How can we work globally and locally?

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Example # 1: Unilever.
Example # 2: P&G.
Example # 3: LG.
Example # 4: Huawei.
Example # 5: Coca-Cola.
Example # 6: BP.
Example # 7: Novartis.
Example # 8: GE Healthcare.
Example # 9: GlaxoSmitKline.
Example # 10: Nestlé.
Example # 11: Starbucks.
Example # 12: McDonald's.
Example # 13: KFC.
Example # 14: Pizza Hut.
Example # 15: Virgin radio.
Example # 16: Nike.

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How can we work globally and locally?

  1. 1. Global and local
  2. 2. Example # 1
  3. 3. Vijay Mahajan: Africa Rising, p. 135. In Nigeria, where 3.5 million babies are born every year, Unilever distributes 1 million free samples of products such as Pears baby lotion to mothers in maternity clinics and hospitals. The company has worked with the nurses and midwives association to educate mothers about baby care.
  4. 4. www.linkedin.com/hp/update/6211922053738565632
  5. 5. Further inspiration http://www.slideshare.net/frankcalberg/nigeria-37667606
  6. 6. Example # 2
  7. 7. http://www.mckinsey.com/insights/marketing_sales/think_regionally_act_locally_four_steps_to_reaching_the_asian_consumer P&G cut the price of Crest toothpaste more than 50% in China by reducing the cost of packaging, which is less important to consumers than being able to choose from a variety of flavours.
  8. 8. Further inspiration http://www.slideshare.net/frankcalberg/china-19154166
  9. 9. Example # 3
  10. 10. http://www.mckinsey.com/insights/marketing_sales/think_regionally_act_locally_four_steps_to_reaching_the_asian_consumer Noting, for example, that many Indians use their TVs to listen to music, LG introduced new models with better speakers and, to keep prices competitive, less costly displays.
  11. 11. http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4358 Intensive customer research and feedback determine the kind of adaptations to be made to products - the colour of refrigerators, for instance. The generous use of oil and strong spices such as turmeric in Punjabi cooking can stain pastel-colored appliances, which is why more intense shades do particularly well in that market.
  12. 12. Further inspiration http://www.slideshare.net/frankcalberg/india-3549567
  13. 13. Example # 4
  14. 14. We don't think localization is just about local hiring, local tax contribution, and localized products. Our view is that the next level of localization is about collaborating with the best local businesses in various disciplines and specialized fields, and integrating their innovation into our global value chain. http://www.huawei.eu/press-release/huawei-builds-global-value-chain-integrating-globalization-and-localization Ken Hu
  15. 15. Example # 5
  16. 16. http://www.strategy-business.com/article/00093?pg=all One innovation that came out of India is the solar- powered coolers. We’re looking to expand that to other markets. There’s great engineering talent in India. Another product that shows promise is Minute Maid’s Pulpy, an orange juice with pulp that did extremely well in China. We expanded it into many countries.
  17. 17. http://knowledge.wharton.upenn.edu/article/coca-cola-on-the-yangtze-a-corporate-campaign-for-clean-water-in-china/ The World Wildlife Fund (WWF) works with Coca-Cola, which operates 39 bottling plants in China, to improve the water quality of the upper reaches of the Yangtze river, which provides China with 35% of its fresh water and is the longest river in Asia. For example, WWF and Coca-Cola work with rural farmers to reduce the runoff of animal waste into the river by turning pig waste into biogas, a type of fuel that can be used for cooking and heating.
  18. 18. Vijay Mahajan: Africa Rising, p. 102. In Morocco, The Coca-Cola Company sponsored its own university, teaching shopkeepers how to use Excel spreadsheets and training salespeople.
  19. 19. Further inspiration https://www.teacherspayteachers.com/Product/What-do-great-teachers-do-2178430
  20. 20. Example # 6
  21. 21. Vijay Mahajan: Africa Rising, page 93. For Coartem [an antimalarial drug], Novartis has created extensive educational materials and blister packs with illustrations to encourage proper use of the drugs. The company has even created comic books in different languages for children to raise awareness of malaria and discuss its prevention and treatment.
  22. 22. Learning strategies https://www.teacherspayteachers.com/Product/Learning-strategies-1487708
  23. 23. Example # 7
  24. 24. http://www.gsk.com/ enlisted midwives to distribute specialized vaccines to infants in the Philippines. http://www.mckinsey.com/insights/telecommunications/capturing_the_promise_of_mobile_banking_in_emerging_markets
  25. 25. Example # 8
  26. 26. http://www.nestle.com/ taps into the technologies and expertise of more than 1 million researchers around the world. http://itssaulconnected.com/archives/2009/05/law-of-large-numbers/
  27. 27. For the food industry, where cultural sensitivities and local tastes are very important, it's absolutely imperative that we delegate substantial authority to local management. Helmut Maucher http://www.strategy-business.com/article/19753?pg=all
  28. 28. http://hbswk.hbs.edu/item/5529.html Since World War II, Nestlé's milk has by and large been produced by thousands of small farmers in developing countries.
  29. 29. In Brazil, Nestlé engages rural women to operate as distributors. They travel door-to-door demonstrating product benefits and selling directly to consumers. By creating incentives for local retail entrepreneurs rather than hiring salaried employees or franchise holders, the company reduces its need to monitor individual sales performance. http://www.bcg.com/impact_expertise/publications/files/Next_Billions_Business_Strategies_Enhance_Food_Value_Chains_Jan_2009.pdf
  30. 30. Nestlé has provided the technology, training, and supply-chain investments to make it possible for the small farmer to produce good-quality milk, transport it, and sell it to the company. http://hbswk.hbs.edu/item/5529.html
  31. 31. Further inspiration https://www.teacherspayteachers.com/Product/Farming-innovation-1711981
  32. 32. Example # 9
  33. 33. A https://www.starbucks.com/ café in Fukuoka, Japan, is designed with 2000 interlocking wood blocks, to give the impression of a forest to fit with the spirit of Shintoism: honouring nature. http://realbusiness.co.uk/article/27492-how-starbucks-adapts-to-local-tastes-when-going-abroad
  34. 34. FukuokaStarbucks http://realbusiness.co.uk/article/27492-how-starbucks-adapts-to-local-tastes-when-going-abroad
  35. 35. Further inspiration https://www.teacherspayteachers.com/Product/Japan-1651244
  36. 36. Example # 10
  37. 37. McDonald’s serves vegetarian burgers in India and spicy ones in Mexico. http://www.economist.com/node/18584204
  38. 38. Vijay Mahajan: Africa Rising, p. 90. In crowded cities, delivery is essential for businesses from fast food to groceries. The streets are congested, and parking is unavailable. Home delivery has emerged as the most important channel for sales. McDonald’s and other fast-food restaurants carry meals through traffic in Cairo on delivery scooters.
  39. 39. Example # 11
  40. 40. The secret to the success KFC in China can be traced to its use of local ingredients - both in its management team and on its menus. Sources http://www.bloomberg.com/news/2011-01-26/mcdonald-s-no-match-for-kfc-in-china-where-colonel-sanders-rules-fast-food.html http://resources.alibaba.com/topic/531563/KFC_s_localization_strategy_in_China_.htm https://www.mckinseyquarterly.com/Think_regionally_act_locally_Four_steps_to_reaching_the_Asian_consumer_2436
  41. 41. Further inspiration https://www.teacherspayteachers.com/Product/How-can-we-reimagine-the-restaurant-experience-1453613
  42. 42. Example # 12
  43. 43. We customize our international flavors to suit local preferences, and 20% of our overall menu is localized. World over, the toppings at Pizza Hut are mainly beef and pepperoni. But in India, where up to 60% of the people are estimated to be vegetarian, we have more variety in vegetarian toppings. Anup Jain http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4358
  44. 44. Example # 13
  45. 45. Radio stations create their own community. A radio station is in fact “a family”, and the listener is invited to become involved with the activities of this family, on a daily basis. http://www.virgin.com/music/why-global-v-local-holds-the-key-to-radios-future
  46. 46. Global is music, social media, information and news. http://www.virgin.com/music/why-global-v-local-holds-the-key-to-radios-future
  47. 47. Further inspiration https://www.teacherspayteachers.com/Product/How-can-music-help-people-1380375
  48. 48. Example # 14
  49. 49. The production of http://www.nike.com/ footwear and apparel is contracted to around 765 factories globally. Materials for those products are supplied by hundreds more vendors. And those products use a palette of more than 16,000 materials. http://www.theguardian.com/sustainable-business/2014/jan/24/davos-2014-climate- change-resource-security-sustainability-day-three-live#block-52e25de2e4b0eef20140f0e4
  50. 50. Example # 15
  51. 51. https://hbr.org/2007/02/cocreating-businesss-new-social-compact When BP sought to market a duel-fuel portable stove in India, it set up one such co-creation system with 3 Indian NGOs.
  52. 52. https://hbr.org/2007/02/cocreating-businesss-new-social-compact The system allowed BP to bring the innovative stove to a geographically dispersed market through myriad local distributors without incurring distribution costs so high that the product would become unaffordable.
  53. 53. https://hbr.org/2007/02/cocreating-businesss-new-social-compact The company sold its stoves profitably, the NGOs gained access to a lucrative revenue stream that could fund other projects, and consumers got more than the ability to sit down to a hot meal - they got the opportunity to earn incomes as the local distributors and thus to gain economic and social influence.
  54. 54. Example # 16
  55. 55. www.ge.com has 420 factories around the world giving us tremendous flexibility. We used to have 1 site to make locomotives. Now we have multiple global sites. http://fortune.com/2016/05/20/ge-immelt-globalization/ Jeff Immelt

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