International Marketing Game-Global Business Leadership Creation

7/31/2019 International Marketing Game-Global Business Leadership Creation

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The Winning EdgeGame-The Holy Trinity Of Global LeadershipCreating a Successful Trans National Corporation

Duplication Prohibited (except with prior consent) - Copy rights with TWE

406 Konark Shram Tardeo Mumbai 400034. IndiaTel: +91-22-22075290/22051551/22086457 Fax: 22075291

Mobile: 9324087691 e mail: [email protected]/ [email protected]

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The Holy Trinity of Global Leadership[BY USING THE KASH + CV APPROACH]

Seven Simple StepsFor

Creating a Successful Trans National Corporation

By

Prof. Arun Sehgal

Visiting Faculty- Leading Business Schools,Corporates, Chambers of Commerce and

Director-The Winning Edge, 406 Konark Shram,Tardeo, Mumbai 400034, IndiaE mail:[email protected]
mailto:[email protected]:[email protected]:[email protected]


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Foreword

I know that 22 years ago, when I started my long journey of setting up my own business after my businessschool education with only dreams and no capital, I had no clue on how I will realize my dreams. I must also

admit that there was a time when I had no confidence in my international marketing abilities too. There wasonly the belief that I can do it. I was willing to learn, make mistakes and learn from mistakes. I am profuselythankful to the several books and their authors, books that I read over the past so many years that developed apassion in me for International Marketing. I have been a practicing International Marketer and a Sales manwho set out to sell the Made in India brand of products internationally across diverse cultures, twenty yearsago, a time when no one knew much about India except the bullock carts and the snake charmers, whichsomehow succeeded in catching the fancy of the international audience.

The credibility of Indian made products was extremely poor twenty years ago and the effort levels required inselling an Indian product extremely high. It used to be a daunting task requiring tremendous effort, oftenfrustrating and at times exhausting. I remember the numerous rejections I used to face every day by mypotential customers who at times used to even make fun of our products, their quality and even our service. It

used be a very humiliating exercise at times to face customers who forever wanted cheaper products onlybecause they were made in India.

Today, I am proud to say that we Indians have changed our world. Yes! We are unstoppable. Thanks to thetoughness and resilience of our minds, we have shown the way to the entire world on how we can producecompetitive goods and services at par with the best. Things are much different today than what they used to betwenty years ago. We have learnt fast and the rest of the world is today scared of us. I am happy to share thatsome of the big European and American customers who used to carry an arrogant attitude twenty years agoregarding their quality and wealth generation capabilities are no more existent today. Their businesses havebeen eaten up by the Indians and Chinese. They have lost jobs to Asian manufacturers and are completelydependent upon the supply of goods and services from our region.

All this would not have been possible if the Indians and the Chinese had not shown their mental toughness andpersistence in their efforts to sell to the rest of the world. I have been practicing some of the InternationaMarketing Skills that I acquired with experience in order to succeed and to survive and grow against all odds.

I have realized based on my own experience that no International Marketing professional can be great and canaccomplish much without becoming a great human being first. Strong and ethical Character is the basicrequirement to succeed in the profession of International Marketing in the long term. Practice of this professionby more people is bound to create a great society that we all can be proud to say that we are part of. This isthe most beautiful part of this profession and hence I have taken upon me, a responsibility to share theconcepts that I have evolved using some of the knowledge that I learnt from my profession over the last twentytwo years.

It gives me immense sense of satisfaction to present "The Holy Trinity of Global Leadership - A game oncreating a successful Trans National Corporation The game will be played using the technique- Learn theconcepts, Reflect and Practice. Practice of knowledge is the secret of success and this is the reason thatsome of the best educators in the field of International Marketing come from business and industry.International Marketing is like a surgery, you may be able to write well about it but in order to succeed youmust practice your knowledge that requires functional as well as a lot of soft skills in order to get results. This isthe only reason why practicing international marketing people also make the best trainers and educators; theyare usually rainmakers and love their profession passionately.


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The concepts developed and practiced by me are being shared in the form of a KASH + CV approachworkbook. In my opinion International Marketing is a technique that can be learnt and mastered provided youwork to awaken the hidden powers of your mind. There are many people I meet who say that they cannot talkwell and therefore they are not suitable for this profession. I just want to share with you the fact that this is nottrue. If I could do it anyone can because I remember even until my college days I was not much of a

conversationalist.

Our inabilities are more in our mind and therefore only subjective techniques that relate to empowerment ofyour mind can help. I was fortunate to have been interested in knowing some of the subjective techniques thattoday are becoming popular. I will talk about using them as the game progresses. If you have faith in yourselfand in the god within you then you can achieve anything that you desire with the KASH + CV approach byawakening the hidden powers of your mind. Finally, if you believe you can, YOU CAN, and if you believe youcant, YOU ARE RIGHT! This is how the mind works. I hope this game will help you realize your goals just theway it helped me realize mine.

Best WishesArun Sehga


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Jamnalal Bajaj Institute of Management Studies Marks 100

International Marketing Prof. Arun Sehgal

A GAME ON ENGINEERING YOUR BUSINESS FOR GLOBAL LEADERSHIP-CREATING A

SUCCESSFUL TRANS NATIONAL CORPORATION

Participants shall prepare for this game with the help of their knowledge acquired so far and any known good

books on the subject. Look for the bold and colored words as they are important for your staying focused with

your thinking. They direct you on what you are expected to consider while making your decisions.

You have to choose a product category of your interest based on its potential for global wealth creation. Your

Global Business could be based in India or abroad. You must start the business using the resources of your

parent country and later expand your operations in other global markets guided by your own vision of

becoming a global leader in the selected product category in future by making use of appropriate

international markets expansion strategies. Actual market information, country studies are to be used with

reasonable and realistic assumptions for progressing in the game.

You have to create a Blue Print of your Global Organization by assuming the role of a CEO cum Promoter

You are the Wealth Creator and therefore you must have the Vision and acquire the Know-How for

steering your organization to achieve the Global Business Leadership position.

International Marketing success depends on many factors that relate to the overall Organizational Design

International Market Entry Strategies, and Presence of Unique Strengths in your Global Business. It calls

for the finest abilities of the CEO to guide the companys global business to the leadership position at the

international level.

(It is not a coincident therefore that the best international marketing professionals go on to become the CEOs ofGlobal Corporations)

This game is not only going to hone your skills in international business creation but it will also empower you

as a CEO by making use of the concepts contained in the bookThe Holy Trinity ofGlobal Leadership that

uses Three Basic Strategies (these are Innovation, Cost and Service Leadership-refer to the CEO template

enclosed) for creating Unique strengthsin your business using Seven Simple Steps.

By assuming the role of the CEO you have to find answers and make presentations to your audience. High

quality professional presentations ofinternational standards must be prepared based on your decisions and

strategies for all the questions asked. Think of solutions to all the questions individually and later discuss with

your team and agree on a common strategy/answer before preparing the final presentation. For submissionyou have to give soft as well as the hard copies of your ppt as well as doc files with your team details.

In order to have uniformity in folder names in your soft copies of this game submission, please note the

following:


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Each group must have one individual folder for itself by name of the country and business chosen. It is the

group leaders job to collect answers to every question from the team members, discuss and conclude on a

common answer/ team strategy and create sub-folders question wise as per the Folder and file names indicated

against each question. This way each team will have one folder only with sub folders created by the name of

files (one for each question e.g. Folder will be India-Name of the company and sub-folders will be Business

Positioning for question 1, this sub-folder will have the teams answer in one file each (doc plus ppt), another

sub-folder will be Global VMG statement for question 2 with the common answer of the team. So on and so

forth, in total there will be 12 sub-folders for this game for each group). Please ensure that all kind of files (doc

as well as ppt) are stored in the appropriate folders.

Answers and Presentations must be precise and specific to the questions asked.

Guidelines for Soft copies submission

Folder and file structure will be as follows: (create uniformity with folder names) e.g.

Folder Name Sub-Folder (File Names)

India-XYZ Co.Ltd - Business Positioning (Files doc or ppt)

- Global VMG Statement (Files doc or ppt)

- Global Product Features and their impact on the Organizations Design

- Key International Markets and their Impact on the Product and Organizations

Design (Files doc or ppt)

- Impact of Key Cultural and Economic Variable on all Ps of International

Marketing (Files doc or ppt)

- Targeting and Segmentation (Files doc or ppt)(Short form for above can be TSG and creating Brand Loyalty) (-ditto-)

- Product Differentiation, Positioning, Emotional Bonding and Brand Loyalty

Creation(Files doc or ppt)

- International Market Entry Strategies (Files doc or ppt)

- International Organization Structures Design (Files doc or ppt)

- Creating and maintaining Innovation Leadership in your TNC (Files doc or ppt)

- Creating and Maintaining Strategic Cost Leadership (Files doc or ppt)

- Creating and Maintaining Service Leadership (Files doc or ppt)

USA-ABC Corp (As above).so on and so forth


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A GAME ON ENGINEERING YOUR BUSINESS FOR GLOBAL LEADERSHIP-CREATING A

SUCCESSFUL TRANS NATIONAL CORPORATION

PROF. ARUN SEHGAL

For the International Marketing exercise to be fruitful, it is very important that the Global organization creates

synergy in its operations. Business positioning is important, equally important is the overall business focus

products and markets mix. Selection and design of products, targeting, segmentation and positioning must be

in synergy with the overall business positioning of the Global organization.

For the product and the International market selected by you for your global business; and assuming that you

want to create a World Class Trans National Corporation (TNC) that will be a global leader in the business

of product selected by you, please summarize how you will address the following issues:

1. What Business positioning your company would like to create? Specify. (Hint: Colgate stands forDental Care, P and G for personal care etc; the positioning must be broad for you to include more

product categories in future) First File Name-Business Positioning 10 Marks

2. Outline your Global Vision, Mission and Goal statement (Hint: in synergy with the businesspositioning) Second File Name- Global VMG statement 10 Marks

3. List as many key tangible and intangible attributes as possible in your global product design. Which ofthese can be used to create a product or business differentiation? Outline the impact they will have on

the design of key functions of your global organization. 30 Marks

Third File Name- Global Product Features and their impact on the Organizations Design

4. List the key International Markets for your product. Outline the impact their economies and culturehave on the design of your product as well as the key functions of your global organization. (Hint: your

selected markets must have the highest wealth creation potential for the product selected by you or theyshould be important for other strategic reasons. Justify your choice.)

Fourth File Name- Key International Markets and their Impact on the Product and Organizations design

50 Marks

5. Select the most important international market for your global business. Recognize the KeyEconomic and Cultural variables and Spot the effect they create on all Ps of International

Marketing. Create your international marketing and business plan for this target market.

Fifth File Name- Impact of Key Cultural and Economic Variable on all Ps of International Marketing

50 Marks

6. What current as well as future product segments do you identify based on the wealth creationpotential of the selected target market? List these segments and give reasons for your selection.

Sixth Folder Name- Targeting and Segmentation 50 Marks


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7. In each of the segment selected at 5 and 6 above identify the product attributes critical for creatingproduct differentiation? In the target market selected by you, which ones will you use for product

positioning and why? Design your brand triggers and create a punch line for your detailed advertising

campaign. Is there a synergy between your business and product positioning? How will you establish

Emotional Bonding with your consumers/ customers to generate Brand Loyalty?

Seventh Folder Name-Product Differentiation, Positioning, Emotional Bonding and Brand Loyalty

Creation 50 Marks

8. Decide on which International Market Entry Strategies are best suited for expansion into the top threeInternational Markets selected by you. Identify partners in your target markets and prepare a blue print

of your Licensing/ Joint Venture/ Takeover agreements.

Eighth Folder Name-International Market Entry Strategies 100 Marks

9. Design the Organization Structure of your operations in the target markets. Decide which critical

positions you wish to keep with the parent organizations and which ones will be best filled by the locals

How will you replicate your parent organizations work culture and values system in the new

operations?

Ninth Folder Name-International Organization Structures Design 50 Marks

10.For your TNC to succeed in persistent wealth creation in the global markets, you must achieveKnowledge Leadership by Innovation in every field of your business and simultaneously create Cost

and Service Leadership in your industry.

You realize that in the end, every business is about dealing with PEOPLE - both internal, e.g

employees in the organization as well as external e.g. customers- in the case of the marketing

department, suppliers- in the case of production department, stake holders- in the case of finance

department and society at large- in the case of the human relations department. You want to build onyour inventory of star performers and must have a system that locates and rewards the performers and

retains them in your organization. Similarly you need suppliers who consistently help you innovate and

compete with the best in the market quality, cost and delivery wise. You need to build an emotional

bond with your customers so that they keep coming back for more while your people continuously strive

to increase the inventory of new customers. Your stake holders must enjoy a high level of trust in your

abilities to generate wealth for them through your efforts. The society and the governments must hold

your business in high esteem based on your work in the target markets. In short, whatever your

organization needs to achieve has to be achieved by these people (Men) with the help of available

Money, Materials, Machines and Minutes (time); together they are popularly referred to as the 5Ms

of business. A closer analysis will reveal that the MEN organize the right materials, machines and

design efficient business processes to utilize the minutes. Hence, for creating Global Leadership inany business the focus of the business leader must be on getting the right men for the job that are

guided by correct vision. They must be armed with the right strategies that are implemented with

help of efficient business processes to create wealth for the organization consistently.


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It is imperative therefore that these people must be able to visualize the future form of products

based on the changing customer needs in the market place and effect that change through

continuous R and D and product design effort while simultaneously creating the Cost and Service

Leadership positions in the market place by optimal use of the limited 5M resources available to

the organization.

In todays era of tough competition the best teams win and these teams are carefully created and

nurtured by the organizations and they pursue a well defined direction. So the PEOPLE factor in

business is one of the key elements for succeeding in business. And what do these people possess that

makes the teams win? It is nothing but their Knowledge, Attitudes, Skills, Habits, and Values. When

all of these are combined with Action it makes a Character. It is the Character that makes human

beings truly outstanding and therefore they are difficult to defeat in the market place. An

organization that has such people become invincible and they go on to become the globally respected

business leaders.

Hence, the toughest challenge for the CEO is to create an organization that promotes continuous

innovation and nurtures some important Attitudes, Skills, Habits and Values amongst the people

associated with the Global Business System; both internal and external.

An organizations success in international marketing is almost guaranteed once the critical areas

are correctly identified and business policies formulated and appropriate business strategies

adopted on an ongoing basis for addressing the vital issues involved for achieving and retaining

the global business leadership position. It is most important to develop a business system and

processes that identify these critical areas and seek the best solutions on an ongoing basis.

You assume the role of the CEO, your job now is to create a TNC that is designed to achieve globalleadership. For the Product/ International Market mixes selected by you for the game- and by taking

help from the enclosed CEOs template, identify the critical issues for developing the threestrengths

(Innovation, Cost and Service Leadership) through seven simple steps as outlined in details in the

bookto create a formidable TNC design required for success in Global Marketing .

600 Marks


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Creating a Successful Trans National CorporationSeven Simple Steps

Exercise 1- Identifying critical issues for creating and maintaining Innovation Leadership in your

global business Tenth Folder Name-Creating and Maintaining Innovation Leadership in your TNC

(give your solutions to each issue step-wise) 200 Marks

Objective is to innovate constantly by identifying critical issues in your business both internal as well as externato the organization. Idea is that when systems are created where these issues get recognized and addressedproperly then the organization will always lead the industry by constant Innovation. Looking at the InnovationLeadership matrix answer the following questions for identifying the critical issues involved;

Step 1: Identifying the K (Knowledge) factor for creating and maintaining Innovation leadership in your business(The following list of possible issues is illustrative and not comprehensive. Look for more specific issues related toyour business with the help of the CEOs template)

Studying and Analyzing the Environmental Factors toguide the innovation effort of your TNC and creatingan action plan for your organization based on your SWOT analysis. Focus on creating Unique BusinessStrengths. (File Name- Impact of the Environment on the Innovation effort)

Identify all Knowledge areas where there is scope for innovation in your industry. Start with the productAnalyze the Research being done by the market leaders in business as well as the leading universitiesaround the world that concern your product design, features, manufacturing processes, raw materials andproduction technology.

Can you visualize how your products will look five and ten years from now to keep pace with the evechanging needs of the future consumer? Study the future trends relating to the design, packaging, pricingfinancing, customer service and pace of business response. Focus should be on innovation for providinga better and cheaper product backed by outstanding, cheaper and faster service with greaterconvenience for the consumer. Brain-storm your ideas within the team, list them and create an actionplan based on your SWOT analyses. Play on your strengths to construct unique strengths in yourbusiness.

You may also be required to concentrate on the emerging new product segments in existing markets,locating new customers in existing markets, promising new markets, developing new suppliers for rawmaterials, developing new raw materials that are more effective and economical. You may have to designappropriate counteracting strategies to handle the threat from competitors and substitutes.

Any other environmental. Industry, company related areas that are specific to your case?

Recognize the Industry And Company related Factors to guide the innovation effort of your TNC by thepeople associated with your Global Business System (File Name- Action plan for the people in the businesssystem for guiding the innovation effort)

Based on the list of ideas and the action plan identify what your people need to do in the R and DPurchasing, Production, Marketing, Finance and the HR departments to guide and support the innovation

effort within your organization?

Identify which new products or product extensions can be created in future for expanding your businessHow you can create customer ecstasy by fulfilling existing needs and creating new wants thereby guidingthe consumer into using the new products that are being created by you to beat the competition?

Identify the significant areas in all the business functions across your organization that requires innovativeplanning of resources. Prepare a department wise action plan.


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What your suppliers need to do to keep pace with your innovation effort? Identify their specific areas forcontribution to your innovative effort. Open all the parts and classify them into A, B and C value wiseStudy ways of making them better and cheaper.

What your people need to do in the Finance to minimize the cost of capital, maximize the internalgeneration of funds, and finding innovative ways to support customer purchases.

Any other areas that need attention and are specific to your case?

Identify the Training needs of your people associated with your business and incorporate in the TrainingCalendar (File Name-Training needs of the people associated with our business)

What your HR department needs to do for empowering and recognizing the innovation and creativity in anemployee?

What kind of internal organizational policies and programs you can have to encourage innovationcreativity and new ideas generation amongst your employees and suppliers.

Which Educational Institutions you need to use for hiring your employees with the required attitudes andcompetencies?

Identify all the training needs of the People associated with your Global Business System to promoteinnovation and out of the box thinking and incorporate in your Training Calendar.

Any other training related issues that may be specific to your case.

Communicate the efforts of your organization to the customers, stake holders and society for generating respect

What your customers need to know about the ever evolving features of your product and how they createvalue for them? How to communicate the value proposition to your consumers to justify your prices?Design your communication strategy for the consumers.

What your stake holders need to know about the above activities to enjoy the highest level of confidence

in your business? Design your communication strategy for the stake holders.

What the society at large needs to know about your organization to breed respect? Design yourcommunication strategy for the society at large.

Any other issues relating to corporate communications concerning the innovation effort that are specific toyour case?

Step 2: Identifying the A (Attitudes) factor for creating and maintaining Innovation Leadership in your business

(The following list of possible issues is illustrative and not comprehensive. Look for more specific issues related toyour business with the help of the CEOs template)

Refer to the inventory of positive attitudes and identify the Attitudes your employees must possess orneed to cultivate that are critical for creating and maintaining innovation leadership across all thefunctions of your business? List them function-wise. Do they differ for different functions within yourorganization or are they common to the entire organization?

Refer to the inventory of negative attitudes and identify the ones that will come in the way of youinnovative effort. Design a system that will help you recognize the employees and suppliers that possesssuch negative attitudes and devise ways of turning them around with effective training programs.


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Prepare a complete list for employee attitudes for each of the departments in your organization, identifycommon and specific attitudes function-wise respectively. Incorporate them in your selection criteria forrecruitments. Design the training programs for developing the required attitudes.

What Attitudes your suppliers must have or that need to be nurtured in them for creating and supportingyour innovation leadership effort in the business? Develop training programs for them and encourage

them to become a part of your team in innovation. Design the desired organizational purchase policy toreward such suppliers.

What Attitudes you wish to consciously nurture in your customers (if they dont have them) that will helpyou generate sales (repeat and new) constantly? At times you design products based on certaincustomer attitudes, identify them if this is the case with you.

What Attitudes your stake holders as well as the society need to develop regarding your innovation driveto create confidence and respect for your Corporation?

Any other issues relating to Attitudes that are specific to your case?

Step 3: Identifying theS (Skills) Factor for creating Innovation Leadership in your business


Refer to the inventory of skills and identify the ones that your employees must possess that are critical focreating and maintaining innovation leadership across all the functions of your business? List themfunction-wise. Do they differ for different functions within your organization or are they common to theentire organization?

Prepare a complete inventory of employee skills for each of the departments in your organization; identifycommon and specific skills function-wise respectively. Incorporate them in your selection criteria forrecruitments. Design the training programs for developing the required skills.

What Skills your suppliers must have or that need to be nurtured in them for creating and supporting youinnovation leadership effort in the business? Develop training programs for them and encourage them tobecome a part of your team in innovation. Design the desired organizational purchase policy to rewardsuch suppliers.

What Skills you wish to consciously nurture in your customers (if they dont have them) that will help yougenerate sales (repeat and new) constantly? At times you design products based on certain customeskills, identify them if this is the case with you.

What Skills your stake holders as well as the society need to develop regarding your innovation drive tocreate confidence and respect for your Corporation?

Any other issues relating to Skills that are specific to your case?

Step 4: Identifying theH (Habits) Factor for creating Innovation Leadership in your business



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Create your own inventory of critical Habits; the ones that your employees must possess or need tocultivate that are critical for creating and maintaining innovation leadership across all the functions of yourbusiness? List them function-wise. Do they differ for different functions within your organization or arethey common to the entire organization? Design a system to reward the people who practice these habitsand encourage the same in their subordinates.

Prepare a complete list for employee habits for each of the departments in your organization, identifycommon and specific habits function-wise respectively. Incorporate them in your training programs andemployees performance evaluation system for periodic rewards. Design the training programs fordeveloping the required attitudes.

What Habits your suppliers must have or that need to be nurtured in them for creating and supportingyour innovation leadership effort in the business? Develop training programs for them and encouragethem to become a part of your team in innovation. Design the desired organizational purchase policy toreward such suppliers.

What Habits you wish to consciously nurture in your customers (if they dont have them) that will help yougenerate sales (repeat and new) constantly? At times you design products based on certain custome

habits, identify them if this is the case with you.

What Habits your stake holders as well as the society need to develop regarding your innovation drive tocreate confidence and respect for your Corporation?

Any other issues relating to Habits that are specific to your case?

Step 5: Identifying theV (Values) Factor for creating Innovation Leadership in your business

Create an inventory of Values based on the nature of your business that your management, employees and thesuppliers must follow to guide their actions in general business situations that create Innovation Leadership.Values essentially guide your actions in a given business situation. Identify ways to promote the understandingand practice of these values by the people associated with your business system.

Step 6: Building theC (Character) of your organization for creating Innovation Leadership in your business

Generate a department-wise action plan and internal policies that address the recognized issues for each

business in the target markets selected and create your organizational design.

Step 7: WhatRare Strengths (difficult to imitate) can be created in your business now? List them. What possibleWinning Business Strategies can be designed now? Prepare a List.


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Exercise 2- Identifying critical issues for Creating and Maintaining Strategic Cost Leadership in

your global business

Eleventh Folder Name-Strategic Cost Leadership (give your solutions to each issue step-wise)

200 Marks

Objective is to do More and Faster with Lessand Just in Time constantly by incurring Profit based Costsand identifying critical issues in your business both internal as well as external to the organization. Idea is thawhen systems are created where these issues get recognized and addressed properly then the organization willalways lead the industry in terms of its costs while creating constant Innovation and competitiveness in its globabusiness. Looking at the Strategic Cost Leadership matrix answer the following questions for identifying thecritical issues involved;

Step 1: Identifying the K (Knowledge) factor for creating and maintaining Strategic Cost Leadership in youglobal business


Studying and Analyzing the Environmental Factors toguide the Strategic Cost Management effort of youTNC and creating an action plan for your organization based on your SWOT analysis. Focus on creating UniqueBusiness Strengths. (File Name- Impact of the Environment on the Strategic Cost Leadership effort)

Identify all Knowledge areas where there is scope for optimizing costs in your industry. Start with theproduct. Analyze the Research being done by the market leaders in business as well as the leadinguniversities around the world that concern your product design, features, manufacturing processes, rawmaterials and production technology.

Can you visualize how your products will look five and ten years from now to keep pace with the evechanging needs of the future consumer? Study the future trends relating to the design, packaging, pricingfinancing, customer service and pace of business response. Focus should be on innovation for providinga better and cheaper product backed by outstanding, cheaper and faster service with greater

convenience for the consumer. Brain-storm your ideas within the team, list them and create an actionplan based on your SWOT analyses. Play on your strengths to construct unique strengths in yourbusiness.

You may also be required to concentrate on the emerging new product segments in existing markets,locating new customers in existing markets, promising new markets, developing new suppliers for rawmaterials, developing new raw materials that are more effective and economical. You may have to designappropriate counteracting strategies to handle the threat from competitors and substitutes.

Any other environmental. Industry, company related areas that are specific to your case?

Recognize the Industry And Company related Factors to guide the innovation effort of your TNC by thepeople associated with your Global Business System (File Name- Action plan for the people in the business

system for guiding the Strategic Cost Leadership effort)

Based on the list of ideas and the action plan identify what your people need to do in the R and DPurchasing, Production, Marketing, Finance and the HR departments to guide and support the StrategicCost Leadership effort within your organization?

How you can create customer ecstasy by fulfilling existing cost related needs and creating new wantsthereby guiding the consumer into using the new products that are being created by you to beat thecompetition?


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Identify the significant areas in all the business functions across your organization that requires planningof profit based costs. Prepare a department wise action plan.

What your suppliers need to do to keep pace with your Strategic Cost Leadership effort? Identify theirspecific areas for contribution to your Cost Leadership effort. Open all the parts and classify them into AB and C value wise. Study ways of making them better and cheaper.

What do you need to know to create strategic cost bench marks for optimum value creation and maximumwealth generation?

What your people need to do in the Marketing department to identify and direct the organizational efforttowards creating the highest value for the customer and the organization simultaneously?

To what extent you can use tools like value engineering to curtail costs without sacrificing value for thecustomer?

What your people need to do to optimize costs in the production department?

What your people need to do in the Finance departments that can be truly considered innovative andcreative in the area of cost optimization?

How your HR function needs to empower the employees for generating value and wealth for theorganization?

What your people need to do in the Finance to minimize the cost of capital, maximize the internalgeneration of funds, and finding innovative ways to support customer purchases at lower costs.

Any other areas that need attention and are specific to your case?

Identify the Training needs of your people associated with your business and incorporate in the TrainingCalendar (File Name-Training needs of the people associated with our business)

What your HR department needs to do for empowering and recognizing the Strategic Cost Leadershipeffort and develop creativity in an employee?

What kind of internal organizational policies and programs you can have to encourage cost optimizationcreativity and new ideas generation amongst your employees and suppliers.

How creative can you get with business processes in each department and focus on profit based costs?

Which Educational Institutions you need to use for hiring your employees with the required attitudes andcompetencies?

Identify all the training needs of the People associated with your Global Business System to promote

Strategic Cost Leadership and out of the box thinking and incorporate them in your Training Calendar.

Any other training related issues that may be specific to your case.


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Communicate the efforts of your organization to the customers, stake holders and society for generating respect

What your customers need to know about the ever evolving features of your product and how they createvalue for them? How to communicate the value proposition to your consumers to justify your prices?Design your communication strategy for the consumers.

What your stake holders need to know about the above activities to enjoy the highest level of confidencein your business? Design your communication strategy for the stake holders.

What the society at large needs to know about your organization to breed respect? Design yourcommunication strategy for the society at large.

Any other issues relating to corporate communications concerning the innovation effort that are specific toyour case?

Step 2: Identifying the A (Attitudes) factor for creating and maintaining Strategic Cost Leadership in youbusiness


What Attitudes your employees must possess or need to cultivate and are critical for creating andmaintaining innovation Strategic Cost leadership across all the functions of your business? List themfunction-wise. Do they differ for different functions within your organization or are they common to theentire organization? Prepare a complete list for employee attitudes for your organization, identify commonand specific attitudes function-wise respectively.

What Attitudes your suppliers must have or need to develop for creating cost leadership in your businesson a continuous basis?

What Attitudes you wish to consciously nurture in your customers (if they dont have) that will help you selmore by educating them on the value created by your organization? At times you design products basedon certain customer attitudes, identify them if this is the case with you.

What Attitudes your stake holders as well as the society need to develop about your TNC that will raiseconfidence and respect for your organizational effort towards greater value creation?

Any other specific to your business?

Step 3: Identifying theS (Skills) Factorforcreating and maintaining Strategic Cost Leadership in your business


Refer to the inventory of skills and identify the ones that your employees must possess that are critical focreating and maintaining Strategic Cost Leadership across all the functions of your business? List themfunction-wise. Do they differ for different functions within your organization or are they common to theentire organization?


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What Skills your suppliers must have or that need to be nurtured in them for creating and supporting youStrategic Cost Leadership effort in the business? Develop training programs for them and encourage

them to become a part of your team in innovation. Design the desired organizational purchase policy toreward such suppliers.


What Skills your stake holders as well as the society need to develop regarding your Strategic CosLeadership drive to create confidence and respect for your Corporation?


Step 4: Identifying the H (Habits) Factor for creating and maintaining Strategic Cost Leadership in youbusiness


Create your own inventory of critical Habits; the ones that your employees must possess or need tocultivate that are critical for creating and maintaining Strategic Cost Leadership across all the functions oyour business? List them function-wise. Do they differ for different functions within your organization orare they common to the entire organization? Design a system to reward the people who practice thesehabits and encourage the same in their subordinates.

Prepare a complete list for employee habits for each of the departments in your organization, identify

common and specific habits function-wise respectively. Incorporate them in your training programs andemployees performance evaluation system for periodic rewards. Design the training programs fordeveloping the required attitudes.

What Habits your suppliers must have or that need to be nurtured in them for creating and supportingyour Strategic Cost Leadership effort in the business? Develop training programs for them and encouragethem to become a part of your team in innovation. Design the desired organizational purchase policy toreward such suppliers.

What Habits you wish to consciously nurture in your customers (if they dont have them) that will help yougenerate sales (repeat and new) constantly? At times you design products based on certain customehabits, identify them if this is the case with you.

What Habits your stake holders as well as the society need to develop regarding your Strategic CostLeadership drive to create confidence and respect for your Corporation?



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Step 5: Identifying the V (Values) Factor for creating and maintaining Strategic Cost Leadership in youbusiness

Create an inventory of Values based on the nature of your business that your management, employees and thesuppliers must follow to guide their actions in general business situations that create Strategic Cost Leadership

Values essentially guide your actions in a given business situation. Identify ways to promote the understandingand practice of these values by the people associated with your business system.

Step 6: Identifying the C (Character) of your organization for creating and maintaining Strategic CosLeadership in your business



Step 7: What Rare Strengths (difficult to imitate) can be created in your business now? List them. What possibleWinning Business Strategies can be designed now? Prepare a List.


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Exercise 3- Identifying critical issues for creating and maintaining Service Leadership in your

global business

Twelfth Folder Name-Service Leadership (give your solutions to each issue step-wise)

200 Marks

Objective is to create an Emotional Bond with the People associated with your business both internally andexternally, and cultivate their loyalty for the organization constantly by identifying critical issues both internal aswell as external to the organization. Idea is that when systems are created where these issues get recognizedand addressed properly then the organization will always lead the industry by creating a strong emotional bondwith its employees, customers, stake holders and society at large. Looking at the Service Leadership matrixanswer the following questions for identifying the critical issues involved;

Step 1: Identifying the K(Knowledge) factor forcreating and maintaining Service Leadership in your business


Identify all Knowledge areas related to your global business that are critical for you to focus on an

ongoing basis for creating Service leadership. What your people need to do in the Marketing department to create an image of being a service leader in

the industry while innovating ways to optimize on service costs simultaneously?

Can you visualize how your products will need to be served to keep pace with the ever changing needs ofthe future consumer? How you can create customer ecstasy and beat competition through service?

What your people need to do to bring about innovation in the service department? How to minimize theservice time?

What your customers need to know about the features of your service and how it creates greater value forthem?

What your suppliers need to do to create and maintain the service leadership image of your organization?

What your people need to do in the Finance that can be truly considered innovative in the area ofshareholder service and retention of wealth creators both internal and external to your organization?

What your organization needs to do in the HR department that can be truly considered innovative in the

area of employee retention and identification of wealth creators both internal and external to yourorganization?

What your stake holders need to know about your service to them to enjoy the highest level of confidenceand create respect for your organization?

What the society at large needs to know about your organization s service to the society to commandrespect?

Any other specific to your business?


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Step 2: Identifying the A (Attitudes) factor forcreating and maintaining Service Leadership in your business


What Attitudes your employees must possess and are critical for creating the Service Leadership in your

business. Identify them across all the functions of your business? List them function-wise. Do they diffefor different functions within your organization or are they common to the entire organization? Prepare acomplete list for employee attitudes for your organization, identify common and specific attitudes functionwise respectively. What the organization must do to identify the wealth creators within and to createemotional bond with them necessary for loyalty?

What Attitudes your suppliers must have for creating Service leadership in your business? What theorganization must do to create an emotional bond with these suppliers for generating respect and loyalty?

What Attitudes you wish to consciously nurture in your customers (if they dont have) that will help youbeat your competition through the service standards? At times you design products based on certaincustomer attitudes, identify them if this is the case with you.

How to shape the organizational attitudes and culture to create an emotional bond with the endconsumers/ customers for generating loyalty and respect?

What Attitudes your stake holders as well as the society need to develop about your service that will

create an emotional bond, respect and their loyalty? Any other specific to your business?

Step 3: Identifying theS (Skills) Factor forcreating and maintaining Service Leadership in your business


Refer to the inventory of skills and identify the ones that your employees must possess that are critical focreating and maintaining Service Leadership across all the functions of your business? List them functionwise. Do they differ for different functions within your organization or are they common to the entireorganization?


What Skills your suppliers must have or that need to be nurtured in them for creating and supporting youService Leadership effort in the business? Develop training programs for them and encourage them tobecome a part of your team in innovation. Design the desired organizational purchase policy to rewardsuch suppliers.


What Skills your stake holders as well as the society need to develop regarding your Service Leadershipdrive to create confidence and respect for your Corporation?



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Step 4: Identifying theH (Habits) Factor forcreating and maintaining Service Leadership in your business


Create your own inventory of critical Habits; the ones that your employees must possess or need tocultivate that are critical for creating and maintaining Service Leadership across all the functions of yourbusiness? List them function-wise. Do they differ for different functions within your organization or arethey common to the entire organization? Design a system to reward the people who practice these habitsand encourage the same in their subordinates.

Prepare a complete list for employee habits for each of the departments in your organization, identifycommon and specific habits function-wise respectively. Incorporate them in your training programs andemployees performance evaluation system for periodic rewards. Design the training programs fodeveloping the required attitudes.

What Habits your suppliers must have or that need to be nurtured in them for creating and supportingyour Service Leadership effort in the business? Develop training programs for them and encourage them

to become a part of your team in innovation. Design the desired organizational purchase policy to rewardsuch suppliers.

What Habits you wish to consciously nurture in your customers (if they dont have them) that will help yougenerate sales (repeat and new) constantly? At times you design products based on certain customehabits, identify them if this is the case with you.

What Habits your stake holders as well as the society need to develop regarding your Service Leadershipdrive to create confidence and respect for your Corporation?


Step 5: Identifying theV (Values) Factor forcreating and maintaining Service Leadership in your business

Create an inventory of Values based on the nature of your business that your management, employees and thesuppliers must follow to guide their actions in general business situations that create Strategic Cost LeadershipValues essentially guide your actions in a given business situation. Identify ways to promote the understandingand practice of these values by the people associated with your business system.

Step 6: Identifying theC (Character) of your organization for creating and maintaining Service Leadership inyour business



Step 7: What Rare Strengths (difficult to imitate) can be created in your business now? List them. What possibleWinning Business Strategies can be designed now? Prepare a List.


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THE CEO TEMPLATE FOR NURTURING PEOPLE: CREATING WORLD CLASS TRANS NATIONALCORPORATIONS THAT CREATE GLOBAL BUSINESS LEADERSHIP

THROUGH SUCCESS IN INTERNATIONAL MARKETING

I] Innovation Leadership Matrix: How to be First and create Product and Service Differentiation?

Objective is Information/ Innovation leadership-Critical Issues Identification

People Production ( People ) Marketing ( People ) Finance ( People ) H R (People)

Internal External Internal External Internal External Internal ExternalAreas

Employees Suppliers Employees Customers EmployeesStakeHolders Employees Society

Knowledge

Attitudes

Skills

Habits

Values

Character or Business Strategies

II] Strategic Cost Leadership Matrix-How to do "More and Faster" with "Less andJust-in-Time"?

Objective is to optimize costs while creating innovation-Critical Issues Identification


Internal External Internal External Internal External Internal External

AreasEmployees Suppliers Employees Customers Employees

StakeHolders Employees Society

Knowledge

Attitudes

Skills

Habits

Values



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III] Service Leadership Matrix-How to create "Emotional Bonding" and GlobalRespectability for creating Peoples Loyalty?

Objective is to bond with the critical people in your business system-Critical Issues Identification


Internal External Internal External Internal External Internal ExternalAreas

Employees Suppliers Employees Customers EmployeesStakeHolders Employees Society

Knowledge

Attitudes

Skills

Habits

Values


International Marketing Game-Global Business Leadership Creation

Documents

Transcript of International Marketing Game-Global Business Leadership Creation