Nowadays with globalization in every CEO’s mind, global companies must take their resources capabilities and overall knowledge of the markets at home and overseas to make the much needed transition from pure multinational to transnational companies.
Now more than ever, the global ambition is not about where you are, but about how you are at where you are!
Global CEO’s must take in account that is really necessary to think globally while acting locally. Although the CEO can see the world market as its playground there should be clear coordination of his global teams in order to “walk-the-walk” of meeting the needs at each country of presence.
The global decisions are not to be taken lightly as local stakeholders must be taken in account.
The global company must be more and more concerned with its social responsibility and with its obligations towards local suppliers, partners, customers and shareholders. A misstep or an error will be scrutinized at a global stage with global repercussion.
Although staying true to its global identity, the company should live and breathe the believe that to each country its culture. This is the correct way to create the roots for a sustainable and viable business with strong local relationships that will add value to the company’s international identity as a whole.
In today’s depressed economy, the cost of acting locally must be taken as an investment in the future of the internationalization process of the strategic business units. It must be done responsibly and effectively taking in account that a downsizing in the budget today could incur in an important disadvantage in the future concerning the competition.
It is paramount for the global CEO to face this challenge in order to further set the standard towards the market and making the success story of a contemporary transnational company.