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Global & Transnational Management

Link:https://www.mckinsey.com/global-themes/urbanization/urban-world-the-shifting-global-business-landscape

The shifting global business landscape, Minimum of 1 reliable resource.

Steel and Taras (2010) challenge the view held by Hofstede and others that culture is the cause of variations in cultural values. These authors say that the opposite can also be true, that “culture is a consequence of certain individual and national- level factors.” They state that the cultural variations within and between countries “are determined by a set of individual and country level factors and are likely to change in response to a change in the culture- determining factors.”

Initial Post Instructions:

PLEASE ANSWER USNG THE LINK ABOVE PROVIDED...

Weigh in on this dispute, either defending or refuting the positions of Hofstede, the Globe Study, and/or Trompenaar, and, whichever position you select, using examples from cultural orientations given in the text or elsewhere, to support your position.

Using APA format, 400 WORD MINIMUM Please post MUST BE ORIGINIAL WORDS ONLY, no copy and paste

Explanation / Answer

The Steel and Taras (2010) , the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with facts and insights on which to base management and policy decisions.

The global business landscape in 2010

The rise of emerging economies has presented multinational corporations with unprecedented market opportunities and the ability to tap into an increasingly skilled labor force. But a related shift is just beginning to gather force, and it has the potential to redraw the world’s business map and rewrite the rule book on global corporate competition. Our analysis reveals that 53 percent are publicly traded, 37 percent are privately owned, and 10 percent are state-controlled.5 However, more than two-thirds of the true global giants—those whose revenue exceeds $50 billion—are publicly traded; only 11 percent are private, and 22 percent are state-controlled.

Limited reach and scale of the formal market economy.

Broad swaths of emerging economies remain beyond the reach of large companies. Subsistence agriculture, sparsely populated rural areas, and small-scale informal economic activity in cities are unlikely to generate revenue for large companies. There is a significant inverse correlation between the total revenue of large local companies and the share of that country or region that operates in the informal economy

Lower industry consolidation.

Mergers and acquisitions activity has consolidated companies in advanced economies to a greater extent than in emerging regions. For example, the top 30 players in the Chinese retail grocery market accounted for 15 percent of industry revenue in 2010, compared with 62 percent for the top 30 players in the United States

Less developed service sectors.

As a nation’s income rises, its industry mix evolves, typically shifting from agriculture to a higher proportion of industry in the middle-income stage. Services grow continuously as a share of GDP as nations move along the income and economic development curve, adding new dimensions to their economies

Limited foreign revenue.

Companies in emerging economies tend to have a lower share of foreign revenue than their counterparts in advanced economies. Looking exclusively at Fortune Global 500 companies, a pool more likely to have broader international reach, companies based in developed economies generate an average of 24 percent of total revenue outside their home region; for those based in emerging economies, the corresponding share is only 14 percent

Some regions have dominant business hubs, while others have a more dispersed company landscape:

Corporate leaders cannot afford to be complacent about a change of such magnitude and – according to this report - will have to meet three imperatives:

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