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UNIVERSITY OF SANTO TOMAS GRADUATE SCHOOL

Case Study: From Regional Star to Global Leader


Technology and Operations Management

Submitted by: Jeniefer C. Espino

June 25, 2013

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Main Issue As the world embraces the global economy, modern corporations might need to promote diversified management staffs in order to keep pace in the merging market economy. Thrusting onto the world stage, Yang Jianguo became a new generation regional manager in a French perfume company. Given that he is equipped with intimate knowledge of local markets and local Chinese managerial skills, but differences in national and corporate cultures within the same organization can pose hurdles in a new environment. Different attitudes and behaviors of new colleagues might give him a hard time to work and get familiar with. Cultural difference is one of the aspects Jianguo must look into. The main organization structure of Chinese companies is different from French companies. Jianguo was once a Chinese local manager but now a global companys executive. His role has changed and so as everything that follows. Effective communication is important in an organization. Jianguo might be a really smart guy but he did a really bad job in promoting himself and his ideas. Can Yang Jianguo make the transition from being a local Chinese manager to a multinational executive? What adjustments should Jianguo do without sacrificing his identity? What changes can the company make? Stakeholders The organization. The success of an organization depends on how decisions are made and how members of the organization communicate. Having new product lines can rebuild the companys reputation. The consumers Having new product lines would give consumers the chance to try new ones instead of settling to what they are used to. Yang Jianguo Jianguo can fully utilize his role as the new SVP for global product development CEO and members of the team Harmonious relationship with everyone in the team will result to more productive people Course/s of Action The problems encountered in this case can be viewed from two aspects: the aspects of Yang Jianguo and the aspects of the company. Both parties should make adjustments to fit each other. Yang Jianguo Make changes in his beliefs and behavior Company (Deronde International) Conduct cultural appreciation and immersion processes for the whole team Develop new skills to adapt to international Avoid stereotyping anybody who doesnt look market and speak the way they do Stay away from being seen as s supporter for Pay attention to cultural differences China, its products and its culture Establish good communication between your Do enough preparation for promotion subordinates and the people around you Make himself used to the western culture Be more open-minded regarding his coworkers ideas

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Recommendation The value of Jianguo is not fully used in the company. However, we need to see his values and that is the reason for the company to make some change to fully use the potential of its employees. The bureaucracy form both sides, Chinese and French, should be reduced. Although the bureaucracy has some strength, such as functional economies of scale, minimum duplication of personnel and equipment, enhanced communication and centralized decision making. The inefficiency of communication is large due to the bureaucracy in the minds of people from both sides. The weaknesses of bureaucracy are subunit conflicts with organizational goals, obsessive concern with rules and regulations and lack of employee discretion to deal with problems. Both the organization and the person mainly concerned should make efforts. For avoiding, the organization or the superior should take more responsibilities. The whole organization should cultivate a more flexible mechanism of decision making under the situation of such a big but necessary high-level personnel change for companys strategic movement. As a superior, it must consider carefully and completely about the problems probably confronted with before making such a decision.