Achieving ‘Glocal’ Success

Michael R. Czinkota and Ilkka A. Ronkainen for www.ama.org

Companies that have adopted this approach have incorporated the following four dimensions into their organizations.

Building a Shared Vision

The first dimension relates to a clear and consistent long-term corporate mission that guides individuals wherever they work in the organization. Examples of this are Johnson & Johnson’s corporate credo of customer focus; Coca-Cola’s mission of leveraging global beverage brand leadership “to refresh the world, inspire moments of optimism and happiness, create value and make a difference”; Nestlé’s vision to make the company the “reference for nutrition, health and wellness”; and Samsung’s mission to “create superior products and services, thereby contributing to a better global society.” But formulating and communicating a vision or mission cannot succeed unless individual employees understand and accept the company’s stated goals and objectives.

Broadening Perspectives

This relates to the development of a cooperative mindset among region or country organizations to ensure the effective implementation of global strategies. Managers may believe that global strategies are intrusions on their operations if they do not have an understanding of the corporate vision, if they have not contributed to the global corporate agenda, if they are not given direct responsibility for its implementation or if there is no reward for their cooperation.

Capable Managers

The third component in the “glocal” approach is making use of representatives from different countries, regions, and cultures. Organizationally, the forces of globalization are changing the country manager’s role significantly. With profit-and-loss responsibility, oversight of multiple functions, and the benefits (and drawbacks) of distance from headquarters, country managers enjoyed considerable decision-making autonomy, as well as entrepreneurial initiative. Today, however, many companies have to emphasize the product dimension of the product-geography matrix, which means that power has to shift at least to some extent from country managers to worldwide strategic business unit and product line managers. Many of the previously local decisions are now subordinated to global strategic moves.

Internal Cooperation

In today’s environment, the global business entity can be successful only if it is able to move intellectual capital within the organization—that is, to transmit ideas and information in real time. If there are impediments to the free flow of information across organizational boundaries, important updates about changes in the competitive environment might not be communicated in a timely fashion to those tasked with incorporating them into the strategy.

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Global Update: Samsung versus Apple – The Race Continues

Samsung unveiled its new watch-phone, the Galaxy Gear, today headlining the innovation of “wearable” devices. For the most part, Samsung used to be seen as lurking in the shadows of Apple, constantly following their innovation instead of creating its own. Today, the tables have turned as Samsung beats Apple in launching its smartwatch.

The Galaxy Gear is expected to be in stores as of September 25th at the price of $299. However, Samsung is not the first to launch such a product. Pebble began selling its smartwatch online back in January 2013 and from stores this past July. Apple is expected to release a similar product as well as Sony. These devices function in conjunction with specific smartphones or even an iPod touch in order to allow for more convenient uses.

What is your opinion on the new Galaxy Gear? Is Apple really falling behind? Post your views in the comment section below!

Apple Patent Ruling Vetoed

The intellectual property rights debate is once again in the spotlight. The Obama administration overturned an International Trade Commission (ITC) ruling against Apple. This veto marks history as no such decision has been made against the ITC in more than 25 years.

Smartphone companies are increasingly relying on patents to outrun their competitors. Apple and Samsung, the most notable pairing, have been battling out patent issues in the courts for the past two years.

This veto allowed for the initial June 2013 ruling to be overturned that banned the sale of older iPhone and iPad models due to a patent infringement with Samsung at the time.

The United States Trade Representative Michael Froman believes the veto is vital in order to prevent harm to both consumers and the U.S. economy.

What is your opinion about the ruling being vetoed? Post your thoughts in the comment section below.