A Model for Expanding Your Business Into Foreign Markets

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Harvard Business Review, 5/17/24:  It used to be thought that globalization would flatten out cultural differences among countries and regions of the world, making it easier than ever for companies to move into foreign markets. 

According to a new study by the author [Joshua Conrad Jackson] and a colleague, however, cultural differences are greater today than they were 40 years ago, which explains why some major corporations have failed in their recent efforts to establish a foothold in new countries.

Companies need to adapt, the author argues, and to that end in this article he presents a general model for global leadership in the face of cultural divergence.

According to Harvard, the Global Economy Is Doing Better Than Expected

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Summary from Harvard Business Review:  The economy is ending 2023 in better shape than expected. Most importantly, inflation is falling in much of the world and some central bankers have signaled likely interest rate cuts in 2024. But risks remain as higher interest rates work their way through markets. Geopolitics also looms large.

As 2023 comes to a close, the global economy is, in many ways, doing better than expected. The U.S. not only avoided a recession but has grown at a steady clip. Unemployment has been low and, crucially, inflation is falling in most of the world.

And yet, the economic outlook remains deeply uncertain.  Find out why here.

On another note, Harvard seems to be turning their cheek to plagiarism, attempting to take the low road on an issue that is so important to all authors, not just Presidents of Ivy Leagues universities.  Shame on them.  Read this piece and tell me that the statement they make is true:  "First and foremost, we thank [Harvard University] President Gay for her deep and unwavering commitment to Harvard and to the pursuit of academic excellence."  Academic excellence?  Really?  Since when is any form or shape of plagiarism okay? 

Great Global Leaders Tell It Like It Is

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As thought leader Ron Ashkenas writes for the Harvard Business Review:

Great leaders tell it like it is. In other words, they focus on reality, no matter how painful or unpleasant it might be, and then figure out what to do about it. In contrast, less effective leaders sometimes avoid hard truths, argue with the data, and delay tough decisions.

Read the entire article:  The Dangers of Denial

How Global Small Businesses Should Prepare for the Emerging Global Internet Access

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Jim Cashel, for Harvard Business Review, says it is reasonable to predict that, in the next three to five years, most of the planet will have some access to reliable, if somewhat expensive, broadband. That means over three billion people will be, for the first time, directly connected to the global economy.  He goes on to say:

The business community should consider this emerging market with astonishment, if for no other reason than its vast size. It will present challenges in terms of economics, geography, language, and demographics. But businesses that are aware of the changes to come, that appreciate the speed and reach of global broadband expansion, and that prepare appropriately for new markets will enjoy a range of unprecedented opportunities. Specifically, businesses should prepare in four areas.

Learn about the four areas here and how businesses should prepare for the Global Internet Access.

About Jim Cashel:  Jim Cashel is Chairman of Forum One, a digital agency, and author of The Great Connecting: The Emergence of Global Broadband, and How That Changes Everything. During academic year 2018-19 he was a Visiting Fellow at the Harvard Kennedy School.

Be Ruthlessly Selective

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The Global Small Business Blog helps you take your business global, which means increased revenues and profitability for your business.  Global expansion typically makes you become bigger -- number of employees, new markets and new products, for example.  Yet bigger on everything isn't always better.

For example, to get answers to growth challenges, your inner circle of confidants should stay small.  Oh really, you ask, when your LinkedIn, Twitter and Facebook fans might number in the thousands?

According to Harvard Business Review, they have advice on how to shrink it.

Here's one of their tips:

In other words, you need to be ruthlessly selective, because everyone in your core group also has an inner circle with which you will ultimately be connected, and those people will have an inner circle, and so on. 

They go on to say, "Carefully curate your most trusted, inner circle and you’ll be surprised at how much more valuable you’ll become to the larger community of people in the world who care about the same things you do."

How to Launch a Successful Online Platform

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According to Benjamin Edelman for Harvard Business Review, the first question an entrepreneur should ask when launching a digital platform is whether they can quickly attract a large group of users.  And that depends on at least one of two conditions being met.

Find out what they are here.

4 Executives Share Their Experiences Managing Global Organizations

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Harvard Business Review asked four executives to share their experiences managing global organizations.

1. Luc Minguet, head of group purchasing at Michelin, a global tire company based in France, describes how the tire maker trains managers to embrace cultural understanding and flexibility.
2. Eduardo Caride, regional director for Spanish-speaking countries in Latin America at Telefónica, the Madrid-based fixed and mobile telephony company, explores the benefits of moving managers across borders.
3. Takeo Yamaguchi, corporate officer for human capital at Hitachi, a Tokyo-based conglomerate with operations worldwide, details the conglomerate's efforts to create standardized HR practices across 948 companies.
4. Shane Tedjarati, president and CEO, global high-growth regions at Honeywell (Shanghai-based), discusses how the industrial powerhouse is shifting its strategy toward new regions, such as China, India, Vietnam, and Indonesia.

Read:  Voices from the Front Lines - Harvard Business Review

The Global Citizen Sector

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Citizen sector is defined by Bill Drayton, CEO of Ashoka and Valeria Budinich, founder and chief entrepreneur of Ashoka’s Full Economic Citizenship Initiative, as:

... the term we use to define the millions of groups established and run by mission-minded individuals across the globe who are attempting to address critical social needs—has long been regarded as understaffed and inefficient. But that has changed. We work with some 3,000 social entrepreneurs worldwide, and over the past 30 years we’ve seen the citizen sector catch up with business as it has increased its productivity, size, and reach. Its organizations are attracting talented and creative leaders, and their work is changing the game in critical industries and areas such as energy and health care.

Read more about this at "A New Alliance for Global Change," but you cannot access the entire article without first subscribing or purchasing a single copy PDF over at Harvard Business Review. And once there, you might also pick up a copy of, "Can Entrepreneurs Save the World?"

Related piece here (blog post by Ashoka).

Here's What Works in Entrepreneurship Across the Globe

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This is a phenomenal article by Daniel J. Isenberg in the June 2010 Harvard Business Review. One of the best I've read in a long time on entrepreneurship. Well researched, good case study references, excellent country specific examples and terrific insight into the nine prescriptions for creating an entrepreneurship ecosystem.

Isenberg is no stranger to entrepreneurship with international wings. He also authored, "The Global Entrepreneur," December 2008 for HBR.

Please take the time to read, "Start An Entrepreneurial Revolution," in its entirety. The best part is near the end where Isenberg challenges us by posing the question:

Do you have a strong entrepreneurship ecosystem?

Do you?
Note: added 5/24/10 at 9:35 p.m. CDT, an audio IdeaCast:

How To Create An Entrepreneurial Economy (Daniel Isenberg, professor of management practice at Babson College and author of the HBR article "The Big Idea: How to Start an Entrepreneurial Revolution." Copyright 2010 Harvard Business School Publishing)

Drucker Delivered Direct To Your Door

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I am a big, big fan of Peter Drucker and I just noticed in marking the 100th anniversary of Peter Drucker's birthday that Harvard Business Review has some thought provoking essays written by Harvard folks as well as a feature on Drucker's classic contributions.

No matter how you look at it, Drucker was a tremendous force and influencer in the business world, especially on management thinking. If you can, take the time to review some of this information. It might make the difference between operating from good to great with your global small business.

Drucker Today

By Rosabeth Moss Kanter

While Peter Drucker was alive, he sounded early warnings about sky-high executive pay, an ossified auto industry, and emerging — market threats to U.S. economic dominance. It's not too late to benefit from his advice.

By Alan M. Kantrow

Peter Drucker's writings offer distilled, articulate analyses of modern business management. But, more important, they are a case study in how to think. Five leaders describe Drucker's influence on them in essays that accompany Kantrow's 1980 article.

By Tammy Erickson

We're not quite there yet, but, as usual, Peter's clear vision paints a picture of a world that is looking increasingly likely.

Classic Drucker Articles

Managing Oneself
Drucker challenges readers to take responsibility for managing their futures, both in and out of the office.

What Makes an Effective Executive
Eight simple practices — and one rule — every executive needs to follow to be effective.

What Executives Should Remember
A compilation of the savviest management advice Drucker offered HBR readers over the years.

The Theory of the Business
What happens when the assumptions on which an organization has been built no longer fit reality?

What Business Can Learn from Nonprofits
The best nonprofit organizations are pioneers in motivating knowledge workers and raising their productivity.

All of it can be found here.

And visit The Drucker Institute.

Separately, it appears the Google tag issue has been resolved on our blog.

Is Globalization The Most Secure?

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The most secure as compared to what?

Of all the trends we followed before the crisis, globalization seemed the most secure. Today, however, big and important question marks hang over some aspects of global economic integration.

See what the verdict is here.

To Go Global, Or Not To Go Global?

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That is the question and reluctantly I answer with, "You should not go global when you do a lousy job selling a product or service locally."

The truth hurts but the folks at Harvard Business Review have just come out (December 2008) with a far more eloquent way of guiding us on When You Shouldn't Go Global. Unfortunately, to learn more, you will have to either buy the article online for U.S. $6.50 or go to your local bookstore to pick up a copy.

Here's one interesting point made in the abstract:

Global efforts can be rendered counterproductive through unanticipated collateral damage.

Bottom line: You don't want to move full speed ahead toward failure. The article could very well help you avoid missteps. Check it out.