BU491 Chapter 7: Chapter 7 Implementing the Strategy - Building Multidimensional Capabilities
BU491 Chapter 7
Implementing the Strategy: Building Multidimensional Capabilities
The world is changing rapidly, and requires managers who can sense changes in the
environment and adapt to them
Even with the best strategies, you will fail without having good managers
Global Business Management
The global business manager needs to be able to identify risks and opportunities across borders
and then coordinate activities to actually capture the benefits
These are the 3 core roles of the global business manager:
Global Business Strategist
Only a truly global business manager can identify capabilities of an org on a worldwide level
This manager determines how the business will compete in a foreign market
To promote someone worth of being a global business manager, you should make sure they’ve
been a country manager or something similar
oDon’t just take a domestic guy and make him responsible for global because the subs
will feel like he is not taking their local market into consideration
This person doesn’t necessarily need to be in the home country
Architect of Asset and Resource Configuration
The GBM needs to determine which resources go where around the globe (obviously they don’t
have to do this alone but they lead the debate)
You can’t totally ignore your company’s past
oMoving around assets must build on the benefits that are embedded in your existing org
structure
i.e. laying off people will result in some social negativity
You want to shape the future configuration similar to the integrated network model
Cross-Border Coordinator
The GBM has to decide where to source products and how finished goods flow through
countries
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Worldwide Functional Management
This manager is responsible for functions such as R&D, marketing, manufacturing, etc.
They are supposed to support line managers by diffusing innovations on a worldwide basis
The transfer of knowledge in each specific function will vary by company
3 core roles of the worldwide functional manager:
Worldwide Intelligence Scanner
Most innovations are motivated by some kind of response to a threat or opportunity
oi.e. you notice that alternative fuel methods are becoming a consumer trend you
respond to it with solar, wind, etc.
oIf you weren’t scanning and weren’t aware of this trend, then you’d be panicking
because you’re late to the party when all your competitors are releasing renewable
energy sources
However, awareness alone isn’t enough!
oNeed to communicate this out to everyone without them ignoring you (also a huge
problem is ensuring they understand you, because you’re very specialized)
Functional managers are usually connected through the informal network
oFrequent meetings allow them to transfer information around the globe
Cross-Pollinator of “Best Practices”
Subsidiaries are worth more than just sources of strategic intelligence, you can gain new
capacities and expertise that can be transferred around the world
oA lot of innovation will come from subs
They’re cross-pollinators because they have specialist information but also large informal
networks of contacts where this information can be pollinated
oThese networks also allow them to discover new innovations in other subs
Champion of Transnational Innovation
The WIS can identify local innovations that are useful in another part of the globe
Not only that, but it can coordinate global innovation by leveraging strengths in various
countries around the globe
oi.e. strong R&D center in UK, engineering in Poland, manufacturing in India, etc.
Geographic Subsidiary Management
find more resources at oneclass.com
find more resources at oneclass.com
