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By John A. Caslione
All
firms are feeling the impact of the global economy. They must respond
by globalising their functions and building their capacity to recognise
opportunities. Becoming a truly global organisation means much more than
merely having a physical presence in a number of foreign markets. The
global companies of the future will be seamless and transparent organisations
that possess the critical ability to adapt to an ever-changing global
business landscape. They will embody cultures and processes that will
keep them in front of shifts in the world economy.
In his latest book, Global Manifest Destiny: Growing Your Business
in a Borderless Economy (Dearborn Publishing, 2001), leading international
business expert and author John Caslione provides business leaders with
the real-world, hard-hitting insight necessary to take full advantage
of the opportunities around the globe and establish a successful world
presence. Caslione, who has done business in 75+ markets on six continents,
was recently interviewed about his new break-through book by MWorld.
This is the first part of the two part interview that MWorld will be presenting
with John Caslione. Part two of the interview will be presented in next
month’s edition of MWorld.
John Caslione will also be a guest speaker on "Growing your business
in a borderless economy" at Management Centre Europe (MCE) from 17.30
to 20.30 on March 21st 2002 at the MCE Conference Centre in Brussels,
Belgium. To find out more about this special member event call Betsy Heris
on 32/2/543 2100 or email: Info@mce.be
MWorld: "The title of you book is Global Manifest Destiny,
what exactly is 'global manifest destiny'?"
Caslione: As you might expect, I get asked this question many times
around the world wherever I go. Standing at the dawn of the third millennium,
we are today observing the potential for complete and inevitable economic
integration of all humankind. This is what we call, global manifest
destiny. The global integration of all humankind is inevitable and
it is undeniable.
Global manifest destiny is compelling businesses to look at themselves
in new and revolutionary ways. Because of it, markets for good and services,
finance, and information have begun to move rapidly across borders. Barriers
to the flow of trade and investment have begun to fall, and deregulation
is spreading throughout the world as ideological divisions collapse and
the cost of doing business around the world plummet.
The unrelenting drive of global manifest destiny is providing firms
of all sizes in all markets with enormous opportunities to not only sell
and invest in previously sheltered markets and form growing global alliances
and technology, but also to leverage technological breakthroughs to sell
to expanded markets. Companies can now readily access components globally,
secure financing by tapping into world markets, and obtain human talent
from a multitude of nations.
The opportunities appear to be almost limitless. Nevertheless, success
will not be achieved without tremendous insight and understanding. Only
those organisations that truly grasp the magnitude of global manifest
destiny and adapt their corporate cultures and processes will achieve
greatness in the future.
MWorld: "How long has this 'economic integration of all humankind,'
as you refer to it, been going on?"
Caslione: The march of human history has been more influenced by
the visceral desire for economic integration as much -- or more than --
any other factor in the history of the world. It has been with us from
the origins of human civilisation, and it has always been our destiny.
The earliest historical writings make it clear that humans have always
sought economic connections beyond their own natural borders. The new
global economy is actually a vision as old as time itself, one that arguably
began not with the European age of maritime exploration five centuries
ago, but with the Phoenicians, Egyptians, Greeks, Chinese, Romans and
other great trading peoples who dreamed of the unifications of markets
centuries, and even millenniums ago. The expansion around the Nile in
3000 B.C. and massive European colonisation of the 16th through the 19th
centuries were both global manifest destiny in their eras, just
as the globalisation movement is today.
Today we talk a lot about "globalisation" and in fact, globalisation is
merely the contemporary label for the current state of global manifest
destiny.
In fact, today’s often stated "globalisation" is not merely
the "Americanisation" of the world economy as some people would have us
believe, but rather a force much deeper and more profound. America may
be seen as the leading player on the world’s economic stage today, but
like its predecessors before it, America is merely the most visible flag
bearer of global manifest destiny today.
MWorld: "What are some of the recent 'drivers' of the globalisation
of business, especially most recently?"
Caslione: Whilst global manifest destiny has been with us
since the origin of civilisation, three profound 'drivers' are enlarging
its current scope beyond anything we've witnessed throughout our history:
increasing global interdependence, accelerating rate of change, and new
information technology.
The first, 'interdependence,' refers to a condition of interconnectivity
and interchange. Interdependence can increase, as it has been doing on
most level since the end of the Second World War. On the other hand, interdependence
can also decline, as it did, at least in economic terms, during the Great
Depression of the 1930s.
More than other time in history, we have entered a period of increasing
global interdependence in so many aspects of our lives, most notably in
our business lives. And as global interdependence continues to accelerate,
we must learn the critical dimensions of it, if for no other reason, so
we can maintain some measure of control over our decisions and actions
amidst this increasingly fast-moving phenomenon.
One of the great lessons to be learned from the last decade is that the
new global economy is not a zero net sum game. With each decision taken,
global business leaders will be setting off a sequence of consequences
at many levels and over extended periods of time, within their own organisations
and in other globally interdependent and interconnected businesses and
organisations to their own.
Second, the 'accelerating rate of change today' has never before been
experienced in recorded human history. It is causing entire markets and
industries from around the world to change faster than the ability of
most business leaders are able to reinvent and transform their companies
to successfully lead them through the fast and furious change ritual that
is now a permanent fixture of doing business on a global scale.
We are now confronted with a new era of tremendous change and ambiguity
that will cause businesses to remain in a continuous and constant state
of transition all around the world for the foreseeable future.
Lastly, 'new information technology' directly and unmistakably impacts
the global economy as it helps to "globalise" all markets, both industrialised
as well as developing markets, including the production and consumption
of products, as well as for the generation and flow of capital. Global
manifest destiny, in turn, incites increased competition and accelerates
the transfer of technology throughout the world in the form of enhanced
economic integration.
Without an ever greater appreciation of information technology and a deeper
respect of its tremendous power to shape business in the future, the survival
of any business in the new global economy will be virtually impossible.
Not too long ago, only a relative few companies had the resources to compete
on a global scale. Presently, almost any size firm, with the ambition
to do so, can become a global company.
The drivers of present day global manifest destiny have made this
much more possible. For companies looking to achieve core global competencies
in these and other areas, this new book will help to provide a practical
roadmap.
MWorld: "Why is it important that companies need to know about
global manifest destiny?"
Caslione: Only those organisations that truly grasp the magnitude
of global manifest destiny and adapt their corporate culture and
processes to it for the long-term will achieve greatness in the future.
Our experience has led us to conclude that it is entirely possible for
almost any company -- large, medium or small -- to properly position itself
in order to take full advantage of the inevitable economic integration
of humankind. Those companies that leverage global manifest destiny
are the ones that become truly global companies.
The firms that recognise, embrace, and assimilate global manifest destiny
as part of the very fabric of their organisations will undoubtedly
be the leaders in their respective industries, and will be best positioned
to exploit the business opportunities of the inevitable economic integration
of all humankind. Those who don't will be relegated to a status of irrelevance
within a matter of years.
MWorld: "Is your book targeting large companies that are already
global, or are you targeting medium and small companies; and why did you
decide upon the focus you've chosen?"
Caslione: Without a doubt, and most appropriately, my new book
focuses upon small and medium size companies – companies that are
at the forefront of the future of globalisation and the global economy.
Some say globalisation is concentrating market power in the hands of a
few large corporations. Every day, it seems we read of new, global mega-mergers,
and hear how those mergers are putting a few big companies in control
of our markets and our lives. Nevertheless, GM, Ford and Toyota control
less of the world’s car market today than GM alone controlled in 1950.
From 1988 to 1998, the top five high-tech companies' shares of worldwide
sales in computer hardware, computer software and long-distance telephony
actually declined by more than 30 percent.
In many ways, the multinationals have paved the way for everybody else.
Global conglomerates have themselves made the necessary investments in
infrastructure or forced local governments to do so on their behalf. Across
the planet, telecommunication systems have been dramatically upgraded.
Transportation networks have become more efficient. Trade barriers have
come down considerably. As a result, the door has been opened for medium
and small companies to get their share of the ever-expanding world economy.
In the future, the global landscape will no longer be the sole domain
of the multinational behemoths originating from the USA, Europe, and Japan.
It is now populated by an array of companies, including a growing number
of small and medium-sized firms from countries all over the world. According
to the International Chamber of Commerce, today there are more than 60.000
companies that operate outside of their home country, and more than 35%
of those firms are from developing countries.
In short, global manifest destiny has set the stage for only the
fittest to survive – regardless of size.
END OF CASLIONE INTERVIEW PART ONE. LOOK OUT FOR PART TWO NEXT MONTH
ON MWORLD!!!
John A. Caslione is President and CEO of Andrew-Ward International,
Inc., an international marketing and sales firm based in Chicago, USA,
that specialises in assisting companies in developing and implementing
global marketing, sales, supplier and distribution business alliance strategies.
He is also a leading international speaker and expert.
His new book, written with Andrew R. Thomas, 'Global Manifest Destiny:
Growing Your Business in a Borderless Economy', is published by Dearborn
Publishing. Visit www.globalmanifestdestiny.com
Management Centre Europe (MCE) will be hosting an evening event with the
author John Caslione, on "Growing your business in a borderless economy",
on March 21st 2002 at the MCE Conference Centre in Brussels, Belgium.
To find out more about this special member event call Betsy Heris on 32/2/543
2100 or email: Info@mce.be
John A. Caslione delivers 'Value-added marketing and sales strategies'
at Management Centre Europe. For more information visit http://www.mce-ama.com/events/370.htm
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