(1) Global Product Strategy
“The benefits of global products can be achieved by standardizing the core product or large parts of it, while customizing peripheral or other parts of the product.” E.g., most of Sony’s consumer electronic products are primarily standardized except those parts that depend on national electrical standards. Honda has gone to a system of limited, standardized platforms for its production activities worldwide. Accordingly, some have described global product strategy as a process of “standardizing wherever you can and customizing where you must.”
(i) What are the factors that are driving more and more firms to pursue a global product policy? Please briefly describe these. Which of these factors (two or three) do you feel are most important in terms of their potential to drive a firm, of your choosing, in the industry that interests you most (e.g., automobiles, banking, aviation) to offer increasingly “global” products? Why? Please elaborate your answer.
(ii) In developing global products, what strategy(s) should the firm follow, for maximal effectiveness? Please elaborate.
(iii) It is a mistake to assume that global product strategy simply implies offering the same product, using the same marketing and other approaches, worldwide. Based on your understanding of chapter 4, please describe the circumstances under which it is appropriate (or even necessary) to customize products to buyer needs abroad.
(2) Leadership Challenge
Globalization is transforming the world’s economies into a single borderless frontier. Global strategy takes advantage of this transformation via a world-scale integrated, coordinated approach in which the whole world is seen as the firm’s marketplace. Please make ample use of examples to illustrate the points you wish to make.
1. In your own words, describe this transformation both qualitatively and quantitatively. What is the significance of this transformation for US businesses as well as for the organization for which you work?
2. In your own words, define a global mindset. Why, in your opinion, is a global mindset necessary for US managers? What are the most important characteristics of a global mindset and how do they contribute to an organization’s success both inside and outside of the US?
3. What are the principal leadership challenges in developing and implementing a global mindset? Please analyze this question from strategic, tactical and operational perspectives and consider perspectives drawn from theory as well as your own personal experience. Please discuss the particular challenges faced by your organization.
