cross-cultural management 1 case study. cross-cultural management application case in chapter 3 case...

1 Cross-Cultural Management

Case Study

Cross-Cultural Management

Application Case in Chapter 3

Case 1:


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.

Cross-Cultural Management4

When those two competitors went out of business, he negotiated

a 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!


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.


But ringing up an "immediate" sale is not the primary focus. If

customers 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.


Question 1

• Identify and describe the entrepreneurial spirit

exhibited by Chris Zane. How has this affected his

business?


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.


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 in

being one's own boss.

(1) Corporate downsizing.

(2) Self-employment opportunity financed in part by their

severance pay or early retirement bonus.


(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.


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.


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 meet

customer needs, hiring knowledgeable sales people who help

and advise, etc.


Total Quality Management

• Continuous improvement

• Employee empowerment

• Accurate measurement

• Customer focus

• Overall quality


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?


Arguments forArguments forSocial ResponsibilitySocial Responsibility


Public expectations

Long-run profits

Ethical obligations

Public relations image

Better environment

Public expectations

Long-run profits

Ethical obligations

Public relations image

Better environment




Fewer government regulations

Balance of responsibility and power

Stockholder interests

Possession of resources

Prevention versus cures

Fewer government regulations

Balance of responsibility and power

Stockholder interests

Possession of resources

Prevention versus cures


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



• Yes, he’s 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.



Case 2:


Question 1

• What type of grand strategy(ies) have Chao pursued?

Cite specific examples.



• 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.


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.



• 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.


Question 3

• What characteristics does Allen Chao possess that

indicates he is an entrepreneur? Give specific

examples.



• 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 for

achievement. 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.



Case 3:


Question 1

1. What types of problems do you see Loida Lewis

having to deal with in this case? Explain.



Poorly structured.

(1)Lewis did not have the business acumen or the

experience of her late husband.

(2)The company was losing money.


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?



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 reducing

Beatrice's debt. These are all non-programmed to the company,

but would be "standard" decisions to save a company money.


Question 3

3. How would you describe Lewis' decision-making

style? Cite specific examples.



Behavioral style. (Think intuitively but has a low tolerance for

uncertainty)

She began molding it in her image. She involves her inner group

in decisions and uses compassion to develop a "focused,

disciplined, sensitive, and collegial atmosphere."


Application Case in Chapter 6Developing Your Diagnostic and

Analytical Skills

Case 4:


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.



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.


Question 2

2. Describe how technology and communications

have affected ABB's organizational structure.



Students’ answers will vary based on their assumptions,

as the case is not explicit in regards to these elements.


Question 3

3. How would you describe the characteristics of ABB's

culture?



Students' responses will vary.


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 per

hour. There are no witnesses. His lawyer says that if you testify that he was driving 20 miles

per hour it may save him from serious consequences.

Case 5:


Question 1

1. What right has your friend to expect you to protect him?



• My friend has a definite right as a friend to expect me to testify.

• He has some right as a friend to expect me to testify.• He has no right as a friend to expect me to testify.


Question 2

2. Will you testify that your friend was driving 20 miles per

hour?



• Yes.• No.


On a beautiful deserted island in the middle of nowhere, the following people are suddenly stranded by a shipwreck: 2 Italian men and 1 Italian woman 2 French men and 1 French woman 2 German and I German woman 2 Greek men and 1 Greek woman 2 English men and 1 English woman 2 Bulgarian men and 1 Bulgarian woman 2 Japanese men and 1 Japanese woman 2 Chinese men and 1 Chinese woman 2 American men and 1 American woman 2 Irish men and 1 Irish woman

Case 6:


One month later on the same absolutely stunning deserted island in the middle of nowhere, 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 strict weekly schedule of alternating visits with the ___________ woman.


The two ___________ men are sleeping with each other and the ___________ woman is cleaning and cooking for 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 are awaiting 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 supply employees for their stores.


The two ___________ men are contemplating the virtues of suicide because the ___________ woman keeps endlessly complaining 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; how sand and palm trees make her look fat; how her last boyfriend respected her opinion and treated her nicer than they do; but how her relationship with her mother is improving and how at least the taxes are low and it isn’t raining.


The two ___________ men are waiting for someone to introduce them to the ___________ woman.The two ___________ men have divided the island into North and South and set up a distillery. They do not remember if sex is in the picture because it gets sort of foggy after the first few litres of coconut whisky. But they’re satisfied because at least the English aren’t having sex either.


• One month later on the same absolutely stunning deserted island in the middle of nowhere, the following things have occurred:

• One Italian man killed the other Italian man for the woman.

• The two French men and the French woman are living happily together in a house.

• The two German men have a strict weekly schedule of alternating visits with the German woman.

• The two Greek men are sleeping with each other and the Greek woman is cleaning and cooking for them.


The two Bulgarian men took one long look at the endless ocean, and another long look at the Bulgarian woman, and started swimming.

The two Japanese men have faxed Tokyo and are awaiting instructions.

The two Chinese men have set up a pharmacy, a liquor store, a restaurant and a laundry, and have got the woman pregnant in order to supply employees for their stores.


The two American men are contemplating the virtues of suicide because the American woman keeps endlessly complaining 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; how sand and palm trees make her look fat; how her last boyfriend respected her opinion and treated her nicer than they do; but how her relationship with her mother is improving and how at least the taxes are low and it isn’t raining.


The two English men are waiting for someone to introduce them to the English woman.

The two Irish men have divided the island into North and South and set up a distillery. They do not remember if sex is in the picture because it gets sort of foggy after the first few litres of coconut whisky. But they’re satisfied because at least the English aren’t having sex either.

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