Ghemawat Pankaj: Redefiniranje Globalne Strategije

Pankaj Ghemawat: Redefining Global Strategy

CROSSING BOUNDARIES IN A WORLD WHERE DIFFERENCES STILL MATTER

GLOBAL MARKETS ARE STILL SEPARATE, AND NOT JUST BY KILOMETERS

In our supposed globalized economy, business entities are advised to do business across borders as that the whole world is flat and as if there are no things that make it different. After all, the world is not so flat. Business entities that do not take into account specific political, cultural and economic differences are doomed to failure. Professor and strategy consultant Pankaj Ghemawat's book Redefining Global Strategy offers a reality-based view of globalization and practical tools to help achieve profitability in cross-border business. Countering the common view of globalization, Ghemawat argues that the world is in fact "semi-globalized." Through a comprehensible analysis, based on facts, he explains that the global business environment is defined by differences brought about by borders. Using detailed examples of the successes and failures of the world's most powerful companies, Redefining Global Strategy provides practical management tools to help business entities create value from cross-border operations:

CAGE form for distances - Differences between countries can be measured through cultural, administrative, geographic and economic dimensions. Understanding those dimensions of distance that matter most to your industry helps identify the obstacles your global strategy must overcome, as well as the bridges you need to build to reconcile those obstacles.

ADDING Scorecard Values ​​– Seduced by size and the assumption of economies of scale, companies engage in cross-border operations without really analyzing how their economies are affected by the differences that exist between markets. The ADDING list of values ​​helps business entities to create additional value, not just increase business volume.

AAA triangle – There are three general strategies for dealing with cross-border differences: adaptation to adapt to differences, aggregation to overcome differences, and arbitrage to make a profit by exploiting inevitable imbalances between markets. These strategies significantly expand the space of the global strategy in relation to the approach that the same strategy is suitable for all situations. By providing strategic tools and a step-by-step approach to profiting from the international economy, Redefining Global Strategy helps businesses get the most out of our semi-globalized world.

"Pankaj Ghemawat has created an important strategy guide for leaders in twenty-first century globally integrated businesses. His analytical toolkit is both visionary and pragmatic—aware of the broader historical conditioning of globalization, but grounded in the practical decisions business leaders must make. His warnings about "semi-globalization" provide a useful reminder that sweeping changes of this type do not happen overnight. Basing his analysis on real-world case studies and carefully selected economic indicators, Ghemawat helps executives and leaders make wise decisions about one of the most important challenges we face." with deep knowledge of business practice. Redefining global strategy deals with the crucial balance between the local and the global, which often determines success in the increasingly globalized world economy". Porter, Professor at Bishop William Lawrence University, Harvard Business School

"Noticing differences in industries and specific companies' views on globalization, Pankaj Ghemawat provides key insights and provokes tive impulses for
thinking to all current decision makers. For everyone who aims to realize the full potential of globalization, it clearly confirms: the world is not flat!".
Prof. Dr. U. Lehner, Chairman of the Business Committee, Henkel KGaA, Germany

"International companies must think much more deeply about how they will coordinate their operations around the world. Pankaj Ghemawat's pioneering work offers a completely new approach to how to face this critical challenge".
J. Ignacio Goirigolzarri, President and CEO, BBVA

"In Redefining Global Strategy, Pankaj Ghemawat rightly recognizes the world we live in as one that is only 'semi-globalized'. Based on this definition, he builds very valuable and innovative frameworks for the development strategies of internationalization and the creation of global values. The book provides a comprehensive overview of one of the most important issues facing the business community".
R. Tata, Chairman, Tata Group

Summary:

I. Value in a world of differences
Semi-globalization and strategy
Differences between countries: CAGE form for distances
Global value creation: ADDING list of values

II. Strategies for global value creation
Adaptation: Adapting to differences
Aggregation: Overcoming Differences
Arbitrage: Exploiting Differences
Playing with Differences: The AAA Triangle
Towards a Better Future: Getting Started with Strategy

Pankaj Ghemawat is the Anselmo Rubiralta Emeritus Professor of Global Strategy at IESE Barcelona Business School and the Jaime and Josefina Chua Tiampo Emeritus Professor of Business Administration at Harvard Business School (on leave).