When the article, on p. 117, showed a graph of the impact of 10 trends on business, answered by executives, I was surprised by the answer! It looked to me like all of the executives think that all of the trends are applicable on a global scale, but not to themselves. But that's not possible, because if this sample is representative, they're ignoring the fact that they are each actually competing with each other more than they think. It's almost like they are unaware, or don't want to think about the future business trends in the global economy. I wonder what that'll mean for future strategy development. Does that mean that executives aren't paying attention to the trends? Will they we blindsided? Seems to me like management needs to realize what all of the readings said this week about the growing importance of globalization, communication, and international strategy plans for future growth.
The other article that also hit me was the next article, "What happens next? Five crucibles of innovation that will shape the coming decade," by Peter Bisson, et. al., also another McKinsey article. I know most of the big ticket items: China and India on the rise in the global business world, the emergence of technology, the increasing awareness of environmental stability, but what I didn't think about was the interconnectedness of it all. That's where I think the biggest issue of strategy lies--how do companies try to grow with a world that's so connected that even a small slip might cause global panic? This article gives examples, and I must confess that it worries me. Do we have the necessary and adequate protections for our businesses globally? When I say our, I mean all businesses. I am concerned that there is a lack in strategy development today on planning for global catastrophes. The financial meltdown is just an example.
For example, Crucible #2, on p. 133 discusses the huge age disparity between developed nations and emerging nations. In addition, this section also delves into the issue of knowledge workers and what that means for the future of global business. "Companies across the globe consistently cite talent as their top constraint to growth," (133). How then can we unite these two trends?
I remember an article I read awhile ago in the NY Times about a lack of colleges in India for the growing number of college degree-seeking students (see citation below). The article lamented a lack of room in Indian colleges, and that many students were going abroad. But I don't think that's a bad thing--I think that is what will help us unite these two issues in the long run. It's a great read into possibilities for companies looking for new talent, international talent, that can help them enter a global business world more easily.
As the world becomes a smaller and smaller place thanks to globalization, are companies planning for future problems? Are companies aware of the issues of this interconnectedness? I don't think they are, and it's something that I think is paramount to the future success of any business in a globalized world.
Najar, Nida. "Squeezed Out in India, Students Turn to U.S." Nytimes.com. 13 Oct. 2011. Web. 4 Apr. 2012.