Have You Restructered for Global Success?

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Harvard Business Review Reflection
Course name: Introduction to International Business
Subject matter: HBR Reflection
Details article
Title:Have You Restructered for Global Success?
Author:Nirmalya Kumar and Phanish Puranam
Journal:Harvard Busniss Review
Date of publication:October 2011

BHM Have You Restructured for Global Success?

Introduction
The article at hand ‘Have You Restructured For Global Success?’ written by Nirmalya Kumar, professor of marketing and Phanish Puranam, professor of strategy and entrepreneurship, at London Business School. They also are the codirectors of the school’s Aditya Birla India centre and the coauthors of India Inside: The Emerging Innovation Challenge to the West . It was published in the Harvard Business Review in October 2011, pages 123 – 128.

The article argues that companies should adapt to a new structure, the T-shaped country organization structure, since the existing structures are, according to the author, not sufficient enough to tap into the full potential of emerging markets.

Summary
Because of the enormous grow of emerging markets in the first decade of the 21st century multinationals were eager to develop new strategies. However, structural changes have been slow. According to the authors, the three existing structures (the front-end/back-end structures, the matrix structures and the transnational structures) are not sufficient enough to tap into the full potential of emerging markets because of three reasons. The first reason is; as of late China and India are major sources of demand with distinct consumer needs. Existing structures don’t longer anymore respond adequate to these needs in these two markets. The second reason is; China and India are becoming important sources of talent in innovation with a self-perpetuating character. The third reason is; because china and India are becoming now a company’s largest market and major source of innovation, companies have to...
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