Discuss your own understanding of what the cultural economic model is about. Include a citation for the definition from another source. Then include your own interpretation of this term.
How can this model promote the elements of public relations as a discursive process that respects diversity and does not privilege any one group? Review Chapter 9 of International Public Relations: Negotiating Culture, Identity, and Power.
For all discussion posts, back up your writing with terms and concepts from class readings. Remember, these same terms and concepts can be used in your Critical Thinking assignments and in the Portfolio Project, so use the discussion area as a place to practice applying terms and concepts to the situations being addressed
San Diego State University The Cultural Economic Model Discussion
The next step for Dr. Bueller is to help him compare stocks and make good investment decisions. With that in mind, you want to compare Industrial Company #1 with its top rival Industrial Company #2 and explain to Dr. Bueller which one would make a better investment.In preparation for sharing your thoughts with Dr. Bueller, go to the Small Group Discussion Board and divide the following calculations evenly among group members. Each group member will be responsible for submitting his or her assigned calculations.Operating income marginNet income marginCurrent ratioEarnings per sharePrice-to-earnings (P/E) ratio.Industrial Company #1(in millions)200820092010Sales$4,250$4,500$4,750Operating Income$400$445$480Net Income$200$225$250Current Assets$2,500$2,750$2,850Current Liabilities$2,300$2,450$2,500Shares Outstanding100100100Average Stock Price$32$39$50Industrial Company #2(in millions)200820092010Sales$3,350$3,750$4,250Operating Income$335$395$470Net Income$168$198$240Current Assets$1,750$1,900$2,100Current Liabilities$1,350$1,400$1,500Shares Outstanding808080Av Stock Price$38$46$622010 Industry Avg.Operating Margin10.50%Net Margin5.50%Current Ratio1.25Earnings/Share$2.75PE Ratio20.0
Group Project Guidelines perform the calculations of the following values for both Industrial Company #1 and Industrial Company #2 using the information from the data tables located in the Assignment Description:Operating income marginNet income marginCurrent ratioEarnings per sharePrice-to-earnings (P/E) ratios organize calculations in an Excel spreadsheet Compare his or her calculations for both Industrial Company #1 and Industrial Company #2.Compare the company calculation values to the industry averages.In your own words, explain the significance of each calculation.write 3 pages (body of paper), in a Word document, about which company is a better investment
Compare stocks and make good investment decisions
Unit 5: The FutureReview and reflect on the knowledge you have gained from this course. Based on your review and reflection, write at least 500-600 (3) paragraphs on the following below. The main post should include at least 2 references to research sources, and all sources should be cited using APA format.What were the most compelling topics learned in this course? How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified? What approaches could have yielded additional valuable information? Note: This is an online environment
BHVS 316 Colorado Technical University Online Psychology and Mass Media Discussion
Ethical leadership is certainly a hot topic in today’s business environment. In this assignment, you will examine the role of ethics in being a successful leader. You will explore current media coverage on ethical or unethical leadership practices and examine the issues and responsibilities of the leader(s).Research the issue of ethics in leadership using your textbook, the Argosy University online library resources, and the Internet. You can use the following terms for your search: “News Story Ethics” or “News Story Ethics Business.”Select a news story for study in this assignment and complete the following:Summarize the case and describe the issues. Be sure to provide a reference for the article.Respond to the following:What do you believe caused the issue?What do you believe the leader’s responsibility is when it comes to ethics in a situation such as this?Give reasons in support of your assertions.Write your initial response in 1–2 paragraphs. Apply APA standards to citation of sources.
Ethics in Leadership
Functional And Dysfunctional Conflict Commerce Essay
Conflict is a disagreement between one or more parties in the situations that they faced. There have two types of conflict which is functional conflict to bring good benefit to the organizations and dysfunctional conflict is to bring disadvantages to the organizations between people. Therefore, levels of conflict divided into four categories such as interpersonal conflicts, intrapersonal conflict, intergroup conflict and interorganizational conflicts. Instead, Thomas-Kilmann Conflict Mode Instrument (TKI) is to resolve the conflict issues in various methods to cooperative and non-cooperative situations such as competing, avoiding, collaborating, compromising, and accommodating. Organizational change management is to moving the organizational change to another by providing Kurt Lewin Modes of three processes are unfreeze, change, and refreezing. Organizational culture divided into Handy’s four dimensions of organizational cultures, are role culture, task culture, power culture, and person culture. However, there will also discussion about the relationship of culture and conflict and relationship of change and conflict to understand and learning more about the conflict impact with. Negotiations divided into two categories, are integrative negotiations and distributive negotiations. 1.0 Introduction Conflict is a disagreement through which the parties involved perceive a threat to their needs, interests or concerns. Conflict is between two or more parties in the situations that they facing with, such as different in idea and different in knowledge of way thinking and misunderstanding. Negotiations can be known as discussion, is to consult the issues with communication. Negotiations are a method to resolve the conflict when it occurred. Negotiation is two or more parties to resolve the result of difference, gain knowledge in outcome of discuss, understanding, invent, creative, and evaluate the outcome when in the negotiate process. Culture occurs everywhere which includes individual, family, friends, state and all around the world. It can consider as value, belief knowledge, art, law, morals, custom, habit and behavior which influence to everyone in the society. Culture is the full range of learned human behavior patterns through every individual. 2.0 Literature review Mostly, people also do not like to change their situations which they always need a great environment and freedom. However, the environment and knowledge are always changing continuously. So, these will influence change in individual and organization which also includes ability change and income change. When in a group or team work together, there will be occur some different concept or acknowledge between team members. As the result, these will conflicts of outcome between them. Conflict is a process that one party believes that the other party will bring the negative impact to what first party concerned about. Conflict will occurs when both parties are not consistently, incorporative, disunity between in social entities. In the traditional view on conflict, the people take it as will harmful to them and must be avoided. This is caused by the parties in poor communication, lack of trust, or failure to be responsible to the needs of others. There are also when the conflict occur in some conditions will included, such as overestimated their parent organizations and underestimate other organizations, distorted cognitive, and intensify the bad situations. In the interactions view, people belief that conflict can bring good outcome and improve performances from the social entities. So, they can increase their knowledge and acknowledge when they learn to live with it. 2.1 Functional and dysfunctional conflict Functional conflict is people in an organization or group may have their performance which they can increase and advantages in issues. Functional conflict can lead to enhances awareness of issues which people willing to solving the problem and willing to listen to others opinion. Dysfunctional conflict is people who in an organization or group may have decreases or disadvantages in result of outcome they gain which they negotiate in the process. It consists of disputes and disagreements of individuals discourage to improve company performances. 2.2 Levels of conflict In this stage, there have four categories levels of conflict, are intrapersonal conflict, interpersonal conflict, intergroup conflict and interorganizational conflict. Intrapersonal conflict is individual conflict by oneself. The conflict can develop with own thoughts, ideas, emotions, and values which considered in own mind. This conflict will occur when an individual feel that he/she cannot handle trouble in the situation, the behavior of the person will may anger and injure others people such as co-workers, friends, or family. The reason of conflict will occur when the person facing high-stressful of situations. Interpersonal conflict occurs when two or more parties disagreement with the different idea and different goals. When people in an organizations work together with doing same task, but they fail to share the same view which they have different interest or goals to do the task, then the conflict will occur. The conflict will relate to the partners, friends, family, and others. For example, John and Jack who are stay together in room which is roommates, but they are dissatisfied each others because argue about to put box into the limited space of room. John does not want to put into the room but Jack persist his opinion which he think the box can fit into the room. As the result, the conflict will occur when two or more individual different opinion. In intrapersonal conflict, it will exists when one people want to achieve two goals in a same times. For examples, Shawn wants to study business management. He wants to study lawyer too. His parents allow him to study only one subject. Shawn is making conflicts with himself in either study business management or lawyer. In intergroup conflict, the conflict will occurs among members of different groups. The conflicts happen when a group of people is disagree with another group of members. Both groups are happen conflicts due to different in group goals. For example, accounting department is disagrees with finance department due to financial problem. The conflicts occur. Interorganizational conflict occurs when two or more organizations friction. When organizations continuous expand their areas, then it may the conflict with other organizations. This conflict occurs by the reason of substantive conflict, emotional conflict and cultural conflict. For example, Amway vs Herbalive with two organizations are doing direct sales business having conflicts with each others because scare of customers. 2.3 Thomas Kilmann Conflict modes The Thomas-Kilmann Conflict Mode Instrument (TKI) is a conflict style inventory. It is a tool to settle the conflicts. http://eduweb.hhs.nl/~09024514/images/conflict-style-grid.gif In avoiding mode, the person will avoid themselves from involves in a conflict. These people may recognize that a conflict exists and want to withdraw from it or suppress it. They will try their best to avoid conflicts to ensure the safety of work. Avoiding mode is low cooperativeness and unassertive. These people are low concern for both personal goals and relationships. In accommodating style, accommodator is low concern with personal goals and high concern about relationship. Accommodator play high cooperative role inside an organization. Accommodator will identify the benefits that would bring to the organizations. In competing mode, the cooperativeness is low, the assertiveness is high. This is because people are competing to get the needs and wants. Competing mode has low cooperativeness. The relations among employees will not so good compare to others because too competitiveness might affect the relationship. By compromising, both parties can make a few concessions; the conflict can be resolved quickly. If there is the disagreement to be resolved, some sacrifices must be made by both parties. Compromising is usually results a favourable outcome. The relationship can also be maintained. Collaborating mode is mode which use collaborates to handle conflict. Collaborating has very strong assertiveness and cooperativeness. People collaborate to achieve the task. Through collaborating, collaborating enhances the relationship among the employees. Employees collaborate to achieve the target in this mode. The competitiveness is low comparing to others mode. 2.4 Organizational Change management Organizational change is the movement of an organization from one state of affairs to another. It may involve a change in a company’s structure, strategy, policies, procedures, technology, or culture. Due to shift in the environment, the organization chooses to change. The change of the structure, people and technology is the sign of organizational change. Structural change is a change of body structure of the organization. People change is a personal change of the people. Technology change is a change and improvement of technology to upgrade the operations. If the change effort has been successful, change will have become a part of corporate culture. Kurt Lewin has introduce three level if change. There is unfreezing, change, and refreeze. http://www.peoi.org/Courses/Coursesen/orgbeh/Resources/fwk-bauer-fig14_013.jpg Due to unfreezing, the organizations have to make sure that organizational members are ready for and receptive to change. The members are prepared and ready for change. Many change efforts fail because people are insufficiently prepared for change. The people who are using traditional thinking are allergic to change. This is because they scare there are unable to survive in new environment. The second change model is executing change. At this stage, the organization implements the planned changes on technology, structure, culture, or procedures. During this stage, the company has to monitor the process of change. It is one of the important parts which might bring success or failure to the organization. The third change is refreezing. After the change is implemented, the organization is going to new environment. The company has to ensure that the change becomes permanent. The employees in these categories is accepted the change and work in new working environment. People form new relationships and become comfortable with new routines. 2.5 Organizational Culture Every organization has organizational culture. Culture affects every aspect of life. Culture is a set of values and beliefs. Successful company realizes the importance of understanding culture. The organization will practice culture in own organization so that the employees will work under the organization culture. Handy comes out four main types of organizational culture. Those cultures are power culture, role culture, task culture and person culture. This picture below shows Handy’s four dimension of organizational cultures. http://ars.els-cdn.com/content/image/1-s2.0-S0306919298000050-gr2.gif Handy illustrates the power culture as a spider’s web, with the all-important spider sitting in the centre. This is because the key to the whole organisation sits in the centre, surrounded by ever-widening circles of intimates and influence. Organisations with this type of culture can respond quickly to events, but they are heavily dependent for their continued success on the abilities of the people at the centre. They will tend to attract people who are power orientated and politically minded, who take risks and do not rate security highly. Control of resources is the main power base in this culture, with some elements of personal power at the centre. The role culture can be illustrated as a building supported by columns and beams: each column and beam has a specific role to playing keeping up the building; individuals are role occupants but the role continues even if the individual leaves. This culture shares a number of factors in common with Weber’s description of the ‘ideal-type’ bureaucracy. This type of organization is characterized by strong functional or specialized areas coordinated by a narrow band of senior management at the top and a high degree of formalization and standardization; the work of the functional areas and the interactions between them are controlled by rules and procedures defining the job, the authority that goes with it, the mode of communication and the settlement of disputes. Task culture is job-or project-oriented, and its accompanying structure can be best represented as a net. Some of the strands of the net are thicker or stronger than others, and much of the power and influence is located at the interstices of the net, at the knots. Task cultures are often associated with organisations that adopt matrix or project-based structural designs. Person culture is an unusual culture. It is not found in many organisations, yet many people espouse some of its values. This type of culture is illustrated by a loose cluster or a constellation of stars. In this culture the individual is the focal point; if there is a structure or an organisation, it exists only to serve and assist the individuals within it, to further their own interests without any overriding objective. 3.0 Discussion 3.1 Relationship of culture and conflict When power culture and the conflict relate together, either the organizations have to competing or avoiding which is to facing the conflict in the situations of the culture. In the power culture, people in an organization must seek to gain power by competing with others in order to control resources. In this culture, the organizations must ability to compete with others by conflict unless the organization may not be competed. If the organization cannot compete with others, then they may avoid the conflict to ensure the safety of work through in the power culture. In the role culture, every individual have their own positions in the organizations to work in an environment. In this culture, every individual in the organizations should use accommodating to others in order to work together and making good relationship each others. This can resolve the conflict such as misunderstanding, miscommunication, misrepresent, and so on. Every individual must accommodate oneself and other people in organizations so they can as much as possible to lower the conflict with each others. In the task culture, the organizations are involved in extensive research and development to create temporary task teams to meet their future needs. In this culture, they will use collaborating to work together to resolve the conflict and provide the outcome of their needs. Collaborating may bring the organizations culture to work together by improving their performance in the process of conflict such as motivated to achieve the task. By providing communication and integration with other organizations, they may implement and evaluate the conflict together, so they can meet their future needs. In the person culture, individual must compromising to people in order to lower the conflict and making more effectiveness of performance to the organizations. If they do not want to compromise together when facing the conflict, then it may making more serious and may not be handle the issues. So, in the person of culture, they must adapt with other people in an organizations although there are not same in group, department, and structures and so on. 3.2 Relationship of change and conflict From the change and conflict, unfreeze is to before change its organizations which is impact to whole organization to follow and comply with. Due to the change of organizational, there will be occur conflict which related together. During change of the organizational, there will occur a lot of people who do not want to change by reason of they are satisfied with their situation or position or the change may caused useless for them or other reason. The reasons are also people are unable to prepared and ready for change. Therefore, people will may disagreement with the change of organizational and may cause to resignation due to dissatisfy with the new environment. In this stage, the conflict is very high due to most people oppose the new policy. Once the organization has gone through the unfreeze stage, the effective change can be begin to process. In the process of change in the organization, people begin to look for new ways to do things and support the new direction, but some people still may not be able to recognize the real benefits of the change, so there will appear conflict. The reason of conflict appear in the change of process because there have some people are still may not fully understand the changes as they occur and feel that they are not part of the change. In this stage, the conflict is in middle level which generally for some people who still dispute to terminate the change. After the changes have been process completed, there will be refreezing stage. Refreezing is implemented which organization is facing in new environment. In this stage, people are accepted the change and work in new working environment which means they can understand and support the changes that company provided. In this stage, the conflict will be lower and decrease by reason of people accepted the changes. 4.0 Negotiation Negotiations can be known as discussion, is to consult the issues with communication. A negotiation is a ways to resolve the conflict when it occurred. There have different methods of negotiation which to resolve the conflict problem by providing the solution and discussion about it. When processing into the negotiation, there have different way to negotiate between with the parties to parties. Win-win negotiations are also known as integrative negotiations. Integrative negotiations are a method to consult with one party and other parties which are both parties may reach fair compromise and equally treatment at the same situations. The win-win negotiations are also means both parties accepted with the agreement of negotiations with the effectively outcome together. In this process, both parties may gain same benefit and loss together which compromise to each others. In this method, they can have the same treatment which both parties feel that they have won in the negotiations, and there may resolve the conflict together. This is a good benefit for both parties because the win-win negotiations may create good relationship after the discussion and also may find out the problem to resolve the issues. Win-lose negotiations are also known as distributive negotiations. Distributive negotiations are one parties win in negotiation and the other parties lose in the negotiation. Win-lose negotiations will brings only one party to achieve the goals and the outcome, but the other parties may not be able to gain any benefit. In this process, win-lose negotiation carry out that the party who lose in the negotiation may learn the lesson and evaluate with the solution to be the best practices in the performances. But, some parties unable to learn with it because they feel that they lose in the negotiation are loss their image, embarrassing, and so on. This also may lead to the lose parties decrease their morale and may not be motivated sometimes. As the conclusion, the integrative negotiations are better and effectively compare to the distributive negotiations which brings benefits to organizations. They may improves their skill, knowledge, and best practices of the performance when negotiation to the conflict. So, they can evaluate and implement the conflict and find out the solution together by creates a good working relationship. 5.0 Conclusion As a conclusion, conflict may bring advantages and disadvantages to people while their using their methods either to resolve or damages to the organizations. From my opinion, conflict is better to using in the organization in order to evaluate and improves the people performances in best practices. They can conflict with positive way so they can negotiate to find out the issues and solution. Therefore, it also can create relationship with globalization which may face into the conflicts and negotiations. By providing the communication, they can increase their knowledge and performances to achieve their goals. It also may learn from the different cultures and process of change into the organizations through conflicts and negotiations.
4 page paper on leadership
online homework help 4 page paper on leadership.
INSTRUCTIONSFor this assessment, consider that you recently applied, and were selected, for a promotion to an executive level position in your organization. The organization’s HR department conducts management training sessions periodically as needed for employees recently promoted into senior manager or executive level positions. The organization’s HR team places a high value on leadership skills and emphasizes that as part of the management training sessions. You and other new senior managers are scheduled to attend one of those training sessions. In preparation, each attendee was asked to analyze and write a short paper about leadership styles and characteristics of effective leaders. During the management training session, the papers written by participants will be distributed and reviewed.PREPARATIONTo complete this assessment:Select a leader you admire from a for-profit or nonprofit organization you know well. This should be an organization you have a positive perception of, such as an organization for which you might someday aspire to be a leader. Examine and reflect on your chosen leader’s leadership styles and characteristics as defined in the multimedia piece.REQUIREMENTSAnalyze the leadership styles and characteristics of effective leaders. In your analysis, address the following:Briefly describe the organization of the leader you selected and the type of products or service it provides. You should briefly include additional key organizational information, such as size, years in operation, location, and reputation.Evaluate the leadership styles and characteristics of the leader whom you admire. In your evaluation, explain how these leadership styles and characteristics can determine effective leadership.Compare and evaluate your own leadership styles and characteristics to those of the leader you admire, and identify what is necessary for effective leadership.Evaluate how environmental and societal factors such as politics and innovation might influence your approach to leadership at this organization. How might these and other factors affect the way you lead? Would there be differences in your leadership style if this were a different type of organization?Evaluate how economic conditions might influence your leadership style. Would your leadership style change during the time of a strong economy? Would your leadership style change during the time of a declining economy? Would your leadership style change if you were leading an organization through different maturation phases (including start-up, growth, and establishment)?Formatting: APA Style, when using a direct quote make sure to use quotation marks followed by in-text citation. The same with paraphrasing. 4 pages in length.
4 page paper on leadership
have made it to the end of the course!! As you move forward or beyond your educational journey at Athens State, other students will be coming behind you. I think it is important for you to consider all that you have learned this semester, but also to share those valuable insights with others. In this assignment, I am asking you to pass along any advice you have to other students by conveying information that has made (or would have made) your life as a student easier. Minimum length: 150 words Please submit as MS Word (.docx) or PDF and make sure to format as a college level paper.
Congratulations! You have made it to the end of the course!! As you move forward or beyond your educational journey at Athens State, other students will be coming behind you. I think it is important for you to consider all that you have learned this semester, but also to share those valuable insights with others. In this assignment, I am asking you to pass along any advice you have to other students by conveying information that has made (or would have made) your life as a student easier. Minimum length: 150 words Please submit as MS Word (.docx) or PDF and make sure to format as a college level paper.
Business Strategy Of Wal Mart In Japan
Globalisation is described as a process of world wide integration of culture, technology, social, political and economic factors. It is all about the creation of a world unified market and this can be observed with the growing levels of global trade (Luthans and Doh, 2009). Globalisation is evident in the shift of Multinational companies (MNC’s) and economies from a world of isolation as a result of trade barriers to a world of reduced trade barriers and more inter related businesses and economies (Hill, 2009). MNC’s now, expand from both developed countries, developing countries and emerging countries and vice-versa. There is therefore increasing competition among nations (The Economist, 2008). The global expansion of businesses over the years into different international markets have helped these businesses to increase their sales, competitiveness, reduce their cost of production and expand out of their saturated home markets (Root, 1994; Hill, 2009; Daniels et al., 2009). Retailers are not exceptions to this global expansion. This article will evaluate the internationalisation strategy of Wal-mart in Japan. Wal-Mart’s internalisation strategy in Japan is of particular interest because it recently pulled out of two of its international markets; Germany and South Korea. Its success in Japan is still questionable especially as Japan has proven to be a difficult market for many foreign retailers. International companies such as Carrefour, Boots have pulled out from the Japanese market after facing business challenges (Luthans and Doh, 2006). The literature review will analyse the Integration- responsiveness I-R framework as well as culture. These frameworks will be used for the evaluation of Wal-marts’ internationalisation strategy into the Japanese market in comparison with its international competitor Tesco Plc. The use of these two frameworks is to show the extent to which Wal-marts’ strategy responds towards Japanese local tastes and preferences in achieving a successful internationalisation. Conclusions and recommendations will be drawn from this analysis. BACKGROUND OF WAL-MART Wal-mart was founded in 1962 by Sam Walton and opened its first discount store in Rogers Ark, USA. In 1969, the company incorporated to become Wal-Mart Stores, Inc. Wal-mart stores feature general merchandise such as electronics, clothing, and home appliances. It also has complete groceries units. The company employs more than 2.1 million associates, serving more than 176 million customers a year. In 2009, it ranked first among retailers in Fortune Magazine’s Most Admired Companies survey and is also the largest retailer in the world (Wal-mart, 2009). As a result of the saturation of the American retail market, Wal-mart started its international expansion into foreign markets in the 1990’s first into Mexico and subsequently expanded into thirteen other countries including Japan China, Canada and Great Britain (Wal-Mart, 2009; Hill, 2009). Today it has about 8,424 stores and club locations. The company’s most successful foreign venture is in its Mexican market (Hill, 2009). This is as a result of the fact that they adjusted their international strategy to meet local demands. Their everyday low price strategy was also successful in Mexico which is a developing country. However, these strategies are not always welcomed by consumers as revealed in their German and Korean market expansions where they failed and had to pull out. Wal-Mart is still struggling to succeed in the Japanese market where it has already invested $1 billion (USD) (BBC, 2007). Nevertheless, Wal-mart’s international expansions of Wal-Mart has allowed it to develop economies of scale, increase Its customer base and develop more ideas such as their new shop layout (Hill, 2009; Wal-mart, 2009). LITERATURE REVIEW INTEGRATION-RESPONSIVENESS(I-R) FRAMEWORK According to Prahalad and Doz (1987, p.18) the Integration-Responsiveness (I-R) framework is a ‘way of capturing the pressures on a given business ‘. This framework is based on the pressures for global integration and local responsiveness on a business as perceived by the managers of the company (Rugman, 2002). Pressures for global integration are industry forces which drives companies into the standardisation of their products, policies and procedures in order to reduce their cost of operations across ‘national boundaries’ while pressures for local responsiveness are forces which drive businesses into being locally sensitive to differences in culture, preferences, tastes, and general behaviour of each international market in their internationalisation strategies (Rugman, 2002; Daniel et al., 2009; Luthans and Doh, 2009). According to Luthans and Doh (2009), the understanding of culture and its diversity is important to an international company’s successful internationalisation in any country. This is because it impacts upon work force attitudes, managerial ideology, technological transfers, business customs and practices as well as consumer behaviours. The I-R framework was developed by Prahalad and Doz in 1987. They classified international strategies into Global strategy (global integrated, centralised management and move for cost reduction), Multi-focal strategy (an integration of global coordination and local responsiveness) and locally responsive strategy (customised and localised product and services). The adoption of any of these strategies is dependent on the dominant pressure on an MNC as well as its main focus which could be cost reduction or customer satisfaction. Bartlett and Ghoshal (1989) further developed this framework and classified MNC strategies into four categories which can be compared with that of Prahalad and Doz. Their four strategic classifications are: Global strategy, International strategy, Transnational and Multi domestic strategy. Companies with global strategy (high Integration- low Responsiveness) focus on standardization and cost reduction with tight global control, those with International strategy (Low Integration-Low Responsiveness) usually introduce their existing competence and expertise into the new market while Transnational companies (High Integration and High Responsiveness) are flexible and integrate equal levels of global integration and local responsiveness into their business. The multi-domestic companies on the other hand (low Integration and High Responsiveness) respond more towards product customisation (Daniel et al 2009). It is however worthy to note that the adoption of one strategy may lead to the neglecting another. Figure 1, shows the diagrammatic representation of the strategic classifications by both authors. CULTURE The understanding of culture and its impact on international market expansion is imperative to the success an MNC’s strategy in a foreign country (Luthans and Doh, 2009). The degree of pressure for local responsiveness is reflective of the degree of influence of culture upon consumers. Differences in cultural match between companies and employees or consumers can often result to struggle for success in an international market (Holstein, 2007). Hofstede (1980, p.21), defined culture as ‘the collective programming of the mind which distinguishes the members of one human group from another’. Just as personality defines the identity of an individual, culture defines the identity of a group. According to Luthans and Doh 2009 p.96, culture is the ‘acquired knowledge that people use to interpret, experience and generate social behaviour’. This acquired knowledge often manifest into people’s attitude, values, behaviours and general ways of life. Many researchers have argued that culture can be learned, shared, symbolised, patterned, adapted and transgenerationalised. Hill (2009) further argues that values and norms form the basis of a culture. These values could be attributed to collective responsibility, social obligations, loyalty and so on and are often times emotionally important to the group. Norms on the other hand are social codes of conducts which dictate people’s behaviour towards each other. The Japanese for instance, can be seen as a group of people with similar values and norms and related culture. Several researchers have studied cultural differences and its impact on different national behaviours. Hall (1973, 7976) cited in Paliwoda and Ryans (2008), categorised culture into High and Low context. High context cultures like Japanese and Arabic, prefer implicit or unspoken messages and slow business discussions with emphasis on personal relationship and trust while Low context cultures like North America, United Kingdom, Germany prefer explicit, written or spoken messages with more emphasis on expertise, performance and efficiency. Hofstede (1980) undertook a study of the impact of culture on values in a workplace. He categorised culture into four main dimensions: power distance, uncertainty avoidance, individualism -collectivism and masculinity-feminity. A fifth one confucian dynaminism also referred to as long term or short term orientation was later developed. Power distance shows the extent to which people perceive inequality. High power distance nations (cultures) emphasise on the inequality of power, its workforce follow their superiors orders while low power nations or cultures minimise this inequality to minimum thus the work force follow superiors orders as a procedural requirement. Uncertainty avoidance on the other hand is the extent to which cultures avoid uncertainty. High uncertainty avoidance cultures shy away from risks, while low uncertainty avoidance cultures see risk as a part of life. Individualism versus collectivism is the degree to which people look after themselves as individuals or work in groups. Masculinity is often compared with feminity. Cultures with emphasis on success, money were referred as more masculine by Hosftede while a culture with emphasis on quality of life and caring for people are seen as feminist ( Hill,2009; Luthans and Doh,2009). The table below shows the Work-related values for 5 countries adapted from Hofstede’s study. In as much as Hofstede’s work is well accepted and has provided the basic characterisation of different cultural or national groups, these are not definite because culture cannot be easily classified and also culture is gradually changing with the increase in globalisation and integration of the world at large (Luthans and Doh, 2009). WAL-MART’S EXPANSION INTO JAPAN. Wal-Mart initially made a failed entry into Japan in the mid 1990’s when it entered the market through selling its products in local supermarkets, however sales were disappointing (Yoffie and Wang, 2002). The initial failure could be associated to slow market drive by the local super markets as Wal-mart had little or no control over them. This can be seen as a major disadvantage of indirect exporting (Root 1994). However, in 2002 Wal-mart made a second attempt into Japan (BBC, 2006). Japan is one of the wealthiest and developed economies in the world. It has the second largest consumer market (Haddock-Fraser et al., 2009). Wal-mart’s entry into Japan was through partnership with Seiyu Ltd which is Japan’s fifth largest hypermarket and was in financial distress at that time (Yoffie and Wang, 2002). It was a deal which was done in phases as agreed by both parties. Wal-mart was to initially acquire 6.1% of Seiyu shares and gradually increase its stake by acquiring up to 67% of Seiyu in 2007 (Yoffie and Wang, 2002). Sumitomo Corp a leading trading company in Japan also had a 15.6% stake of Seiyu (Luthans and Doh, 2009). In 2005, Wal-mart increased its acquisition stake making Seiyu a Wal-mart subsidiary and increasing Wal-mart’s control over Seiyu. In 2007, Wal-mart’s stake was again increased to 95.1% (Wal-mart, 2009). This partnership deal was meant to help Wal-mart minimise its risk of internationalising in Japan where there is strong domestic competition, price wars and strong suppliers and also help its entry and expansion in the market (Yoffie and Wang, 2002; Luthans and Doh, 2009). ANALYSIS OF WAL-MART’S STRATEGY IN JAPAN. Companies like Wal-mart, adopt ‘international strategy’ for global expansion as suggested by Bartlett and Goshal because they have core competences which they can capitalise upon especially if it’s difficult for their rivals to match them. Companies with ‘International strategy’ have important part of their value chain such as decision making, expertise, new products and international operations being controlled or decided from their headquarters. However such centralised decision making can often impede upon the abilities of the subsidiaries to respond to local demands (Hill, 2006; Daniel et al., 2009). Wal-mart has a cost efficient operating system with an expense structure that is among the lowest in the industry (Shah et al, 2005). Its price of food was estimated to be 20% lower than its competitors in the United States (Yoffie and Wang, 2002). Wal-mart is therefore trying to replicate this successful American strategy and core competence of ‘Everyday Low Price’ (EDLP) in the Japanese international market. Though this strategy has been success in some of its international markets such as Mexico and China, the results in Germany and Korea were so poor that Wal-mart withdrew from those countries in 2006. Once again the success of this strategy is still questionable in Japan. Japanese consumers associate low price with low quality as they are willing to pay high price for high quality products (Holstein, 2007; Strategic Direction, 2008; Boyle, 2009). The perception of customers towards low price signifying low quality is particularly high in its clothing segment (Brunn, 2006). This low price strategy was adopted by Wal-Mart in its entry into Japan in 2002, especially because it was at a time when the country was just emerging from a prolonged recession and consumer income was low (Luthans and Doh, 2009). In order to erase this image of ‘Low Price’ signifying Low Quality’ from the minds of their customers, Wal-Mart has introduced, more expensive products for the customer segment that prefers high cost while still maintaining some low cost variants. For example, it has jeans for $10 and $ 35 option as well (Business Week, 2005) this however may further confuse its customers who may not understand the basis for such price disparity. Japan is a country with a high context society and collectivistic way of life (Paliwoda and Ryans, 2008). They have strong ties to families and groups and great emphasis for quality and prestige (Hofstede, 1980). As a result of these strong social ties, Wal-Mart’s sacking of 25% of Seiyu’s work force including 1500 managers and employees in 2004, was wrongly perceived by the Japanese people. Wal-mart opens its stores for 24 hours a day, this is seen as stressful by the employees and generally seen as an infiltration of the American culture into Japan. It’s introduction of American, Canadian and British managers who act on headquarters decisions rather than employing Japanese managers who understand the market better further portrayed them in a negative light to both the employees and the general public. This consequently led to the loss of some of its customers (Holstein, 2007; Strategic Direction, 2008). Another core competence which Wal-mart introduced into Japan is its technology-focused inventory replenishment system which is linked to their suppliers. It helps them monitor and manage their inventories. However, because the Japanese people prefer personal interaction when doing business (Hofstede,1980), the implementation of this Information technology strategy has not been easy, especially as Japan has several layers of distribution network which are ‘closely networked’ and difficult to penetrate. It thus makes high volume discounting difficult and merchandising more expensive (Brunn, 2006; Holstein, 2007). Wal-Mart is however trying to eliminate the middle-man in order to successfully implement its low price strategy (Luthan and Doh, 2009). Wal-mart’s response to local tastes, preferences and general way of life is perceived as low in its international strategy as It tends to implement its competences into international markets with little considerations to what the local demands, preferences, expectations are and this has led to its struggle to survive in Japan (Brunn, 2006). Comparing Wal-mart with Tesco Plc in Japan, the following differences can be drawn from their strategy. Tesco Plc which is the biggest retailer in the United Kingdom entered Japan in 2003 through the acquisition of a domestic retailer just as Wal-Mart did. While Wal-mart acquired Seiyu which is a hypermarket, Tesco Plc acquired C Two-Network stores which has small discount supermarket stores (Tesco, 2009). Haddock-Fraser et al., (2009) have argued that large supermarket (hypermarkets) of the western cultures are not viable in Japan, rather small supermarkets, convenience stores with fresh and quality products are preferred by the Japanese consumers. Thus the strategic move of acquiring a discount supermarket chain by Tesco was aimed at meeting the local demand of the Japanese consumers who prefer to shop daily for fresh food in small quantities with convenience. This shopping behaviour makes them to patronise convenience stores and discount supermarkets which are more accessible than out of town hypermarkets. Tesco, with its small store format, experienced overall sales growth in 2006 unlike Wal-mart which has been making loss for four years (Haddock-Fraser et al., 2009). Upon acquiring C Two-Network, Tesco retained the management team of the company to oversee its operations in Japan, because Tesco realised that these managers have better understanding of the Japanese employees, consumers and suppliers (Food and Drink, 2003). Japan, being a country with high collective behaviours, (Holfstede, 1980) perceived this as a good move. Tesco Plc tries to localise its products and services in each of their international markets, recognising that each market has unique preferences. This higher degree of local responsiveness in their international markets emphasises the reason why Tesco retains its foreign managers and limits its control from headquarters (Tesco, 2009). Figures 3 and 4 below further shows the differences in the sales contribution of the international markets to the total revenue of both companies. Wal-Mart’s international markets contributed 24.6% of the company’s 2009 financial income while Tesco Plc has 53% of its 2009 financial income being generated by its foreign markets with Asia alone generating 30% of this value. It can, therefore, be concluded that Tesco’s response to local responsiveness has a positive impact on their financial performance internationally. CONCLUSIONS AND RECOMMENDATIONS Wal-Mart is very successful in its domestic market and also some foreign markets such as China and Mexico where it had to adjust its strategy in order to respond better to local pressures. It is therefore recommended that Wal-mart should further develop its strategy in Japan and respond better to the country’s local demands and preferences through the opening of convenience stores in order to capture that market segment and offering more fresh local products to meet the local demand. Wal-mart should also employ Japanese managers who understand the market better. These measures will help Wal-mart to succeed better in Japan where the pressure for low price by customers is not emphasised rather high quality is preferred. Wal-mart can still maintain its international strategy with a little more responsiveness to local demand as there is no one best strategy to adopt. This move will save Wal-mart from withdrawing from the market where it has already invested $1 billion USD. Wal-marts low sales value from international operations in comparison with Tesco reveals that the retail market is still a viable industry for Wal-mart to exploit.
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