With the availability of high-speed Internet and social media access around the world, it is easy for entrepreneurs to assume that the world is just one big homogeneous market, and project their business will scale accordingly. Nothing could be further from the truth. Large businesses, as well as small, still fail often by not addressing the very real cultural, economic and political differences.
The challenge is to know what to look for when stepping outside your native market, be able to quantify the downside risk and implement the required strategy in each of the new markets. In a recent book, “Global Vision,” by NYU Stern School of Business scholar and leader Robert Salomon, I finally found some great insights on what to look for, and how to make the necessary changes. [READ MORE]
“When you were buying this stock, you knew you were basically ceding all control to Mark Zuckerberg,” said Robert Salomon, associate professor of management and operations at New York University’s Stern school of business. “And if you didn’t like that, you shouldn’t have bought the shares.”
The shareholder group was organized by SumOfUs, a nonprofit that “exists to put corporations back in their place,” according to its website. [READ MORE]
In an increasingly interconnected world, managers frequently turn to global markets as a means of achieving profitability and growth targets despite accumulating evidence that globalizing is fraught with risk. Global Vision offers a lens through which to view globalization in a new and compelling way, helping managers understand the risks associated with globalization while equipping them with the necessary tools to overcome those risks. Author Robert Salomon defines country institutions across political, economic and cultural dimensions and demonstrates how to measure them so that managers can estimate the risks that institutional differences pose to global companies. [READ MORE]
“One thing is theory, the other is practice,” he said. “Although in theory English might leave as an official language of the EU, in practice most diplomats, most politicians will continue to use English to communicate amongst themselves.” [READ MORE]
The United Kingdom’s “Brexit” vote yesterday is being called one of the most momentous in British – and European – history. Some 17.4 million Brits voted to leave the European Union, versus 16.1 million who voted to remain, or about at 52-48 percent split.
“The implications are potentially large and far-reaching,” says Robert Salomon, Professor at New York University’s Stern School of Business and author of Global Vision: How Companies can Overcome the Pitfalls of Globalization. [READ MORE]
Uber recently revealed that it is losing more than $1 billion per year in China. This is a colossal sum of money for any company, let alone one that has been in business for less than a decade. Despite the eye-popping headline number, Uber claims that its losses in China are nothing to be concerned about. According to its chief executive and founder Travis Kalanick, Uber is in a much better market position than its chief Chinese rival, Didi Kuadi, and he believes Uber can weather its early stumbles there by subsidizing losses with profits from other operations. [READ MORE]
Back in March, I suggested that Uber was poorly positioned to capitalize on China’s ride-hailing market. Uber was losing $1 billion a year in China and battling a profitable and well-connected local competitor in Didi Chuxing (formerly Didi Kuaidi) for market share. Therefore, I was unsurprised to learn last Monday that after two years and more than $2 billion in cash losses, Uber agreed to sell its Chinese business to Didi. [READ MORE]
Managers tend to speak optimistically about the prospects of globalization, and for good reason. Globalization has fostered an increasingly interconnected world, with more than $30 trillion in goods and services traded and more than $1 trillion in corporate investment each year. Advances in information technology and transportation have helped facilitate globalization—connecting developed and developing worlds, lifting some 400 million people out of poverty along the way. [READ MORE]
The Bloomberg Advantage with Carol Massar and Cory Johnson.
GUEST: Robert Salomon Professor NYU’s Stern School of Business Discussing his book “Global Vision: How Companies Can Overcome the Pitfalls of Globalization.” He says U.S. companies have a hard time making inroads around the globe. [LISTEN]
The Traps of Globalization and How to Overcome Them
One of the big misconceptions about the modern business environment is the ease by which an organization declares itself a ‘global enterprise’. Certainly social media and technology has made connecting across boarders seamless and simple; still growing a business unit overseas and appealing to a foreign market is a challenge that few have been able to overcome. [READ MORE]