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 second part of the two part interview that MWorld is presenting with John Caslione. For Part One of the interview, click here.

John Caslione will 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 click here .

MWorld: "With the recent events of 11th September as well as the now-confirmed global recession, is global integration and globalisation of the world economy still proceeding along at the same pace as it was before 11th September?"

Caslione: So much in our business lives has changed in the past 50 years, including the speed at which globalisation and global integration of the world economy has been taking place. However, the world had not experienced anything even close to the magnitude of the tragic events of 11th September. During the month following this event, globalisation virtually ceased in the US, and was severely hampered in Europe, Asia and in the rest of the Americas.

However, almost immediately after the return of business in January 2002, we began to see signs of a rebound in many markets, to varying degrees of course. Psychologically, people wanted to bring a certain closure to the tragedy of 11th September and the global economic recession that was finally confirmed during 4Q01. Now we are beginning to see signs of revitalisation in more and more industry sectors, which will begin to again accelerate global integration based largely on the strength of key markets in selected regions of the world.

MWorld: "The complete title of your book is, Global Manifest Destiny: Growing Your Business in a Borderless Economy." With the events of 11th September, is it still a 'borderless economy' or, for that matter, was it ever really a borderless economy even before the events of the 11th?"

Caslione: Immediately after 11th September, the costs of increased security, for businesses wanting to do business in the US, were estimated to top more than US$110 billion on an annualised basis. This number could easily be doubled or tripled when we begin to add in costs that would be incurred by doing business in the rest of the global economy. With the need to add increased security and protections in key industrialised markets in North America and Europe for fundamental business activities such as basic air travel, handling of the post, etc.; whatever level of "borderless" we achieved prior to 11th September will certainly be negatively impacted.

Whether or not we ever achieved a truly borderless economy prior to 11th September, the real issues are, 'Were we moving in the direction of a borderless economy, and were we heading there quickly?' To these questions, the answers are emphatically, 'yes.'

Certainly if you have a single customs duty that must be paid or a single passport that needs to be checked at a border, the 'pure' borderless economy is unlikely to exist for some time to come. At the same time, if you look at the relaxing of border restrictions, customs duties, import regulations and the like, there has been tremendous progress made over the past decade with regard to globalisation – significantly more than we've seen historically.


MWorld: "In your book you discuss 'global culture,' what exactly do you mean by a company’s global culture?"

Caslione: A global culture is an assimilation of the best characteristics of a wide variety of individuals from diverse backgrounds who are actively encouraged to contribute to the greater goals of the company. It is an integration of all of these people, their ideas and innovations, into the entire corporate culture.

If we take this one step further, culture is really a dynamic process for solving human problems as well as organisational problems. It is dynamic because it changes as circumstances change, and evolves in a way that is logical to the people inside that culture. It is a process because it continues to evolve as diverse and changing inputs are brought into a company’s culture – to whatever degree it may be "global" -- at any single point in time.

To accomplish this requires leadership that intuitively and viscerally embraces venturing into the global unknown and, moreover, possesses the strength and skills to lead a company into the new and changing global economy.


MWorld: "Can you give us an example of a medium or small company that has been able to develop a 'global culture', and how their new culture helped them be successful in growing their business globally?"

Caslione: The Indian pharmaceutical company Ranbaxy is a great example of a small company that was trapped at the bottom of its industry for almost twenty years. Even though the company had developed advanced product and had the capabilities to sell in its domestic market, it decided to expand globally when its CEO challenged the top management with his dream of turning Ranbaxy into a truly global company. When posed with the question of how a small Indian company could compete with the rich giants from the U.S. and Europe, its CEO responded by stating that the company needed to develop a global culture that transcended India.

Once there was a shift in mindset, led from the top, the next steps were straightforward. The company moved into higher-margin businesses like selling branded generics in large markets like China and Russia. It then entered the U.S. and Western Europe. Each of these steps required new customer relationships, a strong brand image, and unique distribution channels. But by using its increasing global knowledge and experience, the company was able to expand its capabilities and develop new resources. Within five years, more than half of the company’s ‰270 million revenue came from outside of India.

For companies anywhere, whether in the interior of India or in Eastern Europe, the lesson from Ranbaxy is clear: getting out of the mindset that you cannot be a global player is one of the most important steps any company can take to grow worldwide business.


MWorld: "Your book provides a lot of very practical information, checklists lists, charts, etc., of what it takes to be successful in transitioning from being a 'domestic company doing international business' to a global company doing real global business.

What would be the single most important piece of advice that you would give our readers who want to seriously begin to expand their businesses to capitalise on the tremendous new business opportunities that exist in the new global economy?"

Caslione: Without a doubt, it is leadership – insightful and commanding global leadership is absolutely necessary for a company to truly become a global company. In fact, true global leaders become more global in their thinking by formulating a clear and cogent global vision that they can communicate to a wide range of audiences around the world, and that can also inspire and motivate employees and investors around the world.

This global vision also serves as a basis for building an internationally competitive top team composed of people who not only possess the combination of direct experience and cross-border and cross-cultural competencies to do business in all markets of the world, but who can facilitate the transfer of ideas everywhere in the world.

Global leaders in companies of all sizes and in all industries are not intimidated by the prospect of competing at a global level. To become a global company does not mean that a company must be part of the FT 100 or Fortune 500. Becoming a global company is very much to do with the attitude and resolve of a company’s leadership. With these in place, a company can then truly break free of the bond of being purely domestic or regional.


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 click here.

John A. Caslione delivers 'Value-added marketing and sales strategies' at Management Centre Europe. For more information click here.