Cross Cultural Management Cases Studies CCM Management Lecture

Cross- Cultural Management Cases Studies CCM Management Lecture IBU 5011 – Course MBA Hochschule Pforzheim March 2015

Case Studies Overview • HBR Case Studies: L'Oreal Masters Multiculturalism; The Universalization of L’Oreal n n n As the cosmetics company L'Oreal has transformed itself from a very French business into a global leader, it has grappled with the tension that's at the heart of every global enterprise: Achieving economies of scale and scope requires some uniformity and integration of activities across markets L'Oreal managers have gained familiarity with the norms and behaviors of multiple cultures and can switch easily among them. Subjects covered: n Ø Cross cultural literacy; Cross cultural relations; Executive selection; Multinational corporations; Product development Case Study Approach: Ø Ø Ø Individual study of the two cases Identify major reasons for success Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 2

Case Studies Overview • HBR Case Studies: Microsoft: New Wine in an Old Bottle? n n n Within four weeks of becoming the new CEO of Microsoft, Satya Nadella lays out the major challenges that await him in the two letters he sends to everyone at Microsoft. He defines Microsoft's battlefield as the "mobile-first and cloud-first world". That is where Microsoft needs to get its products and technology right, to build platforms and ecosystems and to integrate Nokia devices, services and the new mobile capabilities. The case provides context for students to apply management theory and know-how to: appreciate the pinch points in making successful organizational transformation, examine the reasons that contribute to Microsoft's inertia, and discuss key factors that will affect the successful integration of Nokia with Microsoft Subjects covered: n Ø Business models; Business policy; Change management; Computer software; Cross functional management; General management; Growth strategy; Leadership; Organizational development; Planning; Service management; Strategy Case Study Approach: Ø Ø Ø Individual study of the two cases Identify major reasons for CCM Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 3

Case Studies Overview • ICMR Case Studies: Louis V Gerstner - The Man Who Turned IBM Around n n n The case examines in detail the way in which Louis V. Gerstner transformed one of the most admired companies in the US - IBM, from a loss-making one to a market leader. The case further examines the leadership qualities of Gerstner which contributed to this transformation. It also gives an account of Gerstner's past experiences, and how he learned from those experiences. Subjects Covered: n Ø Leadership in a corporate environment, and changing business culture through design Case Study Approach: Ø Ø Ø Individual study of the two cases Identify major reasons for the successful turnaround Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 4

Case Studies Overview • HBR Case Studies: Levendary Cafe: The China Challenge n n 1. To explore the important international strategic issue of standardization versus adaptation, and examine the structures, systems, and processes needed to manage this tension. 2. To review the evolving roles and responsibilities of country subsidiary management and the corresponding changes in the nature of the headquarters-subsidiary relationship. 3. To examine the nature of headquarterssubsidiary controls, by differentiating between administrative control, strategic control, and operating control, and allowing students to explore the need for and appropriateness of each mode The teaching objectives for this case are: n n Ø Cross cultural relations; Entrepreneurship; Foreign subsidiaries; General managers; Globalization; International management; Management styles; Multinational corporations; Product adaptation; Relationships; Retail; Strategic planning; Strategy This case is accompanied by a Video Short that can be shown in class Case Study Approach: Ø Ø Ø Individual study Identify major reasons for the success Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 5

Case Studies Overview • HBR Case Studies: Pepsi. Co, Profits, and Food: The Belt Tightens n n n The case describes the issues facing Indra Nooyi after five years of Pepsi. Co's new and controversial nutrition strategy To help students understand the strategic and management challenges leaders face when they and their companies take on important social and economic responsibilities and have to think and act, over several years, in strategic, financial, pragmatic, and political terms The teaching objectives for this case are: n Ø Business ethics; Codes of business ethics; Execution; Food assistance; Leadership; Social Security; Strategy; Western leadership styles Case Study Approach: Ø Ø Ø Individual study Identify major reasons for the success Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 6

Case Studies Overview • HBR Case Studies: United Cereal: Lora Brill's Eurobrand Challenge n n 1. To review the process of balancing efficiency of cross-border integration with the responsiveness required by national differences in developing global product strategy. 2. To explore the organizational implications of global strategic choices, including the implications for the assignment of roles and responsibilities to managers. 3. To examine the behavioral as well as strategic issues involved in a multinational new product launch when management must take various country preferences into account. 4. To expose students to the increasingly important role of country-level operations in developing and diffusing global innovations The teaching objectives for this case are: n n Ø Cross cultural relations; General management; International R&D; Market entry; Marketing strategy; Multinational corporations; Organizational design; Organizational structure; Retail; Strategy; Subsidiaries This case is accompanied by a Video Short that can be shown in class Case Study Approach: Ø Ø Ø Individual study Identify major reasons for the success Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 7

Case Studies Overview • HBR Case Studies: Transitions Asia: Managing Across Cultures n n Ø The director of an interim executive search firm, Chee Lung Tham, faced a clash of culture and management styles when his mainland Chinese client threatened to fire the American interim manager that Tham had assigned. Subjects Covered: n Conflict; Conflict management; Family businesses; Management styles; Organizational behavior; Service management Case Study Approach: Ø Ø Individual study of the two cases Identify major reasons for the success in project management Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 8

Case Studies Overview • HBR Case Studies: Henkel: Building a Winning Culture n n n Ø This case illustrates a CEO-led organizational transformation driven by stretch goals, performance measurement, and accountability. When Kasper Rorsted became CEO of Henkel, a Germany-based producer of personal care, laundry, and adhesives products, in 2008, he was determined to transform a corporate culture of "good enough" into one singularly focused on winning in a competitive marketplace. Subjects Covered: n Cross functional management; Demand measurement; Employee benefits; Execution; Executive compensation; Human resource management; International human resources; Organizational culture; Organizational transformations; Organizational values; Pay for performance; Performance appraisals; Performance measurement; Social responsibility; Transformations; Valuation; Values; Work life balance This case is accompanied by a Video Short that can be shown in class Case Study Approach: Ø Ø Ø Individual study of the two cases Identify major reasons for the disaster Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 9

Case Studies Overview • HBR Case Studies: One Firm One Future at Davis Langdon n Senior Partner Rob Smith just led construction consultancy firm Davis Langdon through a major organizational change in Europe and the Middle East. In the past, compensation arrangements had not incentivized partners to collaborate across the firm to serve clients' increasingly global and complex needs. In 2007, under Smith's leadership, the partnership agreed to implement holistic change. The case describes how: To consider issues professional service firms face, particularly leading a partnership through organizational change, partner compensation, shifting to a sector structure, and global expansion Subjects Covered: n n Ø Change management; Compensation; Cross cultural relations; Expansion; Leadership; Managing people; Organizational change; Vision This case is accompanied by a Video Short that can be shown in class Case Study Approach: Ø Ø Ø Individual study of the case Identify major reasons Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 10

Case Studies Overview • HBR Case Studies: Applied Research Technologies, Inc. : Global Innovation's Challenges n n 1. To understand best practices in creating a culture of institutionalized entrepreneurship. The students are asked to consider the structures, systems, cultures, and management practices that allow for global innovation. 2. To explore the roles and responsibilities of managers at different levels in an organization dedicated to continuous self-renewal. 3. To examine the principle that empowerment is effective if it is framed by a behavioral context based on self-discipline and support. 4. To address potential communication barriers and cultural issues associated with international project management. Subjects Covered: n n Ø Competitive advantage; Corporate strategy; Cross cultural relations; Delegation; Entrepreneurship; International business; Management styles; Managing creativity & innovation; Organizational behavior; Organizational culture; Project management; Reputations; Teams; Technology This case is accompanied by a Video Short that can be shown in class Case Study Approach: Ø Ø Individual study of the case Identify major reasons Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 11

Case Studies Overview • HBR Case Studies: Nissan Motor Co. Ltd. — 2002 and HR Restructering 2011 n n n Carlos Ghosn became the COO of Nissan Motor Co. , a troubled auto company in Japan when Renault bought 38% of the company in 1999. This case deals with how Ghosn turned the company around. Examines in considerable detail how he went about successfully energizing and mobilizing the demoralized employees after a decade of failed efforts. Ghosn has to deal with Japanese culture at Nissan as well as French etiquettes at Renault, while achieving synergies with their partnerships. At the same time, the challenges for the two automakers were equally high with the global automobile industry in a downturn and product and market expansions underway at both the companies. n n Ø (1) The case details the leadership style of Carlos Ghosn at Nissan, highlighting how he dealt with the cultural differences he faced at the company and implemented stringent cost-cutting to recover from debt and losses. (2) Understand various issues and concepts in change management, organizational restructuring and talent management; Case Study Approach: Ø Ø Ø Individual study of the two cases Identify major reasons skills in cross-cultural management of Goshn Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 12

Case Studies Overview • HBR Case Studies: Is Sony Turning Around? n n n SONY lost its leadership position in many product lines in which it was operating. Analysts attributed this to the silo culture prevailing in the organisation. Each of the departments functioned like different fiefdoms, hardly co-operating with each other, even when it was necessary. Moreover, Sony's growing complacency led to its failing to recognise the growing popularity of new technologies and digital products and the company choosing to stick to its proprietary formats. 1. To learn the role of SWOT (strength, weakness, opportunity and threat) analysis in the restructuring process. 2. To understand the rationale behind restructuring and the potential risks of frequent restructuring. 3. To identify the differences between Japanese and US workplace cultures and the implications of those differences during restructuring initiatives. 4. To explore ways to resolve internal resistance. Subjects covered: n Ø Change management; Leadership; Organizational behavior; Resistance; Restructuring; Turnarounds Case Study Approach: Ø Ø Individual study of the two cases Internet research Preparation of a PP-presentation Presentation of results 35 minutes plus 10 minutes discussion 13