The book New Realities: Business Dynamics at the Frontiers of Globalization presents a series of assessments of where the global economy may be headed.
It builds upon business cases from companies in:
- Brazil (operating in agribusiness);
- China (GVCs);
- India (education);
- South Africa (sustainable energy);
- Madagascar (textiles and clothing).
The impact of geopolitics, diplomacy, and economic growth in terms of global governance, as well as the role of the BRICS in the world economy, is also addressed.
Here’s what we predicted for 2024… how did we do?
Did our predictions for 2024 come true, a turbulent election year, bitcoin and CBDC, COP29 and electric cars, China, EU integration and Euro football
By
Robert Hooijberg, Arturo Bris, David Bach, José Parra Moyano, Michael R. Wade, Julia Binder, Howard H. Yu, Simon J. Evenett, Alyson Meister, Salvatore Cantale and
Stefan Michel
Economic dynamics in Asia: Japan’s revival, China’s challenges, and India’s emergence
Asia's economic landscape 2024 and 2025. Three distinct approaches: Japan's technology-driven revival amid demographic challenges, China's deflation and growth concerns, and India's manufacturing ambitions through foreign investment and strategic ...
By
Nico Luchsinger
Here’s what we predicted for 2024… how did we do?
Summary
Did our predictions for 2024 come true, a turbulent election year, bitcoin and CBDC, COP29 and electric cars, China, EU integration and Euro football
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Economic dynamics in Asia: Japan’s revival, China’s challenges, and India’s emergence
Summary
Asia's economic landscape 2024 and 2025. Three distinct approaches: Japan's technology-driven revival amid demographic challenges, China's deflation and growth concerns, and India's manufacturing ambitions through foreign investment and strategic ...
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Research Information & Knowledge Hub for additional information on IMD publications
The geopolitical context
Summary
Companies don’t operate in a vacuum. Corporate leaders have to navigate political dynamics, and in Chapter 12 we discuss nonmarket strategies. But there’s a global dimension to sustainability that’s worth a separate discussion. Will rising geopoli...
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Defining sustainability
Summary
In today’s complex and fast-paced business environment,
sustainability has evolved from a buzzword into an essential
element of long-term success. Yet the concept is often misunderstood or oversimplified. Some critics question the
necessity ...
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Access to the Chinese market: An obsolescing bargain?
Summary
With stagnant import volumes since 2021, and import prices at levels below those suggested by fundamentals, foreign exporters face an uphill battle to convert access to the Chinese market into revenues. Notably, the volume stagnation predates the ...
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AI means that services will be the future of trade
Summary
World exports of goods and services enjoyed boomtime growth in the 1990s and early 2000s. Since 2008, trade in goods – specifically manufactured goods – have plateaued; services exports have not. Services trade continues to ride the go-go growth p...
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Leading cross-cultural teams
Summary
This note explores the critical skill of leading across cultures in global and diverse business environments. It addresses the challenges and opportunities presented by cross-cultural teams, providing leaders with strategies to navigate cultural differences and leverage diversity for enhanced performance and innovation.
The note begins by outlining potential pitfalls in cross-cultural leadership, such as miscommunication, cultural stereotyping and varying expectations around decision-making and work styles. It then highlights the value creation opportunities, including diverse perspectives, enhanced creativity and increased organizational adaptability. A significant portion of the note is dedicated to understanding key areas of cultural difference, including communication styles, decision-making processes, attitudes toward time, relationship expectations, power dynamics and tolerance for ambiguity. It provides a comparative analysis of these dimensions across different national cultures. The note offers ten comprehensive strategies for effective cross-cultural leadership, ranging from cultivating cultural intelligence to managing virtual cross-cultural teams. It emphasizes the importance of developing cultural intelligence (CQ) and provides guidance on how leaders can enhance their CQ and foster it within their teams.
Practical tools, such as a cross-cultural leadership preparation checklist, are included to help leaders apply the concepts in their work. The note concludes with a list of references for further reading on the subject.
Reference
IMD-7-2621
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Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons
Summary
This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.
Reference
IMD-7-2618
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©2024
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IMD Copyright
Organization
Daikin Industries
Industry
Consumer Goods, Home Appliances
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons
Summary
This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.
Reference
IMD-7-2619
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©2024
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IMD Copyright
Organization
Daikin Industries
Industry
Consumer Goods, Home Appliances
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Overcoming adversity through innovation – Daikin at 100 (C): China market lessons
Summary
Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domestic brands like Gree and Midea. Despite the initial challenges of breaking through in a fragmented and competitive landscape, Daikin’s innovative inverter technology became a distinguishing feature of its product offerings. The watershed moment in Daikin’s trajectory occurred in 2008 when it formed a strategic partnership with Gree, China’s largest air conditioner manufacturer. This collaboration enabled Daikin to tap into Gree’s expansive distribution network and manufacturing expertise, significantly enhancing its own market reach. The partnership proved mutually beneficial; Gree capitalized on Daikin’s advanced inverter technology while Daikin secured a foothold in a market driven by increasing consumer demand for energy-efficient solutions. By 2012, inverter air conditioners claimed over 60% of the Chinese market share, a figure that surged to over 90% by 2024, illustrating the success of their joint efforts. Furthermore, Daikin’s commitment to sustainability was manifested in its pioneering use of HFC-32 refrigerant, known for its low global warming potential. By openly licensing HFC-32 patents globally, Daikin not only positioned itself as an environmental leader but also fostered industry-wide innovation. This case highlights the critical importance of strategic partnerships and innovation in overcoming competitive challenges and underscores Daikin’s role as a transformative force in the global air conditioning market.
Reference
IMD-7-2620
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Daikin Industries
Industry
Consumer Goods, Home Appliances
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications