Documenti di Didattica
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on
International Managemant
COURSE No-207
Submitted to
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Department of International business.
Faculty of Business studies,
University of Dhaka.
Submitted by
Batch: BBA-15(IB-2nd)
Roll No: 38
Course No-207
University of Dhaka.
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Case Case Contents Page
no: No:
1 Colgate’s Distasteful Toothpaste. 04
2 Advertising or Free Speech? The case of 05 to 06
Nike and Human Rights.
3 Pharmaceutical Companies, Intellectual 06-09
Property, and The Global Aids Epidemic.
4 Cross Cultural Conflicts in the Corning – 10 to11
Vitro Joint Venture.
5 Integrating National and Organizational 11 to 12
Cultures: Chemical Bank’s Mergers in
Europe.
6 Euro Disneyland 12 to17
7 Wall Mart’s Japan Strategy 17 to 19
8 KNP.N.V 20
9 Can Reliance Compete? 21
10 The HP –Compaq Merger and its Global 22 to 23
Implications can the Budget Airline
Model Succeeded in Asia?
11 The Story of Air Asia. 23 to 24
12 A copy Shop Goes Global. 25
13 The Road to Hell. 26 to 27
14 Lord John Browne and BP’s Global Shift 27 to 29
15 Chiquita’s Global Turnaround 30 to 32
Part one
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Brief Integrative case 1:
Colgate’s Distasteful Toothpaste
Page No: 77 to 790
Questions for review :
Question 1: Identify the major strategic and ethical issues faced by Colgate in its
partnership with Hawley and Hazel.
The major strategic and ethical issues faced by Colgate in its partnership with Hawley
and Hazel are: Colgate has no management prerogative; Hawley and Hazel
maintained the right to make the major decisions in the organization. Another issue is
racism. In US and in many other countries, a clash had taken place for the logo and
name of “Darkie” toothpaste of Colgate.
Question 2 : What do you think Colgate should have done to handle the situation ?
I think, Colgate should have made a apology to all to all insulted groups, should
change the controversial name and logo where it creating racial offensiveness.
Question 3 : Is it possible for Colgate and Hawley and Hazel to change the toothpaste’s
advertising without sacrificing consumer brand loyalty? Is a possible reason for Colgate’s
not responding quickly to domestic complains?
Question 4 : In the end was a “no management rights” good for Colgate? What could
happen during the negotiating process to get around this problem?
No, the clause “no management rights” was not good for Colgate. Then racisms
controversy would not take place. To get around this problem, during the negotiation
process,
Colgate could have taken significant percentage of management right. Or they could hire
third neutral management group for solving the problem.
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Advertising or Free Speech? The Case of Nike and Human Rights.
Page No: 80 to 81
Questions for review :
Question 1: What ethical issues faced by MNC’s in their treatment of foreign workers
could bring allegations of misconduct in their operations?
The ethical issues which faced by MNCs in their treatment of foreign workers could
allegations of misconduct in their operations are unethical use of offshore workers in
poorer region of the world.
Yes, the use of third party independent contractors insulates MNCs from being attacked.
Yes, that practice offer MNCs a good defensive shield against charges of abuse of
“their employees”.
Question 1: Do you think the statements by companies that describe good social and
moral conduct in the treatment of their workers are part of the image those companies
create and therefore are part of their advertising message? Do consumers judge
companies and base their decision on their perception of corporate behavior and values?
Is the historic “made in” question now being replaced by a “made by” inquiry?
Yes, I think that statements by companies that describe good social and moral
conduct in the treatment of their workers are part of the images those companies
create and therefore are part of their advertising message.
Yes, consumers judge companies and base their buying decision on their
perceptions of corporate behavior and values.
The historic “made in” question now is being replaced by a “made by”
inquiry.
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Question 1: Given the principles noted in the case, how can company comment on
their positive actions to promote human rights so that consumers will think well of them?
Companies can comment on their positive actions to promote human rights so that
consumers will think well of them by focusing consumers’ need, their right actions.
I would propose, a company should construct a corporate code of ethics to
overcome this type of problems.
Page No: 82 to 90
Questions for review :
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● The AIDS epidemic and the potential treatment is very high;
● The people have lower level of education;
● There is no cure or vaccine for AIDS;
● Treatment is very expensive;
● The prices of drugs are low, it should be more reduce;
Question 2 : What are the principles arguments of Pharmaceutical Companies that
oppose to IPR laws for developing countries? What are the arguments by NGOs and
others for relaxing IPR laws?
Ans: The Intellectual Property Rights (IPR) grants investors rights for original
creations. The principles arguments of Pharmaceutical Companies are-
Ans: Drug discovery was a long, expensive and uncertain process. The European
nations are the world’s most famous drug producing nations. Leading
pharmaceutical companies were large and profitable although all of them have
come under pressure from a range of factors- most notably, calls for lower health
care costs in most major industrialized countries. In the recent years, the annual
R&D expenditures of the members of the pharmaceutical companies
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Question 4 : In June 2002, the WTO extended the transition period during which
least developed countries (LDCs) had to provide patent protection for
pharmaceuticals. In your opinion, is this an appropriate change in policy or a
dangerous precedent? What could be some of the negative ramification of this
resolution? What about the effects for other industries?
Ans: In June 2002, two weeks before the 14th International AIDS Conference in
Barcelona, the WTO council responsible for intellectual property extended until
2016 the transition period during which least developed countries (LDCs) did not
have to provide patent protection for pharmaceuticals. However, the funds
deployed for fighting AIDS were modest. The actions and statements of officials
did not go as far as critics wanted.
Ans: In August 2003, the USA and other WTO members announced that they had
finalized a solution to streamline the supply of disease fighting medications to
poor countries. As part of compromise deal, the USA agreed to language that
would allow to compulsory licensing only for genuine health reasons. The USA
president took initiatives for AIDS.
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purpose. If the international organizations help the African Nations their
responsibility and ethical behavior will be proved. The leading donors are USA,
EU, France, Japan, Italy, UK, and Gates Foundation. I hope the donors will
increase day by day for the AIDS affected people.
Part two:
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Brief Integrative Case 1:
Cross-Cultural Conflicts in the Corning-Vitro Joint Venture
Page No: 211 to 212
Questions for review :
Question 3 : If Corning and Vitro had decided to remain in the alliance, how could
they have overcome their differences to make the partnership a success?
Ans: To make their differences both companies should follow the following
directions:
You need a solid business opportunity.
● The new enterprise should have a well-defined scope and no major conflicts
with either parent company.
● The two partners should make comparable contributions to the new
enterprise.
● The management of each parent firm should have the vision and confidence
to support the venture through its inevitable rough spots.
● An autonomous operating team should be formed.
● Responsibility cannot be delegated.
● Both partners should have trust between themselves.
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Question 4 : Discuss why both companies would continue to distribute each
other’s products after the joint venture failed. What impact might the public
statements about the failure have on this relationship?
Ans: Both companies would like to continue distribute each others products because
of their cultural differences in the decision-making process. Corning’s public statements
about the failure of their relationship were that they think Mexicans Vitro Company’s
decision making process is time consuming than Corning. Vitro’s public statements about
the failure of their relationship were that Americans are forward.
Ans: The challenges that mergers create for managing national and organizational
cultures are the following:
● The first challenge that the two mergers face is that there wasn’t a great deal
of overlap in Europe between the former competitors; instead, what Aspbury
found was a complementary fit among the various businesses.
● Secondly most lower-level employees didn’t have the same degree of
certainty and the challenges that senior managers faced were abundant.
● Another challenges faced by two company is the cross-border dimension. It
was necessary not only to get former rivals to work together but also to deal
with centuries-old cultural differences that could become major impediments
to the business going forward.
● Another challenges created by two mergers is team building and
communication.
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Question 3 : What management skills are most important to making a cross-border
merger successful? How might these skills differ from those needed during “routine”
periods?
Ans: The management skills that is important to make a cross-border merger
successful by calling product seminars, business reviews and exposure to top
executives to build relationships with colleagues to enhance future business
opportunities.
Question 4 : What specific steps were taken in the two mergers to try to align the
interest of different parts of the organizations so that they were all working toward the
overall good of the firm?
Ans: The following specific steps were taken in the two mergers to try to align the
interest of different parts of the organizations:
● Within days of the announcement, most senior positions were filled thus
preventing the natural infighting that occurs when uncertainty exists.
● Call a four-day meeting by inviting 150 bankers from Chemical Europe to
Marbella, Spain.
● Changed its name to Chase Manhattan Corporation.
Ans: The interaction of organizational culture and national culture can create
impediments to change and constraint managerial options. At the same time, a merger
can reenergize organizations, break down barriers to change and provide new
opportunities. By this way, an organization can create diversity among employees.
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Answer: Merger has become very popular strategy to enter into the international
business. But it creates lots of challenges for managing national and organizational
cultures. Some are given in the following:
Managing with different languages
● Coordination may differ from one country to another. It has an impact in the
overall activity of business. Merger may create conflicts in this coordination
sector.
Answer: Fortunately, the prospect of working for a successful new company helped
managers overcome many of the obstacles in Europe. Focusing on common denominators
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rather than on differences was so important. Communication was a key element in this
regard. Bimonthly meeting in London of country managers became the norm. Reward
system is another factor. It includes bonus. Language and historical background are very
influential in this case. Level of coordination is another issue. These challenges were the
fact. So, both mergers were in the U.S.
Question 3: What management skills are most important to making a cross-border:
merger successful? How might these skills differ from those needed during “routine”
periods?
Answer: The skills needed to make a cross-border: merger successful are in the
following:
Communication skills
● Routine meeting, local community; these are very much important in an effective
communication process. Merger will become more and more successful,
meaningful and sustainable in the long-run.
● Reward system
● Reward system is another issue. It creates motivation among the employees. Thus,
it makes the merger more successful.
● Adopting with different cultures
It involves understanding:
-Historical background
-Language
-Ethical issues
-Level of coordination
Question 4 : What specific steps were taken in the two mergers to try to align the
interests of different parts of the organizations so that they were all looking toward
the overall good of the firm?
Answer: Some specific steps were taken which are given in the following:
● Meeting with bankers
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All the bankers were organize meeting and consult about the important issues. They
thought about the overall goodwill of the firm and they also discussed about the solution
of the problems.
● Building relationship with the colleagues
Relationship is an essential part of modern business that helps an organization to create a
feasible environment. The company built a strong relationship with their colleagues to get
the idea about the overall situation and environment.
● Effective reward system
Reward is an effective motivator for the employees. The company established an
effective reward system to motivate the employees. Because they were the people who
would take the organization in the long run. So, motivation as well as reward/bonus was
established.
● Team building
Team work is an important factor now-a-days. It is better than doing a job individually.
Each member can share their expression and solve the problem in the best possible way.
So, the company tried to establish proper team work environment.
● Effective communication
Strong communication is very necessary in modern competitive business age. Without
proper communication among the related parties, no business can sustain. so, the
company wanted to set up a better level of communication.
Question 5 : How might diversity among employees of different cultural backgrounds
and with varying specialties and expertise actually strengthen an organization’s culture
after a merger?
Answer: Diversity among employees of different cultural backgrounds and with varying
specialties and expertise is strength of an organization. After merger, two different
companies become close and they can share their feelings, ideas, plans, perspectives,
viewpoints etc. It is very much helpful to overcome complexity and tackle problems.
Both companies can consult from their own perspectives and think which strategy is
better for the specific problem. Experience, another important issue. of business, can help
the companies to survive in the competitive world. By sha
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Depth Integrative case 1:
EURO DISNEYLAND
Pase No:216 to 225
Question 1 : Using Hofstede’s four cultural dimensions as a point of reference, what
are some of the main cultural differences between the U.S. and France?
● =Uncertainty avoidance
● =Power distance
● =Individualism Vs Collectivism
● =Masculinity Vs Femininity
According to these sectors, the main cultural difference between the countries is
that the U.S. believes in individualism. But France believes in collectivism. They
don’t want to see their children as a customer in business field. But U.S. wants to
make profit if it is profitable to do business by motivating children.
France culture likes to be stable in every case. They want certainty in business
which is absolutely opposite to the U. S.
● = Universalism Vs Particularism
● = Individualism Vs Communitarianism
● = Neutral Vs Emotional
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● = Specific Vs Diffuse
● = Achievement Vs Ascription
According to these dimensions, his research told that universalism is believed by
the U.S. rather than France because they made the infrastructure of Disney Land
according to their own culture. They didn’t think about the other’s sentiments.
Then, individualism is followed by the U.S. more than France. So, many critics
said that Disney made the children “customer” rather than human being.
Moreover, people in France are emotional as we can see that the farmers raise
their voice for the Disney symbol. In this way his research helped explain
differences between and France.
Question 3 : In managing its Euro Disneyland operations, what are three mistakes
that the company made? Explain.
a. There was a great problem for personal space. People of France were too close
with others. But foreigners might want to have personal space for themselves.
It was one of the main problems that the company faced.
b. Disney placed its first work bids in English, leaving smaller and medium-
sized French firms feeling like foreigners in their own land.
c. Disney was forced to bail out 40 subordinators who were working for the
Gabot-Eremco construction constracting group, which had been unable to
honor all of its commitments.
Question 4 : Based on its experience, what are three lessons the company should
have learned about how to deal with diversity? Describe each.
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Answer: The company experienced so many lessons from their operation in
different countries associated with different cultures. Most important three lessons
are:
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9. In your opinion, what is the single most important thing Wal-Mart can do to
ensure success in Japan? Explain.
Ans: Japanese consumers realized through Wal-Mart that lower price doesn’t
always mean lower quality. So Wal-Mart can focus on low cost of product with
maximum/ good quality.
Question 3 : Do you think Wal-Mart is doing enough cross-cultural training with
its Seiyu employees? What are the greatest challenges Wal-Mart faces in relating
to its Japanese employees?
Ans: Yes, I think Wal-Mart cross-cultural training programs was enough , related
to achieve their goals.
Greatest challenges Wal-Mart faces:
10. Language barriers because Japanese employers have to transform their
language into English.
11. Technological barriers.
12. Differences in management practices.
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Part Three:
Brief Integrative case 1:
Kaninklijke Nederland paperfabrieken, n.v (K.N.P,N.V)
Question 1: In formulating its strategies for the next decade , what are the
first steps that KNP should undertake?
In formulating its strategies for the next decade KNP should developed its
integrated production operation that uses softwood to manufacture pulp
instead of the chemical pulp purched in the international commodity markets.
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Question 4: In controlling operations, on what types of performance should
K.N.P be focusing its attention?
Question 1: What strategy have the reliance owners used to gain favorable
treatment from the Indian government?
13. For telecom business ,it vowed to forge ahead anyway with its
plans to offer cheap mobile service across India
14. In oil business, it helped to reduce the nation, s spends on
refined oil by building its own refinery.
Yes t think the reliance strategy’s are smart .the positive of these
strategies are that the India can use cheap service as well as develop
its own industry.
The negative side of these strategies are that reliance will dominate
the Indian telecom and oil market.
Yes, I thank that the reliance telecom will compete against MNC s who do
business in India disagree with analyst who say reliance will find the telecom
business, hard going ,.because
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15. The reliance is favorite in India and overseas investor with applaud
fiscal management.
16. Reliance is improving it technical support by building 37000 miles fiver
optic backbone through India and hopes to dominate and global data
and voice traffic.
17. It is ready to do well against foreign rivals with deep pockets, local
expertise and government subsidies
Question 1: Do you believe that the new HP has communicated its combined
offering effetely in its international markets?W hat else needs to be done?
Yes
I believe that the new HP has communicated its combined offering effetely
in its international markets . because new HP has already increased it sales
reduced competitive nature of the market through inherent business value
and fast changing technology.
Question 2: What are some of the entry and organizational challenges that
HP faces?
1.communication barriers
3.fieerce compition
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5. overall manegarial challenges etc
Yes, HP should move to a direct selling model to battle Dell overs. Because
European consumers have already begun to show a tendency to be less
committed to buying through local retail changes and purchasing local
brands.
Question 5 :.How much of an impact do you fell HP,s i-communities will have
the company,s future sales? Do you think this from of international coporate
social responsibility will contribute to the bottom line?
Question 6: In your opinion ,what are the three best things carly Fiorina has
been able to accomplish by merging HP and Compaq?
The full impact of the HP –Compacq merger on HP, s global strategy is still
unclear .integrating two large companies is challenging enough in itself. But
ib an environment of fast changing technology, fierce competition and
declining entry barriers .the change is formidable.
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Can the Budget Airline Model Succeed in Asia?
Questions for review :
The entrance of the low fare airlines in the asia pacific region has many
opportunities .such as
Air Asia ,s strategy was to cut down its fare price to expan its business in low
income countries sucs as Malaysia , butan etc .on the other hand south
west and ryanair want to improve their service by using narrow –body fleed.
Question: 5 Did Tony Fernandes weight the range of political, economic, and
operational risks when he took over AirAsia? What risks might he have
overlooked?
Tony fernands had entrepreneurial fair from the start. His entrepreneurial
strategy was business motive that helped to expand business such as ipo
advertising etc .
Q uestion:7 How do you think that the asian passenger air transport
marketplace will skake out
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Yes I think that the asian passenger air transport marketplace will skake out
because in a low fare the passenger will eager to travel in air rather than bus
or train.
The north American and Europe an experience teachs us that fare should be
reasonable according to income.
Part Four
Brief Integrative case 1:
A copy shop goes global
Page No:509 to 511
Questions for review :
Question 1: What are some of the general challenges of starting a new business in
another country? What specific challenges did Copy General face in Eastern and
Central Europe?
Ans: it is very important to know the attitudes, norms, behavior of different
countries cultural variability. There are also some obvious things that country
should require. They are-
● Political and legal issues;
● Region of that country;
● Religion;
● Sovereignty;
● Economic stability;
There were several obvious things that copy shop faced in Estern and central
Europe.
● look for supplier; he think that it would be easy.
● to arrange for copiers for new store
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● then conducting Kodak, which is major competitor;
Question 2:.How important was Paul Panitz’s vision to the decision to go to into
Hungary? How would you characterize his leadership and management style and
his commitment to “doing well by doing well”?
Ans: Paul Panitz' s vision to the decision to gon in to Hungary was very
important. they set their sights on Hangary . in keeping with company policy, they
were notorious for preson. his leadership and management style and his
commitment to "doing well by doing good" is charackterized by participative
leadership.
- John Baker
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John Baker did not realize this mistake when it occurred because
there was difficulty in understanding what Hutchins wants to say
about Matthew Rennalls .
Reasons:
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● Leadership ability
● Other consideration
● Depth integrated case 1
● Lord John Browne and BP’s Global Shift
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How much of an impact do you think BP’s
Question 2 :
marketing efforts will have on shareholder value?
Ans.
The pros and cons of BP’s strategy in Russia, both short-term and long-term:
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e. In 2003, TNK-BP added $105 million to BP’s net income.
Ans.
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● Challenges:
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the America award for Chiquita’s Nuevo San Juan Home-
ownership project in Honduras.
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Consumers affected by Chiquita’s CR program:
a. Integrity
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b. Respect
c. Opportunity
d. Responsibility
Ans. No, I believe Chiquita would not have changed its policies
without the presence of damaging stories in the media.
Chiquita’s old management style was Authoritarian
leadership.
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