Global Acumen literally means competence in worldly affairs, while in its popular business context, it is a trending term that refers to the intuitive understanding of how a business operates on an international level. It includes comprehension of global markets and what differences drive the company’s profitability within each of these markets.
How Global Acumen differs from Business Acumen
Business Acumen, which is a more common concept than Global Acumen, is the ability to demonstrate an understanding of how a business operates and how it makes money within their specific industry. Global Acumen is essentially an extension of this principle in that it covers all the different international markets the company operates in, as opposed to just a single domestic market.
Examples of Global Acumen
- Understanding of how geopolitical news events can affect a company’s profitability and working methods within several countries.
- Comprehension of how currency fluctuation affects purchases and sales across company portfolio.
- Knowing how business decisions will affect supplier and customer relations in all served markets.
- Recognition of how language barriers can be overcome when planning long-term development as well as in day-to-day operations.
- Understanding of how legal jurisdictions can vary between different countries and therefore how the business can comply with differences in regulations.
- Knowing how working cultures can differ between nations so that you can maintain appropriate conduct when practicing abroad.
- Ensuring thorough localisation of products and services to drive sales within specific regions.
Companies looking for Global Acumen
Any company which operates across several international markets will be looking to recruit applicants who can demonstrate a solid grasp of Global Acumen.
The most prominent example of a company which advocates for Global Acumen is the multinational professional services network PricewaterhouseCoopers (PwC). They see Global Acumen as a core part of their framework, which includes leadership qualities and technical understanding.