Global Business

Module 1 Module 1 - Foundations

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Course Overview

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Globalization Trends Macro Analysis – PESTLE

Culture – Globe, Hofstede Competitiveness (see side bar)

Competitiveness - Resources & Capabilities - Value Chain - VRIO - Porter’s 5 Forces

Context and Competitiveness

If yes, how to go global?

Global Strategy (see sidebar)

Functional Implications

Digital and Social Realities

Global Strategy - SPRO - Strategy, Process,

Resources and Org. - Where to go? Country

assessments. - How to go? Risk, Structure,

Non-Equity, Equity, etc.

Professional Standard – English and Grammar, Logic, Pyramid Structure, SCQA, Hypothesis and best medium for the message.

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3Strategy and Implementation

Module One 1. Globalisation as a Construct 2. Formal Institutions and Informal

Institutions • PESTLE Analysis Framework

3. Cultural Deep Dive • Culture, Leadership and Organisation

• Cultural Intelligence

• In this section, the student will be able to ensure they understand the frameworks and tools helpful in international business and why international business is a distinct subject and more than a topical extension of various business functions such as finance, human resources, operations or strategy.

• A key component of this module will be an in-depth look at culture and methodologies for understanding and comparing cultures and the development of Cultural Intelligence among the students.

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1.1 Globalization as a Construct

Quiz…Zoom Voting 1. Where is the iphone made? 2. What does COP 26 stand for? 3. Which Country has the most

Fortune 500 HQs? 4. What percentage of Chinese

goods are exported? 5. What recent event is driving

up the price of oil?

Directions • Note your answer

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1.1 Globalization as a Construct

Quiz…Zoom Voting 1. Where is the iphone made?

• https://www.lifewire.com/where-is-the-iphone-made-1999503

2. What does COP27 stand for? • https://www.un.org/en/climatechange/cop26

3. Which Country has the most Fortune 500 HQs? • https://en.wikipedia.org/wiki/Fortune_Global_500#Geographical

_distribution

4. What percentage of Chinese economy comes from exports? • https://wits.worldbank.org/CountryProfile/en/CHN

5. Who is winning the war in Ukraine? • https://www.euronews.com/2023/09/14/ukraine-war-putin-will-a

chieve-great-victory-eu-lifts-sanctions-russia-drone-wave-attacks • https://www.washingtonpost.com/opinions/2023/07/18/ukraine-

war-west-gloom/ • https://www.cbc.ca/news/world/ukraine-endgame-analysis-1.691

1021

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1.1 Global Business – An Interdisciplinary Reality

From International Business… • Domestic business with some add-ons

• Strategy • Toe-in the water, incrementalism • International growth, sales and cash flow as sensitivities and

scenarios • Financing

• Money coming from Parent and little/no differentiated financing globally

• No differential WACC, limited currency or market understanding

• All cash and treasury conducted in home currency • Operations and Supply Chain

• Sourcing model or outsourcing model • Overseas operations only after demand reaches certain

milestones or on a “project” basis • Marketing

• Push Marketing - Agents, Exports, Rep. Offices, Overseas subsidiaries, Licensing or JVs

…to Global Business • Social Sciences

• Economics • Geography • History • Political science • Psychology • Sociology and Anthropology • Music, Art and Literature

• Business Disciplines • Strategy • Finance • Operations and Supply Chain • Marketing

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1.1 Globalization as a Construct Globalization of Markets – Levitt (1983)

• First to consider shift from MNC to Global firm • Instead of viewing markets, view the world as

one “global” market where you must be the leader

• From know a lot about many things (GE-style MNC mentality) to knowing everything about one thing (Tesla)

• Modern products juxtaposed against societal realities

• E.g. ISIS twitter, Gojek bikes and banking democratization

• Two dominant factors: • Technology (broad) – any truly competitive edge • Globalization – aggregation of global market available

• Drives economies of scale of production, finance and operations/logistics

World is Flat – Thomas L. Friedman (2005)

• Religious level of support from business, Davos, UN organizations and many (most) governments

• What was he saying… • https://www.youtube.com/watch ?v=44EB4bvnOTA&ab_channel= TalksatGoogle

• From 5 to 14 minutes

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Friedman’s Ten Flatteners – Are they still relevant?

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10. "The Steroids": The new technologies that make these REALLY move ahead. Originally, VOIP, file sharing, IM at speed. Now including AI, Machine Learning and ??

Global Platforms

for Collabor-ati

on created…

4. Uploading involves communities that upload and collaborate on online projects – closed (corporate) or open –source (e.g.wiki)

5. Outsourcing has enabled companies to split service and manufacturing activities into components that can be subcontracted and performed in the most efficient, most cost-effective way.

6. Offshoring is the internal relocation of a company's manufacturing or other processes to a foreign land to take advantage of less costly operations (or other advantages) there.

7. Supply Chaining - The modern retail supply chain to a river by pointing to Walmart (Amazon?) as the best example of a company that uses technology to streamline item sales, distribution, and shipping.

8. Insourcing - Frms performing whole functions, not just ancillary, in core companies. E.g.) UPS providing computer repair; IT/Cloud, trucking, 3PL, etc

9. Informing - Google / Search. Inform self and others. "Never before in the history of the planet have so many people – on their own – had the ability to find so much information about so many things and about so many other people"

2. Web Access (Netscape) – Enabling the internet inc. digital access to everything - words, files, films, music, and pictures. (dotcom bubble and global fiber investment)

3. Workflow Software – enabling global collaboration

1. Political Walls Fade (Berlin) – Walls come down as Windows came up - ISIS, Nationalism?

…which enabled Six New Forms

of Collabora-ti

on,

Further enhanced by game-changers (Steroids)

1.1 Or is it failing…

Or just packaging… And preferences.

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Trump Signs Being Made…In China

Source: Market Watch, Barrons. 25th July 2020

• Focus on high end manufacturing • next-generation IT • high-end equipment • biomedicine; and • new-energy automobiles

…or is it just falling apart? WTO and Trade Failure China vs US

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- US loses China tariff case but has stopped funding appeal body so likely not be forced to enact the ruling

“The World Trade Organization — as well as every trade agreement since — has been predicated on the idea that economic practices in different nations would eventually converge”

1.1 Global dominance changes…

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1.1 …but the trends continue to be towards more trade.

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• Humans want to try new things – tastes, materials, services and experiences.

• This desire tends towards exploration and trade.

• https://ourworldindata.org/trade-and-gl obalization#:~:text=Over%20the%20las t%20two%20centuries,total%20global% 20production%20is%20exported.&text =The%20production%20chains%20for% 20these,becoming%20increasingly%20c omplex%20and%20global.

The End of Globalization - Bear case for Globalization – Foreign Affairs, March 2022 • 2 pre-Ukraine trends already putting global trade at risk

• nationalists/populists anti-trade, immigration, investment and progressive ideas • China’s share of global gains, with no support for global order, influence sphere

• War exacerbates these and creates new/unearths long buried risks • China, India, (others – Serbia/Turkey) benefitting from Russia desperation • Blocs (again) coupled with unwillingness to “choose” sides; pragmatic protectionism • Energy trade back to security of supply vs global supply and demand

• So what? • Continued dominance of the dollar (and US leadership) via global finance • Rate pegs and other non-market currency structures – inflation / liquidity • Supply chain’s will not be repaired; redundancy will be significant • Chinese yuan, crypto, other global trends will be deferred / altered • Climate change is not addressed resulting damage to most vulnerable (nations/people)

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There is material evidence we are reversing course, building a multi-polar world again Globalization Caution • Very hard to argue the trend is in the globalist direction

• https://www.axios.com/newsletters/axios-capital/ • Capital is a privilege not a right

• https://www.blackrock.com/corporate/investor-relations/larry-fink-chairmans- letter

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HBR - State of Globalization - Wakelet

• What is really happening post-Covid and as a result of the Ukraine war?

• Can we separate the facts from the news and rhetoric?

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1.1 So What?

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We are likely to be globalist and progressive capitalists if we are taking this course: • Recognize that the “political incentives” run counter to globalization • Two enemies of globalization:

• Exploitive capitalism - not just triple bottom line (economic, social and environmental) … but full stakeholder capitalism (purpose and sustainability)

• Partial benefits – energy, economic growth without respect and rules • What does a Christian / belief-based business look like anywhere in the world?

1.1 Recognizing Bias Business students and global citizens are biased

• Balance between profit and societal objectives (in all nations) • Jobs, environment, taxation, investment protection, etc. • Social license to operate • Second Machine Age – Undeniable trends complete with a set of policy prescriptions to be considered (& ignored).

• What is “home country”? – pandemic re-oriented this reality • To maintain a “flat world” and the attendant opportunity…we have to strive for this balance.

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Team Presentation One – Globalization Role Play

Offshore Windfarm – Hebrides, Scotland

Scottish Power Corporation

• Buying power as cheaply as possible

• Needs carbon credits to offset phasing out of coal plants

• Asked to install offshore cable and onshore transmission lines to pick-up the power – added into the overall capital profile to customers

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Local Community • Supportive of renewable energy • Offshore vista impacted • Studies show impact on fish stocks, tourism and bird life • Concerned about jobs – less than 10 maintenance jobs but

rotational and mostly out of Aberdeen

Wind Turbine Manufacturer

• Denmark design and assembly

• Manufactured in China

• Partnering with a company in Norway for bases

• Silk Road loan for the project to help sell the turbines

• Vessels and install from integrated sister company

Private Equity Investors

• Max. return on investment

• Environmental waivers for birds, fishermen and Greenpeace

• European/UK debt funding without guarantee back to PE fund

• Link to London based and non-arms length power developer and operator

• Carbon credit maximization tax waiver

We will form [6] groups. Part of the goal of this assignment is to understand the benefit of role playing.

BBC

• Broad based perspective

• Generally supportive but trying to catch duplicity

Goldman Sachs New Energy Analyst

• Prepare a presentation on the project, the stakeholders, risks and the potential

• What would you say to clients about likelihood of happening and long-term prospects

1.1 In Class Exercise – Role Play

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Set Up: BBC is preparing a documentary on the opportunity. Your organization has been asked to present both background and a speaker to be interviewed. • Summarize your position on the opportunity • Anticipate and counter the arguments that others would raise • Put forward data (or the types of data) that you would present to reinforce your position • Have someone be the interviewee and someone else conduct the interview to be given to the documentary

maker as a “test”. Conduct the interview back in the class Divide into six groups and report back – 3 minutes per interview and 5 minutes for GS analysts

1. PE Investors 2. Chinese Wind Turbine Manufacturer 3. Local Community 4. Scottish Power 5. BBC 6. GS Analyst

Optional Recording, Editing and Playback

North Sea Wind Industry Union Dispute

https://www.heraldscotland.com/news/18820310.revealed-52-4m-taxpa yers-money-set-lost-bifab-faces-collapse/

Set this case before seeing these articles “It looks like the Scottish Government ministers have walked away from our best chance of building a meaningful offshore wind manufacturing sector, and in doing so has extinguished the hopes of communities in Fife and Lewis who were banking their future prosperity on it.”

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1.2 Assessing International Potential and Risk

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PESTLE Analysis – Proven Tool • Simple acronym • Provides an easy to remember and easy to

use framework for assessing any new country, region, etc.

• Best used in the context of what’s different from what you are used to in your home market

• Look for the degree of difference – e.g.) low, medium, high AND degree of importance

• Highly different and highly important • Look for subtleties, biases and blind spots.

1.2 Assessing International Potential and Risk

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How to Use the Focus Chart • Do the analysis – be data driven

• (See Damodaran in Wakelet) • https://papers.ssrn.com/sol3/papers.cf

m?abstract_id=3879109 • Sort by degree of difference and degree of importance

• Look at those areas where they are high/high

• Develop mitigation strategies for these focus areas

• Keep a “watch” on others

Mitigation Strategies •T – xx •L – xx •P - xx

1.2 Assessing International Potential and Risk

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How to think about Political Risk • Dimensions of Political Risk – Local,

Regional, National and Global • All politics are local

• Formal Political Analysis • Government policy • Political stability • Tax Policy • Industry regulations • Global trade agreements and or restrictions • Informal - Where is the “voice of the

people”? Who speaks for the people and process in a country? Are the politicians and bureaucrats important or less important?

1.2 Formal Institutions – Managing Political Risk https://www.youtube.com/watch?v=iJ9FG87qTY0 Ian Bremmer, Eurasia Group

Dimensions of Political Risk • Property Rights • Rule of Law • Sanctity of Contract • Licensing • Tax • Environmental • Provincial and local governments • Separatist and independence matters • Monetary Policy, Currency Controls • Selective Enforcement of Laws

Mitigations • Offshore payment structures • Strong local partners • Material backing of home country • Reciprocal investments in home countries

• Asset light models including local financing of projects

• Local employment and union support

• Export and Investment insurance

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1.2 Assessing International Potential and Risk

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Economic Analysis • Exchange rate and Currency Stability • Monetary Policy – Exchange Rate Controls • Openness - Globalisation vs Protectionism • National Debt • Economic growth/ decline • Inflation and Interest rates • Labor costs and regime • Consumer spending habits • Open vs. Planned Economies – Licenses,

Quotas, Tenures, Quasi-Monopolies • State-owned Enterprises and Mandates

1.2 Formal Institutions - Economic Systems and Considerations

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• Free market • No such thing as a market economy • All blocs, countries, states and towns have myriad rules which need to be managed

• Command • Central drivers for the economy – i.e.) xth National Plan, help understand what focus areas for bureaucrats are and where

investment will go • E.g.) China’s Belt and Road Initiative

• Mixed • Reality of most economies have some degree of government intervention • Especially post-COVID this is now back in vogue

• Informal • The more central the economy, the more important the understanding of the informal economy which is ALWAYS an offset

to the rules, regulations. Human nature loves arbitrage • E.g. India cobra story

• State Owned Enterprises (SOEs) act as a defacto arm of government and can look deceptively commercial even in places like Singapore

• E.g. – Temasek driving consolidation of offshore marine sector

1.2 Assessing International Potential and Risk

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Social Structure and Society • Consumer trends/ tastes • Fashion Orientation • Consumer buying habits • Lifestyle factors • Career attitudes • Work-life balance • Population demographics • Openness and Connectedness • Liberal vs Conservative inc. Religion

1.2 Informal Institutions

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• More generally wrapped up in culture • Language

• Formal Language • Accents – “farm-boy” English or mainland

Mandarin • Religion • Social Structure – hierarchy and stratification

• Education - Schools

1.2 Corruption, Kleptocracy…or culture and relationships – could be in Legal, Social, Political, etc.

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Discussion • What is corruption? • How is that different from a good corporate relationship?

• Is it ever just part of the culture? • Where is the line?

1.2 Global Corruption Index - 2020

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Source: https://www.transparency.org/en/cpi/2019/results/can

Methodology is broad but rigorous. Three equal measures: • the accountability

of the executive to oversight institutions and of public employees for their performance

• access of civil society to information on public affairs

• state capture by narrow vested interests For the overall rating, these three dimensions receive equal weighting

• https://www.transp arency.org/en/cpi/2 019

1.2 Assessing International Potential and Risk

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Technology and Innovation • Internet and Digital Infrastructure • Automation • Innovation • Openness to Disruptive technologies • Social networking • Upgrades • Robotics • Artificial Intelligence • Security • Other considerations: • Domestic Education

Infrastructure • Overseas Educated (Come Home or Stay)

1.2 Assessing International Potential and Risk

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Legal Stability • Rule of Law, Due Process, Contract Sanctity, etc.

• Property Rights

• Intellectual Property Rights

• Employment law and Local Labour law

• Civil and Common law

• Health and safety regulations

• Independent Juciciary and Quasi-Judicial/Dispute Resolution

• Legal capacity and institutions

• https://www-orfonline-org.cdn.ampproject.org/c/s/www.o rfonline.org/research/jailed-for-doing-business/?amp

1.2 Formal Institutions – Legal Systems

Property Rights • Taken for granted in Western Societies • Underpin formation of capital and credit • Primary source of entrepreneurial funding • Basis around which investments in plant and

equipment can be made • Without clarity, power becomes more important

than historical or informal property claims • Emblematic of the type of risk missed by

Westerners

Intellectual Property Rights (IPR) • Patents, copyrights and trademarks including names

• E.g. 1MDB, Jho Low – Blackstone Asia

• Piracy takes many forms • Organised and entrepreneurial hacking impacts IPR

• State-”endorsed” vs. State-ignored 34

• Common or British Law – interpretations based on precedents • Civil (French) law – comprehensive codes and statutes to drive decisions • Theocratic or Islamic Law – domestic cases in Islamic states • Arbitration – agreed processes with extra-judicial processes; appears sensible but?

1.2 Assessing International Potential and Risk

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Environmental • Environmental restrictions imposed by in-country

governments

• Sustainable resources

• CSR (Corporate social responsibility) regulations and expectations

• Ethical sourcing – Tracing of Suppliers

• Transportation

• Procurement/Supply chain management

• Future pandemics

• Water availability and quality

• Air Quality

1.2 PESTLE WORKED EXAMPLE

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Pig Genetics - https://genesus.com/about/ • Example - Canada to China Ag/Food

Sectdor • P - China Canada relations are difficult,

chance genetics are used • Econ. - Growth is important for both • S - Pork consumption very important to

China • T - Cdn technology is superior • L - Hard for Canadian companies to

protect intellectual property. • Env. - Product standards are similar but

may not be aligned.

Mitigation Strategies •T – Send Gen-1 Stock •L – Third-country arbitration and trusts

•P – Clear alignment with Beijing on deal

1.2 PESTLE EXERCISE – (subject to time)

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Structure • Stay in your Six Teams • Each team will take a dimension • Prepare one page to present as a discussion tool.

Case Example • The company you are working for makes

high end hiking gear. • You are looking at taking this hiking

equipment from your base in VANCOUVER to Europe.

• Discuss the types of considerations you will want to better understand using the PESTLE trait.

• Consider mitigations • Prepare one page to discuss – use chart

1.3 Culture

Societal Culture Organisational Culture • Culture is then, best thought of, as, “discourse about the nature and expression of values, beliefs, practices, ideas, and goals”

• Against this backdrop, company culture is influenced, to small or large degrees against the societal and inter-organisational dependencies

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Source: International Management, Helen Deresky, p. 78

1.3 What is Culture Why “Company Culture” Is a Misleading Term by John Traphagan, HBR, April 21, 2015 Anthropology meets Organisational Theory • 1890 Static - “that complex whole which includes knowledge, belief, art, morals, law, custom,

and any other capabilities and habits acquired by man as a member of society” – EB Tyler • Now – Constant Change – recognize culture is constantly changing as people contest and

innovate upon the rules and ideas that constrain their actions and ideas • Not…“a unified whole that share simple common values, ideas, practices, and beliefs”…but • …permeable and not clearly defined; rather, influenced by a whole array of ever-changing

external factors • Culture provides members with images of their basic concerns, principles, ethics and bodies

of manners, rituals, ideologies, strategies and tactics of self-survival, including certain notions of good deeds and bad, various forms of folklore and legends, and a set of ideas that allows something of a ’consciousness of kind’ to emerge such that the rough boundaries of demarcation can be drawn between (and among) members and nonmembers.

• Our culture is what is familiar, recognizable, habitual. It is ’what goes without saying’ – which is why being in a new culture is so off-putting.

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Culture and the Workplace – National Culture and Management, P. Rosenzweig, HBR 1994

Edward T. Hall Five Languages of Culture (1950’s) • Time • Space • Material goods • Friendship; and • Agreement.

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High Context – Emphasis on: • Friends and networks • Less formalistic in negotiations - preferring trust

and understanding. • Communicate effectively despite the absence of

much explicit coding. • Japanese, Arabs, Mediterranean, and Latin

cultures Low Context • Precise, specific • required more explicit information in order to

communicate effectively. • Anglo-Saxon countries (e.g., the United States,

Great Britain, Canada, and Australia), Germans, and Scandinavians.

1.3 Culture – Societal and Organizational Culture

Societal Culture -

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Source: Philip R. Harris and Robert T. Moran, Managing Cultural Differences (Houston: Gulf Publishing, 1987).

Dimensions of culture Examples Kinship/clans/”titan” families – the system of relationships among families

e.g. Indonesia families, India, Royalty and minor royalty in many Islamic linked countries

Education system – types of schools – public, private, language, religion, gender, etc

e.g. MCOBA, Australia “introductions”, Singapore ACS

Economic – open vs. closed, planned vs deregulated, licenses vs regulatory, etc.

e.g. License-Raj - entrepreneurs and energy gravitate towards where the margin/rent is made

Political systems – alignment with party vs corporate as apolitical, union orientation

e.g. Australia egalitarianism and union “blokes” – rubber floor

Associations – Chambers of Commerce, other formal and information networks

e.g. Expats, Chinese Chamber, National Service)

Health / Social system – degree of care and concern exhibited for employees and social support

e.g. Company clubs in Singapore, NTUC, ready hospitals and clinics), CPF,

Recreation and leisure – quality of life and work-life balance e.g. Perth Surf Story); other traditions – drinking, karaoke, etc.

Religion – Real or imagined; permeates society or is an historical guide to ethics and morality, etc.; often not as expected

e.g. Shaman in Indonesia, Iwii in New Zealand,

1.3 Culture – GLOBE (Global Leadership and Organizational Behavior Effectiveness) Project & Hofsted Cultural (1/2)

Background • 170 researchers, seven years, 8,000 managers and 62 countries across an array of industries and organization type and size.

• Geert Hofstede developed an earlier and similar framework based on his research on more than 116,000 people in 50 countries.

Outcomes • https://globeproject.com/results/countries/AUS

?menu=list#list • Nine cultural dimensions that distinguish one

society from another and have important managerial implications:

• assertiveness • future orientation • performance orientation • humane orientation • gender differentiation • uncertainty avoidance • power distance • institutional collectivism versus individualism; and • in-group collectivism

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1.3 Culture – GLOBE (Global Leadership and Organizational Behavior Effectiveness) Project & Hofsted Cultural (2/2) Measure assertiveness humane orientation power distance

Definition tough, confrontational, and competitive versus modest and tender

encourages and rewards individuals for being fair, altruistic, generous, caring

society expects power to be unequally shared

Country Illustration Germany/ US >4.5 Sweden/Japan <3.5

Ireland, Ppines, Msia >5 Germany, Spain, Fr, Sing <3.5

Morocco, Argentina, Thai. >5 Denmark/Neth. <4

Measure future orientation gender differentiation Institutional collectivism versus individualism

Definition society encourages and rewards future-oriented behaviors such as planning, investing in the future, and delaying gratification

society minimizes gender role differences

individuals are encouraged by societal institutions to be integrated into groups within organizations and the society

Country Illustration Singapore/Switzerland >5 Russia/Argentina <3

Sweden Demark Hungary >4 S. Korea, China /Egypt <3

Greece, Hungary 3; USA 4 S. Korea, Sweden, Sing. 5+

Measure performance orientation uncertainty avoidance in-group collectivism

Definition society encourages and rewards members for performance

seek orderliness, consistency, structure, formalized procedures

Importance of small group cohesion – family, companies, etc.

Country Illustration Sing., HK, NZ, USA 4.5+ Russia, Argentina, Greece <3.2

Sweden, Switz, Germany >5 Russia, Hungary, Bol. <3

Iran, India 6+ Denmark, Sweden, NZ 3.5-4

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Hofstede’s Six Perspectives – How do we vary around the world? (1/3)

Collectivism vs Individualism

Individualism – independence – focus on one’s self and family.

Collectivism – interdependence - village, tribe, etc. – as the focus.

Power Distance

Low-modest power gap, intolerance of power and privilege - youth power, innovation, mavericks

High-vast separation, tolerance of power gasps, age holds on to power, more static economy

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Source: https://geerthofstede.com/culture-geert-hofstede-gert-jan-hofstede/6d-model-of-national-culture/

Hofstede’s Six Perspectives – How do we vary around the world? (2/3)

Masculine vs Feminine

Masculine - the extent to which force and other aggressive traits are embedded in society inc. winning, amassing wealth

Uncertainty Avoidance Society’s tolerance for ambiguity and the degree of anxiety that comes from that uncertainty.

45 Source: https://geerthofstede.com/culture-geert-hofstede-gert-jan-hofstede/6d-model-of-national-culture/

Hofstede’s Six Perspectives – How do we vary around the world? (3/3)

Short vs Long Term Perspectives LT views the world as continually changing requiring constant adaptation and vigilance. ST views the past as the compass, more rigid societal structures.

Indulgence

Indulgent – enjoy the good things in life – food, leisure, friends vs. life is hard, requiring duty, sacrifice, etc.

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Source: https://geerthofstede.com/culture-geert-hofstede-gert-jan-hofstede/6d-model-of-national-culture/

1.3 Implications of GLOBE or Hofstede-style culture work Discussion • What do you think of this? • Does it work? • Do you agree with this?

Cultural Acumen for the Global Manager: Lessons from Project - GLOBE MANSOUR JAVIDAN ROBERT J. HOUSE

• Worth reading • Alternative to a full textbook

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So what?

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Inventing Anna – Ep. 8 – Talking about leaving Russia and being looked down on in Germany. Her mother says, “She always wanted more. She was always looking at magazines, wanting the best shoes, clothes. Lots of girls look at magazines. Most don't commit wire fraud. She got reckless. In Moscow they say, "Why save money for a rainy day when instead you can buy Manolo Blahniks?" "God wouldn't rain on a girl in shoes like that."

• Broadly useful as a guide • Any culture is not homogeneous AND there as many differences within a culture as between cultures

How to use Globe or Hofstede

• Map the differences • https://www.hofstede-insi ghts.com/country-compa rison/

• Determine the implications

• Plan the mitigations and opportunities

• Weave into strategy

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1.3 Culture – Cultural Intelligence - by P. Christopher Earley and Elaine Mosakowski

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Seminal Perspective • Cultural intelligence is approaching the level of IQ and EQ

• IQ – Intelligence Measurement

• EQ – Emotional Intelligence – empathy and ability to read people and situations

• CQ – Cultural Intelligence

Perspective • Take [15-20] minutes and read

the article • “a propensity to suspend judgment—to think

before acting” - Daniel Goleman

• Three stages or approaches • Head/Cognitive – rote

learning (study and understand)

• Body/Physical – begin to apply the learning (even if uncomfortable)

• Heart/Emotional/Motivational – confidence and resilience to engage despite obstacles

• This is LEARNED behaviour

So what do about it? 1. Baseline – knowledge,

tolerance and willingness 2. Training – Develop areas

of weakness 3.Build confidence – practice

simple activities 4.Resource for success –

time, friends, activities, etc. 5.Enter/Jump-in 6.Re-evaluate – improvement

loop(s)

1.3 Cultural Intelligence – Different dimensions of culture

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Traditional Culture –

Country/Region

Discipline Culture

Corporate Culture

Perspective • Three (at least) different types of

culture which stand-alone; and • Interact with the authors • Traditional Culture

• Where are you from? • How do people behave and implications

on business? • Corporate Culture – innate way the

company behaves, makes decisions, etc.

• Discipline Culture – academic and training processes engrain certain behaviours

Module 1 – Presentation 1. SCQA and Structure • Prepare a background discussion on the Company and the

challenges facing the company using the SCQ format. 2. PES

• Using the facts from the case AND using other information generally available, prepare a PESTLE analysis of Indonesia and this sector – the apparel sector

3. TLE • Using the facts from the case AND using other information

generally available, prepare a PESTLE analysis of Indonesia and this sector – the apparel sector

4. Culture Analysis – Five Languages of Culture. 5. Culture Analysis - Hofstede

• Using the Hofstede Model for Cultural Awareness, discuss the items to consider when entering and managing and Indonesian business

• What are the differences and implications? 6. Using the Cultural Intelligence Model, advise the new GM as to

how he should approach learning about Indonesia to ensure he is successful.

Read the Coats International Case Study

Team - Each team will answer one question or perform one type of analysis taken from the first two modules.

Ten minutes – 4-5 slides

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