GLOBAL EMPLOYERS The Context for International Education George S. Yip Dean and Professor Rotterdam School of Management, Erasmus University

How Do Companies See the World? 2

The World by Population 3

The World by GDP 4

HOME BUSINESS Source: José de la Torre, UCLA The Internationalist 5

HOLDING COMPANY Source: José de la Torre, UCLA The Federalist 6

Global HQ Source: José de la Torre, UCLA The Global Maximizer 7

A Typical Multinational Today Canada: Marketing Subsidiaries United States: R&D Center Manufacturing Plant Mexico: Marketing Subsidiaries Germany: Eight Manufacturing Facilities Corporate Headquarters Russia: Kaliningrad Assembly Plant Brazil: Curitiba (Tritec Motors) United Kingdom: Four Manufacturing Plants South Africa: Rosslyn Manufacturing Plant Egypt: Kairo Assembly Plant Thailand: Rayong Assembly Plant Malaysia: Kuala Lumpur Assembly Plant Switzerland: Manufacturing Plant R&D Center China: Shenyang Joint venture with Brilliance China Automotive Indonesia: Jakarta Assembly Plant 8 8

The global company does not have to be everywhere, but it has the capability to go anywhere, deploy any assets, and access any resources. And it maximizes profits on a global basis. The Global Company 9

Global Market Participation Global Products Global Activity Location Global Marketing Global Competitive Moves Global Strategy Levers 13

Large Global Segment and Smaller National Niches National Segments Shift to Global Segmentation 14

Large Standardized Core Customized Periphery The Real Global Product 15

Hondas Global Accord 16

Competitors Customers Stakeholders Social Ethics Political Considerations Perception Regulations Technology Changes Competitors Customers Stakeholders Social Ethics Political Considerations Perception Regulations Technology Changes A World of Global Sourcing 19

Shift the Burden of Proof Old Assumption Act local unless you can prove otherwise New Assumption Act global unless you can prove otherwise 24

Many will work for emerging economy companies 25

Rise of Emerging Economy Firms 26

The world is getting flatter. And so are companies. Management 2.0 Implications for Graduates 28

Graduates Will Have to be Able to Work Anywhere with Anyone 10

Specifications of International Manager actively analytical willing to take risks action-oriented constructive not defensive multidimensional thought information from many sources sensitive to the needs of others delegate and trust live with ambiguity and complexity Source: Paul Sparrow (1999) in Pat Joynt and Bob Morton, The Global HR Manager, London: Institute of Personnel and Development, 1999

Globalizing the Educ. Inst. Business Model SCOPE Nature of Inputs Nature of Outputs Channels How Transform Inputs Nature of Customers ORGANIZATION DIFFERENTIATION

Globalizing the Business Model: Inputs What nationalities of students? What mix? Quotas or not? Proportionate to what? Global population Global GDP Employers Other demographics? Higher fees paid by foreign students 22

Globalizing the Business Model: Scope (Location) The false analogy with businesses Hard to recreate the production system Campus experience Reluctance of faculty to travel Full duplication very expensive and very rare Consider local competition Too late for China? 23

Globalizing the Business Model: Differentiation So Does Being International Really Matter? Not the primary differentiator Not the primary differentiator But as added value 24

Globalizing the Business Model: How Transform Outputs Technology? Univ. of Western Ontario, Ivey Schools three screen classroom Internet and Web? Only as supplement Language? 25

Globalizing the Business Model: How Transform Outputs, cont. Sourcing Faculty Nationality? Teachers or Researchers? Ladder or Adjuncts? Local or fly in? 26

Globalizing the Business Model: Channels Location of First Jobs The school as migration agency Mismatch with employer needs Unhappy graduates Manage expectations Major career services investment 27

Globalizing the Business Model: Nature of Customers Changing international needs of: Consulting firms Investment banks Multinational companies Emerging economy companies 28

Conclusions Educational Institutions have to globalize their business models But many ways to do it Pace of change is accelerating 29

Rate of Change When the rate of change inside the company is exceeded by the rate of change outside the company, the end is near. Jack Welch CEO, General Electric 30