Tips for Going GlobalBarbara M Fowler, JD, LL.M
Management Development ConsultantApril 19, 2011
For Internal Use Only
What do your core values indicate should be considered? (example, worthy of trust, respect for each other, customer focused, winning)
What is the law in the country? What are the “common business practices”? How will this impact future decisions? How will this affect the company globally?
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Decisions
For Internal Use Only
Current PII Operations
3
Japan(1987, 2001)
Korea(1989)
Taiwan (1989)
China
India(JV 2008)
Poland (1998)
Italy(1990)
Brazil(1997)
Argentina (1998)
Mexico(2006)
For Internal Use Only
1. Market Attractiveness
2. Political and Economic Stability
3. Employment Law
4. Consumer Protection
5. Financial Picture
6. Regulatory Environment
7. Competitive Situation
8. Labor Pool for your industry
9. Synergies/Obstacles
10.Ease of Implementation
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Critical Factors To Consider
Overall Recommendation
Country Snapshot—Selected Data (2008)
82 million0.04%
1.280.0 years41.3 years
26.6%
20% of workers99%
US $1,976 billion1.61%
9.8% overallUS $ 50,000
31st of 100 countries28th of 100 -Low
81st of 100 countries
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Agnieska Bonanza
PopulationPopulation Growth (annual)
Fertility (births/woman)Life expectancy
Median Age% of Pop. under age 25
% Univ. Grad, Target Cities Literacy Rate
GDP (US$ basis)Inflation
UnemploymentAverage Income
Corruption IndexCountry Risk
Business Friendly Environment
88. million1.53%2.49
74 years23.8 years
54.0%
15% of people over 1592%
US $637 billion4.78%
9.8% overallUS$30,000
72nd of 100 countries68th of 100-Moderate to High
30th of 100 countries
For Internal Use Only
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Country Indexes
With one being the best country and 100 the worst country,
CORRUPTION INDEX -- Agnieska is at 31 and Bonanza is at 72.
COUNTRY RISK – Agnieska is at 28 and Bonanza is at 68.
BUSINESS FRIENDLY ENVIRONMENT - Agnieska is at 81 and Bonanza is at 30.
For Internal Use Only
For Internal Use Only77
Agnieska
• Large, Stable Middle Class
• High Income Taxes
• Disability, Unemployment, Retirement Support
• Low Birth Rate
• Established Industries
For Internal Use Only
Class Disparity Rapidly Growing Middle Class Women leave work force when children
born Industry just beginning Low Government Benefits
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Bonanza
For Internal Use Only
Will we find sufficient number of candidates?
Will these candidates be able to develop the markets?
Will they be willing to work long hours? 2300/1700
What about entrepreneurial spirit? Do workers here want more security or more opportunity?
How do people feel about careers?
9
Labor Pool
For Internal Use Only
In Bonanza, English speaking management salaries are very high and specialists are recruited heavily. Turnover is high.
In Agnieska, there are many labor suits and the employee usually wins.
In Bonanza, the concept that hard work brings success is not believed. In Agnieska, it is part of the culture.
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Other Issues
For Internal Use Only
You have been asked to lead a team of five ex-pats to start the operation. The team is told that they will be in-country for approximately 18 to 24 months.
What are your concerns? What about your family? Will you accept this opportunity? What about when you come back?
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The Decision Has Been Made
For Internal Use Only
Free Coffee
Broken Leg
Maternity Leave
University Classes
Marriage Leave
Company Money
Volunteer Activity
Lunches
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Issues that arise in first year
For Internal Use Only
1. There are two final candidates for the CEO position. Both are good. One is especially well regarded for his people development skills but his English language skills are average at best. The other is highly regarded for her financial acumen and her English is excellent. How important are the language skills?
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Questions:
For Internal Use Only
2. You install a coffee/tea machine with a nominal fee. However, you quickly learn that many employees are upset. They expected complimentary coffee/tea. Should you provide it?
3. You are interviewing a candidate for a Director position. In answer to several questions during the interview, the candidate starts by saying, “I talked to my psychologist about this” or “My psychologist and I discussed this.”
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Questions:
For Internal Use Only
4. You are interviewing one of the finalists for the IT manager position. The in-country executive asks what is the candidates blood type. He later explains that A blood type is better for IT and he prefers that candidate for the position.
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Questions
For Internal Use Only
5. You are driving with your child and are stopped by a policeman but do not understand why. Local custom is to give the policeman your license with a 20 dollar bill wrapped around it. You do not know the language but it is apparent the policeman is expecting this.
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Questions
For Internal Use Only17
Mr. Toilet
For further questions, contact me at [email protected]
Thank you!