José Santos

José (Joe) Santos

Kuala Lumpur, 3 December 2015

Managing The Global Enterprise Organizational Integration

José Santos

“Locals” are Winning … in Emerging Markets

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

(Original Source: Euromonitor)

(Source:kpcb.com/internet-trends )

… in Internet Retailing

José Santos

Emergence vs. Development

José Santos

José Santos

José Santos

José Santos

1.  New, global markets for components and services created by multinationals focusing on higher return activities and outsourcing and offshoring “lower-value” activities – driving modular designs, standard components, and large scale contract manufacturing.

2.  Growing global markets for managerial talent and business services (design, engineering, consulting, auditing, financial and legal).

3.  Opportunities for cross-border mergers and acquisitions to capture assets, capabilities, and know-how that would take years to develop.

The Decline of Multinational Advantage

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Home-Team Advantages

1985-2005

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Home-Team Advantages

1.  Engaging deeply with distributors, customers, users

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Home-Team Advantages

1.  Engaging deeply with distributors, customers, users2.  Partnering and co-creating with local suppliers

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Home-Team Advantages

1.  Engaging deeply with distributors, customers, users2.  Partnering and co-creating with local suppliers3.  Fostering development of local talent

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Home-Team Advantages

1.  Engaging deeply with distributors, customers, users2.  Partnering and co-creating with local suppliers3.  Fostering development of local talent 4.  Shaping the regulatory and institutional environment

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Home-Team Advantages

1.  Engaging deeply with distributors, customers, users2.  Partnering and co-creating with local suppliers3.  Fostering development of local talent 4.  Shaping the regulatory and institutional environment5.  Participating in the broader development of society

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Local Integration vs. Local Adaptation

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

Achieving Local Integration

Careful Acquisitions Unconventional Entry

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

1.  Shifting managerial mindset at HQ and in local units: local integration cannot be piloted from the center as local adaptation might be.

2.  Upgrading the role and caliber of local leaders.

3.  Accepting duplication of certain assets/activities.

4.  Adjusting local acquisition criteria and processes.

5.  Moving early and boldly into nascent markets.

6.  Harnessing global learning and innovation opportunities spawned by local integration.

Implications of Local Integration for a MNC

(Source: Santos & Williamson, MIT SMR 2015)

José Santos

“Be Foreign”: Export cultural value

“Be Local”: Integrate Locally and Adapt Globally

The Choice of Multinational Mission in a Global World

(Source: Santos & Williamson, MIT SMR 2015)