Multinationals must learn local lessons: Policy of “one global strategy” is inadequate for emerging markets

Abstract

Purpose

The aim of this article is to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

Design/methodology/approach

The briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

A few years ago a television advertisement by one of the major British banks offered a slightly patronizing view of its work in developing countries. The theme was that an understanding of local customs and traditions was one of the most valuable inroads to offering a good service there. Despite the whiff of sanctimony, there is obviously some truth in this. Many mistakes must have been made – and doubtless continue to be made – by Western multinational companies whose prime motivation in trying to crack emerging markets was the growth potential, unsweetened by any consideration that they are dealing with an entirely different culture and economy.

Practical implications

The article provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Social implications

The article provides strategic insights and practical thinking that can have a broader social impact.

Originality/value

The article can save busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Citation

(2012), "Multinationals must learn local lessons: Policy of “one global strategy” is inadequate for emerging markets", Strategic Direction, Vol. 28 No. 10, pp. 27-30. https://doi.org/10.1108/02580541211268438