A few years ago globalisation meant paring off a business function and moving it abroad: a factory in China, a call centre in India. Today, chief executives see globalisation as intrinsic to their businesses; as a means of accessing the best resources, wherever they are. It is now also a gateway to new market opportunities.
Very recently, all companies listed on the Stock Exchange of Thailand announced their business results from the second quarter. Many of them reported better-than-expected results, amidst the challenging political environment in Bangkok and other major cities in that quarter. Those who managed to leapfrog and capture business demand over their competitors, especially in the modern-trade, automotive, export and property-development sectors, had one thing in common: a strong passion with wide global considerations and impact. For instance, many businesses were able to continue to operate and provide their products and services without interruption through branches and other locations. In the export sector there was a particular show of quality work and competitiveness. In June, Thai exporters reached out to their global prospects with record-high growth of 46.3 per cent compared to the same period last year, with a total export value announced by the Commerce Ministry of US$18 billion.
To expand their businesses in the medium to long term, many Thai-owned companies are considering, or in the process of, expanding to serve regional and global demand.
There are some questions to ask yourself if you aim to join the next generation of globalised organisations: How does a company quickly reach new multilingual or multicultural markets? How does it reduce costs and align expenses with business objectives on a global basis? How does a company control corporate and product branding and build worldwide loyalty? How can we collaborate effectively with employees, partners, suppliers and customers in any language and with cultural respect?
The business world is changing faster and more unpredictably than ever. Markets are expanding worldwide, creating economic interdependencies, global operations, workforce mobility and global regulations. To stay competitive, your business needs to move with the changes and achieve the speed, flexibility and resilience to handle whatever the market does next, on a worldwide basis.
To thrive on a global level, smarter businesses that plan to grow should consider these points:
-Be agile, with flexible operations, such as short-term leases and local workforces.
-Have modular technology for rapid reconfiguration and seamless integration with multiple partners.
-Develop leaders with multiple global experiences for the skills to manage diverse markets.
-Enable employees to learn and adjust themselves to a new culture that may be required when doing business globally, and provide them with strong tools for collaboration, so they can function cohesively, regardless of location.
Since globalisation is a strategic initiative, it does not require a separate business case. However, it does mean that you need a strategy that supports your global business ambitions and eliminates roadblocks that keep you from maximising the value of business globalisation.
Thanwa Laohasiriwong is country general manager of IBM Thailand. Follow his articles in Hi! Managers on every third Friday of the month.