Discussion Board Q's Chapter 14-20

17-4 Chapter 17: Using International Logistics for Competitive Advantage

Chapter 17: Using International Logistics for Competitive Advantage 17- 3

Chapter 20

Developing a Competitive Advantage

lEARNING oBJECTIVES

At the end of this chapter, YOU SHOULD:

Identify characteristics of good written communication.

Identify characteristics of good oral communication.

Identify characteristics of the good usage of weights and measures (metric system).

Identify the importance of cultural sensitivity.

Review specific advice given in preceding chapters.

Preview

This chapter is more prescriptive than the preceding nineteen, which were mostly descriptive. It is written with the idea that there are some “good practices” in international logistics that students should be aware of. In particular, the chapter focuses on good written and oral communication with the introductions of “International English” and “Special English.” It also emphasize the fact that the United States is the sole country in the world to not use the metric system, which is a competitive disadvantage for exporters, and that they should adopt it for all of their export sales. Finally, the chapter briefly re-emphasizes the importance of good intercultural sensitivity, and restates the prescriptive advice given in the chapters on Incoterms, terms of payment, currency of transaction, document preparation, and packaging.

Chapter Outline

20.1 Communication Challenges

I. Language barriers:

a. People communicate in a foreign language

b. All communication takes place through impersonal means (e-mail, fax, letters)

c. No immediate feedback (time differences, lag between questions and answers)

II. English has become “everybody’s second language”

a. Many languages are much more difficult to learn than English

b. Native speakers of English have an advantage

c. Native speakers of English need to be careful in their communications

20.2 International English

I. A technique of written communication in the English language, developed by Edmond Weiss

II. It consists of removing all possible ambiguities, so that the communication can be understood by someone with a limited knowledge of English

III. Using International English in written communications can help build a competitive advantage

IV. Always assume that the person for whom English is a second language is relying on a dictionary for some words; use the word with the clearest definition

V. Always proofread carefully and avoid all grammatical and spelling errors

VI. Always make sure that quantitative information will be understood without doubt

VII. Always use simple and short sentences, containing only one idea, and avoid all stylistic “shortcuts”

VIII. Never use idioms that are sport or military related, as they are rarely, if ever, understood properly

20.3 Special English

I. A technique of oral communication in the English language, developed by the Voice of America

II. It is designed so that the oral communication can be understood by someone with a limited knowledge of English

III. Using Special English in phone conversations and in-person conversations can help build a competitive advantage

IV. Sentences should be short and contain only one idea

V. The vocabulary should be limited to correct and accurate terms

VI. The speed at which the sentences are spoken should be slower

VII. If a foreigner asks a native speaker to repeat a sentence, do not repeat it louder: the native speaker should repeat the sentence using slightly different vocabulary or repeat the sentence and offer an alternative word

20.4 Metric System

I. It is widely adopted worldwide (the only system of measurement for many countries), but not commonly used in the United States

II. Using the metric system, which has a very well defined set of measures, in all transactions is advantageous to everyone involved

III. The simple conversion of U.S. units into metric units is not appropriate; the direct “translation” of round units into awkward decimal quantities in the metric system is not useful: use “round” units of measurement

20.5 Cultural Sensitivity

I. Learn the way people address each other in person, in the mail or over the telephone, and the level of formality that such interactions necessitate

a. Always err on the side of formality

II. Understand the work culture of a country

III. Recognize that there are culturally determined differences in the way people respond to requests

IV. Learn the ways in which people spend their workday

20.6 Specific Advice (Summary of points already made in preceding chapters)

A company can obtain a strategic advantage over its competitors by making customer-driven decisions:

I. By offering terms of payment that are favorable to the customer, while protecting itself from the risk of default

II. By choosing a currency of payment that is convenient to the importer, while hedging its transaction exposure

III. By being flexible in the choice of Incoterm in a particular transaction

IV. By being very careful and diligent in its document preparation

V. By using appropriate and thoughtful packaging alternatives

Key terms

competitive advantage

A situation in which a company has acquired competencies and knowledge that gives it an advantage over its competitors.

formality

A way for a person to interact with other individuals that uses conventions and regimented forms of address.

International English

A technique of written communication in the English language, developed by Edmond Weiss, that consists of removing all possible ambiguities, so that the communication can be understood by someone with a limited knowledge of English.

metric system

A decimal measuring system developed in the late eighteenth century. Since the 1960s, it has been officially known as the International System of Units (abbreviated SI, from its French name, the Système International d'Unités). Widely adopted worldwide, it is not commonly used in the United States.

Special English

A technique of oral communication in the English language, developed by the Voice of America, that consists of a limited vocabulary and of simplified sentences, so that the communication can be understood by someone with a limited knowledge of English.

PowerPoint SLIDES – STUDY THEM – PRINT THEM OUT !

· Communication Challenges (3 slides)

· International English (6 slides)

· Special English (5 slides)

· Metric System (2 slides)

· Cultural Sensitivity (2 slides)

· Specific Advice (6 slides)

Additional Resources

Weiss, Edmond H., The Elements of International English Style: A Guide to Writing Correspondence, Reports, Technical Documents, Internet Pages for a Global Audience, M.E. Sharpe Inc., Armonk, New York, 2005.

Beamer, Linda and Iris Varner, Intercultural Communication in the Global Workplace, 5th Edition, 2010, McGraw-Hill-Irwin, New York, New York.

Lustig, Myron W. and Jolene Koester, Intercultural Competence: Interpersonal Communication across Cultures, 6th Edition, 2009, Allyn & Bacon, Pearson Education, Boston.

Special English News, Voice of America, http://www.voanews.com/specialenglish.

CultureGrams, http://culturegram.stores.yahoo.net/incul.html or http://www.culturegrams.com (Brigham-Young’s CultureGrams).