A

Case Study on

International Managemant
COURSE No-207

Solutions of Case Studies

Submitted to

Md. Rashedur Rahman Lecturer,

5

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:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Case Contents
Colgates Distasteful Toothpaste. Advertising or Free Speech? The case of Nike and Human Rights. Pharmaceutical Companies, Intellectual Property, and The Global Aids Epidemic. Cross Cultural Conflicts in the Corning Vitro Joint Venture. Integrating National and Organizational Cultures: Chemical Banks Mergers in Europe. Euro Disneyland Wall Marts Japan Strategy KNP.N.V Can Reliance Compete? The HP Compaq Merger and its Global Implications can the Budget Airline Model Succeeded in Asia? The Story of Air Asia. A copy Shop Goes Global. The Road to Hell. Lord John Browne and BPs Global Shift Chiquitas Global Turnaround

Page No:
04 05 to 06 06-09 10 to11 11 to 12 12 to17 17 to 19 20 21 22 to 23 23 25 26 27 30 to 24 to 27 to 29 to 32

Part one
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Brief Integrative case 1:

Colgates Distasteful Toothpaste
Page 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 toothpastes advertising without sacrificing consumer brand loyalty? Is a possible reason for Colgates 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 Colgates 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:

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

Page No: 80 to 81 Questions for review :

Question 1: What ethical issues faced by MNCs 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 MNCs from being attacked? Would that practice offer MNCs 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.

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 90 Questions 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 to stem the HIV/AIDS epidemic ravaging South Africa and many other countries. The main arguments are5

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 Africas 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 worlds 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 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? 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.

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 Cornings 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.

Question 4 : Discuss why both companies would continue to distribute each others 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. Cornings public statements about the failure of their relationship were that they think Mexicans Vitro Companys decision making process is time consuming than Corning. Vitros public statements about the failure of their relationship were that Americans are forward.

Brief Integrative case 2:

Integrating National and organizational Cultures

Page No:213 to 215 Questions 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 wasnt 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 didnt 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

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 organizations 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 Banks Mergers in Europe Pase No :213 to 215 Question 1 : What challenges do mergers create for managing national and organizational cultures?

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 its 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

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

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

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

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

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 organizations 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

Depth Integrative case 1:

EURO DISNEYLAND Pase No:216 to 225
Question 1 : Using Hofstedes four cultural dimensions as a point of reference, what

are some of the main cultural differences between the U.S. and France? Answer: Hofstedes 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 dont 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 Trompenaarss research helped explain cultural

differences between the U.S. and France? Answer: Trompenaars cultural dimensions are:

= Universalism Vs Particularism = Individualism Vs Communitarianism = Neutral Vs Emotional

= 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 didnt think about the others 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 mediumsized French firms feeling like foreigners in their own land. 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.

c.

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

have learned about how to deal with diversity? Describe each.

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-countys income, economy and financial condition.

Depth Integrative case 2 :

Wal-Marts Japan strategy
Page No :226 to 232 Questions 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-Marts 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-Marts entry strategy in Japan, because there was lot of opportunity o be successful in food manufacturing industry. Inherent risks: 5. Cultural diversity: Japans 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. Consumers different thinking about price and quality. I dont 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.

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 doesnt 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.
9.

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.

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 strategys 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. 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? 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 icommunities 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
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 Asias 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.

Part Four Brief Integrative case 1: A copy shop goes global

Page No:509 to 511 Questions 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 Panitzs 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 Generals 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?

Brief Integrative case 2: The Road to Hell

Page No:512 to 514 Questions for review :

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

Ans. John Bakers 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 5

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

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

Ans. Human resource management in the international environment:

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 BPs Global Shift

Depth integrated case 1:

Lord John Browne and BP s Global Shift: Page No :512 to 520 Questions for review :

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

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 BPs 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.

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

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

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

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

Ans.

The pros and cons of BPs strategy in Russia, both short-term and long-term:
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. BPs had the opportunity to export to Asia and Europe. c. The deal increased BPs oil reserves by more than 50 percent. d. Now TNK-BP is Russias third biggest oil and Gas Company.
a.

e.

In 2003, TNK-BP added $105 million to BPs net income.

The Challenges BP faced in its effort to become a major player in Russia:

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.
a.

1.

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

Chiquitas Global Turnaround
Page No :521 to 527 Questions for review :

How would you characterize Chiquitas historic approach to global management?

Question 1:

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 Chiquitas Nuevo San Juan Homeownership project in Honduras.

Describe Chiquitas 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?
Question 2 :

Ans. Chiquitas 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 Encourage teamwork Recognize employee for success

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

Ans. Chiquitas main stakeholders in the United States and around the world are consumers.

Consumers affected by Chiquitas CR program:

Chiquita treat people fairly and respectfully People see fruit as branded CR created expectation about Chiquita How would you characterize Chiquitas past and present leadership? How does leadership affect a companys overall reputation?
Question 4 :

Ans. Chiquitas 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 A demoralized workforce Hostile relationship with labor unions and employees

Chiquitas present leadership:

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

Integrity

b. c. d.

Respect Opportunity Responsibility

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

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

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

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.