case analysis cross cultre
TRANSCRIPT
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Cross-Cultural Management1
Case Study
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Application Case in Chapter 3
Case 1:
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Zane's Cycles, is an independent bicycle shop run by its thirty-
something founder, Chris Zane sells the most bikes in the
New Haven, Connecticut, area. To many people, Chris Zane
is the epitome of today's manager. Zane had a lot of faith in
his ability to be successful. He learned all he could in college
about running a business--particularly focusing on satisfying
customers and implementing new and creative techniques to
achieve his goals.
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When those two competitors went out of business, he negotiateda deal with the phone company. He agreed to pay the
remainder of the two companies' Yellow Page advertising.
Callers to either of those numbers heard not only, "The
number you are calling is no longer in service," but also, "If
you are in need of a bicycle dealer, Zane's Cycles will be
happy to serve you." By pressing zero, the caller is
automatically transferred to Chris!
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Chris recognized that he had to give the appearance of being a
larger business--especially if he wanted to expand nationwide
and possibly abroad. He contracted with a marketing co-op
firm to develop a thirty-two-page mail-order catalog.Although his creativity had boosted sales, Zane recognized
that most of his business came from customers who visited
the shop. He hired sales representatives and gave them the
freedom to make whatever decisions they needed to please the
customer and make a sale.
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But ringing up an "immediate" sale is not the primary focus. Ifcustomers need a bike part--a tire valve cap or a chain link--
salespeople simply give it to them. The store also gives away
cellular phones so bike riders can keep in touch with others or
be prepared to make a call for assistance if needed. Zane also
believes that any successful business owes its success to the
community that supports it. It's a relationship that must be
nurtured.
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Question 1
Identify and describe the entrepreneurial spirit
exhibited by Chris Zane. How has this affected his
business?
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Entrepreneurial Spirit
Entrepreneurship is the process of initiating a
business venture, organizing the necessary resources,
and assuming the risks and rewards.
Entrepreneurs usually start small business--one that
has fewer than 500 employees.
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2. Why the increased popularity?a) There has always been a segment of the population that
wanted to control its own destiny.
b) Recent changes in the economy have stimulated interest inbeing one's own boss.
(1) Corporate downsizing.
(2) Self-employment opportunity financed in part by theirseverance pay or early retirement bonus.
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(3) Others see colleagues and friends lose their jobs
and voluntarily cut their corporate ties and choose
self-employment.
(4) Growing options in franchising.
Less risk. Lower failure rate.
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Answer to Question 1
He exceeded customer expectations and competitors'
offers. Taking over the phone numbers of defunct
competitors was an act of genius. Giving salespeople
the power to make decisions to make the sales.
Focusing on customer needs, etc.
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Question 2 and its answer
Do you believe that Chris Zane endorses the concept that the
"customer is king"? Support your position with examples.
Answer- Letting customers browse, giving away items to meetcustomer needs, hiring knowledgeable sales people who help
and advise, etc.
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Total Quality Management
Continuous improvement
Employee empowerment
Accurate measurement
Customer focus
Overall quality
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Question 3
Is Chris Zane a socially responsible employer? Does
your opinion change when you consider some of the
socially responsible actions he takes has helped him
achieve a 700 percent return on investment?
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Arguments forSocial Responsibility
Public expectations
Long-run profits
Ethical obligations
Public relations imageBetter environment
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Arguments forSocial Responsibility
Fewer government regulationsBalance of responsibility and power
Stockholder interests
Possession of resources
Prevention versus cures
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Arguments Against Social
Responsibility
Violation of profit maximization
Dilution of purpose
Costs outweigh benefits
Too much power
Lack of skills
Lack of accountability
Lack of broad public support
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Answer to Question 3
Yes, hes heavily involved with the community and
places the customer first. The fact he has a positive
business/profit outcome does not diminish the social
responsibility of his actions.
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Application Case in Chapter 4
Case 2:
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Question 1
What type of grand strategy(ies) have Chao pursued?
Cite specific examples.
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Answer to Question 1
None of the strategies fit directly, the closest being
growth--growth through more sales revenues, more
employees, or more market share, through direct
expansion, new product development, quality
improvement.
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Question 2
Michael Porter identified three generic strategies
that companies can follow to develop a competitive
advantage. Which one of the three do you believe
Chao is primarily using? Discuss and support your
choice.
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Answer to Question 2
Focus (uniqueness in a narrow market) strategy. He
chose to go after market segments where sales rarely
exceeded $10 million and where little drug name
recognition existed.
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Question 3
What characteristics does Allen Chao possess that
indicates he is an entrepreneur? Give specific
examples.
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Answer to Question 3
A number of common characteristics have been found; hard
work, self-confidence, optimism, determination, a high energy
level, and even good luck. Entrepreneurs have a high need forachievement. They believe strongly that they can control their
own destinies. They take only moderate risks. His persistence
in face of obstacles, giving up so much of his company to get
money, the continually execution of a very focused strategy,
etc.
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Application Case in Chapter 5
Case 3:
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Question 1
1. What types of problems do you see Loida Lewis
having to deal with in this case? Explain.
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Answer to Question 1
Poorly structured.
(1)Lewis did not have the business acumen or the
experience of her late husband.
(2)The company was losing money.
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Question 2
2. What decisions did Loida Lewis make that helped
turn around the ailing company? Would you classify
them as programmed or non-programmed? Why?
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Answer to Question 2
She made several major decisions, paring down the company to
enhance its core business operations. She sold off the company
limousine and the jet, cut headquarter staff in half, and sold off
many of the less-profitable companies, focusing on reducingBeatrice's debt. These are all non-programmed to the company,
but would be "standard" decisions to save a company money.
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Question 3
3. How would you describe Lewis' decision-making
style? Cite specific examples.
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Answer to Question 3
Behavioral style. (Think intuitively but has a low tolerance for
uncertainty)
She began molding it in her image. She involves her inner groupin decisions and uses compassion to develop a "focused,
disciplined, sensitive, and collegial atmosphere."
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Application Case in Chapter 6
Developing Your Diagnostic and
Analytical Skills
Case 4:
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Question 1
1. Would you describe ABB as more of a mechanistic
or an organic organization? Explain and use specific
examples to support your position.
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Answer to Question 1
It probably was mechanistic but became organic. The
redesign made ABB highly adaptive, focused on the
ability to change rapidly as needed, and used
professionals who are technically proficient and
trained to handle diverse problems.
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Question 2
2. Describe how technology and communications
have affected ABB's organizational structure.
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Answer to Question 2
Students answers will vary based on their assumptions,
as the case is not explicit in regards to these elements.
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Question 3
3. How would you describe the characteristics of ABB's
culture?
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Answer to Question 3
Students' responses will vary.
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You are riding in a car driven by a close friend.
He hits a man. You know he was going at least
35 miles per hour in an area of the city where
the maximum allowed speed is 20 miles perhour. There are no witnesses. His lawyer says
that if you testify that he was driving 20 miles
per hour it may save him from seriousconsequences.
Case 5:
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Question 1
1. What right has your friend to expect you to protect him?
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Answer to Question 1
My friend has a definite right as a friend to expect me totestify.
He has some right as a friend to expect me to testify.
He has no right as a friend to expect me to testify.
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Question 2
2. Will you testify that your friend was driving 20 miles
per hour?
A Q i
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Answer to Question 2
Yes.
No.
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On a beautiful deserted island in the middle ofnowhere, the following people are suddenlystranded by a shipwreck:
2 Italian men and 1 Italian woman2 French men and 1 French woman2 German and I German woman2 Greek men and 1 Greek woman2 English men and 1 English woman2 Bulgarian men and 1 Bulgarian woman
2 Japanese men and 1 Japanese woman2 Chinese men and 1 Chinese woman2 American men and 1 American woman2 Irish men and 1 Irish woman
Case 6:
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One month later on the same absolutelystunning deserted island in the middle ofnowhere, the following things have occurred:
One ___________ man killed the other___________ man for the woman.
The two ___________ men and the___________ woman are living happily together
in a house.The two ___________ men have a strictweekly schedule of alternating visits with the
___________ woman.
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The two ___________ men are sleeping with each otherand the ___________ woman is cleaning and cookingfor them.
The two ___________ men took one long look at the
endless ocean, and another long look at the___________ woman, and started swimming.The two ___________ men have faxed Tokyo and areawaiting instructions.The two ___________ men have set up a pharmacy, a
liquor store, a restaurant and a laundry, and have got the___________ woman pregnant in order to supplyemployees for their stores.
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The two ___________ men are contemplating thevirtues of suicide because the ___________woman keeps endlessly complaining about herbody; the true nature of feminism; how she can do
everything they can do; the necessity of fulfilment;the equal division of household chores; how sandand palm trees make her look fat; how her lastboyfriend respected her opinion and treated hernicer than they do; but how her relationship withher mother is improving and how at least the taxesare low and it isnt raining.
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The two ___________ men are waiting forsomeone to introduce them to the
___________ woman.
The two ___________ men have divided theisland into North and South and set up adistillery. They do not remember if sex is in thepicture because it gets sort of foggy after the
first few litres of coconut whisky. But theyresatisfied because at least the English arent
having sex either.
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One month later on the same absolutely stunningdeserted island in the middle of nowhere, thefollowing things have occurred:
One Italian man killed the other Italian man for the
woman. The two French men and the French woman areliving happily together in a house.
The two German men have a strict weekly scheduleof alternating visits with the German woman.
The two Greek men are sleeping with each other andthe Greek woman is cleaning and cooking for them.
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The two Bulgarian men took one long look at theendless ocean, and another long look at the Bulgarianwoman, and started swimming.
The two Japanese men have faxed Tokyo and areawaiting instructions.
The two Chinese men have set up a pharmacy, a liquorstore, a restaurant and a laundry, and have got the
woman pregnant in order to supply employees for theirstores.
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The two American men are contemplating the virtues ofsuicide because the American woman keeps endlesslycomplaining about her body; the true nature of feminism;how she can do everything they can do; the necessity of
fulfilment; the equal division of household chores; howsand and palm trees make her look fat; how her lastboyfriend respected her opinion and treated her nicer thanthey do; but how her relationship with her mother is
improving and how at least the taxes are low and it isntraining.
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The two English men are waiting for someone tointroduce them to the English woman.
The two Irish men have divided the island into North andSouth and set up a distillery. They do not remember if sexis in the picture because it gets sort of foggy after the firstfew litres of coconut whisky. But theyre satisfied because
at least the English arent having sex either.