Hmmm, here's something apropos to the previous post. I like harmonics.

From Spring 2004 Strategy & Business (You need to register but it's free.)

The Post-9/11 Resilience of American Brands

American foreign policy initiatives have generated rising anti-U.S. sentiment in many corners of the globe. American multinational corporations (MNCs) have grown increasingly concerned that such perceptions might influence how foreign customers value their brands. They are particularly worried about their businesses in Islamic countries, where anti-American feelings are fierce.

Our research suggests, however, that American MNCs should not overreact. Strong public opposition to American foreign policy doesn’t necessarily affect consumer choice. American companies should carefully weigh the costs and benefits of abdicating the “American-ness” of their brands. They should be honest and open about their heritage, and they should not overdo introductions of locally adapted products. That tactic could appear more patronizing than culturally sensitive....

In addition, we looked generally at whether antiglobalization sentiments affected global brand preferences. Does an antiglobalization segment exist, and is it particularly strong in Islamic countries? We did find a significant antiglobal segment, about 13 percent of our sample. But, remarkably, this segment was not the largest in the three Islamic countries; in fact, the strongest responses came from China and the United Kingdom.

These findings suggest that American multinationals have exaggerated beliefs about how anti-American sentiment is affecting consumer choice, and, therefore, that the current retrenchment is unwise.

An American global brand — whether it is Coke, Pepsi, Nike, Motorola, Ford, or Kraft — is understood foremost as global, not American. Even brands that use American values as part of their symbolism don’t seem to positively or negatively sway consumers’ opinions of the brand.

We also found that Islamic consumers were even more favorably disposed toward the positive characteristics of global brands — their reputation for quality and status value in particular — than were consumers in non-Islamic countries.

Given our findings, we were not surprised to learn that Coke and Pepsi turned in their most successful year ever in the Arab countries in 2003. American multinationals should wear their global success proudly, rather than try to hide it....

This is the right approach. American companies should have the confidence to treat Islamic countries as they do all the foreign markets in which they operate. Indeed, they would do well to follow the same “glocal” strategies (global reach, local implementation) that have served them well in other parts of the world.

To pursue these courses of action in the Islamic world, however, MNCs must develop more senior executives who understand the cultures and know how to do business there. Similarly, the drive for diversity in the multinational company boardroom should be global, not just national, in its perspective. Today, how many Fortune 500 companies’ boards of directors include a Muslim? How many of their top executives are Muslim? All too few.

There is so much latent power in the American Dream that even our sometimes bull-in-a-chinashop nature can't dull it. It seems hackneyed to say you can catch more flies with honey than vinegar, but it's true. Also true: honey's got higher margins.