THE BUSINESS GLOBALIZATION PROJECT

The purpose of this assignment is to help you understand and apply text principles to real-world
organizations. Chapter 2 introduces six external and global environments to show how shifts in
these environments affect organizations. Mediating organizations and individuals also shape
organizational actions. To prepare for, or respond to, external and mediating activities,
organizational leaders undertake internal adaptations of people, processes, and structures (PPS)
to survive and thrive in their global world. You can conceptualize this project by placing your
organization in the center of Figure 2.1. You will conduct research that demonstrates how the
firm adapts PPS to global shifts. In other words, you are building a systems view of your
organization's relationship with a global world.

1. Select a Firm
Each person selects a firm from one of the industries designated for this term. Ordinarily there
will be no more than five people studying firms in the same industry. Only one person will be
allowed to study each company and we will follow the rule of “first come, first served.”
Everyone should select firms headquartered outside their home country. Library reference
sources that may help you get started include: a) The Global Marketplace, b) International
Directory of Company Histories, c) World Class Business, d) Hoover’s Handbook of World
Business, and e) Encyclopedia of Global Industries; some of these are online.

A caveat: there is no “one best way” to approach this project. However, the library subscribes to
many electronic databases that contain research appropriate to this project. General Internet
searches are less likely to yield useful project information.

2. Prepare the Individual paper

Use library and credible electronic sources to find information suitable for answering a–e below.
This is a research paper; you must consult multiple sources beyond those generated by the
organization itself. See information below for guidelines on the number of references required,
and the balance between company publications and more objective sources. When writing, think
of yourself as an analyst rather than a reporter. This means that when you describe a business
activity, you also need to explain how that description advances some point you are making.
Your audience is a business reader interested in working for or investing in the firm and part of
your job is to help the reader evaluate this firm. The reader knows text materials very well, but
wants to know how you apply those concepts to a company.

3. Individual Paper Content

a) Introduction to the firm

I. Provide a history of ½–1 page

Bring us up to date with the company and events affecting it. If the enterprise has a long history,
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review it briefly, putting major emphasis on events most relevant to the firm’s global activities.

ii. Describe the firm today

Outline the businesses in the company portfolio and explain what percentage of its
revenues/profits come from the business that represents the industry you are to study. In some
cases, e.g., McDonald’s, the portfolio is comprised of a limited range of products. In other cases,
e.g., General Electric, the parent company owns a huge number of businesses in different
industries ranging from white goods (appliances) to consumer and industrial products.

iii. Provide most recent data on size

Report at least on the last full year’s company revenues, 1 markets/nations served or in which the
company has a presence (manufacturing, sales, investments), and number of employees
worldwide. Ideally, you will find this information for the company and in the business/industry
on which you are focusing.

iv. Use Chapter 3 definitions of a global enterprise to evaluate the extent to which your firm is
global on each of the five dimensions of the definition
Provide specific examples to demonstrate you understand and can apply each dimension. For
example, a company that operates in all continents and in 134 nations is quite global in
establishing a worldwide presence. Having reviewed each of the five dimensions, decide how
global you think the firm is at this point and explain your decision.

b) Apply 5 levels of strategy to your company

Chapter 3 describes the five levels of strategy. You should prepare several sentences that apply
each level of strategy to your firm. First find a statement issued by the firm (or make inferences
based on behaviors) that answers the enterprise strategy question: what is the organization’s
overall purpose/why does it exist? (This statement might be called its vision statement, value
statement, mission or a similar term; in some cases, organizations do not specifically outline their
purpose in which case you must infer their purpose from what they say and/or do). Your main
interest is in exploring why the organization exists. Sometimes organizations very thoughtfully
tell you why they exist, e.g., to return wealth to shareholders; to have fun and make a profit while
doing so; to assist humankind. Your job here is to tell me what their purpose is as you understand
it. Obviously, every firm exists to generate profits. But not all say that. So when they are mum on
the profit/wealth issue, you need to explain that and indicate what other purposes they pursue.
Then go beyond enterprise strategy to find evidence of how the firm operationalizes corporate,
business, operational, and individual levels of strategy.

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Usually you will be able to locate revenues. These should be annual data. Provide your data in
U.S. dollars, and if you have to convert to dollars, provide your source/date/amount of currency
exchange. A good exchange calculator is: www.oanda.com. This and other sources are found on
the research link of my homepage under “Global Economy” (fac-staff.seattleu.edu/parker).

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Additionally, you must provide several paragraphs business strategy within your assigned
industry. This should include concrete examples to show what the organization at the business
level does to achieve its enterprise purpose. Business strategy questions to answer include: what
is the basis of this firm’s strength? What does it offer that others do not? That is, what are its
core competencies—those 3–5 competencies that distinguish it from competitors? What are its
major strategies/approaches to competing in the global market? How competitive is it and with
what firms? Does it compete to win with wholly owned subsidiaries or collaborate via joint
ventures or other strategic alliances; or does it do both with competition? (See also Chapter 5 for
insight on these terms.)

Several books provide statements the company makes about itself. These may be useful to you in
two ways. First, the examples provide direction for you as you search for your company’s five
levels of strategy. Second, some of the examples will be based on the companies you are
studying. In the latter case, check what you find in the book against what the company is saying
about itself today; these global firms can change very quickly.

Jeffrey Abrahams (1999) The Mission Statement Book: 301 Corporate Mission Statements from
America’s Top Corporations. Berkeley, CA: Ten Speed Press.
John W. Graham and Wendy C. Havlich (1999) Corporate Environmental Policies. Lanham, MD:
Scarecrow Press. Many international firms, especially those located in Europe.
Paul G. Haschak (1998) Corporate Statements. Jefferson, NC: McFarland Publishers. Mostly U.S. but
does have U.S. subsidiaries of global firms such as Nestle, CIBA-GEIGY, SmithKline-Beecham.

c) Explain how the firm meets common global challenges

Chapter 3 describes four central challenges facing global organizations: problems that cannot be
solved, managing intangibles, managing diversity, addressing new issues for which managers
and organizations are ill-prepared. Provide two concrete examples from your readings to show
how your organization is affected by one or more of these common challenges. Make explicit
statements linking the specific challenge and the example you’ve chosen.

d) Integrating people, processes, and structures

Note: Your focus here should be internal to show how the firm is either adapting to global shifts
or attempting to shape them.

i. Explain and evaluate the firm’s structure.

An organization’s structure is the framework for action that reflects governance decisions and
decisions about how to organize responsibilities among people and their jobs. In this
section you need to focus first on governance and second on management structure; you
will analyze each (See Chapter 12 for details.)

ii. Draw (or copy from the company’s website) a graphic of your company’s structure that
includes governance and managerial responsibilities

This graphic should include the Board(s), top management, and levels below top management
that include the business you are studying. For example if you are studying Philips Electronics in
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the semiconductor industry, then you would report Philips’ structure to show all positions at and
above semiconductors. It is not important for you to list names, but you do need to list job titles
because they demonstrate relationships. For example, we can guess that a senior vice president is
above a vice president in the organizational hierarchy. Sometimes a company will not provide a
copy of their structure or organizational chart. In that case, you may need to conduct research or
look at titles of top managers to interpret and draw the structural arrangement on your own.
Usually the annual report has a list of titles for top managers; some Datamonitor reports also
provide this information. You may need to consult with your professor for help in interpreting
what you see.

iii. Your analysis will weigh advantages and disadvantages of the chosen structure at two levels:
Board and Management

Board Structure Analysis: Begin with description of the role of the Board and its relationship with
top managers—are these two separate or closely integrated? What are the
advantages/disadvantages of the Board/CEO relationship? Often you can find evidence of
each by reading annual or 10–k type reports that explain who is on the Board and what
they do. Try to find there specific examples to support the points you are making.

Management Structure Analysis: Every global company manages functions, geographic diversity,
and products/services. Where they differ is how they organize responsibilities for each. In
one example geographic divisions could report to functions at headquarters; another
example might organize functions beneath geographic divisions. So your job is to show
how these three (functions, geographic regions, products/services) are organized in your
firm. Using text concepts, explain what type of organizational structure you see: is it
functional, divisional (what type), a hybrid, a network, a matrix? Remember that a hybrid
is a structural form that mixes say, function and geographic division, at the same level. Use
appropriate business language to describe the structure of your organization. An example
of what one might write is: this structure is a divisional one, organized according to
geographic regions. Assess the advantages/disadvantages associated with this structure as
found in text and articles you've read about your firm. Use specific examples from the
company to support your assertions about advantages/disadvantages. Remember that what
you are trying to do in this paper section (all sections for that matter) is demonstrate that
you can apply text concepts to a firm and support your assertions with specific company
examples.

iiia. Find one example that shows the firm has adapted one or more processes to operate in a
global world
Processes are systematic or continuous activities used to accomplish organizational tasks. As
shown in Chapter 2 of the text, organizations engage in many processes, including strategic
management processes, social responsibility and ethics, change management, innovation, quality
control processes, technology transfer, etc. What you want to do here is describe a process in
which the firm engages, and then explain how that process helps/hinders the firm in a global
world. Your description of the selected process should be detailed such that the reader knows
exactly what it is the company is doing. Your description and analysis should be in detail.

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iib. Locate your firm’s position on the social responsibility continuum
Find concrete examples from the firm to support your position. For example, does you firm
conform to its own or another code of ethics or principles, e.g., Caux Principles? Does it apply
its ethics codes also to its suppliers? Find one company example that illustrates what the
company is doing to comply with its own code of ethics or other CSR initiatives.

iv. Find two examples that help you demonstrate the firm has adapted one or more of its
personnel practices to operate in a global world.
The people in an organization—from top managers to production or service employees—are
essential to achieving organizational purpose. Therefore, managing people is critical for global
integration. Managing people includes staffing, hiring, compensating, promoting, and the like
(See Table 2.5 on p. 76 for other examples). What you want to do here is describe at least two
ways to manage people that shows how your firm adapts people better to shape or respond to
globalization. These descriptions should be sufficiently detailed to help your reader understand
exactly what the company is doing. Then explain/analyze how that approach to managing people
helps/hinders the firm in a global world.

e. References
There are two good reasons to reference. First, referencing acknowledges that ideas are the
intellectual property of others. Second, referencing helps readers begin where the researcher
stopped rather than begin at the same place as the researcher began. The details of referencing
can sometimes be challenging. What you want to bear in mind is this: any information in the
paper (other than your original thoughts) must be acknowledged by means of a parenthetical
citation in the body of the paper, e.g., (Parker, 1998). Direct quotes should include quote marks
and page numbers.

All sources should be internally cited parenthetically according to American Psychological

Association (APA) style. A three-page synopsis of APA style guidelines (Parker version) are on
the class web site. The text itself uses APA style, and so you can get pointers from reviewing the
reference sections or boxed materials in each chapter.

Provide a reference list containing at least 15 references using appropriate APA style. You may
not count more than three references from the firm in the total, e.g., Corporate annual report,
homepage, and a mailing from the company are permissible; you should plan on using at least
twelve in-depth articles from current periodicals or newspapers (no older than two years unless
negotiated otherwise).

4. Details for Preparing Your Individual Paper

Deliverables
Two copies of the individual Business Globalization paper are due on the assigned date. One
copy will be evaluated by your professor, another filed for future student use.
Organizing the Paper
The papers should be organized as follows:
1. Put the firm name at the upper right hand top of the first page, followed by your name

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 and the current term date.
2. In the body of the paper provide headings and subheadings reflective of assigned
categories shown above. Headings and subheadings are useful to the reader and help the
writer is sure all assigned topics are covered.
3. Single spaced.
4. Number the pages.
5. Prepare a minimum of 2–3 paragraphs each on topics covered by all parts of a–d above;
½–1 page on history alone; references are found on a separate page.
Grading/Points for the Individual Paper
Grades on the individual paper are as follows: a 15 points; b and c—10 each; d—10 points each
for i, ii, and iii. References 10 points; style/grammar 10 points = 85

5. The Group Project

Planning for success

The group project is an analysis of how firms in the selected industry are coping with/adapting to
each of the six global environments. Its purpose is to help each person gain greater insight into a
specific global industry and into the managerial adaptations occurring in the industry. As a group
you need to think about and plan for how individual research can help you meet group goals. The
group submits a written plan on the date noted in the syllabus that contains the following:

a. an overall vision/mission statement outlining your group's purpose and its expected
outcome, e.g., in terms of the product and the process, what you hope to learn about the
topic and about working in teams, the contributions you will make and the grade you are
trying to achieve. If your industry needs to be more narrowly defined, e.g., within the
food industry a group might decide to focus just on cookies, then your plan should reflect
this focus.
b. Outline specific and measurable objectives for the project such as the following: how
many examples or articles per firm/per week must each person assemble to complete the
group project?
Inasmuch as each person has options for the individual paper, what can you do to be sure
that each external environment has examples from which the group can choose? How and
when will you pass through each of the five stages for groups, see chapter materials on
teams for a list (pp. 422–3). What roles will each person play in the group project?
Decide on logistics and roles; who is to do what; when; where; in what format, e.g., Word
or PowerPoint. Here are numerous roles that could be performed to enhance project
quality: a) proofread the draft paper for grammar, typos, standard business language, etc.,
b) review the draft paper to ascertain that each section has the appropriate number of
examples, and correct information in each section, c) review for PPS links, c) review for
references and internal citations, e) review the presentation; does it conform to the
presentation outline?
c. Develop a set of common commitments and a method for evaluating input and output
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 for each individual’s work; you must specify exactly how you will assign points and how
you will deal with one another when commitments are not made. (See the web sample
titled “Business Globalization Project Peer Evaluation Form.”) When you submit your
written plan, attach a copy of your evaluation form and the points you’ve decided to
allocate to each factor you evaluate. Be sure that the numbers of points you allocate
match the number available on the syllabus.

It would be helpful if you send an e-mail attachment of your group plan and rating sheet
as well as provide a written copy in class. If the latter only, then the graded copy of your
plan should be submitted along with your group project.

Content for the Group Project/Paper

i. Introduction
Introduce us to the industry by describing identified segments of the industry, and the one(s) you
are studying. For example, in the airline manufacturing industry, segments include large,
medium, and small jet production, and divisions might include commercial or defense buyers.
Then provide a brief introduction to the firms you’ve studied, indicating to what extent these
firms represent the industry. For example, in the music business, the top five producers issue
about 90% of music. In the steel industry, the top five producers represent only about 12% of the
industry. Obviously, if your group has studied about 90% of production you can make more
definitive statements about the industry than if you've studied only 12% of producers. Be aware
of that. Additionally, this introduction should introduce summary points such as what the paper
is going to show about globalization and its effects on firms in the industry. Note here which of
the global environments most affect firms in the industry, and explain that assessment.

ii. The six global environments

Provide headings for each of the six global environments we have studied and provide text to
demonstrate organizational responses to globalization in each environment. (See tips to
follow for each environment and make a note for required industry information.)

Usually it is a good idea to put global industries and business activities right after your
introduction, because the industry provides a context for understanding firms in the
industry. Put particular emphasis on showing how firms are adapting people, processes,
and structures to operate in these various global environments. At a minimum, provide
examples from 3 different firms in each global environment studied (these need not be
only from the firms you have specifically studied). Create summary statements for each
section to explain how the examples you’ve chosen are reflective of or atypical for the
industry.

ii. Conclusion

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Provide a conclusion of 1–2 pages to summarize your industry findings and look to the future. In
particular, summarize in what ways firms in this industry are adapting people, processes,
and structures to survive and succeed at a global level. Use evidence you’ve provided in
your papers (or that you've acquired from readings for this class) to describe anticipated
changes for firms in this industry as globalization continues. For example, how is the
rapid pace of change likely to affect firms you've studied? Additionally, use this newly
acquired knowledge to describe the types of activities you believe are necessary for firms
to succeed in this industry over the longer run.

The conclusion also should include a section describing the skills you believe are most important
to industry managers.

As you did in your individual papers, cite references using parenthetical style. Provide a separate
“References” page for the paper.

Challenges to consider: avoid grammar/style differences that demonstrate you did not coordinate
when preparing the paper. Additionally, try to avoid uneven references that demonstrate lack of
coordination.

Grades for the Written Group Project

Grades for the group project are as follows:
Written group plan 20
Group Presentation 20
Written paper:
Introduction: 8
Global Environments (PPS links): 48
Conclusion: 12
References: 6
Style, grammar, etc.: 6
120 points total

The Group Presentation

Group presentations will:

 Describe the industry and highlight industry findings; in particular, give us a sense of the
size of the industry in terms of annual revenues, then tell us what percentage of those
revenues are generated by the firms you’ve studied.

 Explain how firms in the industry are adapting people, processes, and structures to
various environments in a global world (you do not need to cover each environment, but
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 should cover those that you think are most important to firms studied; explain why you
believe they are important).

 Indicate what the future holds for enterprises in the assigned global industry.

 Describe the managerial skills most important to the industry they have studied.

Tips for links to each global environment:

Examples below are illustrative rather than exhaustive, except for global industries where you
must provide information as described below. Most of your examples will come from individual
firms studied, and the group will use these examples to build a case about what you believe is
typical for firms in the industry.

Links to a global industry and business activities:

Information in this section is required:

The idea in this section is to generate as much information as you can to explain the industry and
various firms’ roles in it.

Conduct research so you can describe the industry and even draw a “family tree” of the industry
you are studying. For example, a group study of the do-it-yourself (DIY) industry recognized
that DIY is part of the retail industry that includes the following:
• Department Stores
• Discount & Variety Retailing
• Drug, Health & Beauty Product Retailing
• Grocery Retailing
• Convenience Stores & Gas Stations
• Consumer Electronics & Appliance Retailing
• Building Materials & Gardening Supplies Retail & Wholesale
• Home Furnishings & Houseware Retailing
• Auto Parts Retailing & Wholesale
• Non-Store Retailing (Hoover’s Industry Master List, 2002)
• Clothing, Shoe & Accessory Retailing & Wholesaling
Here is an example of a family tree created for the Do It Yourself (DIY) industry:

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There are many different ways to evaluate firms in an industry—your job is to find different
measures of quality. What is the size of the global industry you’ve studied in terms of revenues,
numbers of people employed, or similar data? Where do your firms rank as compared to other
firms in this industry? Are they on lists showing best or worst performance or activities?

What are major sources of distinctive advantage for each of the firms studied in this industry?
How rivalrous are they and with what firms? Do they compete to win with wholly owned
subsidiaries or collaborate via joint ventures or other strategic alliances.

Makhija, Kim and Williamson (1997) argued that industries can be classified as multidomestic,
simple global, integrated global and fully global. Conduct research on firms in your global industry;
and develop an argument to support your decision about which of these four classifications is
appropriate to the industry in which your firm competes.

What firms are most likely to survive/thrive in this industry and why?

Note: For all chapters, see also the PowerPoint presentations and the specific lecture notes for the
Group presentation.

Links to global culture

This section can draw on any material found in Chapter 7, and you want particularly to focus on
how a company is shaping or reacting to changes in global culture.

Questions that might help you are:

In what ways are firms (or any given firm) responding to or shaping cultural globalization?

What is the organization’s “culture”? And what are the assumptions organizational members
make about the role culture plays in their work?

What are the firm’s practices when it encounters cultural similarities and differences? How does
it respond to demands for cultural diversity at work?

What cultural challenges does the firm face on a global scale?

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How does it shape global culture?

The point here and in every section is to demonstrate how firms in this industry are adapting
people, processes, and structures (PPS) to survive/thrive in an increasingly global culture.

Links to the global economy

Demonstrate ways it is evident that the firm you are studying is responsive to and engaged by a
globalizing economy (Chapters 8 and 9)?

Chapter 8: What are firm practices relating to managing in a global economy, e.g., direct
investments, export/import behavior, sourcing patterns, accounting for profits and costs abroad?
The point here and in every section is to demonstrate how firms in this industry are adapting PPS
so they can survive/thrive in an increasingly global economy.

Note: Don’t confuse the economics of a firm and its internal financial operations with topics
covered in Chapter 5. In other words, demonstrate the link between a firm’s economic
performance and the global economy to show you understand how the two are related.

Chapter 9: Global businesses are members of the formal work sector, but they too struggle with
issues of unemployment, wage and labor inequities, and even child labor. To what extent has
your firm exported jobs to other nations and/or created service or knowledge jobs outside its
nation of origin. What labor challenges does it face? Is there evidence of national diversity
among top managers? Does the firm relocate jobs to hire cheaper labor or does labor come to the
firm? Look particularly at compensation systems and benefits.

Chapter 9 argues that global businesses increasingly are expected to resolve some of the
challenges created by labor globalization. Sometimes they address these challenges with codes of
business or industry conduct; other times they are subject to pressure tactics or collaboration with
representatives of civil society organizations; in still other cases they collaborate with
governments or intergovernmental organizations to address labor issues. Not all organizations
are model citizens. Thus you may find that the organization you are studying is more exemplary
for what it has not done than for what it has done. Provide specific examples to show how firms
in this industry are adapting internal people, processes, and structures (PPS) in response to
globalization of labor.

Links to global politics

Demonstrate ways it is evident that the firm is responsive to a globalizing political environment by
applying text concepts to firms or industries studied. The point here and in every section is to
demonstrate how firms in this industry are adapting PPS so they can survive/thrive in an
increasingly global political environment.

Applicable chapter concepts to consider are:

In what ways has the firm benefited from or been damaged by privatization, deregulation, or
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industrial policies of nations. What do organizational leaders have to say about the effects of
deregulation and privatization on their operations? Do they see these forces as opportunities, threats,
or both? In other words, how have decisions within national governments affected the global firm?

How is the firm or industry affected by or involved in multilateral or global trade agreements such
as the EU, Mercosur, or the WTO?

To what extent are businesses in your industry working to alter the political/legal environments in
which they operate? Do they lobby, develop industry alliances to pressure governments, file suits, or
otherwise work to shape their political environment?

What global standards are applicable to the firm or industry? How are firms responding to or
complying with these standards? What adjustments are they making in PPS to comply?

What is the effect of corruption and transparency on firm and industry decisions?

How is the firm or industry affected by global security issues, e.g., terrorism, and concerns such as
armed conflict, piracy, counterfeiting, money laundering or the like? To what extent are firm
practices shaped by illegal activities or global gangs?

Does the organization form alliances with intergovernmental or nongovernmental organizations to

address social as well as economic issues? Describe these activities and consider how they serve
organizational purposes.

Links to global technology

Demonstrate firm responsiveness to technological progress within or outside its industry drawing
on material covered in Chapter 11 (this chapter is on the web site, and we will cover topics for it
in class, but it has not been reproduced for you because I did not assign it for class).

This section might describe research and development programs, show how the firm protects
intellectual property or manages technology transfer. Has the firm adopted technologies, e.g.,
hardware or software, or high and low-technology to improve its products or processes? The
point here and in every section is to demonstrate how firms in this industry are adapting PPS so
they can survive/thrive in a world where technological shifts are increasingly global.

Links to globalization of the natural environment

Demonstrate organizations’ responsiveness to globalization of the natural environment as

reflected in topics covered in Chapter 6. In terms of globalization of natural resources, what are
each firm’s major issues with respect to acquiring and using natural resources? What natural
resources do firms in the industry use most and how do they work to preserve or conserve those
resources? Or do they? How do firms deal with globalization of diseases such as HIV/AIDS?
Are any involved in sustainable development. Do they use environmental accounting, pollution
controls, etc., to protect the environment? Do they recycle and reuse or abuse the natural

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environment? Are these firms involved in cross sector or industry partnership to preserve the
environment? The point here is to demonstrate how firms in this industry are adapting people,
processes, and structures (PPS) to survive/thrive in an increasingly global world where natural
resources are finite and use of them in one part of the world affects resource availability now or
in the future.

Good luck.

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