ABSTRACT
In this chapter the authors explore both dimensions of savvy and discuss their impact on effective global leadership. Global business savvy is essential for the simple reason that for-profit companies are ostensibly set up to provide economic returns for their shareholders. A leader with global business savvy takes a global perspective of business opportunities for value creation. While global business savvy starts with thinking globally, it includes much more. Global leaders who scour the world for the cheapest and highest quality inputs of production give their companies an enormous advantage in the marketplace. Not only must global leaders be practiced at recognizing cost, quality, and pricing differences, but they must also be skilled at identifying entirely new markets for their company’s goods and services. Based on purchasing power parity and growth trajectories, global leaders understand that their companies’ market opportunities are rapidly globalizing. Global leaders understand that globalization provides opportunities to maximize value through increased operating efficiencies.
