Session 2:

Chapter 4: Difference in Culture

• Remember MBA is not MA + BA. As a Manager, you guys must think

outside the box or nine dots, work smarter & harder!
.. .

.. .

.. .
 Difference in Culture in our society
• How about moving 10 kg of water! How someone used Trucks during
flood!
• Be innovative and invent or improvise customized solution!
• Broaden your knowledge by reading & watching case study’s and
documentaries. Such as, ‘Disrupters’.
• Customer Advocacy to Customer Experience.
• “Always there is a better way of doing thing, just find it!” Thomas Edison.
• You need to know what’s going on around you, in our society. Otherwise,
You Are Guilty!
 Re-cap from session 1,
Chapter 1: Globalization; Introduction and Overview.

1. Globalization of Markets & Production; two Drivers of Globalization, Declining Trade and Investment Barriers
and The Role of Technological Change.
2. The Emergence of Global Institution. GATT, IMF, WTO & WORLD BANK.
3. Four general levels of International activity; Domestic, International, Multi-national & Global.
4. 3 Environmental Challenges of International Business Management! A. Economic (3), Economic System such a
Market Economy. Natural Resources: Availability of natural resources in different countries like; Oil, Iron,
educated manpower. Infrastructure: A country’s infrastructure consists of its Education, Power plants, Railroads,
shipping ports, communications etc. B. Political/Legal (4), Government Stability. Incentives for international
trade; Tax Holiday, duty-free entry of raw materials etc. Controls of International Trade, any embargo! Economic
Communities; NAFTA, EU etc. C. Cultural (2); Values, Symbols, Beliefs and Language. Individual Behaviors Across
Culture.
5. 4 main Modes for entering in a particular foreign country; Export/Import, Licensing, Strategic Alliance and
Direct Investment.
6. The Globalization Debate on Jobs, Income, Labor Policy, Environment, National Sovereignty and Worlds Poor.
7. Managing in the Global Marketplace. Discussion with examples.
 Text: International Business by Charles W Hill
(10th Edition), McGraw Hill, USA

• Session 1, May 11 & 13; Chapter 1: Introduction & Overview, Globalization

• Session 2, May 18 & 20; Chapter 4: Differences in Culture ( Walmart Case in different countries)
• Session 3, May 25 & 27; Chapter 6: International Trade Theory
• EID MUBARAK
• Session 4, June 8 & 10; Chapter 6: International Trade Theory
• MAKE-UP SESSION FOR WEEK 1, June 14; Chapter 7 Political Economy of International Trade plus Assignment Handover
• Session 5, June 15 & 17; Chapter 8: Foreign Direct Investment Quiz 1 (5 points).
• Session 6, June 22 & 24; Assignment Presentation, (10 points; 5 for Group Assignment & 5 for Individual Presentation).
• Session 7, June 29 & July 1; Mid-term (20 points).
• Session 8, July 6 & July 8; Chapter 10: The Foreign Exchange Market
• Session 9, July 13 & July 15; Chapter 11: International Monetary System
• Session 10, July 20 & July 22; Chapter 13: The Strategy of International Business & Quiz 2 (5 points).
• Session 11, July 27 & July 29; Chapter 15: Entry Strategy and Strategic Alliance
• Session 12, August 3 & 5; Assignment, (10 points; 5 for Group Assignment & 5 for Individual Presentation).
• EID MUBARAK
• Session 13, August 17 & 19; FINAL EXAM (40 points).
 Chapter 4: Difference in Culture
The Nature of Diversity and Multiculturalism:

a.Multiculturalism: The broad issues associated

with differences in values, beliefs, behaviors, customs,
and attitudes held by different cultures in a society.

b. Diversity: Exists in a group of organization, when its

members differ from one another along one, or more
important dimensions, such as age, gender, religion or
ethnicity.
 Diversity and Multiculturalism, and
Competitive Advantage:
• Organization with a diverse and multicultural
workforce are better able to understand different
market segments (example of Halal Portfolio), will
have more flexibility (example of ‘Roster-duty’
during long-holidays during religious holidays or
odd hours during prayer time during BUET
alumni), creativity and problem solving skills
(example of ‘hiccup’) .
Diversity and Multiculturalism, and
Conflict:
• Unfortunately , Diversity and Multiculturalism can also create conflict
for a variety of reasons (Example: BUET incident during BUET Alumni,
infamous and seriously offending ‘Prince Special’). Specially during
hiring ‘Hotel Sheraton advert’, firing or promoting of an individual.
• Another source of conflict stemming from Diversity or
Multiculturalism occurs through misunderstood, misinterpreted, or
inappropriate interactions among people of different groups. For
example joking about a particular group, religion, area or ethnic
background.
 Managing Diversity and
Multiculturalism in Organizations:
• Through individual strategies. The four basic attitudes that individuals
can apply are; Understanding, Empathy, Tolerance and Willingness to
Communicate.

Everyone must bring own book.

For Case study & class participation it’s a must.
Walmart in Germany (Chapter 4), India and Japan (Chapter 8).
 Why did Walmart Fail in Germany
• Opening Case in Chapter 4 is a perfect example of the 3 Environmental
Challenges; A. Economic (3), B. Political/Legal (4) and C. Cultural (2).
• Though no one can say precisely why the venture failed, there’s been no shortage of
explanations. One is that Germany was too “green” for a slash-and-burn outfit like
Walmart, with its plastic bags and plastic junk Another is that Walmart couldn’t hack
the pro-labor union culture of Germany. Another is that Germany is anti-American
when it comes to name-brand retailers (even though Dunkin’ Donuts and Starbucks
are popular there).
• Another is that German consumers prefer small neighborhood stores rather than
impersonal chain (even though Aldi, a discount supermarket chain, is successful).
• While there is probably some validity to all of these explanations, three additional
cross-cultural idiosyncrasies have been identified as determining factors.
One issue was the chanting. Walmart employees are required to start
their shifts by engaging in group chants and stretching exercises, a
practice intended to build morale and instill loyalty. Fiendish as it
sounds, Walmart employees are required to stand in formation and
chant, “WALMART! WALMART! WALMART!” while performing
synchronized group calisthenics.

Unfortunately, this form of corporate boosterism didn’t go over

particularly well with the Germans. Maybe they found it embarrassing
or silly; maybe they found it too regimented. Or maybe they found this
oddly aggressive, mindless and exuberant exercise in group-think too
reminiscent of other rallies....like one that occurred in Nuremberg
several decades earlier.
Another issue was the smiling. Walmart requires its checkout people to flash smiles at customers after
bagging their purchases. Plastic bags, plastic junk, plastic smiles. But because the German people don’t
usually smile at total strangers, the spectacle of Walmart employees grinning like jackasses not only
didn’t impress consumers, it unnerved them.

The third was the “ethics problem.” Back in 1997, Walmart not only required employees to spy on
fellow workers (and report any misconduct), but prohibited sexual intimacy among its employees.
Apparently, while the folks running the Bentonville, Arkansas-based company had no problem with
screwing the environment, they couldn’t abide employees doing it to each other (alas, a German court
struck down Walmart’s “ethics code” in 2005).

Whatever the specific reasons, the German market is now verboten to Walmart. Clearly, the failed
experiment was a severe blow to the company’s pocketbook and pride. And while no one can predict
where a company as aggressive and acquisitive as Walmart will turn up next, presumably, they will pick
up the slack by opening a store in Libya.
Why Did Walmart Leave Germany?
By David Macaray
Walmart can boast that it has more than 8,500 stores in 15 countries, under 55 different names,
that it’s the largest private employer in the United States, the largest in Mexico (as Walmex), and
the third largest in Canada. In fact, it’s the biggest private employer in the whole world. It has 108
stores in China alone, and operates another 100 Chinese outlets under the name of Trust-Mart.

Still, for all of Walmart’s conspicuous success, the retailing giant, after having set up shop in
Germany in 1997, was forced to withdraw from the country in 2006, abandoning Germany’s
lucrative $370 billion retail market. Even though this happened five years ago, the German
debacle still reverberates. It’s still being discussed. After all, as anyone who’s been paying
attention can tell you, Walmart rarely fails in these endeavors.

Because America and Europe share similar cultural and political antecedents, one might
naturally assume that an American enterprise would have a better chance of succeeding in
Europe than in Asia. But the German smack down proved that’s not always the case. Indeed,
while the nominal Communist regime of the People’s Republic of China embraced Walmart’s
corporate philosophy, the Germans rejected it.
Foreign Direct Investment
• Walmart in India
• Opening Case in Chapter 8
• Walmart in Japan
• Closing Case in Chapter 8
• Both cases are classic examples of 2 of the 3 Environmental
Challenges of International Business Management! A. Economic (3),
B. Political/Legal (4) and C. Cultural (2).