10 Page Portafolio
QuinonesRVQ Week 4 - Assignment
1. Examine the countries where your company does business according to where they rank on the Hofstede cultural dimensions. Think of some examples of how a U.S. manager would need to modify his or her behavior when communicating with associates from one or more of these foreign countries.
Becoming a manager for the first time is no easy task. One day you’re happily doing your own work and achieving your goals, and then, suddenly, your work life does a 180: Instead of focusing on yourself, you have to focus your attention on others. You have to motivate others, build relationships with your team, and give effective feedback. You need to have empathy and understanding, but command respect. You need to be direct and assertive, but not so much that you crowd out others’ contributions. You need to take responsibility, while at the same time giving others the autonomy to grow. The changes can be dizzying and often require an entirely new set of skills.
Imagine now that you have to do all of this in a foreign country, not only outside your personal comfort zone, but outside your cultural comfort zone as well.
Some of the countries in which Littles Caesars operates are: Canada, Mexico, USA, Middle East (Saudi Arabia).
Canada/USA: can be characterized as an Individualist culture. Similar to its American neighbor to the south, this translates into a loosely-knit society in which the expectation is that people look after themselves and their immediate families. 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” or “best-in-the-field.”
Canadian culture is more “uncertainty accepting.” This is indicative of the easy acceptance of new ideas, innovative products and a willingness to try something new or different, whether it pertains to technology, business practices, or consumer products.
They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results. Both countries exhibit a willingness to realize their impulses and desires with regard to enjoying life and having fun.
Mexico/Saudi Arabia: People accept a hierarchical order in which everybody has a place and which needs no further justification. They both are high 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 and have a preference for avoiding uncertainty. In these cultures there is an emotional need for rules (even if the rules never seem to work). They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results.
https://www.hofstede-insights.com/country
https://opentextbc.ca/principlesofmanagementopenstax/chapter/hofstedes-cultural-framework/
2. Does your company operate in any countries that are considered very politically or economically risky? Little Ceasar’s operates internationally. One of the countries where is a franchise is located in in Jordan. Jordan is an Arab country in Western Asia, on the bank of the Jordan River. Jordan is bordered by Saudi Arabia. The risk is caused by political and assimilated events connected to cross-border transactions.
https://www.theglobaleconomy.com/Jordan/political_risk_long_term/
3. Does your company primarily operate in civil law or common law countries? What are some of the implications of this? The company primarily operates in common law countries; however, there are many franchises in locations that operate in civil law mainly in Central and North American countries. Some of the implications of this is the differences between both laws. For example, the legal system for civil law originates in Europe, which core principles are codified into a referable system which serves as the primary source of law. As for common law its legal system is developed by judges through decisions of courts and tribunals. Common law and civil law systems affect how business is conducted within a country's specific jurisdiction. Such systems of law also affect how international business is supervised in terms of compliance issues and taxation laws. ... Overall, a common law system is less prescriptive than a civil law system
https://www.diffen.com/difference/Civil_Law_vs_Common_Law
4. Has your company purchased any insurance from the U.S. Overseas Private Investment Corporation (OPIC)? I am not sure but most likely no. I did not find any information or articles on Little Caesars purchasing OPIC in which provided innovative, comprehensive and cost effective risk mitigations products to cover losses to tangible assets, investment value and earnings that result from political uncertainty.
5. What are some key intellectual property protections, if any, that your company possesses? When do these protections (e.g., patents) expire? How does your company intend to recoup lost revenues due to any patent or other intellectual property protection expirations? Little Caesars has approximately about 22 Patents. I could find any information as to when the patents expired. Examples of some of the patents for the franchise are: System and method for managing the delivery of food product, Automated Pizza Assembly System, Digital Menu Board System w/cash register and kitchen Interface, Packaging for pizza etc...
https://patents.justia.com/assignee/little-caesars-enterprises-inc
6. Find the Corruption Perceptions Index (CPI) score for two countries where your selected company does business, one country with a relatively high score and one country with a relatively low score. Search for news stories about corporate financial scandals in these two countries. Prepare a short summary of news stories about financial scandals in these countries. Briefly describe what you perceive are the risks of corruption, such as paying bribes, that your selected company might face in these countries. Mexico is one of the countries with a high score within CPI whereas Canada is consistently a top performer with a low score. Mexico’s corruption is perceived by citizens and businesses alike as one of the main challenges in the country, and its effects have further aggravated the crisis in the judicial system, the failings of the police force and the wave of violence linked to organized crime. Drug traffic-related murders in the Latin American nation are often committed with weapons smuggled in from the US. Meanwhile, American overdose deaths, from drugs that frequently originate in or travel through Mexico, surged to about 70,000 annually in recent years, Canada contributed to corruption abroad. Low enforcement of anti-corruption laws is evident in the recent case against SNC-Lavalin, a Canadian construction company, in which allegedly paid US$48 million in bribes to Libyan officials.
https://www.dw.com/en/mexico-murder-rate-reaches-record-high/a-52081743
https://www.occrp.org/en/daily/9878-canadian-engineering-company-set-for-trial-over-bribery-in-libya
7. Determine your company’s mode of entry into foreign markets. This should be based upon a serious analysis of your company’s risk-return tradeoff. In your opinion, has your company taken the right approach? Much growth of Little Ceasar’s has been concentrated in Central America and Middle East. In some countries the franchise only has one store which provides more opportunity for growth in the international markets.
8. Does your company have an exit strategy? Recall that exit strategies are to be determined before entry into the foreign market, rather than after entry. Franchises in general should a written plan in place for either selling or transitioning ownership to a family member. Also tax consideration when selling a franchise.
https://www.forbes.com/sites/edteixeira/2018/08/22/franchisees-need-to-have-an-exit-strategy/#227bc5924cf3
9. Critically and objectively evaluate how ethical your company’s global operations are and determine if they are good corporate citizens (i.e., do they have a well thought-out corporate social responsibility program for the long term?).
They are good corporate citizens based on their companies' values which consist:
Integrity and Ethics
Value, product quality
Customer Service
Excellence
Urgency
10. What is the corporate mission statement of your target company, assuming it has one? How well do the company’s actions adhere to its stated mission? Their statement is “to be an innovative global leader by focusing on convenience, exceeding customer expectations with extraordinary value and great tasting products, provided by outstanding people resulting in strong returns to our stakeholders.” -- Little Caesars Inc.
11. With respect to its strategy formulation, would you categorize your company as a shareholder model or a stakeholder orientation? Why? Shareholder because a person who buys the franchise becomes the owner and their main focus in return on their investment rather that the performance of the company.
12. Is the company a stateless corporation? If not, is the company on its way to becoming a stateless corporation? I could not find any information regarding if this franchise was a stateless business.
13. What type of organizational structure is the company currently using? S-Corp due to the tax benefits afforded to smaller businesses with few stakeholders. A franchise is not a legal structure but a is a business model that can operate as a sole trader.
14. Do you think the company may benefit from a hybrid or matrix structure? Why or why not? I think it would benefit more a matrix structure because it combines both functional and a divisional organization at the same time. Decentralized decision making, better product coordination, flexible utilization of manpower and other resources. Hybrid structure requires of huge staff members both at the corporate level and operational level which make control difficult.
https://online.pointpark.edu/business/types-of-organizational-structures/