Building A Global Knowledge Machine

Market success is only part of globalization. We must globalize every activity in the company. We've made some progress in sourcing products and components so critical to survive and win in a price-competitive deflationary world, but our challenge is to go beyond that—to capitalize on the vast intellectual capital available around the globe.

—John F. Welch Jr., CEO (1981–2001),General Electric Company1

Whenever a company extends its presence across borders, it is confronted with diversity. Diversity, however, represents not just a challenge with which the firm must cope but also a critical resource that the firm can use to create value for customers as well as shareholders. The process of adapting products ...

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