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Zoheb Shaik, Brian Hamilton, & Julian Gutierrez Image source : http://www.worldatlas.com/webimage/flags/countrys/zzzflags/salarge.gif Saudi Arabia Nation struggling with tradition and modernity Modernized country Encouraging tourism Mutaween – The religious police Severe punishments 67% of the workforce are foreigners More then half the population is under 20 Private sector accounts for 45% of the growth History Saudi became a nation in 1932 Ibn Saud crowns himself as the king of Saudi Arabia One of the poorest nation then Oil discovered in 1938 Remained isolated until 1970s Known to have the second largest oil reserves Geography Map source: http://geology.com/world/saudi-arabia-map.gif Geography Land mass is about 24% of United States Desert landscape with three major deserts Shallow sea several million years ago A grassy savanna about 18,000 ago Dry river valleys called Wadis Temperatures range between 90°F to 120°F Frequent sandstorms Desert Bedouins Desert dwellers Live in extended family groups Nomadic life Raise and sell camels Camps consists of 2-10 tents Move during seasons Camel raiding – a traditional pursuit Characteristics of a Desert Bedouins They are generous Entertain guests with poems and storytelling Loyalty towards extended family Strengthening ties by consanguineous marriage Lavish lifestyle Casual friends are treated well Believe in Fate “Being” is more important than “doing” Lifestyle of Desert Bedouins Bedouins Lifestyle Forces of Progress Camels have become more expensive to own Bedouins are taking permanent jobs Using conveniences Lands taken over due to modernization The government wants them settled Jewelry as Wealth Made of silver Women get them are dowry Purchased from artisans or silversmiths Jewelry jaded with stones Progress threatening their popularity Gold is now more preferred Westerners are keeping it alive Bedouin Jewelry Image source: http://img2.photographersdirect.com/img/95/wm/pd422708.jpg Image source: http://www.bedouinsilver.com/wp-content/uploads/2009/09/kabyle-222x300.jpg Language Speak Arabic Take pride in their language Encourages repetition and exaggeration Poets are held in high esteem Grace and fluency of words count more Privacy in public No sense of privacy in public place Not bothered by noise in a public place Don’t invade enemy territories Loneliness is the closest thing to privacy See each other often Score low on gender equality Family and Honor Highly importance on honor Do forbidden things outside the country Marriages partners are chosen by elders Take place before the age of 20 Large dowries are collected Female ownership Jewelry is melted upon a woman’s death Many don’t see as repressed but as protected Most feel satisfied with the current system Wear the long black abaya and veil A fifth of Saudi workforce is women Life in Saudi Life In Saudi 1 Life in Saudi 2 The Japanese Garden Japan’s History in 8 Minutes!! Japan's History Vital Statistics Government: Parliamentary with constitutional monarchy Prime Minister: Yoshihiko Noda (elected Aug 2011) Capital: Tokyo Population: 127,078,679 (July 2009 est.) Population Growth Rate: -0.191% (2009 est.), World Rank: 219th GDP: 4.34 Trillion (2008) Electric Power Generation: Conventional thermal (coal, oil, natural gas) 60%, Nuclear 29%, Hydroelectric 9%, Renewables 2% Industries: Consumer electronics, motor vehicles, machine tools, steel, and nonferrous metals Exports: Motor vehicles, semiconductors, and office machinery Agriculture: Rice, sugar beets, vegetables, fruit, pork, fish Currency: Yen Life Expectancy: Average: 82, Male: 78.8, Female: 85.6 GDP per Capita: $33,800 Literacy Rate: 99% Unemployment Rate: 4% Oil imports: 5.425 million bbl/day Internet Users: 87.5 million Environmental Issues: Deforestation, Overfishing, Pollution Corporate Culture The Japanese term "hourensou" refers to important attributes that are said to characterize collaboration and information flow within effective Japanese corporate culture. "Genchi genbutsu" refers to "getting your hands dirty", to identify or solve immediate problems and leaders are not exempt from this. Aspects of these principles are often mistaken by western managers for the type of micromanagement that is constant and unprincipled and interferes with processes. In contrast, these principles are used as tools to shepherd processes. Thai History Quick Video history of Thai Kingdom History of Thai Kingdom Thai’s History Over 64 million population Borders Laos, Burma, Malaysia, and Cambodia Bangkok (Capital, one of largest cities in world) Sinking due to climate change Completely inundated by 2050? Sinking 2 inches per year Bangkok Sinking Thai Kingdom Statistics Government: Constitutional monarchy under a parliamentary democratic system Prime Minister: Yingluck Shinawatra Capital: Bangkok Population:66,720,153 (est. 2011) GDP: $586.877 Billion (24th) Top Energy Sources: Conventional Thermal (91.43%), Hydroelectricity (8.56%), and Biomass and Waste (0.01%) Industries: Agriculture, Automobiles & Automotive Parts, Textiles & Garments, Tungsten, and Tin Second Largest Tungsten Producer Third Largest Tin Producer Exports: Textiles, Automobiles, Fishery Products, Rice, Rubber, Jewelry, Computer and Electrical Products Agriculture: Rice, Fish, Tapioca, Grain, and Sugar Currency: Baht Life Expectancy: 69 (Male), 75 (Female) GDP per Capita: $5,281 Literacy Rate: 93% Unemployment Rate: 0.7% (2011) Oil imports: 807,100 bbl/day Internet Users: 18.3 million (2009) Environmental Issues: Deforestation, Overfishing, Air & Water Pollution Thai Kingdom Loose Vertical Heirarchy Authority Ranking Culture Vertical Collectivism Paternalistic Kreng cai Similar to Japan’s amae Military is important Generals have business interests Thai Kingdom Personal & Family Interaction Wai Greetings in Thai Thai Kingdom Family Interaction Family Businesses Family hierarchy Must do as instructed by vertically ranking family members Thai Kingdom Education Buddhist monks were professors for decades Lectures MBA education in Thailand Western-style case discussion Thai Kingdom Ethnic relations Loose rules 80% Ethnic Thais 10% Ethnic Chinese High-rate of interracial marriage Thai Kingdom Freedom & Equality Thailand means “land of freedom” Only nation in Southeast Asia never to be conquered 1700s war with Burma Counterattack Taksin became leader and established capital in Bangkok Thai Kingdom Impact of Buddhism The Middle Way Keeping emotions and body movements under control Karma One’s actions lead to consequences The Gardens Tsukiyama (Wet/Landscape garden) Karesanusi (Dry/Religious garden) Japan/Chinese Relations A little History The Elder Adviser Senpai (先輩?) and kōhai (後輩?) are an essential element of Japanese seniority-based status relationships, similar to the way that family and other relationships are decided based on age. Senpai is roughly equivalent to the western concept of mentor, while kōhai is roughly equivalent to protégé. Relationship between managers and workers Bushido Importance of the Group Responsibility to the Group An example of how complicated it can be....... Japanese Business Etiquitte and Cultural Manners Private Lives Under the Calm Exterior Establishing Status Race and Class Competition Its not all serious all the time however….. Japanese Gameshows Worksteps Assembling the global team Defining the business Identifying key markets Identifying key competitors Checking the core strategy Checking the country selection Diagnosing industry globalization potential Evaluating current and potential use of global strategy levers Evaluating organization capability Developing global programs Assembling The Global Team Ideal member pool: Head of the worldwide business Senior representatives from business Senior executives Heads of major regions/countries Heads of key funtions Defining the Business Business definition is an important issue because a global strategy analysis is often more effective by starting out with a piece of the business rather than with the entire business. Identifying Key Markets Identifying Key Competitors All global competitors The largest competitors based on region Potential competitors References http://www.facts-about-japan.com/ http://en.wikipedia.org/wiki/Japanese_management_cultu re http://www.europeword.com/blog/europe/rough-euroexchange-rates/ http://customwrittenbusinessplans.com/ http://heatherbrewer.com/blog/2011/02/22/a-brief-updateon-our-world-domination-goals/ http://www.china-defense-mashup.com/ties-and-tensionsbetween-china-and-japan-factbox.html http://en.wikipedia.org/wiki/Japanese_garden Checking Core Strategy Identify the core business strategy Make core strategy explicit Choose an inimitable strategy statement Statement should include Business definition Strategic thrust Financial targets Sources of competitive advantage Strategy element Value-adding activities Competitive strategy Checking Country Selection Factors determining country selection Stand-alone attractiveness Global strategic importance Synergy Country Evaluation using following steps Identify country/regions Develop list of subfactors Assign weights to each subfactor Rate each country/region on each subfactor Combine the subfactor weights and country ratings Adjust for country risk Using the ratings List of Subfactors Stand-alone attractiveness of the country Size of market Growth rate of market Barriers to entry Competitive situation Price levels Tax rates Macroeconomic conditions Political risk Cost of adaptation Global importance of country/region Home market of the global customers Home market of the global competitors Significant market of global competitors Major source of industry innovation Home of most demanding customers Synergy with other businesses in country/region Shares activities with other company businesses Uses upstream capacity (e.g., raw material) Uses downstream capacity (e.g., final assembly or distribution) Proximity to other markets Diagnosing Industry Globalization Potential Through group discussions Identify the global driving opportunities Evaluating Current & Potential Use of Global Strategy Levers Global Strategy Levers Participation in Major Market (3) Product Standardization Location Value-added Activities Integrated Competitive Activity Utilization of Human Resources Global Branding (1) Financial Assistance/Arbitrage (2) Global Procurement Uniform Marketing Strategy Evaluating Organization Capability Organization Capability Anything an organization does well that drives meaningful results Majority of companies don’t focus on one particularly Project Management Talent Management Lean Operations Developing Global Programs Globally distributed design, marketing, manufacturing, sales, and logistics activities Managers should collaborate virtually and globally Leading international teams Expertise from all corners of the world When to use Global Programs Streamlining global supply chain Launching product or service in new market Acquiring and integrating operations of foreign competitor Implementing performance improvement initiative across global operations Consolidating technology infrastructure and data centers Implementing new EPR system across various regions Extended Product Responsibility Appendix 1 Appendix 2 Appendix 3 Appendix 4