Korean companies need to globalize their decision-making structure to keep up with the competition. This was the recommendation by Carl W. Stern, Boston Consulting Group's co-chairman, during a recent interview with the JoongAng Ilbo.
Mr. Stern, who has worked at Boston Consulting Group for more than 30 years, was the company's chief executive officer from 1997 to 2003.
During a visit to Seoul , Stern told the JoongAng Ilbo that Korean companies still practice a Korean-centered governance structure, in which Korean companies believe that Koreans should head foreign companies' branches in Korea, as well as Korean companies' overseas operations.
Supposing North America, Europe and Asia each make up one-third of a company's sales, he said, the ideal corporate governance structure would have the same proportion of nationalities in executive positions.
As for marketing strategies, they need to be tailored to each country if a company wants to keep growing, he said. He criticized Japanese companies for failing to globalize their corporate governance structure, which eventually hindered Japanese companies' growth.
Noting that Koreans are more open than Japanese, he said he believes Korean companies will be more successful in adopting a global governance structure.
He added that in increasing companies' global competitiveness, the Korean government should try not to intervene in corporation's activities and instead minimize regulations.
Mr. Stern also expressed confidence in the Korean economy's prospects, citing strong product lines for Hyundai Motor and Samsung.
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