Psychological Aspects of International Business

Rick Politician
87345
5/20/2007
I BUS 300
Chapter 18 Homework
a.
Coco-Cola mainly utilizes a polycentric strategy for their managerial positions.  This means like to use local managers than run the business in each country.  Yet, they also like to send the up and coming managers on international assignments to provide international exposure and experience.

This policy makes sense.  Someone with an intimate knowledge of a country, especially a local, will be much better equipped to work in that country.  They will know the culture, the market and their employees much better than a foreign manager.

One drawback to this system is the close-minded management that will be developed in each country.  People from the same locality all think in a similar way.  These local managers will not produce new innovations.  Instead, infusing foreign minds in with the local ones will increase the creativity of each business location.  Also, the location will be more proactive about future advantages and market trends.

Pro’s

Less cultural misunderstandings
Less expensive, expatriates are expensive to fund

Cons

Communication difficulties between foreign managers
            Solved partially through Coca-Cola’s “global service program”
Local Managers cannot advance into corporate positions
            Not alluded to in case study
Manager cannot work in foreign countries for the long term, even if they want to

Coco-Cola’s strategy also has a couple benefits of a geocentric staffing approach.  The “global service program,” for instance, builds the cross-cultural communications network between managers.

 

 

 

 

 

b.

Self-Orientation

Harry, the manager of a local McDonald’s, goes on vacation for 1 week and places Bill, the assistant manager in charge of the McDonald’s while he’s gone.  After spending a lovely week of watching MASH reruns and renting movies from Blockbuster, Harry returns to work at McDonald’s Monday morning and the restaurant is disarray.  Two out of the five morning workers did not show up to work, the place looks like it hasn’t been cleaned since Harry left last week, one of the grills isn’t starting and they’re our of size large soft drink cups.  Harry tried to get a hold of Bill, but Bill’s not answering his phone.  If you were Harry, how would you react?

Others Orientation

Have you ever traveled outside the U.S. or Canada?  How did you communicate with the locals when you were there?  Tell me about the people you met over there.  Do you still keep in touch with these people?

Perceptual Ability

Are you a vegetarian?
(If yes) How do you feel about America’s love for hamburgers, steaks and chicken?
(If no)  What do you think about not eating any meat?