Global Tips cultural Case Studies

Tips for Going GlobalBarbara M Fowler, JD, LL.M

Management Development ConsultantApril 19, 2011

For Internal Use Only

What do your core values indicate should be considered? (example, worthy of trust, respect for each other, customer focused, winning)

What is the law in the country? What are the “common business practices”? How will this impact future decisions? How will this affect the company globally?

2

Decisions

For Internal Use Only

Current PII Operations

3

Japan(1987, 2001)

Korea(1989)

Taiwan (1989)

China

India(JV 2008)

Poland (1998)

Italy(1990)

Brazil(1997)

Argentina (1998)

Mexico(2006)

For Internal Use Only

1. Market Attractiveness

2. Political and Economic Stability

3. Employment Law

4. Consumer Protection

5. Financial Picture

6. Regulatory Environment

7. Competitive Situation

8. Labor Pool for your industry

9. Synergies/Obstacles

10.Ease of Implementation

4

Critical Factors To Consider

Overall Recommendation

Country Snapshot—Selected Data (2008)

82 million0.04%

1.280.0 years41.3 years

26.6%

20% of workers99%

US $1,976 billion1.61%

9.8% overallUS $ 50,000

31st of 100 countries28th of 100 -Low

81st of 100 countries

5

Agnieska Bonanza

PopulationPopulation Growth (annual)

Fertility (births/woman)Life expectancy

Median Age% of Pop. under age 25

% Univ. Grad, Target Cities Literacy Rate

GDP (US$ basis)Inflation

UnemploymentAverage Income

Corruption IndexCountry Risk

Business Friendly Environment

88. million1.53%2.49

74 years23.8 years

54.0%

15% of people over 1592%

US $637 billion4.78%

9.8% overallUS$30,000

72nd of 100 countries68th of 100-Moderate to High

30th of 100 countries

For Internal Use Only

6

Country Indexes

With one being the best country and 100 the worst country,

CORRUPTION INDEX -- Agnieska is at 31 and Bonanza is at 72.

COUNTRY RISK – Agnieska is at 28 and Bonanza is at 68.

BUSINESS FRIENDLY ENVIRONMENT - Agnieska is at 81 and Bonanza is at 30.

For Internal Use Only

For Internal Use Only77

Agnieska

• Large, Stable Middle Class

• High Income Taxes

• Disability, Unemployment, Retirement Support

• Low Birth Rate

• Established Industries

For Internal Use Only

Class Disparity Rapidly Growing Middle Class Women leave work force when children

born Industry just beginning Low Government Benefits

8

Bonanza

For Internal Use Only

Will we find sufficient number of candidates?

Will these candidates be able to develop the markets?

Will they be willing to work long hours? 2300/1700

What about entrepreneurial spirit? Do workers here want more security or more opportunity?

How do people feel about careers?

9

Labor Pool

For Internal Use Only

In Bonanza, English speaking management salaries are very high and specialists are recruited heavily. Turnover is high.

In Agnieska, there are many labor suits and the employee usually wins.

In Bonanza, the concept that hard work brings success is not believed. In Agnieska, it is part of the culture.

10

Other Issues

For Internal Use Only

You have been asked to lead a team of five ex-pats to start the operation. The team is told that they will be in-country for approximately 18 to 24 months.

What are your concerns? What about your family? Will you accept this opportunity? What about when you come back?

11

The Decision Has Been Made

For Internal Use Only

Free Coffee

Broken Leg

Maternity Leave

University Classes

Marriage Leave

Company Money

Volunteer Activity

Lunches

12

Issues that arise in first year

For Internal Use Only

1. There are two final candidates for the CEO position. Both are good. One is especially well regarded for his people development skills but his English language skills are average at best. The other is highly regarded for her financial acumen and her English is excellent. How important are the language skills?

13

Questions:

For Internal Use Only

2. You install a coffee/tea machine with a nominal fee. However, you quickly learn that many employees are upset. They expected complimentary coffee/tea. Should you provide it?

3. You are interviewing a candidate for a Director position. In answer to several questions during the interview, the candidate starts by saying, “I talked to my psychologist about this” or “My psychologist and I discussed this.”

14

Questions:

For Internal Use Only

4. You are interviewing one of the finalists for the IT manager position. The in-country executive asks what is the candidates blood type. He later explains that A blood type is better for IT and he prefers that candidate for the position.

15

Questions

For Internal Use Only

5. You are driving with your child and are stopped by a policeman but do not understand why. Local custom is to give the policeman your license with a 20 dollar bill wrapped around it. You do not know the language but it is apparent the policeman is expecting this.

16

Questions

For Internal Use Only17

Mr. Toilet

For further questions, contact me at [email protected]

Thank you!