make a point here, "going global"
doesn't necessarily mean setting up a factory
abroad or expanding operations to the neighbouring
countries. Indeed, in the Indian context,
the term could simply stand for a technology
tie-up an international partnership or a joint
venture with a global company to boost competitiveness.
a company actually needs it or not depends
purely on the kind of sector it is operating
in. If the company is in a sector, like some
consumer products where there is no particular
pressure of technology or wider range, or
if it has already built up some amount of
strength on its own within the country or
within the total setup, it doesn't need to
consider the globalisation option.
instance, if the company can tailor-make certain
products or brands, it does not need to go
global. What it needs to do is study the market.
If the industry itself is going for a technological
upgradation and if a certain company already
has the skills to met the needs of its clients,
it doesn't need to go in for globalisation
if a wider range of product it might need
to consider that step. So the company has
to decide first when that actually needs a
particular kind of technology.
company has to carefully evaluate its needs
first. Because a lot of companies don't evaluate
this wrong path to globalisation. For example,
someone might just give up his major share
in a company just for technological upgradation
when he could have simply bought that technology.
Or a company might go for a joint venture
or consider other available options.
a company has evaluated its needs and precisely
why it needs to go global, it still has to
thrash out several issues. The first, of course,
is whether the organisation is prepared to
is a crucial issue many Indian companies overlook.
For example, if the company is small, or totally
family-owned, it needs to go through several
stages of upgradtion before it can even think
of going global. That's because the organisational
structure itself is not geared to globalisation
or a collaboration. In many family-owned firms,
the structure basically has the owner with
others being the workers. Thus the owner takes
all decision while the accountants, the manufacturing
staff etc. simply execute orders.
sort of company can hardly go global or take
in an international partner overnight. First
it needs to make the functioning in the company
and create the right environment to go global.
many companies say that this is a chicken
and egg situation. They can't attract middle
managers and professional staff simply because
they haven't a foreign collaborator. And they
can't have a collaborator unless they have
professional managers in place.
way out of this is to give incentives to hire
the right sort of people - whether that means
allowing them to independently take decisions
in certain areas of functioning or providing
the right pay. The gap has to be bridged first.
After this has been in place for some time,
the company can then take the next step and
consider going global.
course, there are many companies that have
already built up a certain size and are fairly
professional in their management that are
also considering the globalisation option.
But there are a whole host of issues to be
trashed out before they can even consider
the biggest problems that many Indian companies
face while trying to attract international
collaborators is the lack of information.
Many foreign companies, especially the Japanese
companies, ask for to distinct sets of information
before they consider any company for a partnership.
One is information about the company - what
products it offers, how many workers it has,
how long has it been operating etc. The other
set is information about the market - how
big it is, who are the competitors, what is
the growth rate etc.
companies need to access both these sets of
information before taking the first step towards
globalisation. The other important step is
to develop an orientation towards other people's
ways of thinking and speaking. The key is
to overcome cultural differences with an open
mind. Also, it is not advisable to restrict
dealing on a one-to-one basis with the top
level but to open up liens of communication
at various levels.
the company out for its culture, its business
values, its method of functioning to decide
on compatibility before jumping into any relationship.