Why do so many global strategies fail--despite companies' powerful brands and other border-crossing advantages? Seduced by market size, the illusion of a borderless, "flat" world, and the allure of similarities, firms launch one-size-fits-all strategies. But cross-border differences are larger than we often assume, explains Pankaj Ghemawat in Redefining Global Strategy, with a New Preface . Most economic activity--including direct investment, tourism, and communication--happens locally, not internationally.
In this "semi-globalized" world, one-size-fits-all strategies don't stand a chance. Companies must instead reckon with cross-border differences. Ghemawat shows you how--by providing tools for: assessing the cultural, administrative, geographic, and economic differences between countries at the industry level and deciding which ones merit attention; tracking the implications of particular border-crossing moves for your company's ability to create value; and creating superior performance with strategies optimized for adaptation (adjusting to differences), aggregation (overcoming differences), and arbitrage (exploiting differences), and for compound objectives.
In-depth examples reveal how companies such as Cemex, Toyota, Procter & Gamble, Tata Consultancy Services, IBM, and GE Healthcare have adroitly managed crossborder differences--as well as how other well-known companies have failed at this challenge. Crucial for any business competing across borders, this book will transform the way you approach global strategy.
About the Author
Pankaj Ghemawat globalization and business strategist, professor, and speaker- works with organizations and policy makers around the world to help them anticipate and prepare for economic shifts. He is Global Professor of Management and Strategy and Director of the Center for the Globalization of Education and Management at the Stern School of Business at New York University and the Anselmo Rubiralta Professor of Global Strategy at IESE Business School. He is the author of numerous influential books, including The New Global Road Map, World 3.0, and The Laws of Globalization.
Praise for Redefining Global Strategy
Samuel J. Palmisano, former Chairman of the Board and CEO, IBM Corporation--
"Pankaj Ghemawat has created an important strategic guidebook for leaders of the globally integrated enterprises of the twenty-first century. His analytical framework is both visionary and pragmatic--aware of the broad historic trajectories of globalization, but grounded in the real kinds of decisions business leaders have to make now. His caveats about 'semiglobalization' provide a salutary reminder that massive change of this kind doesn't happen overnight. By basing his analysis on real-world case studies and a mastery of economic data, Ghemawat helps CEOs and leaders make smart decisions on one of the most important challenges we all face."
Michael Porter, Bishop William Lawrence University Professor, Harvard Business School--
"Pankaj Ghemawat is one of those rare individuals who combines world-class scholarship with a deep knowledge of business practice. Redefining Global Strategy tackles the crucial balance between local and global that will often define success in an increasingly globalized world economy."
Prof. Dr. Ulrich Lehner, Chairman of the Supervisory Board, Deutsche Telekom and Thyssenkrupp AG--
"Pankaj Ghemawat's differentiated industry- and company-specific views on globalization offer essential insights and thought-provoking impulses for today's decision makers. For anyone who aims to realize the full potential of globalization, it clearly confirms: the world isn't flat!"
Jose Ignacio Goirigolzarri, President, Bankia--
"International firms have to reflect more deeply on how to coordinate their commitments around the world. Pankaj Ghemawat's pioneering book offers an innovative approach for how to deal with this critical challenge."
Ratan Tata, former Chairman, Tata Group--
"Pankaj Ghemawat's Redefining Global Strategy has very appropriately identified the world we live in as only 'semiglobalized.' He builds on this definition to present some very valuable and innovative frameworks for developing strategies for internationalization and global value creation. The book offers a comprehensive treatment of one of the most important issues engaging the business community."