MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
Dr. Larry Gales
email: lawrence.gales@uc.edu
508 Lindner Hall
556-7127
Office Hours:
Monday 5:00-6:00
Course Description:
This course will focus on providing you with a foundation in knowledge and analytical
skills to understand management in the global business context of the 21st century. We will
examine the concept of national culture as it applies to management practice and we will
examine sample cultures from several key business environments. It is difficult in a halfsemester, two-credit course to cover this topic in a comprehensive manner. Rather, we will
focus on the BRIC countries of Brazil, Russia, India, and China. My rationale is that these five
countries represent a diverse landscape of opportunities in developing economies. They also
represent some of the serious challenges that business faces as anyone who has followed the
situation in the Ukraine and Russia, the challenges of the World Cup and Olympics in Brazil, the
economic stagnation and political turmoil in India, or the environmental disaster in China.
Moreover, many of the basic concepts and lessons (although not the specifics of the cultures)
apply universally and I will also bring in examples and issues from other parts of the world. The
objective is to know the correct questions to ask prior to and during any international business
encounter. There is nothing quite like the experience of being there (wherever “there” happens
to be) to learn about culture. I strongly encourage you to take advantage of the LCB’s study
abroad short-course opportunities to get some first-hand exposure. This course is preparation
for that exposure or any other international experience. It is merely a start.
Course Objectives:
• To understand national culture as described and defined by various scholars
• To understand how culture affects management and business practices
• To develop an analytic framework that will help you understand key attributes of a
culture and apply those tools to develop problem-solving strategies for business in other
cultures through the use of cases.
• To conduct preliminary research on specific cultures which are key to business in the
21st century.
• To refine your communications (particularly writing) skills in addressing cross cultural
management issues.
Course Format:
• We will use a combination of cases and discussion during the class session. I am
providing you with a reading list that includes background information for our work, but I
generally will not spend too much time lecturing other than in the first class session. My
assumption is that you will read the background materials and cases prior to coming to
class so that we can focus our class time on the analysis and discussion of the cases,
issues and exercises. Given the seven-week/six class format, it is essential to get
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
some of the background material crammed into the first two session. Things will
lighten up after week 2.
Course Material:
• I have tried hard to balance the need for specific materials, keeping costs down, making
material convenient to you, all while observing copyright rules. Thus, the methods for
obtaining the course reading materials are a bit varied. You will need Adobe Acrobat
Reader 6.0 or higher (free download). Read carefully.
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The background text is Cultural Intelligence: Living and Working Globally, 2nd
edition (2009) David C. Thomas and Kerr Inkson, Berrett-Koehler Publishing (for
the best price, check on-line sources; note that there is a paperback version
($24.95) and pdf downloadable version ($13.97)). The Berrett-Koehler website
(http://www.bkconnection.com/ProdDetails.asp?ID=9781576756256&PG=1&Type=BL
&PCS=BKP) has links to several book sellers.
Readings followed by BB are available directly on Blackboard.
Readings followed by HBS are available through Harvard Business School
Publishing. To purchase, go to:
https://cb.hbsp.harvard.edu/cbmp/access/32256012
Weblinks are URLs on the syllabus. You can also access them in Blackboard at
“Readings and Weblinks.”
Readings followed by HO will be handed out in class.
Readings followed by LIB are available in full text through the library. First, the
following link gives information about Harvard Business Review articles:
http://guides.libraries.uc.edu/HBR. To retrieve readings from the library website,
first go to http://www.libraries.uc.edu/research/articles/index.html. Under the heading
“Find Journals” click on “Full Text Journals.” Enter the name of the journal in
the search dialogue box. Make sure the search is set to “Title equals.”
(HBR=Harvard Business Review; OD=Organizational Dynamics)Then click on
“Business Source Premier” (EBSCO). From the EBSCO, click on the
appropriate year and then click on the appropriate volume. That will (finally) get
you to a list of articles. Download the PDF Full Text article (success!)
The following are some useful web resources:
o CIA factbook: https://www.cia.gov/library/publications/the-world-factbook/
o Global Road Warrior:
http://www.globalroadwarrior.com/home.asp?logout=http://www.globalroadwarrio
r.com/index2.asp&reports=n
o Gert Hofstede’s official site: http://www.geert-hofstede.com/
o Transparency International: http://www.transparency.org/
o US Department of State: http://www.state.gov/countries/
o Euromonitor Database: to access the database off-campus go through the library
at http://www.libraries.uc.edu/research/articles/ar_all.php. It is listed as “Global
Market Information Database.”
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
Course Requirements:
You are, of course, expected to attend all class sessions and participate. You will be evaluated
on the quality of your contributions to the discussions, not the quantity. Think before
you speak. Try to advance the discussion or raise counter-points. Don’t monopolize the
discussion. Allow others to participate. I will call on people who I think are not engaged.
This is not to embarrass you but to draw you into the discussion.
Assignments (Please read carefully.)
The course is organize around four countries and associated cases. Teams (3 people) will
provide case introductions for the cases to facilitate class discussion. Your task is to provide a
description of the situation and the company involved. If it is not a fictional company (GTI and
Paula Kobe use fictional companies), you should do some background research. The class as a
whole will discuss the diagnosis of the problems and recommended solutions. Teams will need
to do additional library and on-line research to complete these assignments. Thus, it is
essential that everyone prepares the case and participates in the discussions. Case
presentations should be 15-20 minutes in length. All team members are to participate in the
presentation. The team presentations count for 20% of your grade. Other elements of class
participation will count for an additional 20%.
I will provide overviews on culture, relevant history, economics, politics and business
environment for each country.
You will also complete two individual written case analyses, each counting for 30% of your
grade. Cases must be submitted electronically through Blackboard before the start of
class when that case is presented.
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For the first written assignment, you are to choose among the following cases:
McDonald's Russia, Five Star Beer, and Wal-Mart China.
For the second assignment you are to choose among the following cases: Coffee
Wars: Café Coffee Day Takes on the Global Brands, Natura, Lincoln Electric India,
and Unilever in India: Hindustan Lever’s Project Shakti-Marketing FMCG to the
Rural Consumer.
These assignments are deceptively short – three pages, single-spaced. Don’t let the brevity of
the assignment trick you into thinking that you can breeze through them. If anything, the
opposite is the case. You will need to be very careful and efficient in your analysis and
recommendations. You can assume that we have read the cases so that you do not need to
provide extensive background. You do need to clearly identify the problem, its causes and your
recommended solution. Most importantly, you must provide a rationale for your
recommendation. See the notes on case analysis at the end of the syllabus.
Evaluation: For the two cases, you will be evaluated on the quality of your analysis and
recommendations, as well as the quality of your writing. The papers must be clear, coherent,
organized and grammatically correct. I expect that your papers will exhibit a high degree of
professionalism. See my note at the end of this document about “cardinal errors.” Any one of
these errors can be grounds for fractionally reducing your grade.
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
The team presentation of the case will be evaluated first on the basis of the thoroughness of
your presentation of the situation and background information.
Grading rubric: Both written assignments will be evaluated on a 60 point scale, with 60
indicating an excellent, nearly flawless paper: 20 points for quality of writing (clarity of writing,
grammar, spelling, etc.); 20 points for quality of analysis (use of material on culture and on the
country itself); and 20 points for the quality of your recommendations and the rationale for it (is
the recommendation consistent with your cultural analysis and does it make good business
sense). Late papers will not be accepted as we will be discussing the case in class.
Presentations will be evaluated on 40 point scale: 20 points for the quality of the presentation
itself and 20 points for the comprehensive coverage of the company, situation/problem, and
background context. This will require some research beyond what is covered in the case itself.
Participation is based on a 40 point scale and includes attendance, involvement/engagement,
and encouragement. Everyone is expected to prepare each case for class discussion.
Presenting teams are only responsible for providing background and context. Keep in mind that
the quantity of participation is less important than the quality.
Case Assignment (2 x 60)
Team Case presentation
Participation
Total:
120 points
40
40
200 points
A ≥ 186
A- 179 – 185
B+ 172 – 178
B 166 – 171
B- 159 – 165
C+ 152 – 158
C 146 – 151
Academic Integrity
As with all Lindner College of Business efforts, this course will uphold the highest ethical
standards, critical to building character. Ensuing your integrity is vital and your responsibility.
LCB instructors are required to report ANY incident of academic misconduct (e.g., cheating,
plagiarism) to the college review process, which could result in severe consequences, including
potential dismissal from the college. For further information on Academic Misconduct or related
university policies and procedures, please see the UC Code of Conduct
(http://www.uc.edu/conduct/Code_of_Conduct.html).
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
Class Schedule
Date: Topic
January 12
Course Overview
Teams
Life in the Flat World of the 21st Century
Introduction to Cultural Analysis
Hofstede, GLOBE and other frameworks
Readings
-Chpt 1-3: Thomas and Inkson
-Website:
http://www.doingbusiness.org/data/exploreecon
omies/russia
-http://www.worldbusinessculture.com/Businessin-Russia.html
Focus on Russia: Introduction to Russia
(updates with reference to the current
situation in Ukraine and its impact on
Russian business)
What are the key attributes of Russian
culture?
Why are they important in a business context?
Know before you go.
Developing cross-cultural managers for global
business
Managing Risk
January 19 No Class
January 26: Russia Cases
>>GTI in Russia: Is it reasonable to develop
an entry strategy in four weeks for a new
venture in an unfamiliar culture? What are
some key elements of Russian culture that
should be considered? How should Granum
proceed?
>>Although the situation/decision in the
McDonald’s case is a bit dated, and not even
the most interesting part of the case, there are
some critical lessons that apply to market
entry and management in a developing
economy. What did McDonald’s do right?
Contrast that example with GTI’s entry
strategy. What HR management lessons are
key?
Challenges of managing risk in developing
economies.
Introduction to China
Martin Luther King Holiday
-Case: GTI in Russia. HBS Ivey 903C08
-Chpt 5-6: Thomas & Inkson
-Website:
http://www.doingbusiness.org/data/exploreecon
omies/russia
- Case: McDonald’s Russia: Managing a Crisis.
HBS HBS 9-503-020
-Article The Right Way to Manage Expats LIB
HBR 1999 vol. 77, #1, Mar/Apr
-Article: China: Building “Capitalism with
Socialist Characteristics” HBS HBS 9-706-041
Article: China Blue Paper
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
February 2: Applying Western business
models in Asia I: Managing supply chains in
a global environment
>>Some business models are very much
grounded in the culture of the home country.
What does Wal-Mart need to do to do
business in China? What are the political,
economic, and cultural challenges they face?
How have they managed? Do some
background research to see how Wal-Mart is
managing in China today? Are there some
inconsistencies in the portrayal of
Wal-Mart business practices given some
recent challenges in the US?
Managing People in a global environment
>>Is a pay-for-performance system the top
priority for Five Star Beer? What else needs to
be done to ensure quality products? Is the
system that was developed truly a “pay-forperformance” system? If you were to
implement a pay-for-performance system in
the Chinese environment, what would it look
like; how should it function?
Follow-up: What happened to Five Star? Do
web research to see what happened to this
once iconic Chinese brand.
February 9: Technology in developing
markets
China has placed limits on the availability of
certain internet technology (Google,
Facebook, etc.). Many businesses rely on
these technologies for their operations.
Decathlon is a French sporting goods retailer
that has struggled to adapt to these
constraints.
A recurrent theme in developing countries is
the tension between affordable and accessible
products and services, and the protection of
property rights. This challenge is played out in
nearly every sector from high tech to
consumer goods. The tensions between
property rights and health, life, and death are
certainly relevant in pharmaceuticals, but it is
-Chpt 7-8: Thomas & Inkson
-Article: Inside the Mind of the Chinese
Consumer. LIB HBR March 2006
- Case: Wal-Mart Stores: “Every Day Low
Prices” in China. HBS Asia Case Research
Centre HKU590
-Wal-Mart’s Painful Lesson BB
- Five Star Beer – Pay for Performance. Ivey
9A98C004 March 2006 HO
-For American Workers in China, a Culture
Clash BB
-Article: In China, Appearance of Consensus is
Breaking Down (NYTimes, 1/22/13)
Case: Decathlon China: Using Social Media to
Penetrate the Internet Market HBS
Weblink - WTO Website:
http://www.wto.org/english/tratop_e/trips_e/t_agm0_e
.htm
-EU Website: http://www.ipr-helpdesk.org/index.html
http://www.ctv.ca/CTVNews/World/20110804/chinacounterfeit-goods-fake-stores-110807/
Article - Swike, E., Thompson, S., and Vasquez, C.
(2008). Piracy in China, Business Horizons, 51, 493500 LIB
-Weblink:
http://www.doingbusiness.org/data/exploree
conomies/india/
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
harder to make the case in consumer products
like fashion, music, video, software, etc. The
reality is that there is very little in the way of
property rights protection in the developing
world. This poses a challenge to Western firms
trying to produce and market in those parts of
the world. We will look at the issue in China
and discuss the implications.
Introduction to India
>>Transition China – India:
Starbucks is becoming an iconic American
brand in the food and beverage service
market. Yet coffee culture does not
necessarily fit all markets. For example, China
and India have traditionally favored tea or chai
over coffee. Nonetheless, many global coffee
chains have tried to enter these markets and,
in some cases, homegrown competitors have
pre-empted Starbuck’s. “Coffee Wars”
describes an Indian startup that is challenging
Starbuck’s attempt to get a foothold in India.
The case also describes Starbuck’s entry into
China. What are the key lessons from
Starbuck’s entry into China, to CCD’s venture
in India? What are the prospects for each in
India in the future? Is there room for both in
the Indian market? Where are the two
company’s in the Indian market today
February 16
Applying Western business models in Asia
– II: Focus on India
>>Entering a developing market is always a
challenge, even more so with the current
economic environment. The market for
industrial machinery, especial machines
necessary for infrastructure development are
and will be in huge demand as India attempts
to improve roads, power grids, airports, rail
systems, water and sewage treatment
systems and other aspects of the
infrastructure. Small domestic firms and early
entering international firms have already
staked out positions in the wielding equipment
market. Lincoln Electric needs to determine
Article on the recent election in India
http://www.nytimes.com/2014/05/17/world/asi
a/indiaelections.html?action=click&module=Search
&region=searchResults&mabReward=relbias
%3Ar&url=http%3A%2F%2Fquery.nytimes.c
om%2Fsearch%2Fsitesearch%2F%3Faction
%3Dclick%26region%3DMasthead%26pgtype
%3DHomepage%26module%3DSearchSubmi
t%26contentCollection%3DHomepage%26t%
3Dqry600%23%2FIndia%2520delivers%2520c
lear%2520mandate&_r=1
-Case: Coffee Wars: Café Coffee Day Takes on
the Global Brands HBR 9-714-409
- Case: Lincoln Electric (India) HBS 9-707-445
-Case: Unilever in India: Hindustan Lever’s
Project Shakti-Marketing FMCG to the Rural
Consumer HBS HBS 9-505-506
-Rural India gets a piece of jobs boom, BB
-Article: Doing Business in Brazil (World Bank)
BB
-Website:
http://www.worldbusinessculture.com/Busin
ess-in-Brazil.html
MANAGEMENT 7017
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the best mode of entry: joint venture,
acquisition, or a “greenfield” operation. Each
has positives and negatives.
The Challenge of Rural Markets
>>India has the second largest population in
the world and has, like China, gone through
extensive growth and market liberalization in
recent years. While both countries share some
issues common to developing economies, they
also have very different cultures, histories,
economies and politics. Unilever was an early
entrant into the Indian market and has enjoyed
significant success, not without many
challenges. Project Shakti provides an
interesting perspective on both the business
and social issues. What has Unilever done
right? What are the lessons? What are the
particular challenges of doing business in
India?
Focus on Brazil: Introduction to Brazil
February 23
Case: Paula Kobe BB
Paula Kobe: Ethical management,
leadership, and markets in a multicultural
environment.
>>What should management in Atlanta done
to better prepare Paula Kobe for her
assignment in Brazil? Was it a mistake to send
her? What about the Brazilian management?
What should have been done?
[Do some research on Brazilian and other
country standards for sexual harassment.]
>> What are the extents to which multinational
companies must go to protect expats? P&G
examples.
Tailoring your business model to a
multicultural developing market.
What is uniquely Brazilian about Natura’s
business model, products and management?
What characteristics of Brazilian culture does
their strategy tap? Would you take the model
to Russia? Modifications?
-Case: Natura: Global Beauty Made in Brazil
HBS HBS 9-807-209
-Reshaping Brazil’s Retail Scene,
Inspired by Vegas and Vanderbilt (NYTimes, 914-13) BB
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
Tying together loose ends: What does it all
mean about doing business globally?
ANALYZING CASES During your business education, you will often be asked to analyze a "case." Teaching
by the so called "case method" (aka the "Harvard method") has become central to many
business programs, including UC. To properly perform a case analysis, it is important to
understand some basic points.
The Case
A case is a scenario or description of a business situation. The case narrative or text
material typically outlines a situation, problem or decision point for the organization. That is,
management is faced with a situation where it must act. The action may be to correct a
problem, make a choice, implement a new strategy or evaluate a course of action, to illustrate
a few examples. A case may focus on any or all of the functional domains of business (i.e.,
finance, accounting, marketing, operations, information systems, and/or management). In
addition to highlighting the problem or choice point, the case will provide background or
contextual information: company history, performance, personnel, industry, business
environment, etc. Sometimes case writers will include information that is only tangentially
related or that may even be irrelevant to the problem or choice. This is done to challenge your
analytic skills.
The case may be written in a number of different ways. The case may be composed of
interviews with critical actors or omnipotent "objective" descriptions of situations. These
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
human data sources are often augmented with archival data - e.g., reports, documents,
memos, transcripts, etc. It is important to note that a case is typically written to illustrate a
point and to test the student's ability to perceive, diagnose, and suggest a course of action.
The Analysis
As with any learning task, students will exhibit different styles in preparing a case. We
encourage your creativity. The following are suggested guidelines. Keep in mind that your
objectives in analyzing a case are:
1. Understand and BRIEFLY summarize the relevant aspects of the situation or context company, industry, people, and business environment.
2. Diagnose the problem/identify the key choices that the organization faces. A diagnosis may
include some history of the problem.
3. Suggest a course of action and provide a rationale (the rationale, based on concepts
from your general business education is the most important part of the analysis and
recommendation) for your suggestions. Important: Your rationale should draw on course
content as well as data from the case.
Suggestions for preparing a case:
1. Quickly skim the case to get a sense of the key issues, people, and conditions.
2. Reread the case for detail, taking notes, highlighting important points. Note questions and
missing or potentially misleading data.
3. Determine what the key issue or problem is. For example: Is the case about a firm's
generally poor performance or is it more narrowly focused on top management's inability to
make timely decisions? Often, a case will embed problems within a broad context of many
other problems. The key is to identify the focal problems that are central to the case.
4. Determine the analytic questions that are critical to prescribing a course of action. [This
step may also involve stating assumptions about the firm when information in the case is
incomplete or ambiguous.]
5. Using the case information and your assumptions, answer the analytic questions.
6. Develop a course of action. State your rationale and reasons for rejecting other solutions.
Who would be involved? What constraints or limitations would you face?
It is a good idea to test your analysis with your cohorts or team members. Discussion
and feedback are important elements of any problem-solving situation.
Presenting a Case Analysis (written or oral)
Once you have analyzed a case, you need to communicate your insights to others. In
the classroom setting, your goal is to enlighten others, share ideas, and test your grasp of
material. These same analytical and rhetorical skills will be useful in future jobs. In the "real
world" setting, you are communicating with your boss, colleagues, subordinates, and/or
outside stakeholders. Thus, good case analysis does not count for much if you cannot
communicate the information to others. The following are some keys to good case analysis:
MANAGEMENT 7017
MANAGING ACROSS CULTURES
Spring Semester 2015 –First Half
1. BRIEFLY (a few sentences) summarize key details. Set the context (company, industry,
general environment and key players). Identify the central problem that is the focus of the
case. Don't waste time with a detailed retelling of the case.
2. Focus on the central question or problem. Sometimes a case assignment will pose a
specific question. Stick with that question. Provide supporting evidence for your diagnosis of
the problem. Where relevant and useful, bring in concepts and theory from text or classes.
Consider the problem from the multiple viewpoints of the relevant stakeholders.
3. If the assignment asks for suggestions or solutions, be specific. Provide a detailed action
plan. What would you do if you were the manager, consultant or other key person in the
case? Provide a rationale for your action plan. Why should this plan work? What are the
warnings, limitations or constraints that should be attached to your plan?
Don't "hedge." Make a choice and stick with it. This does not preclude making contingency
plans to deal with potential problems you may face implementing your plan. Does your plan
have a reasonable chance of succeeding? What are the likely consequences of the
implementation of your plan? Are there any undesirable side effects that should be
anticipated?
4. If the case is a written assignment, assume that this is a report that you are sending to your
boss. It should be well written, concise, logical, literate, visually appealing, and carefully
prepared (I.E., PROOFREAD!). It should not be merely a collection of bullet points or an
outline. It should be a prose text. Communicating your analysis and recommendations is
critical.
The objective of a case is to provide you with an opportunity to exercise your knowledge
and skills in a situation that simulates organizational work-life situations. Frequently, there is
no one right answer. There may be several good answers that make different diagnoses and
suggest different courses of action. However, there are also weak analyses that take
shortcuts, ignore key information, fail to utilize relevant concepts and theory, and that are
illogical.
Cardinal Errors
(or mistakes that you don’t want to make)
The following are a list of mistakes commonly made on written assignments.
Please note that if you make one of these errors, it will lead to serious consequences.
• It’s, its, and its’: It’s is a contraction for “it is”; its is a possessive pronoun
(something belonging to “it”) or an adjective modifying a noun; its’ is not a word.
• There, their, they’re: There is either an adjective indicating location or a noun
indicating place; their is a possessive pronoun indicating possession (it belongs
to them); they’re is a contraction of “they are.”
• Lose, loss, loose: Lose is a verb that indicates being deprived of something (the
Reds will lose to the Phillies tonight); loss is a noun, as in “we will have a big loss
MANAGEMENT 7017
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this quarter:” loose is an adjective or adverb for not tight (loose fitting garment) or
freed from restraint (the dog got loose from the pen). It can also be used as a
verb, as in the “Battle Hymn of the Republic,” “to loose his terrible swift
lightening…”
Affect, effect: Affect is a verb as in “the rain will affect the attendance at tonight’s
game;” note that “affect” can also be used to indicate a feeling or condition as in
“she affected ignorance of the mistake;” we also talk of a person’s “affect” (noun)
(the mortician had a rather flat, unemotional affect) or affectation – a person
acting in a certain way; Effect is a noun that indicates the result or consequence
as in “the rain had no effect on me,” or “the effect of not attending class is a
reduction in grade.”
To, too, and two: preposition, adjective or adverb, number
i.e., e.g.: i.e. is from the Latin id est and means “that is” or “therefore;” e.g. is
from the Latin exempli gratia and means “for example.” Notice the periods. It is
preferred that phrases introduced with either “e.g.” or “i.e.” be enclosed in
parentheses.
A lot, allot: A lot (two separate words) refers to a large quantity; allot means to
distribute (allocation). Alot is not a word.
Who, that, which: be clear on the correct use of each. When you are referring to
a person or people, use “who” (e.g., Dr. Gales is the person who teaches our
class). Use “that” when referring to a specific thing/object and use “which” when
there is a choice (as in “which one”).
Allowed and aloud: the first means that something is permitted; the second
refers to something that is said out loud.
A note about the use of first person (I and We): try to avoid first person in
formal writing. It is assumed that the opinions expressed are yours.
Then and than: then (adverb) refers to time as in if…then, next, before, at a
particular time; than (adverb) refers to a comparison as in larger than.
The above list is of only the most egregious common writing errors. There are
many more. Please carefully proofread your work. Including any of the above errors will
result in an automatic point deduction from team and individual projects.