Case Study

Cross-Cultural Management

Case 1:

Application Case in Chapter 3

Cross-Cultural Management

Zane's Cycles, is an independent bicycle shop run by its thirtysomething founder, Chris Zane sells the most bikes in the New Haven, Connecticut, area. To many people, Chris Zane is the epitome of today's manager. Zane had a lot of faith in his ability to be successful. He learned all he could in college about running a business--particularly focusing on satisfying customers and implementing new and creative techniques to achieve his goals.

Cross-Cultural Management

When those two competitors went out of business, he negotiated a deal with the phone company. He agreed to pay the remainder of the two companies' Yellow Page advertising. Callers to either of those numbers heard not only, "The number you are calling is no longer in service," but also, "If you are in need of a bicycle dealer, Zane's Cycles will be happy to serve you." By pressing zero, the caller is automatically transferred to Chris!

Cross-Cultural Management

Chris recognized that he had to give the appearance of being a larger business--especially if he wanted to expand nationwide and possibly abroad. He contracted with a marketing co-op firm to develop a thirty-two-page mail-order catalog. Although his creativity had boosted sales, Zane recognized

that most of his business came from customers who visited

the shop. He hired sales representatives and gave them the freedom to make whatever decisions they needed to please the

customer and make a sale.

Cross-Cultural Management

But ringing up an "immediate" sale is not the primary focus. If customers need a bike part--a tire valve cap or a chain link-salespeople simply give it to them. The store also gives away cellular phones so bike riders can keep in touch with others or be prepared to make a call for assistance if needed. Zane also believes that any successful business owes its success to the community that supports it. It's a relationship that must be nurtured.

Cross-Cultural Management

Question 1
Identify and describe the entrepreneurial spirit
exhibited by Chris Zane. How has this affected his business?

Cross-Cultural Management

Entrepreneurial Spirit
Entrepreneurship is the process of initiating a
business venture, organizing the necessary resources, and assuming the risks and rewards. Entrepreneurs usually start small business--one that has fewer than 500 employees.

Cross-Cultural Management

2. a) b) (1) (2)

Why the increased popularity? There has always been a segment of the population that wanted to control its own destiny. Recent changes in the economy have stimulated interest in being one's own boss. Corporate downsizing. Self-employment opportunity financed in part by their

severance pay or early retirement bonus.

Cross-Cultural Management

(3)

Others see colleagues and friends lose their jobs

and voluntarily cut their corporate ties and choose self-employment. (4) Growing options in franchising.

Less risk. Lower failure rate.

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Cross-Cultural Management

Answer to Question 1
He exceeded customer expectations and competitors'
offers. Taking over the phone numbers of defunct competitors was an act of genius. Giving salespeople the power to make decisions to make the sales. Focusing on customer needs, etc.

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Cross-Cultural Management

Question 2 and its answer

Do you believe that Chris Zane endorses the concept that the
"customer is king"? Support your position with examples. Answer- Letting customers browse, giving away items to meet

customer needs, hiring knowledgeable sales people who help

and advise, etc.

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Cross-Cultural Management

Total Quality Management

Continuous improvement Employee empowerment Accurate measurement Customer focus Overall quality

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Cross-Cultural Management

Question 3
Is Chris Zane a socially responsible employer? Does
your opinion change when you consider some of the socially responsible actions he takes has helped him achieve a 700 percent return on investment?

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Cross-Cultural Management

Arguments for Social Responsibility

Public expectations
Long-run profits Ethical obligations

Public relations image

Better environment

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Cross-Cultural Management

Arguments for Social Responsibility

Fewer government regulations

Balance of responsibility and power

Stockholder interests Possession of resources Prevention versus cures
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Cross-Cultural Management

Arguments Against Social Responsibility

Violation of profit maximization
Dilution of purpose Costs outweigh benefits

Too much power

Lack of skills Lack of accountability Lack of broad public support

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Cross-Cultural Management

Answer to Question 3
Yes, hes heavily involved with the community and
places the customer first. The fact he has a positive business/profit outcome does not diminish the social responsibility of his actions.

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Cross-Cultural Management

Case 2:

Application Case in Chapter 4

Cross-Cultural Management

Question 1
What type of grand strategy(ies) have Chao pursued?
Cite specific examples.

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Cross-Cultural Management

Answer to Question 1
None of the strategies fit directly, the closest being
growth--growth through more sales revenues, more employees, or more market share, through direct expansion, new product development, quality improvement.

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Cross-Cultural Management

Question 2
Michael Porter identified three generic strategies
that companies can follow to develop a competitive advantage. Which one of the three do you believe Chao is primarily using? Discuss and support your choice.

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Cross-Cultural Management

Answer to Question 2
Focus (uniqueness in a narrow market) strategy. He
chose to go after market segments where sales rarely exceeded $10 million and where little drug name recognition existed.

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Cross-Cultural Management

Question 3
What characteristics does Allen Chao possess that
indicates he is an entrepreneur? Give specific examples.

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Cross-Cultural Management

Answer to Question 3
A number of common characteristics have been found; hard
work, self-confidence, optimism, determination, a high energy level, and even good luck. Entrepreneurs have a high need for

achievement. They believe strongly that they can control their

own destinies. They take only moderate risks. His persistence in face of obstacles, giving up so much of his company to get

money, the continually execution of a very focused strategy,

etc.

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Cross-Cultural Management

Case 3:

Application Case in Chapter 5

Cross-Cultural Management

Question 1
1. What types of problems do you see Loida Lewis
having to deal with in this case? Explain.

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Cross-Cultural Management

Answer to Question 1
Poorly structured.
(1)Lewis did not have the business acumen or the experience of her late husband. (2)The company was losing money.

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Cross-Cultural Management

Question 2
2. What decisions did Loida Lewis make that helped
turn around the ailing company? Would you classify them as programmed or non-programmed? Why?

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Cross-Cultural Management

Answer to Question 2
She made several major decisions, paring down the company to

enhance its core business operations. She sold off the company
limousine and the jet, cut headquarter staff in half, and sold off many of the less-profitable companies, focusing on reducing

Beatrice's debt. These are all non-programmed to the company,

but would be "standard" decisions to save a company money.

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Cross-Cultural Management

Question 3
3. How would you describe Lewis' decision-making
style? Cite specific examples.

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Cross-Cultural Management

Answer to Question 3
Behavioral style. (Think intuitively but has a low tolerance for
uncertainty) She began molding it in her image. She involves her inner group

in decisions and uses compassion to develop a "focused,

disciplined, sensitive, and collegial atmosphere."

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Cross-Cultural Management

Case 4: Application Case in Chapter 6 Developing Your Diagnostic and Analytical Skills

Cross-Cultural Management

Question 1
1. Would you describe ABB as more of a mechanistic
or an organic organization? Explain and use specific examples to support your position.

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Cross-Cultural Management

Answer to Question 1
It probably was mechanistic but became organic. The
redesign made ABB highly adaptive, focused on the ability to change rapidly as needed, and used professionals who are technically proficient and trained to handle diverse problems.

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Cross-Cultural Management

Question 2
2. Describe how technology and communications
have affected ABB's organizational structure.

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Cross-Cultural Management

Answer to Question 2
Students answers will vary based on their assumptions,

as the case is not explicit in regards to these elements.

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Cross-Cultural Management

Question 3
3. How would you describe the characteristics of ABB's
culture?

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Cross-Cultural Management

Answer to Question 3
Students' responses will vary.

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Cross-Cultural Management

Case 5:
You are riding in a car driven by a close friend. He hits a man. You know he was going at least 35 miles per hour in an area of the city where the maximum allowed speed is 20 miles per hour. There are no witnesses. His lawyer says that if you testify that he was driving 20 miles per hour it may save him from serious consequences.

Cross-Cultural Management

Question 1
1. What right has your friend to expect you to protect him?

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Cross-Cultural Management

Answer to Question 1

My friend has a definite right as a friend to expect me to testify. He has some right as a friend to expect me to testify. He has no right as a friend to expect me to testify.

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Cross-Cultural Management

Question 2
2. Will you testify that your friend was driving 20 miles
per hour?

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Cross-Cultural Management

Answer to Question 2
Yes. No.

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Cross-Cultural Management

Case 6:
On a beautiful deserted island in the middle of nowhere, the following people are suddenly stranded by a shipwreck: 2 Italian men and 1 Italian woman 2 French men and 1 French woman 2 German and I German woman 2 Greek men and 1 Greek woman 2 English men and 1 English woman 2 Bulgarian men and 1 Bulgarian woman 2 Japanese men and 1 Japanese woman 2 Chinese men and 1 Chinese woman 2 American men and 1 American woman 2 Irish men and 1 Irish woman
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Cross-Cultural Management

One month later on the same absolutely stunning deserted island in the middle of nowhere, the following things have occurred: One ___________ man killed the other ___________ man for the woman. The two ___________ men and the ___________ woman are living happily together in a house. The two ___________ men have a strict weekly schedule of alternating visits with the ___________ woman.
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Cross-Cultural Management

The two ___________ men are sleeping with each other and the ___________ woman is cleaning and cooking for them. The two ___________ men took one long look at the endless ocean, and another long look at the ___________ woman, and started swimming. The two ___________ men have faxed Tokyo and are awaiting instructions. The two ___________ men have set up a pharmacy, a liquor store, a restaurant and a laundry, and have got the ___________ woman pregnant in order to supply employees for their stores.
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Cross-Cultural Management

The two ___________ men are contemplating the virtues of suicide because the ___________ woman keeps endlessly complaining about her body; the true nature of feminism; how she can do everything they can do; the necessity of fulfilment; the equal division of household chores; how sand and palm trees make her look fat; how her last boyfriend respected her opinion and treated her nicer than they do; but how her relationship with her mother is improving and how at least the taxes are low and it isnt raining.
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Cross-Cultural Management

The two ___________ men are waiting for someone to introduce them to the ___________ woman. The two ___________ men have divided the island into North and South and set up a distillery. They do not remember if sex is in the picture because it gets sort of foggy after the first few litres of coconut whisky. But theyre satisfied because at least the English arent having sex either.
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Cross-Cultural Management

 One month later on the same absolutely stunning deserted island in the middle of nowhere, the following things have occurred: One Italian man killed the other Italian man for the woman. The two French men and the French woman are living happily together in a house. The two German men have a strict weekly schedule of alternating visits with the German woman. The two Greek men are sleeping with each other and the Greek woman is cleaning and cooking for them.

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Cross-Cultural Management

The two Bulgarian men took one long look at the endless ocean, and another long look at the Bulgarian woman, and started swimming. The two Japanese men have faxed Tokyo and are awaiting instructions. The two Chinese men have set up a pharmacy, a liquor store, a restaurant and a laundry, and have got the woman pregnant in order to supply employees for their stores.

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Cross-Cultural Management

The two American men are contemplating the virtues of suicide because the American woman keeps endlessly complaining about her body; the true nature of feminism; how she can do everything they can do; the necessity of fulfilment; the equal division of household chores; how sand and palm trees make her look fat; how her last boyfriend respected her opinion and treated her nicer than they do; but how her relationship with her mother is improving and how at least the taxes are low and it isnt raining.

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Cross-Cultural Management

The two English men are waiting for someone to introduce them to the English woman.
The two Irish men have divided the island into North and South and set up a distillery. They do not remember if sex is in the picture because it gets sort of foggy after the first few litres of coconut whisky. But theyre satisfied because at least the English arent having sex either.

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Cross-Cultural Management