GLOBAL EMPLOYERSThe Context for International

Education

George S. YipDean and Professor

Rotterdam School of Management,Erasmus University

How Do Companies See the World?

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The World by Population

3

The World by GDP

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HOMEBUSINESS

Source: José de la Torre, UCLA

The Internationalist

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HOLDINGCOMPANY

Source: José de la Torre, UCLA

The Federalist

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GlobalHQ

Source: José de la Torre, UCLA

The Global Maximizer

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A Typical Multinational Today

Canada:•Marketing SubsidiariesUnited States:

•R&D Center•Manufacturing Plant

Mexico:Marketing Subsidiaries

Germany:•Eight Manufacturing Facilities•Corporate Headquarters

Russia:•Kaliningrad Assembly Plant

Brazil:•Curitiba (Tritec Motors)

United Kingdom:•Four Manufacturing Plants

South Africa:•Rosslyn Manufacturing Plant

Egypt:•Kairo Assembly Plant

Thailand:•Rayong Assembly Plant

Malaysia:•Kuala Lumpur Assembly Plant

Switzerland:•Manufacturing Plant•R&D Center

China:•Shenyang Joint venture with Brilliance China Automotive

Indonesia:•Jakarta Assembly Plant

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The global company does not have to be everywhere, but it has the

capability to go anywhere, deploy any assets, and access any

resources. And it maximizes profits on a global basis.

The Global Company

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• Global Market Participation

• Global Products

• Global Activity Location

• Global Marketing

• Global Competitive Moves

Global Strategy Levers

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Large Global Segment and Smaller National Niches

National Segments

Shift to Global Segmentation

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Large

Standardized

Core

Customized Periphery

The Real Global Product

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Honda’s Global Accord

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Perception

Social Ethics

Competitors

Technology Changes

Regulations

Shareholders

Customers

Political considerations

Processes

Culture

Knowledge

Structure

Assets

Technology

People

Processes

Culture

Knowledge

Structure

Assets

Technology

People

Perception

Social Ethics

Competitors

Technology Changes

Regulations

Shareholders

Customers

Political considerations

Control & Coordination

Perception

Social Ethics

Competitors

Technology Changes

Regulations

Shareholders

Customers

Political considerations

Processes

Culture

Knowledge

Structure

Assets

Technology

People

Processes

Culture

Knowledge

Structure

Assets

Technology

People

Processes

Culture

Knowledge

Structure

Assets

Technology

People

Perception

Social Ethics

Competitors

Technology Changes

Regulations

Shareholders

Customers

Political considerations

Control & Coordination

Competitors

Customers

Stakeholders

Social Ethics

Political Considerations

Perception

Regulations

Technology Changes

Competitors

Customers

Stakeholders

Social Ethics

Political Considerations

Perception

Regulations

Technology Changes

A World of Global Sourcing

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Shift the Burden of Proof

Old Assumption Act local unless you can prove otherwise

New Assumption Act global unless you can prove otherwise

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Number of emerging market companies in the Global Fortune 500 (2002 - 2008)

0102030405060

2002 2003 2004 2005 2006 2007 2008

Nu

mb

er

of

co

mp

an

ies

Many will work for emerging economy companies

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05

101520253035

Number in the Global Fortune 500

20072008

Rise of Emerging Economy Firms

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The world is getting flatter.

And so are companies.

Management 2.0

Implications for Graduates

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Graduates Will Have to be Able to Work Anywhere with Anyone

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Specifications of International Manager

• actively analytical

• willing to take risks

• action-oriented

• constructive not defensive

• multidimensional thought

• information from many sources

• sensitive to the needs of others

• delegate and trust

• live with ambiguity and complexity

Source: Paul Sparrow (1999) in Pat Joynt and Bob Morton, The Global HR Manager, London: Institute of Personnel and Development, 1999

Globalizing the Educ. Inst. Business Model

SCOPE

Nature of Inputs

Nature of Outputs Channels

How Transform

Inputs

Nature of Customers

ORGANIZATION

DIFFERENTIATION

Globalizing the Business Model:Inputs

What nationalities of students?

• What mix?

• Quotas or not?

• Proportionate to what?

• Global population

• Global GDP

• Employers

Other demographics?

Higher fees paid by foreign students

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Globalizing the Business Model:Scope (Location)

The false analogy with businesses

• Hard to recreate the production system

• Campus experience

• Reluctance of faculty to travel

Full duplication very expensive and very rare

Consider local competition

Too late for China?

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Globalizing the Business Model:Differentiation

So Does Being International Really Matter? Not the primary differentiator

Not the primary differentiator

But as added value

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Globalizing the Business Model:How Transform Outputs

Technology?

Univ. of Western Ontario, Ivey School’s three screen classroom

Internet and Web?Only as supplement

Language?

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Globalizing the Business Model:How Transform Outputs, cont.

Sourcing Faculty

• Nationality?

• Teachers or Researchers?

• Ladder or Adjuncts?

• Local or fly in?

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Globalizing the Business Model:Channels

Location of First Jobs

• The school as migration agency

Mismatch with employer needs Unhappy graduates Manage expectations Major career services investment

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Globalizing the Business Model:Nature of Customers

Changing international needs of:

• Consulting firms

• Investment banks

• Multinational companies

• Emerging economy companies

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Conclusions

• Educational Institutions have to globalize their business models

• But many ways to do it

• Pace of change is accelerating

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Rate of Change

“When the rate of change inside the company

is exceeded by the rate of change outside the company,

the end is near.”

Jack Welch

CEO, General Electric

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