Case Study
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Cross-Cultural Management
Case 1:
Application Case in Chapter 3
Cross-Cultural Management
Zane's Cycles, is an independent bicycle shop run by its thirtysomething founder, Chris Zane sells the most bikes in the
New Haven, Connecticut, area. To many people, Chris Zane is
the epitome of today's manager. Zane had a lot of faith in his
ability to be successful. He learned all he could in college
about running a business--particularly focusing on satisfying
customers and implementing new and creative techniques to
achieve his goals.
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Cross-Cultural Management
When those two competitors went out of business, he negotiated
a deal with the phone company. He agreed to pay the
remainder of the two companies' Yellow Page advertising.
Callers to either of those numbers heard not only, "The
number you are calling is no longer in service," but also, "If
you are in need of a bicycle dealer, Zane's Cycles will be
happy to serve you." By pressing zero, the caller is
automatically transferred to Chris!
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Cross-Cultural Management
Chris recognized that he had to give the appearance of being a
larger business--especially if he wanted to expand nationwide
and possibly abroad. He contracted with a marketing co-op
firm to develop a thirty-two-page mail-order catalog.
Although his creativity had boosted sales, Zane recognized
that most of his business came from customers who visited
the shop. He hired sales representatives and gave them the
freedom to make whatever decisions they needed to please the
customer and make a sale.
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Cross-Cultural Management
But ringing up an "immediate" sale is not the primary focus. If
customers need a bike part--a tire valve cap or a chain link-salespeople simply give it to them. The store also gives away
cellular phones so bike riders can keep in touch with others or
be prepared to make a call for assistance if needed. Zane also
believes that any successful business owes its success to the
community that supports it. It's a relationship that must be
nurtured.
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Cross-Cultural Management
Question 1
• Identify and describe the entrepreneurial spirit
exhibited by Chris Zane. How has this affected his
business?
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Cross-Cultural Management
Entrepreneurial Spirit
Entrepreneurship is the process of initiating a
business venture, organizing the necessary resources,
and assuming the risks and rewards.
Entrepreneurs usually start small business--one that
has fewer than 500 employees.
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Cross-Cultural Management
2.
Why the increased popularity?
a)
There has always been a segment of the population that
wanted to control its own destiny.
b)
Recent changes in the economy have stimulated interest in
being one's own boss.
(1)
Corporate downsizing.
(2)
Self-employment opportunity financed in part by their
severance pay or early retirement bonus.
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Cross-Cultural Management
(3)
Others see colleagues and friends lose their jobs
and voluntarily cut their corporate ties and choose
self-employment.
(4)
Growing options in franchising.
Less risk. Lower failure rate.
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Cross-Cultural Management
Answer to Question 1
• He exceeded customer expectations and competitors'
offers. Taking over the phone numbers of defunct
competitors was an act of genius. Giving salespeople
the power to make decisions to make the sales.
Focusing on customer needs, etc.
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Cross-Cultural Management
Question 2 and its answer
• Do you believe that Chris Zane endorses the concept that the
"customer is king"? Support your position with examples.
• Answer- Letting customers browse, giving away items to meet
customer needs, hiring knowledgeable sales people who help
and advise, etc.
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Cross-Cultural Management
Total Quality Management
• Continuous improvement
• Employee empowerment
• Accurate measurement
• Customer focus
• Overall quality
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Cross-Cultural Management
Question 3
• Is Chris Zane a socially responsible employer? Does
your opinion change when you consider some of the
socially responsible actions he takes has helped him
achieve a 700 percent return on investment?
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Cross-Cultural Management
Arguments for
Social Responsibility
 Public expectations
 Long-run profits
 Ethical obligations
 Public relations image
 Better environment
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Cross-Cultural Management
Arguments for
Social Responsibility
Fewer government regulations
Balance of responsibility and power
Stockholder interests
Possession of resources
Prevention versus cures
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Cross-Cultural Management
Arguments Against Social
Responsibility
• Violation of profit maximization
• Dilution of purpose
• Costs outweigh benefits
• Too much power
• Lack of skills
• Lack of accountability
• Lack of broad public support
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Cross-Cultural Management
Answer to Question 3
• Yes, he’s heavily involved with the community and
places the customer first. The fact he has a positive
business/profit outcome does not diminish the social
responsibility of his actions.
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Cross-Cultural Management
Case 2:
Application Case in Chapter 4
Cross-Cultural Management
Question 1
• What type of grand strategy(ies) have Chao pursued?
Cite specific examples.
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Cross-Cultural Management
Answer to Question 1
• None of the strategies fit directly, the closest being
growth--growth through more sales revenues, more
employees, or more market share, through direct
expansion, new product development, quality
improvement.
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Cross-Cultural Management
Question 2
Michael Porter identified three generic strategies
that companies can follow to develop a competitive
advantage. Which one of the three do you believe
Chao is primarily using? Discuss and support your
choice.
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Cross-Cultural Management
Answer to Question 2
• Focus (uniqueness in a narrow market) strategy. He
chose to go after market segments where sales rarely
exceeded $10 million and where little drug name
recognition existed.
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Cross-Cultural Management
Question 3
• What characteristics does Allen Chao possess that
indicates he is an entrepreneur? Give specific
examples.
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Cross-Cultural Management
Answer to Question 3
• A number of common characteristics have been found; hard
work, self-confidence, optimism, determination, a high energy
level, and even good luck. Entrepreneurs have a high need for
achievement. They believe strongly that they can control their
own destinies. They take only moderate risks. His persistence
in face of obstacles, giving up so much of his company to get
money, the continually execution of a very focused strategy,
etc.
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Cross-Cultural Management
Case 3:
Application Case in Chapter 5
Cross-Cultural Management
Question 1
1. What types of problems do you see Loida Lewis
having to deal with in this case? Explain.
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Cross-Cultural Management
Answer to Question 1
Poorly structured.
(1)Lewis did not have the business acumen or the
experience of her late husband.
(2)The company was losing money.
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Question 2
2. What decisions did Loida Lewis make that helped
turn around the ailing company? Would you classify
them as programmed or non-programmed? Why?
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Cross-Cultural Management
Answer to Question 2
She made several major decisions, paring down the company to
enhance its core business operations. She sold off the company
limousine and the jet, cut headquarter staff in half, and sold off
many of the less-profitable companies, focusing on reducing
Beatrice's debt. These are all non-programmed to the company,
but would be "standard" decisions to save a company money.
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Cross-Cultural Management
Question 3
3. How would you describe Lewis' decision-making
style? Cite specific examples.
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Answer to Question 3
Behavioral style. (Think intuitively but has a low tolerance for
uncertainty)
She began molding it in her image. She involves her inner group
in decisions and uses compassion to develop a "focused,
disciplined, sensitive, and collegial atmosphere."
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Case 4:
Application Case in Chapter 6
Developing Your Diagnostic and
Analytical Skills
Cross-Cultural Management
Question 1
1. Would you describe ABB as more of a mechanistic
or an organic organization? Explain and use specific
examples to support your position.
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Cross-Cultural Management
Answer to Question 1
It probably was mechanistic but became organic. The
redesign made ABB highly adaptive, focused on the
ability to change rapidly as needed, and used
professionals who are technically proficient and
trained to handle diverse problems.
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Question 2
2. Describe how technology and communications
have affected ABB's organizational structure.
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Cross-Cultural Management
Answer to Question 2
Students’ answers will vary based on their assumptions,
as the case is not explicit in regards to these elements.
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Question 3
3. How would you describe the characteristics of ABB's
culture?
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Cross-Cultural Management
Answer to Question 3
Students' responses will vary.
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Case 5:
You are riding in a car driven by a close friend.
He hits a man. You know he was going at least
35 miles per hour in an area of the city where
the maximum allowed speed is 20 miles per
hour. There are no witnesses. His lawyer says
that if you testify that he was driving 20 miles
per hour it may save him from serious
consequences.
Cross-Cultural Management
Question 1
1. What right has your friend to expect you to protect him?
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Answer to Question 1
•
•
•
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My friend has a definite right as a friend to expect me to
testify.
He has some right as a friend to expect me to testify.
He has no right as a friend to expect me to testify.
Cross-Cultural Management
Question 2
2. Will you testify that your friend was driving 20 miles
per hour?
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Answer to Question 2
•
•
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Yes.
No.
Cross-Cultural Management
Case 6:
On a beautiful deserted island in the middle of
nowhere, the following people are suddenly
stranded by a shipwreck:
2 Italian men and 1 Italian woman
2 French men and 1 French woman
2 German and I German woman
2 Greek men and 1 Greek woman
2 English men and 1 English woman
2 Bulgarian men and 1 Bulgarian woman
2 Japanese men and 1 Japanese woman
2 Chinese men and 1 Chinese woman
2 American men and 1 American woman
2 Irish men and 1 Irish woman
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One month later on the same absolutely
stunning deserted island in the middle of
nowhere, the following things have occurred:
One ___________ man killed the other
___________ man for the woman.
The two ___________ men and the
___________ woman are living happily together
in a house.
The two ___________ men have a strict
weekly schedule of alternating visits with the
___________ woman.
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Cross-Cultural Management
The two ___________ men are sleeping with each other
and the ___________ woman is cleaning and cooking
for them.
The two ___________ men took one long look at the
endless ocean, and another long look at the
___________ woman, and started swimming.
The two ___________ men have faxed Tokyo and are
awaiting instructions.
The two ___________ men have set up a pharmacy, a
liquor store, a restaurant and a laundry, and have got the
___________ woman pregnant in order to supply
employees for their stores.
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Cross-Cultural Management
The two ___________ men are contemplating the
virtues of suicide because the ___________
woman keeps endlessly complaining about her
body; the true nature of feminism; how she can do
everything they can do; the necessity of fulfilment;
the equal division of household chores; how sand
and palm trees make her look fat; how her last
boyfriend respected her opinion and treated her
nicer than they do; but how her relationship with
her mother is improving and how at least the taxes
are low and it isn’t raining.
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The two ___________ men are waiting for
someone to introduce them to the
___________ woman.
The two ___________ men have divided the
island into North and South and set up a
distillery. They do not remember if sex is in the
picture because it gets sort of foggy after the
first few litres of coconut whisky. But they’re
satisfied because at least the English aren’t
having sex either.
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• One month later on the same absolutely stunning
deserted island in the middle of nowhere, the
following things have occurred:
• One Italian man killed the other Italian man for the
woman.
• The two French men and the French woman are
living happily together in a house.
• The two German men have a strict weekly schedule
of alternating visits with the German woman.
• The two Greek men are sleeping with each other and
the Greek woman is cleaning and cooking for them.
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Cross-Cultural Management
The two Bulgarian men took one long look at the
endless ocean, and another long look at the Bulgarian
woman, and started swimming.
The two Japanese men have faxed Tokyo and are
awaiting instructions.
The two Chinese men have set up a pharmacy, a liquor
store, a restaurant and a laundry, and have got the
woman pregnant in order to supply employees for their
stores.
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Cross-Cultural Management
The two American men are contemplating the virtues of
suicide because the American woman keeps endlessly
complaining about her body; the true nature of feminism;
how she can do everything they can do; the necessity of
fulfilment; the equal division of household chores; how
sand and palm trees make her look fat; how her last
boyfriend respected her opinion and treated her nicer than
they do; but how her relationship with her mother is
improving and how at least the taxes are low and it isn’t
raining.
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The two English men are waiting for someone to
introduce them to the English woman.
The two Irish men have divided the island into North and
South and set up a distillery. They do not remember if sex
is in the picture because it gets sort of foggy after the first
few litres of coconut whisky. But they’re satisfied because
at least the English aren’t having sex either.
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Cross-Cultural Management