Dr. JózsefPoór, DSc.,CMC Professor of Management

Poór_2015_Business Cases

WORKSHOP 2:

Case study activity

Change your business case

Dr. József Poór, DSc.,CMCProfessor of Management

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2nd AIB-CEE Chapter Seminar Recognising the changing character of the CEE region:

towards an updated agenda of business, IB research and teaching

January 9-10, 2015

Ljubljana


Dobro jutro, dame in gospodje!

Good Morning Ladies and Gentlemen!


Key Issues

• How to teach IM& HRM issues within IM?

• Case approaches

– Case description assignments

– Case exercises on survival of local brands

– Case exercise with proposal

– International Case Development Program –

X-Culture

• Conclusions

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Febru

HRM within international

firms

Company objectives

Sales volume

Supply of raw

materials

Diversification

Innovation

International managementtools

Export-importLicence & franchiseeTurn-keyinvestmentManagementcontractDirect and portfolioinvestmentStrategic alliance

StrategyMarketingProductionFinanceHR

FunctionsOperations

Strategic orientation

(transnational vs.

multinational)

Orientation of the management

(ethnocentric vs.

transnational)

Level of development of the

company in the region

(startup vs. full spectrum)

Internal factors

Environmental and social factors

External global factors

Competitive and institutionalenvironment

External influencing factors IHRM tools and issues

Role definition

(person vs. job)

Socialization

(burocracy vs.clan)

Integration(structure vs. network)

Symbols(power vs. metaphores)

Leading role of HR

(entrepreneur vs. top manager)

Orientation of HR

(function vs. inter-functional

integration)Mechanism of knowledge transfer

(opportunistic vs. integrative)


17 February

2016

Classical advices: Confucius

(551-479 î.c.)

• Hear, I forget

• See, I remember

• Do, I learn

Poór_2015_Business Cases17 February 2016

Five basic questions of a T&E

preparation

Whom?

When?

Where?

Why?

What and

How?

Skill

Knowledge

Social Role

Self-ImageTrait

Motive


Perspectives of IM/IHRM

Education within BS Education

Analytic perspective Holistic perspective

*Source: Thomas,H-Lee,M-Thomas,L.-Wilson,A. (2014): Securing the Future of the

Management Education. Emeralda, Bringley (UK)

Theory+

Techniques

Practice+

Analytic and BehaviorialTechniques


Case description assignments (1)

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Case #1: Tom Hanks as Fedex manager (“Cast Away” movie) was able to explain Russian employees American interpretation of effective working time

Case #2: German car-maker VW (Volkswagen) makes Skoda a Czech success

Case #3: GE-Tungsram

Case #4: Japanese Global Glass Producer Asahi Glass Company (AGC) in transitional environment

Case #5: American Global professional service providers (management consultancies) compete for a bigger stake on growing EE markets


Case description assignments (2)

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1-33 case despritions

100 students are assigned to case descriptions (3 people per one case)

EXAMPLE

Teams are collecting background information oncases

Teams are submitting case analysis

Teams are presenting their case analysis

Instructor is evaluting team performances


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Roads to transitional (CEE) economies

Case One: Fedex in Moscow (1)

• Chack Nadal as FedEx manager (“Cast Away” movie) was ableto explain Russian employees American interpretation ofeffective working time.

• In 2006 and for the 9th consecutive year, FedEx wasrecognized as one of the "100 Best Companies to Work For"by Fortune Magazine and the Great Place to Work Institute.FedEx is present in Russia since beginning 1990s.


17 February 2016



„The World on Time”


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Culturally correct behaviors Culturally incorrect behaviors

Countries PDI UAI MAS IDV CDI

1 Russia 95 75 40 47 -

2 US 40 46 52 91 29

„The World on Time”


Case exercises on survival of

local brands (1)



local brands (2)

With the tentative acquisition of 53.12% of the shares of Slovenian

retail chain Mercator, Croatian player Agrokor, which also owns Konzum,

is set to become the largest retail group in the ex-Yugoslavian region.

This will also make it a relevant competitor for European retail chains



local brands (3)



local brands (4)


Case exercise with proposal

MCI is a multinational engineering firm (MCI). It was established fifty years ago in Paris. Meantime it has extended its business operation to several Western European countries. Now it has 25 offices worldwide. MCI opened its first office in Hungary 1996. Later six other subsidiaries were established in different Eastern and Central European countries (Bulgaria, Czech R., Poland, Romania. Russia and Slovenia). The regional HQ of the firm is located in Budapest. MCI Poland was inaugurated in 2001.

Exhibit Three: Staff and financial data of MCI in (EUR in thousands)

2010 2011 2012

Revenue 28 000,00 30 000,00 31 000,00

Direct costs 15 000,00 16 000,00 18 600,00

Gross margin 14 000,00 12 000,00 12 400,00

Indirect costs 13 000,00 14 000,00 15 000,00

Profit 1 000,00 -2 000,00 -2 600,00

Professional staff (people) 300,00 300,00 310,00

Administrative staff (people) 100,00 130,00 140,00

Total (staff) 400,00 430,00 450,00


Consulting Approaches

Source: Brooks and Edwards:

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Poór_2015_Business Cases 19


Advice model

Data collectionand diagnosis

Preventing adviceand solution

Implementation

Termination

Preliminary diagnosis, proposal and contract

Data collection, research and analysis

Create solutions, report writing andgiving presentation

Realisation, training and education

Evaluation, presentation and final report

Entry



Process Consulting Model

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Inquiry model

1. Clarify outcome

and negotiate

contract

2.Establishing Our

Inquiry Partners

3.Finding Out Who

Else Can Contribute

4. The Inquiry Circle

5.Sharing

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Source: Brooks and Edwards


Proposed structure of a proposal

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Proposal

1 Title of your proposal

2 Aim of your consulting proposal

3 SWOT analysis of the business situation

4 The culture of the analyzed organization by usage of Hofstede

variables

5 Major parts (sections) of your consulting proposal

6 Major steps of your consulting proposal by usage of Gantt

diagram

7 Pros and cons of your consulting proposal


International Case Development

Program – X-Culture (1)

• X-Culture was launched in 2010 by Dr. Vas Taras (Greensboro University, US.)

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http://www.vtaras.com/


International Case Development

Program – X-Culture (2)

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Team: XYZ

Client (Company): QWERTY

Chosen target country: Indonesia

Product/Service: We have chosen to expand „QWERTY” Bookstores in terms of both the products sold, as well

as the size of each store. We want QWERTY to be part of the community in which it operates by offering

products and hosting events, people and shows that will make people want to come to our store. Also, we want to

incorporate coffee sales into our bookstores to give customers another reason to come see us.

Organization

o Indonesia based QWERTY Bookstores

Product/Service

o Expand and enlargen current QWERTY stores

Make them much more than a bookstore - social clubs

o Expand on the products offered

Key Market Characteristics

o Moderately high income level

o High literacy rate

o Close proximity to Indonesia

Suggested Market

o Singapore

Pro-business market

High economic freedom

Knowledgeable and moderately wealthy citizens

Market Entry Mode

o Joint Venture between QWERTY and local established company

Staffing Strategy

o Combination of local workers from Singapore combined with previous workers from

QWERTY in Indonesia

Marketing Strategy

o Be more than just a bookstore

o Be attractive to local crafters, authors and entertainers who want to share their talents


Final conclusions

• Beside knowledge developed in the US and W-E, alternative definition should also be taken seriously

• Foreign and local trainers&educators should develop a general collective memory

• Mixed approach is becoming eminent important

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17 February 2016

Hvala za vašo pozornost!

Thank you for your attention!

Întrebări şi răspunsuri

József Poór

Professor of Management

Szent István University, Hungary

Dr. JózsefPoór, DSc.,CMC Professor of Management

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