global strategy hw

CULTIVATING A GLOBAL MINDSET

Professor Haibo Liu

How to be a successful global company?

• Discovering new market opportunities

• Establishing presence in key markets

• Converting such presence into global competitive advantage

• What is the pre-requisite?

What is Mindset

• What is it?

• Why is it useful?

What is Mindset

• It is cognitive schema, mental map, or paradigm

• It captures how people make sense of the world with which they interact

• It is a product of our own peculiar and at least partially unique histories

What is Mindset

• Mindsets serve as double-edged swords o (+VE) They allow us to avoid becoming paralyzed by the richness of

complexity of the information around us o (-VE) they can blind us to alternate views of reality or new information

• We operate in a paradox!

What is Mindset

• Every mindset represents a theory of what the world is like, or a knowledge structure o Differentiation: the number of elements in the person or organization’s

knowledge base o Integration: the person or organization’s ability to synthesize the various

elements

Why Mindset Matters

• In the mid-1970s, DEC was the world’s second-largest computer company and the market leader in the minicomputer segment.

• In 1977, Olsen observed that “there is no reason for any individuals to have a computer in their home.”

• What else happened in 1977 in personal computer industry?

Why Mindset Matters

• It is how we perceive the environment and ourselves that determines which opportunities and problems we go after  Problem identification

• The view that mindsets can differ and that they can have a powerful impact on corporate strategies

What is Mindset

• Consider a new product development team: o A. if it consists solely of technical experts o B. if it consists of experts from R&D, marketing, manufacturing, sales, etc. with poor

leadership o C. if it consists of experts from R&D, marketing, manufacturing, sales, etc. with a leader

who helps the team to synthesize the diverse perspectives

Low Differentiation High Differentiation

High Integration

Low Integration

What is Mindset

• Every mindset represents a theory of what the world is like, or a knowledge structure o Differentiation: the number of elements in the person or organization’s

knowledge base o Integration: the person or organization’s ability to synthesize the various

elements

What is Mindset

• Consider a new product development team: o A. if it consists solely of technical experts o B. if it consists of experts from R&D, marketing, manufacturing, sales, etc. with poor

leadership o C. if it consists of experts from R&D, marketing, manufacturing, sales, etc. with a leader

who helps the team to synthesize the diverse perspectives

Low Differentiation High Differentiation

High Integration A C

Low Integration B

Individual vs. Organizational Mindset

• Are they the same?

• What are the similarities?

Organizational Mindset

• The aggregated mindset of individuals adjusted for the distribution of power and mutual influence among the group oRelative power oSocial interaction oTurnover

• -Do you know what you don’t know?

Epistemology

About Knowledge - Epistemology

-Do you know what you don’t know? There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know.

~Donald Rumsfeld

United States Secretary of Defense

2002

https://www.youtube.com/watch?v=4GbWfNHtHRg

What is Global Mindset

What is Global Mindset • One that combines an openness to and

awareness of diversity across cultures and markets with a propensity and ability to synthesize across the diversity.

Does Every Company Need a Global Mindset?

Does Every Company Need a Global Mindset?

• There are companies in industries where the most efficient size of an operating unit is very small relative to the global size of the industry, or multidomestic industry o Eg. Nursing homes, hospitals, radio stations, cleaning services

• But there are at least two benefits:

• Makes the organization much more proactive in benchmarking and learning from their counterparts

• Makes the organization much alert to the entry of foreign competitors o Eg. The U.S. beer industry was controlled by two domestic companies-Anheuser-Busch

(50%) and Miller Brewing (20%) in 2002. o South African Breweries acquired Miller Brewing

Cultivating a Global Mindset • There is no limit to the extend that we can

explore the world’s diversity

• It follows the generic path of as the development of all types of knowledge: sequence of evolutions and revolutions

• Known unknown? Or unknown unknown?