Case Study

Global growth at Irdeto (B): A dual HQ strategy

7 pages
April 2010
Reference: IMD-3-2090

In March 2007, Graham Kill held an all-staff meeting at the company’s headquarters (HQ) in The Netherlands – broadcast live to the regions via the internet – to announce the establishment of a second Irdeto HQ in Beijing, China. This new office would build on the company’s existing activities (Asia-Pacific HQ, China sales and support, global engineering, marketing and product management) and create a significant Irdeto presence in the country. This meant physically shifting members of the senior management team, including himself, to ensure that the strategic decision makers were now physically present in Beijing. The senior leadership team would be equally divided between the two locations, with two senior managers joining Graham in Beijing by June 2008. Graham’s announcement generated mixed reactions. The Naspers’ senior management fully embraced the move, which it believed would reinforce Irdeto’s strategy and growth prospects in Asia and support its aspirations in China. Most members of Irdeto’s leadership team were also optimistic. But employee opinion in The Netherlands was divided. Some people worried that key roles would be moved to Beijing, thus limiting the career prospects that had initially attracted them to Irdeto.

Learning Objective

Discuss different strategic approaches to globalization, how management innovators can differentiate a company in new and unique ways, and how to introduce fundamental changes in a company’s sturcture and mindset to ensure long term success in the global industry.

Keywords
Globalization, Change, Management Innovation
Settings
China
2006-2009
Type
Field Research
Copyright
© 2010
Available Languages
English
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