Below are The driving forces that work together and create the conditions for shaPING the global mindset of a company.
Top management’s view of the world
- The distribution of power in the organization and senior management have an important influence on the corporate mindset.
- Corporate mindset is influenced by the type of organizational structure the company has chosen.
- This includes the company’s tangible and intangible inheritance and recognizes that the company has a history which constrains its ability to adapt. It may limit the company’s global strategic options.
- This includes the environmental forces pushing for a global approach such as economies of scale, global sourcing and lower transportation and communication cost. It also includes factors such as strong local competitors, cultural differences and trade barriers. (Paul, 2000)