Global Management Final Recap
Global Management Final Recap
Hult International Business School
Popular in Global Management
Popular in International Business
This 8 page Study Guide was uploaded by Mischa Rapt on Monday September 28, 2015. The Study Guide belongs to at Hult International Business School taught by David Flood in Spring 2015. Since its upload, it has received 91 views. For similar materials see Global Management in International Business at Hult International Business School.
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Date Created: 09/28/15
Class 2 Globalization and the Global Manager The second class pays careful attention to the importance of globalization in the world nowadays and the in uence of it to the business The following key ideas were covered 1 In order to create an attractive economic environment in a country macrolevel which is represented by government and nonprivate companies should be aligned with microlevel represented by private business This means that the government should create a healthy political environment transparent economy and developed infrastructure 2 Management is about allocation of resources As resources are scares it is essential for managers to allocate them effectively and know exactly where to put them 3 Data itself is useless It is essential to select only relevant data and ask the right questions to provide analysis of a good quality 4 Value is in the product A company should always remember where is the value of its product in order to deliver it to a customer and to get to a customer as close as legally possible 5 Supply chain is the basic frame of reference for management Supply chain is supply driven while value chain is demand driven Both are used to get closer to the customer 6 Applicable tools 0 5 Forces Generic Strategies BCG Growth Curve Marketing Mix Segmentation Positioning and Targeting Some of these concepts have been illustrated in the case Global MultiProducts Chile 0 As a result of the in uence of various macro and micro factors Global MultiProducts has faced internal and external issues which originated by changes in the company s organizational structure 0 The STEEPLE analysis showed that due to long history of political and economic instability in the country Chileans have trust issues which creates friction among employees and does not facilitate team work 0 The value chain analysis reveals that the most relevant departments within the company are technology marketing sales and service to customer post sales The customer centric nature of business aims at the maximizing the net delivered customer value and satisfaction through continuous innovation and investment This forces the company to change its structure in order to satisfy its customers demand for direct distribution channel transition to Justintime delivery and single point of Sales representative 0 The supply chain analysis shows that the key components of the supply chain include manufacturers to retailers to customers or from manufacturers to customers directly 0 Porter s Five Forces suggests that although the company is doing well in terms of gaining a competitive advantage through their diverse and innovative line of products the company needs to be aware of the lack of their bargaining power Their distribution channel is an important factor to consider as that is their opportunity to connect directly to customers as closely as they possibly can in order to reach directly to customers and keep them satisfied In the end Global MultiProducts Chile should provide employee workshops and training to work on team building and trust An introduction of job rotation and creating crosspollinating teams can create employee awareness of different functions of the company which will addvalue to the supply chain of Global MultiProducts Chile to become more customer centric Other recommendations includes to rename and reassign job titles and roles within the company to build employee trust and encourage a healthy competition between employees Since Global MultiProducts understands the value of its products in diversification the company can cater more to customer demand Class 3 Communicating Across Cultures The third class focuses on the importance of alignment of all of the components of the McKinsey 78 Model the ways to manage con icts within the organization and managing crosscultural differences The key ideas 1 The corporate structure within the company should be clear to all its stakeholders There should be set clear channels which will provide timely and efficient communication 2 Each employee has to have full understanding of his responsibilities and liabilities Key Performance Indicators KPI can be a measure of deliverables required from employees 3 There should be a time frame which will set clear deadlines and assure timely development and delivery of the product or service to a customer 4 If structure shared values or any other of 7S Model s components are not aligned with the rest it may cause serious problems for the organization affecting profit and value 5 Applicable tools 0 Map Bridge Integrate Tool McKinsey 78 Key Performance Indicators Synergy mapping Porter s generic strategies The Michael Fernandes at Nicholas Piramal case has illustrated many of the topics mentioned above Michael Fernandes has done an exceptional job in assisting NPIL to develop a new strategy in response to the changes in the Indian pharmaceutical industry During these changes Piramal was acquiring companies that were leaving the industry These acquisitions has made them stronger than other companies and in effect their business structure is based around protecting the Intellectual Property of clients and accommodating them throughout the cradletograve process After developing the new strategy Fernandes was offered the position of the new Executive Director of Custom Manufacturing After the successful completion of the Avecia and Torcan acquisition by NPIL Fernandes faced following issues 0 A dysfunctional top management team as a result of different values and approaches of the managers to the way of doing business Ananth focuses heavily on customer relations Ian does not feel that his contribution is valued by other members of the management team Veronica feels that subordinates do not report to her with full accuracy she thinks that the corporate structure is too hierarchical and needs more autonomy for her division Fernandes does not have the necessary skills and experience for implementing the strategy he recommended as his background is in consulting All of this creates tension misunderstanding and communication problems in the top level of the organization 0 Failing in delivering the value proposition to customers as they do not understand how NPIL differentiates itself There is a problem of communication between business development and their targeted segments 0 Challenges in managing across cultures An implicit adoption of a polycentric approach after NPIL s acquisition based exclusively on national responsiveness without fitting in a global strategy 0 McKinsey 78 Model revealed that shared values style and organizational structure are not aligned with the rest of the components of the model Recommendations for Fernandez includes implementation of organizational restructuring shifting from a polycentric approach to a geocentric approach Fernandez must create an atmosphere that generates trust between employees For the business Fernandez must revise the positioning process in the B2B sector finding a better alternative to better deliver their value proposition offered to their potential customers Similar concepts and issues are present in the Johannes Van Den Bosch case Big Four Firm a multinational Company with office subsidiaries in Rotterdam and Mexico City office The emails exchanged between Johannes Van Den Bosch and Pablo Menendez illustrates the difficulties in communicating across cultures and perceptual differences particularly to time 0 There is no clear accountability and responsibilities The lack of responsiveness and updates from Pablo indicates that communication was not clear and understood by both parties Additionally Johannes limits his dialogue to facts without taking into account the cultural context of the situation 0 There is no time frame Time is the central problem here as the concept of time is different and ambiguous between both subsidiaries The financial statements that were supposed to be due were dated back from 2007 and the emails date close to 2009 There was no report for 2 years which indicates that they were not delivering the product at all and there was no clear deadline 0 When Johannes receives a reply from Pablo the email illustrates a structural and hierarchical issue between both subsidiaries as the Mexican subsidiary was waiting for an approval from local management instead Therefore the organizational structure is not transferring well and it needs to be reorganized in order to meet clients needs 0 According to Hofstede s cultural dimensions Mexico has a high uncertainty avoidance which makes it harder for them to communicate bad issues Perceptual differences especially towards time is clearly evident in this case J ohannes39s way of working differs to the lax culture in Mexico where their approach to timely deadlines are more relaxed 0 Hofstede39s cultural map allows us to understand these cultural differences and adapt our approach to each country in their approach and behavior to working practices Certain cultures may want to hide if there are any errors to quotsave facequot and this may be why there are a lack of updates from Mexico Johannes has to address timely updates from their part as well as approach it from their perspective and help them understand their urgency in timely deadlines and updates This will help to achieve shared values between both subsidiaries by setting a platform by understanding cultural differences by mapping bridging and integrating In order to bridge any cultural differences and communication issues a clear platform and transparent system would need to be set in place A clear KPI in terms of time and money also needs to be implemented as a measure of integration Most importantly the HR department will need to restructure the organization to deliver solutions to clients and provide communication training for the subsidiaries involved Class 4 Organizational Cultural and Structure The fourth class emphasizes on the importance of organizational cultural and framework to assure that an organization can operate smoothly and efficiency 1 A solid structure can help guide an organization to work towards delivering its addedvalue to customers and maximize its profits 2 A margin must exist If there is no margin there is no mission and this can lead an organization to failure 3 People or talent is a great part of what makes an organization valuable and organizational culture accounts for 30 of the bottom line or profit 4 Applicable tools 0 McKinsey s 7s hard skills such as strategy structure systems and soft skills including skills staff style all six factors that form an organizations shared values In the Starlings Systems Case Jack Swain is the newly appointed chief executive officer and is faced with multiple personnel and corporate culture dilemmas 0 Robert Cortez was also a candidate for the CEO position and expressed great interest in the position but was not chosen for the job Cortez represents a potential risk of talent loss as many other companies are offering to recruit Cortez 0 Brian Harmon vice president of sales is considered to be a bully in the workplace as expressed by former employee Lars Christensen Starling39s former senior director of business development Harmon is said to be impatient and the often use of verbal abuse towards subordinates 0 Nance Golden and interim senior vice president was asked to fill in the vacancy of senior vice president of operations Golden is content and full of motivation with her new temporary position however Swain has decided to hire another qualified talent Emily Cheng to fulfill the permanent operations position Swain is faced with a difficult conversation with Golden about the hire of new talent 0 Judith Fenton is an important asset to Starling Systems customer added value as a call operator Being in the late 50s Fenton has amazing call service performance however is clashing with newly hired COO Felicia Shaw Shaw is in her 30s and operates differently than what Fenton is used to Due to discontent Fenton becomes less productive at work and gives Shaw attitude when asked to complete a task in addition to the formation of a clique with other call operators McKinsey39s 7s is the most essential tool when analyzing the Starling Systems case as there shows to be an apparent misalignment between the staff with each other and employees with the organization39s shared values This misalignment is affecting Starling Systems ability to deliver its services Starling takes pride in its quothighly collaborative culture manifested in its positive working environment and team orientated approach to achieving organizational goalsquot and hiring top talent pg2 Harmon39s aggressive behavior and Fenton39s uncooperative attitude is a violation to Starling System39s values Losing talent like Cortez and Golden would also be a violation to the shared values of the company Starling Systems39 key performance indicators KPI are customer satisfaction and number of calls received A misalignment within the staff will great affect the performance in the KPI Jack Swain is faced with a triage in deciding which problems must be address first Form tends to follow structure There is a huge miscommunication between Swain and his employees To build communication there must be trust but must verify confirm and validate each accusations and issues Only when the misalignment is addressed such as by implementation of better communication tools and management can Starlings Systems continue to expand by listening to the demands and needs of its customers Class 6 Strategic Management Leadership and Alignment The sixth class focuses on the importance of global business teams in today39s global business environments and within the team will exist diversity behavior and cognitive 1 These factors often will trigger disagreement and possibly volatility and in order to solve such con icts an ideal way is to develop two solutions one for each opposing sides 2 Another method that can be used is total quality management TQM in which is a managing method to ensure that an organization is working toward developing products or services that tends to customer needs 3 Total quality management is a longterm process which often requires empowerment of employees with rewards and training For example many Japanese companies are devoted to quotkaizenquot the act of continuous improvement and change 4 Empowerment requires accountability 5 Applicable tools 0 McKinsey s 7s In the case of Organizational Alignment Managing Global and Local Integration there was a serious misalignment of organizational values and management For example 0 AERO employees lack serious ethics as one employee stated that it is quotbetter to ask for forgiveness than to ask for permissionquot page 3 0 There is a lack of teamwork within the organization 0 An existence of different corporate culture within the company internally 0 AERO has a decentralized structure with gives the company a competitive edge to cater to different local markets and local needs However due to this decentralization there is an excess of freedom given to global branches which causes a huge lack of accountability and formality 0 There is a lack of transparency as there are suspicious financial statements within AERO 0 With the lack of communication there is an overly loose governance from the Headquarters 0 AERO has no clear identification of roles responsibilities and key performance indicators for its employees Once again McKinsey39s 7s is essential to this case and there is also an obvious misalignment within all seven components of the McKinsey Model Although AERO39s strategy is strong by providing customers with low prices quick customer responses and reliable service the lack of accountability shows the lack of structure within AERO and control must be implemented from management The Controllers sent to each office is an inefficient way in managing transparency and communication between branches and headquarters The staff lacks trainings to company procedures and a bottomup management style has caused an informal network and culture within the organization As the quotfish rots from the head downquot many problems arises from the bottom tends to be the lack of proper management from upper levels Such as lack in accountability and congruency within the company can significantly hurt a company39s brand which is a symbol of value and trust to customers As Aero has branches in different parts of the world such as Germany there also exists cultural differences and these differences are magnified when individuals from different cultural backgrounds are collaborating in the same organization A stronger structure will lead to better profits and the efficient use of diversity can allow organizations such as AERO to be closer to the customers and listen to customers39 needs A recommendation for AERO would most likely be the implementation of a better total quality management from upper management in which the employees must be trained and empower towards a shared company value and goals Class 7 Motivation The seventh class explores the topics regarding sources of motivation and satisfaction and identifying appropriate forms of rewards and recognition 1 The main issue is attempting to maximize the performance of every individual in a team and figuring out how to enable discretionary effort 2 The real value lies in people Psychometric measurements and behavioral techniques suggested by Maslow or Herzberg are used in order to break down and analyze to unleash the value in others 3 Mr Jack Welches in the YouTube video states that the main job for management is to spend time on evaluation and deal with people that needs help This leads to building great teams and rallying others to complete their tasks 4 A video on The Surprising Truth to What Motivates shows that a reward and punishment system is not always idea Work that requires a cognitive skills are not motivated by reward or in the case of the video money 5 People tends to motivated by autonomy ability to complete task independently mastery to be really good at something and purpose maximizers 6 Context is everything Must explore surrounding environments and facts in order to reach a decision 7 The value is in the people 8 Know your product be as specific as possible 9 Applicable tools 0 McKinsey s 7s 0 Key Performance Indicators Many of these concepts are apparent in the Mary Pettingail case Oxford Insurance Services is a small sized company consisting of 5 employees and a differentiated business whereby they work in a niche market operation and it is therefore a higher risk company The nature of the business is highly dependent on customer service and a major KPI for the company are the company s revenues The team is also on their way to the industry conference which is a link to communication 0 It is clear that Mary was not part of this firm from the very start due to her age gap with the firm She is older and experienced and Michael seems to have missed this context when he sent her an inappropriate email regarding her horse riding He brought talent in and commands her back to work which is offensive for someone who is twice his age 0 The communication style is completely at odds with a company especially one that is supposed to be customer service oriented When Michael suggests an autoresponse on everyone s email it is clear that there is a misalignment with the company s product and sales team The autoresponse is not personalized and since this is a client dependent service business customers will switch to another company who will be paying more attention to their business even during holidays 0 Stuart and Michael wrongly identified casual wear days as a source of motivation Comparative ranks with the amount of revenues each broker is bringing in are also on display for everyone by e mail which is also a questionable source of motivation as it can be demotivating for some individuals 0 Oxford Service revenues are seen as a major KPI for the company This focus on numbers can be seen with the comparative ranks displayed with the amount of revenues each broker is bringing in It is not necessary for all KPI s to be quantitative some may be psychometric The lesson from this case is to always truly know your product as there is a clear disconnection between the front office sales and the back office operations sending the right product The question also lies on the measurement of ethics as Mary is hired on the basis of a verbal contract and seduced with a raise and exibility to pursue her passion for horse riding This is also known as a bait and switch scheme Additionally Michael and Stuart did not only identify the wrong problem but also the wrong solution in terms of motivating their employees Class 8 Management and Performance The eighth lesson covers the importance of performance management It can be data or nondata driven and it is a sensitive lever of control as you are managing people which can be challenging 1 Performance needs to be looked at in tangible and intangible ways 2 Management is about something much larger as a whole as you are dealing with an organization At the end of the day an organization is made up of people and therefore emotional factors need to be taken into consideration 3 There are huge differences between an average performance team and a high performance team High performance teams are less attacking more supporting higher percentage in disagreeing and high in seeking information 4 Simon says Tactic is driven by strategy 5 Must use all strategies or arrows in order to hit target 6 Applicable tools 0 McKinsey s 7s In the Dovernet case the management of performance was an issue Dovernet serves a niche industry which is focused on videobased technologies for businesses and consumers To keep up to the company s competitive edge rigid forms of performance measurement systems are used from topdown and bottomup such as quarterly reviews stack ranking and upward feedback surveys The success of the company is highly dependent on differentiation and innovation 0 It is data driven and the measurement of metrics are mainly all about the numbers it only rewards results and disregards effort The system needs to be changed as Dovernet is creating a hire and fire culture which will risk losing potentially talented employees to other competitors 0 A Performance Improvement Plan PIP is implemented It is a legal document to limit risk as it summarized reasons for low rating and provided suggestions for improvement About 60 who received a PIP left the company which is indicative of the fact that pressure limits performance Some people don t like being controlled 0 The effects of stack ranking has forced Raynor to give Wagner a C rating despite his efforts to improve Consequentially this in uences Wagner s feedback on his UFS evaluation of Raynor as it becomes personal These evaluations can become subjective and does not truly re ect an individual s true performance as the rankings would always have to force someone down in the low performance criteria 0 There is a lack of concern towards Gwen s grief management She recently suffered the loss of her brother and is being forced to work and perform well under these circumstances 0 From McKinsey s 7s model the upward and downward forms of feedback and communication causes the organization structure to be at The performance management system and management style is not compatible with the performance of the staff as the pressure implemented by the systems limits their performance The main issue lies in the creative tension of the company and its internal performance The other potential problem are the stretch goals implemented Which are good to a certain extent as it allows potential for creativity On the other hand When stretch goals become overstretched it creates tension and this could result in losing talented staff Measurement systems should create less pressure on individuals to foster a more positive and motivational environment
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