CCASE

ASE PPRESENTATION
RESENTATION
Prepared for

Mr. Md. Mahbubul Kabir

Course Instructor
International Business
Institute of Business Administration
University of Rajshahi
 Prepared by

1. Mostofa Khalid (080001) 9. Md.Abdullah Al Mamun

2. Md. Golam Sarowar Jahan (080004)
3. Md. Rashid Hossain Chowdhury
(080007)
4. Khandoker Arif Ahmad (080011)
5. Md. Tauhidul Alam (080015)
6. Sajal Kumar Das (080018)
7. Tanusree Barman (080022)
8. A. T. M. Sharifur Rahman (080025)
(080029)
10. Md. Asadul Islam (080032)
11. Md. Ratan Mian (080036)
12. Ahsan Tarique (080040)
13. Rony Kumar Datta (080043)
14. A. N. M. Saidullah (080046)
16. Md. Mostafijur Rahman
(060030)

Group: A, MBA (evening) Program, 7th Batch, 4th Semester

Charles Martin in Uganda
INTERNATIONAL BUSINESS
 Introduction to the Case
• Hydro Generation (HG) is constructing a large dam in Uganda and is
supported by the Ugandan Government as only 5% of the population has
access to electricity
• Current project liaison specialist, Charles
Martin, has satisfactorily accomplished
what he had been assigned, however HG
Site of Project
vice-president is concerned about his
lifestyle and some of his business
practices in Uganda
• Should Charles be allowed to stay in
Uganda for the construction phase of the dam? Will he be beneficial?
 The Concept of the Case
• This case shows how important it is for a foreign company to
understand and adjust to ever changing operating
environments
• This case we have found HG Company’s culture and also the
problems the company was faced because of cultural
differences and legal facilities.
• All people have culturally ingrained responses to given
situation
• Gives a concept that an international company must be
sensitive to the cultural difference in order to predict and
control its relationship and operations.
• It should realize that it’s accustomed way of doing business
might not be the only on best way
• When doing business in abroad a company should first
determine what business practices in a foreign country differ
from those it’s used to.
• Management then must decide what if any adjustment
necessary to operate efficiently in the foreign company.
 Uganda
• Country of economic, political and cultural complexity
• 32 Million inhabitants, of which only 50% have access to clean water
• Official language is English, but Bantu or Nilotic languages are very
common, and 2/3 of the population is Christian, the other 1/3 is mainly
Muslim or follower of animistic religions different lifestyles, values
and opinions
• Average life expectancy of about 45 years, average population age is 15
• Conquered independence from British colonial rule in 1962, after which:
– Severe dictatorship
– Several refugees from neighbouring countries
– One of the most corrupt countries in the world and nepotism is a norm
• Entry of foreign countries is not heavily regulated
 Hydro-Generation
• HG, U.S.-based company, specialist in power plants (dams)

• Values strongly built on the Christian culture

• Employees have a high degree of empowerment, being fully

responsible for their actions

• First time it is building in Africa

• No code of conduct concerning expatriates lifestyle, but its

corporate culture was one that reflected the lifestyle of a
prosperous international company
 Charles Martin
• Graduated with a major in African studies

• Joined Peace Corps and served in Kenya working with the start up
of small businesses, taking the opportunity to visit neighbouring
countries

• Joined HG 3,5 years ago, bidding and budgeting projects for two
years, after which he was assigned to Africa

• Devotee of the philosophy of integrating the African society, not

drawing attention to oneself, but learning and respecting its
culture
 Charles Martin’s Assignments
• Gain support and necessary permissions from the Ugandan
governmental authorities and affected villagers for the dam
construction

• Build an operating structure and facility, with people responsible

for local purchases and hiring, customs, immigration affairs,
logistics of materials and record keeping

• Help foreign visitors and HG expatriates to become accommodated

and oriented when visiting/arriving at Uganda
 Charles Martin’s Practices
• Lives among middle-class Ugandans and not in up-scale
neighbourhoods where most international managers live

• Doesn’t integrate himself within the expatriates community

• Makes “extra payments” to local people to get things moving

faster

• Hires staff closely related to Government officials

• Participated in tribal rituals to get support from villagers affected

by the dam construction, although being employed in a company
embedded in Christian values
Problems with Charles Martin
• Independent lifestyle,
• Participation in tribal rituals,
• Way of achieving results,
• Unethical practices,
• Payments which might be illegal under U.S. law,
• Martin’s distance from the expatriate
community
 Polycentrism
• In polycentric organizations, control is decentralized so
that managers feel free to conduct business in what he
thinks.
• In other words, business units in different countries
have a significant degree of autonomy from the home
office and act like local companies.
• It is an overly cautious response to cultural variety
• A company that is too polycentric may shy away from
certain countries
• In intercultural competence the term polycentrism is
understood as attitude and openness towards other
cultures, opinions and ways of life
 Ethonocentrism
• Ethnocentrism is the belief that one’s own culture
is superior to others
• Managers overlook important cultural factors
abroad
• Management recognizes the environmental
differences but still focuses on achieving home-
country
• Management assumes that the introduction of its
new products or ways to produce and sell them is
both necessary and easy to achieve when it is
really a complex process
 Geocentrism
• Geocentrism is between the extremes of
polycentrism and ethnocentrisms
• It is the practices that are neither the home
operations nor the host-country company’s but a
hybrid of the two
• When the host-country environment is substantially
different from home
• Geocentrism is when a company sets operations on
an informed knowledge of home- and host-country
needs, capabilities, and constraints.
• This is the preferred approach to business dealings
with another culture
 Discussion on Question 1
• Language Barrier
• Religious Concerns
• Violent Political History, Political Instability and
Nepotism
– Different types of communication language
– Higher and lower class discrimination
– Nepotism is a norm for employment staffs
– Restructuring of rules and international law
– People are involve with corruption
– Lack of the legal opportunity
– People of Uganda's are too much devout to their religion and beliefs
and culture
 Discussion on Question 2
• Martin exhibited a more Polycentric (autonomous)
attitude,
• Green seemed to be more Geocentric in his
approach.
• While Martin was more concerned about his
effectiveness with respect to his assignment in
Uganda, Green was more concerned with
corporate-level issues.
 Discussion on Question 3
• Martin was right about the controversial actions he took
in the Uganda operation
• HG saw the wisdom of having someone with both a
home-country corporate perspective and a knowledge
of Uganda’s economic political and cultural complexity
• Martin know that how to operate business as a foreign
company in a country like Uganda
• Arguments can be made for the positions of both Green
and Martin
• Martin’s rejection of the typical expatriate lifestyle ran
counter to Green’s idea of a desirable corporate image
 Discussion on Question 3
• The result if Martin had not taken those
actions would be,
• HG’s business operation would move slowly
• One may wait months to get a phone installed,
supplies delivered on operating licenses issued
without paying tips
• Hiring people or staffs will be difficult because
Nepotism is a norm in Uganda
• Without hiring a specialist in African religions and
participation in the ceremony by Martin. HG
would not continue its operation and displace the
villagers where the dam will be built
• Every task would not be completed on time,
within the total budget
 Discussion on Question 4
• If employed someone else, same problem will
occurred.
• Martin should be the right person for the job. Given
the importance and the size of the project,
• It seems only logical to employ someone who is
extremely well versed in the culture of Uganda
• Whether that person is Martin or someone else,
however, HG must establish clear guidelines that
reflect both U.S. law and corporate policy to guide
the managers of their foreign operations
 Conclusion
• The internationalization of business requires
thorough research of the other country’s culture
• There is a need for accommodation to the different
standards of doing business by the host company in
the foreign country
• It is necessary to respect other country’s cultural
beliefs,
• People working in a foreign environment should try
to become geocentric.
Thank You
Thank You All
All