The risks of global dealmaking
In our supposedly globalized economy, businesses are advised to charge across borders as if the whole world were one.
But the world isn’t so flat after all. Businesses that don’t take into account specific political, cultural, and economic differences are set up to fail. Redefining Global Strategy, by professor and strategy consultant Pankaj Ghemawat, offers a reality based view of globalization - and practical tools to help your business cross borders profitably.
His book is full of insightful, useful information. I love his tools especially his CAGE distance framework which helps you identify barriers that your global marketing strategy will have to overcome.
Here is a summary of the CAGE Framework.
- Cultural distance
- different languages
- different ethnicities
- different values
- Administrative distance
- closed economy
- extent of home bias
- corruption
- Geographic distance
- physical distance
- time zones
- geographic remoteness
- Economic distance
- rich and poor differences
- differences in cost/quality in infrastructure
- economic size
Ghemawat proves differences do matter when you market outside your homeland. Redefining Global Strategy is a must read for anyone with ambition for profits from the international economy.
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posted in Managing Big Complex Deals | 1 Comment
