Additional Internet Sites:









http://embassy.org
http://www.census.gov/foreigntrade/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/customsw
ebsites.html
http://www.buyusa.gov/home/
http://www.trade.gov/td/tic/tariff/country_sites.htm
Irwin/McGraw-Hill [Modified by EvS]
6-1
HON Industries Information
 Office
Chairs (import) 9401.30.8030
– Swivel seats with variable height
adjustment, made with metal frames
Irwin/McGraw-Hill [Modified by EvS]
6-2
Irwin/McGraw-Hill [Modified by EvS]
6-3
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
Irwin/McGraw-Hill [Modified by EvS]
6-4
Irwin/McGraw-Hill [Modified by EvS]
6-5
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.
Irwin/McGraw-Hill [Modified by EvS]
6-6
Irwin/McGraw-Hill [Modified by EvS]
6-7
Mgt 470
CHAPTER 6
MANAGING ACROSS
CULTURES
Irwin/McGraw-Hill [Modified by EvS]
Mgt 470-4-8
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)
Irwin/McGraw-Hill [Modified by EvS]
6-9
Footwear International Case
1.
2.
3.
4.
5.
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?
What was the first indication of a possible
problem?
Who is responsible? Why?
What should John Carlson have done, when,
and why?
What is the common thread between the
IKEA, Disney and Footwear case studies (cite
specific examples to support at least three
commonalities)
Irwin/McGraw-Hill [Modified by EvS]
6-10
Fundamental factors in designing
Organizations
Underlying values
T Objectives
Structure
T Number of jobs
T Methods of communication
T Relationships
Planning and control(s)
T Planning, measurement, evaluation schemes
Compensation / reward system
T Pay philosophy, promotions, raises, bonuses, etc.
Workforce selection
T Criteria for selection at different levels
Training, technological adaptation
Utilization of external “expertise”
Irwin/McGraw-Hill [Modified by EvS]
6-11
Strategies for Managing
Across Cultures
3
Central Management issues when
considering going global:
– Organizational Structure
 Authority
/ Autonomy
 Reporting relationships
– Planning, Measurement, Control schemes
– Standardization / Adaptation
Irwin/McGraw-Hill [Modified by EvS]
6-12
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
Irwin/McGraw-Hill [Modified by EvS]
6-13
Strategies for Managing
Across Cultures
 Globalization
- National responsiveness
–Why is this an issue?
Irwin/McGraw-Hill [Modified by EvS]
6-14
Strategies for Managing
Across Cultures
 Cultural
Irwin/McGraw-Hill [Modified by EvS]
differences making a difference
6-15
Strategies for Managing
Across Cultures
 Cultural
differences making a difference
– 6 Basic cultural variations
People’s Nature
Relationship to nature
Relationship to other people
Modality of human activity
Temporal focus on human activity
Conception of space
Irwin/McGraw-Hill [Modified by EvS]
6-16
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
Irwin/McGraw-Hill [Modified by EvS]
6-17
Strategies for Managing
Across Cultures
 Why
are MNCs committed to a
“globalization imperative?”
Irwin/McGraw-Hill [Modified by EvS]
6-18
Strategies for Managing
Across Cultures
 Why
develop unique strategies?
Irwin/McGraw-Hill [Modified by EvS]
6-19
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
6-20
Irwin/McGraw-Hill [Modified by EvS]
Globalization Vs. National
Responsiveness Matrix
National Responsiveness
High
High
globalization
Low
Mixed
Globalization
Low
Mixed
National
Responsiveness
Irwin/McGraw-Hill [Modified by EvS]
6-21
Strategies for Managing
Across Cultures
 Globalization
paradox
– Impossibility of conducting business “oneway”
– “Secret Hope”
 Transportability
of successful strategies &
procedures
 There
are more cultural differences than
similarities
Irwin/McGraw-Hill [Modified by EvS]
6-22
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
Irwin/McGraw-Hill [Modified by EvS]
6-23
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
Irwin/McGraw-Hill [Modified by EvS]
Low Context





relationships are short in
duration
explicit communication
authority is diffused
written agreements
ousiders are encouraged
to join inner circle
– U.S.
6-24
General Similarities Across
Cultures

Managerial behaviors in Russia
–
–
–
–
communication
HRM
traditional management
networking
Application of O.B. Mod. in Russia
 Organizational commitment in Korea

Irwin/McGraw-Hill [Modified by EvS]
6-25
General Differences Across
Cultures
 HRM
activities
– labor laws
– wages
– vacation time
– maternity leave
– compensation
– group Vs. individual incentives
Irwin/McGraw-Hill [Modified by EvS]
6-26
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
Irwin/McGraw-Hill [Modified by EvS]
6-27
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 handthe left is considered
unclean
The namaste gesture can be
used to greet people
Bargaining for goods and
services is common
Irwin/McGraw-Hill [Modified by EvS]
6-28
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
Irwin/McGraw-Hill [Modified by EvS]
6-29
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
Irwin/McGraw-Hill [Modified by EvS]
6-30
Doing Business in Arab Countries
{Http://arab.net/}





Irwin/McGraw-Hill [Modified by EvS]
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
6-31
HON Industries
 What
is at least ONE reason that
HON is / or may be interested in
conducting business in {your
researched country}
Irwin/McGraw-Hill [Modified by EvS]
6-32
HON Industries
 What
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?
Irwin/McGraw-Hill [Modified by EvS]
6-33