Johnson & Johnson’s choice of regional headquarters and innovation hub: Why Singapore?

• Main Authors: DE MEYER, Arnoud Cyriel Leo, BHATTACHARYA, Lipika
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: Regional Hub; Innovation; Ecosystem; Technology Hub; Multinational Strategy; Singapore Headquarters; Corporate Finance; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/359; https://smu.sharepoint.com/sites/admin/CMP/cases/SMU-20-BATCH%20%5BPDF-Pic%5D/SMU-20-0002%20%5BJohnson%20&%20Johnson%5D/SMU-20-0002%20%5BJohnson%20&%20Johnson%5D.pdf?CT=1600135103288&OR=ItemsView
• Institution: Singapore Management University

In November 2019, Tommy Leong, Zone President, East Asia & Japan (EAJ), of Schneider Electric, a French multinational corporation (MNC), hosted regional clients in the Singapore HQ building. He highlighted how the company would capitalise on digital transformation to help create a futuristic city. Despite the high operating costs, Singapore was an ideal location for a regional HQ because of its first-rate infrastructure, strategic location and business-friendly corporate ecosystem. Through the Economic Development Board, the government actively pitched to MNCs and provided concierge services when possible. Schneider Electric was the global leader in energy management and industrial automation with strong growth prospects due to increasing urbanisation and digitisation trends. Leong had identified ASEAN as the growth region for the company. How could he create customised solutions for the business requirements of clients? The case can be used in courses related to International Management to teach undergraduate, postgraduate and executive education students. After studying the case, they should be able to identify the key features to consider when setting up a regional HQ and selecting a location and understand the factors in building a business ecosystem to provide complex solutions to clients.