| Business has become the prevailing metaphor | | | | and innovative behaviour patterns. Thus in |
| of our times. | | | | the global organization, the strategy and |
| | | | structure is without national boundaries. The |
| A new world order is now reflected, for | | | | heart of the global organization is its |
| example, in the breaking down of market | | | | culture, its vision, mission, policies, |
| barriers across the globe also throughout | | | | procedures, systems and practices. |
| negotiated trade blocks or through | | | | |
| wide-ranging worldwide deregulation of local | | | | Global mindset is the foundation for business |
| markets, or political turmoil as in South | | | | competences such as managing competitiveness |
| Africa, Germany and the earlier communist | | | | and managing uncertainty. It is an |
| regimes. Transnational business has increased | | | | orientation to the world; it represents a |
| by leaps and limits and global competition | | | | certain curiosity about the world, to see |
| and globalized business is now the new order. | | | | goals and objectives against larger backdrops |
| | | | and time frames; it provides explanation and |
| A number of developments have contributed to | | | | meaning for events and guidance for |
| the globalization of business. Advances in | | | | one′s behaviour. |
| computer-assisted design and manufacturing | | | | |
| and robotics have reduced the dependency on | | | | The global mindset has sometimes been thought |
| labour, increased production efficiency and | | | | of as an inherent personality trait. Many |
| increased market flexibility by reducing | | | | multinationals have sought to recruit rather |
| economic order quantity. Advancements in | | | | than develop such skills. However, there has |
| transportation have shrunk the distances | | | | not been any empirical validation of the |
| between resources, processing and markets. | | | | existence of this alleged overseas type |
| Rapid technological developments have led to | | | | personality. |
| the emergence of new products and services | | | | |
| and thereby new business and new industries. | | | | Does the global mindset translate into |
| The technology-driven competitive edge is | | | | organizational consequences? It certainly |
| coming to be more and more temporary as new | | | | does. The mindset surfaces in terms of three |
| technological breakthroughs are reaching the | | | | strategic leadership thrusts which may be |
| markets sooner than ever before. The reliance | | | | different in detail and scope at different |
| on complex technologies has at the same time | | | | levels of the organization, but nevertheless |
| increased the potential for enormous | | | | are there. |
| ecological disasters such as those of the | | | | |
| Union Carbide in Bhopal and Exxon Valdez in | | | | These leadership thrusts in turn result in |
| Alaska. | | | | business-goal outcomes (i.e. production, |
| | | | marketing), and attitudinal outcomes (i.e. |
| Electronic mail, facsimile transmission, | | | | employee focus on service, quality). These in |
| tele- and video-conferencing has made it | | | | turn ensure continued customer goodwill, |
| possible for people within and across | | | | long-term survival and company progress |
| organizations, spread over vast geographical | | | | towards true globalization. Such consequences |
| distances, to share information instantly. | | | | in turn reinforce the mindset. |
| Goods and services are routinely ordered | | | | |
| through home shopping networks and banking is | | | | In the new world order, businesses have to |
| done from remote locations. | | | | expand and manage people who can think, lead |
| | | | and act from a broader or global viewpoint. |
| Globalization of a given business seems to be | | | | This global perspective or mindset creates a |
| a multi-stage process. Many phases are gone | | | | capacity in the managerial ranks to turn |
| through before a firm can be called a truly | | | | threats into opportunities; to motivate |
| global company. The stages may be designated | | | | people not just to survive, but to excel, to |
| as domestic, export, international | | | | take innovations to the market place at an |
| multinational, and global. | | | | increasingly faster pace; to operate through |
| | | | use of teams; and to take advantage of |
| When an export company establishes its | | | | diversity within and without. |
| manufacturing or distribution facilities | | | | |
| abroad it becomes international. For example | | | | Also, many centuries often coexist within a |
| Phillips moved its long-range technology | | | | given country. There may be a nuclear power |
| development centre from the US to the Far | | | | plant on the one hand and yet within sight we |
| East to take advantage of longer term | | | | may see cow dung being used as heating fuel. |
| thinking and reward patterns. IBM and DEC | | | | A broad long-term global stance is a definite |
| moved their research and development | | | | asset for such managerial tasks even without |
| facilities to Italy known for its intuitive | | | | any pressure of overseas competition. |