Professor Susan Segal-Horn, Emeritus Professor gave a guest lecture on Understanding Global Strategy to the Frankfurt OU Business School Alumni Network in November. Beatrix Polgar-Stuewe summarises the event below.
Global Village: Myth or Fact?
Is the world a "Global Village"? Does the global consumer exist? Or is there a trend toward regionalization when international business strategies are developed?
Susan Segal-Horn, provided a comprehensive analysis as well as her own opinion in her presentation on these and other questions on the fundamentals of global strategies.
The British professor and academic MBA module author came at the invitation of The Open University Business School Alumni Association to Frankfurt. Around 40 MBA alumni avidly followed her charismatic speech on the political, social and economic aspects of global strategies of large companies in the Deutsche Bank building.
The British researcher defined globalization as the integration across various economic activities across borders. Globalization poses a fundamental strategic orientation of an international company that sees the world as a largely homogeneous population, and accordingly sought after product and process standardization to achieve competitive advantage through cost reduction and economies of scale and scope. Professor Segal-Horn said, “globalization does not globalize individual countries, but leads to stronger market interconnections between the countries with social and political consequences. Opponents of globalization fear that it would create an exploitation of national markets, where the winners and losers are always dependent on the size ("Big firms always win").”
The professor reasoned that according to her research, there is no global village, not one global market or a global consumer. Ultimately, the world economy is characterized regionally. There are so many totally different national, regional and supra-national laws and enormous cultural differences that global companies must consider in their strategies to be successful in the relevant market. "To be accepted by the consumer, the burgers at a global fast-food chain vary in taste from country to country. E.g.in France, red wine will be offered with the hamburger, which would be anathema to us," Susan explained as an example. A well-known manufacturer of baby diapers experienced an unpleasant outcome to the market launch in Japan, in spite of significant research to marketing and sales in the region: The diapers offered for Japanese newborn were too big and therefore unusable.
Susan Segal-Horn explained the “Base of the Pyramid” principle which taps the relatively untapped market potential of those living on basic income in emerging markets. Multinational corporations need very different international strategies; they develop different products and services, suitable for much lower average incomes. Such strategies have included micro-finance loans, the design of a $100 computer and the Tata 'Nano', a $2000 car.
The British researcher defined globalization as the integration across various economic activities across borders. Globalization poses a fundamental strategic orientation of an international company that sees the world as a largely homogeneous population, and accordingly sought after product and process standardization to achieve competitive advantage through cost reduction and economies of scale and scope. Professor Segal-Horn said, “globalization does not globalize individual countries, but leads to stronger market interconnections between the countries with social and political consequences. Opponents of globalization fear that it would create an exploitation of national markets, where the winners and losers are always dependent on the size ("Big firms always win").”
The professor reasoned that according to her research, there is no global village, not one global market or a global consumer. Ultimately, the world economy is characterized regionally. There are so many totally different national, regional and supra-national laws and enormous cultural differences that global companies must consider in their strategies to be successful in the relevant market. "To be accepted by the consumer, the burgers at a global fast-food chain vary in taste from country to country. E.g.in France, red wine will be offered with the hamburger, which would be anathema to us," Susan explained as an example. A well-known manufacturer of baby diapers experienced an unpleasant outcome to the market launch in Japan, in spite of significant research to marketing and sales in the region: The diapers offered for Japanese newborn were too big and therefore unusable.
Susan Segal-Horn explained the “Base of the Pyramid” principle which taps the relatively untapped market potential of those living on basic income in emerging markets. Multinational corporations need very different international strategies; they develop different products and services, suitable for much lower average incomes. Such strategies have included micro-finance loans, the design of a $100 computer and the Tata 'Nano', a $2000 car.
Since the Euro crisis also European countries and not only emerging countries (which are relatively "debt free") are affected by BOP models. Due to the high public debt of certain EU countries (currently referred to as PIIGS: Portugal, Italy, Ireland, Greece and Spain), the prevailing high unemployment and the associated impact on the markets, companies are faced with completely new strategic, industrial, ethical responsibilities and challenges. But they also will be confronted with additional risks arising through differences in legal, financial and business infrastructures.
Numerous case studies and current examples from Susan Segal Horn's research were incorporated into the newly structured MBA modules of The Open University Business School.
As a Professor of International Strategy at the Open University Business School, Susan Segal-Horn was production chair for international strategy in the MBA modules. Previously she was Professor of International Strategy at the University of Kent, and worked several years in the Strategy Group at Cranfield School of Management. She held a visiting professorship in International Business from the Ecole Nationale de Ponts et Chaussee in Paris, and in Corporate Strategy at the Graduate School, University of Notre Dame, USA. Professor Segal-Horn serves as a consultant and facilitator for strategy workshops in the UK and worldwide. Her research focuses on the globalization of industries and firms. She specializes in global strategies in the service sector and in multinational services companies. She is also a sought-after speaker at international conferences. She has published five books and over 90 scientific papers. By 2005 she was the editor of the European Business Journal. She is currently working on her sixth book on globalization.
Visit here for more information about the MBA.
Numerous case studies and current examples from Susan Segal Horn's research were incorporated into the newly structured MBA modules of The Open University Business School.
As a Professor of International Strategy at the Open University Business School, Susan Segal-Horn was production chair for international strategy in the MBA modules. Previously she was Professor of International Strategy at the University of Kent, and worked several years in the Strategy Group at Cranfield School of Management. She held a visiting professorship in International Business from the Ecole Nationale de Ponts et Chaussee in Paris, and in Corporate Strategy at the Graduate School, University of Notre Dame, USA. Professor Segal-Horn serves as a consultant and facilitator for strategy workshops in the UK and worldwide. Her research focuses on the globalization of industries and firms. She specializes in global strategies in the service sector and in multinational services companies. She is also a sought-after speaker at international conferences. She has published five books and over 90 scientific papers. By 2005 she was the editor of the European Business Journal. She is currently working on her sixth book on globalization.
Visit here for more information about the MBA.
For more information on The Open University Business School in Germany please visit www.open.ac.uk/germany
