Question

We want to be local and global, small and big, radically decentralized with central reporting and control. If we can solve those contradictions, we can create real organizational advantage'. - The former CEO of ABB

Questions:
1- Based on the international corporate strategy, how can a company be local or global?
2- Does the corporate strategy (local or global) depend on the sector, customers or industry?
3- How can companies solve the contradictions of being local and global?

Answer 1

1) A company may be local if it is serving a particular region or restricted markets with limited products line. A global company will sell its products in more countries than to its home country customers. Many time companies, tap a particular global opportunity by launching its home based products or something can be added or modified as per the local market's need and preferences.

2) Yes , Being local or global also depends upon customers, sector or industry based factors. For example, Restaurant business may be offer non veg products in US but it may be force to offer vegetarian foods in Indian market due to religious beliefs of Hindu culture. Apart from this , Global packaging may be done with higher care and durability than local markets retail distribution. Companies may be forced to sell in global markets due to less scope in domestic markets or industry. Customers across the world may be demanding the products delivery.

3) Using strategic and global insights into its business , an organization may adopt both local as well as global business . Even, standardized products and services offerings can be offered to serve the global markets. It depends upon market conditions in domestic as well as in overseas markets. Many times local responsiveness may offer a confidence for expansion into global markets.