C E N T R U M C A T O L I C A

G R A D U A T E B U S I N E S S S C H O O L

_ _ _ _ C A S O A P L I C A T I V O _

D - 2 0 2 0 0 1 - E 1 - C AP
REV: MARZO 11, 2020

MIGUEL ANGEL PATIÑO ANTONIOLI

The Company: Intralot

INTRALOT is a global company which has the leadership as a supplier of integrated gaming and
transaction processing systems, innovative game content, sports betting management and interactive
gaming services to state-licensed gaming organizations worldwide.

Fig 1: Intralot Global logo

The competitive advantage of Intralot is based on its big portfolio of products, the know- how in the
business (Lottery, Sports Betting, Racing and video Lottery operations) and its technology (Edge). In
this way, INTRALOT offers customized and fully integrated solutions that are highly efficient and
absolutely secure.

The company was established in 1992 and has been publicly listed on the Athens Stock Exchange
since 1999. It has become an international protagonist in the lottery sector, with more than 5,500
employees and a presence in 56 countries on all 5 continents.

Intralot is the leader globally in the Lottery market and despite the competitors, it has the same
objectives: customer’s satisfaction, security and quality. Is a member of all major international gaming
associations, including the World Lottery Association (WLA), European Lotteries & Toto Association
(EL), the North American Association of State & Provincial Lotteries (NASPL) and CIBELAE (the

Professor Miguel Angel Patiño Antonioli prepared this case. This case is published by CENTRUM Catolica Graduate Business School, Pontificia
Universidad Católica del Perú. This case was developed from published sources. CENTRUM cases are developed as the basis for class discussion
and solely for teaching purposes. Cases are not intended to serve as illustrations of effective or ineffective management or sources of primary data.

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D-202001-E1-CAP The Company: Intralot

Hispanic association that covers South America and the Iberian peninsula), the Asia Pacific Lottery
Association (APLA), as well as the Gaming Standards Association (GSA) and Association of Gaming
Equipment Manufacturers (AGEM) in the USA, playing an active role in the global gaming community
and contributing to the future development of the sector.

Fig. 2: Intralot Values

Among other awards and distinctions, it is notable that INTRALOT was rewarded with the BEE
GOLD/PROVEN SUPPORT AWARD by EBEN GR for its ethics and its ethical Corporate Governance
and Social Responsibility, was voted among the 20 Best Places to Work in Greece for 2007 and its
General Technical Division received the “Recognised for Excellence in Europe - 5 Stars” distinction by
the European Foundation for Quality Management (EFQM).

These awards ratify the Company’s commitment to act with special focus on the development of
the concept of Corporate Social Responsibility and the development of an ideal working environment.

Fig. 3: Intralot Awards

In Peru, Intralot Peru SAC manages Lottery and Sports Betting products, as La Tinka, Ganagol, Te
Apuesto, Gana Diario, Kabala, Super 3 El Reventón, Rapitinkas, Rapigana, Kinelo, Giro Mágico, Click
& Gana and Virtual Sports. It has delivered more than S /. 800'000, 000 in prizes and has awarded
millions of Peruvians with which it has established itself as the leading lottery company in Peru.

Fig. 4: Intralot Perú Logo

Besides the traditional and virtual channel, in 2012 launched cellular channel, but mostly the
revenue are highly concentrated in the traditional channel.

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The Company: Intralot D-202001-E1-CAP

Fig. 5: Intralot Perú, best place to work 2012

Diagnosis: The Baseline

If we analyse the relationship, ways of communications and work between the HQ in Greece and
the Subsidiary, Intralot de Perú, we need to understand the gap of the two cultures and the way of see
the world.

If we follow the Hofstede definition (1991), which mentions that culture is the collective
programming of the human mind, we can understand that both countries had and will have big
differences since born. According to Heling (2005), “Culture is the shared ‘identity’ of a group of people,
based on the way they give meaning to their lives through behaviour”.

In the case of the assumptions the HQ, Greek people, are very mistrustful with Peruvians. This is
sustained for the fact that the HQ always consider as the CEO of Intralot Perú a Greek man and this
guy instead of adapt to the Peruvian culture, has been trying for years to modified it, through the
individual feedback to each manager.

Regarding the Onion model of culture (Spencer & Oatey, 2000) showed in the figure 5, we
understand how the basic values and assumptions play in order to increase the barriers between the
cultures. Thus because the CEO of Intralot Peru said always: “All Peruvians are too different of the Greeks
and in general to the European people. We are smarter, we make better plans in long term and you can’t focus on
one thing and can’t connect the dots”.

This CEO’s prejudice in located inside and is very difficult to eradicate, as shows the onion model.
So, the way of action must be focus on the adaptation of the behaviour and step by step try to peel the
onion.

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D-202001-E1-CAP The Company: Intralot

Fig 6: Onion model of culture

We can define the company as an Anglo-Saxon company because is goal oriented and money is the
final objective. It is because Greece decided all the plans and Perú only execute.

Talking about the process of decision making, the speed and the risk involved on each action in the
subsidiary, we can locate it in the quadrant of Retailing, because the decisions are taking too fast and
there isn’t much risk, since Intralot de Perú has the monopoly in the traditional channel in Perú. But if
we do the same analysis for the HQ, we can see that as global, Intralot operate with the subsidiary as
an Accounting consultant company.

Fig 7: Differences in industry culture (HQ Vs Subsidiary)

It is very logical because the HQ define the main parameters, send the CEO with the
strategy, and let Peru (with the CEO, not Peru alone) to make the decisions, with no pressure,
because in Peru there isn’t competitors and the HQ only have communications in order to orient
Peruvians in different aspects of the business (the Greeks are the specialist).

Regarding the dimensions of national cultures of Hofstede, we can appreciate in the figure 7 that
Greece presents a different landscape for each dimension, for instance:

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The Company: Intralot D-202001-E1-CAP

1. Power Distance

 Peru has 6% more than Greece, due to the typical Peruvian bureaucracy.
 The CEO and managers in Intralot Peru consider subordinates to be different people like
them.
 Superiors are inaccessible in Peru
 In Peru there isn’t cooperation among the powerless: low faith in people.

2. Uncertainty Avoidance

 Greece have 28% more than Peru

 Greece avoids uncertain and ambiguous situations establishing formal rules, not
tolerating deviant ideas from the plans and believing in axioms that make them reduce
the risk of any poor “innovation” ͘ For this reason, Greeks need written rules: if people
don’t follow them, they are bad workers and should be fired out from the company.
 The Greeks prefer work hard instead work in a relax way.
 The Time: for the Greeks Time is money and the Peruvians mustn’t waste it͘

3. Individualism - Collectivism

 Greece has 118% more Individualism that Peru. That is explained by the fact of the
Peruvian culture is very intense in the sense of the family and the community (actually,
most of the boys with 18 years old still rest in their parents’ house) ͘
 The Greeks take care of themselves and their families instead to have solidarism with
the “others” Peruvians at the other side of the ocean.
 Greeks prefer Particularism instead universalism.

4. Masculinity - Femininity

 Greece has 35% more Masculinity than Peru

 The CEO of Intralot Perú, as Greek, always shows his unique interest: money and
nothing else. He lives alone in Perú (left his family in Greece because he prefer work)
and for this, he lives in order to work
 This CEO wants to grow big, fast and in aggressive way.

Fig 8: Benchmark Greece Vs Perú - Hofstede’s Dimensions of National Cultures

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D-202001-E1-CAP The Company: Intralot

With all the analysis, we can conclude that Greeks has more Long-term orientation, hasn’t
confidence and faith in Peruvian people and are in general more individuals, materialistic and
workaholic people. This interpretation in align with the idea of putting a Greek CEO to manage the
Peruvian operation: a Peruvian can’t reach that position.

Greeks also has internal locus of control, because they believes that they can control their life,
organization and all the future with their decisions, despite the fact that they are focus on the goals in
the market. They are not as Peruvians, with more external locus of control, believing that there are
external factors that create the future (they think).

With reference to the Global Corporate evolution (Adler, 2008) we can consider that Intralot is in
the Global phase, because has presence in the 5 continents and in 56 countries.

According to Harrison, corporate culture is a distinctive constellation of beliefs, values, work styles,
and relationships that distinguish one organization from another (Harrison, 1993).

In other words, organizational culture includes those qualities of the organization that give it a
particular climate or feel. As a result the distinct qualities of an organization may manifest through four
dimensions, namely power, role, achievement and support (Harrison, 1993).

There are different descriptive models that attempt to diagnose organizational culture in the field
of organizational development. Harrison (1993) presents a theoretical model for the purpose of
diagnosing organizational culture which is adopted in this study.

This descriptive model creates an awareness of the culture gap between the existing and preferred
cultures in an organization (Harrison, 1993). Furthermore, this model maintains that organizational
culture can be diagnosed in four cultural dimensions, namely power-oriented culture; role- oriented
culture; achievement-oriented culture; and support-oriented culture (Harrison, 1993). The result of the
analysis with this tool is shown in the figure 8:

Fig 9: Matrix of corporate culture for Intralot

Henry Mintzberg introduced five types of organizational structure and how they influence the
functioning of organizations. He suggests that organizations can be differentiated along three basic
dimensions:

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The Company: Intralot D-202001-E1-CAP

1. Key part of the organization: plays the major role in determining its success or failure.

2. Prime coordinating mechanism: major method for coordination its activities.

3. Type of decentralization: For involves subordinates in the decision-making process.

According to the Mintzberg model of organization types, we can understand why HQ is an

organization innovative in the direction of Learning. It is explained for the big interest in the
innovation and R&D as a global company. In the other hands, Intralot de Perú maintains an
Entrepreneurial structure, with focus on the Direction, inspired by the CEO.

Fig 10: Organization types model (Mintzberg) for Intralot and Intralot Perú

Regarding the Mintzberg model of organization configuration, we can see in the figure 10 that
Intralot is a full bureaucracy with work process standardized and focus techno structure, in order to
improve the process and innovate. Is like France.

Intralot Perú, on the other hand, is like China, with a simple structure, direct supervision of the CEO
and strategic apex which decides all the strategy and plans. It is a structure focus on control and in the
supervision.

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D-202001-E1-CAP The Company: Intralot

Fig 11: Organization configuration model (Mintzberg) for Intralot and Intralot Peru

Organizational Culture includes what is valued, the dominant leadership style, the language and
symbols, the procedures and routines, and the definitions of success that characterizes an organization.
Cameron and Quinn have developed an organizational culture framework built upon a theoretical
model called the "Competing Values Framework." This framework refers to whether an organization
has a predominant internal or external focus and whether it strives for flexibility and individuality or
stability and control. The framework is also based on six organizational culture dimensions and four
dominant culture types (i.e., clan, adhocracy, market, and hierarchy).

With this tool, we can locate HQ as an Adhocracy culture for the external focus and the quite
flexibility in comparison with Peru (totally innovation) and Peru as a market culture, because all the
work is oriented in the goals that Greece establish.

Fig 12: Competing Values Framework (Quinn) for Intralot and Intralot Perú

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The Company: Intralot D-202001-E1-CAP

Trust always affects two outcomes: speed and cost. When trust goes down, speed goes down and
cost goes up. There are five waves of Trust and four zones:

1. Self-Trust: Credibility.

2. Relationship Trust: Consistent behavior.

3. Organizational Trust: Leaders create structures, systems and symbols of trust.

4. Market Trust: Reputation.

5. Societal Trust: Contribution.

1. Zone 1: Blind Trust zone of gullibility: The gullible that will be cheated.

2. Zone 2: Smart Trust zone of judgment. Good business judgment and good people

judgment combine to enhance instinct and intuition.

3. Zone 3: No Trust zone of indecision. Those who don’t even trust themselves.

4. Zone 4: Distrust zone of suspicion. Those who rarely extend trust beyond themselves.

Fig 13: Smart Trust Matrix for both companies

Intralot Greece is located in the quadrant of judgement since they have high propensity in their
people and make high analysis for each situation. Instead of that in Peru the reality is los propensity by
the Greek CEO and high analysis in order to make fewer errors.

Consider our customers that we are authentic? The authenticity matrix is used to identify the
position of an organization regarding its identity and image.

For the case of Peru, the customers understand the identity of the company as a part of a
multinational, but for the intern problems and customer care services, added by the distrust of the

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D-202001-E1-CAP The Company: Intralot

general Peruvian in lotteries and sports betting, this company has a failing presence but the HQ, a full
presence for the image and identity recognized around the world.

Fig 14: Authenticity Matrix for both companies

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The Company: Intralot D-202001-E1-CAP

Proposal

1. What are the Opportunities to improve?

2. If you were the new CEO of Intralot Perú, what action do you are planning to take in order to
improve the international relations and the performance as an international team in the:

 Short term
 Mid term
 Long term

3. Which actions do you recommend for the CEO of Intralot (Greece)?

4. What are your main conclusions and the main highlights from this case?

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D-202001-E1-CAP The Company: Intralot

References
Berrio, A. (2003). An Organizational Culture Assessment Using the Competing Values Framework:
A Profile of Ohio State University Extension. Journal of Extension, (41). Recovered from
https://www.joe.org/joe/2003april/a3.php

Covey, S., & Merrill, R. (2006). The Speed of Trust. Soundview Executive Book Summaries, (28).
Recovered from https://www.cu.edu/sites/default/files/ExecTrust.pdf.

Lonner, Walter J. y Berry, John W. y Hofstede, Geert H (1980). Culture's Consequences: International
Differences in Work-Related Values. Universidad de Illinois en Urbana-Champaign's Academy for
Entrepreneurial Leadership Research Research Reference in Entrepreneurship. Recovered from SSRN:
https://ssrn.com/abstract=1496209

Harrison, R. 1993. Diagnosing Organizational Culture: Trainer’s Manual. Amsterdam: Pfeiffer &
Company.

Beshears, F. (2012). Innovation Memes. Recovered from

http://innovationmemes.blogspot.com.br/2012/11/mintzbergs-taxonomy-of-organizational_24.html

Intralot (2020). Recovered from www.intralot.com

Murphy, A. (2006), "When Cultures Collide: Leading Across Cultures, 3rd ed.", Leadership &
Organization Development Journal, Vol. 27 No. 8, pp. 710-720. Recovered from https://doi.org/
10.1108/01437730610709336

Lunenburg, F. C. (2012). Organizational Structure: Mintzberg’s Framework. International journal of

scholarly, academic, intellectual diversity, Vol 14 No 1. Recovered from
http://www.nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,%20Fred%20C.
%20Organizational%20Structure%20%20Mintzberg%20Framework%20IJSAID%20V14%20N
1%202012.pdf

Organizational Culture Assessment Instrument (OCAI) explained (2010). Recovered from

http://ocai.wordpress.com/2010/05/21/organizational-culture-assessment-instrument-ocai-explained/

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The Company: Intralot D-202001-E1-CAP

Abstract

The present paper is a proposal for the HR department of Intralot in order to improve the
relationship and reduce the cross-cultural issues between the headquarters and Intralot Peru.

Our diagnosis pretend to show a big picture of the cultural organization in Intralot and using the
different tools of cultural diversity, explain the main solutions in order to achieve a better situation
between countries.

We have analysed the two companies and their relationship in a global panorama, considering that
always a change is possible, while we understand that a company is not an object, but a team of people
and taking into account that those people and their behaviour are directly correlate with the culture of
each country, traditions, beliefs and way of thinking, in some cases paradigms and in other, barriers
that can be changed if we understand how we can create the adequate communication channel and
how we can create a good relation align with those fixed beliefs.

Nota. Este caso fue elaborado por el Ing. MBA Miguel Angel Patiño Antonioli para fines de estudio
de diversidad cultural como ejemplo entre Grecia y Perú (2014)

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