When you shouldn't go global (companies' ill-fated globalization strategies)

Strategic Direction

ISSN: 0258-0543

Article publication date: 17 April 2009

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Keywords

Citation

Alexander, M. (2009), "When you shouldn't go global (companies' ill-fated globalization strategies)", Strategic Direction, Vol. 25 No. 5. https://doi.org/10.1108/sd.2009.05625ead.007

Publisher

:

Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited


When you shouldn't go global (companies' ill-fated globalization strategies)

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 5

Alexander M., Korine H.Harvard Business Review, December 2008, Vol 86 No 12, Start page: 70, No. of pages: 8

Purpose – Considers the wisdom or otherwise of a company’s decision to adopt a strategy aimed at becoming a globalized enterprise. Design/methodology/approach – The nature of globalization and the pitfalls awaiting companies that take insufficient care when attempting a globalized strategy is discussed in light of some of the business failures that have been attributed to inappropriate globalization of the companies’ businesses. Findings – It is argued that many business failures could have been prevented, and could be avoided in future, if such companies seriously addressed three issues: whether there are potential benefits to the company from globalization; whether the necessary management skills are present; and whether the costs of globalization outweigh the benefits. Suggests that, before launching a global initiative, senior managers should conduct a simple but rigorous self-assessment to gauge the likelihood of success and that, by taking the time to do this, they can ensure that international efforts make strategic sense and avoid potentially disastrous consequences. Focuses particularly on the specific characteristics and needs of deregulated industries, service industries, and manufacturing industries. Cites the example of the failure of ABN Amro to illustrate the issues. Originality/value – Offers valuable advice to managers contemplating globalization on how to avoid the pitfalls that exist.ISSN: 0017-8012Reference: 38AB161

Keywords: Corporate strategy, Globalization, International trade, Mmanagerial strategy, Organizations, Strategic management

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