1. Welcome to class of Global Manager Dr
Welcome to class of Global Manager Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada

2. Objective To develop Global Manager
Understand culture
Function in new environment
Create structure
Implement strategy …
No premature return from long-term assignment from abroad
Costs of failure can be very high
Diversified MNCs have special issues

3. Diversified MNC Managers Face Substantive Issues
Integrate large intl. acquisitions
Build worldwide logistic capability - 5Cs
Character, cost, coverage, control, continuity
Develop country-specific strategies
political and economic environment
Form beneficial collaborative arrangements worldwide
Balance pressures for global integration and local demands
 Need certain set of traits and skills

4. Global Manager Traits: Now vs. Future

5. Skills of Global Manager
Global mindset
Beyond learning culture and language
Ability to
1 develop and use global strategic skills
2 manage change and transition
3 manage cultural diversity
4 design and function in flexible orgn structure
5 work with others and in team
6 communicate
7 learn and transfer knowledge in an orgn.

6. 1 Global Strategic Skills
No parochial views
Flexible – required in different culture
Good knowledge of
International relations, Foreign affairs
Global financial markets
Exchange rate movements (interest, inflation…)
Standardization vs. customization
Local yet should fit global strategy
Detergent: liquid vs. solid (Europe)
Retailing: family/value pack vs. sachets (EM)
McDonald (beer), KFC (rice)

7. 2 Change and Transition Change Managers must agree with the strategy
Unstable environment – ongoing challenge
Switch b/w standardization «» customization
Needs reorganization of resources
Human, technology, marketing, distribution…
Managers must agree with the strategy
Otherwise poorly implemented
Country Mgr feel lost control  Resignations
Moved from customization  standardization (HO)
Transition through Alliances or IJV
Alliances/IJV more difficult to change than wholly-owned subsidiary
Requires multiple trusting relationship

8. 3 Cultural Diversity - EPRG
SRC: Self Reliance Criteria
one’s own cultural values, experiences, and knowledge as a basis for decisions
EU ↑ multicultural than US Canada
↓ multicultural may be ↑ conflicts
HO culture sh’d not dominate entire orgn culture
Ethnocentric: HCN, reward, HO superiority, ↑ control, ↓ risky venture – export, sales affiliates
Polycentric: Recognize diff, have confidence, local
Regiocentric: Recognize regional differences
Goecentric: Optimize resources, best practices, superiority is not based on nationality.
Performance: Geo>Regio/Poly>Ethnocentric

9. 4 Flexible Orgn: Design and Function
Learn, responsive and efficient
Help people do more effectively
Develop strategic thinking and action
Open communication of plans
Alignment bw HO and BO re. decision-making
High tolerance for ambiguity
Coordinate within and bw LOB
Financial, HR, marketing, manufacturing…
Identify SCA and prioritize across different locations
Accommodate the new structure and process

10. 5 Working with People, Team
Due to specialization of people, complexity
What is team
IJV partners, suppliers, customers…
Becomes clear county requirement
Accounting
Economic reality vs. just standard accounting
Accounting vs. legal requirements are met
So, team develops intl. auditing standards
Operations  relationship oriented…
Participation in global team  global outlook  global manager
Ex- International Journal production

11. 6 Communications… Diverse Group Global communications – effectiveness?
Multilingual
Cross-cultural awareness
Particularly important in advertisements
Lawsuit launched against global media by local media
Global media wish to retain advertising revenue
Local media wish to control advertising content
Sensitivity to colleagues, customers…
It leads to forming trust
Becomes corporate Culture
Shared Global value system
Global communications – effectiveness?
Ex. Kellogg Cereals, perfumes…

12. 6 Communications…

13. 6 Communications 

14. 7 Knowledge Transfer Globally competent  highly curious
Experiment, take risks – calculated vs blind
MNCs use the knowledge gained by Mgrs and transfer effectively in another country
Corporate management responsibility
Not all MNCs do that
Particularly, if mgr re-enter home country
Ex: a visitor may learn > local, then wrote a book!