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Friday, April 11, 2014

gloBaloney - What's It All About!?!


Businesses say (most of them) that they want to grow their market share 
become more global.

And business leaders say that they lack people with global intelligence skills! 

Globalization of Businesses Enterprise” tries to address gaps at both 
the personal and business level, and suggests practical strategies  to deal  with the real consequences of globalization.

This Course was developed and refined during Professor Ghemawat's
term as a member of a task force that undertook this study on the globalization 
of business and it's education.

It starts off by debunking many myths that surround globalization - referred to as 
“globaloney” by Professor Ghemawat.

Once concepts of what globalization is not - has been established, the student 
then devotes time to try and understand what globalization is.

Differences between countries that affect levels of globalization and their 
implications are summarized using an acronym "CAGE
- developed by the good Professor Ghemawat.

This framework is being used, widely, by business-schools - worldwide.

Last, but not the least, implications of globalization, for business and 
personal development are synthesized. 

Course consists of the following sessions:

Globalization and Globaloney
How globalized is the world? Data in this regard, and it's comparison to what people think.
Possible reasons for this are also discussed.

CAGE Distance Framework
Trying to understand differences using CAGE framework. CAGE” is acronym for  Cultural, Administrative (institutional and political), Geographic and Economic .

Cultural Distance
Encompasses differences in race/ethnicity, religious beliefs, language, and 
social norms values.

Administrative Distance
Administrative differences that can possibly cause problems are 
differences in capital and labor systems. This could affect ways by which enterprises are structured and governed.

Geographic Distance
Focuses on how cross border interactions are influenced by  physical distance  - such as contiguity within country borders - or how far apart they are. 
Some other causes could be access to the sea, topography, and time zones. 
Interactions between countries belonging to a region are also discussed.

Economic Distance
Consumer wealth and income and the cost of labor are the most obvious.
Other differences could be availability (or lac) of resources, inputs, infrastructure, 
and organizational capabilities. 

Implications of Distances for Business Strategy
Reviews three broad strategies
- Adaption to adjust to differences across countries and achieve some responsiveness;
- Aggregation to overcome some differences and unlock economies of scale/scope;
- Arbitrage to exploit differences and achieve absolute efficiency;

Implications of Distances for Personal Strategy: Focuses on the individual rather than the company, and discusses implications for personal development.