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Additional Internet Sites:. http://embassy.org http://www.census.gov/foreign-trade/reference/codes/index.html http://www.trade.gov/td/tic/tariff/country_sites.htm http://www.commercenetindia.com/ http://faccparisfrance.com/them/5leg.htm
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Additional Internet Sites: • http://embassy.org • http://www.census.gov/foreign-trade/reference/codes/index.html • http://www.trade.gov/td/tic/tariff/country_sites.htm • http://www.commercenetindia.com/ • http://faccparisfrance.com/them/5leg.htm • http://www.iworldtradelink.com/internationaltradesites.html • http://www.wcoomd.org/ie/En/CustomsWebSites/customswebsites.html • http://www.buyusa.gov/home/ • http://www.trade.gov/td/tic/tariff/country_sites.htm
HON Industries Information • Office Chairs (import) 9401.30.8030 • Swivel seats with variable height adjustment, made with metal frames
HON Industries Information • Office Chairs (import) 9401.30.8030 • Swivel seats with variable height adjustment, made with metal frames • Chair Swivel Bases (Import) 9401.90.5080 • Parts of seats made with metal
HON Industries Information • Office Chairs (import) 9401.30.8030 • Swivel seats with variable height adjustment, made with metal frames • Chair Swivel Bases (Import) 9401.90.5080 • Parts of seats made with metal • File Cabinets (Export or Import) 9403.10.0020 • Service – Call Center: • If completed part is imported, value must be added. (dutiable at the same HTS). If not, no HTS code / no duty.
Mgt 470CHAPTER 6 MANAGING ACROSS CULTURES
Additional Internet Sites: • http://www.trade.gov/td/tic/tariff/country_sites.htm • Identifies most tariff by country / region • http://www.infoprod.co.il/country/saudia2f.htm • Information on Middle East • http://www.intracen.org/index.htm • International Trade Center (with Country Information)
Footwear International Case • Which cultural dimensions (of those that we’ve touched on or read about in class) are relevant in considering the product of shoes in the market of Bangladesh? Why? • What was the first indication of a possible problem? • Who is responsible? Why? • What should John Carlson have done, when, and why? • What is the common thread between the IKEA, Disney and Footwear case studies (cite specific examples to support at least three commonalities)
Fundamental factors in designing Organizations ‚Underlying values T Objectives ‚Structure T Number of jobs T Methods of communication T Relationships ‚Planning and control(s) T Planning, measurement, evaluation schemes ‚Compensation / reward system T Pay philosophy, promotions, raises, bonuses, etc. ‚Workforce selection T Criteria for selection at different levels ‚Training, technological adaptation ‚Utilization of external “expertise”
Strategies for Managing Across Cultures • 3 Central Management issues when considering going global: • Organizational Structure • Authority / Autonomy • Reporting relationships • Planning, Measurement, Control schemes • Standardization / Adaptation
Strategies for Managing Across Cultures • Globalization - the production and distribution of products and services of a homogeneous type and quality on a worldwide basis • National responsiveness- the need to understand the different consumer tastes in segmented regional markets
Strategies for Managing Across Cultures • Globalization - National responsiveness • Why is this an issue?
Strategies for Managing Across Cultures • Cultural differences making a difference
Strategies for Managing Across Cultures • Cultural differences making a difference • 6 Basic cultural variations • People’s Nature • Relationship to nature • Relationship to other people • Modality of human activity • Temporal focus on human activity • Conception of space
Strategies for Managing Across Cultures • Cultural differences making a difference • How they view time • The collectivist / individualistic dimension • Power Distance (also shows in language) • Attitude towards affection • Nature of business conversations • Negotiating styles • Protocol for meetings (whether business or personal) • Eating behaviors • Dress / appearance
Strategies for Managing Across Cultures • Why are MNCs committed to a “globalization imperative?”
Strategies for Managing Across Cultures • Why develop unique strategies?
Strategies for Managing Across Cultures • Why develop unique strategies? • Diversity of worldwide standards • Cell phones, Televisions, Household appliances • Continued demand by customers for differentiated products • Importance of being perceived to be an "insider” • US Toyota • Difficulty of managing global operations • Issues of decentralization • Allow subsidiaries to use talants & abilities • Prevent "headquarters" from being a constraint
Globalization Vs. National Responsiveness Matrix National Responsiveness High Low High globalization Mixed Low Mixed National Responsiveness Globalization
Strategies for Managing Across Cultures • Globalization paradox • Impossibility of conducting business “one-way” • “Secret Hope” • Transportability of successful strategies & procedures • There are more cultural differences than similarities
Barriers to Effective Cross-Cultural Management • Parochialism-the tendency to view the world through one’s eyes and perspectives • Simplification-the process of exhibiting the same orientation toward different cultural groups
High Context long lasting relationships implicit communication loyalty to people of authority spoken agreements outsiders do not gain entry easily JAPAN Low Context relationships are short in duration explicit communication authority is diffused written agreements ousiders are encouraged to join inner circle U.S. High Vs. Low Context Cultures
General Similarities Across Cultures • Managerial behaviors in Russia • communication • HRM • traditional management • networking • Application of O.B. Mod. in Russia • Organizational commitment in Korea
General Differences Across Cultures • HRM activities • labor laws • wages • vacation time • maternity leave • compensation • group Vs. individual incentives
Doing Business in China • Emphasis on trust and mutual connections • Meetings start with small talk • Host indicates when meetings begin and end • Slow in forming a an action plan, but stick with decisions once made • Reciprocity is important • Negotiations are often carried out through intermediaries to reduce the risk of losing face
Doing Business in India • Punctuality is important • No personal questions • Titles are important • No public displays of affection • Beckoning done with the palm turned down • When eating or accepting things, use the right hand- the left is considered unclean • The namaste gesture can be used to greet people • Bargaining for goods and services is common
Doing Business in Russia • Build personal relationships with partners • Use local consultants • Consider business ethics • Be patient • Stress exclusivity • Face to face communication is expected • Keep financial information personal • Research the company • Stress mutual gain • Clarify terminology
Doing Business in France • Use a quick hand shake with some pressure in the grip • Punctuality is extremely important • During a meal, small talk is acceptable, but personal questions and the subject of money are never brought up • Great importance is placed on neatness and taste
Doing Business in Arab Countries{Http://arab.net/} • Never display feelings of superiority • Do not take credit for joint efforts • Efforts to sidestep red tape can be regarded as disrespect for legal and government institutions • Connections are extremely important • Patience is critical to business transactions
HON Industries • What is at least ONE reason that HON is / or may be interested in conducting business in {your researched country}
HON Industries • What is at least ONE reason that HON is / or may be interested in conducting business in {your researched country} • Cost of Materials? • Quality of Materials? • Cost of Labor? • Quality of Labor? • Access to Natural Resources • Access to other resources? • Access to an available market?