Post on 01-Apr-2015
Enterprise without BordersVolunteer Classroom Visit (90’)
Context
Enterprise without Borders is a JA-YE company program for Secondary Level students. It will help give you an understanding of the international business environment in which we all live todayYou will also have the chance to develop a business enterprise working with other students in schools in other countries so you can also learn more about their cultures and how to collaborate togetherAccenture, a global consulting and outsourcing business, is the primary corporate sponsor of the program
Enterprise without Borders Programme
European Partners
Regional Partner
Introductions
Introducing our volunteer for today
Themes of Globalisation
What is globalisation?How has the world been changing in the last 10 or so years and how is this affecting business?What are some of the trends for the future?
Examples of Multinational/Global companies
Why did they go GLOBAL?
What is Globalisation?
It is the process by which the world is becoming increasingly interconnected as a result of the acceleration of international trade and cultural exchange.
From an economic perspective...It is the ‘reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor’ (United Nations definition)
Globalisation has been taking place for hundreds of years, but has speeded up enormously over the last twenty years
Why is Globalisation accelerating?
A number of important reasons....
Picture credit - ESA
Why is Globalisation accelerating?
Bringing down barriers to trade across the world
International trade in manufactured goods increased more than 100 times (from $95 billion to
$12 trillion) in the 50 years since 1955.
China's trade with Africa rose sevenfold during the period 2000-07 alone
What other impacts is Globalisation having?
ResourcesInnovation
People and Skills
MoneyNew
Consumers
The Multi-Polar World
Positive and
negative impacts
How has Globalisation affected growth of countries?
Source: Economist Intelligence
Unit
A changing leaderboard – the Worlds biggest economies2030F20081990
United States
China
Japan
India
Germany
United States
Japan
Russia
Germany
France
China
United States
India
Japan
Brazil
Russia
United Kingdom
France
Brazil
Italy
Italy
United Kingdom
China
Brazil
India
Russia
Germany
United Kingdom
France
Mexico
1
2
3
4
5
6
7
8
9
10
Which country has the largest economy in the world?Which economies are growing fastest?
Still a wide range of income per person
World map showing countries above and below the world GDP (PPP) per capita, currently $10,500.
blue above world GDP (PPP) per capita, orange below world GDP (PPP) per capita
Source: CIA World Factbook 2009.
The world’s top 10 richest people in 2010 (worth a combined $340 billion) included 2 Indians, 1
Brazilian and 1 Mexican. China has 477,000 millionaires (4th highest in the
world) and India 127,000
United States still leads with 2.87 million millionaires, followed by
Japan's 1.65 million and Germany's 860,00.
What does “going global” mean to business?
?
The Growth of Multi-National Companies (MNCs)
Different business models in working globally
Balancing global/regional/local
Multi-Local ModelDecentralised, independently run marketsLocal planning and execution of global brandsLocal manufacturing and supply chain footprint
Regional/Functional ModelRegional management units Regional integration of supply chain/back office
Global modelShared services establishedfor back office functionsGlobal planning and local execution of global brands
Super Global Super Local ModelNetworked business models across internal and external boundaries
Degree Of Centralisation
ILLUSTRATIVE
Collaboration between companies –
Understanding JVs"...a win /win collaboration between two or more entities, sharing resources to solve common problems, build new opportunities, and achieve goals.“Combining capabilities, using each others networks and market presence, reducing competitionDifferent models from fully combined operations and finances, to looser partnerships..but must be fully declaredExamples – some successful, others less so
Cultural Awareness Understanding
Cultural perceptions - understanding differences as well as similarities across countriesUnderstanding different cultural dimensions and why this is relevant for businessQuiz to see how well you recognise cultural norms
Why are cultural differences important?
In an ideal world ...the policemen would be English the car mechanics would be German the cooks would be French the fashion designers would be Italian, and the bankers would be Swiss
In a living hell ...the policemen would be German the car mechanics would be French the cooks would be English the fashion designers would be Swissand the bankers would be Italian
Is this a fair representation of cultural differences?
Ways of understanding cultural differences
Most recognised way of understanding – Prof Geert Hofstede and his index of countries based on 5 key dimensions
Power Distance – how hierarchical a society is – is power always from the top or distributed evenly
Individualism – is individual success more important than group success and are individuals bound in to tight groups, e.g. strong family vs loose ties between people
Masculinity – is the culture typically assertive and task oriented or more collaborative and relationship oriented
Uncertainty Avoidance – is the culture less accepting of uncertainty, uses reason vs emotion, low risk-aversion and tolerance of different views
Time Orientation – is behaviour more about saving for the future or spending today, low concern for time, emphasis on long term goals
Regional cultural comparisons
Japan, Korea North America, UK
Nordic/ North Europe
Latin/South Europe
Power Distance
High Low Low High
Masculinity High High Low High
Individualism Low High High Low
Uncertainty Low High High Low
Time Orientation
High Low Low High
Cultural Understanding Quiz
Work in pairsTake a blank sheet of paper and a pen/pencilRead each question and mark the option you consider correctIf you and you peer have different opinions, discuss and agree on the right optionYou have three minutes to answer the questions 1-6 and another three for 7-12
Cultural Understanding Quiz
1. Which country indicate most values collective networks and community vs individuality – Hungary, Greece, Denmark, Ireland?
2. Which group are most tolerant of silent breaks in conversations – Germans, British, Italians, Scandinavians?
3. In which country can laughter most often be seen as a sign of confusion, insecurity or embarrassment – Spain, Italy, Japan, United States?
4. Which physical gesture, commonly recognised in the western world as an affirmative, can be seen as offensive in places such as Russia, the Middle East and even parts of Greece – clapping your hands, the "thumbs-up“, a downward nod, an open smile?
5. In the UK, to compromise is seen as a positive sign of both parties winning – true or false?
6. In which cultures do people most look for consensus and involvement in making decisions - Nordic countries, Mediterranean countries, Germanic cultures, Eastern European countries?
Cultural Understanding Quiz
7. In which country would it be least acceptable to go above your superior or openly speak out – France, Russia, Germany, Portugal
8. In which cultures is being boisterous in the streets and public places most widely accepted – Mediterranean cultures, Nordic cultures, Anglo-Saxon cultures
9. In which country if you tread on someone’s foot would you expect them to say sorry – Japan, Brazil, Greece, England?
10. Where can be up to 30 minutes late and still be on time – Italy, Sweden, Czech Republic, Switzerland?
11. Which country would you expect to kiss an acquaintance on the cheek three times – England, Greece, Poland, Netherlands?
12. Which country would you make sure the rules were followed and everything was explained clearly – France, Spain, Belgium, Italy
Cultural Understanding Quiz - Answers
1. Which country indicate most values collective networks and community vs individuality – Greece
2. Which group are most tolerant of silent breaks in conversations – Scandinavians
3. In which country can laughter most often be seen as a sign of confusion, insecurity or embarrassment – Japan
4. Which physical gesture, commonly recognised in the western world as an affirmative, can be seen as offensive in places such as Russia, the Middle East and even parts of Greece – the thumbs-up
5. In the UK, to compromise is seen as a positive sign of both parties winning – true
6. In which cultures do people most look for consensus and involvement in making decisions - Nordic countries
Cultural Understanding Quiz - Answers
7. In which country would it be least acceptable to go above your superior or openly speak out – Russia
8. In which cultures is being boisterous in the streets and public places most widely accepted – Mediterranean cultures
9. In which country if you tread on someone’s foot would you expect them to say sorry – England
10. Where can be up to 30 minutes late and still be on time – Italy
11. Which country would you expect to kiss an acquaintance on the cheek three times – Netherlands
12. Which country would you make sure you carefully explained everything leaving little room for doubt – Belgium
What does this all mean to you?
What opportunities does globalisation offer to you?What skills will be most important to develop?How might I build those skills?What aspects do you find most interesting or most challenging?
What does this all mean to you?
What opportunities does the globalisation offer to a person like you?
What skills will be most important to develop?
How might I build those skills?
What aspects do you find most interesting or most challenging?
A person you may know
Picture credit - Wikipedia
Group discussion - Skills for the future
Divide into groups – quickly!Assign roles in the groups (who takes notes, who checks the time, who will speak for the group)
Discussion topics:Think about yourselves 10 years down the road and how globalisation may have further impacted how we live and workBrainstorm in the team on what skills will be most needed for you to succeed in the global economy in the futureGet the skills down to the few that could ‘make a real difference’
Complete the discussion within 7 minutesBe prepared to present your conclusions to the rest of the class
Key skills that businesses are now
looking for
Tolerance and respect for others
Able to work in diverse teams
Flexibility and adaptability
A broad perspective Cultural
understanding
Building networks and relationships
International Experience
Pulling it all together
How do I engage further with the EwB program?
What are the action learnings and next steps I can take?
Engaging further with the EwB program
The EwB classroom visit today is one of three components to the program:1. Classroom visits with volunteers to teach and
discuss the themes of globalisation and how they are linked with the principles of EwB
2. The EwB website where students can make connections, promote their companies to find partners, and establish their collaborative businesses
3. The company challenge where they can enter their company in to the EwB challenge competition for the best EwB companies
The EwB Websitewww.ewb.ja-ye.org
EwB Joint-Venture Partnership (JVP)
A JVP is a partnership formed by two or more companies operating in different countries, each company controlling its own revenues and expenses, but with operations complementing each other, and working together on joint projects.
JVP Business Models Import-Export BusinessCoordinated product/service development and OutsourcingExchange visit with a business content
EwB Joint-Venture Company (JVC )
A JVC is a closer working arrangement formed by two or more companies operating in different countries but combining parts of their operations and sharing responsibility for joint revenues and expenses.
They could continue also to conduct their own business and control their own revenues and expenses outside the JVC.
Ways of working together
In order to be recognized as an EwB Joint Venture Partnership (JVP) or an EwB Joint Venture Company (JVC), all partner companies must be JA-YE minicompanies FULLY registered on the EwB portal
www.ewb.ja-ye.org
i.e. each participating company must have its EwB account and must be listed among the EwB companies on the portal.
Ways of working together
EwB Case Studies
EwB Case Studies
EwB Case Studies
Action Learnings
What have you most learned from the session today
What actions might you take next and what help do you need