Troubling perceptions of American brands abroad have painted us with a broad
stroke overseas, and the portrait at the moment is cause for some deep concern.
The current wave of anti-Americanism puts at risk the progress of globalization
- an economic movement that is very important to the future of most American
businesses.
We know that, increasingly, the line is blurred between globalization and Americanization.
For many people, the terms are synonymous. For some, globalization is an American-led
phenomenon designed to benefit the U.S.
Thomas Friedman, foreign affairs columnist for The New York Times,
recently made an interesting point in distinguishing between what people want
and do not want from Americans. For example, he said young people want American
education and technology more than ever, but fewer and fewer want to wear our
T-shirts anymore and be identified as pro-American.
I think it’s important to recognize that the roots of this growing anti-Americanism
do not rest solely with the military actions taken in Iraq. Many in the world
have been upset for quite some time over what they perceive as an invasion of
American culture and values.
For instance, trust levels among some of the world’s leading global brands
are significantly different among Europeans and Americans. Europeans place more
credibility with non-governmental organizations, and generally lean more toward
progressive social and environmental issues.
So, what can we do to protect and enhance our brands?
UPS has been operating internationally since 1976 when we first ventured into
Germany and Canada. Since then, we’ve expanded service to more than 200
countries and territories.
We’ve learned three valuable business lessons that have had a positive
impact on our brand internationally:
- Long-term commitments build brand equity and are rewarded;
- think locally but act globally - a bit of a twist on the traditional
thinking;
- and be an integrator, not an extractor.
Some of these lessons are the result of business strategy decisions and not
necessarily day-to-day brand-management initiatives.
Think Long-Term
Several big-picture trends promise to shape the world of business in the coming
years.
One is that the world's population is growing - and fast.
People are living longer due to improved health care. The world's population
is increasing by 60 million every year.
And many people - especially young people - are moving to urban
centers, particularly in developing regions of the world.
Jobs will shift to these areas where labor costs are lower. Technology makes
it possible to perform work from anywhere.
We've already seen how manufacturing operations have migrated to China.
We'll likely soon see a similar trend from Western to Eastern Europe.
These trends, we believe, can bode well for American businesses that take a
long-term view of the world.
Think Locally, But Act Globally
Despite what the anti-globalists try to protest, what we’re seeing among
our business customers in markets from Santiago to Shanghai is the need to be
connected to the global economy.
There’s no greater illustration of that today than China. Look at all
the businesses - from various countries - lining up at China’s
door to do business.
However, it would be foolhardy to assume that a global economy is going to
create a homogenous global culture and community. Being local matters more than
ever, too.
Everyone wins when you put international business operations into the hands
of the people who best know their local cultures.
They lend more credibility to the local customer base because they understand
the culture, language, legal system and business practices.
That means a company must be flexible when it comes to cultural traditions.
Brand and culture must be aligned.
Be an Integrator, Not An Extractor
In the extraction model, companies might enter a community, demand extravagant
incentives from local government, grab what resources they want and turn tail
if things go bad. It happens all too frequently.
Conversely, the integration approach is a two-way street. Integration means
companies AND communities align values and make meaningful contributions to
create sustainable enterprises and communities.
Perhaps the greatest asset a company can bring to a community is economic opportunity.
As brand managers and marketers we’re part of the corporate diplomatic
community. In the 21st century, corporate diplomacy is becoming as important
as political diplomacy.
Our actions and our beliefs are not only shaping the perceptions of our companies
abroad, but they are forming impressions about our nation and the ideals for
which it stands.
It’s a huge responsibility - one we must manage with care and diligence.
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