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Globalization and Community Colleges Dr. Tomas Hult

Globalization and Community Colleges Dr. Tomas Hult. Byington Endowed Chair & Professor of International Business Director , Center for International Business Education and Research Michigan State University Executive Director, Academy of International Business

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Globalization and Community Colleges Dr. Tomas Hult

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  1. Globalization and Community CollegesDr. Tomas Hult ByingtonEndowed Chair & Professor of International Business Director, Center for International Business Education and Research Michigan State University Executive Director, Academy of International Business President, Sheth Foundation

  2. International Trade MEGP IBEX IBC CC FDIB Source: The World Bank World Development Indicators

  3. Shifting Global Marketplace Percentage share of the world production Source: The World Bank World Development Indicators

  4. “What MakesYou Unique?” Kentucky Tennessee

  5. IBEX ScoresInternational Business Education Index The scores in Table 1 are based on a range from 0 to 1, with 1 being the best.

  6. Fundamental Drivers Focused Global Businesses Emerging Reality Domestic Isolated Economy Globally Integrated Economy Past Reality Diversified Domestic Conglomerates

  7. Globalizing Strategy

  8. The Basics • Today, many firms need to be more globally integrated, use globally coherent strategies, operating within global networks, and maximizing profits on a global basis • How global is your industry? • How global should your firm’s strategy be? • How global should your supply chains be?

  9. Global Alignment 100% Globalized Need to educate the global marketplace Industry Average Not leveraging the global marketplace 100% Domestic

  10. Common customer needs • Global customers • Global channels • Transferable marketing • Global scale economies • Steep experience curve • Low transportation costs • Differences in country costs • High product development costs • Need for technology transfer • Favorable trade policies • Compatible technical standards • Common marketing regulations • High exports and imports • Interdependence of countries • Competitors from different countries • Globalized competitors • Transferable Competitive Advantage

  11. Globalization Efforts 20% Increase from 2013 to 2018 38% Increase from 2013 to 2023

  12. Industry Potential to Globalize INDUSTRY Globalization

  13. Industry Potential to Globalize INDUSTRY Under- Globalized Globalization

  14. Are U.S. Firms Ready to Globalize More?

  15. Analyzing Industry GlobalizationMarket, Cost, Government, and Competitive Drivers G L O B A L

  16. 4.4% 19.1% Expected increases from 2013 to 2018 and 2018 to 2023 8.2% 23.0% 4.6% 19.6% 6.0% 20.9%

  17. Scores in 2013 and expected increase by 2018 11.3% 13.1% 6.0% 15.0% 15.3%

  18. Effort of Select Global CompaniesCemex emphasizes market participationMercedes emphasizes making competitive moves

  19. Dell made vertical supply chain integration their initial success and still relies on global supply chains for the largest share of their success at 23%.

  20. FedEx based in Memphis, Tennessee relies the least on global supply chains for their success but offers supply chain solutions for others companies’ success.

  21. We Generally Know the Ideal Product

  22. What Is the Ideal Value Chain?

  23. Global Supply Chains2013, 2018, 2023 100% Globalized 40% 23% 40

  24. U.S. Multinational CorporationsMarket channels (“last mile”) of the global SCM drives success Global Logistics Importance: 93 Globalness: 65 Global Purchasing Global Market Channels Global Customers Global Suppliers Importance: 89 Globalness: 66 Importance: 95 Globalness: 65 Global Operations Importance: 92 Globalness: 64

  25. Logistics Purchasing Operations Market Channels Functional Alignmentand Globalization

  26. Purchasing Leads in Globalization

  27. Increased Customer Satisfaction Cost Reduction Improved Quality Competitive Leverage

  28. Inventories-to-AssetsThe average company carries 14.41 percent oftheir total assets in total inventories

  29. Inventory Positions Raw Materials Work-in-Process Finished Goods Global Suppliers Global Customers 32.30% 17.94% 49.76% Denmark 28.5% 20.0% 51.5% Finland 22.5% 35.7% 41.8% Norway 29.5% 21.0% 49.5% Sweden 38.4% 19.0% 42.6%

  30. Purchasing ActivitiesViews of SCM Professionals 2013 2018 2023 Level I 33% 23% 26% Domestic Purchasing Engage in domestic purchasing activities only Engage in international purchasing activities only as needed Level II 22% 23% 22% International Purchasing Level III International purchasing activities as a part of SCM strategy 16% 20% 21% Global purchasing activities integrated across worldwide locations Level IV 15% 15% 13% Global Purchasing Global purchasing activities integrated across worldwide locations & functional groups Level V 14% 19% 18%

  31. Purchasing ActivitiesViews of C-Suite Managers of MNCs 2013 2018 2023 Level I 9% 5% 5% Domestic Purchasing Engage in domestic purchasing activities only Non- Existent Engage in international purchasing activities only as needed Level II 23% 15% 12% International Purchasing Level III International purchasing activities as a part of SCM strategy 19% 15% 12% Global purchasing activities integrated across worldwide locations Level IV 19% 23% 10% Global Purchasing Global purchasing activities integrated across worldwide locations & functional groups Level V 30% 53% 61% Much higher than SCM Professionals

  32. Growth of InternationalProduction Plants 1990 to 2010

  33. Operationally Favoringa Make or Buy Decision

  34. Operationally Favoring a Make Decision

  35. Operationally Favoring a Buy Decision

  36. Market ParticipationWhich Countries?

  37. 10,300 Michigan CompaniesTraded in 2012 (91% SMEs)

  38. A Michigan ExamplePlans for Expanding International Trade by 2015 89% 86% 10,300 Michigan Companies Traded Internationally in 2012 (91% SMEs)

  39. Michigan to China?

  40. Explaining Performance 70% 25% Global Strategy Global Supply Chains To stay competitive, companies need to increase the globalization efforts of their supply chain by at least 20 percent in the next five years and 40 percent in the next 10 years.

  41. Importance of Global Education • Today, many community colleges need to be more globally integrated, use globally coherent education strategies, operating within global education networks, and maximizing learning on global topics. • How global is the education industry (e.g., workforce development at community colleges)? • How global should your community college’s courses, programs, and culture be?

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