1) Among the enterprises that you know, can you identify one that can be qualified as a global

company? Why?
One possible example of a global company is Coca-Cola, which is a beverage company that operates in
more than 200 countries around the world1. Coca-Cola is a global company because it does business in at
least one country other than its home country (the United States), and it treats the world market as an
integrated whole. Coca-Cola also adapts its products and marketing strategies to fit with the local culture
and tastes of each country2. For instance, Coca-Cola offers different flavors and packaging sizes in
different regions, such as Thums Up in India, Inca Kola in Peru, and Smartwater in China3. Coca-Cola also
uses local celebrities and slogans to appeal to the consumers in each market4. By doing so, Coca-Cola
demonstrates a global mind-set and a customer-oriented approachola demonstrates a global mind-set and a
customer-oriented approach. Coca-Cola's global operations generate significant economic impact in the
countries where it operates. It creates employment opportunities, supports local businesses in its supply
chain, and contributes to tax revenues in multiple nations.

2. In Figure 1.8, why are saving accounts positioned low on global approach and high on local
approach while investment banking is high on global approach and low on local approach?

In Figure 1.8, the positioning of saving accounts and investment banking on the global and local
approaches can be explained as follows:
Saving accounts (Retail banking) are positioned low on the global approach and high on the local
approach because they benefit from local advantages such as flexibility, personal relationships, and
quick responsiveness to generate competitive advantages. Saving accounts primarily cater to the needs
of individual customers in a specific local market, and their operations are closely tied to local
banking regulations and consumer preferences. Therefore, they are more focused on meeting local
demands and adapting to the specific needs of the local market.
On the other hand, investment banking (Institutional banking) is positioned high on the global
approach and low on the local approach because its dominant global presence allows it to maintain a
competitive edge by operating in a synchronized manner worldwide. Investment banking primarily
serves institutional clients, such as corporations, governments, and large organizations, that require
global financial services and solutions. The nature of investment banking involves complex financial
transactions and services that are less dependent on local market dynamics and more on global market
trends, regulations, and economies of scale.
In summary, the positioning of saving accounts and investment banking in Figure 1.8 reflects the
differences in their focus, target customers, adaptability, and competitive advantages in the global and
local contexts.
3. In Figure 1.8, food retailing is positioned as a local business, with a very low globalization
score. However, in the press, companies like Tesco, Walmart or Carrefour are described as
‘global retailers’. Explain this discrepancy.
In Figure 1.8, the retail food industry is classified under category 2, which represents a competitive
situation where local advantages hold significant importance. This means that companies in the retail
food sector benefit from factors that are specific to each local market, such as understanding local
consumer preferences, adapting to local regulations, and building strong relationships with local
suppliers and partners.
Due to the localized nature of the retail food industry, the level of globalization is relatively low.
Companies operating in this sector often need to tailor their strategies and offerings to meet the
unique demands of each market they serve. This could involve sourcing locally-produced goods,
adapting product offerings to local tastes, and complying with country-specific regulations related to
food safety, labeling, and distribution.
However, there are global retailers such as Tesco, Walmart, and Carrefour that are considered
exceptions in the retail food industry. These companies have successfully achieved a high level of
globalization by expanding their market presence across multiple countries and regions around the
world. They have established a significant presence in key markets, often through strategic
acquisitions or partnerships with local retailers.
To maintain their global operations, these retailers employ a centralized approach to coordinate and
integrate their activities across different countries. They develop standardized processes, supply chain
management systems, and branding strategies that can be applied consistently across their
international operations. This allows them to benefit from economies of scale, streamline operations,
and maintain a cohesive global brand image.
4. What are the social factors that have pushed for globalization and which have been pushing
against it?
Social factors that have pushed for globalization
- Convergence of customers’ needs
- Emails, social networks, videos online
- Movies, series
International air transport and the diffusion of lifestyles by movies and TV series have increased the brand
awareness of consumers worldwide. Brands like Sony, Nike, Levi or Coca-Cola are known nearly everywhere, .
The convergence of customer behavior and needs is also facilitated by the urbanization and industrialization of
societies. The less cultural and the more technical the product, the more likely that it can be standardized and
appeal to consumers in all countries: smartphones, PCs, elevators, cranes, robots and internet platforms are
products for which national differences do not matter much.

Social factors that have pushed against globalization

- Cultural factors: Attitudes, Tastes, Behavior, Social codes

- Commercial factors: distribution, customization and responsiveness
- Technical factors: standards, spatial presence, transportation and languages
- Legal factors: regulation and national security issues
In the Asia Pacific region, for instance, personal relationship building rather than legal contracts is the normal
way to conduct business. One has to spend time and effort in building these personal ties, which in a US context
would be largely considered a waste of time. Nationalism can also be considered as an obstacle to globalization
to the extent that it promotes a return to trade protectionism and a retreat from international agreements in
certain societies. Operational complexities: Managing a global distribution network becomes more challenging
when practices differ from country to country.

For instance, the marketing and distribution of pharmaceutical products differs according to the country’s health
system. In some countries, such as Japan, doctors sell medicine, while in other countries pharmacists sell to
patients who get a refund (or not) from their insurance company, while in yet other cases pharmaceutical
products are delivered freely to the patient. Companies need to navigate diverse regulations, customs
procedures, and market conditions, which can increase operational complexities and costs, thus limiting
globalization.

Language can be an additional constraint to global approaches. This can be significant when it comes to
customer services, of which training services, personal banking, personal telecommunication and retailing are
examples.

Globalization would appear to be fully justified, but is in fact limited because of national security constraints.
Since the 2001 Twin Towers destruction in New York followed by a series of terrorist attacks in London,
Madrid, Moscow, Beirut, Nairobi and Paris, governments have adopted measures that constrain the movement
of people and products. Security becomes priority
 Chuong 2
1. What are the differences between an emerging country and a developing country?

Developing country Emerging country

not seen any significant growth in their have witnessed massive economic
economy due to sticking to growth due to the development of
industrial and technological sectors.
a high proportion of the population The increasing development of a
living in poverty. middle class;

limited access to education and A high degree of infrastructure and

healthcare, inadequate infrastructure educational investment;
rely primarily on agriculture A progressive shift from agriculture
to industry and services;

traditional growth practices such as development of industrial and

agriculture. technological sectors  mechanisms
play an increasing role.
less foreign investment, trade deficits, high foreign investment, surplus
currency devaluations, and high inflation trade, healthy cash balances and
rates. access to cheap capital.
have less favourable export conditions are more favourable to exports due
due to unfavourable trade terms, to business-friendly policies,
mounting import needs, and depleting increased domestic production, and
foreign exchange coffers. less reliance on agriculture.

2. Why does a growing middle class contribute to growth?

When looking at doing business in emerging countries, what drives demand is the ability of the consumer to
afford to purchase products and services. Interestingly, the demand for most mass consumer goods and their
related inputs is often triggered by the presence of an affluent middle class.

Emerging markets, particularly, experience what is known as the ‘middle-class effect’, which derives from
the skewed original nature of income distribution in emerging countries.

The middle-class population, because of its ability to consume beyond subsistence level, drives the demand
in consumer goods (both durable and fast moving) and services, as well as demand for the raw materials,
components and intermediate products that support these goods and services.

Chuong 3
4. Looking at Erin Meyer’s cultural mapping, what kind of problems would you
anticipate for a German manager in Indonesia?
Based on the cultural map by Erin Meyer, a German manager in Indonesia may
encounter the following challenges:

Communication between cultural backgrounds:In Germany, people tend to provide

straightforward information without hidden meanings, while in Indonesia, information
may be conveyed implicitly or with underlying messages.
Performance evaluation and negative feedback: In Germany, negative feedback is
often given directly and candidly, which can sometimes make it difficult for
employees but in Indonesia who are accustomed to receiving negative feedback
indirectly or with positive tones to soften the impact.

Decision-making: In Germany, decisions are often made through group consensus,

with input from team members to arrive at the best decision. In contrast, in Indonesia,
decisions may be made by the leaders themselves, which could potentially result in
dissatisfaction among team members who have limited input.

Trust: In Indonesia, trust is built on relationships, from family to social connections.

This can pose difficulties for German managers who rely on trust based on
demonstrated competence, job quality, and performance.

Disagreements: In Indonesia, disagreements are often viewed negatively, while in

Germany, they are seen as a positive aspect of constructive discussions. Therefore,
German managers may face challenges in conducting discussions and reaching
optimal outcomes.

Scheduling: In Germany, work tasks are typically organized in a sequential and time-
bound manner. However, in Indonesia, tasks are often scheduled concurrently, which
may lead to potential errors or challenges in task execution.

5. What cultural issues would you anticipate in a planned partnership between a

UK listed e-company and a Korean family conglomerate?
Corporate Culture: Family-owned businesses often prioritize long-term relationships,
loyalty, and hierarchy, while publicly listed companies tend to focus on shareholder
value, transparency, and accountability. This divergence in corporate culture can
affect decision-making processes, communication styles, and the overall approach to
business operations.
Additionally, if the UK company is specialized in a particular industry or sector, while
the Korean conglomerate is highly diversified, it can lead to further cultural
differences. The UK company may have a more focused and streamlined approach,
while the Korean conglomerate, with its diverse business portfolio, may have a
broader perspective and different strategic considerations.

National Culture: national cultural characteristics such as historical background,

educational systems, legal frameworks, social norms, and religious beliefs. These
differences can influence communication styles, decision-making processes,
approaches to hierarchy and authority, work-life balance expectations, and the
importance of personal relationships in business transactions.
For example, South Korean culture often emphasizes hierarchy and respect for
authority, while British culture may be more egalitarian and value individualism. This
contrast in power dynamics can affect how decisions are made, how feedback is
given, and how employees interact with superiors.
Moreover, historical, societal, and religious influences can shape values and attitudes
towards work, punctuality, risk-taking, and long-term planning. Understanding and
navigating these cultural differences is essential for effective collaboration and
building strong relationships between the two organizations.
6 How would you recommend an American manager plan a negotiation with a
Japanese counterpart?
Risk Acceptance: Unlike the high-risk tolerance commonly found in American work
culture, Japanese social culture often does not accept ambiguity and unpredictability.
Japanese individuals tend to avoid tasks they are not certain about and prefer to plan,
systematize, and adjust work plans to ensure that tasks are carried out smoothly and
effectively. Therefore, when negotiating with Japanese partners, American managers
should limit making high-risk decisions.
Emphasis on Collectivism: Japanese culture places a strong emphasis on the
collective and is averse to risk in individual decision-making. They typically do not
make conclusive decisions in the first meeting. They never outright say "no," never
completely reject another person's argument, and never interrupt negotiations as long
as harmony is maintained and they hold an advantageous position. American
managers should discard their individualistic approach when negotiating with
Japanese partners and instead form a team with multiple members, each responsible
for a specific area, during meetings with the Japanese counterparts.
Goodwill and Trust: A small yet crucial factor when negotiating with Japanese
individuals is the cultivation of goodwill and establishing trust. American managers
need to be skillful in their words and avoid making blunt judgments. They should
exercise patience, choose their words carefully, and refrain from making
straightforward judgments. Japanese individuals may cease negotiations if the other
party is perceived as too direct, lacking patience, or not adhering to the explicitly
stated rules and regulations between the two parties.