6-1Irwin/McGraw-Hill [Modified by EvS]

Additional Internet Sites:

http://embassy.org http://www.census.gov/foreign-trade/reference/codes/

index.html http://www.trade.gov/td/tic/tariff/country_sites.htm http://www.commercenetindia.com/ http://faccparisfrance.com/them/5leg.htm http://www.iworldtradelink.com/internationaltradesites.html http://www.wcoomd.org/ie/En/CustomsWebSites/

customswebsites.html http://www.buyusa.gov/home/ http://www.trade.gov/td/tic/tariff/country_sites.htm

6-2Irwin/McGraw-Hill [Modified by EvS]

HON Industries InformationOffice Chairs (import)

9401.30.8030– Swivel seats with variable height

adjustment, made with metal frames

6-3Irwin/McGraw-Hill [Modified by EvS]

6-4Irwin/McGraw-Hill [Modified by EvS]

HON Industries InformationOffice Chairs (import)

9401.30.8030– Swivel seats with variable height

adjustment, made with metal frames

Chair Swivel Bases (Import) 9401.90.5080– Parts of seats made with metal

6-5Irwin/McGraw-Hill [Modified by EvS]

6-6Irwin/McGraw-Hill [Modified by EvS]

HON Industries Information Office Chairs (import) 9401.30.8030

– Swivel seats with variable height adjustment, made with metal frames

Chair Swivel Bases (Import) 9401.90.5080– Parts of seats made with metal

File Cabinets (Export or Import) 9403.10.0020

Service – Call Center:– If completed part is imported, value must be

added. (dutiable at the same HTS). If not, no HTS code / no duty.

6-7Irwin/McGraw-Hill [Modified by EvS]

Mgt 470-4-8Irwin/McGraw-Hill [Modified by EvS]

MANAGING ACROSS CULTURES

Mgt 470CHAPTER 6

6-9Irwin/McGraw-Hill [Modified by EvS]

Additional Internet Sites:

http://www.trade.gov/td/tic/tariff/country_sites.htm– Identifies most tariff by country / region

http://www.infoprod.co.il/country/saudia2f.htm– Information on Middle East

http://www.intracen.org/index.htm– International Trade Center (with Country Information)

6-10Irwin/McGraw-Hill [Modified by EvS]

Footwear International Case

1. Which cultural dimensions (of those that we’ve touched on or read about in class) are relevant in considering the product of shoes in the market of Bangladesh? Why?

2. What was the first indication of a possible problem?

3. Who is responsible? Why?4. What should John Carlson have done, when,

and why?5. What is the common thread between the

IKEA, Disney and Footwear case studies (cite specific examples to support at least three commonalities)

6-11Irwin/McGraw-Hill [Modified by EvS]

Fundamental factors in designing Organizations

‚Underlying valuesObjectives‚StructureNumber of jobsMethods of communicationRelationships‚Planning and control(s)Planning, measurement, evaluation schemes‚Compensation / reward systemPay philosophy, promotions, raises, bonuses, etc.‚Workforce selectionCriteria for selection at different levels‚Training, technological adaptation‚Utilization of external “expertise”

6-12Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

3 Central Management issues when considering going global:– Organizational Structure

Authority / AutonomyReporting relationships

– Planning, Measurement, Control schemes

– Standardization / Adaptation

6-13Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Globalization - the production and distribution of products and services of a homogeneous type and quality on a worldwide basis

National responsiveness- the need to understand the different consumer tastes in segmented regional markets

6-14Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Globalization - National responsiveness

–Why is this an issue?

6-15Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Cultural differences making a difference

6-16Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Cultural differences making a difference– 6 Basic cultural variations

People’s NatureRelationship to natureRelationship to other peopleModality of human activityTemporal focus on human activityConception of space

6-17Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Cultural differences making a difference– How they view time– The collectivist / individualistic dimension– Power Distance (also shows in language)– Attitude towards affection– Nature of business conversations– Negotiating styles– Protocol for meetings (whether business

or personal)– Eating behaviors– Dress / appearance

6-18Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Why are MNCs committed to a “globalization imperative?”

6-19Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Why develop unique strategies?

6-20Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Why develop unique strategies?– Diversity of worldwide standards – Cell phones, Televisions, Household appliances– Continued demand by customers for

differentiated products– Importance of being perceived to be an

"insider”US Toyota

– Difficulty of managing global operations – Issues of decentralization– Allow subsidiaries to use talants & abilities– Prevent "headquarters" from being a constraint

6-21Irwin/McGraw-Hill [Modified by EvS]

Globalization Vs. National Responsiveness Matrix

National Responsiveness

High Low

High globalization Mixed

Low Mixed National

Responsiveness

Globalization

6-22Irwin/McGraw-Hill [Modified by EvS]

Strategies for Managing Across Cultures

Globalization paradox– Impossibility of conducting business

“one-way”– “Secret Hope”

Transportability of successful strategies & procedures

There are more cultural differences than similarities

6-23Irwin/McGraw-Hill [Modified by EvS]

Barriers to Effective Cross-Cultural Management

Parochialism- the tendency to view the world through one’s eyes and perspectives

Simplification- the process of exhibiting the same orientation toward different cultural

groups

6-24Irwin/McGraw-Hill [Modified by EvS]

High Vs. Low Context Cultures

High Context long lasting

relationships implicit communication loyalty to people of

authority spoken agreements outsiders do not gain

entry easily

– JAPAN

Low Context relationships are short

in duration explicit communication authority is diffused written agreements ousiders are

encouraged to join inner circle

– U.S.

6-25Irwin/McGraw-Hill [Modified by EvS]

General Similarities Across Cultures

Managerial behaviors in Russia– communication– HRM– traditional management– networking

Application of O.B. Mod. in Russia Organizational commitment in

Korea

6-26Irwin/McGraw-Hill [Modified by EvS]

General Differences Across Cultures

HRM activities– labor laws– wages– vacation time– maternity leave– compensation– group Vs. individual incentives

6-27Irwin/McGraw-Hill [Modified by EvS]

Doing Business in China Emphasis on trust and

mutual connections Meetings start with small

talk Host indicates when

meetings begin and end Slow in forming a an action

plan, but stick with decisions once made

Reciprocity is important Negotiations are often

carried out through intermediaries to reduce the risk of losing face

6-28Irwin/McGraw-Hill [Modified by EvS]

Doing Business in India Punctuality is important No personal questions Titles are important No public displays of

affection Beckoning done with the

palm turned down When eating or accepting

things, use the right hand- the left is considered unclean

The namaste gesture can be used to greet people

Bargaining for goods and services is common

6-29Irwin/McGraw-Hill [Modified by EvS]

Doing Business in Russia Build personal relationships

with partners Use local consultants Consider business ethics Be patient Stress exclusivity Face to face

communication is expected Keep financial information

personal Research the company Stress mutual gain Clarify terminology

6-30Irwin/McGraw-Hill [Modified by EvS]

Doing Business in France Use a quick hand shake with some pressure in the

grip Punctuality is extremely important During a meal, small talk is acceptable, but

personal questions and the subject of money are never brought up

Great importance is placed on neatness and taste

France

6-31Irwin/McGraw-Hill [Modified by EvS]

Doing Business in Arab Countries

{Http://arab.net/} Never display feelings of superiority

Do not take credit for joint efforts

Efforts to sidestep red tape can be regarded as disrespect for legal and government institutions

Connections are extremely important

Patience is critical to business transactions

6-32Irwin/McGraw-Hill [Modified by EvS]

HON IndustriesWhat is at least ONE reason

that HON is / or may be interested in conducting business in {your researched country}

6-33Irwin/McGraw-Hill [Modified by EvS]

HON IndustriesWhat is at least ONE reason that

HON is / or may be interested in conducting business in {your researched country}– Cost of Materials?– Quality of Materials?– Cost of Labor?– Quality of Labor?– Access to Natural Resources– Access to other resources?– Access to an available market?