Economic Globalization is viewed by some as the best hope for world stability, by others as the greatest threat. But almost everyone accepts that businesses of all types must embrace it. Even smaller enterprises urged on by the financial market, by investment bankers and consultants, by the media and by the moves they see rivals making feel the strategic imperative to go global in one form or another.
Although the current financial crisis is putting a damper on such activity, the pressure on companies to globalize is likely to persist.
With this sense of inevitability, it’s easy to forget the serious mistakes some companies have made because of their global strategies. Dutch financial services firm ABN Amro, for example acquired banks in numerous countries but was not able to achieve the integration needed to generate value with its international network. AES, a U.S. based energy firm that operates 124 generation plants in 29 countires on five continents has in recent years struggled to show that it.
