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Case Analysis Assignment

Review ​one ​of the cases in your text from page 99-120. In a minimum of ​ten pages​, answer the questions for review fully, using a minimum of ​5 sources​, not including your text.

Requirements:

● Double spaced in APA format

● 10 pages

● 5 reputable outside sources (not including your text--this should be listed as an additional
source on your reference page)

● You will be graded on your writing, research, understanding of the case, and the general
content/format of your paper.

International Management Culture, Strategy, and Behavior

Ninth Edition

Fred Luthans University of Nebraska–Lincoln

Jonathan P. Doh Villanova University

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INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, NINTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2015 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2012, 2009, and 2006. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

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ISBN 978-0-07-786244-2 MHID 0-07-786244-9

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Library of Congress Cataloging-in-Publication Data

Luthans, Fred. International management : culture, strategy, and behavior / Fred Luthans, University

of Nebraska-Lincoln, Jonathan P. Doh, Villanova University.—Ninth edition. pages cm

ISBN-13: 978-0-07-786244-2 (alk. paper) ISBN-10: 0-07-786244-9 1. International business enterprises—Management. 2. International business

enterprises—Management—Case studies. I. Doh, Jonathan P. II. Title. HD62.4.H63 2014 658'.049—dc23

2013039863

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.

www.mhhe.com

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iii

Dedicated in Memory of

Richard M. Hodgetts A Pioneer in International Management Education

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v

Preface

C hanges in the global business environment continue at a rapid and often unpredict-able pace. The global financial crisis and economic recession of 2008–2010 have given way to destabilizing political changes in many regions of the world, especially North Africa and the Middle East (see Chapter 2 opening article). In addition, rapid advances in social media have not only accelerated globalization but also provided a means for those who seek political and economic changes to organize and influence their leaders for more responsible governance (see Chapter 1 opening article). In addition, concerns about the exhaustion of finite resources and the need to pursue more sustainable growth have prompted governments, companies, and NGOs to consider alternate approaches to business and gov- ernance (see Chapter 3 opening article).

Some of these developments have challenged assumptions about globalization and economic integration, but they also underscore the inexorably interconnected nature of global economies. Although many countries and regions around the world are closely and inextricably linked, important differences in institutional and cultural environments persist, and some of these differences have become even starker in recent years. The challenges for international management reflect this dynamism and the increasing unpre- dictability of global economic and political events. Continued growth of the emerging markets is reshaping the global balance of economic power, even though differences exist between and among regions and countries. Although many emerging markets continued to experience growth during a period when developed countries’ economies stagnated or declined, some developed economies bucked this trend and some developing countries did not share in what was otherwise a dynamic period for the emerging world.

The global political and security environment remains unpredictable and volatile, with ongoing conflicts in the Middle East and Africa and continuing tensions in Iran, North Korea, Iraq, and Afghanistan. On the economic front, although little progress was made in the efforts to conclude a global multilateral agreement under the World Trade Organization (WTO), regional and bilateral agreements have proliferated, including the Trans-Pacific Partnership (TPP), a proposed free-trade agreement that would involve more than a dozen countries in the Americas and Asia. In addition, the tragic fire, building collapse, and other industrial accidents in India, Bangladesh, and China have renewed calls for corporations to do more to protect workers and for governments to get tougher with companies in terms of oversight and accountability. (See Chapter 3 for additional discussion.)

As noted above, the advent of social networking has transformed the way citizens interact, how businesses market, promote, and distribute their products globally, and how civil society expresses its concerns that governments provide greater freedoms and accountability. Concurrently, companies, individuals, and even students can now engage in broad “mass” collaboration through digital, online technology for the development of new and innovative systems, products, and ideas. Both social networking and mass col- laboration bring new power and influence to individuals across borders and transform the nature of their relationships with global organizations. Although globalization and tech- nology continue to link nations, businesses, and individuals, these connections also high- light the importance of understanding different cultures, national systems, and corporate management practices around the world. The world is now interconnected geographically, but also electronically and psychologically; as such, nearly all businesses have been touched in some way by globalization. Yet, as cultural, political, and economic differences persist, astute international managers must be in a position to adapt and adjust to the vagaries of different contexts and environments.

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vi Preface

In this new ninth edition of International Management , we have retained the strong and effective foundations gained from research and practice over the past decades while incorporating the important latest research and contemporary insights that have changed the context and environment for international management. Several trends have emerged that pose both challenges and opportunities for international managers. First, emerging markets continue to rise in importance, with dynamic growth and development in many emerging regions and countries. This includes the emergence of multinationals from emerging markets that are becoming globally competitive. Second, pressure for greater social and environmental responsibility among multinational organi- zations has increased, especially in light of rising pollution and the exposure of poor working conditions in many factories around the world. Third, the importance of cultural differences continues to be an omnipresent reality for international managers. And social media and other forms of electronic connectivity continue to facilitate international busi- ness of all sorts. Although we have extensive new, evidence-based material in this edition, we con- tinue to strive to make the book even more user-friendly and applicable to practice. We continue to take a balanced approach in the ninth edition of International Management: Culture, Stra t egy, and Behavior . Whereas other texts stress culture, strategy, or behavior, our emphasis on all three critical dimensions—and the interactions among them—has been a primary reason why the previous editions have been the market-leading international management text. Specifically, this edition has the following chapter distribution: environ- ment (three chapters), culture (four chapters), strategy (four chapters), and organizational behavior/human resource management (three chapters). Because the context of interna- tional management changes rapidly, all the chapters have been updated and improved. New real-world examples and research results are integrated throughout the book, accentuating the experiential relevance of the straightforward content. As always, we emphasize a bal- ance of research and application. For the new ninth edition we have incorporated important new content in the areas of sustainability and sustainable management practices, the emergence and role of social media as a means of transacting business around the world, the rise of emerging market multinationals and the challenges they pose for developed country MNCs, and other important developments in the international management field. Many of these topics— such as social media—are integrated throughout the book, as they touch on—and influence—many aspects of international management. We have incorporated the latest research and practical insights on pressure for MNCs to adopt more sustainable practices, and the strategies many companies are using to differentiate their products through such “green” management practices. We have updated discussion of a range of contemporary topics, including continued exploration of the role of the comprehensive GLOBE study on cross-cultural leadership. A continuing and relevant end-of-chapter feature in this edition is the “Internet Exercise.” The purpose of each exercise is to encourage students to use the Internet to find information from the websites of prominent MNCs to answer relevant questions about the chapter topic. An end-of-book feature is a series of Skill-Building and Experi- ential Exercises for aspiring international managers. These in-class exercises represent the various parts of the text (culture, strategy, and behavior) and provide hands-on experience. We have extended from the eighth edition of International Management the chapter- opening discussions called “The World of International Management” (WIM) based on very recent, relevant news stories to grab readers’ interest and attention. Many of these opening articles are new to this edition and all have been updated. These timely opening discussions transition the reader into the chapter topic. At the end of each chapter, there is a pedagogical feature that recapitulates the chapter’s subject matter: “The World of International Management—Revisited.” Here we pose several discussion questions based on the topic of the opening feature in light of the student’s entire reading of the chapter. Answering these questions requires readers to reconsider and to draw from the chapter material. Suggested answers to these “WIM—Revisited” discussion questions appear in

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Preface vii

the completely updated Instructor’s Manual, where we also provide some multiple-choice and true-false questions that draw directly from the chapters’ World of International Management topic matter for instructors who want to include this material in their tests. The use and application of cases is further enhanced in this edition. All cases have been updated and several new ones have been added. The short within-chapter country case illustrations—“In the International Spotlight”—can be read and discussed in class. These have all been revised and two have been added—Turkey and Indonesia. The revised or newly added “Integrative Cases” positioned at the end of each main part of the text were created exclusively for this edition and provide opportunities for reading and anal- ysis outside of class. Review questions provided for each case are intended to facilitate lively and productive written analysis or in-class discussion. Our “Brief Integrative Cases” typically explore a specific situation or challenge facing an individual or team. Our lon- ger and more detailed “In-Depth Integrative Cases” provide a broader discussion of the challenges facing a company. These two formats allow maximum flexibility so that instructors can use the cases in a tailored and customized fashion. Accompanying many of the in-depth cases are short exercises that can be used in class to reinforce both the substantive topic and students’ skills in negotiation, presentation, and analysis. The cases have been extensively updated and several are new to this edition. Cases concerning the global AIDS epidemic, Dansko, Russell Athletics/Fruit of the Loom, Euro Disneyland and Disney Asia, Google in China, IKEA, HSBC, Nike, Walmart, Tata, AirAsia, Sony, Danone, Chiquita, Coca-Cola, and others are unique to this book and specific to this edition. Of course, instructors also have access to Create (www.mcgraw-hillcreate.com), McGraw-Hill’s extensive content database, which includes thousands of cases from major sources such as Harvard Business School, Ivey, Darden, and NACRA case databases. Along with the new or updated “International Management in Action” boxed appli- cation examples within each chapter and other pedagogical features at the end of each chapter (i.e., “Key Terms,” “Review and Discussion Questions,” “The World of Interna- tional Management—Revisited,” and “Internet Exercise”), the end-of-part brief and in- depth cases and the end-of-book skill-building exercises and simulations on the Online Learning Center complete the package. To help instructors teach international management, this text is accompanied by a revised and expanded Instructor’s Resource Manual, Test Bank, and PowerPoint Slides, all of which are available password protected on the Online Learning Center at www. mhhe.com/luthans9e. Another important innovation is carried over and updated from the 8th edition: we have provided instructors with a guide to online publicly available videos, many available on YouTube, that link directly to chapter themes. These short clips give instructors an opportunity to use online visual media in conjunction with traditional lecture, discussion, and PowerPoint presentations. Our guide includes the name, short description, and link for the videos, which we will keep updated on the book website. International Management is generally recognized to be the first “mainstream” text of its kind. Strategy casebooks and specialized books in organizational behavior, human resources, and, of course, international business, finance, marketing, and economics pre- ceded it, but there were no international management texts before this one, and it remains the market leader. We have had sustainability because of the effort and care put into the revisions. We hope you agree that this ninth edition continues the tradition and remains the “world-class” text for the study of international management.

Acknowledgments

We would like to acknowledge those who have helped to make this book a reality. We will never forget the legacy of international management education in general and for this text in particular provided by our departed colleague Richard M. Hodgetts. Special thanks also go to our growing number of colleagues throughout the world who have given us many ideas and inspired us to think internationally. Closer to home, Fred Luthans would

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viii Preface

like to give special recognition to two international management scholars: Henry H. Albers, former Chair of the Management Department at the University of Nebraska and former Dean at the University of Petroleum and Minerals, Saudi Arabia, to whom previ- ous editions of this book were dedicated; and Sang M. Lee, former Chair of the Manage- ment Department at Nebraska, founding and current President of the Pan Pacific Business Association, and close colleague on many ventures around the world over the past 30 years. Jonathan Doh would like to thank the Villanova School of Business and its leadership, especially Dean Pat Maggitti, Vice Dean Daniel Wright, and Herb Rammrath who generously endowed the Chair in International Business Jonathan now holds. Also, for this new ninth edition we would like to thank Ben Littell, who did much of the research and drafting of the chapter opening World of International Management features and provided extensive research assistance for other revisions to the book. In addition, we would like to acknowledge the help that we received from the many reviewers from around the globe, whose feedback guided us in preparing the ninth edition of the text. These include:

Thomas M. Abbott, Post University

David Elloy, Gonzaga University

James Gran, Buena Vista University

Julie Huang, Rio Hondo College

Jae C. Jung, University of Missouri– Kansas City

Emeric Solymossy, Western Illinois University .

Our thanks, too, to the reviewers of previous editions of the text:

Yohannan T. Abraham, Southwest Missouri State University Janet S. Adams, Kennesaw State University Irfan Ahmed, Sam Houston State University Chi Anyansi-Archibong, North Carolina A&T State University Kibok Baik, James Madison University R. B. Barton, Murray State University Lawrence A. Beer, Arizona State University Koren Borges, University of North Florida Tope A. Bello, East Carolina University Mauritz Blonder, Hofstra University Gunther S. Boroschek, University of Massachusetts–Boston Charles M. Byles, Virginia Commonwealth University Constance Campbell, Georgia Southern University Scott Kenneth Campbell, Georgia College & State University M. Suzanne Clinton, University of Central Oklahoma Helen Deresky, SUNY Plattsburgh Dr. Dharma deSilva, Center for Interna- tional Business Advancement (CIBA) Val Finnigan, Leeds Metropolitan University David M. Flynn, Hofstra University Jan Flynn, Georgia College and State University

Joseph Richard Goldman, University of Minnesota

Robert T. Green, University of Texas at Austin

Annette Gunter, University of Central Oklahoma

Jerry Haar, Florida International University–Miami

Jean M. Hanebury, Salisbury State University

Richard C. Hoffman, Salisbury State University

Johan Hough, University of South Africa

Steve Jenner, California State University–Dominguez Hills

James P. Johnson, Rollins College

Marjorie Jones, Nova Southeastern University

Ann Langlois, Palm Beach Atlantic University

Curtis Matherne III, East Tennessee State University

Alan N. Miller, University of Nevada, Las Vegas

Mohd Nazari Ismail, University of Malaya

Robert Kuhne, Hofstra University

Christine Lentz, Rider University

Ben Lever III, College of Charleston

Robert C. Maddox, University of Tennessee

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Preface ix

Douglas M. McCabe, Georgetown University

Jeanne M. McNett, Assumption College

Lauryn Migenes, University of Central Florida

Ray Montagno, Ball State University

Rebecca J. Morris, University of Nebraska–Omaha

Ernst W. Neuland, University of Pretoria

William Newburry, Rutgers Business School

Yongsun Paik, Loyola Marymount University

Valerie S. Perotti, Rochester Institute of Technology

Richard B. Peterson, University of Washington

Suzanne J. Peterson, University of Nebraska–Lincoln

Joseph A. Petrick, Wright State University

Juan F. Ramirez, Nova Southeastern University

Richard David Ramsey, Southeastern Louisiana University

Mansour Sharif-Zadeh, California State Polytechnic University–Pomona

Owen Sevier, University of Central Oklahoma

Jane H. Standford, Texas A&M University– Kingsville

Dale V. Steinmann, San Francisco State University

Randall Stross, San Jose State University

George Sutija, Florida International University

Deanna Teel, Houston Community College

David Turnipseed, University of South Alabama–Mobile

Katheryn H. Ward, Chicago State University

Li Weixing, University of Nebraska– Lincoln

Aimee Wheaton, Regis College

Timothy Wilkinson, University of Akron

Marion M. White, James Madison University

George Yacus, Old Dominion University

Corinne Young, University of Tampa

Zhe Zhang, University of Central Florida–Orlando

Anatoly Zhuplev, Loyola Marymount University

Finally, thanks to the team at McGraw-Hill who worked on this book: Paul Ducham, Managing Director; Anke Weekes, Senior Brand Manager; Kelly Delso, Senior Devel- opmental Editor; Lori Bradshaw, Managing Developmental Editor; Michael Gedatus, Marketing Manager; and Jessica Portz, Project Manager. Last but by no means least, we greatly appreciate the love and support provided by our families.

Fred Luthans and Jonathan P. Doh

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New and Enhanced Themes

• Thoroughly revised and updated chapters to reflect the most critical issues for international managers.

• Greater attention to and focus on global sustainability and sus tainable management practices and their impact on international management.

• New or revised opening World of International Manage- ment features written by the authors on current international management challenges; these mini-cases were prepared expressly for this edition and are not available elsewhere.

• Discussions of the impact of the global economic recession on international management in the opening chapter and throughout the book, and the aftermath and ongoing chal- lenges associated with the “Arab Spring” (in Chapter 2).

• New and updated discussions of project GLOBE and its importance for international management.

• Greater emphasis on emerging markets and developing countries, and the increasing influence of emerging markets multinationals on global competition.

Thoroughly Revised and Updated Chapter Content

• New or revised opening WIM discussions on topics includ- ing the global influences of social media, the role of social networking in the Arab Spring, sustainability as a global competitive advantage, Apple vs. Samsung, Amazon vs. Alibaba, global trends in the automotive and pharmaceuti- cal industries, managing global teams, offshoring and cul- ture, and many other subjects. These features were written expressly for this edition and are not available elsewhere.

• Updated and strengthened emphasis on ethics, social responsibility, and sustainability.

• Extensive coverage of Project GLOBE, its relationship to other cultural frameworks, and its application to inter- national management practice (Chapters 4, 13).

• Revised or new “In the International Spotlight” inserts which profile the key economic and political issues rel- evant to managers in specific countries, including new spotlights on Turkey and Indonesia.

• Greater coverage of the challenges and opportunities for international strategy targeted to the developing “base of the pyramid” economies (Chapter 8, and Tata cases).

LUTHANS Doh

x

DOH

The ninth

edition of

International

Management:

Culture, Strategy, and

Behavior is still

setting the standard.

Current authors Fred

Luthans and

Jonathan P. Doh have

taken care to retain

the effective

foundation gained

from research and

practice over the

past decades. At the

same time, they have

fully incorporated

important new and

emerging

developments that

have changed what

international managers

are currently facing and

likely to face in the

coming years.

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Thoroughly Updated and/or New Cases, Inserts, and Exercises

• New and/or updated country spotlights, “International Management in Action” features.

• Thoroughly updated cases (not available elsewhere): Pharmaceutical Companies, Intellectual Property, and the Global AIDS Epidemic ; Advertising or Free Speech ? The Case of Nike and Human Rights ; Beyond Tokyo: Disney’s Expansion In Asia ; HSBC in China ; Coca Cola in India ; Wa l mart’s Global Strategies ; Can Sony Regain its Innovative Edge? The OLED Project; Tata “ Nano ”: The People’s Car ; The A s cendance of AirAsia : Building a Successful Budget Airline; and Chiquita’s Global Turnaround .

• Brand new end-of-part cases developed exclusively for this edition (not available elsewhere): Dansko puts its Right Foot Forward , Google in China: Protecting Property and Rights; IKEA’s Global Renovations .

Totally Revised Instructor and Student Support

The following instructor and student support materials can be found on the Online Learning Center (OLC) for the Ninth Edition. You can access the OLC at www.mhhe.com/luthans9 e.

• The Instructor’s Manual offers a summary of Learning Objectives and teaching outline with lecture notes and teaching tips, as well as suggested answers to questions found throughout and at the conclu- sion of each chapter. Suggested answers are also provided for all the cases found in the book.

• The TestBank is offered in both Word and EZ Test formats and offers over 1,000 test items consisting of true/false, multiple choice, and essay. Answers are provided for all testbank questions.

• PowerPoint Presentations consisting of 30 slides per chapter give instructors talking points, feature exhibits from the text, and are summarized with a review and discussion slide.

• Student Quizzes are provided for each chapter and give students feedback to help them understand where additional study is required.

• A guide to videos available online, with title, short description, and url. • Create: Instructors can now tailor their teaching resources to match the

way they teach! With McGraw-Hill Create, www.mcgrawhillcreate. com , instructors can easily rearrange chapters, combine material from other content sources, and quickly upload and integrate their own con- tent, like course syllabi or teaching notes. Find the right content in Create by searching through thousands of leading McGraw-Hill text- books. Arrange the material to fit your teaching style. Order a Create book and receive a complimentary print review copy in 3–5 business

xi

CONTINUES TO SET THE STANDARD. . .

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xii Continues to Set the Standard. . .

days or a complimentary electronic review copy (echo) via e-mail within one hour. Go to www.mcgrawhillcreate.com today and register.

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