Global Management

1. Global Management

2. Global Consistency One Market Homogeneous Customers Standardized Products Services controlled by one Headquarters Centralized power and decision making

3. Global ConsistencyExample 1 Reuters Uniform product Uniform training

4. Global ConsistencyExample 2 Pepsi-Cola International Shared value system Shared vocabulary Individual Performance

5. Global ConsistencyExample 3 Tech Team Global From regional to global Increased efficiency Workforce reduction

6. Local Adaptation Company modifies its rules, guidelines, and daily procedures to adapt to foreign customs and regulatory agencies. Changing the way you produce goods and advertise in the foreign market.

7. Positives Enables you to adapt to cultural differences in the foreign market. Allows your company to build a unique identity all over the world. Competitive Advantages Market Adaptation

8. Negatives It is expensive Lose the cost efficiencies and productivity that result from standardized rules and procedures No company wide mission statement

9. Proctor and Gamble Adaptation Strategy put to use within the P&G company. mid-income (Tide) higher income (Ariel) male (Gillette) female (Always) normal hair (Herbal essences) special care (Pantene), special need (Head and Shoulders) "The company provides products for a wide range of customers: mid-income (Tide), higher income (Ariel), male (Gillette), female (Always), normal hair (Herbal essences), special care (Pantene), special need (Head and Shoulders), etc. The product portfolio diversification is one of the company's growth strategies. This is done by acquiring new products, such as Gillette or by engaging in strategic partnership, such as the one with Wrigley Co. "The company provides products for a wide range of customers: mid-income (Tide), higher income (Ariel), male (Gillette), female (Always), normal hair (Herbal essences), special care (Pantene), special need (Head and Shoulders), etc. The product portfolio diversification is one of the company's growth strategies. This is done by acquiring new products, such as Gillette or by engaging in strategic partnership, such as the one with Wrigley Co.

10. Why it works for P&G Philosophy= adaptation is key for success Senior management at P&G buy-in They include ethnic agency business partners in their marketing strategy, labeling them as �partners� Proctor and Gamble invests in relevant research, helping them gain an edge over competitors **Brooklyn Dodgers when they signed Jackie Robinson. It was a tough time back then for a Black ballplayer. But the Dodgers weren't trying to advance the cause of civil rights. They signed Robinson because they wanted to win. P&G embraces multicultural marketing because they, like the Dodgers, want to win! First, P&G's overall philosophy toward multicultural marketing is that it is key to their business success. It is an important driver for maintaining current and attracting new business. Second, the success of multicultural marketing, like any marketing effort, must have senior management buy-in along with the company's commitment to the plan. P&G's senior managers not only sanction multicultural marketing, but are actively engaged and involved in the process Another characteristic of P&G's best-practice approach is the inclusion of ethnic agency business partners in their marketing strategy discussions early and often, thus recognizing the agencies as full partners during the process. "Partner" is the key word here. Additionally, P&G invests in relevant research, has a number of ethnic female upper level managers, is listed as one of Essence Magazine's top 50 companies for Black women **Brooklyn Dodgers when they signed Jackie Robinson. It was a tough time back then for a Black ballplayer. But the Dodgers weren't trying to advance the cause of civil rights. They signed Robinson because they wanted to win. P&G embraces multicultural marketing because they, like the Dodgers, want to win! First, P&G's overall philosophy toward multicultural marketing is that it is key to their business success. It is an important driver for maintaining current and attracting new business. Second, the success of multicultural marketing, like any marketing effort, must have senior management buy-in along with the company's commitment to the plan. P&G's senior managers not only sanction multicultural marketing, but are actively engaged and involved in the process Another characteristic of P&G's best-practice approach is the inclusion of ethnic agency business partners in their marketing strategy discussions early and often, thus recognizing the agencies as full partners during the process. "Partner" is the key word here. Additionally, P&G invests in relevant research, has a number of ethnic female upper level managers, is listed as one of Essence Magazine's top 50 companies for Black women

11. Hofstedes Dimensions These dimensions are a way of assessing different cultures based on their relative rankings in the five categories.

12. Individualism The extent to which an organization focuses on individuals being self sufficient entities as opposed to being a part of a larger group. Individualism vs. Collectivism

13. Uncertainty Avoidance This dimension focuses on the extent to which members of an organization feel threatened by uncertain or unknown situations.

14. What this means for Management International Offices need management customization (Hofsteade) Expatriates and cross-cultural training

15. Presentation Order Introduction ( 30 seconds )Consistency ( 3 minutes )- examplesAdaptation - ( 3 minutes )- examplesHofsteade's Principles ( 2 minutes )What this means for Management? ( 1 minute 30 seconds)Class Activity ( 1 minute contemplation, 5 minutes Discussion )Close ( 45 seconds)