IMS PPT

GROUP 3Who Gets the Assignment???

Shelby McCraw, Melinda Wade, Rosa Sanchez, Ian Kannady, Stefan Sansone, Allan Hu,

Brandon Southern

Background

“You are the chair of the selections committee and your international company is sending an expatriate to China for a three-year assignment to staff and run a new branch of its industrial products business”

Who Gets the Assignment?? Analyze 3 candidates using Hofstede’s 5 Cultural Dimensions Compare the challenges that each candidate will face regarding

international business in China Find the candidate who will run the most successful business for our

company

Environmental Forces

External forces over which management has no control

Internal forces that managements administer to adapt to changes in the enivironment

Competitive forces Competition firm faces, number and location of competing firms Can influence competition indirectly by competing in same markets or

lobbying for barriers to entry into particular market

Hofstede’s 5 Cultural Dimensions

The framework for communication across different cultures.

It can be used to describe the effects of societal culture and the differences within the cultures.

Used world-wide for cross culture psychology and international management

Individualistic/Collectivistic, Masculine/Feminine, Uncertainty Avoidance, Power Distance, Long Term Orientation

Individualism-Collectivism

Individualism: individuals are expected to take care of only themselves and immediate family members

- Countries with highly individualistic culture reward independence

Collectivism: individuals expect their families to look after them-Countries with highly collectivistic cultures belong to strong groups

filled with loyalty

Power Distance

• Society expects and accepts power to be distributed unequally• The differences in power reflect inherent inequalities• People accept a hierarchical order in which everybody has a place and

there is no questions about it• In large power distance countries, the people want directions, situations

are based on seniority, age, and title• In low power distance countries, the people try to equalize distribution of

power

Uncertainty Avoidance

• Members of a society feel uncomfortable with uncertainty • Societies with strong uncertainty avoidance maintain strict codes of belief

and behavior and are intolerant to other ideas and behavior• Societies with weak uncertainty avoidance have a more relaxed attitude

when it comes to principles

Masculinity-Femininity

• It is the gap between men’s and women’s values• Masculinity represents heroism and achievement

- Business performance is primary goal

- Achievements are emphasized• Femininity prefers modesty and caring for the weak and quality of life

- Quality of life is important

- Work in order to live

Long Term Orientation/Pragmatic-Normative

Added when he collaborated with researchers in Asia

They value actions and attitudes that affect the future

Pragmatic people believe it is impossible to fully understand the complexity of life

Normative people feel strongly about establishing the Absolute Truth

China vs. India & Japan

By looking at the comparison of China in respects to 2 other countries (India & Japan) side-by-side, we can see that the only areas that all 3 countries are close to being evenly matched are “Power Distance” and “Indulgence”.

Using these two areas, we can stand to reason that business communications between China and other Asian countries will be relatively fairly matched in most aspects; except where some group projects, and mostly innovation come into play. There will be some need to expect China to back down a little on the risk-taking and innovation to match others comfort levels.

China vs. Middle Eastern Countries

Power Distance

Individualism

Masculinity

Uncertainty Avoidance

Pragmaticism

0 20 40 60 80 100 120

NigeriaIranSaudi ArabiaEgyptChina

• Score above 50 on Power Distance • Accept hierarchial order, hierarchy reflects

inherent inequalities

• Score below 50 on Collectivism• Collectivist build loyal, strong relationships

• Score below 50 on Masculinity• Relatively feministic , care for others, quality of

life=succes

• Score above 50 on Uncertainty Avoidance• Prefer to avoid uncertainty, rigid codes of

belief, time is money, precision

• Score below 50 on pragmaticism • Normative, strong concern to establish

absolute Truth, respect for traditions

Middle Eastern Countries China

SAME

SAME

Scored above 50-masculine, driven by competition, success is the winner

Scored below 50-adherence to laws and rules may be flexible,

Scored above 50-very pragmatic, truth depends on the situation, place, and time, strong propensity to save and invest

China vs. European Countries

Power Distance

Individualism

Masculinity

Uncertainty Avoidance

Pragmaticism

0 20 40 60 80 100 120

.NorwayChina

• Score above 50 on Power Distance • Accept hierarchial order, hierarchy

reflects inherent inequalities

• Score below 50 on Collectivism• Collectivist build loyal, strong relationships

• Score below 50 on Masculinity• Relatively feministic , care for others, quality of

life=succes

• Score below 50 on pragmaticism • Normative, strong concern to establish

absolute Truth, respect for traditions

European Countries China

Scored above 50-masculine, driven by competition, success is the winner

• Scored below 50 on Uncertainty Avoidance

-adherence to laws and rules may be flexible,

Scored above 50-very pragmatic, truth depends on the situation, place, and time, strong propensity to save and invest

• Score below 50 on Power Distance• Independent, power is

decentralized, control is disliked

• Score above 50 on Collectivism• Considered individualistic, self is

important, personal opinions are expressed

SAME

China vs. American Countries

Power Distance

Collectivism

Masculinity

Uncertainty Avoidance

Pragmaticism

0 20 40 60 80 100 120

Brazil MexicoArgentinaAmericaChina

• Score above 50 on Power Distance • Accept hierarchial order, hierarchy

reflects inherent inequalities

• Score below 50 on Collectivism• Collectivist build loyal, strong relationships

American Countries China

Scored above 50 on Masculinity -masculine, driven by competition, success is the winner

Scored below 50 on Uncertainty Avoidance -adherence to laws and rules may be flexible, ***with the exception of US***

Scored above 50-very pragmatic, truth depends on the situation, place, and time, strong propensity to save and invest

• Score below 50 on Power Distance• Independent, power is

decentralized, control is disliked

• Score above 50 on Collectivism• Considered individualistic, self is

important, personal opinions are expressed

SAME

SAME

NEUTRAL on Pragmatism

US vs. China Analysis

Difference in power distance means the disparity between subordinates/supervisors/managers is much greater in China

Chinese see things as a team effort where the US places more value on what each individual contributes

The Chinese welcome ambiguity/risk, and although the US also falls lows on Uncertainty Avoidance, they are less willing to gamble

The Chinese restrain their desires to a high degree, whereas the US tends to gratify their desires

Challenges of International Business in China

• Inexperienced Management• Having experience conducting business globally is

critical to successful business operations

• Human Resources• Chinese workers are in a hierarchial

structure where each person has a specific role and don’t necessarily take initiative

• They are used to doing only what higher people tell them so there needs to be a well defined leader

• Communication• Cultural misunderstandings make business

negotiations difficult • Need someone who can bridge Chinese and

US cultural differences

Challenges, cont.• Bureaucratic tasks

• tasks that were simplified elsewhere may be still time-consuming and difficult

• Even opening a bank account can take months• Lack of strong rule of law and inconsistent

application of regulations• Many procedures that are electronic here

require loads of paperwork

• Relationships • Build strong business relationships

(guanxi)• In China it is necessary to get to

know your Chinese counterparts outside of business during tea sessions and dinner

• Need to have patience to build these because deals may take 5 times longer to make in China than in US

S

Who gets the assignment?Tom? Firdaus? Or Gunther?

Tom

Professional Life Personal Life

• Mid-level finance manager• Stellar Performance Reviews• No foreign experience • MBA• Ohio State University (50 miles from

home)• Undergraduate finance degree• Local Council of Foreign Relations

• Single• Accomplished athlete

Advantages Disadvantages

• Mid-level finance manager• MBA• Undergraduate Finance Degree• Local Council of Foreign Relations• Single

• No foreign experience• Out of school for 20 years

FirdausProfessional Life Personal Life

• Deputy VP of HR at Corporate• Joined company on operations side• Successful mid-career transfer to HR• Stellar Performance Reviews• PhD in engineering from the University

of London

• Family emigrated from Yemen• Speaks, reads, and writes Arabic

traditional and Yemen dialect• Married to History Professor• 2 children

Advantages Disadvantages

• Deputy VP of HR at Corporate• Joined company on operations side• Successful mid-career transfer to HR• Stellar Performance Reviews• PhD in engineering from the University

of London• Family emigrated from Yemen• Speaks, reads, and writes Arabic

traditional

• Married• 2 children

*Incident at HQ about headscarf but resolved without change of practice

Gunther

Professional Life Personal Life

• VP of German based EU company• Functional background in Accounting• Lead German based company to sector

leader in only 7 years.• Well organized and “button-upped”• Timely, accurate, and detailed• Undergraduate degree in Anthropology

• Speaks German• Well organized and “button-upped”

Advantages Disadvantages

• VP of German based EU company• Functional background in Accounting• Lead German based company to sector

leader in only 7 years.

• Well organized and “button-upped”• Timely, accurate, and detailed

WE PICK FIRDAUS!!!

He already works in a high-level HR Position and is already accustomed to handling people from a variety of backgrounds

Proven track record of being able to transition across a diverse range of cultures (US, Middle East, Western Europe)

Socially intelligent, well liked despite cultural differences

Able to resolve culture based conflicts without issue

Has highest level of education

Works Cited

“China-Egypt 10 Year Strategic Cooperation”. Forum on China-Africa Cooperation. June 2009. Web. 03 Feb. 2014. Meyer, Henry. “China and Saudi Arabia Form Stronger Trade Ties”. The New York Times. April 2010. Web. 03 Feb. 2014.

US-Pacific Rim International. “The 5 Biggest Challenges Businesses Face When They Expand to China”. Business Insider”. Dec 2010. Web. 03 Feb. 2014.

http://web.b.ebscohost.com.libproxy.utdallas.edu/ehost/detail?vid=4&sid=6d0ac1a5-f3fc-45d1-845d-3873ada77846%40sessionmgr198&hid=124&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=27221860