"It is not how long you live that counts but what you do in your life that is important. You got to learn how to deal with the storms of life."

Rev. Richard Brown, Jr.

It is important to understand your global customer. Sadly, few universities discuss the concept of marketing and how it applies to leadership theory. However, the marketing concept is analogous to servant-leadership but with a capitalistic driver. Clearly, globalization is more about the interconnectedness of countries and societies. Some issues associated with entering foreign markets include: (a) cultural misunderstandings, (b) political uncertainty, (c) import restrictions, (d) exchange controls and owner restrictions, and economic conditions. Clearly, effective global leaders are highly skilled at identifying market opportunities and applying organizational resources to make the most of the opportunities.

Unfortunately, many Westerners feel they are fine if they can read a travel guide, learn a few key words in the host language, and stay out of trouble. However, if they choose to forgo understanding the organizational culture of other foreign institutions, they may be less successful. Marketing guru Regis McKenna argues that customerization is the key in today's marketplace because it provides the capacity for dealing with customers in a unique way. Therefore, companies in a highly competitive environment can have a better relationship with customers based on trust, responsiveness, and quality. The success of an organization in a foreign market depends on several factors, such as competition and market infrastructure. In addition, McKenna further argues that a company's credibility in a market depends on his relationship with his consumers. Some marketing experts argue that American managers must seek to learn, understand, and adapt to the cultural norms of the managers and their customers. Therefore, prevailing trends can greatly influence how a foreign organization will be perceived in that country.

References:

Hitt, W. (1996). A global ethic: The leadership challenge. Columbus, OH: Battelle.

McKenna, R. (1991). Relationship Marketing. New York: Addison-Wesley Publishing Company.

Peters, J. & Donnelly, J. (2003). A Preface to Marketing Management. New York: McGraw-Hill Irwin.

© 2008 by Daryl D. Green