| Business has become the prevailing metaphor of our | | | | known for its intuitive and innovative behaviour |
| times. | | | | patterns. Thus in the global organization, the strategy |
| A new world order is now reflected, for example, in | | | | and structure is without national boundaries. The |
| the breaking down of market barriers across the | | | | heart of the global organization is its culture, its vision, |
| globe also throughout negotiated trade blocks or | | | | mission, policies, procedures, systems and practices. |
| through wide-ranging worldwide deregulation of local | | | | Global mindset is the foundation for business |
| markets, or political turmoil as in South Africa, | | | | competences such as managing competitiveness and |
| Germany and the earlier communist regimes. | | | | managing uncertainty. It is an orientation to the |
| Transnational business has increased by leaps and | | | | world; it represents a certain curiosity about the |
| limits and global competition and globalized business is | | | | world, to see goals and objectives against larger |
| now the new order. | | | | backdrops and time frames; it provides explanation |
| A number of developments have contributed to the | | | | and meaning for events and guidance for |
| globalization of business. Advances in | | | | one′s behaviour. |
| computer-assisted design and manufacturing and | | | | The global mindset has sometimes been thought of |
| robotics have reduced the dependency on labour, | | | | as an inherent personality trait. Many multinationals |
| increased production efficiency and increased market | | | | have sought to recruit rather than develop such skills. |
| flexibility by reducing economic order quantity. | | | | However, there has not been any empirical validation |
| Advancements in transportation have shrunk the | | | | of the existence of this alleged overseas type |
| distances between resources, processing and | | | | personality. |
| markets. Rapid technological developments have led | | | | Does the global mindset translate into organizational |
| to the emergence of new products and services and | | | | consequences? It certainly does. The mindset |
| thereby new business and new industries. The | | | | surfaces in terms of three strategic leadership |
| technology-driven competitive edge is coming to be | | | | thrusts which may be different in detail and scope at |
| more and more temporary as new technological | | | | different levels of the organization, but nevertheless |
| breakthroughs are reaching the markets sooner than | | | | are there. |
| ever before. The reliance on complex technologies | | | | These leadership thrusts in turn result in business-goal |
| has at the same time increased the potential for | | | | outcomes (i.e. production, marketing), and attitudinal |
| enormous ecological disasters such as those of the | | | | outcomes (i.e. employee focus on service, quality). |
| Union Carbide in Bhopal and Exxon Valdez in Alaska. | | | | These in turn ensure continued customer goodwill, |
| Electronic mail, facsimile transmission, tele- and | | | | long-term survival and company progress towards |
| video-conferencing has made it possible for people | | | | true globalization. Such consequences in turn reinforce |
| within and across organizations, spread over vast | | | | the mindset. |
| geographical distances, to share information instantly. | | | | In the new world order, businesses have to expand |
| Goods and services are routinely ordered through | | | | and manage people who can think, lead and act from |
| home shopping networks and banking is done from | | | | a broader or global viewpoint. This global perspective |
| remote locations. | | | | or mindset creates a capacity in the managerial ranks |
| Globalization of a given business seems to be a | | | | to turn threats into opportunities; to motivate people |
| multi-stage process. Many phases are gone through | | | | not just to survive, but to excel, to take innovations |
| before a firm can be called a truly global company. | | | | to the market place at an increasingly faster pace; to |
| The stages may be designated as domestic, export, | | | | operate through use of teams; and to take |
| international/multinational, and global. | | | | advantage of diversity within and without. |
| When an export company establishes its | | | | Also, many centuries often coexist within a given |
| manufacturing or distribution facilities abroad it | | | | country. There may be a nuclear power plant on the |
| becomes international. For example Phillips moved its | | | | one hand and yet within sight we may see cow dung |
| long-range technology development centre from the | | | | being used as heating fuel. A broad long-term global |
| US to the Far East to take advantage of longer term | | | | stance is a definite asset for such managerial tasks |
| thinking and reward patterns. IBM and DEC moved | | | | even without any pressure of overseas competition. |
| their research and development facilities to Italy | | | | |