Orientation of MNC

Ethonocentric
Polycentric
Regiocentric
Geocentric

What role does technology play in the orientation of a MNC?

What is the relationship between orientation and strategy?

What are personnel practices you would expect to see under each of these orientations?

What type of marketing would you expect under these circumstances?

View Nike commercials
What do you believe these commercials say about the orientation of the firm?
What else do you know about Nike that would give you keys about the firm orientation?

Figure 5-1 shows how Trompenaar's Dimensions are reflected in advertising.
Do the Nike commercials fit this model? How? Why?

Cultural levels

Personal Culture -
individual traits, skills, personality set in ethnic, racial, familial, education, environment.

National Culture -
Common understanding expressed in beliefs, values, attitudes and behaviors.

Corporate Culture -
Institutional beliefs and values often expressed in vision, mission, and value statements.


Ougadou Paradox

Contrasting Commercials

Cultural Variations

Questions to ask:

What is the nature of people?
Good, Mix, Evil
What is the person's relationship to nature?
Dominant, In harmony with nature, Subjugation
What is the person's relationship to other people?
Lineal, Collateral, Individualist
What is the modality of human activity?
Doing, Being and becoming, Being
What is the temporal focus of human activity?
Future, Present, Past
What is the conception of space?
Private, Mixed, Public

Proverbs

One palm makes no applause.
A single tree makes no forest; one string makes no music.
Giving convenience to others is to give it to yourself.
A flying moth throws itself into a fire.
A friend made is a road paved; an enemy created is a wall built.
A chat with a friend is worth ten years of schooling.
Don’t hit one on the face; don’t grab one’s bowl at dinner.


A turnip cooked hastily may still have soil residue.
Honing the hatchet will not delay woodcutting.
More haste, less speed.
A deliberate inaction is better than a blind action
A man’s heart is indiscernible behind his chest.
A mantis stalking a cicada is unaware of an oriole behind it.
When drawing water from a well, never forget the well diggers.
A smile may conceal a dagger.
A flower deliberately grown may not bloom; but a sapling planted accidently may grow into a tree.

Yuan, Haiwang (2006) The Magic Lotus Lantern and Other Tales from the Han Chinese. Libraries Unlimted: Westport, Conn.

Hessler, P. (2006). Oracle Bones. Harper Collins Publishers: NY.

Dumplings

Culture

Luthans & Doh – culture is acquired knowledge that people use to interpret experience and generate social behavior.






How does your picture or proverb tell about the country's culture?



What are the characteristics of culture? - Luthans & Doh
1.
2.
3.
4.
5.
6.

Role of Culture in IM.

Luthans & Doh contend that learning about culture is important to the study of international management at the individual level. In other words understanding the culture will inform interactions you have with individuals in that culture. The story in the text about Chinese business problem would demonstrate this view.

Others suggest that culture is a group level descriptor and should not be used as a basis for prescribing how to deal with individuals. For example just because someone is from a collectivist culture we can’t assume they won’t be motivated by individual rewards. The contention of this view is we are promoting stereotypes based on culture.

Question: Are all Americans focused on individual over group goals?


Management approaches affected by culture Luthans & Doh

Can you come up with an example of how each of these approaches would be reflected in specific situations encountered by managers?

• Centralized vs. decentralized decision making
• Safety vs. risk
• Individual vs. group rewards
• Informal vs. formal procedures
• High vs. low organizational loyalty
• Cooperation vs competition
• Short-term vs. long-term horizons
• Stability vs. innovation

Ethics and Corporate Responsibility

Ethics - study of morality and standards of conduct

Ethical organization
Ethical Leaders
Ethical Individuals
Organizational Processes and Structures

Questions for you to consider
What is your ethical statement?
What is your line in the sand?
What are you not willing to accept?
How can you take time to stop and think about your actions?
Do you believe individuals can make a difference?



Do CEO’s need ethical statement?



Employment and Business Practices
Human Rights

• Child Labor

Corruption



Is ethical capitalism possible?




Institute for Global ethics

Carnegie Council

Business and Human Rights Resource Center - Use this site to check for Human Rights and other violations in the country you are studying.

Company Statement on Human Rights


Corruption

Classes in Indonesia

Transparency International


Corporate Social Responsibility - Actions to benefit society beyond the requirements of the law and direct interests of the firm.

Corporate Social Responsibility Wire


Davos Videos

Corporate Social Responsibility




Millennium goals