A question of balance

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Globalisation, internationalisation, localisation…

 

How many times have we used these terms, which, depending on the latest news may embody the best and the worst in the way the economy shapes our societies ?

For many years globalisation meant incredible growth rates in sales of products and services (and often soaring profits) as different economic areas (and the countries that made them up) adopted a clear division of tasks (which in the early days meant Asia and especially China manufacturing the high tech, sleek products designed in US and Europe).

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It also meant billions of humans emerging from poverty in the less developed regions of the world.

Then came the realisation that if you let your technical and manufacturing experience (and the millions of jobs attached) go, you won’t compensate them just with design and technology, as these activities will follow manufacturing and you will just exit industry sector after industry sector.

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So came the time in which globalisation became a risky concept to behold (or even mention) both in the US and Europe, especially so after the outbreak of the Covid-19 pandemic.

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You may ask why a business strategy specialist should engage in this type of macroeconomic consideration ?

I personally find many analogies with the choice of a successful strategy :

 

An internationalisation strategy (or any other strategy aimed at enlarging your business outside your comfortable playground) will probably at first swing wildly between two opposite poles: total control of technology, manufacturing, sales and marketing / or: agreements with a strong local partner who can guarantee development targets in the market,   however at the cost of autonomy and a hefty portion of profitability.

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A successful strategy (as the successful development of global economy) is a question of balance:

The foremost aim at Competitive Energy is to make available to your business the fine art of striking the best balance when it comes to strategic decision taking.

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As you well know, the right decisions power your return on investment and your balance sheet’s bottom line.

 

Orlando Ferrario

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