America As a Business Civilization, Session I, Fall

2003

David B. Rockland

America As a Business Civilization, Session I, Fall

2003

David B. Rockland

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About Your Professor

SVP, Global Director of Research at Ketchum Communications

Two Positions with Major Corporations Management Background Contact me by phone or e-mail

Session II

Marian Stern

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How to Get an “A”

Team Assignment (50%)– Team presentation on last night

– Teams of five

– Analyze a recent or current event

Final Exam (50%)– Three questions

– Prepare in advance

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Team Assignment

Select a recent or current event – Enron, WorldCom, Tyco, dotbombs, 9/11, jailing CEOs

How is this event likely to change the course of American business and its role in society? Answer can be yes/no/maybe

Is there something uniquely American about the event? What is it?

15-minute presentation, one-page handout Select teams

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Guidelines

Each Team Member Has a Role Have a Team Leader Use Any AV Approach that works for you One-page handout – should include:

– Team members– Key question(s)– What you propose

Three Steps:– What you are going to say– Say it– What you just said

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Format of Each Evening

6:10 – 7:30: lecture 7:30 – 8:00: break/teamwork 8:00 – 9:00: lecture/discussion

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Required Reading

Good to Great, Jim Collins Tipping Point, Malcolm Gladwell Various Articles in Compilation Sunday NY Times Business Section

(optional)

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Collins – Good to Great

Good is the Enemy of the Great Great Companies “Stick to their Knitting” Defines Greatness by Stock Returns

Only

“If We Have Cracked the Code of What Makes Something Great, It Should Apply to Any Organization”

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Gladwell – The Tipping Point

Law of the Few The Stickiness Factor The Power of Context

Put the Three Together and You Get an Epidemic

Is There Something Unique or Distinct About American

Business?

That’s What We Are Here to Figure Out

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Magma Versus BHP Copper

December 1995, BHP – Australia’s Largest Company – acquires Magma Copper, a small U.S. copper mining company

Reason for the acquisition – new management style to replace stodgy Australian team, smelter, U.S. presence

Executive Team 50/50 split U.S. vs. Australia – cowboys vs. lifers, stock options vs. job for life

Within three years all but one property shutdown (Peru), 5,000 un-employed, $3.2 billion write-off

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L’Affaire Messier

Vivendi – a French company who hires Jean-Marie Messier as the CEO to create a global media powerhouse

Messier fired after two years when wireless business stalled, was doing better than many others

He showed great disdain for all things French, and applauded things American

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The New Yorker, July 15, 2002

“We tend to believe that the world is ruled these days by corporations that float above all ethnic and national ties…but corporations are still national in character. In every regard, from management style and compensation to corporate strategy, they’re as characteristic of their home countries as meat cuts and movies.”

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Doers Vs. Stewers: Wall St. Journal, 8/8/02

Survey of 15,000 French Executives – 16% say profit should be the only goal

35 vs. 40 hour work week 8:00 – 6:00 versus the three hour lunch and nap Celebrity CEOs versus faceless teams Change vs. constant Risk vs. reward The role of the oil shock of the 70’s

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F.J. Turner Frontier Theory

1893 address to American Historical Association—the westward expansion had ended but would forever define the country

Frontier of westward expansion had helped define “identifying” not “unique” characteristics of the American people

Courseness/strength; grasp of the material; powerful vs. artistry; freedom

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Characteristics That Result from Turner Frontier Theory

Individualism Innovation Self-reliance Trust National pride Faith in technology Localization Optimism

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Reputation Attributes

– Customer service Committed to providing customers with the best customer service

– Financial strength Financial strong in terms of sales, profits, or stock price

– A good place to work Committed to the satisfaction of its employees

– Quality products and services Offers quality products and services

– Corporate social responsibility Operates in a way that contributes to the communities in which it does business

– Environmental responsibility Operates in a way that is safe for the environment

– Trustworthy Is believable or credible; tells the truth

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Reputation Attributes (cont.’d)

– Innovative Develops new ideas for products, services, or ways of doing business

– Philanthropic/charitable Gives time and/or money to charities

– Global Recognized around the world as a leader in its industry

– Customer centric Is focused on its customers– Employees Recruits and retains high performing

employees– Productivity Operates in a way that makes the

best use of all its employees and available resources

– Diversity Has hiring and marketing practices that reflect the ethnic, racial and cultural make-up of the country

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Reputation Attributes (cont.’d)The Next Five Nights

Management Quality Innovation Trust and Social Responsibility The Role of the Employee Change Happens

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Questions for Discussion

Is American Business Unique? Does the Frontier Theory Work? Why did American Business Grow So

Fast? Do we Live in a Global or a National

World? What Defines Success in Business, and

What of That Definition is “American?”