Key Factors Contributing To The Development Of Managers Commerce Essay

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For the development of the current and future success of different firms internationally, the global mindset of the managers is very essential. Many companies are greatly successful in figuring out and developing the global opportunities, while many fail to do that. The term global mindset refers to the company's observation of the world and on how their actions are affected by it. The global mindset helps decide the degree of the management, encouraging and valuing the diverse culture, while maintaining a certain level of strategic solidity. The development of the global mindset is the key requirement in the successful competition and growth in the global market.

KEYWORDS: Global mindset, managers, global strategies, internalization


Different organizations and firms around the world, which compete across the national borders, realize the need of global mindset of the managers (Crowne, 2008; Earley & Peterson, 2004; Yan, Guorong, & Hall, 2002). Organizations need individuals who have the talent to attain different organizational success by skilfully working across various cultures. The means to obtain and further develop the global mindset has been often reviewed since this is an issue for the researchers and the executives (Ang & Inkpen, 2008; Earley & Peterson, 2004; Gupta & Govindarajan, 2002).

Taking the example of Limited Brands like Victoria's secret which is huge in the global fashion industry. It was founded in Columbus, Ohio in the year 1963 which has expanded itself into more than 3500 stores worldwide with 7 retail brands. There is a need of the ability to make sure of a constant appeal of their fashion apparels with the continuous change in the tastes of the female customers and also the agility to identify the different fashion trends with time. Their core agility lies in the interdependence of their systems. The need of strong interdependence systems with mutual understanding of prospects, capabilities and strategies are worked hard upon by the organization since their global market is huge with more than 300 suppliers in over 40 countries. The company spends a lot of time in the recruitment of suppliers from different countries and also to maintain a trust worthy relationship with them, which is not a simple and easy task, because of the diversified cultural, economical, legal, political and institutional factors and systems.

So the type of managers needed for a company like Limited Brands to nurture the complexity of the global interdependencies should have the capability to deal with the levels of uncertainty, with suitable understanding of all the diversified systems. The managers should not be paralyzed with the levels of diversification and the complexity of the global market. They are expected to build and maintain a trustworthy relationship with the organizations, groups and people around the world to help the company reach its global success target. All these features are very important in a company like Limited Brands and are called "Global mindset". As stated in the example, global mindset is very important and necessary for successful and profitable internalization ( Nummela, Saarenketo, & Puumalainen, 2004).


As global mindset is a key factor to perceive successful internalization of a company or organization, in the same way there are key factors that contribute in the development of managers' global mindset. For senior managers, it's a critical issue to create and support an environment to develop such global mindset (Begley and Boyd 2003; Govindarajan and Gupta 2001). There are various ranges of possibilities to develop a global mindset which includes employee selection, co-ordinating network, career path plan, international assignments, vision and processes and composition of top management.

Composition of top management: The global mindset has to start from the very top of the corporation. The diversity of different markets has to be reflected by the top management like BOD's etc. A multicultural board could be set up to provide the operational managers with a wider perspective and knowledge of the ongoing changes and trends in the environment. One of the best example is Adidas, which is a German based sportswear company where the top management consists of people from USA, France, Switzerland, Germany, Sweden and Australia. But Adidas is an exception, where as the other companies have a long way to go as to the reflect the diversified composition of the top management with their operations worldwide.

Coordination of network: Since the time of globalization which stresses greatly on collaboration at the expense of ethnocentrism, where the business if fully controlled by the manager, collaboration is meant not just within the company but also to the external partners like customers, suppliers etc. The development of networks will help the global managers to get access into the main resources globally. This will help replace the views that are on a national basis with a combined global mindset. Many global companies like Unilever, Nestle etc., have a similar global network where they are frequently trained in those different situations. The development of network can be done easily by communication and interaction through networking technologies. Lot of training, conferences, office parties etc., are arranged to develop networks in a better way. But even then, personal connections are always one of the best ways to interact and exchange ideas, which works on the company's advantage in a permanent basis.

Employee selection: The recruitment of employees from different cultural background supports and helps in the sustainable development of the global mindset. As seen above, having a diversified top management would help the organization recruit top capable managers from around the world. For example, managers from India or China will give the brush-off to the organizations that reserves positions for the whites. Many organizations look to recruit the locals and then train them intensively according to the requirement. For example, AT&T is a company which recruits foreign managers to US to for a 2 yrs training program, who after the training are expected to take on the local positions in the company.

Career path plan: Career path planning in a global organization mainly provides for frequent assignments, both local and global. When a candidate is given exposure and is given hands-on knowledge of the functioning in global groups and is given authority in the company, all this is provided in the successful track record in a specific practical area. The perfect pattern for a career path plan pattern is local, global, again local and global again in context with the assignments. For example, SmithKline Beecham follows a principal where the senior positioned mangers have to have a '2+2+2' experience i.e., 2 countries, 2 functions and 2 business. This helps in establishing networks with relationships and also widens their viewpoint with new perspective of things.

International assignments: In the beginning international assignments were mainly demand driven, but now it focuses more on the learning, understanding and benefiting from diversified cultures and the global experience with developing networks and relationships. Exposure to diversified environment, cultures, postings etc are very vital in the creation and development of the global mindset.

Vision and processes: Now the importance is less on the analyzed strategic plan and more on focussing and developing the corporate vision and processes. The management processes are used more for the development of the organization rather than the formal formation. The old fashioned hard management ways are not being replaced by the new approach; rather it supplements it with focussing more on the vision and the processes. For example: ABB and SAP use matrix organization . The approach of the traditional style startegic planning should be supplemented with combining the appraoches of top-down and bottom-up planning which includes markets, regional etc.


Global mindset has been mainly researched upon in the multinational companies and not the the smaller companies w.r.t. internalization effects for the small companies concentrating in the India, which is the theoritical gap here. Using a quantitative approach, the gap is researched upon as to how the factors which contribute in the development of managers' global mindset help and connect to the internalization effects for smaller companies in India.

In the model it is shown that all the key factors which contribute in the development of managers' global mindset, how all these factors i.e., global mindset in whole, contribute in the internalization of the smaller companies and also the importance of global mindset in managers in the small companies specifically in India.


The main objective of this journal is to state the key factors which contributes to the development of the managers' global mindset and also propose and state the theoritical gap, which is the internalization effects for the small companies in India.


Employee selection

Coordinating network

Career path plan



Vision and processes

Composition of top management

International assignment


The above stated factors, composition of top management, coordination of network, employee selection, career path plan, international assignment and vision and processes, are the 6 key factors which contribute to the development of managers' global mindset. All these play equal importance in developing one's global mindset.

Organizations are approaching the global market with a global mindset in precise ways. The managers should not only adjust to the work project but also to the behavioural and cultural aspects which will be beneficial in building networks which will eventually help the organization in both short term and long term business.

Organizations should bear in mind, that to develop global mindset, is a long -term process. Globalization process requires global structure and ideas, where the ideas have to implemented in the market , which makes global mindset very important for the expansion of the organization and all the above mentioned factors majorly contribute in the development of the managers' global mindset.