Globalization

Globalization is a featured research topic and an initiative at Harvard Business School.
 
The globalization of business has long encouraged Harvard Business School (HBS) faculty to research international business practices and the effects of globalization. Seminal contributions - Christopher Bartlett on managing across borders, Michael Porter on competition in global industries, and Louis Wells on foreign investment in emerging markets - helped pave today’s global research path. Supported by eight Global Research Centers that facilitate our contact with global companies and the collection of international data, key investigations concentrate on the effectiveness of management practices in global organizations; cross-cultural learning and adaptation processes; the challenges of taking companies global; emerging-market companies with global potential; and international political economy and its impact on economic development.
  1. Globalization in Historical Perspective

    Pankaj Ghemawat and Geoffrey Jones

    This chapter explores the role that firms have played over time in promoting international trade and investment. It takes a chronological perspective and is organized around a first wave of globalization from the mid-nineteenth century until the 1920s and a second wave that started after World War 2, intensified from the 1980s until around the 2008 global financial crisis.

    Keywords: globalization; international business; international marketing; History; Marketing; Investment; Trade; Globalization;

    Citation:

    Ghemawat, Pankaj, and Geoffrey Jones. "Globalization in Historical Perspective." Chap. 3 in The Laws of Globalization and Business Applications, by Pankaj Ghemawat, 56–81. New York: Cambridge University Press, 2017. View Details
  2. Godiva Japan: Think Local, Scale Global

    Rohit Deshpandé, Esel Cekin and Akiko Kanno

    This case tracks Jerome Chouchan’s strategies and execution for a successful turnaround of Godiva Japan’s operations which was experiencing a decline in sales when he became the managing director of the company in 2010. Through various initiatives and innovations, Godiva Japan had targeted a variety of demographic segments in different sales points, acquired new customers and created a moment of luxurious consumption for all ages. Accordingly, within Godiva’s global enterprise, Godiva Japan had become number two in terms of worldwide sales and number one in terms of profits. It exported made-in-Japan products and concepts to Godiva’s other markets. How could Chouchan keep the momentum and sustain Godiva Japan’s top-line and bottom-line growth going forward? Would he be able to keep the balance between aspirational and accessible? How much of the success in Japan might contribute to the growth of Godiva's global sales?

    Keywords: branding; internationalization; Product; innovation; positioning; customer segmentation; occasion-based segmentation; Execution; Talent; change management; customer-focused strategies; Product Positioning; Globalized Firms and Management; Change Management; Talent and Talent Management; Customer Focus and Relationships; Product; Segmentation; Innovation and Invention; Brands and Branding; Retail Industry; Food and Beverage Industry; Japan;

    Citation:

    Deshpandé, Rohit, Esel Cekin, and Akiko Kanno. "Godiva Japan: Think Local, Scale Global." Harvard Business School Case 517-056, January 2017. (Revised January 2017.) View Details
  3. Africa's New Generation of Innovators

    Clayton M. Christensen, Efosa Ojomo and Derek van Bever

    With a young, urbanizing population, abundant natural resources, and a growing middle class, Africa seems to have all the ingredients necessary for huge growth. Nevertheless, a number of multinationals have recently left the continent, discouraged by widespread corruption, a lack of infrastructure and ready talent, and an underdeveloped consumer market. Some innovators, however, have succeeded by building franchises to serve poorer consumer segments; tapping the vast opportunity represented by nonconsumption; internalizing risk to build strong, self-sufficient, low-cost enterprises; and integrating operations to avoid corruption. The difference, the authors believe, lies in the choice between “push” and “pull” investment. MNCs seek growth by pushing current products onto emerging middle-class consumers. They retain some large portion of their existing cost structure and operating style, and thus set prices that limit market penetration. The winning strategy diverges from this approach in almost every respect. When innovators develop products that people want to pull into their lives, they create markets that serve as a foundation for sustainable growth and prosperity.

    Keywords: Innovation Strategy; Multinational Firms and Management; Economic Growth; Africa;

    Citation:

    Christensen, Clayton M., Efosa Ojomo, and Derek van Bever. "Africa's New Generation of Innovators." Harvard Business Review 95, no. 1 (January–February 2017): 129–136. View Details
  4. Public Mission, Private Funding: The University of California, Berkeley

    William C. Kirby and Joycelyn W. Eby

    UC Berkley, long known as one of the leading public universities in both the U.S. and the world, has seen turbulent times recently. While student enrollment and costs have increased steadily in recent years, the school, which has been fiercely proud of its public mission, received ever diminished funding from the State of California. Although Berkeley survived the financial crisis of 2008 under the leadership of Chancellor Robert Birgeneau, new Chancellor Nicholas Dirks inherited an ongoing structural deficit and a divided faculty. New controversies arose over the process of strategic planning, the building of a “Global Campus” in neighboring Richmond Bay, and allegations of sexual misconduct on the part of faculty and administrators. Can Berkeley overcome these challenges and maintain its distinguished reputation with its current governance structure and status as a privately funded public university?

    Keywords: higher education; Public University; university administration; conflict management; State Funding; competition; Faculty Governance; University of California Berkeley; Change Management; Volatility; Diversity; Residency; Higher Education; Giving and Philanthropy; Globalization; Policy; Leading Change; Crisis Management; Growth and Development Strategy; Organizational Design; Privatization; Problems and Challenges; Education Industry; United States;

    Citation:

    Kirby, William C., and Joycelyn W. Eby. "Public Mission, Private Funding: The University of California, Berkeley." Harvard Business School Case 317-023, December 2016. View Details
  5. Muñoz Group Faces Brexit

    Forest Reinhardt and Annelena Lobb

    In 2016, Muñoz Group, a multifaceted agribusiness company that developed, produced, packed, imported and exported citrus, flowers, grapes, juice, and ice cream, faced an unexpected new challenge in the British public’s vote for the United Kingdom to exit the European Union. The outcome of the vote led to uncertainty around investment conditions, instability in the pound, growth in anti-immigrant sentiment, and other changes. This created unusual business conditions for Muñoz Group’s CEO, Alvaro Muñoz, who had to decide how to adjust his strategy for the coming years, given that his company was headquartered in the UK - but did business all over the world.

    Keywords: Agribusiness; Globalization; Intellectual Property; Government and Politics; Agriculture and Agribusiness Industry; Europe;

    Citation:

    Reinhardt, Forest, and Annelena Lobb. "Muñoz Group Faces Brexit." Harvard Business School Case 717-006, December 2016. View Details
  6. Bayern Munich in China

    Karim Lakhani, Sascha L. Schmidt, Michael Norris and Kerry Herman

    In 2015, German football club Bayern Munich is considering how to enter the Chinese market. Should it build its own infrastructure or rely on third-party partnerships to reach this massive football fanbase?

    Keywords: football; soccer; Sports; China; Germany; Bundesliga; Digital technology; Market entry; Sports; Global Strategy; Online Technology; Sports Industry; Germany; China;

    Citation:

    Lakhani, Karim, Sascha L. Schmidt, Michael Norris, and Kerry Herman. "Bayern Munich in China." Harvard Business School Case 617-025, November 2016. View Details
  7. Yili Group: Building a Global Dairy Company

    William C. Kirby and Nancy Hua Dai

    From its humble beginnings as a local Chinese dairy company, the Inner Mongolia Yili Group has become one of the largest dairy companies in the world. To achieve this Yili has aggressively expanded its footprint overseas including building the world’s largest integrated dairy production base in New Zealand and forming R&D partnerships in Europe and North America. As the company continues its growth in the context of a slowing Chinese economy, how can Yili integrate its new global resources and supply chain to meet local market needs and become a top five global dairy company in the process?

    Keywords: global strategy; Globalized Markets and Industries; Global Supply Chain; growth and development strategy; brands and branding; competition; culture; Agribusiness; Animal-Based Agribusiness; Business Growth and Maturation; Food; Global Range; Local Range; Cross-Cultural and Cross-Border Issues; Global Strategy; Globalized Firms and Management; Nutrition; Employee Relationship Management; Growth and Development Strategy; Growth Management; Brands and Branding; Supply Chain; Agriculture and Agribusiness Industry; Food and Beverage Industry; China;

    Citation:

    Kirby, William C., and Nancy Hua Dai. "Yili Group: Building a Global Dairy Company." Harvard Business School Case 317-003, October 2016. View Details
  8. DO & CO: Gourmet Entertainment

    Juan Alcacer and Esel Çekin

    This case is about a global catering, restaurant, and hospitality company, DO & CO, growing geographically with its existing businesses while also adding new brands to its portfolio. The company had $1 billion in revenues in 2015 from its three divisions: airline catering; international event catering; and restaurants, lounges, hotels, and retail. DO & CO had limitless opportunities to grow along three dimensions. It had operations in only 10 countries, while its competitors in airline catering were active in up to 50 countries. Thus, geographic expansion was one of the key growth options. DO & CO could also offer more to its existing clients in existing markets, providing vertical growth opportunities. It could also pursue an added-value approach by bringing new formats to existing markets. The last avenue of growth was more opportunistic and came from acquiring new brands in existing or new markets. However, the company had a policy of promoting from within, particularly with its chefs, and it took time to develop the necessary talent. Now DO & CO faced a decision: What type of growth should it pursue, and at what pace?

    Keywords: strategy; corporate strategy; international expansion; operational constraints; three-dimensional growth; value-added approach; value creation; competition; brand acquisition; airline catering; airline industry; event catering; hospitality; profitable growth; team management; Competition; Talent and Talent Management; Corporate Strategy; Operations; Brands and Branding; Value Creation; Globalized Firms and Management; Expansion; Acquisition; Growth and Development Strategy; Food and Beverage Industry; Air Transportation Industry; Service Industry;

    Citation:

    Alcacer, Juan, and Esel Çekin. "DO & CO: Gourmet Entertainment." Harvard Business School Case 717-416, October 2016. (Revised November 2016.) View Details
  9. Zurich Insurance: Global Job Structure and Data Analysis

    Boris Groysberg and Katherine Connolly

    Zurich Insurance was undergoing organizational change after implementing five new people practices focused on manager development, diversity and inclusion, job model and data analytics, recruitment, and talent pipeline. The case “Zurich Insurance: Fostering Key People Management Practices” (HBS No. 417-035) provides background for the company and an outline of each people practice. This case takes a closer look at the implementation of a global job model and how it has enabled the use of data analytics in the human resources function.

    Keywords: managing change; human capital; human resources; leadership; Insurance; Organizational Change and Adaptation; organizational culture; organizational behavior; organizational architecture; Organizational Change and Adaptation; Leadership; Human Capital; Change Management; Organizational Structure; Insurance; Organizational Culture; Globalization; Human Resources; Insurance Industry;

    Citation:

    Groysberg, Boris, and Katherine Connolly. "Zurich Insurance: Global Job Structure and Data Analysis." Harvard Business School Case 417-038, September 2016. View Details
  10. Monitoring Global Supply Chains

    Jodi L. Short, Michael W. Toffel and Andrea R. Hugill

    Firms seeking to avoid reputational spillovers that can arise from dangerous, illegal, and unethical behavior at supply chain factories are increasingly relying on private social auditors to provide strategic information about suppliers' conduct. But little is known about what influences auditors' ability to identify and report problems. Our analysis of nearly 17,000 supplier audits reveals that auditors report fewer violations when individual auditors have audited the factory before, when audit teams are less experienced or less trained, when audit teams are all-male, and when audits are paid for by the audited supplier. This first comprehensive and systematic analysis of supply chain monitoring identifies previously overlooked transaction costs and suggests strategies to develop governance structures to mitigate reputational risks by reducing information asymmetries in supply chains. Firms seeking to avoid reputational spillovers that can arise from dangerous, illegal, and unethical behavior at supply chain factories are increasingly relying on private social auditors to provide strategic information about suppliers’ conduct. But little is known about what influences auditors’ ability to identify and report problems. Our analysis of nearly 17,000 supplier audits reveals that auditors report fewer violations when individual auditors have audited the factory before, when audit teams are less experienced or less trained, when audit teams are all-male, and when audits are paid for by the audited supplier. This first comprehensive and systematic analysis of supply chain monitoring identifies previously overlooked transaction costs and suggests strategies to develop governance structures to mitigate reputational risks by reducing information asymmetries in supply chains.

    Keywords: Monitoring; transaction cost economics; industry self-regulation; auditing; Codes of conduct; supply chains; corporate social responsibility; globalization; Corporate Social Responsibility and Impact; Supply Chain; Globalization;

    Citation:

    Short, Jodi L., Michael W. Toffel, and Andrea R. Hugill. "Monitoring Global Supply Chains." Strategic Management Journal 37, no. 9 (September 2016): 1878–1897. (Video abstract (4 minutes). Working Knowledge article for practitioners.) View Details
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