Blog X (#10)

For this blog entry we were to watch a video about the future of global corporations. In the beginning of the video clip it has a woman talking about how global corporations are the most important institutions to date because of their size, global reach and access to resources. I do agree with that statement but I also want to touch on that with all that stuff come great power and wrong full usage of the power. I believe that global corporations can effect outcomes of political campaigns and also use that power they have to effect the economy...for example price fixing and eliminate competition which brings the choice down. I am kind of on the fence because I do support them having that power if they use it the right way by investing in new technologies and helping the economy but I don't support global corporations because of all the power they have at their finger tips.

Headquarters-Foreign Subsidiary Control Relationships

Now for this post I was assigned to look at how I would control subsidiaries in France, Germany, Britain and China. The choices I had were centralization (which deals with the higher ups controlling how the subsidiaries are run and operated), formalization (which deal with a more hands off and allow them to run the subsidiaries as see fit) and finally normative integration (which deals with sharing the same goals, values and beliefs but not being controlled from the higher ups or allowing them to run how they see fit). I thought for France and Britain give them a formalization or even normative integration form for the subsidiaries because they are very friendly with the USA and I personally have the same views as the USA from a business aspect. Now with Germany I am kind of on the fence when it deals with centralization and formalization. If their was a middle between those two I would pick that because having some say in the subsidiaries but also allowing then to run their own way would be good. Finally with China I would make them strictly centralization because even though most of the products in the USA are made in China the subsidiaries should be run a certain way and follow strict rules and regulations.

Cross-Cultural Decision Making

For the last two posts I have been talking about Cross-Cultural issues. I suggest if you were to be a consultant for any kind of nation other then your home nation do the following:

1. Do some research on the culture.
2. If it is a culture where a connection is more important, make that connection and when the time is right get down to business.
3. Have fun because you are in a different country
4. If you are all about business and just want to make the deal/sale you won't
5. Respect

If you follow those 5 little steps then you will be successful in going abroad and making sales/deal with other nations.

Chapter 10

This chapter basically talks about the last two post that I have done. It talks about how different cultures have different ways to look at things and different ways to get things done. Also it talks about the relationships people have in different cultures and if you do go there for some kind of business or travel you should know a little about their background so that you don't make a fool of yourself.

Cross-Cultural Communication

When trying to get a point or order across to someone from another culture you might need to take some things into consideration. Many cultures have different slang and meaning for slang that is used by non-native cultures. For example the Japanese and Chinese do not make eye contact when they are being ordered or disciplined. While the American culture might involve eye contact and even taking back to prove their point. I have taken many communication courses because I am a Communication Major and the chapter in the book basically gives the outlines of Introduction to Communication but uses it in a business format. If you look at my last post about the sales manager wanting to make the sale so badly that he messed it up, which dealt with culture, this also deals with the same thing but with verbal and non-verbal communication.

The Impatient American Sales Manager

The assignment deals with a little case study which involves a sales manager from America visiting Latin America to get a client to sign a contract. The manager visits and basically wants to get the sale done so that he can be sipping his favorite drink on the beach, basically have a baby vacation. While the manager is trying to get this contract signed he is having a very hard time tracking down the Minister of Communication. After spend a few days trying to figure out where the minister is, the manager visits him at his office. After waiting a long time in the front office the minister finally gets around to talking to the manager. The minister basically wants to show the manager around and have a good time. The manager puts up with that the Minister wants to do and on the last day the manager really pushes for this sale. While walking in the park the manager comes out and says so do we have a deal. Before he could finish the Minister points to a statue and asks the manager if he knew who it was. The manager said no and the contract was not signed and the sale was lost.

This shows that the manager should have know some things about the Latin America culture before visiting with business purposes.

Expatriates

In Chapter 7 it talks about International Managerial Staffing mainly using Expatriates.

It gives many disadvantages which include:

Expensive Orientation Programs
Unfamiliarity with the Foreign Environment
Communication Problems
Not adapting to the Foreign Culture
Expensive Incentives Required
Poor “Goodwill

With these being disadvantages the only way to make expatriates successful is to do all of the disadvantages in a positive way so that they don't cause any kind of performance issues.