Fall 2012 Air University Comparative Management Student Projects Prof Manzoor Iqbal Awan Japan Russia Pakistan India Samsung Sony KFC McDonald P&G Unilever 1 January 2013

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Projects Compilation

Course Facilitator Prof Manzoor Iqbal Awan, Col (R) Faculty Member and Senior Consultant * USQ (Australia), COMSATS & NUML * Bahria, Air & Preston Universities * University of Lahore * Dual Matrix Inc. &MDi Cell: +92 300 854 3122 Email: [email protected]&[email protected] Profile: www.linkedin.com/in/manzooriqbawan

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CONTENTS AT A GLANCE

Group

Group Composition

Topic for Comparison Pages

1 Compilers’ Note - 3

2 Note from the Course Facilitator

- 4

3 MirzaGhous (Leader) BasharatJamil NajeebUllah

PROCTOR & GAMBLE VS UNILEVER PRESENTATION SLIDES

5-25

26-39

4 SamanNaseem(Leader) Saba Gul Aqsa Shehzadi KaneezAmna

SAMSUNG ELECTRONICS VS HAIER PRESENTATION SLIDES

40-67

68-94

5 Humaila Khan(leader) FaizaJamil NabeelZaman Inam-Ul-Haq

A COMPARISON BETWEEN KFC & MC DONALDS PRESENTATION SLIDES

95-116

117-143

6 SamiaRehman(Leader) Hamza Ashraf Muhammad Ehtasham

JAPAN VS RUSSIA

144-171

7 Talia Waqar (Leader) Baber Ikram IzharAbrar HaseebBharwana HaseebGul

PAKISTAN VS INDIA PRESENTATION SLIDES

172-210

211-240

8 Sidra Talat (Leader) ShiffaZakria Ghulam Mustafa Shahbaz Mughal UmairBasit

COMPARISON BETWEEN SAMSUNG & SONY PRESENTATION SLIDES

241-278

279-295

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Compiler's Note

I feel privileged to work under the supervision of Sir Manzoor Awan. The compilation work which was assigned to me has been completed successfully. It took a lot of hard work & commitment to complete this task. By the time it was completed, I learnt a lot about doing things in order. My first experience has turned out to be a great experience.

As I go back, I remember raising my hand in the class as a volunteer to do the editorial work. I was chosen and assigned to do this task. The compilation work therefore involved making a record of all the groups in class. It was mandatory for all groups to complete their respective project reports and hand those over to me for compilation and amendments. The soft copies of all the reports were sent to me via email by each group leader. I was successful enough to gather all the reports along with the presentation slides. I began compiling them all together in a sequence and finally compiled them in a single word document. The biggest advantage of such a document is the ease of digging out data in an efficient manner, when required.

In the end, I offer my sincere gratitude to Sir Manzoor Awan. Without his guidance and efforts, it would not have been possible. I would also like to thank Samia Rehman, our Class Representative; she has been very supporting and motivating as a Co-Compiler. Hence, as students of (Air University), we seek great opportunities ahead. We are very confident that one day we will rise and become a sense of pride for our belovednation.

Haseeb Gul

BBA-5B

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Teacher’s Note

I have now been associated with the Air University Islamabad Campus for over 5 years, and have come to realize that, like all academic institutions of excellence, Air University strives to provide a conductive environment for intellectual growth aimed at producing future business leaders with ability to think out of the box. Taking full advantage of that and with a strong faith in the abilities and potential of our youth, the students of Bachelors of Business Administration 5th Semester Section B (during Fall 2012 semester) were encouraged to complete challenges projects related to comparative management practices two large entities; either multinational corporations or countries as such. They not only attempted these assignments with fair degree of rigor, producing interesting and relevant project reports, but also successfully conducted valuable discussions in the class as part of our overall learning drive.

One can find many a faults with their project reports. I, however, believe that there is a need to appreciate such first attempts by these budding business professionals in researching and then sharing the fruits of their toil with others on the distinction in management practices in the international arena and the factors underlying these. What is of special significance is the attempted originality of effort/work, and that this could serve as a humble beginning towards attaining greater learning in the future. These reports could also be improved through further study and research by the students that follow. It is with this thought that these write ups are being compiled for appropriate distribution and uploading for digital access.

It will be unfair if the efforts put in by Mian Haseeb Gul and Samia Rahman in completing this compilation assignment are not acknowledged. The final product amply speaks of their hard work and creative talent. I wish the contributing students as well as the compilers success. May Allah Almighty be their guide. Ameen.

Prof Manzoor Iqbal Awan, Col (R) Faculty Member and Senior Consultant * USQ (Australia), COMSATS & NUML * Bahria, Air & Preston Universities * University of Lahore * Dual Matrix Inc. &MDi Cell: +92 300 854 3122 Email: [email protected]&[email protected] Profile: www.linkedin.com/in/manzooriqbawan Islamabad 31st December 2012

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Comparative Management Final Project

Submitted to: Mr. MANZOOR AWAN

Submitted by:

Basharat Jamil (100811), Najeeb Ullah (100875) & Mirza Ghous (100851)

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Table of Contents Proctor and Gamble

Overview to the company

Unilever

Company overview

Vision and Mission of Proctor and Gamble

Mission and vision of Unilever

Organizational Culture of P&G

Analysis of Values & Principles of P & G

Core Values

P&G People

Leadership

Ownership

Integrity

Passion for winning

Trust

Organization Culture of Unilever

Culture’s Dominant Features

Principles of P&G

Principals of Unilever

Code of Business principles

Standard of conduct

Obeying the law

Employees

Consumers

Shareholders

Business partners

Community involvement

Public activities

The environment

Innovation

Competition

Business integrity

Conflicts of interests

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Table of Content (Contd...)

Various Product Segmentation of Proctor and Gamble

Beauty and Grooming

Health Products

Fabric Care

Other Products

Various product segmentation of Unilever

Food brands

Home care brands

Personal care brands

SWOT Analysis of P&G

Strengths

Weaknesses

Opportunities

Threats

Swot analysis of Unilever

Eyes on the Future (P&G)

Shareholders (P&G)

Organizational Structure of P&G

Global Business Units

Market Development Organizations

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Global Business Services

Corporate Functions

Organizational Structure of Unilever

COMPETATOR ANALYSIS PROCTER & GAMBLE AND UNILEVER

Competitor Analysis: P&G

Competitor Analysis: Unilever

Conclusion

Bibliography

Proctor and Gamble

Over view of the company:

Proctor and Gamble was founded by Two brothers in law in 1837 .There Name were William

Proctor and James Gamble. This company is one of the biggest names in consumer goods

products. P&G operates in around 85 countries in all around the globe and also in the market it

has about 300 different brands or product in more than 150 countries. About 50% of company's

profit is derived from in a foreign country .The Trademark of P & G company is moon and star

since 1851 as a symbol of quality to distinguish their products from its competitors.

P&G was headed by family members in the beginning. But in 1930 and 1959, Mr. William

Dupree become its president and chairman respectively. Under him the company become USA’s

Largest package good seller.

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Unilever

Overview of the company:

Unilever was created in 1930 by the merger of British soap maker Lever Brothers and

Dutch margarine producer Margarine Unite, a logical merger as palm oil was a major raw

material for both margarines and soaps and could be imported more efficiently in

larger quantities.

Unilever has been present in the North Africa and Middle East region since 1933, a year which

saw the appointment of the Binzagar family as the company’s agent within Saudi Arabia while in

the same year Unilever also entered the Egyptian market. In 1954 Unilever made its first foray in

the “Maghreb” market with the launch of Omo in Algeria, from France, through a local partner

followed by an entry into Morocco in 1960 and Tunisia in 1961.

In 1992 Unilever came on-shore in the Arabia Peninsula with the setting up of an office in Dubai

and in the same year Lever Egypt was formed as a Joint-Venture with the Fine Foods Company,

a member of the Rachid Group. In 1999 Lever Egypt and Fine Foods Group merged to form

Unilever Egypt.

Vision and Mission of Proctor and Gamble:

VISION of P&G is to become a leading consumer goods company and to improve the lives of

consumers by providing valuable and innovative products. Ten years ago Procter and gamble

started the journey to improve the lives of Pakistani consumers by providing them with world

famous quality brands. P&G want to be an outstanding organization with a passion for winning

that would felt by everyone every day; in the office, in the field everywhere P&G vision is to

lead business growth by proactively identifying opportunities and positively contributing to

volume growth.

We will provide branded products and services of superior quality and value that improve the

lives of the world's consumers. As a result, consumers will reward us with leadership sales,

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profit, and value creation, allowing our people, our shareholders, and the communities in which

we live and work to prosper.

Mission and vision of Unilever:

The four pillars of our vision set out the long term direction for the company – where we want to

go and how we are going to get there:

We work to create a better future every day.

We help people feel good, look good and get more out of life with brands and services that

are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for

the world.

We will develop new ways of doing business that will allow us to double the size of our

company while reducing our environmental impact

Organizational Culture of P&G

Analysis of Values & Principles of P & G:

P&G is for people and the values by which they live. P & G always try to attract and hire the best

workforce in the globe. They try to create there company from inside by various employees

incentives like rewarding and promoting the employees without look upon to difference

unrelated to performance. The always proceed on the confidence that the people working in

Procter and Gamble will forever be there most valuable and important asset.

• Proctor and Gamble respects their employees, customers, and consumers, and take care of

them as they wanted.

• P&G Company has always full confidence on each other goals and capabilities.

• They believe that people work best when there is a foundation of trust.

• P&G always believe that the staff or employees always try to give their best where there is

sense or foundation of trust.

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Core Values:

P&G is its people and the Core Values by which they live.

P&G People:

They attract and recruit the finest people in the world. They build their organization from within,

promoting and rewarding people without regard to any difference unrelated to performance.

They act on the conviction that the men and women of Procter & Gamble will always be their

most important asset.

Leadership:

They are all leaders in their area of responsibility with a deep commitment to deliver leadership

results. They have a clear vision of where they are going. They focus their resources to achieve

leadership objectives and strategies. They develop the capability to deliver their strategies and

eliminate organizational barriers.

Ownership:

They accept personal accountability to meet the business needs, improve their systems and help

others improve their effectiveness. They all act like owners, treating the Company’s assets, as

their own and behaving with the Company’s long-term success in mind.

Integrity:

They always try to do the right thing. They are honest and straightforward with each other. They

operate within the letter and spirit of the law. They uphold the values and principles of P&G in

every action and decision. They are data based and intellectually honest in advocating proposals,

including recognizing risks.

Passion for winning:

They are determined to be the best at doing what matters most. They have a healthy

dissatisfaction with the status quo. They have a compelling desire to improve and to win in the

marketplace.

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Trust:

They respect their P&G colleagues, customers, and consumers and treat them, as they want to be

treated. They have confidence in each other’s capabilities and intentions. They believe that

people work best when there is a foundation of trust.

Organization Culture of Unilever: All Unilever employees are expected to avoid personal activities and financial interests which

could conflict with their responsibilities to the company. Unilever employees must not seek gain

for themselves or others through misuse of their positions.

Day-to-day responsibility is delegated to the senior management of the regions and operating

companies. They are responsible for implementing these principles, if necessary through more

detailed guidance tailored to local needs. Assurance of compliance is given and monitored each

year. Compliance with the Code is subject to review by the Board supported by the Audit

Committee of the Board and the Corporate Risk Committee. Any breaches of the Code are

reported in accordance with the procedures specified by the Joint Secretaries. The Board

of Unilever never criticizes management for any loss of business resulting from adherence to

these principles and other mandatory policies and instructions. The Board of Unilever expects

employees to bring to their attention, or to that of senior management, any breach or

suspected breach of these principles. Provision is made for employees to be able to report in

confidence and no employee will suffer as a consequence of doing so

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Principles of P&G

These are the principles and supporting behaviors, which flow from their Purpose and Core

Values.

They show respect for all individuals.

The interests of the Company and the individual are inseparable.

They are strategically focused in their work.

Innovation is the cornerstone of their success.

They are externally focused.

They value personal mastery.

They seek to be the best.

Mutual interdependency is a way of life.

Principals of Unilever:

Our code of business principles describes the operational standards that everyone at Unilever

follows, wherever they are in the world. It also supports our approach to governance and

corporate responsibility.

Code of conduct:

We conduct our operations with honesty, integrity and openness, and with respect for the human

rights and interests of our employees. We shall similarly respect the legitimate interests of those

with whom we have relationships.

Obeying the law:

Unilever companies and our employees are required to comply with the laws and regulations of

the countries in which we operate.

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Employees:

Unilever is committed to diversity in a working environment where there is mutual trust and

respect and where everyone feels responsible for the performance and reputation of our

company. We will recruit, employ and promote employees on the sole basis of the qualifications

and abilities needed for the work to be performed.

Consumers:

Unilever is committed to providing branded products and services which consistently offer value

in terms of price and quality, and which are safe for their intended use. Products and services

will be accurately and properly labeled, advertised and communicated.

Shareholders:

Unilever will conduct its operations in accordance with internationally accepted principles of

good corporate governance. We will provide timely, regular and reliable information on our

activities, structure, financial situation and performance to all shareholders.

Business partners:

Unilever is committed to establishing mutually beneficial relations with our suppliers, customers

and business partners. In our business dealings we expect our partners to adhere to business

principles consistent with our own.

Community involvement:

Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our

responsibilities to the societies and communities in which we operate.

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Public activities:

Unilever companies are encouraged to promote and defend their legitimate business interests.

Unilever will co-operate with governments and other organizations, both directly and through

bodies such as trade associations, in the development of proposed legislation and other

regulations which may affect legitimate business interests.

Environment:

Unilever is committed to making continuous improvements in the management of our

environmental impact and to the longer-term goal of developing a sustainable business. Unilever

will work in partnership with others to promote environmental care, increase understanding of

environmental issues and disseminate good practice.

Innovation:

In our scientific innovation to meet consumer needs we will respect the concerns of our

consumers and of society. We will work on the basis of sound science, applying rigorous

standards of product safety.

Competition:

Unilever believes in vigorous yet fair competition and supports the development of appropriate

competition laws. Unilever companies and employees will conduct their operations in

accordance with the principles of fair competition and all applicable regulations.

Business integrity:

Unilever does not give or receive, whether directly or indirectly, bribes or other improper

advantages for business or financial gain. No employee may offer, give or receive any gift or

payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe

must be rejected immediately and reported to management.

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Conflicts of interests:

All Unilever employees are expected to avoid personal activities and financial interests which

could conflict with their responsibilities to the company. Unilever employees must not seek gain

for themselves or others through misuse of their positions.

Corporate Social Responsibilities of P&G:

At P&G, we believe in giving back to the communities we live in. Corporate social responsibility

is close to P&G’s heart. P&G has developed and runs several initiatives and programs in line

with the global cause Live, Learn and Thrive, aimed at helping improve lives of children in need.

Various Products Segmentation of Proctor and Gamble:

Beauty and Grooming:

Soaps = Pears, Camay.

Perfumes and Deodorant = Rexene, Gucci Fragrance, La-Costa.

Shampoos = Pantene, Rejoice, Head & Shoulders etc.

Beauty Products = Olay, Old spice.

Health Products:

Oral B, Crest, Vicks.

Fabric Care:

Tide, Arial, Side Bar

Other Products:

Food = Crisco, Folgers, Pringles etc.

Duracell.

Water purifier.

Mach.

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Various product segmentation of Unilever

Food brands:

Badami, Blue Band, Brooke Bond A1, Brooke Bond Supreme, Cornetto, Energile

Fruttare, Knorr, Lipton, Magnum, Pearl Dust , Rafhan, Unilever

Wall's Desserts, Wall's Heartbrand, Wall's Kid's Range

Home care brands:

Comfort, Domex Toilet Expert – Kills All Sickness Causing Germs, Rin

Sunlight, Surf Excel, Vim.

Personal care brands:

Clear, Close Up, Dove, Fair & Lovely, Lifebuoy shampoo, Lifebuoy soap, Lux, Pond's, Rexona,

Sunsilk, Vaseline.

SWOT Analysis of P&G

Strengths:

The main Strength of P&G is there working on large level. It is a one of the biggest leader for

different product categories like home products, fabric, baby, beauty products, health

products and personal care items in most of the countries of world.

The second significant strong point of P&G is there famous Brand name along with

convenient low pricing policy of commodities.

Gross Margin 15 Times the Industry Average.

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One of the best marketers in the world.

Diversified brand portfolio: more than 300 brands with more than 79 billion in Revenue.

P&G has their products in almost all shops so it is very easy to calculable to all type of

customer whether they are rich or not.

Product innovation.

Talented management

P&G invests large amount of money in their research and development. About $1.8 billion is

invested by P&G for getting better and introducing new products in the market.

Tightly integrated with the largest retailers in the US and around the world.

Distribution channels all over the world.

Weaknesses:

Many of the top brands of P&G are losing their market share rapidly due to increase in

competition by coming of Unilever, Johnson and Johnson etc.

P&G do not create or offer any personal brand products for their retailers and customers and

thus missing an opportunity of widening there product.

Expansion for brands is limited.

Lagging behind in online media presence & leadership.

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Opportunities:

An opportunity for P&G is health and beauty products for men. With the acquisition of

Gillette, the company now has several growth opportunities in this market segment.

As P&G has lot of monetary resources which can be invested in other market segments

like electronics, medicine etc.

P&G has also big opportunity to increase their sales using the online social networks and

internet marketing like advertising on Facebook, My space, Yahoo etc.

Threats:

Due to emergence of Kimberly Clark, Unilever and other big companies there is serious

competition for P&G in Fast moving Good market.

The competitors of P&G are using different type of advertising and marketing strategies

due to which competitors’ products are diverse day by day.

In today’s market there are many P&G products substitute or replacement are available at

cheaper price.

Due to recession in past 2 to 3 years the customer’s purchasing power has decreased in all

countries. And also the prices of raw materials also increase due to increase in petrol and

diesel price.

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Swot Analysis of Unilever

STRENGTHS:

•Strong company image

•Strong brand portfolio

•Success of the slogan

•Quantity & variety

•Effective & attractive packaging

•High quality man power

•Solid base of the company

•Innovative aspects

•Corporate behavior

•Health & personal care

WEAKNESSES:

•High prices of products

•Substitutes products

•Policy of spending for the

•social responsibility

•Lack of control in the market

•Dual leadership

•Decrease in revenues

•Reduced spending for research &

development

OPPORTUNITIES:

•Changing life style of people

•New markets

•Increase the volume of production

•Focus on R&D

•Low income consumers

•Help in improving people diet & daily lives

THREATS:

•Competitors (P&G,)

•Political effects

•Legislative effect

•Environmental effect

•Economic crises

•Obstacle faced

Eyes on the Future (P&G):

P&G's growth achievement include

Doubling unit volume every year.

Achieving share growth in the majority of its categories.

Delivering total shareholder return that ranks P&G over time among the top third of its peer

group.

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Most importantly, P&G's goal is to continue to provide products of superior quality and value

to the world's consumers. As a result, P&G's business, people, shareholders and the

communities in which they live and work will prosper.

Shareholders (P&G):

Shareholders are important stakeholders at P&G. P&G has 1.3 billion shares of stocks

outstanding. Large institutions and mutual funds, retirement programs, individual investors and

employees throughout the world own these shares. Individuals hold approximately 50 percent of

their shares, with nearly 20 percent held by employees and retirees. They work to increase the

value of P&G stock for all their shareholders in a variety of ways, including growing the

company’s sales and earnings each year. They measure for tracking their success for

shareholders is total shareholder Return (TSR).

Organizational Structure of P&G:

Four pillarsform the heart of P&G’s organizational structure.

Global Business Units.

Market Development Organizations.

Global Business Services.

Corporate Functions.

Global Business Units:

It focuses solely on consumers, brands and competitors around the world. They are responsible

for the innovation pipeline, profitability and shareholder returns from their businesses.

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Market Development Organizations:

Market Development Organizations are charged with knowing consumers and retailers in each

market where P&G competes and integrating the innovations flowing from the GBUs into

business plans that work in each country.

Global Business Services:

It utilizes P&G talent and expert partners to provide best-in-class business support services at the

lowest possible costs to leverage P&G’s scale for a winning advantage.

Corporate Functions:

Ensure ongoing functional innovation and capability improvement. Through this study, we have

looked into the P&G’s organization matrix structure and how does its structure facilitate the

achievement of its goals and to some extent, this structure is effective. However, in a context of

complex, rapidly changing and highly competitive global environments, an organization has to

adapt quickly in order to take advantage of opportunities that arise anywhere in the world. And

the need for rapid innovation cannot be ignored as well. So turning to a boundary less structure

which has higher environmental responsiveness may be a better option for P&G.

Organizational Structure of Unilever:

The formal arrangements of job within an organization.

The structure that can be shown visually in organizational chart.

Managers are involved in organizational design when they create or change structure.

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COMPETITOR ANALYSIS PROCTER & GAMBLE AND UNILEVER

Competitor Analysis: P&G

P&G’s competitive advantages arise from several key factors, one of which is innovation.

Spending $2B annually on R&D and deploying approximately 7,500 researchers in technical

centers around the world, P&G is a leader in innovation. They have 29,000 patents, and over the

past eight years, have introduced the #1 or #2 new non-food products in the US. Key to their

success is knowledge sharing and cross-borders replication of innovations, reducing costs and

quickly expanding the company knowledge and line offerings. Another factor contributing to

their competitive advantage is their large scale operations and go-to-market capabilities that

provide first mover advantage and limit the ability of competitor’s to copy ideas and replicate

them.

Additionally, economies of scale and scope in purchasing, distribution, business services and

merchandising provide financial and trade advantages. Lastly, P&G is well known for its brand

management and brand leadership capabilities, which are significant advantages for customer

loyalty and market penetration. Supplementing their innovations, facilitating their rapid go-to-

market capabilities, as well as their customer and partner management is P&G's significant use

of IT and tracking systems, including CRM, EDI, and RFID, that improve R&D speed and

capabilities, communications, information tracking and sharing, and inventory management. In

order to sustain their competitive advantage, P&G must continue to utilize their acknowledged

strengths, as well as continue to exploit international growth, especially in emerging markets, as

P&G is currently overexposed in the US and Western Europe.

P&G is spending millions of dollars in R&D worldwide, while they have R&D cells in the

countries in which the operations of business are going on. These R&D cells are responsible to

identify the technological breakthrough, taking place in these countries. They are mostly

customer oriented for which they test the products in the market and then introduce it to the

whole target market.

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Competitor Analysis: Unilever

Unilever's competitive advantages arise from strong brand recognition, such as Dove and Bird's

Eye, strong R&D initiatives for line expansion, and leading brands in personal care, deodorant

and personal wash. Their renewed focus on strong line expansion (especially after reducing their

number of brands from 1600 products to approximately 400 in 2003), and alliances with strong

corporate partners such as Pepsi are also advantages. In order to sustain their competitive

advantage, Unilever has several issues to resolve, and earnings reported in two venues, Euro and

Dollars. This complexity increased costs, and impacted opportunities for efficiency economies of

scale and scope, not to mention the potential concern in transparency in reporting.

For future sustainability, Unilever needs to continue their operational enhancements, including

additional outsourcing when needed, add line extensions with core brands while guarding against

negative impacts should an extension fail, look to mergers and acquisitions to support their

growth and development, protect against exchange rate fluctuations, and continue to expand

globally.

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Conclusion

This comparison clearly shows why P&G is a leader in the industry. Unilever can learn from

P&G and further develop itself as a leader. There is considerable opportunity for Unilever to

strengthen its profitability and sustainability; however it will require strong discipline and careful

analysis in terms of pursing appropriate acquisitions and divestitures, cost reduction programs,

product and brand differentiation initiatives, and alignment of strategies.

Furthermore, we conclude that a strong and appropriate mission goal promotes the development

of the business model which is mainly focused on bottom-line successes such as achieving

continuing profits, market growth in shares, defense of industry leadership positioning and

employee welfare development. By reviewing the P&G company’s Mission Statement and there

Strategic Management process we conclude that P&G is one of the leader in FMCG’s industry

and it maintain its success by widening its product worldwide. Its Mission Statement shows that

all employees, HR Department and Customers are most important assets for P&G Company. By

its strategic management strategies we conclude that P&G has healthy relationships with

government, retailer customers and other authorities. We also conclude that from time to time a

P&G company’s vision and mission statement require being check and changed in accordance in

the changing environment and changing conditions of the market and consumer taste so P&G

can continue to stay relevant and successful.

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Bibliography

www.google.com

www.unilever.com

www.p&g.com

www.wikipedia.com

www.ask.com

www.uniliver.com.pk

www.p&g.com.pk

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SAMSUNG ELECTRONIC’S vs HAIER ELECTRONIC’S

Comparative Management

Final Project

Submitted to: Mr. MANZOOR AWAN

Submitted by:

SAMAN NASIM: 100865 SABA GUL: 100857

KANEEZ AMNA: 100869 AQSA SHEHZADI: 100827

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TABLE OF CONTENTS

HISTORY OF SAMSUNG

HISTORY OF HAIER

ORGANIZATIONAL CHART OF SAMSUNG

ORGANIZATIONAL CHART OF HAIER

CULTURE OF SAMSUNG

CULTURE OF HAIER

SAMSUNG’S GLOBEL CODE OF CONDUCT

HAIER’S GLOBEL CODE OF CONDUCT

CORPORARE SOCIAL RESPONSIBILITY OF SAMSUNG

CORPORARE SOCIAL RESPONSIBILITY OF HAIER

SAMSUNG POLITICAL ENVIRONMENT

HAIER’S POLITICAL ENVIRONMENT

ECONOMIC ENVIRONMENT OF SAMSUNG

ECONOMIC ENVIRONMENT OF HAIER

SAMSUNG TECNOLOGICAL ENVIRONMENT

HAIER TECNOLOGICAL ENVIRONMENT

SWOT ANALYSIS OF SAMSUNG

SWOT ANALYSIS OF HAIER

COMPARITIVE ADVANTAGE OF SAMSUNG

COMPARITIVE ADVANTAGE OF HAIER

SAMSUNG’S CORPORATE GOVERNE’S

HAIER’S CORPORATE GOVERNE’S

CONCLUSION

BIBLIOGRAPHY

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WORK DISTRIBUTION

MEMBERS WORK CONTRIBUTION SAMAN NASIM • Prepared Samsung report

• Compile and Edit project • Edit presentation

100% 100%

SABA GUL • Presentation • Prepared Haier report

80% 33.33%

AQSA SHEHZADI • Prepared Haier report • Presentation

33.33% 20%

KANEEZ AMNA • Prepared Haier report 33.33%

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HISTORY

Samsung:

Samsung group is South Korean multinational conglomerate company, headquartered in Samsung Town, Seoul, founded in 1938.Oh-Hyun Kwon is CEO and Vice Chairman of Samsung. It has more than 196 subsidiaries in world. There are numerous industrial subsidiaries of Samsung which includes following:

Samsung Electronics

Samsung Heavy Industry (shipbuilder)

Samsung Engineering and Samsung C&T (construction companies)

Samsung Techwin (weapons industry)

Samsung Life insurance

Samsung Ever land (the oldest theme park in South Korea)

Samsung produces a fifth of South Korea’s total exports. The company has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "Miracle on the Han River”. Samsung started to rise as an international corporation in the 1990s.Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chipmaker after Intel. It comprises around 80 companies.

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Samsung Electronics:

Samsung Electric Industries was established as a subsidiary of Samsung Group in 1969 in Suwon, South Korea. It is a multinational electronics and information technology company. It manufactures following products:

Air conditioners

Computer

Digital televisions

Liquid crystals displays

Mobile phones

Monitors

Refrigerators

Semiconductors

Telecoms Networking Equipment

It is world largest mobile phone makers; with a global market share of 25.4%.It is also world’s second largest semiconductors maker. Samsung electronics has sales networks in 31 countries with 221000 employees. Samsung established a prominent position in Tablet computer maker. Samsung Group established another subsidiary, Samsung-NEC, jointly with Japan's NEC

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Corporation to manufacture home appliances and audiovisual devices. By 1981, Samsung had manufactured over 10 million black-and-white televisions. In 1983 Samsung’s founder declared that Samsung intended to become a DRAM (dynamic random access memory) vendor. In 1988, Samsung Electric Industries merged with Samsung Semiconductor & Communications to form Samsung Electronics. In 1981 it launched its first mobile phone. Samsung’s mobile phone division also struggled with poor quality and inferior products until the mid-1990s.In 2009, Samsung achieved revenues of US$117.4 billion, overtaking Hewlett-Packard to become the world's largest technology company measured by sales. In 2000s its net earnings was higher than 5%,this was at a time when 16 out of the 30 top South Korean companies ceased operating in the wake of the unprecedented crisis. Now in first quarter of 2012, Samsung became the highest-selling mobile phone company.

The company focuses on four areas: digital media, semiconductor, telecommunication network, and LCD digital appliances.

LCD and LED panels:

In 2004 Samsung was world’s largest manufacturer of OLEDs, with 40% market shares but in 2010 it acquires 98% shares of global market.

Semiconductors:

Samsung Electronics has been the world's-largest memory chip maker since 1993.It succeeded in 2010 in mass-producing 30 nm-class DRAMs and 20 nm-class NAND flashes. Market researchers predicted that Samsung will become world’s biggest semiconductor chips suppliers by 2014 when it surpasses Intel. Samsung’s compound annual growth rate in semiconductor revenues has been 13.5 percent, compared with 3.4 percent for Intel.

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Televisions:

Samsung sold around 31 million flat-panel televisions. In March 2010 it launched its first full HD 3D LED television. Samsung sold more than one million 3D televisions within 6 months of its launch. In 2007 Samsung introduced the Internet TV.

HAIER ELECTRONICS:

Haier is the world’s no. 1 brand in home Appliances. Zhang Ruimin is the founder of the Haier. It is world’s no.1 brand in Refrigeration and home laundry appliances. In 2004 Haier Company initiated its commercial operations. Haier provides innovative products. They design products according to customer’s need. Haier also introduced BMR technology. Haier Electronics Group Co., Ltd. is an investment holding company. Through its subsidiaries, the Company is engaged in the manufacture and sale of washing machines and water heaters, as well as the provision of integrated channel services, including the provision of logistics services and distribution of home appliances and other products. The company operates in three segments: washing machine business segment, which manufactures and sells washing machines; water heater business segment, which manufactures and sells water heaters, and integrated channel services segment, which provides logistics, after-sale and other value-added consumer services, as well as sells and distributes home appliances and other products

Haier has 29 manufacturing bases and 8 research and development centers. It has 60000 employees. In last year company global market share was 6.1% and it increases day by day. Haier has also delivery centers in all countries and cities. Haier quickly meet customer’s need/demand and staff is closely related to market target. Haier also sold appliances of other international brand such as HP and GE.

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Products:

Deep freezers

Juicer & blenders

Refrigerator

TV

Toasters/oven

Sandwich makers

Washing machines/dryers

Water dispenser

Water heaters

Iron etc.

Personal Views:

Samsung is large and diverse MNC than Haier. These companies are competing only in the category of home appliances. Samsung is South Korean while Haier is Chinese MNC. Many people have this concept about Chinese companies that they produce cheap and duplicate low

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quality products. Beside this Haier is gaining a good position in home appliances. If Haier wants to become a perfect competitor of Samsung, it must introduced mobile phones and telecom networking equipments.

ORGANIZATIONAL CHART & STRUCTURE

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Organizational Structure

Haier’s Organizational Chart & Structure

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CULTURE

Samsung’s Culture:

Vision and Mission Statement:

Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people’s lives, and continue to make Samsung a digital leader.

Values of Samsung:

We believe that living by strong values is the key to good business. The core values at Samsung are followings:

People:

Samsung gives a wealth of opportunities to its people to reach their full potential. Because they believe that a company is its people.

Excellence:

Everything done at Samsung is driven by an unyielding passion for excellence—and an unfaltering commitment to develop the best products and services on the market.

Change:

In today’s fast-paced global economy, change is constant and innovation is critical to a company’s survival. As Samsung have done for 70 years, they set their sights on the future, anticipating market needs and demands so they can steer their company toward long-term success.

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Integrity:

Operating in an ethical way is the foundation of business. Everything they do is guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-prosperity:

A business cannot be successful unless it creates prosperity and opportunity for others. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where they operate around the globe.

Vision and Mission:

The vision and mission of Haier is to become the industrial leader and the most competitive and consumer preferred home appliance solution provider. Haier’s culture is the core of innovation. Haier gradually developed unique cultural system. In Haier’s culture, active participation is most significance feature. The company’s goal is to become world famous brand of China. Haier develop their employees to achieve its world famous brand goals.

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Values of Haier

Haier has following core values within their company:

Customer oriented:

Haier constantly focusing on a customer in all areas of their business philosophygoals and visions, customers support, marketing strategies and their website.

Development focus:

It includes entrepreneurial spirit and creativity regarding to their businesses.

Interest driven:

Haier give Guarantee for the Sustainable Growth. It provides resource and system support for every employee to be enterprising and innovative.

Personal Views:

If we look at the mission and vision statement of both MNCs, Samsung has more catchy and attractive statement as compare to Haier.

SAMSUNG’s vision and mission HAIER’s vision and mission Develop innovative technologies &

efficient processes Want to become industrial leader

It’s not new about Haier that they want to become industrial leader. Each and every company wants to become an industrial leader. To attract more customers Haier has to modify its Mission

SAMSUNG’s Values HAIER’s Values It talk about:

Prosperity and opportunity for others Standards of business Global economy Unyielding passion for excellence Potential and wealth of employees

It talk about the following things: Focus on customers Entrepreneurial spirit & creativity of

business Sustainability growth

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& Vision statement. Today’s is the era of advancement in technologies and efficiency of processes, so customers get more attracted towards the statements in which innovative words are used like efficiency and technology.

Differences in Values of Samsung and Haier:

Samsung takes the wealth and satisfaction of its employees as a first and most important element. They have more emphasis on employee’s full potential, while Haier has more focus on its customers as compare to its employees.

GLOBAL CODE OF CONDUCT

Global Code of Conduct at Samsung:

Samsung follows 5 principles in their Global Code of Conduct.

Principle 1:

Samsung comply with all law and ethical standards.

They respect the dignity and diversity of individuals.

They compete in accordance with the law and business ethics.

They maintain transparency of accounts with accurate recording of transactions.

Samsung do not get involved in politics and maintain neutrality.

They protect information on individuals and business partners.

Principle 2:

Samsung maintain a clean organizational culture.

They make a strict distinction between public and private affairs in duties.

They protect and respect the intellectual properties of the company and others.

Samsung create a sound organizational atmosphere.

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Principle 3:

Samsung respect customers, shareholders and employees.

They put priority on customer satisfaction in management activities.

They pursue management focused on shareholder value.

Samsung endeavor to improve their employees’ quality of life.

Principle 4:

They care for the environment, health, and safety.

Samsung pursue environment friendly management.

They value the health and safety of human begins.

Principle 5:

They are a socially responsible corporate citizen.

Samsung sincerely execute basic responsibilities as a corporate citizen.

They respect the social and cultural values of local communities and practice prosperous co-existence.

They build relationships of co-existence and co-prosperity with our business partners.

Global Code of Conduct at Haier:

Employment and work place

Equal employment opportunity:

Haier believe that employment should be based on an individual’s ability, personal characteristics and beliefs. They provide working environment free of discrimination, harassment religious political disability.

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Forced labor:

They don’t use any prison, slave or forced labor in manufacturing of their product.

Child labor:

Haier don’t use child labor under the age of 16.or the age at which school is compulsory.

Hours of labor:

They maintain reasonable employee work hours. Overtime allowed accordance to local law.

Compensation:

They fairly compensate their employees by including minimum wage laws, or the prevailing local industry wage, whichever is higher.

Health and Safety:

They maintain a safe, clean and healthy environment. They provide medical facilities, clean restrooms, and ventilated workplace. Haier also provide housing for their employees.

Concern for the Environment

They believe that their duty is to protect the environment so they follow environmental laws and regulations.

Ethical Business Practices

Sensitive Transactions

Haier entertain their customers with the proper and save procedure of our company. They prohibit employees from receiving, directly or indirectly any benefit from the other persons

Accounting Controls, Procedures and Records

They accurately keep books and records of all transactions. They ensure that transactions with proper management approval are accounted in their books.

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Use and Disclosure of Inside Information

They strictly prohibit disclosed information of company with inside and outside of the company

Fraud and Similar Irregularities

They strictly prohibit unlawful practices. That affects their customers and suppliers, as well as the Company. They follow certain procedures to investigate unlawful activity.

Monitoring and Compliance

They have the third-party monitoring program to monitor Code of Conduct. Monitoring activities include factory inspection, review of books and records relating to employment matters and individuals interviews with employees.

CSR (CORPORATE SOCIALRESPONSIBILITY)

Samsung’s CSR:

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In January 2009 the CSR Liaison Office was created which reports directly to the CEO. Executives of CSR (Corporate Social Responsibility) hold discussion on how to address and resolve major CSR issues and questions posed by external stakeholders. The recent rise in CSR related inquiries from external stakeholders has increased the need for timely and transparent information disclosure. Samsung Electronics set up a new external request handling system to facilitate communication with stakeholders.

In 2010, they received 96 requests from external stakeholders. Samsung effectively responded to these inquiries through cooperation with the HR, environment and IR departments. Now they are expanding the scope of issues covered in the Sustainability Report and information disclosure via the Web to communicate CSR issues more effectively.

Haier’s CSR:

Haier Group launched activities of Green Sail in environment to protect sustainable development of the global industries. Haier provides environment-friendly product for the consumer in 160 countries. Haier has held a series of public activities e.g. the launch of the “Earth Hour”. In America, Haier was awarded with “Community Contribution Award”. Haier helped to fight against the nature disaster with the people in Cuba, Indonesia, and Malaysia and so on. Haier also launched activities of Green Sail in Sports. In 2008, the group became the first official appliance sponsor of the 2008 Beijing Olympic Games. Haier people and the whole society shall become one. Haier group will to be true forever. Haier Group launched activities of Green Sail in charities to share the care and devotion with the whole world.

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In China, Haier launched activities to deliver needed materials to disaster stricken areas. The funds and appliances that Haier has donated to the public have reached to ￥500 million. In America, Haier was awarded with “Community Contribution Award”.

In Australia, Haier funded the association of Breast Cancer in Sydney. Besides this, Haier helped to fight against the nature disaster with the people in Cuba, Indonesia, and Malaysia and so on.

Haier Group launched activities of Green Sail in education to satisfy Teenager’s thirst for knowledge. Haier started to participate in the Project Hope. At the end of 2011, the number of the Hope Project School was up to 145.In 2010; it held the activity of Haier Hope Project School coming into Expo, which shows Haier’s devotion to the society.

Personal Views:

Both MNCs are environmental friendly. They take care of environment and wealth of peoples.

SAMSUNG has CSR Liaison Office which hears environmental issues and reports directly to the CEO.

HAIER launched the activities of Green Sail to protect the development of global industries.

SAMSUNG want to protect environment and health of people by introducing environment-friendly products, while HAIER wants to protect global industries by giving-environment friendly products. Both provide friendly products for but for different purposes. I think that SAMSUNG is more effective in CSR because they are more conscious about health of people.

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POLITICAL ENVIRONMENT

Samsung’s Political Environment:

There is no special political influence from the Government on the company. But as a foreign company to the United States, Samsung is obliged to function under standard set of principles for foreign companies in the US. This includes tax, regulated governance and integrated management to manufacture their products according to the taste of the United States customers.

Haier’s Political Environment:

In early 1999, Haier thought about launching its American entry. Clinton government encourages or invites the China investment. Furthermore South Caroline provides a good business environment to Haier such as low price for land and made many favorite terms and regulation to allure foreign capital. The most impressive policy was to offer a preferential tax for foreign companies. But there were also some restrictions. Their production as well as their product should be environmental friendly and energy saving. Europe is a common market and shares same or similar set of values and political systems. It is fair to say that Europe is a highly homogenous market. Europe has enjoyed security and political stability for a very long time, since the end of The Second World War.

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ECONOMIC ENVIRONMENT

Samsung’s Economic Environment:

In 2008 Samsung earned 19.2 billion US dollars. There was an increase of 7 billion US dollars when compared to the 12.9 billion net profits of 2007. This creates a huge financial gap between Samsung and its rival companies. This has given them a competitive edge over their company in terms of publicity, research, promotion and advertisement.

The CEO, Mr. Lee, stated that “satisfaction is not a guarantee; it should be given to the customer”. This is one of the ways the company uses to encourage sales and promote brand royalty. Samsung has a total asset worth 302.9 billion in US dollars across the globe. Globally, Samsung is financially stable. The biggest threat was the recent global recession which threatened sales in US. But, with customers going back to market, there is a dramatic increase in sales once more.

Haier’s Economic Environment:

Powered by the sales of its refrigerators and washing machines, Haier Appliances (India) Pvt Ltd, expects to overtake in the first six months of 2011. The company, which claims to have outpaced the growth of the white goods industry, however, expects the growth rate to moderate going forward though it would still be far higher than its competitors. Speaking to Business Line, Mr. Eric Braganza, President, Haier India, said that while the company made around 5 lack refrigerators during 2010, in the current year (2011) this would nearly double to 9.2 to 9.3 lack units. During 2012, he seemed confident of achieving a production of 1.5 million refrigerators. Similarly, in the case of washing machines, he expected production to touch one lack units, from around 30,000 units during the current calendar year.

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TECHNOLOGICAL ENVIRONMENT

Samsung’s Technological Environment:

With new innovative products, Samsung has won the hearts of their customers. They provide the best, sophisticated and cutting edge innovative technological products to their customer. Samsung has developed and edged over their competitors with much investment in research and technological advancement.

Haier’s Technological environment:

Honeywell and Haier will work collaboratively on new technology that will make household appliances, intelligent home systems, residential heating, building automation, and mass transit more efficient and cleaner.

Shane Tedjarati, CEO of Honeywell China and India said that, "More than 50% of our product portfolio is related to energy and energy efficiency. We believe we can apply our expertise in energy-efficiency, intelligent buildings systems, and automation and controls to help Haier manufacture products that will benefit both their customers and the environment.”

Personal Views:

Both MNCs have no special issues with Political and Technological environment. But if we talk about Economic environment SAMSUNG has strong and better economy than HAIER. Because South Korea is more developed as compare to China.

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SWOT ANALYSIS

Strengths of Samsung and Haier:

SAMSUNG

Well diversified and differentiated products

Design with an attracting styling that interests customers

Continuous growth of high market shares

Brand value through multiple sponsorship

HAIER

High end products are well accepted Good market share in western India Strong presence in home appliances

segment Big distributors are stocking many of

Haier’s product

►9.2: Weaknesses of Samsung and Haier:

SAMSUNG

Focus on mass market instead of niche market

High investment on research and development

Increasing competition

HAIER

Very weak distribution network in central India

Weak service agent network Weak logistics as a result accumulation

of trade stocks and aging stocks Sales seasonality in specific segment

hindering growth.

Opportunities of Samsung and Haier:

SAMSUNG

Increasing on electronics consumer market

Strong customer demand for innovative products

HAIER

North-east a potential market is still largely untapped

Mobiles and cellular phone market offers new growth opportunities

SPIN(Situation, Problem, Implication,

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Need) selling strategy for HEC’s Consumer electronics segment is booming and set to grow at 14% CAGR, Haier’s product offerings catering to this segment are limited

Small appliance market set to grow Tie up with big retailers will help in

growth High disposable income and higher

number of Nuclear Families

Threats of Samsung and Haier:

SAMSUNG

Low cost Chinese competitors New nanotechnology may replace

Samsung’s technology

HAIER

Medical Freezers are not selling. Product portfolio is weak Overall weak distribution network

compared to competitors Only selected products are selling from

the entire Product Portfolio

Personal Views:

As Haier is a small MNC than Samsung so it has more opportunities and threats. Major strength of Samsung is diversified, differentiated and stylish products, while Haier has its major strength in home appliances. Nanotechnology is a big threat for Samsung while Haier has threats about its product line and weak distribution channels.

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COMPETITIVE ADVANTAGE

Samsung’s Competitive Advantage

Samsung has following competitive advantage:

It is technologically driven niche products.

It has strong infrastructure.

Samsung has wide range of product line.

It has high brand value.

Samsung has attractive pay, bonuses and incentives.

It has higher yield than competitors.

It has higher economic scale and economic scope.

It is financially strong.

Haier’s Competitive Advantage:

Haier has following competitive advantage:

Haier is recognized as a worldwide brand. On January 31, 2004, the firm ranked 95th after such names as Coca-Cola, McDonald’s, and Nokia, which were the top three on the World Brand Laboratory’s list of 100 most recognizable brands.

Haier was the only Chinese brand on the list. According to an October 2003 article in the Harvard Business Review, Haier is one of the five Chinese National Brands to watch.

As one of China’s fastest-growing companies, Haier Group fits a 1999 Gallup survey profile for a successful company. Customer service, product quality, operating efficiency, innovation, and speed to market are among the top seven factors for success.

Haier excels in all these areas to achieve success; the company developed its corporate culture, business strategy, management-control system, which enforces firm work rules and discipline.

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CORPORATE GOVERNESS

Samsung’s Corporate Governess

At Samsung Board of Directors is the corporation highest decision-making body. They are assigned the oversight and fiduciary responsibilities under the Korean Commerce Act and the Samsung Electronics Articles of incorporation. Qualified shareholders can submit proposals to the company through BOD, which then presents them on the agenda at the General Shareholders Meeting for consideration and approval. The outside Directors recommendation committee selects the experience candidates and then submits their final candidates for the approval of shareholders at the general shareholders meeting.

Haier’s Corporate Governess:

The BOD at Haier recognizes that sound corporate practices are crucial to the efficient operations of the Company and its subsidiaries. In this regard, the Board attaches great priority to reinforce the Company’s Corporate Governess standards with emphasis on transparency, accountability and independence in order to enhance long-term share-holders value.

The Board has established four committees to oversee the specifics aspects of Company’s affair, which includes:

Audit Committee:

They ensure the objectivity and credibility of financial reporting.

Remuneration Committee:

They make recommendations to the Board on policy and structure of all remuneration of Directors and Management.

Nomination Committee:

This committee is responsible for formulating nomination policy and making recommendations to the Board on nomination and appointment of Directors and Board succession. It develops selection procedures for candidates.

Strategic Committee:

Its purpose is to prepare recommendations for the Board in fulfilling its responsibilities.

These committees regularly reports to the Board.

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12: CONCLUSION

Samsung is the world largest mobile phone company. It has 19.9% market shares in smart-phones. Samsung has its major competition with Apple.

While the Haier is world’s number one company in the category of home-appliances.

Samsung has wide range of products, while Haier has limited product line.

Samsung has 221000 employees, while Haier has just 60000 employees.

Samsung is largest multinational than Haier.

Samsung is earning lot of its profit from mobile phones while Haier is not offering such product.

Following data shows the progress and position of both companies.

SAMSUNG ELECTRONICS HAIER ELECTRONICS Refrigerator appliances= 13.5% Smart phones= 19.9% Laptops = 6.3% Washing machines = 9.2% Printers= 17.2% TV= 22.2%

Refrigerator appliances= 16.5% Freezers= 16.8% Home laundry= 10.9% Electric-wine coolers= 16.1%

Both companies are working side by side. If Samsung is best in Mobile phones than Haier is best in Home appliances.

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13: BIBLIOGRAPHY

www.google.com

www haier.com

Wikipedia

www.Samsung.com

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A comparison between McDonald’s and KFC

Comparative Management Final Project

Submitted to: Sir Manzoor Awan

Submitted by: Humaila Khan,Faiza Jamil, Nabeel Zaman, Inam-ul-Haq

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TABLE OF CONTENTS

Contents Page No. MC DONALDS, A BRIEF INTRODUCTION MC DONALD’S VALUES FOCUS AREAS ENVIRONMENTAL RESPONSIBILITY MAJOR REGIONS MCDONALDS WORLDWIDE ORGANIZATIONAL STRUCTURE MANAGEMENT STRATEGIES BUSINESS MODEL MC DONALD’S PRODUCTS STRATEGIC PREDISPOSITION CULTURE HOFSTEDE’S CULTURAL DIMENSIONS TYPOLOGY IN MC DONALDS CULTURE MCDONALDS SWOT ANALYSIS KFC, A BRIEF INTRODUCTION: KFC VALUES KFC FOCUS AREA MAJOR REGIONS KFC WORLDWIDE KFC ORGANIZATIONAL STRUCTURE KFC MANAGEMENT STRATEGIES BUSINESS MODEL KFC PRODUCTS STRATEGIC PREDISPOSITION CULTURE HOFSTEDE’S CULTURAL DIMENSIONS TYPOLOGY IN KFC CULTURE KFC SWOT ANALYSIS BIBLOGRAPHY

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COMMENTS

MC DONALDS, A BRIEF INTRODUCTION

MISSION

Be the customers' favorite place and the way to eat.

HISTORY OF “McDonalds”

The story of Raymond Albert Kroc, the founder of McDonalds: The birth of McDonald's began with Raymond Albert Kroc.Ray Kroc was the exclusive

distributor of a milk shake maker called the Multimixer. Meanwhile, two brothers, Richard and

Maurice McDonald owned and ran a hamburger restaurant in San Bernadino, California, in the

1950s. Ray Kroc heard how well the McDonald brothers were doing using his Multimixers to

serve their customers. He met up with them and acquired the franchising right from them to run

McDonald's restaurants. A great success story was in the making. In 1955, Ray Kroc founded the

McDonald's Corporation and opened the first restaurant in Des Plaines, Illinois. In 1961, he

bought out the McDonald brothers. And the rest, as they say, is history. McDonald's grew into

the largest restaurant organization in the world. Today, there are more than 33,000 McDonald's

restaurants in 119 countries. Ray Kroc died in 1984 but his legacy is very much alive. His

success story continues with McDonald's families of employees, franchisees and suppliers. His

commitment, dedication and achievements continue to live on at McDonald's restaurants across

the world.

McDONALD’S VALUES

CULTURE AND VALUES AT McDONALDS:

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There customers are the reason for their existence. They demonstrate it by providing them

with high quality food and superior service in a clean, welcoming environment, at a great

value. The goal is quality, service, cleanliness and value (QSC&V) for each and every

customer each and every time.

They provide opportunity, nurture talent, develop leaders and reward achievement. They

believe that a team of well-trained individuals with diverse backgrounds and experiences,

working together in an environment that fosters respect and drives high levels of engagement

is essential for continued success.

McDonald’s business model is depicted by “three-legged stool” of owner/operators,

suppliers, and company employees. It is their foundation and balancing the interests of all

three groups is the key.

At McDonald’s, they hold themselves and conduct their business to high standards of

fairness, honesty and integrity. They are individually accountable and collectively

responsible.

They seriously take the responsibilities that come with being a leader. They help customers

build better communities, support Ronald McDonald House Charities, and leverage the size,

scope and resources to help make the world a better place.

McDonald’s is a publicly traded company. As such, they work to provide sustained profitable

growth for their shareholders. This requires a continuous focus on its customers and the

health of its system.

They work hard on improving and nurturing their company. They are a learning organization

that aims to anticipate and respond to changing customer, employee and system needs

through constant evolution and innovation.

FOCUS AREAS

They are always striving to be better tomorrow than they are today. This more than anything that

speaks to who McDonald's is as a company. The overarching goal of its sustainability efforts is

focused on continuous improvement through their five focus areas:

Nutrition & Well-Being

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Sustainable Supply Chain

Environmental Responsibility

Employee Experience

Community

Nutrition & Well-Being

Whether it’s a quick breakfast lunch on the go or dinner with the kid’s customers comes to

McDonald’s for quality food at a great value. The goal is to continuously improve its classic

offerings and increase the number and variety of new options that delivers the great taste and

balance what customers are seeking. In addition to an evolving array of menu items they also

offer many ways for customers to learn about their nutrition information of its food. They pay

particular attention to its offerings for children and how they communicate about them to

both kids and their parents.

Sustainable Supply Chain

The McDonald’s supply chain is a complex web of direct and indirect suppliers. It manages this

complex system by working with direct suppliers who share our values and vision for sustainable

supply. They hold them to clear standards for quality, safety,efficiency and sustainability. They

expect them to extend those requirements to their suppliers. They also partner with them to

identify, understand and address industry-wide sustainability challenges and achieve continuous

improvement. Overall, McDonald’s and its suppliers are collectively focused on three areas of

responsibility: ethics, environment, and economics.

They have focused on the 3E's:

Ethics

Environment

Economics

Through its supply chain profitably yields high-quality, safe products without supply interruption

while leveraging their leadership position to create a net benefit by improving ethical,

environmental and economic outcomes.

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Ethics - They purchase from suppliers that follow practices that ensure the health and safety of

their employees and the welfare and humane treatment of animals in supply chain.

Environment - Eco friendly materials and design of its products, their manufacture, distribution

and usage minimize life-cycle impacts on the environment.

Economics - They believe in delivering affordable food, engaging in equitable trade practices,

limiting the spread of agricultural diseases, and positively impacting the communities where its

suppliers operate.

ENVIRONMENTAL RESPONSIBILITY

McDonald’s and its franchisees want the same thing what communities want - a clean

neighborhood for people to live and work. Their standard restaurant training includes a strong

litter management component, with McDonald’s staff conducting frequent clean-ups of its

restaurant grounds and the public spaces surrounding their restaurant parking lots. They also

encourage customers to help them by participating in anti-littering programs, and include anti-

littering messages on many of its packages around the world.

Employee Experience

Embracing and empowering a diverse workforce has been a part of the McDonald’sculture for

decades. McDonald’s keep moving from awareness to action. Training is provided to all the

employees at Hamburger University for our leadership development programs. Their goal is to

have people within the organization working and living toreach their full potential. They believe

that leaders hold themselves accountable for learning about, valuing, and respecting individuals

on both sides of the counter. At McDonald’s, diversity and inclusion are parts of its culture –

from the crew room to the Board Room. They are working to achieve this goal every day by

creating an environment for everyone to contribute their best

Community

Ronald McDonald House Charities - fundraising events and programs including donations

Sponsorship - Olympic Games and the FIFA World Cup

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Disaster relief – Provided food and other assistance to victims of 9/11 tragedy in New York City,

Tsunami in Southeast Asia in 2004, Destructive 2005 and 2008 hurricane seasons and most

recently the devastating earthquake in Haiti in January 2010

MAJOR REGIONS

Headquarter is situated in Oak Brook, Illinois, U.S.A. The total number of locations worldwide

is 34,000+

In order to cater to local tastes and culinary traditions, and often in respect of particular laws or

religious beliefs, McDonald's offers regionalized versions of its menu among and within

different countries. As a result, products found in one country or region may not be found in

McDonald's restaurants in other countries.

Some of the major regions and major countries where franchise of McDonalds is located are:

Africa – Egypt, Morocco

Asia – India, Pakistan, Japan, U.A.E

Europe – U.K, Denmark, Germany

America – Canada, U.S.A, Brazil, Mexico

Oceania – New Zealand, Australia

MCDONALDS WORLDWIDE

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ORGANIZATIONAL STRUCTURE

MANAGEMENT STRATEGIES

Corporate Managers

McDonald’s corporate employees are managed in the organizational structure. At the corporate

level, individuals are given incentive in the form of yearly bonuses. Each employee is evaluated

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annually on their performance and rewarded accordingly. These bonuses can also be in the form

of stock awards if the individual has worked for McDonald’s for a long time.

Restaurant managers

McDonald’s restaurants are managed as franchises. The restaurant managers are not connected to

the corporate structure. They pay for access to the brand name and company resources in order to

run a restaurant independently. Restaurant managers have the opportunity to receive

comprehensive training and McDonald’s HamburgerUniversity. Hamburger University is a

training center that teaches over 5,000 managerial students each year from all over the world.

The management and leadership development curriculum gives employees the skills they need to

run a successful McDonald’s restaurant.

Floor Employees

Employees are given intensive initial training to learn a specific method for performing each

task. The training is very precise, controlling everything from body placement to patterns of

movement. Methods for task completion were extensively researched and developed for

maximum efficiency, and workers are required to follow the methods taught.

BUSINESS MODEL

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants,

and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and

operated by McDonald's Corporation directly. The remainder is operated by others through a

variety of franchise agreements and joint ventures. The McDonald's Corporation's business

model is slightly different from that of most other fast-food chains. In addition to ordinary

franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's

may also collect rent, which may also be calculated on the basis of sales. As a condition of many

franchise agreements, which vary by contract, age, country, and location, the Corporation may

own or lease the properties on which McDonald's franchises are located. In most, if not all cases,

the franchisee does not own the location of its restaurants.

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The United Kingdom and Ireland business model is different than the U.S, in that fewer than

30% of restaurants are franchised, with the majority under the ownership of the company.

McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois.

In other countries, McDonald's restaurants are operated by joint ventures of McDonald's

Corporation and other, local entities or governments.

As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees,

instead organizing the supply of food and materials to restaurants through approved third party

logistics operators.

Their holistic vision is well defined. Their supply chain is comprised of many different local and

regional supply chains around the world that are tied together globally by strategic frameworks

and policies and the McDonald’s Worldwide Supply Chain department. The SSSC (Sustainable

Supply Steering Committee) is responsible for guiding McDonald’s toward.

McDONALD’S PRODUCTS

Hamburgers

Chicken

French fries

Soft drinks

Coffee

Milkshakes

Salads

Desserts

Breakfast

SOME ELEMENTS OF MANAGEMENT ARE DISCUSSED BELOW:

STRATEGIC PREDISPOSITION

McDonald’s strategic predisposition involves a polycentric predisposition in which they tailored

their menus to the preferred tastes of the various countries where they do business.

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CULTURE

It has a centralized decision-making structure. A very centralized scope of authority means that

employee work profile consists of limited responsibility and lack of any opportunity to exercise

individual initiatives. Most employees are under the age of 20 and for most people, it is their first

job. Employees thus, tend to identify more with their coworkers partly due to them not offering

any decision-making input and a high-stress; fast-paced environment takes its own toll on the

identification of the employees with the organization.

APPLICATION OF THE HOFSTEDE’S CULTURAL DIMENSIONS:

Low Power distance

Masculinity

Collectivism

TYPOLOGY IN McDONALD’S CULTURE

Equity

Hierarchy (tight control)

Task emphasis Person emphasis

Guided missile

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McDONALD’S SWOT ANALYSIS

STRENGTH

Ranks very high on the Fortune Magazine's food service companies that are most admired

list.

One of the best brand recognition in the world, the golden arches and Ronald McDonald.

Community oriented business models.

Very socially responsible.

Global operations all over the world.

Cultural diversity in the foods that are provided based on location of the restaurant.

A large part of the restaurants are franchised out.

Excellent locations in theme parks, airports, Wal-Mart stores, and along most well-traveled

roads.

Efficient operating guidelines in the assembly line fashion.

Use of top quality beef and chicken products.

Use of brand name processed items like Kraft cheese, Dannon Yogurt, and Dasani Water.

Food safety guidelines are strictly adhered to.

Provide nutritional information to the consumers.

WEAKNESSES

Training costs are elevated due to high turnover.

Open communication

Job relationship Personal relationship

Close communication

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Very minimal concentration on providing organic foods.

Large fluctuations in their net and operating profits making impacts on the investors.

Not much variation in seasonal products that are offered.

Quality concerns due to franchised operations.

Focus on burgers and grease fried foods and not on healthier options for their customers.

OPPORTUNITIES

Opening more joint ventures with several different retailers.

Being more responsive to the social changes to healthier options.

Advertising the capabilities of Wifi internet services in the branches.

Creating more play places for the children in more of the restaurants.

Expanding on the advertising in regards to being more socially responsible in the

environment.

Expansions of business into newly developed parts of the world.

Creating a more upscale appearance to attract a more upscale clientele.

Open products up to allergen free options such as peanut free and gluten free foods.

Continue to venture into more enticing beverage choices.

THREATS

Lawsuits for offering unhealthy foods that have alleged addictive additives.

Contamination risks that include the threat of e-coli containments.

The vast amount of eat in fast food restaurants that are open as competition.

Social changes to a more balanced meal including fruits and vegetables in servings of five

per day.

Political instability

Focus on healthier dieting by consumers.

Down turn in economy affecting the ability to eat out as much.

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KFC, A BRIEF INTRODUCTION:

VISION

Our passion, as a restaurant company, is to put a YUM on people's faces around the world,

satisfying customers every time they eat our food and doing it better than any other restaurant

company.

HISTORY OF “KENTUCKY FRIED CHICKEN”

The story of Harland Sandler, the founder of KFC: KFC was founded by Harland Sanders, who began selling fried chicken from his roadside

restaurant in. Sanders was an early pioneer of the restaurant franchising concept, with the first

"Kentucky Fried Chicken" franchise opening in Utah in the early 1950s. Its rapid expansion saw

it grow too large for Sanders to manage, and he eventually sold the company to a group of

investors. Throughout the 1970s and 1980s, KFC had mixed success at home as it went through a

series of corporate owners who had little or no experience in the restaurant business, although it

continued to expand in overseas markets. In the early 1970s, KFC was sold to Heublein, who

was taken over by the Reynolds who sold the chain to PepsiCo. PepsiCo spun off its restaurants

division as Tricon Global Restaurants this later changed its name to Yum! Brands.

KFC VALUES

CULTURE AND VALUES AT KFC:

Customer Mania

We listen and respond to our customers and are obsessed about going the extra mile to make

them happy.

Belief in People

We believe in people, trust in positive actions, encourage ideas from everyone and fashion a

workforce that is different in style and background.

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Recognition

We find reasons to celebrate the achievements of others and have fun doing it.

Coaching & Support

We learn from each other and always help each other out.

Accountability

We do what we say and take responsibility for our actions. We act like owners.

Executional Excellence

No matter which restaurant you work in, you'll notice similarity in the quality of our service.

This is the power of the KFC brand.

Positive Energy

We work with passion and energy. We're not interested in hierarchy and all the nonsense that

comes with it.

Teamwork We work together as one team, always. No matter how busy we are, we make sure we get

together to talk things through.

KFC FOCUS AREA

Build an organization dedicated to excellence.

Consistently deliver superior quality and value in products and services.

Maintain a commitment to innovation for continuous improvement and grow, always strive

to be the leader in the market place changes.

Generate consistently superior financial returns and benefits for owners and employee.

Increase profitability through following six issues

Reduce overhead costs

Increase efficiencies

Improve customer service

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Cleaner restaurants

Faster and friendlier service

Continued high quality products

COMMUNITY

Animal Welfare Program. Yum Brands! Parent company of KFC, are committed to the humane

treatment of animals.

SUPPLIER CODE OF CONDUCT

Yum! Brands are committed to conducting business in an ethical and responsible manner. To

encourage compliance with all legal requirements and ethical business practices, Yum has

established a Supplier Code of Conduct for its U.S. suppliers.

SOCIAL DIVERSITY

Diversity is more than a philosophy at KFC, it is part of our founding How We Work Together

principles. Our global culture is actively developing a workforce that is diversein style and

background, where everyone can make a difference.

COLONEL'S SCHOLARS

The KFC Colonel’s Scholars Program is about you, your dreams and aspirations, and the

perseverance to succeed. This program is offered to high school seniors planning to attend a

public in-state college or university.

MAJOR REGIONS

Headquarter is situated in Louisville, Kentucky, United States. The total number of locations

worldwide is 17,000.

Some of the major countries where franchise of KFC is located are:

U.S.A, U.K, Canada, Australia, India, Pakistan, China, Malaysia & Indonesia.

KFC WORLDWIDE:

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KFC ORGANIZATIONAL STRUCTURE

KFC MANAGEMENT STRATEGIES

CORPORATE MANAGERS

At the corporate level, individuals are given incentive in the form of yearly bonuses. Each

employee is evaluated annually on their performance and rewarded accordingly.

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RESTAURANT MANAGERS

The restaurant managers are not connected to the corporate structure. They also pay for access to

the brand name and company resources in order to run a restaurantindependently.

FLOOR EMPLOYEES

Employees are intensively given initial training to learn the specific methods for performing each

task.

BUSINESS MODEL

Kentucky Fried Chicken has a proven successful business model and a highly recognizable

name. KFC and its franchisees all contribute to a national advertising fund, this results in the

system spending over $200 million advertising each year. Over the years, this advertising has led

to enviable awareness level across the United States, most everyone has heard of Kentucky Fried

Chicken. If anyone decides to choose a KFC franchise, they benefit from this substantial

awareness. Spending more than $200 million annually on advertising in all types of media, KFC

and its franchisees build a strong foundation on which local franchisees can build. With this

foundation, local franchisees create links in the local community, frequently sponsoring teams,

holding events at the restaurant or by being part of local business groups. When this is combined

with hard work and dedication (including the great taste of Original Recipe Chicken served hot

and fresh, one may realize a much higher customer base and the potential to build a larger and

larger pool of satisfied and loyal customers. Another primary benefit which many KFC franchise

owners are taking advantage of is a system that is set up to assist the new KFC franchise owners.

KFC has developed a quality on boarding program to help set up the system, understand best

practices for building store and building team and allowing setting restaurant up for a fast start.

Having an established set of tasks to focus on can make an extremely complex process seem very

manageable. KFC assigns lead contacts in each critical area so as to guide you at each step in the

process.

KFC PRODUCTS:

KFC adapts its menu internationally to suit regional tastes. There are over 300 KFC menu items

worldwide, from a chicken pot pie in the United States to a salmon burger in Japan. In Asia there

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is a preference for spicy foods, such as the Zinger chicken burger. KFC's primary product is

pressure-fried pieces of chicken made with the "Original Recipe". The company also sells

chicken burgers, wraps and a variety of finger foods,including chicken strips, wings, nuggets,

and popcorn chicken. Popcorn chicken consists of small pieces of marinated, breaded and fried

chicken. Grilled chicken products are available in 4,000 outlets. Side dishes vary regionally, but

often include coleslaw, French fries or potato wedges, barbecue baked beans, corn on the cob

and American biscuits. Because of the company's previous relationship with PepsiCo, Yum!

Brands has a lifetime drinks supply contract to supply Pepsi products. An own brand dessert is

the soft serve ice cream product known as "The Avalanche". In 2012 the KFC breakfast menu

began to be rolled out internationally.

Fried chicken

Grilled chicken

Chicken burgers

French fries

Soft drinks

Salads

Desserts

Breakfast

SOME ELEMENTS OF MANAGEMENT ARE DISCUSSED BELOW:

STRATEGIC PREDISPOSITION

KFC strategic predisposition also involves a polycentric predisposition in which theytailored

their menus to the preferred tastes of the various countries where they do business.

CULTURE

KFC is centralized as all the decisions are pre documented and taken at upper level of

organization without any involvement at lower level

APPLICATION OF THE HOFSTEDE’S CULTURAL DIMENSIONS:

Low Power distance

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Masculinity

Collectivism

TYPOLOGY IN KFC CULTURE

Equity

Hierarchy (tight control)

Task emphasis Person emphasis

Guided missile

Open communication

Job relationship Personal relationship

Close communication

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KFC SWOT ANALYSIS

STRENGTH

KFC's secret recipe.

KFC's early entrance into the fast-food industry in 1954 allowed KFC to develop strong

brand name recognition and a strong foothold in the industry.

Traditional employee loyalty.

Employees have a loyal workforce they enjoy good benefits, a pension, and could receive

help with other non-income needs.

KFC has achieved operating efficiencies through improvements in customer service, cleaner

restaurants, faster and friendlier service, and continued high-quality products.

WEAKNESSES

The many sales of KFC lead to a confusing corporate direction. KFC was sold three times.

KFC take a long time to market new products.

Conflicting cultures of KFC and Pepsi Co. KFC – laid back approach while Pepsi co is fast

tracked.

High turnovers in top management.

Contractual disputes with franchisees in the United States.

OPPORTUNITIES

One of the world’s largest consumer products companies

Fewer families have time to prepare food at home

KFC’s early expansion abroad, strong brand name, and managerial experience in

international markets gave it a strong competitive advantage

THREATS

Increasing competition and rising sales of substitute products

Consumers have begun to demand healthier foods

High turnover and political conditions

RECOMMENDATIONS

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Based on the analysis McDonald’s should develop menu choices that are healthy and socially

acceptable. They need to increase their presence in Asian countries. They can add seasonal items

to their menu. They can use healthier food without adding preservatives and additives. They need

to reduce salt in fries; use healthier oils to fry foods. They can also offer other beverage other

than Coca Cola. Fresh squeezed fruit juices would be a healthy alternative to sugary carbonated

soft drinks.

KFC need to work on its management issues. They also need to work on its restaurant menu

before thinking about expansion. They should work on the management issues to create a good

atmosphere where employees are happy to work in. They also need to make sure that their

restaurants offer a diversified menu, provide their customers with quality food, excellent service

and restaurant cleanliness. KFC should always listen to their customers and try to follow the new

trends on the market in order to fully satisfy their customers otherwise competitors will satisfy

them.

BIBLOGRAPHY

http://en.wikipedia.org/wiki/KFC

http://en.wikipedia.org/wiki/McDonald%27s

http://www.kfc.com

http://www.mcdonalds.com

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JAPAN VS RUSSIA SUBMITTED BY:

SAMIA RAHMAN (100813), HAMZA ASHRAF (100803)

MUHAMMAD EHTISHAM KHAN (100841)

SUBMITTED TO:

PROFESSOR. MANZOOR IQBAL AWAN

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TABLE OF CONTENTS

Topics

Flag and Map of Japan

Flag and Map of Russia Introduction of Japan

Background Political environment of Japan

Business structure Management style

Meetings Japanese teams

Communication style Multinational companies in Japan

Swot analysis of Japan Imports and Exports of Japan

Introduction of Russia Background

Business structure Management style

Team Work Communication style

Multinational companies in Russia Swot analysis of Russia

Imports and Exports of Russia Comparison of Japan and Russia

Conclusion Bibliography

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FLAG AND MAP OF JAPAN

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FLAG AND MAP OF RUSSIA

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Japan

Introduction

Japan is an island nation in East Asia. The capital of Japan is Tokyo. Japan has the world's third-

largest economy by nominal GDP and by purchasing power parity. Before World War Two,

Japan was an isolated an insular country that was in many ways closed to the outside world.

After the extreme damage inflicted on Japan in 1945 Japan began a period of modernization and

industrial expansion that has seen its economic influence spread across the globe. Taking the

model of western companies and corporations and adapting them to a unique Japanese version

has seen Japanese companies became house-hold internationally.Japan is capitalistic nation.

Background

Despite the recent growth of China and India as both regional and global economic super

powers, Japan remains a major force in world commerce with leading players in such diverse

sectors as banking and finance, computing, software, automotive and pharmaceuticals and it

would be unwise to switch attention away from this potentially lucrative market.

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Many people find Japan both fascinating and difficult as a business destination and often leave

the country more confused than when they arrived. The Japanese approach to business is

determined by history and as such is a reflection of Japanese society as a whole. In order to work

and interact successfully with your contacts in Japan, a basic understanding of some of the

underlying concepts governing business life is essential.

Some of these underlying concepts are so fundamentally different from western models that

adjustments can be difficult and complete comprehension almost impossible. The most important

concept to grasp is that of the overwhelming importance of personal relationships within the

business cycle. Of all the business cultures of the world, Japan is one of those most strongly

rooted in the concept that relationships should come before business, rather than business being

more important than personal considerations.

This means that in order to achieve success in Japan, it is important to put the maximum amount

of time and resource into the early stages of relationship-building; even when eventual results

may seem a long way off.

Business models in Japan have been under enormous strain for more than a decade and there is

massive pressure (both internal and external) for reform. Yet change comes slowly to Japan and

old traditions and loyalties linger. Except changes to happen, but do not expect an easy or quick

transition; and do not assume that any changes will result in business models that will be

immediately or easily understood by outsiders.

Political Environment

The Japanese government is a constitutional monarchy that is divided into three branches; the

Legislative, the Executive, and the Judicial. Their legal system is modeled after the European

civil law systems and has English-American influence, judicial review of legislative acts in the

Supreme Court, and they accept compulsory International Court of Justice (ICJ) jurisdiction with

reservations.

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In the Executive branch, the chief of state is Emperor Akihito. The cabinet is appointed by the

prime minister, which is Prime Minister Naoto Kan, who is the head of government. The judicial

branch has a Supreme Court and the chief justice is appointed by the monarch and all other

juices are appointed by the cabinet.

Business Structure

Up until World War Two, Japan was dominated by a small number of very large companies, the

zaibatsu, and these companies had massive influence on the economy. However, in recent years

the Japanese economy has become much more varied in terms of the size and structure of its

companies, producing a complex web of inter-locking relationships between large and small

firms. Competition amongst these smaller firms is very strong which results in a great number of

bankruptcies in this sector; therefore the concept of life-time employment enjoyed by the total

workforce is, and has been for some time, a myth. Japanese companies, like Japanese society, are hierarchically organised with individuals

knowing their position within a group and with regard to each other. It is this sense of belonging

to the group that gives Japanese companies their strength and purpose. Group orientation and

team working are not merely concepts and phrases in Japan but a way of life which permeates all

aspects of corporate life at all levels. The Japanese value their past. They consider it as the

source of ideas, hopes and inspiration.

Japanese hierarchy is based on consensus and co-operation rather than the top-down decision

making process which often typifies western models of hierarchy. This means that people feel

actively involved and committed. It can also mean that decisions are slow and have to be based

on deep analysis or large amounts of information.

Management Style

Japanese management emphasises the need for information flow from the bottom of the

company to the top. As a result, it has been noted that policy is often originated at the middle-

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levels of a company before being passed upwards for ratification. The strength of this approach

is obviously that those tasked with the implementation of decisions have been actively involved

in the shaping of policy. The higher a Japanese manager rises within an organization, the more important is that he

appears unassuming and unambitious. Individual personality and forcefulness are not seen as the

prerequisites for effective leadership.

The key task for a Japanese manager is to provide the environment in which the group can

flourish. In order to achieve this he must be accessible at all times and willing to share

knowledge within the group. In return for this open approach, he expects team members to keep

him fully informed of developments. This reciprocity of relationship forms basis of good

management and teamwork.

Instructions from managers can seem extremely vague to western ears and this often causes

confusion and frustration. This difficulty is caused, in no short measure, by problems around

styles of communication. As users of coded-speech (where what one says does not necessarily

correspond to what one actually means), direct, clear instructions are not needed. The Japanese

subordinate will second-guess the boss ‘wishes’ to happen and react accordingly. It is, therefore,

often necessary to ask for clarification if tasks seem vague or unclear. It is better to seek clear

understanding at the outset that allows misunderstandings to produce poor results or tensions in

the relationship.

Meetings

Punctuality is important; it shows respect for the attendees. However, due to the consensus

nature of decision making in Japan, it can very often be difficult to determine a finish time.

Always allow slightly more than you think might be necessary to achieve your goals. Meetings are often preceded in Japan by long, non-business polite conversation which could

cover such topics as mutual contacts, the merits of your company, Japanese food etc. It is an

essential element of relationship-building process.

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Japanese Teams

The Japanese don not really undertake training sessions on team building; they are naturally

group oriented which underlies the need for a truly consensus approach to issues. The consensus-

building process determines that agreement is sought before a formal meeting in order to avoid

any direct confrontation. Thus arriving at a meeting expecting issues to be trashed out in a direct

and forthright manner will almost always lead to disappointment. It is also important that group members maintain ‘face’ in front of other group members, which

amongst other things means that people must seen to be modest and humble. Self-promotion in

the western sense is seen as childish and embarrassing behaviour.

The group or groups to which a person belongs are a life-defining set of relationships and the

importance of these group relationships should never be underestimated. Therefore, Japanese

businessmen (and women) will often socialise in teams after work

Communication Style

Of all aspects of dealing with the Japanese, the ones which probably cause the biggest dilemmas

concern communication difficulties. Japanese communications are epitomised by subtlety and

nuance, where how one appears and what one publicly states and what one really thinks are often

poles apart. The development of relationships in Japan is often dependent on people’s ability to read the

underlying truth which may underpin the spoken rhetoric. It can, of course, be very difficult for

the non-Japanese to navigate these very confusing paradoxes. It is probably best to say that

everything should be questioned in order to ensure that clear understanding has been achieved.

Communication difficulties are further compounded by the fact that few foreigners speak good

Japanese and that levels of English in Japan are at best very patchy. Much of what is said by

English speaking businessmen in cross-national meetings is simply not understood; or more

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worryingly misunderstood. The combination of Japanese vagueness and lack of comprehension

leads to enormous problems which make problem-solving and decision very tortuous.

In times of stress or difficulty during a meeting, the Japanese will often resort to silence in order

to release the tension in the room and allow people to move away from the area of difficulty.

Unfortunately many western are extremely uncomfortable with silence in meetings and feel the

need to fill the silence with more discussion over the issue the Japanese would rather avoid.

In addition, Japanese body language is very minimal, making it difficult for the untrained

observer to read. The Japanese seem to be very still in meetings, sitting in a formal upright

posture. It is rare for any reaction or emotion to be visible.

Multinational Companies of Japan

Automobiles

In the area of automobile manufacturing Japan has become a global giant. The major Japanese

multinational corporations who manufacture automobiles or who offer automotive parts and

servicing are Toyota, Honda, Nissan, Mazda, Suzuki, Denso, Bridgestone and Aisin Seiki.

Japanese cares are known for their fuel-efficiency and consistently high quality. The largest

Japanese carmaker is Toyota Motor Company. In fact, it is one of the world's top 10

multinational companies based on annual revenues as of publication.

Electronics

Japan is almost synonymous with excellence and output in consumer electronics. Many industry

leading developments in this field have come from Japan and Japanese companies dominate

many sectors of this market. The leading Japanese multinational players in this category are

Panasonic, Sony, Toshiba, Hitachi, Sanyo, Matsushita, Sharp, Mitsubishi and Sumitomo.

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Computers and Technology

Like electronic consumer goods Japan has shown an incredible capacity for innovation in the

field of computing and associated technologies. Companies such as Canon, Sony, NEC, Ricoh

and Fujitsu are leading brands throughout the world and make the Fortune 500 list of leading

multinationals.

Engineering and Construction

After the destruction wrought by World War Two, Japan underwent and enormous

reconstruction period during which time many Japanese engineering and construction firms

rose to international prominence. A lack of natural resources and a relatively small domestic

market has forced Japanese companies in this field to innovate and expand. Some of the

leading names in Japanese industry in this sector internationally are Takenaka, Shimizu,

Kajima, Obeyashi, Komatsu, Taisei, Nippon Steel and Kobe Steel.

SWOT Analysis of Japan

Strengths

Japan has the world's third-largest economy by nominal GDP and by purchasing power

parity.

World's fourth-largest exporter and fourth-largest importer.

It maintains a modern military with the sixth largest military budget used for self-defense

and peace keeping roles.

They never waste their time and are very hard working.

Japan’s automobile industry is ultimately its greatest strength.

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Japan has a large industrial capacity, and is home to some of the largest and most

technologically advanced producers of motor vehicles, electronics, machine tools, steel

and nonferrous metals, ships, chemical substances, textiles, and processed foods.

Japan is a leading nation in scientific research, particularly technology, machinery

and biomedical research.

The key for the Japan economically success was education. Their education system

played a major role in enabling the country to meet the challenges presented by the need

to quickly understand Western ideas, science, and technology. Japan has one of the

highest standards of education and one of the highest literacy rates in the world.

Weaknesses

Long life expectancy.

Natural disasters i.e Earthquakes, Lava, Floods etc.

Dense population.

Only 8% of managers are females in Japan, whereas, they are 40% in America and 20%

in China

Japan's reliance on exports could cause many economic problems, because export

earnings are very volatile. They are also subject to enormous international competition,

which means they could easily lose to competition from China or any low expense

locations around the world.

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Opportunities

Japan has an emerging market economy. Demand from emerging markets is helping

growth and margins.

Emerging markets in Japan are creating new opportunities to expand products from the

developed world.

Rapid growth in International trade in Japan will result in more profits in near future.

Paper products, computer services and other industries will all benefit as emerging

countries increase demand for industrial and agricultural products in Japan.

Rapid growth in industrialization is creating more opportunities for Japan to boost its

economy in near future.

Threats

Conflicts with China are a major threat to Japan.

Pollution, Deforestation are injurious to health and is rapidly increasing.

Young entrepreneurs are decreasing in Japan. The loss of entrepreneurs slows down a

countries rate of growth, because entrepreneurs create the next generate of companies.

Japan's government debt is mostly serviced by the large domestic population of savings.

These savers invest their money with the government and receive a very low increase rate

in return.

Natural disasters are also one of the biggest threats to Japan. Natural disasters like

earthquakes, floods etc in Japan had greatly destroyed their infrastructure and industries.

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Imports and Exports of Japan

Japan mainly imports:

Japan has a surplus in its export/import balance. The most important import goods are :

Raw materials

Oil.

Foodstuffs

Wood.

Japan mainly exports:

Cars.

Silk.

Electronic devices

Computers.

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RUSSIA

Introduction

Russia has ninth largest economy in the World by nominal value and the sixth largest by

purchasing power parity (ppp). Russian economy is today considered by IMF and World Bank a

developing one. Russia has an abundance of natural gas, oil, coal, and precious metals. Russia

has undergone significant changes since the collapse of the Soviet Union moving from a

centrally planned economy to a more market based and globally integrated economy.

Background to Business in Russia

Russia has emerged from a decade of post-Soviet chaos and disintegration to reassert itself as a

major player on the world stage - both politically and economically. President Putin and his

successor President Medvedev have restored public confidence in the country and vast oil and

gas reserves have resulted in growing political and economic influence. Russia cannot be

ignored - it needs to be understood.

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As an enormous geographic area, it is dangerous to ever generalize about Russia but certain

universal truths do, however, typify the Russian approach to business and life in general. Firstly,

it is always worth bearing in mind that for centuries (long before the advent of the Soviet

system), the state has always been seen as an organ of oppression and repression. Laws and

statutes are therefore seen as the 'enemy' and to be avoided and evaded at all costs. Contracts are

valid only if supported by a close personal friendship and taxes are left unpaid on both a

corporate and personal level.

Secondly, the only things that can be relied upon are close personal relationships within the

business environment. Networking and extended interpersonal allegiances are essential to

successful business and the importance of resource allocation to ensure the development of good

quality relationships should not be underestimated.

Thirdly, the legal status of many things in Russia is very doubtful. Who actually owns what

assets? The laws are being rewritten constantly and are, in any case, often unenforceable without

the right level of political influence. Thus, most agreements have to be made on a trust basis - a

strong element of which has to be clearly identifiable self-interest. The legal basis of any

arrangement will probably mean very little once the relationship breaks down.

Despite these issues, Russia has been identified as a high-growth potential market with

opportunities in market sectors as varied as banking and finance, technology and computing,

infrastructure development and education.

Business Structures

Autocracy and centralized decision-making are synonymous with the Soviet system in many

people's eyes and this approach can certainly be seen to be manifested within large Russian

business organizations. Russian companies tend to be driven by one strong central figure who

will make strategic decisions with little or no consultation with anyone other than a handful of

close trusted advisors.

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Therefore, when dealing with potential clients or joint-venture partners in Russia, it is absolutely

essential to make sure that the right person is being dealt with. Western companies who attempt

to interface at inappropriate levels within an organization waste massive amounts of time and

resource. Nowhere is the advice, 'Go straight to the top', more pertinent.

The headlong rush from communism to capitalism has made people into entrepreneurs and

centralized decision-making enables organizations to grab an opportunity when it arises. Thus, as

in most developing economies, companies tend to have a short-term view of business activities

and it is imperative that any potential partner can see the short-term benefits of collaboration.

Management Style

As it has been stated, management tends to be centralized and directive. The boss - especially

the 'big boss' - is expected to issue direct instructions for subordinates to follow. Little

consultation will be expected from people lower down the company hierarchy. Indeed too much

consultation from a senior manager could be seen as a sign of weakness and lack of decisiveness.

Middle managers have little power over strategy or input in significant strategic decisions. The

most powerful middle managers are the ones who have the most immediate entree to the

decision-maker at the top of the organization. There is little point in wasting time debating with

middle managers who do not have an easy access to the top. The most significant reason for

delay in reaching a decision in Russia is that the decision has not been put in front of the real

decision-maker.

Delegation is usually in terms of managers giving precise instructions to subordinates who are

expected to perform their allocated tasks with little or no discussion. Many westerners complain

of a lack of initiative from local Russian staff, whilst Russian staff often bemoans the lack of

clear, unambiguous advice from expatriate managers.

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It is also important to take age into consideration - younger managers, who have developed in the

post-Soviet era, may be much more heavily influenced by western management theory than their

older counterparts.

Team work

Teams work best together when the relationships amongst the group are close. There remains a

general suspicion of strangers in Russian society and any attempt to bring together teams from

different strands of an organization can be problematic. Once a team has been established and is

working well together it is probably best to keep the team intact for as long as possible. Move the

team wholesale from project to project rather than developing a fresh team for every situation.

The team leader is expected to play a domineering role and to issue precise detailed instructions

and then supervise ongoing progress. Those western managers who are more used to a 'hands off'

approach will undoubtedly confuse local staff who will feel unsure of what is expected of them.

An expatriate team leader needs to establish credibility through being decisive, clear and visibly

in control.

As different age groups display different attitudes and approaches (pre &post Soviet change

generations), it is often thought best to keep teams quite aligned in ages.

Russian Communication Style

English language levels vary enormously in Russia. Many younger entrepreneurs (especially in

the cosmopolitan centers like Moscow and St Petersburg) have a fluent command of, not only

English, but often several other European languages. Yet in other more provincial centers it is

not unusual to meet business people who have little or no foreign language skills. Always check

in advance whether interpretation is needed. If in any doubt about the comprehension levels

encountered in meeting situations, be sure to check and recheck by asking relevant 'open'

questions at regular intervals.

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As with many other cultures (Mediterranean and Middle Eastern for example) much more

emphasis is placed upon the spoken than the written word. People believe things when they have

heard them from someone with whom they have a trusting relationship. Therefore, it is often

much more efficient to hold face-to-face meetings at which issues can be fully explained, rather

than sending information in a written format only.

There tends to be very little visual or verbal feedback during meetings in Russia. People listen

silently and with little obvious body language being displayed. This does not, however, mean

that the listener is disinterested or does not understand - it is merely a cultural characteristic

which Russians share with, amongst others, the Finns and the Japanese. Russians will tend to

wait and think before responding to a point made to them - do not be impatient. Allow the

Russians the time and space needed to take part fully in the conversation (and remember that

they are probably struggling with foreign language as well).

Multinational Companies In Russia

Gazprom

Gazprom is the world’s largest gas company, and one of the world’s pre eminent energy

companies, focusing on the exploration, production, transmission, storage, processing and

marketing of gas for customers in Russia and around the world. It has the world’s largest gas

reserves (estimated at 29.85 tcm) and the world’s largest gas transmission system. The Russian

government owns 50.02% of the company, with the rest listed in Russia on the RTS (GAZP) and

Micex (GAZP), with American Depository Receipts listed in London (OGZP).

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Rosneft

Rosneft is Russia’s largest oil producer, with operations focused on the exploration, production

and marketing of oil and oil products, with some gas operations as well. The company has

extensive reserves, estimated in 2007 at 17,513 million barrels of crude oil and 711 billion cubic

metres of gas. The Russian state owns 75% of Rosneft with approximately 15% traded. It is

listed in Russia on the RTS (ROSN) and Micex (ROSN) with American Depository Receipts

listed in London (ROSN).

TNK-BP

Russia’s third largest oil producer, TNK-BP, was created from the merger of British Petroleum’s

Russian and Ukrainian operations with those of the Alfa, Access/Renova (AAR) group. TNK-BP

has a range of upstream production and downstream refining and retail assets, and reserves

estimated at 8.225 billion barrels of oil equivalent.

Lukoil

Lukoil is a major Russian energy producer focused on exploration, production and marketing of

oil and gas. The company’s production and exploration base is in Russia, with significant

refining capacity in Russia, and with marketing taking place across Russia, Europe and the

United States. Lukoil is privately owned and has its shares listed in Russia on the RTS (LKOH)

and Micex (LKOH) with ADR’s listed in London (LKOD) and the OTC Market in New York

(LUKOY).

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Kaspersky Lab

Kaspersky Lab is a Russian multi-national computer security company, co-founded by Natalia

Kaspersky and Eugene Kaspersky in 1997. Kaspersky Lab is headquartered in MoscowRussia.

The company currently works in almost 200 countries. The company’s products and

technologies provide protection for over 300 million users worldwide and more than 200,000

corporate clients globally.Kaspersky Lab ranks fourth in the global ranking of antivirus vendors

it was the first Russian company to be included into the rating of the world’s leading software

companies, called the Software Top 100.

Novatek

Novatek is Russia’s second largest gas producer focused on the exploration and production of

gas. The bulk of its production takes place in the Yamal-Nenets region of Russia, with the

company having proved reserves at the start of 2007 of 4.7 billion barrels oil equivalent. 19% of

Novatek is listed on Russia’s RTS (NVTK) and Micex (NOTK) exchanges, with its GDR’s listed

in London (NVTK).

Gazprom-Neft

GazpromNeft is a major Russian energy producer focused on exploration and production of oil

and gas, with additional operations in oil and gas field servicing, refining, and marketing.

GazpromNeft in 2010 achieved 52.8 mln toe produced and refined 37.9 mln tonnes. It partly or

wholly owns three refineries in Russia and two in Serbia and has an extensive retail station

network. Majority owned by Gazprom, Gazprom Neft’s shares are listed on Russia’s RTS

(SIBN) and Micex (SIBN), and is becoming a significant international player with projects in the

Middle East, Africa, Europe and Latin America.

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MMK

Magnitogorsk Iron and Steel Works, or MMK, is the largest steel production complex in Russia.

Its operations encompass the full suite of steel production from ore preparation to high value

steel production, and it produces the widest range of steels of all Russian steel producers. It

exports approximately half of its output. Its shares are traded in Russia on the RTS (MAGN) and

Micex (MAGN) exchanges, with its GDR’s traded in London (MMK).

Evraz

Evraz is one of the world’s largest integrated steelmaking, mining and vanadium business. The

company has operations spanning 3 major Russian steel plants, with global operations in Italy,

the Czech Republic, Ukraine, the U.S. and Canada, as well as holdings in China, and vanadium

operations in South Africa. It also owns and operates the sea port of Nakhodka. Evraz has GDR’s

listed on the London Stock Exchange (EVR).

Severstal Severstal is one of the world’s largest steel producers, encompassing mining, steel mills, rolled

product plants and downstream production facilities. Centred on Russia it has extensive global

operations with production facilities in the United States, Italy, France, Great Britain, and

Ukraine. Severstal is listed on the RTS (CHMF) and Micex (CHMF) with GDR’s listed in

London (SVST).

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Mechel

Mechel is a major steelmaker with extensive metals mining operations across Russia, Romania

and Lithuania. The mining operations produce iron ore, coal and nickel, with steelmaking

encompassing a range of high value carbon and specialty long products. The company also owns

railway, port, and electricity generation operations,Mechel ADR’s are listed in New York

(MTL).

Norilsk Nickel

Norilsk Nickel is the world largest producer of nickel and palladium in addition to being a major

producer of copper, silver, gold, and platinum group metals. The company’s exploration,

production, and refining operations encompass Russia, Finland, Australia, South Africa, Canada,

Botswana, and the U.S. Its shares are traded on the RTS (GMKN) and Micex (GMKN) with

GDR’s traded in London (MNOD), Berlin (NNIA) and the OTC market in the United States

(NILSY).

X5

The X5 Retail Group, founded in 1995, is Russia’s biggest food retailer by revenue with outlets

in 22 Russian regions, Kazakhstan and Ukraine. The company has more than 1000 company

managed supermarkets, hypermarkets and discount stores, and 684 franchises trading under the

Karusel, Pyaterochka and Perekrestok brands. X5 global depositary receipts are listed in London

(FIVE).

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Polyus Gold

Polyus Gold is Russia’s largest gold producer, and one of the world five largest gold producers,

with operations in Eastern Siberia and the Russian Far East. It has proved and probable reserves

of 68.6 million ounces (2006). It is listed on Russia’s RTS (PLZL) and Micex (PLZL) exchanges

with its ADR’s listed in London (PLZL).

Polymetal

St Petersburg based Polymetal is Russia’s largest silver producer, and 3rd largest gold producer,

with operations across Siberia and Russia’s Far East. In addition to its production operations it

has extensive exploration capacity, and an in house engineering research and design centre. It is

listed on the RTS and Micex (PMTL) in Moscow, with GDRs traded in London (PMTL).

SWOT Analysis Of Russia

Strengths

Former superpower.

Russia is one of the world's fastest growing major economies.

Abundance of resources has made Russia almost self sufficient in energy and fuel exports.

Russia has the world's largest reserves of mineral and energy resources and is the

largest producer of oil and natural gas globally.

Russia has the world's largest forest reserves.

Russia probably has one of the best education systems in the world, producing a literacy rate

of 99% in individuals age 15 and above.

The Russian economy is the world's ninth largest by nominal GDP and sixth largest by

purchasing power parity, with the 3rd largest nominal military budget.

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Russia's tank force is the largest in the world.

It is one of the five recognized nuclear weapons states and possesses the largest stockpile of

weapons of mass destruction.

Weaknesses

Russia is the sixth least peaceful country in the world, principally because of its defense

industry ( 2012 Global Peace Index).

Energy companies continuously face political risk from unstable government of Russia.

Russia's economic situation deteriorated rapidly after the breakup of the Soviet Union,

which destroyed major economic links.

Backward in agriculture which leads Russia to poor harvests.

The government spends money on the army instead of helping peasants to develop much

needed farming technology.

Bureaucracy, corruption and poor corporate governance.

Oppertunities

Eastern Europe, China, India, Korea and Japan are large consumers of oil. They eagerly use

Russian's supplies of energy, over the next 15 years, it will increase their share of energy

exports going to Asia to 30 percent.

Construction of a new pipeline from East Siberian oil fields to the pacific has begun, it will

boost their economy.

Alliances/Collaborations with other countries are creating opportunities for Russia regarding

trade and commerce.

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Russia's attractiveness for FDI has benefited from reasonable macroeconomic policies which

lead to a surplus in the state budget, diminishing unemployment, growing income per capita,

external debt repayments and a substantial increase in foreign exchange reserves.

Foreign investment in the Russian airlines is growing, which is expected to have a positive

effect on the travel and tourism industry in Russia in the near future.

Multinationals sensing business opportunities in Russia.

Threats

Falling oil prices are particularly bad for Russia. A large part of the country’s GDP comes

from exporting its vast supply of crude and gas.

Unlawful criminal gangs.

Political instability and corruption is a hurdle in their development.

Russia has been the victim of a number of terrorist attacks.

Imports and Exports of Russia

Russia mainly imports:

Machinery & equipment.

Food products.

Chemicals.

Metals.

Beverages.

Russia mainly exports:

Crude oil.

Natural gas.

Metal.

Weapons.

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COMPARISON OF JAPNAN AND RUSSIA

Japan Russia

Land Area 377,727 sq km 17, 075,500 sq km

Population 127 m 141m

Population Density 33.5 sq km 8.4 sq km

Life expectancy Men 80 yrs

Women 87 yrs

Men 62 yrs

Women 74 yrs

Adult Literacy 99% 99%

Currency Yen Rouble

GDP US$ 5,069bn US$1,232bn

GDP per heads US$39,740 US$8,680

Employment Agriculture 45%

Industry 28%

Services 68%

Unemployed 5%

Agriculture 5%

Industry 33%

Services 62%

Unemployed 8%

Main Exports Capital Equipment

Industrial supplies

Consumer durable goods

Fuels

Metals

Machinery & equipment

Chemicals

Destinations China 19%

USA 16%

South Korea 8%

Hong Kong 6%

Netherlands 12%

Italy 7%

China 5%

Germany 4%

Main Imports Industrial supplies

Capital Equipment

Food

Consumer durable goods

Machinery & equipment

Food products

Chemicals

Metals

food & drink

Main countries of origin China 22%

USA 11%

Australia 6%

Saudi Arabia 5%

USA 14%

China 13%

Germany 5%

Ukraine 5%

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Conclusion

On the basis of our research we conclude that Japan and Russia both are the leading economic

countries of the world their management styles were followed by different developing countries

and we came to know that both of these countries have different cultures and management.

Japan is a highly masculine country. Japanese values time and they are very hardworking

individuals. Japan has a large industrial capacity, and is home to some of the largest and most

technologically advanced producers of motor vehicles, electronics, machine tools, steel and

nonferrous metals, ships, chemical substances, textiles, and processed foods. Their educational

standard is very good which is considered as a key to their success. Japan has become a global

giant. Japan is very advance in technology and business etc.

Russia is one of the world's fastest growing major economies. Russia contains the largest

reserves of oil and natural gas etc. Abundance of resources has made Russia almost self

sufficient in energy and fuel exports. The government spends money on the army instead of

developing its agriculture sector. Literacy rate is very high. Russia is improving rapidly.

Numerous Multinational companies are sensing business opportunities in Russia which will

surely lead them towards success and betterment.

BIBLIOGRAPHY

http://www.worldbusinessculture.com/Japanese-Business-Structures.html

http://en.wikipedia.org/wiki/Russia http://www.wikiwealth.com/swot-analysis:russia http://yousigma.com/comparativeanalysis/japanpost.html

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Pakistan vs. India

Submitted to: Sir Manzoor Awan Submitted by: Babar Ikram, Mian Haseeb Gul, Haseeb Bharwana, Raja Izhar Bhatti & Talia Waqar

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Distribution of Work

o Pakistan Introduction o Pakistan at Glance o India introduction o India at Glance o Management style of Pakistan o Management style of India

Pest Analysis of India o Pest Analysis Pakistan

Babar Ikram and HaseebGul

o Communication Styles o Display of Emotion o Display of Emotion o Preferred Managerial qualities o Hierarchy and Decision-making o Religion, Class, Ethnicity, &

Gender o Privileges and Favoritism o Conflicts in the Workplace- o National Heroes

Talia Waqar and HaseebBharwana

o Kashmir Conflict o Diagrammatic Representation of

Pakistan and India’s Hofstede’s Cultural Dimensions

o Balanced view of the economic achievements and failures of Pakistan and India

Raja izhar and Babar Ikram

o Conclusion All

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Table of Contents

1- Pakistan Introduction 2- Pakistan at Glance 3- India introduction 4- India at Glance 5- Management style of Pakistan 6- Management style of India 7- Pest Analysis of India 8- Pest Analysis Pakistan 9- Communication Styles 10- Display of Emotion 11- Preferred Managerial qualities 12- Hierarchy and Decision-making 13- Religion, Class, Ethnicity, & Gender 14- Privileges and Favoritism 15- Conflicts in the Workplace 16- National Heroes 17- Kashmir Conflict 18- Diagrammatic Representation of Pakistan and India’s Hofstede’s Cultural Dimensions 19- Balanced view of the economic achievements and failures of Pakistan and India 20- Conclusion 21- References

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Pakistan Introduction:

Pakistan, officially the Islamic Republic of Pakistan (Urdu: ), is a sovereign country in South Asia. With a population exceeding 180 million people, it is the sixth most populous country in the world.

Pakistan was founded by Mohammad Ali Jinnah and it emerged as an independent country on August 14, 1947. It is a land of diverse cultural and terrain and has four provinces;

Punjab

Baluchistan

Sindh

Khyber pakhtunkhwa

and Federally Administered Tribal Areas (FATA). Pakistan has a diverse array of landscapes spread among nine major ecological zones. Its territory encompasses portions of the Himalaya, Hindu Kush, and Karakoram mountain ranges, making it a home to some of the world’s highest mountains. Intermountain valleys make up much of the NWFP, and rugged plateaus cover much of Balochistan Province in the west. In the east, irrigated plains along the Indus River and some deserts are spread across the Punjab and Sindh.

Pakistan shares borders with Afghanistan (2,430 kilometers), China (523 kilometers), India (2,912 kilometers), and Iran (909 kilometers). Its coastline totals 1,064 kilometers along the Arabian Sea. Under the 1982 United Nations Convention on the Law of the Sea, Pakistan

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claimed a 200-nautical-mile exclusive economic zone, a 12-nauutical-mile territorial sea, and a 24-nautical-mile contiguous zone for security, immigration, customs, etc.

The name Pakistan literally means "Land of (the) Pure" in Urdu and Persian. It was coined in 1933 as Pakstan by ChoudharyRahmat Ali, a Pakistan Movement activist, who published it in his pamphlet Now or Never, using it as an acronym ("thirty million Muslim brethren who live in PAKSTAN") referring to the names of the five northern regions of the Indian subcontinent: Punjab, North-West Frontier Province (Afghan Province), Kashmir, Sind, and Baluchistan".

Pakistan is a federal parliamentary republic consisting of four provinces and four federalterritories. It is an ethnically and linguistically diverse country, with a similar variation in its geography and wildlife. A regional and middle power, Pakistan has the seventh largest standing armed forces in the world and is also a nuclear power as well as a declared nuclear weapons state, being the only nation in the Muslim world, and the second in South Asia, to have that status. It has a semi-industrialized economy which is the 27th largest in the world in terms of purchasing power and 47th largest in terms of nominal GDP.

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Pakistan at Glance

1. Population 180,440,005 2. Area 796,095 km2 &307,374 sq m 3. Geographic location 30°00'N 70°00'E

4. Coastline length 1100 km

5. Motto Unity, faith and discipline 6. Capital Islamabad 7. Largest City Karachi (population: 11,624,200) 8. Official languages Urdu and English. 9. Regional languages Punjabi, Sindhi, Pashto, Balochi, Saraiki, Hindko, Brahui etc.

10. Major religions Muslim - 97%, Christian, Hindu and others - 3%.

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11. National Anthem Pak sir Zameen Shad bad

12. National Animal Markhor 13. National Bird Chukar 14. National flowerJasmine

15. National tree Cedrusdeodara

16. National fruit Mango

17. National currency Pakistan Rupees (Rs.) (PKR) 18. National sport Hockey

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India Introduction

India, officially the Republic of India is a country in South Asia. It is the seventh-largest country by geographical area, the 2 most populous countries, and the most populous democracy in the world.

The Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the east, India has a coastline of 7,517 kilometers .It is bordered by Pakistan to the west, People’s Republic of China, Nepal, and Bhutan to the north, and Bangladesh and Myanmar to the east. Indian the vicinity of Sri Lanka, Maldives, and Indonesia in the Indian Ocean.

Home to the Indus Valley Civilization and a region of historic trade area and vast empires, Indian subcontinent was identified with its commercial &cultural wealth for much of its long history. Four major religions, Hinduism, Buddhism, Jainism and Sikhism originated country, while the Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium of CE and shaped the region's diverse culture. The British East India Company from the early eighteenth century and colonized by the United Kingdom from the mid-19century, India became an independent nation in 1947after a struggle for independence that was marked by widespread non-violent resistance.

The name India is derived from Indus, which originates from the Old Persian word Hindu. The latter term stems from the Sanskrit word Sindhu, which was the historical local appellation for the Indus River. The ancient Greeks referred to the Indians as Indoi which translates as "the people of the Indus”. The geographical term Bharat , which is recognized by the Constitution of India as an official name for the country, is used by many Indian languages in various subtle guises. The eponym of Bharat is Bharata, a mythological figure that Hindu scriptures describe as a legendary emperor of ancient India. Hindustan was originally a Persian word that meant "Land of the Hindus"; prior to 1947, it referred to a region that encompassed northern India and Pakistan. It is occasionally used to solely denote India in its entirety.

India is a republic consisting of 28 states and 7 union territories with a parliamentary system of democracy.

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States:

1. Andhra Pradesh 2. Arunachal Pradesh 3. Assam 4. Bihar 5. Chhattisgarh 6. Goa 7. Gujarat 8. Haryana 9. Himachal Pradesh 10. Jammu and Kashmir 11. Jharkhand 12. Karnataka 13. Kerala 14. Madhya Pradesh 15. Maharashtra 16. Manipur 17. Meghalaya 18. Mizoram 19. Nagaland 20. Orissa 21. Punjab 22. Rajasthan 23. Sikkim 24. Tamil Nadu 25. Tripura Uttar 26. Pradesh 27. Uttarakhand 28. West Bengal

It has the world's 12th largest economy at market exchange rates and the fourth largest in purchasing power. Economic reforms since 1991 have transformed it into one of the fastest growing economies; however it still suffers from high levels of poverty, illiteracy, disease, & malnutrition. A pluralistic, multilingual, and multiethnic society.

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India At Glance

1. Population 1,210,193,422

2. Area 3,287,263 km & 21,269,219 Sq

3. Geographic location 21°N 78°E

4. Coastline length 7,517 km

5. Motto Truth Alone Triumphs

6. Capital New Delhi

7. Largest City Mumbai(population: 12,691,800)

8. Official languages Hindi and English

9. Regional languages Assamese, Bengali, Bodo, Dogri , Gujarati, Hindi ,Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjab, Sanskrit, Santali, Sindhi, Tamil, Telugu, Urdu

10. Major religions Hindu - 80.5%, Muslim - 13.4%, Christian - 2.3%, Sikh - 1.9%, others - 1.8%, unspecified - 0.1%.

11. National Anthem Jana GanaMana

12. National Animal Tiger

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13. National Bird Peacock

14. National flower Lotus

15. National tree Banyan

16. National fruit Mango

17. National currency Indian Rupee (INR)

18. National sport Hockey

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Management Style

Pakistan:

Pakistani style of management and leadership practices especially when it comes to governmental/semi-governmental organizations seems devoid of any sound ethical or moral principles. The dictatorial style of a typical Pakistani manager seems to be a legacy of decades of colonial rule where the British ruled over India like a master over its colonial subjects/servants. There is a need for greater awareness on the subject matters so that such Machiavellian practices are ground to a halt and a culture of good governance is allowed to flourish.

Rule No. 1 - I am the Law: It should be abundantly clear to your subordinate that rules are subservient to the you the boss he is required to report to. Even the antiquated rules of organization would not be followed because its your personal judgment that is the most important regarding your subordinate. It would be worthwhile for your subordinate to do personal favors in order to get a promotion. Merit or qualification only matters at home.

Rule No. 2 - Rules have to be followed:

Of-course you cannot let your subordinates get away with the rules as well especially when you have to promote some over others on the perceived basis of following the procedures while chastising others. You have to make sure all your juniors know that rules are paramount, so at least they have an impression you are a person who respects rules. Now the trick is to make so many rules and procedures that no normal human being is able to abide by all. Since you know for sure nobody can possibly follow all the rules, you can pick and choose the person who you don't like and throw him out of the organization based on non-conformance to organizational rules and procedures. This way you can even throw out the most competent and qualified person in the organization whom you perceive as a threat to you.

Rule No. 3 - Do the Mistake and Blame it on others:

Rule No. 4 - Nobody is Indispensible:

Rule No. 5 - Emotional Intelligence:

Rule No. 6 - Your Subordinates Have to be Tactful:

Rule No. 7 - Its Not What You Know, Its Who You Know:

Rule No. 8 - Age is Qualification:

Rule No. 9 - You Cannot Benchmark:

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Rule No. 10 - Use a "Line of defense":

India:

India is an enormously hierarchical society (arguably the most hierarchical in the world) and this, obviously, has an impact on management style. It is imperative that there is a boss and that the manager acts like a boss. The position of manager demands a certain amount of role-playing from the boss and a certain amount of deferential behavior from his subordinates. The boss is definitely not expected to perform any seemingly 'menial' tasks such as making coffee for everybody or moving chairs in a meeting room!

Moreover, it is a land of contradiction, on one hand it is one of the fastest growing countries willing to play a leading role in global economy.. Since 1947 independence Indian government is shielded Indian companies from outer competitions which resulted in inefficiencies and status-quo at national level, and also contributed to corruption. Nevertheless, there is new wave of change and development and changes are lead by rise of sectors like software, services, automobile, pharmaceuticals and biotechnology sector. Rise of these sectors proved that Indian managers can compete on world stage even after lots of adversities.

Pest Analysis:

A pest analysis is a scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors

• Political • Economic • Social • Technological

India:

POLITICAL:

These refer to government policies such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

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India is the biggest democracy in the World. The government type is federal republic. Based on English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction with reservations, separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the India is more or less stable. Most of its democratic history, the federal Government of India has been led by the (INC) Indian National Congress.

In India many political factors effect business environment. These are the major factors that affect the political environment

Taxation policy India has a well-developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban &Rural Local Bodies. The power to levy taxes and duties are distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax income, Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales, Stamp Duty, State Excise, Land Revenue, and Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties, Octroi Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc. Privatization Reduce the political interface in the management of enterprises, leading to improved

efficiency and productivity. In India this time do many Government company Good performance but some time later there are facing many problems so the go for privatization.

Deregulation India Government makes some Act to freely do business in India. International trade regulations International trade regulation day by day India makes it flexi able for foreign trade. General initiatives Some policy to first Political initiates for the business environment in In India. Government stability In India past 10 years government is stable. If government is not stable the market will not

improve neither any business will enter nor anyone will invest without the fear of the risk. International stability No wars, no home country problems, and no type of war like Iraq these result uncertainties in the market.

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ECONOMICAL

Economic conditions of an environment have a direct impact on the development of any industry. The recent economic recession in the world has had an impact on India’s economy as well.

Some of the economic indicator as follows:

Inflation

7.24 percent GDP

(PPP)

• Total $4.457 trillion • Per capita $3,693 (Nominal)

• Total $1.848 trillion • Per capita $1,388

GDP by sector

• agriculture: 21.2%, • industry: 25.4%, • services: 53.4% Income distribution

• Lowest 10%3.6% • Highest 10 %31.1% GST

20 percent Unemployment Rate

9.800%

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SOCIAL

Changes in social trends can impact on the demand fora firm's products and the availability and willingness of individuals to work. In the India, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. It also means some firms have started to recruit older employees to tap into this growing labor pool.

It describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part of the social environment. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario India is the second most populous nation in the world with an approximate population of over 1.2billionpeople. This population is divided in the following age structure: 0-14 years – 31.8%, 15-64 years – 63.1% and65 years and above – 5.1%. There has a

• Mobility • Income distribution • Population demographics • Attitude to work and leisure • Standard of education and skills • Working Conditions

TECHNOLOGICAL

New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Today in India 3Gtechnology starts. A heavy infrastructure for bandwidth. BSNL and Reliance have more covered city by optical fibre. India have many Technological Projects. Good Service provider in IT sector ex TCS, Infosys and many more. Today India is a big market in mobile sector here5-6 player operators and new operators launch their services soon.

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(i) IT Development (ii) New Materials and processes (iii) Government technology funding (iv) Speed of technology transfer (v) Software upgrades

Pakistan:

POLITICAL

Political are those factors which are directly control by the political parties and Government they could be able to influence directly in any situation or any industry. So they create a major impact on any industry.

Some of the Political conditions indicators as follow:

Political Instability In Pakistan Political environment are not stable that is the major threats for the multinational companies and industries because no one knows at what time Government will change and with the change Government Policies will also change. Terrorism Terrorism is the major problem that Pakistan is facing is now days that is the most critical factor that discourages multinational companies and industries to invest in the country. Pricing regulation In Pakistan Government dictates the pricing regulations so that will influence the smooth working of multinational companies and industries which will discourage their investment in the country. Rapid change in regulation In Pakistan Government is changing the policies very rapidly so that creates instability

Industry Safety regulations Now Government is trying to give maximum protection to these foreign investors and passing number of laws to make them feel more safe and reliable. Investment Friendly environment Government is trying to provide investor friendly environment to give the more benefit to the investors and give them maximum safety.

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ECONOMICAL

Economic conditions of an environment have a direct impact on the development of any industry. The recent economic recession in the world has had an impact on Pakistan’s economy as well.

Pakistan's economy mainly encompasses textiles, chemicals, food processing, agriculture, tea and other industries. In 2005, it was the third fastest growing economy in Asia. Since the beginning of 2008, Pakistan's economic outlook has taken a dramatic downturn. Security concerns stemming from the nation's role in the War on Terror have created great instability and led to a decline in FDI from a height of approximately $8bn to $3.5bn for the current fiscal year. Concurrently, the insurgency has forced massive capital flight from Pakistan to the Gulf. Combined with high global commodity prices, the dual impact has shocked Pakistan's economy, with gaping trade deficits, high inflation and a crash in the value of the Rupee, which has fallen from 60-1 USD to over 90-1 USD in a few months. For the first time in years, it may have to seek external funding as Balance of Payments support

All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society. A “booming” or growing economy has low unemployment, high spending power and high stakeholder confidence. While an economy like ours is facing a lot of economic problems i.e. high unemployment, high rate of inflation, population explosion, low spending power and low stakeholder confidence etc which results in less demand for expensive products of need. Moreover people hesitate to invest money in such organizations that are in a country which lack economic stability (i.e. facing bomb blasts or drone attacks etc rapidly). Therefore, Government should ensure the safety of the investor’s money and take steps to encourage more people to invest so that it can become financially strong like other western countries.

Some of the economic indicators as follow:

Inflation

6.90 percent

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GDP

(PPP)

• Total $488.580 billion • Per capita $2,787 (Nominal)

• Total $210.566 billion • Per capita $1,201

Income distribution

• Highest 10% 26.71 • Lowest 10% 4.36

GST

16%

Unemployment Rate

5.600%

SOCIAL

Social analysis is directly attached with the people and with the culture in which they are working and if the businesses try to dictate the social factors it will create threats to that industry and if they work within the social norms then social factor become the key to success. One of the main reasons why big companies like Google and Facebook etc. don’t open their offices in Pakistan is because of the social norms and religious issue.

On the other hand, cultural aspects are equally essential in order to understand the various needs of different individuals that belong to different cultures.

Population growth rate Age distribution Career attitudes

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Consumer behavior Religion and culture itself

In summary organizations must be able to offer products and services that aim to complement and benefit people’s lifestyle and behavior. Moreover, if organizations do not respond to changes in society they will lose market share and demand for their product.

TECHNOLOGICAL

Technology is the most known word in the modern world so any advancement in the technology affects the industry and if industry settles them accordingly then its open a lot of door of success and achievement if they do not respond to the advancement then that particular company goes into the darkness.

Technological advances have greatly changed the manner in which businesses operate. Organizations use technology in many ways, they have

1. Internet and other means of exchanging information including telephone come under technological infrastructure.

2. MIS (management information system) helps in managing a business.

3. Technology involving hardware such as laptops, desktops, Bluetooth devices, photocopiers, and fax machines used to transmit and record information.

Technology has created a society which expects instant results. This technological revolution has increased the rate at which information is exchanged between an organization and its stakeholders and customers etc at a very fast rate. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment. Thus, a Business should take immediate steps to make its information easily accessible to its customers, employees and stakeholders. Else it might fail to attract new customers/investors as well as to retain the old/ current customers and the stakeholders. However an ability to react quickly also creates extra pressure, as businesses are expected to deliver on their promises within ever decreasing timescales so they should became more efficient in order to fulfill the demands of their customers etc.

Some of the drawbacks of technology in Pakistan are as follows:

Lack of electricity Lack of Natural gas Lack of machinery to extract raw materials

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Communication styles:

Pakistan:

Pakistanis maintain close body contact but not with the opposite sex. Both men and women generally hug each other while meeting even for the first time. Women also kiss each other on the cheeks but men don’t. Holding hands and putting arm around the other person of the same sex are normal and show closeness and intimacy.

When meeting a female Pakistani, a male should not try to shake her hand until and unless she extends her hand first. A foreigner female can, however, shake hand with a male Pakistani. There is no set distance while talking to a Pakistani. Also making a regular eye contact is not important. In fact, maintaining a constant eye contact with a person of opposite sex is considered rude and unethical.

Pakistanis don’t use a lot of gesturing while talking but they don’t mind if the foreigners do as they are from another culture and are accepted as such. Most Pakistanis like to touch while talking. This usually consists of putting hand over your shoulder or holding your hand occasionally. Pakistanis often interject while others are talking and it is considered normal if two people start a conversation during a group meeting. They are also very loud and forceful in getting their point of view across. It is however considered impolite and rude to be direct in their conversation. Pakistanis are quite diplomatic when expressing views about others.

India:

An arm’s length would be a good distance to keep between you and the person to whom you are speaking.

Most Indians make direct eye contact during conversation; however, a woman from a conservative and/or traditional/rural background may speak to you from behind the veil of her sari. It is not acceptable to touch someone during conversation unless you know the person well. For example, an older person could take offence if you touch him or her because you are not a Hindu or, if you are a man, a woman would feel very uncomfortable and think you are making a pass at her.

During most large social and official gatherings men and women will tend to stay clustered in their own groups, however both genders tend to mix more freely with each other during smaller family or social gatherings. If you are not sure about a non-verbal cue, do not hesitate to ask your

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friend or business associate or host. Professionals in India would keep the same distance a business colleague would keep with you in Canada, unless you know them very well.

Pointing a finger at someone would be considered rude. If you need to get the attention of the waiter in a restaurant make eye contact or try to gesture to him with your right hand/arm stretched out, palm facing down and moving your fingers towards yourself.

Display of Emotion:

Pakistan:

Pakistanis are very polite people and generally do not display anger, hatred and other negative emotions in public. They however do express their affection and love for others in public. They like to praise others in public and expect the same from others. In rare circumstances would they express their distaste or hatred especially for those of other tribes, ethnic background or religion.

India:

Public displays of affection with the same gender are more readily accepted than with the opposite sex. In cosmopolitan cities such as New Delhi, Mumbai, and Bangalore, displays of affection are more common; whereas in Chennai, people are more traditional and conservative in showing affection in public.

However, people are more used to sharing their good tidings, sorrow and anger in public. Again, emotions may not readily surface within a work environment where a senior officer/superior may be present

Preferred managerial Qualities:

Pakistan:

Education and experience are regarded as the most important qualities of a local as well as non-local superior/manager. Family background and personal network are also considered very important for local managers. Leadership and hard work, though taken positively, are considered the least important. However, making quick and timely decisions and sticking by your staff are considered extremely important qualities. Pakistanis are used to giving and taking direct orders and consensus building and teamwork are considered more of a western thing. Getting to know your subordinate staff on a personal level helps at times but can create more work related hassles especially if the staff members are female or of much lower cadre.

Getting to know "how your staff view you" is very difficult and tricky in Pakistan. On the surface, Pakistanis are very polite and would never tell you on your face if they don’t like you or

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something about you. Pakistanis try their best to get along with their superiors and would seldom complain about the management style. But if you are a good manager, it will definitely show in your staff’s performance at work. Good managers can usually get a lot of mileage out of their staff in Pakistan. Pakistanis are usually hard working people and don’t mind working overtime and on weekends. But they expect due recognition and appreciation. Cash compensation works well with low-paid staff while commendation letter, gifts and upgrading of position/title goes well with other, senior staff.

India:

Seniority, education and experience are highly valued. However, human qualities such as respect for local knowledge, respect for an individual’s age, patience, and understanding are equally important. Most importantly, never cause someone to lose face, especially in front of others. The co-operation and respect you earn from your staff will indicate to you their opinion of you.

Hierarchy and Decision-making

Pakistan:

In government offices in Pakistan, the main decision makers are the top bosses of the departments. Each government department is headed by a Secretary (equivalent of Deputy Minister in Canada) who decides all matters in the department. Sometimes, major policy decisions are made by a forum of secretaries, which are then approved by the cabinet. This is a common practice although in theory, powers of decision-making are delegated to the lower tiers. Inter-departmental meetings are regularly held in which opinions are sought from field managers/supervisors but it is the head of the department who ultimately decides which idea to pursue further.

The practice is somewhat different in the non-government and private sector organizations where ideas are generated and decisions made in a more participatory manner. In these organizations, any staff member can come up with an idea and this is then discussed jointly in staff meetings and decisions are made accordingly. It is however the top boss who has the final say in any decision-making.

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Both public and private organizations follow a hierarchical management style and one has to approach his/her immediate supervisor for any idea or issue. It is then up to that supervisor to carry forward the idea or issue to an appropriate forum

India:

Power and decision-making in the work place tend to be based on rigid, hierarchical communication patterns and lines of authority, both in the private and public sectors.

In western countries, it is not entirely necessary for face-to-face communications, as business can be done through telephone communication. However, face-to-face communication is preferred in India. In western countries one can get to the point without having to get into casual conversation before proceeding to discuss matters of concern. Verbal communications in general tend to be informal and casual conversation typically precedes discussion of matters of concern

Religion, Class, Ethnicity, & Gender:

Pakistan:

Gender

Pakistan has a purely male-dominated society where very little recognition is accorded to female segment of the society. Mostly consisting of a tribal set-up, the Pakistani society is run by norms and traditions set by men. The religion of Islam also provides enormous powers to the men and all decisions about women’s involvement in the society e.g. education, marriage, work, travel etc. are made by their family male members. Pakistanis don’t like to discuss their women in public and gender equality/women’s rights are commonly perceived as a western effort to undermine their society.

Religion

Religion is very strong in Pakistan and majority either follow or are forced to follow the religious beliefs and practices. The clergy has a very strong influence on the day-to-day affairs of the majority of the population. It is a serious crime to talk against Islam in Pakistan.

Class

Pakistani society is very class conscious and people are known and respected for who they are rather than what they are. The class system in Pakistan is purely economic and political in nature. Landowners are generally preferred over businessmen. Having a family network in the armed

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forces, government organizations and political powers is considered important. The rural areas are still dominated by feudal lords who control the land and other resources of their respective areas. Although less visible in the urban areas, family background has a significant influence over how people behave with each other in cities.

Ethnicity

Pakistan is mainly divided into five ethnic groups. The majority belong to Punjabi group living in the plains of Punjab Province. Then there are Sindhis in the southern province of Sindh, Baloch in the southwestern province of Balochistan and Pathans belonging to the North West Frontier Province. The Muhajirs (immigrants) migrated from India at the time of independence and are scattered all over the country but with visible majorities in the cities of Karachi and Hyderabad. Like the class system, the ethnic background is considered an important factor in every day life in Pakistan. People tend to prefer and favour those of their ethnic group. Because of the different languages these ethnic groups speak, there is a strong tendency among people to relocate to an area with the majority belonging to the same ethnic group.

India:

Gender

In most work places the issues of gender, religion, class and ethnicity may not be visible, but they do exist below the surface. A woman may face gender discrimination from her superiors and men who work for her.

Religion

While religion may not be discussed or be an issue at work, recent Hindu-Muslim tensions have lead to many riots in public places and created divisions among people. A visitor must keep in mind that India is home to Hinduism, Islam, Christianity, Judaism, Sikhism, Jainism, Zoroastrianism, and Buddhism.

Class

Class is becoming more of an issue especially among many "nouveau riche". Suddenly when a lower or lower-middle class person comes into money, class distinctions become more evident. Such a person may be the envy of many colleagues within the work place.

Ethnicity

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Unless someone identifies himself/herself as a scheduled caste or scheduled tribe or their surname identifies them as such, it does not come up as an issue in the work place within an urban setting. However, within a rural context, everyone within that particular small community will know your background and you will have to live within certain prescribed norms.

Privileges and Favoritism

Pakistan:

Yes, Pakistanis take pride in the fact that they know the boss on a more personal basis. Expectations from a boss one knows personally are usually high in terms of increased fringe benefits like office car and telephone for personal use. Hiring of family and friends is common in almost all organizations and Pakistanis prefer to hire their near and dear ones. This also helps in maintaining a close relationship with their colleagues and subordinates. It also has to do with the poor economic conditions in Pakistan and people feel obligated to support their family members and friends by providing them jobs.

India:

Preferred treatment, a pay increase, hiring of his/her friends or family does exist, both in the public and private sectors. However, nowadays, people have to justify their actions and the person who accepts special privileges has to prove him or herself worthy of the position they hold. Today, the granting of special privileges will not go without being questioned or noticed.

Conflicts in the Workplace:

Pakistan:

Pakistanis generally prefer to be discreet about their problems. Whether the problem is work related or personal, they prefer having a quiet and private discussion about it. They don’t appreciate others to know their problems. Pakistanis appreciate direct and frank discussion, however, they prefer their colleagues to be polite and understanding

India:

In many Indian cultures, harmony, saving face and avoidance of conflict are important principles guiding communication, to the extent that avoidance of conflict may be valued more than clarity

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of meaning. However, as in Canada, it is important to clarify what one does not understand right away. Any disagreement should be handled delicately.

Given that saving face is very important, you should call a meeting with your colleague and confront him or her directly. Disagreements can usually be resolved amicably. Most often, problems arise due to miscommunication. Lay out your frustrations and ask the individual to do the same and resolve the situation as a team. If however the problem persists, inform the individual that you would like to give her/him another chance to resolve the issue amongst yourselves before you take the matter to your superior.

National Heroes:

Pakistan:

Most of the national heroes are from the early Muslim and Arab history such as Hazrat Ali, Umar Farooq, Mohammad Bin Qasim, Tariq Bin Ziad and MehoodGhaznavi. Since majority of Pakistanis are descendants of the Muslim conquerors who invaded the Central Asia and Indian Subcontinent and spreaded Islam in this part of the world, they take pride in their heroes and what they did for the religion.

There are also some national heroes who actively participated in the freedom struggle against the British occupation of India and later helped in the independence of Pakistan. They include Mohammad Ali Jinnah (commonly referred to as Quaid-e-Azam or Great Leader) who led the independence struggle and was the first head of state, Alama Mohammad Iqbal who was a great poet and dreamt about having an independent Pakistan, and Sir Syed Khan who started the first educational institution (now a university) in the Indian Subcontinent to provide education to Muslims.

There are also some sports heroes from the most popular sport Cricket. These include names like Imran Khan, JavedMiandad and Hanif Mohammad

India:

Mahatma Gandhi is considered the father of the nation. RavindraNath Tagore, the poet and writer from West Bengal, is well known. Each region has its own "national" hero. Shivaji in Maharashtra, Rani ChittorChannama in Karnataka etc. These days many of the national heroes are film stars. The film heroes set new trends and have a lot of visibility -- in larger than life image/posters along sidewalks, in movie theatres and in television commercials

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Kashmir conflict

The Kashmir conflict is a territorial dispute between India and Pakistan over the Kashmir region, the most northwesterly region of South Asia. The two countries have fought at least three wars over Kashmir—the Indo-Pakistani Wars of 1947, 1965 and 1999—and several skirmishes over the SiachenGlacier.India claims the entire state of Jammu and Kashmir and administers approximately 45.1% of the region, including most of Jammu, the Kashmir Valley, Ladakh, and the Siachen Glacier. India's claim is contested by Pakistan, which controls approximately 38.2% of Kashmir, consisting of Azad Kashmir and the northern areas of Gilgit and Baltistan.

The conflict of Kashmir has its origin in 1947, when British India was separated into the two states of Pakistan and India. As part of the partition process, both countries had agreed that the rulers of princely states would be allowed to opt for membership of either Pakistan or India, or in special cases to remain independent. India claims Kashmir on the basis of the Instrument of Accession, a legal agreement with Kashmir's leaders executed by Maharaja Hari Singh, then ruler of Kashmir, agreeing to accede the area to India. Pakistan claims Kashmir on the basis of a Muslim majority and of geography, the same principles that were applied for the creation of the two independent states. India referred the dispute to the United Nations on 1 January 1948. In a resolution in 1948, the UN asked Pakistan to remove most of its troops. A plebiscite would then be held. However, Pakistan failed to vacate the region. A ceasefire was reached in 1949 and a Line of Control was established, dividing Kashmir between the two countries.

Pakistan's position is that the people of Jammu and Kashmir have the right to determine their future through impartial elections as mandated by the United Nations. India has stated that it believes that Kashmir is an integral part of India, referring to the 1972 Simla Agreement and to

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the fact that elections take place regularly. Certain Kashmiri independence groupsbelieve that Kashmir should be independent of both India and Pakistan.

Diagrammatic Representation of Pakistan and India’s Hofstede’s Cultural Dimensions

Power distance:

Pakistan:

This dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards thee inequalities amongst us.

At a score of 55, Pakistan is a hierarchical society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.

India:

India scores high on this dimension, 77, indicating an appreciation for hierarchy and a Top – Down Structure in society and Organizations. If one were to encapsulate the Indian attitude, one could use the following words and phrases: dependent on the boss or the power holder for direction, acceptance of un-equal rights between the power-privileged and those who are lesser down in the pecking order, immediate superiors accessible but one layer above less so,

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paternalistic leader, management directs, gives reason / meaning to ones work life and rewards in exchange for loyalty from employees. Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members. Employees expect to be directed clearly as to their functions and what is expected of them. Control is familiar, even a psychological security, and attitude towards managers are formal even if one is on first name basis. Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder.

Individualism:

The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”.

In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist society’s people belong to ‘in groups’ that take care of them in exchange for loyalty.

Pakistan:

Pakistan, with a score of 14 is considered a collectivistic society. This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employee’s in-group, management is the management of groups.

India:

India, with a score of 48 is a society with clear collectivistic traits. This means that there is a high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of one’s defined in-group(s). In such situations, the actions of the individual are influenced by various concepts such as the opinion of one’s family, extended family, neighbors, work group and other such wider social networks that one has some affiliation toward. For a collectivist, to be rejected by one’s peers or to be thought lowly of by one’s extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptiness. The employer/employee relationship is one of expectations based on expectations –

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Loyalty by the employee and almost familial protection by the Employer. Hiring and promotion decisions are often made based on relationships which are the key to everything in a Collectivist society.

Masculinity / Femininity

A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organizational behavior.

A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine).

Pakistan:

Pakistan scores 50 on this dimension and is thus a masculine society. In masculine countries people “live in order to work”, managers are expected to be decisive and assertive, the emphasis is on equity, competition and performance and conflicts are resolved by fighting them out.

India:

India scores 56 on this dimension and is thus considered a masculine society. Even though it is mildy above the mid-range in score, India is actually very masculine in terms of visual display of success and power. The designer brand label, the flash and bling that goes with advertising one’s success, is widely practiced. However, India is also a spiritual country with millions of deities and various religious philosophies. It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and abstinence. This often reigns in people from indulging in Masculine displays to the extent that they might be naturally inclined to. In more Masculine countries the focus is on success and achievements, validated by material gains. Work is the center of one’s life and visible symbols of success in the work place are very important.

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Uncertainty avoidance:

The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score.

Pakistan:

Pakistan scores 70 on this dimension and thus has a high preference for avoiding uncertainty. Countries exhibiting high uncertainty avoidance maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation.

India:

India scores 40 on this dimension and thus has a medium low preference for avoiding uncertainty. In India there is acceptance of imperfection; nothing has to be perfect nor has to go exactly as planned. India is traditionally a patient country where tolerance for the unexpected is high ; even welcomed as a break from monotony. People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without questioning. Rules are often in place just to be circumvented and one relies on innovative methods to “bypass the system”. A word used often is “adjust” and means a wide range of things, from turning a blind eye to rules being flouted to finding a unique and inventive solution to a seemingly unsurmoutable problem. It is this attitude that is both the cause of misery as well as the most empowering aspect of the country. There is a saying that “nothing is impossible” in India, so long as one knows how to “adjust”.

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Balanced view of the economic achievements and failures of Pakistan and India during the span of the last five decades.

India and Pakistan are completing five decades of their independence. Since the partition, the relationship between the two countries has been uneasy and characterized by a set of paradoxes. There is a mixture of love and hate, a tinge of envy and admiration, bouts of paranoia and longing for cooperation, and a fierce rivalry but a sense of proximity, too. The heavy emotional overtones have made it difficult to sift the facts from the myths and make an objective assessment. There are in fact only two extreme types of reactions on each side. Either there are those who always find that the grass is greener on the other side of the pasture or those who are totally dismissive of the accomplishments of the other side.

First, the common successes shared by both the countries:

Despite the prophets of gloom and doom on both sides of the fence, both India and Pakistan have succeeded in more than doubling their per capita incomes. This is a remarkable feat considering that the population has increased fourfold in case of Pakistan and threefold in India. Leaving aside the countries in East Asia and China, very few large countries have been able to reach this milestone.

The incidence of poverty (defined as $1 per day) has also been reduced significantly although the number of absolute poor remains astoundingly high. However, the level of poverty is lower in Pakistan.

Food production has not only kept pace with the rise in population but has surpassed it. Both countries, leaving aside annual fluctuations due to weather conditions, are self-sufficient in food. (Pakistan exports its surplus rice but imports small volumes of wheat).

Food self-sufficiency has been accompanied by improved nutritional status. Daily caloric and protein intake per capita has risen by almost one-third but malnourishment among children is still high. The cracks in the dualistic nature of the economy -- a well-developed modern sector and a backward traditional sector -- are appearing fast in both the countries. A buoyant middle class is emerging. The use of modern inputs and mechanization of agriculture has been a leveling influence in this direction. But public policies have not always been consistent or supportive.

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Second, the common failures of the two countries:

The relatively inward-looking economic policies and high protection to domestic industry did not allow them to reap the benefits of integration with the fast-expanding and much larger world economy. This has changed particularly since 1991 but the control mind-set of the politicians and the bureaucrats has not changed. The centrally planned allocation of resources and "license raj" has given rise to an inefficient private sector that thrive more on contacts, bribes, loans from public financial institutions, lobbying, tax evasion and rent-seeking rather than on competitive behavior. Unless both the control mind-set of the government and the parasitic behavior of the private industrial entrepreneurs do not change drastically, the potential of an efficient economy would be hard to achieve. This can be accomplished by promoting domestic and international competition, reducing tariff and non-tariff barriers and removing constraints to entry for newcomers.

The weaknesses in governance in the legal and judicial system, poor enforcement of private property rights and contracts, preponderance of discretionary government rules and regulations and lack of transparency in decision making act as brakes on broad-based participation and sharing of benefits by the majority of the population.

In terms of fiscal management, the record of both the countries is less than stellar. Higher fiscal deficits averaging 7-8 percent of GDP have persisted for fairly long periods of time and crowded out private capital formation through large domestic borrowing. Defense expenditures and internal debt servicing continue to pre-empt large proportion of tax revenues with adverse consequences for maintenance and expansion of physical infrastructure, basic social services and other essential services that only the government can provide. The congested urban services such as water, electricity, transport in both countries are a potential source of social upheaval.

The state of financial sector in both countries is plagued with serious ills. The nationalization of commercial banking services, the neglect of credit quality in allocation decisions, lack of competition and inadequate prudential regulations and supervision have put the system under severe pressure and increased the share of non-performing assets in the banks’ portfolio. The financial intermediation role in mobilizing and efficiently allocating domestic savings has been seriously compromised and the banking system is fragile. Both countries are now taking steps to liberalize the financial sector and open it up to competition from foreign banks as well as private banks.

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Third, the areas where India has surpassed Pakistan:

There is little doubt that the scientific and technological manpower and research and development institutions in India are far superior and can match those of the western institutions. The real breakthrough in the Indian export of software after the opening up of the economy in 1991 attests to the validity of the proposition that human capital formation accompanied by market-friendly economic policies can lift the developing countries out of low-level equilibrium trap.

Indian scientists working in India excel in the areas of defense technology, space research, electronics and avionics, genetics, telecommunications, etc. The number of Ph.Ds produced by India in science and engineering every year -- about 5,000 -- is higher than the entire stock of Ph.Ds in Pakistan. The premier research institutions in Pakistan started about the same time as India have become hotbed of internal bickering and rivalries rather than generator of ideas, processes and products

Related to this superior performance in the field of scientific research and technological development is the better record of investment in education by India. The adult literacy rate, female literacy rate, gross enrollment ratios at all levels, and education index of India have moved way ahead of Pakistan. Rapid decline in total fertility rates in India has reduced population growth rate to 1.8 percent compared to 3.0 percent for Pakistan.

Health access to the population and infant mortality rates are also better in India and thus the overall picture of social indicators, although not very impressive by international standards, emerges more favorable. The two most important determinants of Pakistan’s dismal performance in social development are its inability to control population growth and the lack of willingness to educate girls in the rural areas.

Fourth, the areas where Pakistan has performed better than India:

The economic growth rate of Pakistan has been consistently higher than India. Starting from almost the same level or slightly lower level in 1947, Pakistan’s per capita income today in US nominal dollar terms is one-third higher (430 versus 320) and in purchasing parity dollar terms is two-third higher (2,310 versus 1,280). The latter suggests that the average Pakistani has enjoyed better living standards and consumption levels in the past but the gap may be narrowing since early 1990s and these days India is ahead of us because of the negligence and wrong policies of the Government and political parties who provokes government to make such policies. Had the population growth rate in Pakistan been slower and equaled that of India, this gap would have

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been much wider and the per capita income in Pakistan today would have been twice as high and the incidence of poverty further down.

Although both India and Pakistan have pursued inward-looking strategies, the anti-export bias in case of Pakistan has been comparably lower and the integration with the world market faster. The trade-GDP ratio in PPP terms is twice that of all South Asian countries. Pakistan’s export growth has been stronger and the composition of exports has shifted from primary to manufactured goods; albeit the dominance of cotton-based products has enhanced its vulnerability.

Domestic investment rates in Pakistan have remained much below those of India over the entire span primarily due to the relatively higher domestic savings rates in the latter. But the efficiency of investment as measured by the aggregate incremental capital-output ratio or total factor productivity has been higher in case of Pakistan and, to some extent, compensated the lower quantity of investment.

Moreover, the level of poverty in Pakistan is better than India which is 24% population below the poverty line and India 29.8%. Furthermore, the level of Inflation and unemployment is also stable than India.

CONCLUSION

What is the bottom line then? The overall record looks mixed. Pakistan scores high on income and consumption growth, poverty reduction and integration with the world economy. India has done very well in developing its human resource base and excelled in the field of science and technology. Both countries face a set of common problems -- the inherited legacy of a control mind-set among the government and rent-seeking private sector, widespread corruption, poor fiscal management, weak financial system and congested and overcrowded urban services. But there is an important and perceptible positive shift in most of the indicators of India since 1991. Export growth rates have almost doubled, GDP growth is averaging 6 to 7 percent in recent years, current account deficit is down and foreign capital flows for investment have risen several fold. The edge that Pakistan has gained over India in most of these indicators until 1990 is fast eroding. Pakistan, on the other hand, has made greater progress in privatization of state owned enterprises and in attracting foreign investors to expand power generating capacity in the country.

How does the future look like? Since 1991, both India and Pakistan have embarked on a policy of liberalization, outward orientation and faster integration with the global economy. The initial responses have been very positive. As outlined earlier, portfolio and foreign direct investment

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flows in the last few years have surpassed those accumulated over the last 20-25 years. Indian exports recorded an increase of 50 percent since 1991 while Pakistan, despite a setback due to failure of successive cotton crops, have expanded by two-thirds since 1990. The political uncertainty in India has been minimized after the elections and adoption by the coalition government of the Congress’ agenda on economic reforms. This combination of political stability, economic policy credibility and well developed human resource base places India at an advantage today. But there is no earthly reason as to why we in Pakistan cannot put our house in order, strike a consensus among the two major political parties on the contours of our economic policy direction, stop brick bating each other for the larger sake of the country’s interests and avoid promoting contrived and perceived sense of economic instability.

The imperatives of globalization and integration with the world economy dictate that the countries that are not agile and do not seize the opportunities at the right time are likely to be losers. What is encouraging is that the economic policy stance of both major parties in Pakistan is identical, i.e., liberalization of the economy. We have made a head start and let us not lose this momentum by narrow-minded and purely self-serving interests. The destiny of a nation depends upon the hard work, discipline and internal cohesion of its people and the vision of its leaders. Let our future generations not blame our leaders for failing to leave a legacy of prosperity and hope for them.

Before entering any country to start business there, the business man should give most of the importance to the uncertainty avoidance in this context that wherever he/she is planning to start the business, that country should have a stable economic, political, and environmental conditions. He/she should not plan to enter such country which is facing bombardments etc. As by doing so he/she will risk the finances of the company, lives of the people who will come there to work, as well as the environment will be full of tension thus people will not be able to work with full concentration etc.

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References

http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Economy_of_Pakistan

http://en.wikipedia.org/wiki/Economy_of_india

http://www.aneki.com/comparison.php?country_1=India&country_2=Pakistan

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Table of Contents

1. Distribution of Work

2. SAMSUNG Introduction

3. SONY Introduction

4. SAMSUNG Organizational Chart

5. SONY Organizational Chart

6. SAMSUNG Product’s line & portfolio

7. SONY Product’s line & portfolio

8. SAMSUNGSWOT Analysis

9. SONYSWOT Analysis

10. CSR by SAMSUNG

11. CSR by SONY

12. Application of the Hofstede’s Cultural Dimensions on

SAMSUNG

13. Application of the Hofstede’s Cultural Dimensions on

SONY

14. Conclusion & References

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Distribution of Work

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“EVERYONE’S INVITED”

Variations in the Logo

Logo Represents:

The current Samsung logo design is intended to emphasize flexibility and simplicity while

conveying a dynamic and innovative image through the ellipse, the symbol of the universe and

the world stage. The openings on both ends of the ellipse where the letters "S" and "G" are

located are intended to illustrate the company's open-mindedness and the desire to communicate

with the world. The English rendering is a visual expression of its core corporate vision,

excellence in customer service through technology.

The basic color in the logo is blue, which symbolizes stability and reliability, which are precisely

what the company wishes to accomplish with its customers. It also stands for social

responsibility as a corporate citizen, a company official explained.

History

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Samsung was founded in 1938 and by Lee buyng- Chull. It is aSouth Korean company whose

headquarter is in Samsung town, Seoul.Up to 1969, Samsung was a Korean firm that dealt with

greengrocery and dried fish. Then, in 1969 SEC (Samsung Electronic Company) was founded to

manufacture black-and-white TV sets for low-end consumers. In 1970’s it entered into

semiconductor business. In 1974, it purchased Korea Semiconductor Company and began its

semiconductor industry under the leadership of their chairman Kun He Lee. Samsung raised with

a remarkable speed, to become the world’s leading memory chip producer, ranking 2nd just

behind Intel. In the meantime, the earnings from memory division were being used to invest in

various technology products like mobile phones, liquid crystal displays etc. These businesses

helped Samsung in generating the second-largest net profit of any electronic company outside

the US.

Current CEO and Chairman of SAMSUNG are:

CEO: Choi Gee-Sung

Chairman: Yoonwoo Lee

Samsung Electronics:

The headquarters of Samsung Sanghoe in Daegu in the late-1930s

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Samsung Electronics Co., Ltd is a South Korean multinational electronics company

headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group and

was the world's largest technology company by revenues from 2009 to 2012. Samsung

Electronics has assembly plants and sales networks in 61 countries and employs around 221,000

people.

Samsung Electronics is the world's largest mobile phone maker by 2011 unit sales and world's

second-largest semiconductor chip maker by 2011 revenues (after Intel Corporation). It has been

the world's largest television manufacturer since 2006 and the world's largest maker of LCD

panels for eight consecutive years. It has the largest market share worldwide in memory chips.

The company was the world's largest vendor of smartphones in 2011. Samsung has also

established a prominent position in the tablet computer market, with the release of the Android-

powered Samsung Galaxy Tab.

“Make Believe”

Variation in logo

Logo Represents

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Two concepts were combined to create the name 'Sony'. One was the Latin word 'sonus' which is

the root of words such as 'sound' and 'sonic'. The other was 'sonny boy,' a popular expression

used in Japan at the time to describe a young person with a free and pioneering spirit. The new

name perfectly captured the mood of the company as a group of young people with the energy

and passion for unlimited creation.

History

Sony found its beginning in the wake of World War II. In 1946, Masaru Ibuka started an

electronics shop in a bomb-damaged department store building in Tokyo. The company had $530

in capital and a total of eight employees. The next year, he was joined by his colleague, Akio

Morita, and they founded a company called Tokyo Tsushin Kogyo (Tokyo Telecommunications

Engineering Corporation). The company built Japan's first tape recorder, called the Type-G. In

1958 the company name was changed to Sony.

In the early 1950s, Ibuka traveled in the United States and heard about Bell Labs' invention of

the transistor. He convinced Bell to license the transistor technology to his Japanese company,

for use in communications. Ibuka's company made the first commercially successful transistor

radios. By the mid 1950s, American teens had begun buying portable transistor radios in huge

numbers, helping to propel the fledgling industry from an estimated 100,000 units in 1955 to 5

million units by the end of 1968.

Sony co-founder Akio Morita founded Sony Corporation of America in 1960. In the process, he

was struck by the mobility of employees between American companies, which was unheard of in

Japan at that time. When he returned to Japan, he encouraged experienced, middle-aged

employees of other companies to reevaluate their careers and consider joining Sony. The

company filled many positions in this manner, and inspired other Japanese companies to do the

same. Moreover, Sony played a major role in the development of Japan as a powerful exporter

during the 1960s, 70s, and 80s. It also helped to significantly improve American perceptions of

"made in Japan" products. Known for its production quality, Sony was able to charge above-

market prices for its consumer electronics and resisted lowering prices.

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In 1971, Masaru Ibuka handed the position of president over to his co-founder Akio Morita.

Sony began a life insurance company in 1979, one of its many peripheral businesses. Amid a

global recession in the early 1980s, electronics sales dropped and the company was forced to cut

prices. Sony's profits fell sharply. "It's over for Sony," one analyst concluded. "The company's

best days are behind it." Around that time, Norio Ohga took up the role of president. He

encouraged the development of the Compact Disc in the 1970s and 80s, and of the PlayStation in

the early 1990s. Ohga went on to purchase CBS Records in 1988 and Columbia Pictures in 1989,

greatly expanding Sony's media presence. Ohga would succeed Morita as chief executive officer

in 1989. Sony Group Headquarters at Sony City in Minato, Tokyo.

Under the vision of co-founder Akio Morita and his successors, the company had aggressively

expanded into new businesses. Part of its motivation for doing so was the pursuit of

"convergence," linking film, music, and digital electronics via the Internet. This expansion

proved unrewarding and unprofitable, threatening Sony's ability to charge a premium on its

products as well as its brand name. In 2005, Howard Stringer replaced Nobuyuki Idei as chief

executive officer, marking the first time that a foreigner has run a major Japanese electronics

firm. Stringer helped to reinvigorate the company's struggling media businesses, encouraging

blockbusters such as Spider-Man while cutting 9,000 jobs. He hoped to sell off peripheral

business and focus the company again on electronics. Furthermore, he aimed to increase

cooperation between business units, which he described as "silos" operating in isolation from one

another. In a bid to provide a unified brand for its global operations, Sony introduced a slogan

known as "make believe" in 2009.

Despite some successes, the company faced continued struggles in the mid- to late-2000s. It

became known for its stagnancy, with a fading brand name. In 2012, Kazuo Hirai was promoted

to president and CEO, replacing Sir Howard Stringer. Shortly thereafter, Hirai outlined his

company-wide initiative, named "One Sony" to revive Sony from years of financial losses and

bureaucratic management structure, which proved difficult for former CEO Stringer to

accomplish, partly due to differences in business culture and native languages between Stringer

and some of Sony's Japanese divisions and subsidiaries. Hirai outlined 3 major areas of focus for

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Sony's electronics business, which include imaging technology, gaming and mobile technology,

as well as a focus on reducing the major losses from the television business.

Samsung Organizational Chart

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Sony Management Structure

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Product’s line & portfolio

SAMSUNG

TV + Video Mobile Photo Computing Home

Appliances

Accessories

Television Cell Phones Cameras Laptops Washers &

Drayers

TV Accessories

Blu-ray &

DVD Players

Tablets Camcoders All-in-One PCs Refrigerators Cell Phone Acessories

Home Theater

Systems

Galaxy note SD cards Tablet PCs Microwaves Tablet Accessories

Laptops Chromebook Dishwashers Printer Toner &

Supplies

Chromebook Monitors Ranges Laptop Acessories

Media

Players

Printers &

Multifunctio

n

LED

Lighting

Digital Camera

Accessories

Memory &

Storage

More accessories

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SONY Product’s line & portfolio

Computers

Tablets &

eReaders

Cameras &

Camcorders

TV&

Video

Home

Audio

Personal

Audio

Playstation

& Games

Mobile

Phones

Product

Services

Laptops &

Desktops

Tablets

Digital Cameras Televisions

Sony Home

Theater

Systems

Audio &

Headphon

es

Playstation

Vita

Andriod

Smartphones

PC Setup,

installation &

repair

Reader

Digital

Booke

Digital Video

Cameras

Blu-ray &

DVD

Players

Headphones

& Earbuds

Sony

Walkman

MP3 Player

PSP

PS2

PS3

Mobile

Phone

Accessories

TV &

HomeTheater

installation

Sony Home

Theater

Systems

Stereo

Components

& Spearers

Portable

speakers

Video

Games

Extended

Service Plans

CDplayers

&

Boomboxes

Playstation

accessories

Voice

recorders &

Microphone

s

Car Audio

Marine

Audio

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SAMSUNG SWOT Analysis

Strengths Weaknesses Wide-ranged portfolio & product’s line

Innovative and diversified technology

Perceived as an Innovator

Main strength is its Global Business Network

World’s best LED TV’s seller

2nd largest semi-conductor supplier of the world

and most probably in year 2014 it will surpasses

its rival Intel

2011 market share of its cell phone is 21.3% that

makes it world’s 2nd largest mobile phones

selling brand with a sale of 329.4 million units

while 1st is Nokia with a share of 27%

World’s top selling smartphone brand of 2011

with the sale of 94 million units and market share

of 19.1% while apple’s market share is 19%

Sony, Apple, Dell, HP etc are the Samsung

largest clients of DRAM, NAND flash, LCD/

LED panels etc.

Focus on Mass marketing instead of Niche

marketing, therefore sets low prices of

products and low priced products are seemed

as low quality products

Products are not durable specially their cell

phones, LED’s etc.

Opportunities Threats

It can target kids segment by offering Sony’s

types of products like Play Station, PSP etc.

Strong customer demand for innovative

products and value added features

In the digital appliances business, they can

Threat from new entrants or local players

Low cost Chinese products

Political, economical and social factors

Partial Government policies

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SONY SWOT Analysis

close the gap with the market leaders by

offering differentiated products and increasing

operational efficiencies

Advertising the products effectively in the all

markets where they are being offered

It can further expand its product warranties

and reduce repair service charges

High rate of competition because both Local

and Foreign competition exists in the market

Sony is perceived as a market leader in

electronics and digital media

Strengths Weaknesses

Strong Brand image

High quality of product

Wide spectrum of innovative products

Wide-ranged portfolio & product’s line

Electronics

Blue ray

Main strength is its Global Business Network

Product’s High prices

Financial service industry

Picture industry

Battery efficiencies

Opportunities Threats

Strong customer demand for innovative

products and value added features

Advertising the products effectively in the all

Threat from new entrants or local players

Low cost Chinese products

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CSR by Samsung

Compiled with the G3 Guidelines of the Global Reporting Initiative (GRI) and AA1000APS, the

2011 Samsung Electronics Sustainability Report includes the company's profiles as well as its

economic, environmental, and social performance indicators to ensure the full sharing of

information across all sectors. As a new feature in comparison with the previous report, this

report contains the company's CSR vision and strategies. The financial data included in this

report generally represents the corporation's consolidated figures that encompass the

performances of Samsung Electronics' overseas plants. The environmental and social

performance information mainly reflects the domestic subsidiaries of Samsung Electronics. The

data that pertains only to the performance of its headquarters has been footnoted accordingly.

Samsung Electronics will continue to strengthen its data collecting process to expand the scope

of its reporting for future periods.

“At Samsung, we believe it’s our responsibility to do business in a way that enriches our

planet!”

the markets where they are being offered

It can further expand its product warranties and reduce repair service charges

International market penetration

T.V business expansion

Network initiatives

T.V category & gaming segments investing

Political, economical and social factors

Partial Government policies

High rate of competition because both Local

and Foreign competition exists in the market

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1. Corporate Governance:

Samsung Electronics promotes transparency and accountability using an advanced corporate

governance structure. Full support is extended to the board of directors to facilitate creative

management with the ultimate goal of maximizing corporate value while every effort is made to

enhance shareholder value and rights. The board of directors addresses issues as stipulated in

related laws and the company’s Articles of Incorporation, and is responsible for overseeing basic

policies and major issues concerning the company’s operations. Regulations regarding the

election, terms of office, and election of Directors in case of vacancy are included in our

Company's Article of Incorporation. They also made strict standards related to the independence

of Directors.

2. Human Resources:

Samsung is taking actions to create a rewarding corporate climate that supports the efforts of a

diverse range of employees because Samsung knows that it is increasingly important for

employees to have vested stake in the growth potential of its company. People expect a

participatory work environment where they can feel a sense of dignity, pride, and ownership of

the organization’s vision.

Samsung Electronics strives to build a creative organizational culture, and acknowledges that the

investment we make in strengthening the core competencies of our employees will have a direct

impact on our competitiveness. We actively promote a flexible organizational culture that allows

employees to pursue a healthy work-life balance, in a dynamic, creative and challenging work

environment that is not risk-averse. As an international company we embrace individuals with

different background and abilities.

Samsung Electronics has not only contributed to balancing work and life but also to improving

productivity by adopting a flexible work schedule in Korea to help eliminate unnecessary

overtime and to maximize work performance through effective time management.

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Samsung Electronics has established a Creative Development Research Institute System to

provide employees with opportunities to pursue creative new ideas that take full advantage of

their talents and professional passions in a way that encourages taking risks. This new initiative

encourages employees to be more entrepreneurial in developing creative ideas that can become

new businesses. Once an employee’s plan is accepted, they may concentrate on the project as a

member of a task force for up to one year. During this period, they will be free from their usual

responsibilities and may receive a dedicated work space, development expenses and necessary

equipment as appropriate. Successful outcomes are encouraged through an incentive program,

however they are not subject to penalty if they don’t achieve their goals.

Diversity Management

Samsung Electronics has developed various activities to create an atmosphere in which each

employee can flourish.Every employee, regardless of gender, race, or country of origin must

have a voice.

Female Employees:

Samsung offers a variety of programs for women that prevent their career from being interrupted

due to child care obligations. In addition to building a pleasant work environment so that all

employees can be fully committed to both work and home, parental leave can be arranged in a

flexible manner to support female employees with children under 12 in Korea. Samsung is also

working to - increase in-house child care facilities.

Disabled Employees:

They are also hiring an increased number of disabled workers to provide job opportunities and to

help build their careers.

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Global Diversity:

Samsung Electronics continues its efforts to encourage its employees toward creativity and better

work performance by investing in infrastructure, embracing diversity, and raising awareness in

working together.In view of our ever-growing global workforce, we introduced a reverse

deployment scheme under which foreign employees are dispatched to Korea to experience

Samsung corporate culture and to alleviate cultural differences. At the same time, to enhance the

efficiency in managing the global workforce, we also aligned the HR system to standardize the

position evaluation system. In particular, we run a “global help desk,” targeted at foreign

employees in Korea who do not speak Korean, which provides necessary information and

various services needed for life in Korea, starting with supporting VISA applications to everyday

life in Korea. Wide varieties of activities are supported for foreign employees in Korea, such as

Korean language classes and dedicated group activities; also, all the internal materials are

translated into English.

Strengthening Compliance Management System:

The importance of legal compliance and business ethics is increasing as Samsung Electronics is

expanding its business into global markets. Samsung Electronics, therefore, established a

compliance team in 2010 in order to further strengthen the compliance management structure

through the implementation of programs including publication of a compliance management

manual, establishment of an evaluation and compensation structure, analysis of compliance

status, and identification of improvement measures.

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Internal Awareness Raising on Compliance:

In order to assert their commitment to compliance, Samsung declared a zero-tolerance principle

in all cases of misconduct and unethical business conduct on “Law Day” on April 25, 2011. In

addition, all employees and executives signed a pledge of compliance which commits each to

abide by all Korean and foreign laws, as well as Samsung Electronics’ code of conduct, in

addition to agreeing to take responsibility for any violations or misconduct.

In order to raise internal awareness on compliance, Samsung Electronics developed and

strengthened the training programs for new and existing employees.

Increasing Social Contribution:

As a responsible corporate citizen, Samsung Electronics believes that they must play a vital role

in maintaining and enhancing the sustainability of local communities in which they operate. In

addition to contribution programs in donations and volunteer activities, it launched a Global

Social Contribution Program in 2011. Samsung integrated various social contribution activities

which have been conducted in different regions into a single program titled ‘Samsung Hope for

Children.’ Focused on supporting good health and education of children and youth, Samsung

subsidiaries in different regions conducted various support programs including youth education

support, low-income youth health benefits and job trainings, tailored for needs of the youth and

children of respective local communities. In 2011, Samsung Hope for Children program

activities were conducted in 30 countries in nine different regions. We plan to expand the

program to 55 countries including Turkey, Malaysia, Canada and more.

CSR in the Supply Chain:

Samsung have supported the establishment of a CSR management structure by supplier

companies and incorporated CSR activities as a part of our supplier evaluation criteria to further

incentivize their participation in CSR activities. They also implemented a third party validation

program of supplier CSR activities. They also made a statement of support for a ban on mineral

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products that come from conflict areas, and we are collaborating with government agencies and

suppliers, in Korea and overseas, to support the ban.

Quality and Services:

Samsung has various businesses globally to provide products and services that meet customer

requirements in terms of satisfaction, reliability and trust.

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CSR by Sony:

Sony's founders believed that a company should always strive to create value for society, and

this idea serves as a foundation of their CSR activities. They believe that fulfilling their

responsibilities as a corporate citizen is integral to the sustainability of their businesses, and as

such, in concert with the expectations of their stakeholders, they will continue to deliver not only

innovative products, content, services and technology, but sound business practices as well.

In 2011, in the immediate aftermath of the Great East Japan Earthquake and floods that affected

Thailand and its neighboring countries, the Sony Group came together to provide assistance for

relief and recovery efforts, including through employee donations and volunteer programs.

Sony's operations were affected significantly by both events, and we are currently drawing on

these experiences to reinforce their business continuity planning and risk management systems.

Other fundamental components of CSR, such as effective corporate governance, compliance, and

responsible sourcing, also play a key role in a company's ability to fulfill its responsibilities as a

corporate citizen. The management and employees of the Sony Group are committed to working

as one to ensure the success of its efforts in these areas.

They also acknowledge the importance of pursuing innovations tied in with their business

strategies that will contribute to the creation of a sustainable society. In order to contribute to the

resolution of global challenges that they all face, they are committed to creating products that

pose less impact on the environment and addressing global social issues such as poverty and

education by contributing to the achievement of the Millennium Development Goals through

uniquely Sony initiatives.

1. Corporate Governance:

Sony has long been committed to strong corporate governance, as one of its most important

management initiatives. As a part of this effort, in 2003, Sony adopted the "Company with

Committees" corporate governance system under the Companies Act of Japan. In addition to

complying with the requirements of applicable governance laws and regulations, Sony has

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introduced its own requirements to help improve and maintain the soundness and transparency of

its governance by strengthening the separation of the Directors' function from that of

management and advancing the proper functioning of the statutory committees. Under Sony's

system, the Board of Directors defines the respective areas for which each of the Corporate

Executive Officers is responsible and delegates to them decision-making authority to manage the

business, thereby promoting the prompt and efficient management of the Sony Group.

A. Governance Structure (Updated on August 3, 2012)

Sony Corporation is governed by its Board of Directors, which is appointed by resolution at the

annual shareholders' meeting. The Board has three committees (the Nominating Committee,

Audit Committee and Compensation Committee), each consisting of Directors named by the

Board of Directors. Corporate Executive Officers are appointed by resolution of the Board of

Directors. In addition to these statutory bodies and positions, Sony has Corporate Executives

who carry out business operations within designated areas.

Primary Roles of the Governance Entities

Board of Directors:

Determines the fundamental management policies of the Sony Group

Oversees the management of Sony Group's business operations

Appoints and dismisses the statutory committee members

Appoints and dismisses Representative Corporate Executive Officers and Corporate

Executive Officers

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Nominating Committee:

Determines the content of proposals regarding the appointment/dismissal of Directors

Audit Committee:

Monitors the performance of duties by Corporate Executive Officers through reviewing

structure to ensure the adequacy o f the financial reporting process, structure to enable

management to ensure the effectiveness of internal control over financial reporting, structure

to ensure timely and appropriate disclosure and to ensure compliance with any applicable

law, Articles of Incorporation and internal policies and rules and status of any other items

described in the Internal Control and Governance Framework” determined by the Board of

Directors in accordance with the Companies Act of Japan and also monitors the performance

of duties by Directors through attending the Nominating Committee or Compensation

Committee and reviewing the Business Report and the documents relating to the proxy

statement.

Oversees and evaluates the work of independent auditor, including to evaluate the adequacy

of its independence and its qualification, to propose its appointment/dismissal or

nonreappointment, to approve its compensation, to evaluate the appropriateness of its audit

regarding the financial results and internal control over financial reporting, and to preapprove

its engagement for any other services than audit services to be provided.

Compensation Committee:

Sets policy on the contents of individual compensation for Directors, Corporate Executive

Officers, Corporate Executives and Group Executives, and determines the amount and

content of individual compensation of Directors and Corporate Executive Officers in

accordance with the policy

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Corporate Executive Officers:

Make decisions regarding the execution of Sony Group business activities within the scope

of the authority delegated to them by the Board of Directors

Corporate Executives:

Carry out business operations within designated areas, including business units, headquarters

functions, and/or research and development, in accordance with the fundamental policies

determined by the Board of Directors and the Corporate Executive Officers

B. Risk Management System:

Each Sony Group business unit, subsidiary or affiliated company, and corporate division is

expected to review and assess business risks on a regular basis, and to detect, communicate,

evaluate and respond to risk in their particular business areas. In addition, Sony Corporation's

Corporate Executive Officers have the authority and responsibility to establish and maintain

systems for identifying and controlling risks with the potential to cause losses or reputational

damage to the Sony Group in the areas for which they are responsible. The Corporate Executive

Officer in charge of Compliance is tasked with promoting and managing the establishment and

maintenance of such risk management systems through the coordinated activities of the Group

Risk, Compliance, Internal Audit and other relevant groups. The Group Risk Office has been

established in Sony Corporation to promote risk management initiatives, such as business

continuity planning, across the organization.

Crisis Management System:

One aspect of risk management is the proper handling of crises if and when they arise, and the

proper preparation for such crises. Sony's crisis management and business continuity activities

predominately occur at the business and operational level closest to the events the Company may

encounter. Since some events can have a significant impact on the entire Sony Group as a whole,

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Sony has established a Group crisis management procedure to enable a swift and organized

Group-wide response to crises as needed. Under this system, crises are evaluated and classified

into three levels to ensure dynamic and appropriate responses. Level 1 is defined as a crisis with

the possibility of significant impact on the Sony Group, and the possibility of serious negative

impact on the business of the Sony Group or its reputation, and will be handled under the

direction of the CEO. Level 2 is a crisis that is determined not to be Level 1, but still has the

possibility of widespread impact within the Sony Group, and will be addressed by a cross-

functional committee composed of headquarters executives relevant to the issue. Level 3 is a

crisis that the Corporate Executive Officer in charge of the subject area determines may be

resolved within his/her authority.

2. Compliance

Ethical business conduct and compliance with applicable laws and regulations are fundamental

aspects of Sony's corporate culture. To this end, Sony has established a Global Compliance

Network comprised of the Compliance Division at the corporate headquarters, a global

compliance leadership team, and regional compliance offices around the world. Additionally it

has adopted and implemented the Sony Group Code of Conduct, and set up Compliance Hotline

systems through its Global Compliance Network. Sony has taken these actions in order to

reinforce the Company's worldwide commitment to integrity and help assure resources are

available for employees to raise concerns or seek guidance about legal and ethical matters.

In May 2003, Sony adopted the Sony Group Code of Conduct, which sets the basic internal

standards to be observed by all directors, officers and employees of the Sony Group, in order to

emphasize and further strengthen corporate governance, business ethics and compliance systems

throughout the Sony Group. In addition to legal and compliance standards, the Code of Conduct

sets out the Sony Group's basic policies concerning ethical business practices and activities on

such topics as respect for human rights, safety of products and services, environmental

conservation and information disclosure.

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The Code of Conduct has been adopted and implemented by each Sony Group company globally

and is the subject of frequent "tone from the top" messaging and other training. To date, the

document has been translated into 26 languages.

The Sony Group Code of Conduct reflects principles set out in the Organization for Economic

Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the United

Nations Global Compact and the United Nations Universal Declaration of Human Rights. Sony

also participated in the formulation of and observes the standards outlined in the Charter of

Corporate Behavior of the Keidanren (Japan Business Federation), an alliance of Japan's leading

corporations.

Internal Hotline System:

Following the adoption of the Sony Group Code of Conduct, Sony also established a Sony Group

Compliance Hotline system as a resource for employees to report concerns or seek guidance

about possible violations of laws or internal policies, and to allow the Sony Group to respond

swiftly to potential risks of such possible violations. The Sony Group Compliance Hotline system

is available worldwide.

The Sony Group Compliance Hotline system is directly linked to the Corporate Executive Officer

in charge of Compliance. The Compliance Hotline is operated independently from the ordinary

line of command, and callers who report issues in good faith are protected from any possibility of

retaliation for the report. Summaries of hotline calls, results of investigations, and updates on the

operation of the system are reported to senior management and the Audit Committee.

During fiscal 2011, the Sony Group received approximately 400 hotline contacts covering issues

primarily relating to employment, labor, work environment, information management and

possible conflicts of interest. All contacts received are investigated for the purpose of verification

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and appropriate action. In certain cases, these contacts have led to a review of internal procedures

and the strengthening or enforcement of internal rules.

Educating Employees about the Sony Group Code of Conduct and the Internal Hotline

System:

To ensure that all employees understand the importance of the Sony Group Code of Conduct, as

well as to promote use of the internal hotline system, Sony Group senior management informs

executives and employees about these topics through ongoing dissemination of e-mails, as well

as implementation of online and class room training. Further, Sony Group executives and senior

management with a certain level of authority are annually requested to submit a certification

stating that they understand that all personnel must comply with applicable laws, regulations and

internal policies and the need, in their role as managers, to communicate the importance of acting

ethically and compliance with applicable laws, regulations and internal policies. Sony Group

companies inform their employees about the Code and the internal hotline system on an ongoing

basis through the dissemination of e-mails, booklets, wallet cards, posters, feature articles in

internal newsletters, and/or postings on the company's intranet.

In addition to these initiatives, the Sony Group provides education and training sessions that use

e-learning and other approaches presenting real-life examples to impart more in-depth expertise

regarding business ethics and individual aspects of the Sony Group Code of Conduct that are

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crucial to compliance by the Sony Group. These include fairness in competition and business

dealings, anti-bribery, and the prevention of discrimination and harassment in the workplace.

Sony has adopted a compliance education protocol that sets forth minimum mandatory global

communications and training requirements in a wide range of compliance areas. Through

ongoing communication, awareness and training efforts, Sony will continue to promote a

thorough Group-wide understanding of the importance of the policies and values set forth in the

Sony Group Code of Conduct.

3. Quality and Services: Sony has various businesses globally to provide products and services that meet customer

requirements in terms of satisfaction, reliability and trust.

4. Responsible Sourcing In recent years, stakeholders have grown increasingly aware of the importance of companies

fulfilling their overall responsibilities to society as corporate citizens, including managing their

supply chains in a responsible manner. In response to stakeholder concerns, Sony is working

with its suppliers to address issues related to human rights, labor conditions, health and safety,

and environmental protection at the production sites of outsourcing partners and parts suppliers,

as well as in its procurement of minerals and other raw materials.

CSR in the Supply Chain:

Sony is committed to fulfilling its responsibility to society as a corporate citizen, including

managing its supply chain in a responsible manner. To achieve this goal, Sony is working with

its business partners, suppliers and subcontractors to help ensure that they adhere to the same

high standards as Sony in the areas of human rights, labor conditions, health and safety, and

environmental protection.

Basic Structure of the Supply Chain

5. Human Resources: Sony endeavors to create a rewarding corporate climate that supports the efforts of a diverse

range of employees.

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Since its establishment in 1946, Sony has sought to remain at the forefront of technological

development, building continuously on its achievements to create new lifestyles for people

everywhere. Sony has also fostered groundbreaking new businesses, adopting an innovative

approach to this challenge that exceeds national and regional boundaries. In these efforts, Sony

recognizes its employees to be one of the most crucial aspects of its corporate foundation.

Sony acknowledges that its ongoing ability to offer dream-inspiring products and services and

exciting new lifestyles around the world depends on its ability to secure and foster talented

employees with a wide range of values and personalities, irrespective of nationality, culture,

race, gender, age, or the presence or absence of physical limitations. Guided by the concepts of

diversity and inclusion, Sony recruits individuals from various backgrounds. Sony also strives to

create positive working environments and opportunities that enable individuals with diverse

backgrounds to fulfill their potential by learning from one another, believing these to be essential

to a rewarding corporate climate.

6. Community

Sony continues to undertake a wide variety of community engagement initiatives based on the

Sony Group's community engagement policy, which is to undertake activities in fields where it is

best able to do so to help address the needs of the communities in which Sony operates. In the

phrase "For the Next Generation" to describe its CSR activities, Sony strives to have a positive

impact through these activities by leveraging its products, business activities and employees,

independently and in partnership with various organizations.

7. Environment:

Sony recognizes the importance of preserving the natural environment that sustains all life on the

earth for future generations and thereby ensuring that all humanity can attain a healthy and

enriched life. To this end, Sony strives to achieve a zero environmental footprint throughout the

lifecycle of our products and business activities. By capitalizing on our superior technologies and

our ability to innovate, we strive not only to reduce the environmental impact of our business

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activities, but also to deliver environmentally conscious products and services that enrich our

customers' lives.

8. Innovation for sustainability:

Sony continues to address the challenge of realizing new potential through creative technologies,

products and services and a spirit of innovation that focuses on contributing to society. This

challenge is undertaken in partnership with a diverse array of stakeholders.

9. Stakeholder Engagement and Partnership:

For Sony, engaging and working together with various stakeholders is vital for pursuing CSR

activities. Sony not only promotes engagement with stakeholders in implementing its CSR

activities but also encourages the participation of multiple stakeholder groups in the planning of

those activities, thereby contributing to the creation of a global framework.

10. Engaging Employees:

Sony is engaged in a variety of efforts in line with its belief that a solid in-house organization

and a high level of employee awareness is essential to ensuring the effective coordination of its

CSR initiatives.

Raising Awareness:

Recognizing the importance of raising employee awareness with regard to the effective

promotion of CSR, Sony offers a variety of educational programs based on a three-level

approach, whereby employees are encouraged first to learn about CSR, second to participate in

CSR activities and third to incorporate CSR into their day-to-day work.

Sony provides employees with essential training to facilitate the sharing of information,

disseminates pertinent news and stages the CSR Forum, featuring lectures by invited experts,

film screenings and other activities designed to enhance awareness of each individual's

obligations to society.

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Sony's community engagement projects offer a uniquely Sony approach, that is, an employee

volunteer-driven organization that contributes to society while at the same time encouraging

employee involvement.

Employee Participation:

Sony believes that employee participation is crucial to ensuring its community engagement

activities are truly meaningful. Accordingly, Sony encourages employees to be aware of social

issues, strive constantly to deepen their understanding and then to participate in fundraising

initiatives, community projects and/or other activities. Sony also encourages employees to act as

instructors for workshops organized for children and students and in other capacities that

capitalize on their specialized skills, as well as to participate in Public Viewings and other social

contribution initiatives in developing countries.

CULTURE

Application of the Hofstede’s Cultural Dimensions on Samsung

Power Distance:

At a score of 60, South Korea is a hierarchical society. This means that people accept a

hierarchical order in which everybody has a place and which needs no further justification.

Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular,

subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.

Therefore, since the home country of Samsung is South Korea, it is obvious that they have

intentionally or unintentionally adapted the same culture in their business practices. Thus the

Power distance is high which means that the decision making is centralized.

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Individualism vs. Collectivism:

South Korea, with a score of 18 on individualism is considered as a collectivistic society. This is

manifest in a close long-term commitment to the member 'group', be that a family, extended

family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides

most other societal rules and regulations. The society fosters strong relationships where everyone

takes responsibility for fellow members of their group. In collectivist societies offence leads to

shame and loss of face, employer/employee relationships are perceived in moral terms (like a

family link), hiring and promotion decisions take account of the employee’s in-group,

management is the management of groups.

Samsung culture is highly towards collectivism as they encourage working in teams, team

development, team motivation etc.

Masculinity / Femininity:

South Korea scores 39 on this dimension and is thus considered a feminine society. In feminine

countries the focus is on “working in order to live”, managers strive for consensus, peoplevalue

equality, solidarity and quality in their working lives. Conflicts are resolved by compromise and

negotiation. Incentives such as free time and flexibility are favored. Focus is on well-being,

status is not shown. An effective manager is a supportive one, and decision making is achieved

through involvement.

This shows that in Samsung’s culture, the decision making is not centralized nor the decisions

are made and imposed on the employees. Instead, the decisions are made after getting the inputs

from the employees. Moreover, they all support, help and motivate each other.

Uncertainty avoidance:

At 85, South Korea is one of the most uncertainty avoiding countries in the world. Countries

exhibiting high uncertainty avoidance maintain rigid codes of belief and behavior and are

intolerant of unorthodox behavior and ideas. In these cultures there is an emotional need for rules

(even if the rules never seem to work) time is money, people have an inner urge to be busy and

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work hard, precision and punctuality are the norm, innovation may be resisted, security is an

important element in individual motivation.

Sony culture also incorporates high uncertainty avoidance activities. CSR is one of the many

steps it is taking to avoid uncertainties.

Application of the Hofstede’s Cultural Dimensions on Sony

Power Distance:

At a score of 54, Japan is a mildly hierarchical society. Japanese are always conscious of their

hierarchical position in any social setting (be it in age or in the position in the office) and act

accordingly. However, it is not as hierarchical as most of the other Asian cultures. Some

foreigners experience Japan as extremely hierarchical because of their business experience of

painstakingly slow decision making process: all the decisions must be confirmed by each

hierarchical layer and finally by the top management in Tokyo. Paradoxically, the exact example

of their slow decision making process shows that in Japanese society there is no one top guy who

can take decision like in more hierarchical societies. Another example of not so high power

distance is that Japan has always been a meritocratic society. There is a strong notion in the

Japanese education system that everybody is born equal and anyone can get ahead and become

anything if he works hard enough.

Therefore, since the home country of Sony is Japan, it is obvious that they have intentionally or

unintentionally adapted the same culture in their business practices. Thus the Power distance is

not low in other words the power distance is high/ slightly high as compared to USA etc.

Individualism vs. Collectivism:

Japan scores 46 on the Individualism dimension. Certainly Japanese society shows many of the

characteristics of a collectivistic society: such as putting harmony of group above the expression

of individual opinions and people having a strong sense of shame for losing face. However, it is

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not as collectivistic as most of her Asian neighbours. The most popular explanation for this is

that Japanese society does not have extended family system which forms a base of more

collectivistic societies such as China and Korea. Japan has been a paternalistic society and the

family name and asset was inherited from father to the eldest son. The younger siblings had to

leave home and make their own living with their core families. One seemingly paradoxal

example is that Japanese are famous for their loyalty to their companies, while Chinese seem to

job hop more easily. However, company loyalty is something which people have chosen for

themselves, which is an individualistic thing to do. You could say that the Japanese in-group is

situational. While in more collectivistic culture, people are loyal to their inner group by birth,

such as their extended family and their local community. Japanese are experienced as

collectivistic by Western standards and experienced as individualistic by Asian standards. They

are more private and reserved than most other Asians. Still, the ratio shows that Japan is a

country high in Collectivism.

Sony culture is highly towards collectivism as they encourage working in teams, team

development, team motivation etc.

Masculinity / Femininity:

At 95, Japan is one of the most masculine societies in the world. However, in combination with

their mild collectivism, you do not see assertive and competitive individual behaviors which we

often associate with masculine culture. What you see is a severe competition between groups.

From very young age at kindergartens, children learn to compete on sports day for their groups

(traditionally red team against white team).

In corporate Japan, you see that employees are most motivated when they are fighting in a

winning team against their competitors. What you also see as an expression of masculinity in

Japan is the drive for excellence and perfection in their material production (monodukuri) and in

material services (hotels and restaurants) and presentation (gift wrapping and food presentation)

in every aspect of life. Notorious Japanese workaholism is another expression of their

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masculinity. It is still hard for women to climb up the corporate ladders in Japan with their

masculine norm of hard and long working hours.

Since Sony strongly shows drive for excellence and perfection in their products and the

employees are workaholics in nature and want to achieve more and more. This shows that their

culture is highly Masculine.

Uncertainty avoidance:

At 92, Japan is one of the most uncertainty avoiding countries on earth. This is often attributed

to the fact that Japan is constantly threatened by natural disasters from earthquakes, tsunamis,

typhoons to volcano eruptions. Under these circumstances Japanese learned to prepare

themselves for any uncertain situation. This goes not only for the emergency plan and

precautions for sudden natural disasters but also for every other aspects of society. You could say

that in Japan anything you do is prescribed for maximum predictability. From cradle to grave,

life is highly ritualized and you have a lot of ceremonies. For example, there is opening and

closing ceremonies of every school year which are conducted almost exactly the same way

everywhere in Japan. At weddings, funerals and other important social events, what people wear

and how people should behave are prescribed in great detail in etiquette books. School teachers

and public servants are reluctant to do things without precedence. In corporate Japan, a lot of

time and effort is put into feasibility studies and all the risk factors must be worked out before

any project can start. Managers ask for all the detailed facts and figures before taking any

decision.

Sony culture also incorporates high uncertainty avoidance activities. CSR, internal hotline

system in Compliance, educating employees about the Sony Group Code of Conduct etc are

some of the many steps they are undertaking to avoid Uncertainty.

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Diagrammatic Representation of South Korea & Japan’s Hofstede’s Cultural Dimensions

CONCLUSION:

Both of the companies are performing well in their own ways and have a strong brand image as

well as strong global presence. These all contribute to a good market share, customer loyalty and

good brand equity. Customers like these brands more because they fulfill their promise of

providing quality and innovative products by keeping in mind the Corporate Social

Responsibility.

Before starting any business, one should plan for all types of uncertainties that can occur and

how to cope up with them efficiently. This means that the business environment should be high

in uncertainty avoidance which will consider factors like CSR etc while doing the business. Rest

of the factors that are low or high power distance, masculinity or femininity, individualism or

collectivism are all good in their own ways and all contribute towards the success of the business

in their own ways. Thus, the main dimension to look at is the uncertainty avoidance which

should be considered regardless of the fact that in which country you are going to start the

business and what culture exists there.

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References:

http://en.wikipedia.org/wiki/Sony http://en.wikipedia.org/wiki/Samsung_Electronics http://www.goodlogo.com/extended.info/sony-vaio-logo-2801 http://www.radiomuseum.org/forum/sony_the_history_of_the_sony_logos.html http://www.sony-europe.com/article/id/1178278971500 http://geert-hofstede.com/japan.html http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/download/

2012/2012_sustainability_rpt.pdf

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