Emerging economies are those countries who have witnessed rapid growth in their economy and possess same potential for future as well. Developing markets have liberal government and free trade policies which enables global organisation to invest in these markets and make huge profits. They are characterized by rapid industrialization and have high demand for their products. Luo (2002). Todays business environment has become intensively global. Companies are getting involved in international trade due to which they have to communicate with large number of stakeholders like employees, customers, suppliers etc. They are setting their bases outside their own country and are promoting multicultural work environment that requires guidance from leaders who are capable enough to operate in international atmosphere. House et, al (2004). This requirement of modern business world has given rise to the concept of having “Global mindset”
A global mindset refers to having a broader outlook toward worlds, anticipating future trends that may comprise of threats or opportunity to meet professional, organisational or Individuals goals and at the same time keeping their originality intact. Rhinesmith (1993). One of the key feature of global mindset is that it not only enables managers to take quick and appropriate decisions based on global changes but also helps them in understanding the needs of local market which builds a better connection between these needs and the potential of the firm eventually making it easier for the companies to operate smoothly both in local and global market. A Manager with global mindset believes in conducting a proper market research which assists in recognizing competitor’s strategy, services and products. These information’s can be used by organisations to make necessary amendments in their product or strategy which is very crucial as It gives them competitive edge over their rivals. According to Cohen (2010). Global manager should contemplate and function both locally and globally. This indicates that since the current business are rapidly growing in global market. leaders should be able to keep a balance between cultural differences of local and global market.
In order to be successful multinational firms should be to open and flexible to adapt to new strategies as per the nation. If we compare Dells strategy in U.S.A and China it can be observed that in U.S.A Dell uses internet to provide their customer with variety of products. Their main source of generating revenue in through online sales. Almost 50 % of their revenue was generated from online sales in 2003.Delivery adopted by Dell is of direct shipping they do not make use of any distributor or resellers. However, in China the strategy is completely different as consumers over there are not so well versed with online buying. People mainly depend on telephones or faxes to place an order. Also, their government does not support online sales as they have a conception that vendors make their own prices by tampering system. Dell realised the need of the situation and switched its strategy. In china they completely depend on distributors and resellers for sale of their product. Thus, from the case of Dell its quite visible that multinational firms can achieve success by adapting to situation and developing its strategy accordingly which is a key feature of having global mindset.
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However, developing a global mindset is not an easy task and along with managers its is also the responsibility of organization to provide with appropriate assistance and guidance. Few Measures that can be suggested is giving international exposures through foreign transfers which will enable them to get familiar with conditions. Furthermore, constant training and development sessions can also be useful in establishing global mindset.