By:Kevin FerroneBob CardarelliLinda Carter

Globalization

Expansion of Balk Inc.

•Foreign Competition•United States needs to respond

•Expansion into foreign markets

•Larger market share

•Increased Technology•Advances in Communication

Globalization

Sound Business Strategy

1Create

Urgency

2Form a

Powerful Coalition

3Create a Vision for Change

4Communicate the Vision

Kotter’s – 8 Step Change Model

Expansion

5Remove

Obstacles

6Create short-

term wins

7Build on

the Change

8Incorporate

into Corporate

Culture

http://www.mindtools.com/pages/article/newPPM_82.htm

Dimension Lo High

Power distance (PDI) Equality & opportunity are stressed.

Caste system – inequality of power.

Individualism (IDV) Responsible for fellow members or extended family.

Individual rights are paramount.

Masculine (MAS) Females treated equal in all respects.

Males dominate the power structure.

Uncertainty avoidance (UAI)

Tolerates variety of opinions. Accepts change. Takes risk.

Laws & rules reduce the uncertainty.

Long-term orientation (LTO)

Change is more rapid since traditions do not impede.

Respect for tradition and long term rewards.

Cultural Values Hofstede Model for Comparison of Different Cultural Values

United States, China, Germany & Israel

Examination of 4 different cultures

Four Cultures

Expanding Leadership

Development

Balk Inc.

Prepares high potentials for leadership positions in a corporate setting

Immersive Learning approach Blended online and onsite program

The BALK Program

Balk Inc.

Mission Supply the business sector with “ready now” leaders

Vision Bridge the gap between education and employment Prepare learners stand out and excel

in the workplace. Values

“Recognized as the premier source of leadership development”

Mission, Vision, Values

Balk Inc.

Opportunities Revenue growth and business investments Capitalize on globalization trend

Threats Competition from local institutions Changes in political climate

Risks and Benefits of Global Expansion

Balk Inc.

Insert product photo here

BALK, CHINA

China

Challenges for a U.S. company in ChinaCulturalOperational

Leadership Intervention

Overview

China

Giving Opinions

Cultural Challenges

China

Party

China

The Boss

China

Handing Problems

China

Contracts Signed contract is start of the negotiation Trust is more important than signed agreements Difference in conflict management lead to expectation

discrepancies Team Management

Clarify Roles Offer multiple (less formal) avenues for feedback

Company culture and mission They will look different!

Culture – So What?

China

The Internet Blocked websites & slow access to servers outside China Asynchronous communication using the cloud is difficult

Marketing and Distribution Channels Zhongjie (middle man) Understand hierarchy B2C is difficult and slow unless you have big $$$

The Government Setting up can be long and unclear (prepare extra time and

$) “Rule by law” not “Rule of Law”

Operational Issues

China

1Create

Urgency

2Form a

Powerful Coalition

3Create a Vision for Change

4Communicate the Vision

Kotter’s – 8 Step Change Model

China

5Remove

Obstacles

6Create short-

term wins

7Build on

the Change

8Incorporate

into Corporate

Culture

http://www.mindtools.com/pages/article/newPPM_82.htm

BALK, GERMANY

Germany

Insert product photo here

Challenges for a U.S. company in Germany Cultural Considerations Labor Laws

Overview: Germany

Germany

Low Power Distance

Highly Individualistic

Masculine

Uncertainty Avoidant

Short-term Orientation

Culture Considerations

Germany

Hofstede 5D Model Score

Power Distance 25

Individualism 67

Masculinity/Femininity 66

Uncertainty avoidance

65

Long term orientation 31

Challenge to authority,

expertise

Direct, honest, communication

Detailed planning and direction

Cultural Considerations in Practice

Germany

No employment “at will” Regulated work week Time out of office Parental leave Mass layoffs require

government approval

Labor Laws

Germany

Performance issues are unresolved, tolerated Resources unavailable during “off hours” Resources out of office

for long durations

Labor Laws in Practice

Germany

BALK, ISRAEL

ISRAEL

Living in a culture of haste

Light train in Jerusalem

Very westernized

Israeli culture

Israel

The Knesset

Democratic Society

The Jewish state is 65 years old

Israeli culture

Israel

Jerusalem & Tel-AvivA combination of the old & the new

Israel

Workforce:

77% have secondary education

(2nd) in world

24% have academic degrees

(3rd) in world

12% have advanced degrees

Highest per capita of engineers

(135/10K)

Highly educated Society

IsraelEinstein at the Hebrew University

Family & Extended Family are celebrated

Israel

Low Power Distance

Individualistic

Masculine

Uncertainty Avoidance

Long-term Orientation

Culture

Israel

National Cultural Dimensions Score

Power Distance - PDI 13

Individualism - IDV 54

Masculinity - MAS 47

Uncertainty avoidance - UAI 81

Long term orientation - LTD -

Hofstede’s 5D Model Comparison

Conclusion

PDI IDV MAS UAI LTO0

20

40

60

80

100

120

140

USAChinaGermanyIsrael

1Create

Urgency

2Form a

Powerful Coalition

3Create a Vision for Change

4Communicate the Vision

Kotter’s – 8 Step Change Model

Conclusion

5Remove

Obstacles

6Create short-

term wins

7Build on

the Change

8Incorporate

into Corporate

Culture

http://www.mindtools.com/pages/article/newPPM_82.htm

Questions and Answers…

Q & A