A Case Study

on

International ManagemantCOURSE No-207

Solutions of Case Studies

Submitted to

Md. Rashedur Rahman

Lecturer,

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Department of International business.

Faculty of Business studies,

University of Dhaka.

Submitted by

MD. Lokman Hossen

Batch: BBA-15(IB-2nd)

Roll No: 38

Course No-207

Department of International Business

University of Dhaka.

Date of submission: February20, 2011.

Case no: Case Contents Page No:

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1 Colgate’s Distasteful Toothpaste. 042 Advertising or Free Speech? The case of Nike and

Human Rights.05 to 06

3 Pharmaceutical Companies, Intellectual Property, and The Global Aids Epidemic.

06-09

4 Cross Cultural Conflicts in the Corning –Vitro Joint Venture.

10 to11

5 Integrating National and Organizational Cultures: Chemical Bank’s Mergers in Europe.

11 to 12

6 Euro Disneyland 12 to177 Wall Mart’s Japan Strategy 17 to 198 KNP.N.V 209 Can Reliance Compete? 2110 The HP –Compaq Merger and its Global Implications

can the Budget Airline Model Succeeded in Asia?22 to 23

11 The Story of Air Asia. 23 to 2412 A copy Shop Goes Global. 2513 The Road to Hell. 26 to 2714 Lord John Browne and BP’s Global Shift 27 to 2915 Chiquita’s Global Turnaround 30 to 32

Part oneBrief Integrative case 1:

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Colgate’s Distasteful ToothpastePage No: 77 to 790 Questions for review :

Question 1: Identify the major strategic and ethical issues faced by Colgate in its partnership with Hawley and Hazel.

The major strategic and ethical issues faced by Colgate in its partnership with Hawley and Hazel are: Colgate has no management prerogative; Hawley and Hazel maintained the right to make the major decisions in the organization. Another issue is racism. In US and in many other countries, a clash had taken place for the logo and name of “Darkie” toothpaste of Colgate.

Question 2 : What do you think Colgate should have done to handle the situation ?

I think, Colgate should have made a apology to all to all insulted groups, should change the controversial name and logo where it creating racial offensiveness.

Question 3 : Is it possible for Colgate and Hawley and Hazel to change the toothpaste’s advertising without sacrificing consumer brand loyalty? Is a possible reason for Colgate’s not responding quickly to domestic complains?

Yes, it can possible by differentiating marketing. Like in US and Asia, different marketing strategy Colgate can use by understanding the difference of consumer need. Yes, that is a possible reason for Colgate’s not responding quickly to domestic

complains, as consumer of Asian market are satisfied.

Question 4 : In the end was a “no management rights” good for Colgate? What could happen during the negotiating process to get around this problem?

No, the clause “no management rights” was not good for Colgate. Then racisms controversy would not take place. To get around this problem, during the negotiation process,

Colgate could have taken significant percentage of management right. Or they could hire third neutral management group for solving the problem.

Brief Integrative case 2:

Advertising or Free Speech? The Case of Nike and Human Rights.

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Page No: 80 to 81Questions for review :

Question 1: What ethical issues faced by MNC’s in their treatment of foreign workers could bring allegations of misconduct in their operations?

The ethical issues which faced by MNCs in their treatment of foreign workers could allegations of misconduct in their operations are unethical use of offshore workers in poorer region of the world.

Question 1: Would the use of third-party independent contractors insulate MNC’s from being attacked? Would that practice offer MNC’s a good defensive shield against charges of abuse of “their employees”?

Yes, the use of third party independent contractors insulates MNCs from being attacked.Yes, that practice offer MNCs a good defensive shield against charges of abuse of “their employees”.

Question 1: Do you think the statements by companies that describe good social and moral conduct in the treatment of their workers are part of the image those companies create and therefore are part of their advertising message? Do consumers judge companies and base their decision on their perception of corporate behavior and values? Is the historic “made in” question now being replaced by a “made by” inquiry?

Yes, I think that statements by companies that describe good social and moral conduct in the treatment of their workers are part of the images those companies create and therefore are part of their advertising message.

Yes, consumers judge companies and base their buying decision on their perceptions of corporate behavior and values. The historic “made in” question now is being replaced by a “made by” inquiry.

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Question 1: Given the principles noted in the case, how can company comment on their positive actions to promote human rights so that consumers will think well of them?

Companies can comment on their positive actions to promote human rights so that consumers will think well of them by focusing consumers’ need, their right actions. I would propose, a company should construct a corporate code of ethics to

overcome this type of problems.

In-Depth Integrative case 1:

Pharmaceutical Companies, Intellectual Property, and the

Global AIDS Epidemic

Page No: 82 to 90Questions for review :

Question 1: Do Pharmaceutical Companies have a responsibility to distribute drugs

for free or at low cost in developing countries? What are the main arguments for and

against such an approach?

Ans: Every pharmaceutical company has the responsibility to give services at

very low cost in developing and poorer countries. Especially the African people

are severely affected by AIDS. Their GDP, NDP and per capita income is very

low. So they have not ability to buy very expensive medicine. Although

developed and developing country governments, NGOs large Pharmaceutical

Companies and their generic competitors all had a hand in this agreement, it was

unclear how it would be implemented and weather action would be swift enough

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to stem the HIV/AIDS epidemic ravaging South Africa and many other countries.

The main arguments are-

● The AIDS epidemic and the potential treatment is very high;

● The people have lower level of education;

● There is no cure or vaccine for AIDS;

● Treatment is very expensive;

● The prices of drugs are low, it should be more reduce;

Question 2 : What are the principles arguments of Pharmaceutical Companies that

oppose to IPR laws for developing countries? What are the arguments by NGOs and

others for relaxing IPR laws?

Ans: The Intellectual Property Rights (IPR) grants investors rights for original

creations. The principles arguments of Pharmaceutical Companies are-

● National treatment. Equal of foreign and domestic nationals.

● Most – favored- nation treatment. Equal treatment of all WTO members;

● Technological progress. The Intellectual Property Rights (IPR) had to strike a balance

between technological innovation and technology transfer. The objective was to

enhance economic and social welfare by making both producers and users benefit;

● How to provide adequate protection ;

● Enforcement;

● Dispute settlement;

● Special transitional arrangements;

Question 3 : What impact would you expect South Africa’s decision to levy duties on

drug imports from Western nations to have on the international distribution of drug of

South Africa?

Ans: Drug discovery was a long, expensive and uncertain process. The European

nations are the world’s most famous drug producing nations. Leading

pharmaceutical companies were large and profitable although all of them have

come under pressure from a range of factors- most notably, calls for lower health

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care costs in most major industrialized countries. In the recent years, the annual

R&D expenditures of the members of the pharmaceutical companies

Question 4 : In June 2002, the WTO extended the transition period during which least

developed countries (LDCs) had to provide patent protection for pharmaceuticals. In

your opinion, is this an appropriate change in policy or a dangerous precedent? What

could be some of the negative ramification of this resolution? What about the effects

for other industries?

Ans: In June 2002, two weeks before the 14th International AIDS Conference in

Barcelona, the WTO council responsible for intellectual property extended until

2016 the transition period during which least developed countries (LDCs) did not

have to provide patent protection for pharmaceuticals. However, the funds

deployed for fighting AIDS were modest. The actions and statements of officials

did not go as far as critics wanted.

Question 5: Given the initiatives announced by global development and aid

organizations and Pharmaceutical Companies themselves, was is necessary to relax

IPR rules in order to ensure that adequate supplies of AIDS medications would be

available for distribution in the developing world?

Ans: In August 2003, the USA and other WTO members announced that they had

finalized a solution to streamline the supply of disease fighting medications to

poor countries. As part of compromise deal, the USA agreed to language that

would allow to compulsory licensing only for genuine health reasons. The USA

president took initiatives for AIDS.

Question 6: What role do MNCs have in providing funding or other assistance to

international organization such as Global Fund?

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Ans: While addressing an African summit, U.N. Secretary proposed creation of a

global fund to combat AIDS. In May 2001, US president announced 200 million

in seed money for the fund. MNCs have responsibility to provide fund for this

purpose. If the international organizations help the African Nations their

responsibility and ethical behavior will be proved. The leading donors are USA,

EU, France, Japan, Italy, UK, and Gates Foundation. I hope the donors will

increase day by day for the AIDS affected people.

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Part two:

Brief Integrative Case 1: Cross-Cultural Conflicts in the Corning-Vitro Joint Venture

Page No: 211 to 212 Questions for review :

Question 1 : Identify and discuss Corning’s strategic predisposition toward a joint venture with Vitro.

Ans: Corning has an ethnocentric predisposition because both companies prefer to follow central strategic predisposition toward a joint venture with Vitro.Question 2 :Cultural clashes among partners in joint ventures are not a new issue. Discuss why an MNC and specifically Corning would be interested in fully understanding the culture of a potential partner before deciding on an alliance.

Ans: An MNC, specifically Corning would be interested in fully understanding the culture of a potential partner before deciding on an alliance because of the following reasons:

● To know cultural similarities of the partner.● To know similarities of corporate-culture and customer oriented philosophies.● Also to know the similarities in history, philosophy, goals and objectives of

both companies.

Question 3 : If Corning and Vitro had decided to remain in the alliance, how could they have overcome their differences to make the partnership a success?

Ans: To make their differences both companies should follow the following directions:You need a solid business opportunity.

● The new enterprise should have a well-defined scope and no major conflicts with either parent company.

● The two partners should make comparable contributions to the new enterprise.

● The management of each parent firm should have the vision and confidence to support the venture through its inevitable rough spots.

● An autonomous operating team should be formed.● Responsibility cannot be delegated.● Both partners should have trust between themselves.

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Question 4 : Discuss why both companies would continue to distribute each other’s products after the joint venture failed. What impact might the public statements about the failure have on this relationship?

Ans: Both companies would like to continue distribute each others products because of their cultural differences in the decision-making process. Corning’s public statements about the failure of their relationship were that they think Mexicans Vitro Company’s decision making process is time consuming than Corning. Vitro’s public statements about the failure of their relationship were that Americans are forward.

Brief Integrative case 2: Integrating National and organizational CulturesPage No:213 to 215Questions for review :

Question 1: What challenges do mergers create for managing national and organizational cultures?

Ans: The challenges that mergers create for managing national and organizational cultures are the following:

● The first challenge that the two mergers face is that there wasn’t a great deal of overlap in Europe between the former competitors; instead, what Aspbury found was a complementary fit among the various businesses.

● Secondly most lower-level employees didn’t have the same degree of certainty and the challenges that senior managers faced were abundant.

● Another challenges faced by two company is the cross-border dimension. It was necessary not only to get former rivals to work together but also to deal with centuries-old cultural differences that could become major impediments to the business going forward.

● Another challenges created by two mergers is team building and communication.

Question 2 : How might the challenges associated with postmerger integration in Europe be affected by the fact that the parents of each company in both mergers were based in the United States?

Ans: The challenges associated with postmerger integration in Europe be affected by managing a business from New York with offices in Atlanta, Chicago and Los Angeles was far different from managing a business from a place where the distances were shorter but the differences in language and history were more intense. s

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Question 3 : What management skills are most important to making a cross-border merger successful? How might these skills differ from those needed during “routine” periods? Ans: The management skills that is important to make a cross-border merger successful by calling product seminars, business reviews and exposure to top executives to build relationships with colleagues to enhance future business opportunities.Question 4 : What specific steps were taken in the two mergers to try to align the interest of different parts of the organizations so that they were all working toward the overall good of the firm?

Ans: The following specific steps were taken in the two mergers to try to align the interest of different parts of the organizations:

● Within days of the announcement, most senior positions were filled thus preventing the natural infighting that occurs when uncertainty exists.

● Call a four-day meeting by inviting 150 bankers from Chemical Europe to Marbella, Spain.

● Changed its name to Chase Manhattan Corporation.

Question 5 : How might diversity among employees of different cultural backgrounds and with varying specialties and expertise actually strengthen an organization’s culture after a merger?

Ans: The interaction of organizational culture and national culture can create impediments to change and constraint managerial options. At the same time, a merger can reenergize organizations, break down barriers to change and provide new opportunities. By this way, an organization can create diversity among employees.

Brief Integrative case 3: Chemical Bank’s Mergers in Europe

Pase No :213 to 215

Question 1 : What challenges do mergers create for managing national and

organizational cultures?

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Answer: Merger has become very popular strategy to enter into the international

business. But it creates lots of challenges for managing national and organizational

cultures. Some are given in the following:

Managing with different languages

● Language is an essential part of every culture. Merger may be created between

two companies from completely different cultures as well as languages. It would

be the most sensitive issues for both companies. So, all internal and external

parties have to deal very carefully in every aspect of business activities.

Different types of historical background

● Every country or nation has particular type of historical background. It always

influences their business activity as it’s a part of the culture. So, all should

properly handle with others history and heritage.

Communication process

● Regular meeting, get-together; these are very important in merger. Both

companies should try to maintain an effective communication process. Without an

efficient communication process, no company can sustain in the long-run.

Level of coordination

● Coordination may differ from one country to another. It has an impact in the

overall activity of business. Merger may create conflicts in this coordination

sector.

Question 2 : How might the challenges associated with postmerger integration in

Europe be affected by the fact that the parents of each company in both mergers were

based in the U.S?

Answer: Fortunately, the prospect of working for a successful new company helped

managers overcome many of the obstacles in Europe. Focusing on common denominators

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rather than on differences was so important. Communication was a key element in this

regard. Bimonthly meeting in London of country managers became the norm. Reward

system is another factor. It includes bonus. Language and historical background are very

influential in this case. Level of coordination is another issue. These challenges were the

fact. So, both mergers were in the U.S.

Question 3: What management skills are most important to making a cross-border:

merger successful? How might these skills differ from those needed during “routine”

periods?

Answer: The skills needed to make a cross-border: merger successful are in the

following:

Communication skills

● Routine meeting, local community; these are very much important in an effective

communication process. Merger will become more and more successful,

meaningful and sustainable in the long-run.

● Reward system

● Reward system is another issue. It creates motivation among the employees. Thus,

it makes the merger more successful.

● Adopting with different cultures

It involves understanding:

-Historical background

-Language

-Ethical issues

-Level of coordination

Question 4 : What specific steps were taken in the two mergers to try to align the

interests of different parts of the organizations so that they were all looking toward

the overall good of the firm?

Answer: Some specific steps were taken which are given in the following:

● Meeting with bankers

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All the bankers were organize meeting and consult about the important issues. They

thought about the overall goodwill of the firm and they also discussed about the solution

of the problems.

● Building relationship with the colleagues

Relationship is an essential part of modern business that helps an organization to create a

feasible environment. The company built a strong relationship with their colleagues to get

the idea about the overall situation and environment.

● Effective reward system

Reward is an effective motivator for the employees. The company established an

effective reward system to motivate the employees. Because they were the people who

would take the organization in the long run. So, motivation as well as reward/bonus was

established.

● Team building

Team work is an important factor now-a-days. It is better than doing a job individually.

Each member can share their expression and solve the problem in the best possible way.

So, the company tried to establish proper team work environment.

● Effective communication

Strong communication is very necessary in modern competitive business age. Without

proper communication among the related parties, no business can sustain. so, the

company wanted to set up a better level of communication.

Question 5 : How might diversity among employees of different cultural backgrounds

and with varying specialties and expertise actually strengthen an organization’s culture

after a merger?

Answer: Diversity among employees of different cultural backgrounds and with varying

specialties and expertise is strength of an organization. After merger, two different

companies become close and they can share their feelings, ideas, plans, perspectives,

viewpoints etc. It is very much helpful to overcome complexity and tackle problems.

Both companies can consult from their own perspectives and think which strategy is

better for the specific problem. Experience, another important issue. of business, can help

the companies to survive in the competitive world. By sha

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Depth Integrative case 1: EURO DISNEYLAND

Pase No:216 to 225

Question 1 : Using Hofstede’s four cultural dimensions as a point of reference, what are

some of the main cultural differences between the U.S. and France?

Answer: Hofstede’s four cultural dimentions are:

● =Uncertainty avoidance

● =Power distance

● =Individualism Vs Collectivism

● =Masculinity Vs Femininity

According to these sectors, the main cultural difference between the countries is

that the U.S. believes in individualism. But France believes in collectivism. They

don’t want to see their children as a customer in business field. But U.S. wants to

make profit if it is profitable to do business by motivating children.

France culture likes to be stable in every case. They want certainty in business

which is absolutely opposite to the U. S.

Question 2 : In what way we has Trompenaars’s research helped explain cultural

differences between the U.S. and France?

Answer: Trompenaar’s cultural dimensions are:

● = Universalism Vs Particularism

● = Individualism Vs Communitarianism

● = Neutral Vs Emotional

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● = Specific Vs Diffuse

● = Achievement Vs Ascription

According to these dimensions, his research told that universalism is believed by

the U.S. rather than France because they made the infrastructure of Disney Land

according to their own culture. They didn’t think about the other’s sentiments.

Then, individualism is followed by the U.S. more than France. So, many critics

said that Disney made the children “customer” rather than human being.

Moreover, people in France are emotional as we can see that the farmers raise

their voice for the Disney symbol. In this way his research helped explain

differences between and France.

Question 3 : In managing its Euro Disneyland operations, what are three mistakes that

the company made? Explain.

Answer: In managing Euro Disneyland operations, three mistakes that the

company made. They are given in the following:

a. There was a great problem for personal space. People of France were too close

with others. But foreigners might want to have personal space for themselves.

It was one of the main problems that the company faced.

b. Disney placed its first work bids in English, leaving smaller and medium-

sized French firms feeling like foreigners in their own land.

c. Disney was forced to bail out 40 subordinators who were working for the

Gabot-Eremco construction constracting group, which had been unable to

honor all of its commitments.

Question 4 : Based on its experience, what are three lessons the company should have

learned about how to deal with diversity? Describe each.

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Answer: The company experienced so many lessons from their operation in

different countries associated with different cultures. Most important three lessons

are:

● All should respect others culture, beliefs and value.

● People should respect others feelings.

● Company should treat in terms of the host-county’s income, economy and

financial condition.

Depth Integrative case 2 : Wal-Mart’s Japan strategy Page No :226 to 232Questions for review :

Question 1 : Do you believe Wal-Mart can be successful by circumventing the current Japanese distribution system? What are some of the problems you foresee?

Ans: Yes, I believe that Wal-Mart can be successful by circumventing the current Japanese distribution system because its distribution system was to sale high quality products at a minimum cost and customers were also satisfied with their distribution system.Some of the problems that I foresee are:

1. Multilayered distribution system.2. Adaptation process of technology.3. Long and costly networks of suppliers which frustrates foreign investors.4. Local marketing competition.

Question 2 : Do you agree with Wal-Mart’s entry strategy? What are some of the inherent risk? Do you think that a faster market entry would be more effective?

Ans: Yes, I agree with Wal-Mart’s entry strategy in Japan, because there was lot of opportunity o be successful in food manufacturing industry.Inherent risks:

5. Cultural diversity: Japan’s retail market has its own cultural specific quirks that are often different for outsiders to fully grasp.

6. Strong competition with local competitors.7. A high failure risk for a new company to entry.8. Consumer’s different thinking about price and quality.

I don’t agree that a faster market entry would be better, because it is important to identify, analyze a market opportunities and threats successfully before entering into a market.

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9. In your opinion, what is the single most important thing Wal-Mart can do to ensure success in Japan? Explain.

Ans: Japanese consumers realized through Wal-Mart that lower price doesn’t always mean lower quality. So Wal-Mart can focus on low cost of product with maximum/ good quality.

Question 3 : Do you think Wal-Mart is doing enough cross-cultural training with its Seiyu employees? What are the greatest challenges Wal-Mart faces in relating to its Japanese employees?Ans: Yes, I think Wal-Mart cross-cultural training programs was enough , related to achieve their goals.Greatest challenges Wal-Mart faces:

10. Language barriers because Japanese employers have to transform their language into English.

11. Technological barriers.12. Differences in management practices.

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Part Three:

Brief Integrative case 1:

Kaninklijke Nederland paperfabrieken, n.v (K.N.P,N.V)

Page No: 345 to 349

Questions for review :

Question 1: In formulating its strategies for the next decade , what are the first steps that KNP should undertake?

In formulating its strategies for the next decade KNP should developed its integrated production operation that uses softwood to manufacture pulp instead of the chemical pulp purched in the international commodity markets.

It can shippe antiquated paper machines or convert equipment to less developed countries where labour and energy costs are lower.

Question 2 : What types of organizational arrangement does the frim use currently?

Now KNP is a global organization. Its current arrangement is to entering new market with high quality products and relatively lower cost by using forest harvesting.

Question 3: If it expanded operations into north America what type of structure would you recommend it uses?

If it wants to expand its operation in north American market KNP should be globalized company that means it should manufacture products in north America. Because the U.s market s already have been penetrated because of the decline value of dollar and the superior quality of certain European paper products . It also has to consider transportation costs and the advantages of U.S producers that have forest resources.

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Question 4: In controlling operations, on what types of performance should K.N.P be focusing its attention?

To control operation K.N.P should improve productivity, quality, cheek pries by using harvest forest and converting equipment to less development countries .

Brief Integrative case 2 :

Can reliance compete ?

Page No: 350 to 351

Questions for review :

Question 1: What strategy have the reliance owners used to gain favorable treatment from the Indian government?

Reliance owners used some strategies to gain favorable treatment from the Indian government, such as

13. For telecom business ,it vowed to forge ahead anyway with its plans to offer cheap mobile service across India

14. In oil business, it helped to reduce the nation, s spends on refined oil by building its own refinery.

Yes t think the reliance strategy’s are smart .the positive of these strategies are that the India can use cheap service as well as develop its own industry.

The negative side of these strategies are that reliance will dominate the Indian telecom and oil market.

Question 2 : D o you think Reliance can compete against outside MNCs who do business in India? Do you agree with analysts who say Reliance will find the telecom business hard going?

Yes, I thank that the reliance telecom will compete against MNC s who do business in India disagree with analyst who say reliance will find the telecom business, hard going ,.because

15. The reliance is favorite in India and overseas investor with applaud fiscal management.16. Reliance is improving it technical support by building 37000 miles fiver optic backbone

through India and hopes to dominate and global data and voice traffic.

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17. It is ready to do well against foreign rivals with deep pockets, local expertise and government subsidies

Depth integrated case 1

The HP-Compaq Merger and Its Global Implications:

Page No: 352 to 357

Questions for review :

Question 1: Do you believe that the new HP has communicated its combined offering effetely in its international markets?W hat else needs to be done?

Yes

I believe that the new HP has communicated its combined offering effetely in its international markets . because new HP has already increased it sales reduced competitive nature of the market through inherent business value and fast changing technology.

HP also needs to clear the idea of a unified HP –Compaq and develops communication infrasture.

Question 2: What are some of the entry and organizational challenges that HP faces?

HP faces some entry and organizational challenges. Such as

1.communication barriers

2.fast changing technology

3.fieerce compition

4. unclear idea of a unified HP-C ompaq in all countries

5. overall manegarial challenges etc

Question 3: What will be in impact of the Eu,s single momentary union on HP in Europe?

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THE European commission approved the merger in early 2002 after competition . expart found that it would not pose a detriment to Europe ,s it sector. The commission agreed that HP would not be in a situstion position to raise prices because of the lack of significant barriers to entry in this space

Question 4 : Should HP move to a direct selling model to battle Dell overseas?

Yes, HP should move to a direct selling model to battle Dell overs. Because European consumers have already begun to show a tendency to be less committed to buying through local retail changes and purchasing local brands.

Question 5 :.How much of an impact do you fell HP,s i-communities will have the company,s future sales? Do you think this from of international coporate social responsibility will contribute to the bottom line?

HP,S i-communities will have increased company,s future sale .because i- communities use public and private partnership to boost ecomic development through technology while building markets, testing, products and honing the gloval savvy of HP leaders.

I also think this form of international corporate social responsibility will continue to the bottom line

Question 6: In your opinion ,what are the three best things carly Fiorina has been able to accomplish by merging HP and Compaq?

The full impact of the HP –Compacq merger on HP, s global strategy is still unclear .integrating two large companies is challenging enough in itself. But ib an environment of fast changing technology, fierce competition and declining entry barriers .the change is formidable.

Depth integrated case 2

Can the Budget Airline Model Succeed in Asia?

Questions for review :

Question 1: what opportunities exist in the Asia-Pacific region for the entrance of new low-fare airlines? How might demand for low-fare services differ in the Asia-Pacific region and in North America and Europe?

The entrance of the low fare airlines in the asia pacific region has many opportunities .such as

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18. In the Asia- pacific region there are many populations 19. The Air Line Company can recruit employ in low cost.

The demand for low fare price services differ in the asia pecific region from north America and Europe because per income is lower in asia pacific than north America and Europe .

Q uestion 2: Do governments pose a significant obstacle to the expansion of low-fare airlines in Asia?

No the government does not pose a significant obstacle to the expantion of low fare airlince in asia . on the other hand government encrages the airlines companies to expand their business in asia by reducing regulation .

Question 3 : Compare Air Asia’s Strategy with the Strategies of South-East and Ryanain. How is it similar to and different from the strategies of those carries?

Air Asia ,s strategy was to cut down its fare price to expan its business in low income countries sucs as Malaysia , butan etc .on the other hand south west and ryanair want to improve their service by using narrow –body fleed.

Question: 5 Did Tony Fernandes weight the range of political, economic, and operational risks when he took over AirAsia? What risks might he have overlooked?

Tony fernands had entrepreneurial fair from the start. His entrepreneurial strategy was business motive that helped to expand business such as ipo advertising etc .

Q uestion:7 How do you think that the asian passenger air transport marketplace will skake out

Yes I think that the asian passenger air transport marketplace will skake out because in a low fare the passenger will eager to travel in air rather than bus or train.

The north American and Europe an experience teachs us that fare should be reasonable according to income.

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Part Four Brief Integrative case 1: A copy shop goes globalPage No:509 to 511Questions for review :

Question 1: What are some of the general challenges of starting a new business in another country? What specific challenges did Copy General face in Eastern and Central Europe?Ans: it is very important to know the attitudes, norms, behavior of different countries cultural variability. There are also some obvious things that country should require. They are-

● Political and legal issues;● Region of that country;● Religion;● Sovereignty;● Economic stability;

There were several obvious things that copy shop faced in Estern and central Europe.

● look for supplier; he think that it would be easy.● to arrange for copiers for new store● then conducting Kodak, which is major competitor;

Question 2:.How important was Paul Panitz’s vision to the decision to go to into Hungary? How would you characterize his leadership and management style and his commitment to “doing well by doing well”?Ans: Paul Panitz' s vision to the decision to gon in to Hungary was very important. they set their sights on Hangary . in keeping with company policy, they were notorious for preson. his leadership and management style and his commitment to "doing well by doing good" is charackterized by participative leadership.

Question 3 : Compare the recollections of Ken Chaletsky a U.S. manager with Copy General and Euro Duda, Copy General’s initial country manager in Hungary. How do their perspectives differ and how do they reflect the cultural values of their respective the cultural values of their respective countries?

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Brief Integrative case 2: The Road to HellPage No:512 to 514Questions for review :

Question 1: What mistake did John Baker make? Why did he not realize this mistake when it occurred?

Ans. John Baker‘s mistakes were that he try to “groom” Matthew Rennalls about racial consciousness and insulted Matthew Rennalls ‘s environment.

“My ancestors have all been bought up in commercial environment for the past 200 or 300 years and I have therefore been able to live in a world in which commerce has been part and particle of my being. In your case the situation is different because you an your forebears have had only some 50or 60 years in this commercial environment. You had to face the challenge of bridging the gap between 50 and 200or 30 years.”

- John Baker

John Baker did not realize this mistake when it occurred because there was difficulty in understanding what Hutchins wants to say about Matthew Rennalls .

Question 2: What does this case illustrate about human resource management in the international environment? Be complete in your answer.

Ans. Human resource management in the international environment:

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a. Sources of human resources:Many countries expect the MNC to hire local talent. Many use home country manager to get the operation started than they turn things over to host country managers.

Reasons:

● familiar with culture● know the language● less expensive and● hiring them in good public relation.

b. Selection criteria for international assignments:● General criteria● Adaptability to culture change● Independence and self reliance● Physical and emotional health● Age, experience and education● Language training● Motivation for a foreign assignment● Spouses and dependents or work family issues● Leadership ability● Other consideration● Depth integrated case 1● Lord John Browne and BP’s Global Shift

Depth integrated case 1: Lord John Browne and BP ‘s Global Shift: Page No :512 to 520Questions for review :

Question 1: Discuss John Browne’s leadership style. How would you characterize his approach to global management?

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Ans. John Browne is following participative leadership style – the use of both a work or task centered and people centered approach to leading subordinates.

The redesigned offices were intended as a way to support and encourage the adoption of BP’s emerging corporate values of knowledge sharing and environmental sensitivity among all employees.

Browne hoped that this new setting would help stimulate employee relationships and information exchange.

He believes that knowledge sharing would eventually begin through a sort of osmosis among co-workers.

According to Browne, acquisitions played an important role in convincing employees that a change in culture was justified and that the new entity would become a more pleasant place to work.

Question 2 : How much of an impact do you think BP’s marketing efforts will have on shareholder value?

Ans. “Share holder value and social responsibility support each other. We should view climate change, pollution and all the related environmental issues industry faces as another form of opportunities.”

-Regional President of BP in Asia

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The marketing strategy of BP in Russia increased its share holder value.

Question 3 : Discuss the pros and cons of BP’s strategy in Russia, both short-term and long-term. What challenges has BP faced in its effort to become a major player in Russia?

Ans.

The pros and cons of BP’s strategy in Russia, both short-term and long-term:

a. It was first time a western oil company had been successful in acquiring a major equity stake (50 percent) in a Russian oil firm.

b. BP’s had the opportunity to export to Asia and Europe.c. The deal increased BP’s oil reserves by more than 50 percent.d. Now TNK-BP is Russia’s third biggest oil and Gas Company.e. In 2003, TNK-BP added $105 million to BP’s net income.

The Challenges BP faced in its effort to become a major player in Russia:a. Although the firm had secured real assets and real cash flows, the economics of

the deal did not seem to be as positive as forecasted.b. It is not too long ago BP and TNK were at war (1990s).c. The margins and returns of selling off some mature assets and moving capital

into the region have been lower than expected.

1. Discuss the difficulties of simultaneously securing growth and promoting social responsibility for oil and gas firms. What are the major challenges?

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Ans.

The difficulties of simultaneously securing growth and promoting social responsibility for oil and gas firms:

● Securing future reserves is crucial to growth, but BP focused most on the development and marketing of corporate social responsibility programs worldwide.

● By 2000, BP had developed 300 international environmental programs to convey a séance of corporate social responsibility.

● Despite receiving more than 90 percent of its revenues from fossil fuels, BP is exploring clear fuel sources such as natural gas.

● Challenges:

● In 1997, BP cut its greenhouse gas output, generating some consternation among rivals who did not support this commitment.

● In 2002, BP stopped all corporate political contributions in the U. S.

● The marketing of BP had to change also.

● BP had to face the critics about its new policies (use of hydrocarbons).

● BP spent $7million in research and preparation of new brand.

Depth integrated case 2:

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Chiquita’s Global Turnaround

Page No :521 to 527Questions for review :

Question 1: How would you characterize Chiquita’s historic approach to global management?

Ans. Chiquita had engineered the beginnings of a turnaround. One of the most impressive aspects was redefining its reputation through open and transparent approach to global operation and to the various stake holder groups. Chiquita adopt Better Banana Project to improve environmental and worker condition. The adaptation of third party standards helped Chiquita to cut costs. Chiquita got corporate citizen of the America award for Chiquita’s Nuevo San Juan Home-ownership project in Honduras.

Question 2 : Describe Chiquita’s approach to human resource management in its global supply chain. What particular human resource challenges does Chiquita face as the purchaser, producer, and supplier of a commodity?

Ans. Chiquita’s approach to human resource management in its global supply chain:

● Many employee live in house owned by company● Chiquita provide electricity ● Potable water● Medical facilities● Other basic services.● Development of employee

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● Encourage teamwork● Recognize employee for success

Question 3: Does Chiquita’s global corporate responsibility (CR) program create a conflict between shareholder and other stakeholders? Who are Chiquita’s main stakeholders in the United States and around the world, and how are they affected by Chiquita’s CR program?

Ans. Chiquita’s main stakeholders in the United States and around the world are consumers.

Consumers affected by Chiquita’s CR program:

● Chiquita treat people fairly and respectfully

● People see fruit as branded

● CR created expectation about Chiquita

Question 4 : How would you characterize Chiquita’s past and present leadership? How does leadership affect a company’s overall reputation?

Ans. Chiquita’s past leadership:In past Chiquita used Authoritarian style-the use of work centered behavior designed to ensure task accomplishment.

● Cold● Uncaring● Indifferent● Frustrated with mediocre returns● A lack of innovation

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● A demoralized workforce● Hostile relationship with labor unions and employees

Chiquita’s present leadership:In present Chiquita uses Paternalistic style-the use of work centered behavior coupled with a protective employee centered concern.

a. Integrityb. Respectc. Opportunityd. Responsibility

Question 5: Do you believe Chiquita’s would have changed its policies without the presence of damaging stories in the media? If not, what does this say about Chiquita’s old management style?

Ans. No, I believe Chiquita would not have changed its policies without the presence of damaging stories in the media. Chiquita’s old management style was Authoritarian leadership.

Question 6 : What challenges does Chiquita’s new CEO face in continuing to turn the company around and balance the interests of competing stakeholders?

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Ans. Traditionally relations between Chiquita and labor union in Latin America were mired in conflict and mistrust. Management struggled with the decision of whether to adopt an outside standard or to develop an initial measurement gauge for corporate responsibility.

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