International Business

(The Cultural Environments Facing Business)

Case Study: Charles Martin In

Uganda: What to Do When a
Manager Goes Native

Presented By:
Vijaysinh Dodia(A-
11)
Jagruti Gamar(A-12)
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Vishrant Gandhi(A-
Introduction:
Uganda City
• A country with 32 million population.
• English is the main language but many people speaks
mostly different languages in accordance with the
tribes they belong.
• 2/3rd are christians.
• The communication language is the major barrier for
any foreign nation to do business in Uganda.
• Business works moves very slow.
• Incomes are extremely low & having exorbinant
payment system.
• Nepotism & corruption are the major norms.

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Introduction : (Cont)

Hydro Generation:
• HG is a US based company specialist in Power
plants(dams).
• Its values strongly based on US culture.
• It has made dams in 16 countries and owns half of
them.
• In Africa the Uganda is there first Project.
• HG wants to build as many local allies as possible to
prevent adverse publicity that could lead
demonstrations and work stoppages.
• Employees have high degree of empowerment.
• No code of conduct for expatriates life style.

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Introduction : (Cont)

Charles Martin:
• A 29 year old appointed as Project Manager for
Uganda by HG.
• Specialist in African culture and has a professional
experience in Kenya,Ethopia & Tanzania.
• He devoted of the philosophy of integrating the
African society, not drawing attention to oneself but
learning and respecting its culture.
• He combines the home country corpo rate perspective
& deep knowledge of Uganda economic, political &
cultural perspective.
• He was working with Ugandan govermentat authorities
and villagers to gain support and necessary permission
for dams construction.
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Introduction : (Cont)

Charles Martin’s Assignment:

• To gain local support for the project by working with
both Ugandan authorities in the capital of Kampala &
villagers in the vicinity of the construction site.
• To set up an office and hire office personnel to take
charge of local purchasing(include lower level hiring),
and clearing incoming goods through customs,
securing immigration permission for foreigners
attached to the project, overseeing the logistic of
getting materials going from the airport in Kampala to
the dam site & keeping inventory and accounting
records.
• To help foreign personnel(mainly engineers)get settled
& feel comfortable living & woking in Uganda.

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Introduction : (Cont)

Charles Martin’s Practices:

• He lived among middle-class Ugandans & not in up-
scale neighbourhoods where the most international
managers live.
• He didn’t integrate himself within the expatriates
community.
• He pays  extra money to local people to get things
moving faster.
• He hired staff closely related to Govt officials &
participated in Tribal rituals to get support from
villagers affected by the dam construction, although
being employed in a country embedded in Christian
Values.

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Introduction : (Cont)

Problems with Charles Martin:

Some of Martin’s pracrices were concerning James Green,
VP of HG such as:
• Independent Life Style & Participation in tribal rituals

• Way of achieving results

• Unethical practices

• Payments which might be illegal under US Laws

• Martins distance from the expatriate community.

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Q&A

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 Q:1: Describe Ugandan
cultural attributes that
might affect operation for
foreign company operating
there?

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 ANS 1:
• Different types of communication language
• Higher and lower class discrimination
• Nepotism is a norm for employment staffs
• Restructuring of rules and international law
• People are involve with corruption
• Lack of the legal opportunity
• People of Uganda's are too much devout to their religion
and beliefs and culture

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Q:2: How would you describe the
respective attitudes of Martin &
Green:ethnocentric, polycentric,
or geocentric? What factors do
you suspect of having influenced
their respective attitudes?

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 ANS 2:

• HGs corporate philosophy embraces the idea

that although secular, HG’s business activities
should embody strong Chritian Values.

• Subordinates should be given full

responsibility for making & implementing
decisions, but they should be also held
accountable for there results.
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 Ans 2:cont:

• Martin exhibit Polycentric Attitude as:

– Lived in middle class Ugandan neighbourhood
– Pays extra for services
– Hires through recommendation by relatives
– Pays fees & participates in tribal ceremonies
• Green exhibit Geocentric attitude.
• Martin was more concerned with his assignment in
Uganda while Green was more concerned with
corporate level issues.
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• Q:3 Who was right, Green or
Martin, about Martins more
controversial actions in facilitating
the project? How might things have
turned out if Martin had not been a
member of the project team?
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 ANS 3:

• Martin was right about the controversail actions

taken in Uganda
– HG saw the wisdom of having someone with both home
country corporate perspective & a knowledge of
Ugandas economic, political & cultural complexities.
– Still young for business he was well suited for the
Uganda project.
– His education and interst makes him best for the job.
– His earlier experience include working with start up of
small business & Uganda project was first in Africa.
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 ANS 3:cont:

– He quickly learned that paying tips in advance to the

responsible person could speed up the movement of HG
project.
– To handle import clearance he hired the neice of high
ranking custom officer.
– He knows that to operate a business as a foreign entity the
company must give respect to the culture, norms & beliefs.
• The Result if Martin was not hired:
– HG’s business operation would move slow.

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 ANS 3:cont:

– One may wait months to get a phone installed, supplies delivered

on operating licenses issued without paying tips.
– Without exorbitant payments and family connections hiring
people or staffs will be difficult because Nepotism is a norm in
Uganda.
– Without hiring a specialist in African religions and participation
in the ceremony by Martin. HG would not continue it’s
operation and displace the villagers where the dam will be built.
– Every task would not be computed on time within the total
budget.

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• Q:4 In the next phase of the project-
constructing the dam itself- should
HG employ someone whose main
function is that of liaison between its
corporate culture and the culture of
its host country? If so, is Martin the
right person for the job?
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 ANS 4:

• Yes, HG should Employ some one whose main

function is to be a liasion between HG's corporate
culture and the culture of host country.
• For Uganda Martin is the right person for the job.
Given the importance and size of the project, as well
as the many pitfalls that will surely be encountered
along the way, it seems only logical to employ
someone who is extremely well versed in the culture
of host country to serve as liasion with Head Quarter.

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 ANS 4:

• Yes, HG should Employ some one whose main

function is to be a liasion between HG's corporate
culture and the culture of host country.
• For Uganda Martin is the right person for the job.
Given the importance and size of the project, as well
as the many pitfalls that will surely be encountered
along the way, it seems only logical to employ
someone who is extremely well versed in the culture
of host country to serve as liasion with Head Quarter.

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