By:

Afzal Habib
Chanya Sodsiri
Kalayanajati
Napasakorn Vibulsrisajja 484 32294 26
Ongon Riabpradit
Vimvadee
 Problems
Business structure aspect
• Korean Structure is hierarchical which impacts the understanding of relationship between
consultants and client of both the Americans and the Koreans—in reaching the final goal, each
adopts different approaches making it hard for consensus during the way.

Management aspect
• Power of authority is undefined. Jack and Ellen, the co-manager, here are not clarified of
which role each person should play—overlapping of power. As a result subordinates find it
confusing of whose order should they follow leading to the delays of implementation plan

Cultural aspect
• Though a co-manager, Ellen’s views are still ignored by Jack and consequently the
subordinates. This is because by culture, women in Korea are expected to be working mostly
as inferior. Reason behinds this might be also that at first the Korean company asked Andrew
to take the position with a strong note that it would be impossible to send a women yet Andrew
could not take the offer so Ellen had to take the place instead
Communication aspect
• While working, Korean consultants tend not to ask questions or express their true thoughts
toward the idea because in general, Koreans regard saying ‘no’ as poor etiquette and something
to be avoided at all costs thus it is difficult for Ellen to get at the truth of the Korean
consultants’ intentions.

Human resources aspect

• Jack has no experiences in neither SI project nor consulting project—instructs wrong
instructions regarding the projects
• Also, both consulting teams lack the training program preparing for expatriates or
employees at the MNC— Ellen is being sent to work oversea after she has been with the
company for only three months and Korean team has never been trained by their firm to work
with foreigners
• Senior management is rather ethnocentric. Each actor thinks their national norms of doing
business is more superior than another hence both are reluctant to compromise. Andrew thinks
the problems arise from the inexperienced Korean consultants whereas Mr. Song, the director,
argues that Ellen is the one with issues

First thing to be reconsidered is the undefined power of

authority then followed by other problems
 Korean Culture
Korean Culture in General
Food
Music and Dance

National classical music performing Traditional full-course meal Kimchi and Bulgogi

Sujecheon House Traditional Sport

Clothing
Hanbok, traditional clothing

Hanok-- Traditional Korean  houses Taekwondo

Ondol: In modern usage it refers to any type of
under floor heating of a room that follows the
traditional way of eating and sleeping on the
floor.
 Korean culture
Geert Hofstede™ Cultural Dimensions
" Culture is more often a source of conflict than of synergy. Cultural
differences are a nuisance at best and often a disaster."     Prof. Geert Hofste
de, Emeritus Professor, Maastricht University.

South Korea 60 18 39 85 75
 Hofstede’s Dimensions
• Power Distance Index (PDI)
• Korea = 60 – high level of inequality
– hierarchical bureaucracy
• Individualism (IDV)
• Korea = 18 -- Collective society— group-oriented
• Masculinity (MAS)
• Korea = 39 – Femininity: a preference for relationships, modesty and caring
• Uncertainty Avoidance Index (UAI)
• Korea = 85 – the society is low level of tolerance for uncertainty and would
like to control everything in order to eliminate or avoid the unexpected
• Long-term orientation (LTO)
• Korea = 75 – Confucian dynamism

An acceptance of the legitimacy of hierarchy and valuing of perseverance a

nd thrift
 Doing Business with Korean people
--The quality of the relationships developed are the real key t
o business success
• Gift Giving – at first business meeting
• part of Korean business life
• Alcohol: malt whisky and brandy – an appreciated gift
• In the meeting
• a compatibility of levels within meetings
• punctuality and maintain solid
• Maintain good body posture during meeting
• Business Communication
• saying 'no' as poor etiquette – “We’ll try” or “That’ll be difficult”
is more preferable
• Maintain patience and politeness is necessary
• Exchanging Business card
• Present your business card with both hands
• Express some comment on the title or position
• Contract is the starting point
• Flexibility -- adjustment can be made
• Greeting
• wait to be introduced as third party
• shake hands with foreign colleagues after a bow and support the right
forearm with the left hand
• Dress Code – Appearance is very important
• Look smart all the time – both in formal and informal gatherings
• Dark suit, shirt and tie -- men
• Business suit or dress –women
• Booking appointments ahead of time
• Between 10 a.m. – 12 p.m. or 2 p.m. – 4 p.m.
• Send proposals for your contact to preview
• Saving face – very important
• Control your emotion
• Causing embarrassment or loss of composure can harm business
negotiation
 Women in Business
rare for women to succeed in business in Korea and most women work as secretari
es or in poorly paid assembly line positions
According to a survey by an online job search site in Korea (n=573),
57.5% experienced discrimination based on gender while looking for a job
> 80% were discriminated against a promotion
50% impossible to get promoted
There was a survey data collected from 26.9% of women => House Wife
women (n=107) between 30 – 59 years
old which was summarized as follows. 73.1% of women => Labor Force

11 AGE Accounting Production

and other of goods
30-39
clerical 11%
40-49 Sales
work
50-59 16% 44%

38 58
Teaching
related
service s
29%

Source: www.sdi.re.kr/nfile/zcom_eng_bbs/a2007-R-35.pdf
 Korean Labor Statistics
Total work time-- Females over Industrial workers > Female 19%[24th of 79]
males relative to other countries
Industrial workers > Male 34%[30th of 79]
Rank Countries  Amount    
#1 Kenya 135%
Service workers > Female 68%[57th of 79]
#2 Italy 128%
#3 South Africa 122% Service workers > Male 56%[31st of 79]
#4 Philippines 121%
#5 Guatemala 117%
Agricultural workers > Female 12%[26th of 77]
Agricultural workers > Male 10%[45th of 78]

Female professionals 34%[66th of 68]

Female decision makers 5%[66th of 67]

Literacy > Female 97%[44th of 157]

Literacy > Male 99.3%[17th of 156]

Source: http://www/nationmaster.com/country/ks-korea-south/lab-labor
 Consulting Team in
an Organization Chart
• North America • Korea
Client’s Consulting Client’s
Management Team Team Management Team

Consulting
Team

Subordinate Subordinate Subordinate Subordinate

 Differences in Consulting
in North America and in Korea

• Consultant-Client Relationship

• Information Gathering

• Consultants’ Roles

• Scope of Work

• Importance of Meeting the Deadline

WHAT WOULD ANDREW DO?
Discussion
We need our recommended action to be mutually
exclusive and serve the following purposes:
a) Needs to establish a more clear reporting structure
(Short Run)
b) Should realign the project so as to get it back on
schedule or at least close (Short Run)
c) Should not compromise the relationship with Joint
Venture Party (Long Run)
 Recommendations

Compromising between two culture for clear defined power

of Ellen and Jack

Finishing work for client is set as priority

Ellen and Jack consult and discuss with each other before
talking with subordinates
Ellen transfer know-how to Jack and he is responsible on
delegating works and coaching subordinates
 Implementation
Meeting is held
for Andrew, Ellen and Jack
Mr.Song, Jack coordinate to
and Ellen to coach the
talk about the consultants
issue

180 degree
Inform everyone evaluation of the
in the JV about Joint venture
performance in
defined position of
collaboration of
Ellen and Jack
Ellen and Jack
 For Future projects

Things could have started off much better.

http://www.1000ventures.com/business_guide/jv_main.html
 For successful Joint-Venture
• Ice-breaking activities
• Trust is an expectation that arises within a community of
regular, honest, and cooperative behavior, based on commonly
shared norms, on the part of the other members of that
community.
• Keep win-win agreement
• Leadership: Fair and credible
• Weekly session with psychologist
• Repot back to the Head together
• Clear duties and obligations
• Install suggestion boxes
• Termination terms & conditions
 CULTURE

“The key to community is the acceptance, in

fact the celebration of our individual and cultural
differences. It is also the key to world peace.”
– M. Scott Peck
 Conclusion

Communication,
Trust,
and

Understanding
 References
• http://sbinformation.about.com/cs/bestpractices/a/jointventure.htm
• http://madaan.com/jvsuccess.html