allocate responsibilities and transform your business structure into a global network by putting procedures in place to co-ordinate areas such as budgeting and reporting.
Managing for Results
One of your critical responsibilities as a global manager is to attract, develop, and retain world-class talent. Remember that talented workers are attracted to the worldwide business arena by the opportunity to perform challenging and creative work, and by the chance of professional development. They also value programmes that reward results. Ensure that collaboration across borders is possible, and that your organization has processes for capturing, disseminating, and integrating new knowledge and best practices.
Renewing for Growth
A business must work continually to create its own future in the global market. It does this by scanning the marketplace constantly and creating new opportunities beyond the current vision of the consumer. Make sure that your team of employees is diverse enough to cope with the challenge of a’ global market: remember that diversity promotes innovation. Ensure that your organizational culture is an incubator for top-quality ideas.
Staying Committed to Core Values
While it is important to be prepared to change in a dynamic global marketplace, it’s also important to conserve what’s of long-term value. A global organization needs to identify those features of its business that should not be changed or may be changed only very slowly. An organization’s commitment to its core values, for example, will show its integrity and reliability to its customers and partners. These consistent values will also provide diverse stakeholders around the world with a clear view of what they can expect when dealing with your firm. Recognize that your successful global brands also need conserving -these help generate recognition and confidence.