Shepperd Report February, 2000

Back Live!

After months of contemplation, the SHEPPERD REPORT returns to the Quadral website as an ongoing-updated report on global strategy, planning and implementation. If you want the report emailed to you, you are welcome to submit your email address and request a no-charge subscription. Portions of the Quadral website are downloaded by tens of thousands of individuals from over 140 countries each year. The SHEPPERD REPORT will continue to provide news, perspective and trends in the "New Global Era."

State of the Global Union

Globalization is now accepted as the mainstream business strategy. In fact, in the State of the Union Message, the President of the United States provided a unique perspective.

"Globalization: It is the central reality of our time. Change this profound is both liberating and threatening. But there is no turning back. And our open, creative society stands to benefit more than any other-if we understand, and act on, the new realities of interdependence. We must be at the center of every vital global network, as a good neighbor and partner. We cannot build our future without helping others to build theirs."

Regardless of one's nationality and politics, there is no longer any doubt that global strategy is here to stay.

Quadral began development of this strategy in the early 90's with automotive and electronics clients. As we pushed the envelope with the development of global business strategy, as a result, we continue to be in a lead position in continued development of global trends. We also know what it takes to be a global business manager. Whether President, or parts manager, Quadral's website will continue to provide the latest in strategy, planning, implementation, tips and accoutrements for those actively in the global game.

Quadral Global Website Expands

Have toured our site recently? We are adding many new areas of interest and expanding hot sections of the site. This includes executive searches under Career Opportunities and potential deals in the Global Marketplace section. We have already started with a global bookshelf with interesting, familiar and not so familiar books available for purchase. More changes are on the way to meet your increased interest in our site.

From Seattle to Davos Global Goofs?

McDonald's is sure having a tough time dealing with the "New Global Era." They and similar companies are bearing the brunt of protests of every make and description. Funny thing, Governments are trying like crazy to get a handle on globalization. The more they try, the more difficulty they have. Governments, protesters, and even business leaders often have the mistaken notion that globalization is about big companies and big buisness and needs big government. It is absolutely the opposite. Globalization has to do with individual freedom and responsibility. It is about being in front of your customer. It is as decentralized a force as one could imagine. However, you put enough water drops together and they have an effect.

Looking at the field and dividing between those who are for individual responsibility and others, described best as collectivists may provide a better understanding of the players and their positions. Labels like liberal and conservative do not apply when looking at the global picture. Seattle is clearly read as an absolute organizational failure. The WTO is regrouping and will try for another round of talks in the next year. Davos shows that the pressure will continue from those who don't understand the new global era.

In a recent issue of the INTERNATIONAL HERALD TRIBUNE, the cartoon shows a hot air balloon with two people in the basket. One is threatening the other, demanding the pilot to turn the balloon around. The balloon is globalization and the cartoon points out that the protesters just have not yet understood what they are protesting against.

Globalization Yields Positive Results

A recent article of ECONOMIST @ reports very positive OECD findings on the developing affects of globalization. Without going into specifics, Global Companies are growing faster, employing more people, paying higher wages, providing better benefits, investing more in research and development and having the greatest positive impact on growth in developing countries. In the US, foreign owned companies make up 15.8% of the manufacturing output (doubled over the past 10 years) and 12% of the research and development. In the UK, foreign companies account for over 40% of those expenditures.

Complain all one wants, globalization has a positive impact, wherever it goes. It's easy to cite Globalization when a plant closes, or people are laid off. In fact, it may more likely be poor management, low quality, bad executive decisions, or poor labor and governmental relations. I have had clients with product made in Mexico wondering how the Germans could build the product for less. Globalization works in interesting ways and the low ball quote, low wage area, or cheap product is not always the winner.

Trends Ahead

Much is talked about E Commerce and "B to B" (Business to Business). America has caught on in a major way. Europe and other parts of the world are slowly adapting to this new reality. In fact, this new wave in technology is rapidly enabling global strategies. In fact, they are using global strategies in their E commerce plans. It has been several years in the making, but technology is slowly adapting to the New Global Era. Yes, the strategy came first, then the technology. I have been waiting for since we first established our website, 4 years ago, to find truly global computer and software systems and specific software for global applications. Also electronics and communication support is on the way to global support. I will point out these trends in future issues of the Shepperd Report under a new Technology section.

Global Fitness

One of the essential elements of a global manager is their personal health and fitness. You have to get on the plane, fly 8 hours, rent a car, drive 2 hours, have a 3 hour meeting, get to the hotel and crash. The physical, and emotional toll on one's self is enormous. The Shepperd Report will also soon include new trends for Executive health, travel health and ways to keep in shape around the world.

News To Use

Get ready for the Global Undertoe. The wave of globalization that sent many companies scrambling to other parts of the world has started to recede and many European and Asian companies are coming with their own global wave. Daimler-Chrysler may have been the first sign, but many mid-sized and publicly held companies are planning their attack on the home market of American exporters.

The weak Euro has increased prices for American products and many American manufacturers have yet to realize the price increase that has been forced on their customers.

This issue of the SHEPPERD REPORT has been filled with news related to development of our e-publishing and website activity. The next issue will be back to our traditional editorial policy. If you have a comment, or critique, your are always welcome to email us. The SHEPPERD REPORT is also a form of dialog with other global professionals throughout the world. Keep in touch, keep informed.