Global Business
There are differing perceptions on ‘Globalisation’ and the ‘International model’. Recently during an event, I noticed organisations using these two words interchangeably. That is a huge faux pas in my opinion.
The point of this post is to highlight the fact that globalisation and the international models are two different concepts of modern day business. The business world is changing at a rate that would have been unimaginable in the past, due to technological advances. So let’s understand the real differences from a corporate perspective in terms of its reach and presence.
An international model refers to a company conducting business and being located in different countries. Most multinational companies set up or acquire subsidiaries that produce and market their products and services in other countries. They refer to themselves as "a global company"; however I'm skeptical about their claim. Going global does not mean just doing business abroad or acquiring an overseas company.
Globalisation in simple terms means the ability of an organisation to spread and replicate itself to virtually every corner of the world. There is a common culture, value set and process that knits all the units of the business together into one entity. In a true global company, there is harmony between the different units of the company, despite the differences in local cultures and values. People, resources and technologies work seamlessly across different countries, so that the company enjoys the maximum competitive advantage. In a global model, companies seek to integrate expansion into a worldwide strategy and maximise performance through effective sharing and integration.
Despite its revolutionary potential, the term globalisation is a rather misinterpreted word at present.
Globalisation is an effective way of removing internal boundaries and creating synergies for the entire organisation on a bigger scale, where as the international model is just a participatory
The point of this post is to highlight the fact that globalisation and the international models are two different concepts of modern day business. The business world is changing at a rate that would have been unimaginable in the past, due to technological advances. So let’s understand the real differences from a corporate perspective in terms of its reach and presence.
An international model refers to a company conducting business and being located in different countries. Most multinational companies set up or acquire subsidiaries that produce and market their products and services in other countries. They refer to themselves as "a global company"; however I'm skeptical about their claim. Going global does not mean just doing business abroad or acquiring an overseas company.
Globalisation in simple terms means the ability of an organisation to spread and replicate itself to virtually every corner of the world. There is a common culture, value set and process that knits all the units of the business together into one entity. In a true global company, there is harmony between the different units of the company, despite the differences in local cultures and values. People, resources and technologies work seamlessly across different countries, so that the company enjoys the maximum competitive advantage. In a global model, companies seek to integrate expansion into a worldwide strategy and maximise performance through effective sharing and integration.
Despite its revolutionary potential, the term globalisation is a rather misinterpreted word at present.
Globalisation is an effective way of removing internal boundaries and creating synergies for the entire organisation on a bigger scale, where as the international model is just a participatory