Global Strategy and Its Impact on Local Operations; Lessons from Gillette Singapore

819 Words Jun 25th, 2013 4 Pages
Global strategy and its impact on local operations Lessons from Gillette Singapore

* * * By Eric Aussmann & Amalia Insani
Universitas Gadjah Mada
International Human Resource Management
Lecturer: Dr. Budi Santoso

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Case Background

The case "Global strategy and its impact on local operations - Lessons from Gillette Singapore” underlines the difficulties of finding an adequate global strategy, which can tighten local integration in the interest of global goals.

Recently many myths and misunderstandings surround what is really meant by “global strategy”, which caused many companies to fail.

These myths are articulated in the case as follows:

Myth #1.
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Analysis of the case

Nevertheless, uncritical acceptance of these myths, as mentioned above, prevented Gillette and especially Parker Pen from taking full advantage of global opportunities.
These wrong implementations were adopted by Gillette by having poor communication links between country operations, while all the power and influence concentrated at the headquarters.

The company failed to include international outposts as the key resources, preventing itself from creating effective global strategies, for example Gillette/Oral – B Managers were forced to set and consistently meet aggressive growth numbers in all of their markets, which led to lose their morale because of the feelings of lost autonomy in the Asia-Pacific Region.

After the acquisition of Parker Pen Holdings Limited of the U.K. for 285 million British pounds Gillette established Campus operations in Singapore, besides the integration of Parker Pen.
This local integration of International Group operations was seen by the Gillette headquarters as a key success factor to their global corporate strategy.
However combining different division units under one roof meant bringing together people with different wage scales and benefits packages called for an uniform salary to satisfy campus employees.

In addition to this the acquisition of Parker Pen underlined that the sensitivity to local considerations improves the chances for global

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