Defining the Elusive Term "Global" Company

Strategic Insights -

At the World Economic Forum in Davos, Switzerland, leading business experts gathered to tackle the often-used yet poorly defined term "global" company. Jacques Manardo, chairman of Deloitte Touche of France, proposed a definition where corporate globality is the process of creating value by leveraging resources and capabilities across borders. This concept translates into practical strategies, such as using culture as a guide for business practices and fostering an environment of trust and cooperation among employees.

Key Takeaways:

  • The term "global" company lacks a clear definition, leading to inconsistent application in business practices.
  • Deloitte Touche's Jacques Manardo proposed a definition of corporate globality as the process of creating value by leveraging resources and capabilities across borders.
  • Manardo's definition emphasizes the importance of using culture as a guide for business practices and fostering an environment of trust and cooperation among employees.
  • Hewlett-Packard's chairman, Platt, highlighted the significance of teamwork, employee flexibility, and a strong working environment in achieving global success.
  • Charles Holliday Jr., CEO of DuPont USA, emphasized the role of research and development in the success of global companies, noting that researchers should have a clear target and be given the freedom to think outside the box.
  • Bill Gates, chairman and CEO of Microsoft, stressed the importance of willingness to operate out of the box and experiment with new ideas in the pursuit of global success.

Statistics:

  • 80 percent of DuPont products were either invented by or significantly changed and improved by the company (Holliday).
  • Only 5 percent of the world's uses for nylon replace silk (Holliday).
  • DuPont's researchers have a clear target in mind when developing new products (Holliday).
  • Microsoft's Bill Gates predicted that global companies of the future will begin to look more alike despite geographic differences.

Sources:

- UPI (February 1), "World Economic Forum defines global corporation"

- COMTEX (http://www.comtexnews.com)