Chasing a moving target
Value creation is a global enterprise. If "low cost" were still the only factor driving the process, then Burkina Faso and Burundi would rank high on the list of most attractive places to do business. Neither country is known for its exports or for attracting direct investment. The interdependence of factors influencing business success today makes many managers uncomfortable. Globalization is driven by highly differentiated factors, adding to the existing complexities of doing business around the world. Managers are thus wondering what will drive value creation tomorrow and in the future.
Can the internationalization of value creation:
- Make a valuable contribution to the core business?
- Mitigate and spread out current financial, currency and product risks?
- Achieve sustainable tax advantages over the long term?
- Produce sustainable capital and labor cost advantages?
- Help the company tap into current and future innovation and knowledge potential?
To be effective, managers must create a roadmap that integrates global value creation and sustainability programs into the overall business strategy. They can thus direct their capital and talent toward the most profitable and sustainable growth opportunities.