1 Going global: How to succeed in International Business! (29 pages)

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10 Global Management: A dance with icebergs

Mahbubani accused the West of having selective vision with re-
spect to issues like human rights and, within this context, deliber-
ately made a point of reference to Guantanamo Bay.

Globalization is complex and the rules for international econom-

ic cooperation have become much more complicated.

Medium-

sized German companies like to think that they are already global
in scale if they export to several countries. This is a mistake and,
in the medium-term, the surest road to failure

”, says Gunter Denk,

co-author of

Asia for Professionals

10

. In a multipolar international

economy, global management no longer means simply exporting
finished goods into foreign markets, or exploiting cheap labor in
emerging markets, all the while claiming that production and quali-
ty standards are consistent with the regulatory standards of the
home office. If Germany wants to maintain its position as a leading
global exporter, it will need a stronger local presence in target
markets and a better understanding of their business partners.

China

established itself as the world’s top exporter in 2009.

Whoever wants to do business in this economic powerhouse is
obligated by the Chinese government to work with local suppliers
and businesses. Whoever wants continued success in emerging
markets needs to tailor their products and marketing strategy to
satisfy local customer preferences. And whoever wants a slice of
the pie of bigger projects is increasingly required to work with a
number of different partners from various cultural backgrounds.
There is a need for mutual cooperation, with partners who respect
each other as genuine equals, as opposed to imposing one-sided
methods on the ‘export’ partner. Unfortunately, the reality is rather
different. Cooperation between Europeans and Asians is just one
example. The difficulties that the U.S. supermarket chain Wal-Mart

10

Source: www.china-briefing.com

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