Global strategy and its impact on local operations
Lessons from Gillette Singapore
* By Eric Aussmann & Amalia Insani
Universitas Gadjah Mada
International Human Resource Management
Lecturer: Dr. Budi Santoso
The case "Global strategy and its impact on local operations - Lessons from Gillette Singapore” underlines the difficulties of finding an adequate global strategy, which can tighten local integration in the interest of global goals.
Recently many myths and misunderstandings surround what is really meant by “global strategy”, which caused many companies to fail.
These myths are articulated in the case as follows:
Myth #1. That global is synonymous with international, meaning simply having a presence in other countries whether or not there is any connection among activities across countries.
Myth #2. That global strategy means doing everything the same way everywhere.
Myth #3. That globalizing means becoming a stateless corporation with no national or community ties.
Myth #4. That globalization requires abandoning country images and values.
Myth #5. That globalizing means tacking on acquisitions or alliances in other countries, without much integration or change.
Myth #6. That to qualify as global, a strategy must involve sales or operations in another country.
According to the case, to pursue a global strategy, companies need a significant share in key markets, a concentration of activities, a solid product offering, a uniform approach to marketing and a real integration of competitive moves across countries. To pursue company growth through different approaches global strategy requires also adaption.
This case study examines the global strategy in one of the world's most global companies: “The Gillette Company”. The experience of Gillette after the acquisition of Parker Pen emphasizes that mergers and acquisitions...
References: Kanter, Rosabeth M., and Thomas D. Dretler. "Global Strategy and Its Impact on Local Operations: Lessons from Gillette Singapore." Academy of Management Executive 12, no. 4 (November 1998): 60–68.
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