Thursday, February 14, 2008

The global/local paradox

It is not just markets that are globalizing, but companies are as well.

Being a globalized company means more than just having a single corporate HQ and selling abroad. It is the globalization of the HQ itself, with different senior corporate functions being located in many parts of the world.

In doing do, the company in effect becomes a local one. The global company mimics the behavior of an indigenous company because key corporate decisions are made within the country's boarders.... even though those decisions have global impact.

A company truly becomes global when it mimics a local company in as many different countries as it can.

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