Team assignment 4 (5 points)

Trivia questions

1. Which of the following sites is NOT blocked in China?

A. Wikipedia

B. Facebook

C. Google.com

D. Twitter

E. Youtube

Trivia questions

2. Which of following countries are the top three home countries of billionaires as of 2016?

A. US, China, UK

B. US, UK, Japan

C. US, China, Japan

D. China, US, India

E. US, China, Germany

What about millionaires or Fortune Global 500 as of 2015?

Trivia questions

3. What are the top 10 universities that graduated the most Fortune 100 CEOs in the US?

1. Cornell

2. Harvard

3. Texas A&M

4 (tied). UNC Charlotte

4 (tied). Brown

4 (tied). U Michigan

…

Foreign Contexts

DR. VICTOR Z. CHEN

UNC CHARLOTTE

Google.cn: A Synthesis Case

Search Engines

What is your default search engine? What do you like about it, compared

to the others?

Google Inc.

Founded in 1998 by Stanford PhD candidates Larry Page and Sergey Brin

Brin emigrated from the Soviet Union at age six

Brin’s parents left to escape from “a repressive regime with limited political freedom”

At Stanford, Page and Brin quickly became “intellectual soul-mates and close friends”

After three years of rapid growth and success, they were reaching a point when they needed a professional chief executive for “adult supervision”

Google hired Dr. Eric Schmidt, a technology veteran in preparation for IPOs, which took place in 2004 and raised $1.6 billion

Google Inc.

Google Inc.

Ten things we know to be true

1. Focus on the user and all else will follow

2. It’s best to do one thing really, really well

3. Fast is better than slow

4. Democracy on the web works

5. You don’t need to be at your desk to need an answer

6. You can make money without doing evil

7. There’s always more information out there

8. The need for information crosses all borders

9. You can be serious without a suit

10. Great just isn’t good enough

Algorithm advantage

Yahoo!

Human editors to classify information

Google vs. Peers

Google Yahoo! Microsoft

Algorithm-based search for speed and relevance

Started as a human editors-curated portal site

Late starterTied to MS users, e.g., 20% cash back

Google Inc.

By 2008, Google’s revenue reached $21.8 billion.

Nearly all of its revenues came from two advertising products:

AdWords ($14.4 billion)

AdSense ($6.7 billion)

Geographic boundedness

Demographic boundedness

Cultural boundedness

Economic boundedness

Regulatory and political

boundednessCSA

FSA

Google Inc. in CSA/FSA Matrix






boundednessCSA 1.IT infrastructures2.IT talents3.A large user base4.CapitalFSA 1.Speed2.Thoroughness3.Relevance4.Democracy5.Reputation for “Do no evil!”6.Online Ad pays

BandwidthSecure servers

Working pros

Online payment (e.g., Credit card)

SophisticationInfo democracyUnbiased, ENIndividualism

No censorshipNo censorshipNo censorshipNo censorship

Google Inc. in CSA/FSA Matrix

China’s context

socialism/nationalism and a long history of collective interest of social harmony/stability rather than individualistic interest of social change.

China’s context

laws that block sensitive information and websites that freely disclose it (e.g., YouTube, Flickr, Facebook, Wikipedia, Twitter, etc.)

“Great Firewall”

A host of government monitors and citizen volunteers

China’s context

1. socialism/nationalism and a long history of collective interest of social harmony/stability rather than individualistic interest of social change.

2. laws that block sensitive information and websites that freely disclose it (e.g., YouTube, Flickr, Facebook, Wikipedia, Twitter, etc.)

“Great Firewall”

A host of government monitors and citizen volunteers

Two choices

Establish a server presence in China and agree to self-

censorship

Maintain an offshore server and force users to endure significant

delays and instabilities caused by, e.g., Great Firewall.

China’s context

Language

Alphabet vs. Logograph

More dense, less space

No space between words

One character, multiple meanings

More clicks, less typing

China’s context

Users

Desks

vs.

Mobiles

China’s context

Users

Chinese: avg 25, 30-60 seconds per page, 0.02 credit card/person

US: avg 45, 10 seconds per page, 2 credit cards/person

China’s context

Easterner vs. Westerner thinking

What do you see?

Are you thinking like a westerner or an easterner by personal culture?

Are you thinking like a westerner or an easterner by personal culture? (cont’d)

Hofstede’s Cultural Dimensions

Source: https://www.hofstede-insights.com/country-comparison/china,the-usa/

GLOBE’s Cultural Dimensions

Source: http://globeproject.com/results

Midterm Review

Globalization/International Business: history, what drives IB today, different ways to run a business in a foreign country, challenges, risks, differences from US, processes, policies, legalities, strategies for success, advantages/disadvantages, solution to international expansion barriers, environmental issues/challenges, political context, geographical context, socio-economic factors, socio-cultural context, impact of globalization, sustainability, identify and understand current key global business problems, IB ethics, technology in the global market and impact of automation, supply chain complexity, risks of labor exploitationForeign Markets: lucrative markets and how to spot them, do they welcome international expansion, foreign economic systems, foreign market entry and expansion strategiesForeign Investments: global stock marketManagement Style: managerial responsibilities and style while running international businessStrategies: global pricing, design IB strategies, analyze IB strategiesCulture: learn about different foreign cultures and their business customs, difference to US culture, do’s/don’ts (norms and taboos) in different cultures, barriers to a US citizen, adapting at the workplace, conflict resolution, ways to effectively approach difficult situationsNetworking: connect with the international community in the Charlotte region, Dr. Chen’s network and connections, meet other IB major students, meet potential employersStudy abroad/work abroad upon graduation: prepare oneself, top foreign languages to learn, top foreign countries to work for, top global employers, IB in Africa, IB in South America and SpainInternational Business Career: career path, choices/jobs, minor in IBSkills: presentation, develop a global mindset, real-life application of some of the theories/processesGlobal Companies: Organizational structure, how do they address differences in cultureCharlotte Area: Charlotte and Charlotte based companies’ role in IB

Group project 5

Who are you culturally in your team?

Name PDI IDV MAS UAI LTOWVS IVR Closest Nationality

PDI the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.

IDV the degree of interdependence a society maintains among its members

MAS A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the “winner” or “best-in-the-field”. A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life.

UAI the way that a society deals with the fact that the future can never be known

LTOWVS the way that a society deals with the fact that the future can never be known

IVR the extent to which people try to control their desires and impulses

China’s context

Users

Chinese: browsing widely

US: focusing on upper left

China’s economic reform since Deng in 1978

Source: Brett, Pilcher, & Sell (2011). A new approach to China: Google and censorship in the Chinese market. Kellogg School of Management Case #590.

Google vs. Baidu

Google Baidu

1. Serving our users2. Best search is defined as the most

relevant info3. Obeying the law (e.g., The

Foreign Corrupt Practices Act)4. Information democracy

1. Serving the users, including paid business users for their branding/marketing

2. Obeying the Chinese law

Now make a decision:Shall we renew Google.cn?

China Google

Conservatives Reformers Ideologists Professional Managers

Cyber attacks

Privacy (e.g., Gmail)

Censorship

Presence in China

Conclusion

Overall Conclusion

11 1 1

2 2

3






boundednessCSA 1.IT infrastructures2.IT talents3.A large user base4.CapitalFSA 1.Speed2.Thoroughness3.Relevance4.Democracy5.Reputation for “Do no evil!”6.Online Ad pay

BandwidthSecure server

Working pros


SophisticationInfo democracyUnbiased, CNIndivualism


Google Inc. in CSA/FSA Matrix:China mainland

Google.cn?

IPR ICT Use Govt Regulations

Internet bandwidth

US 15th 20th 26th 41th

CN 63th 76th 51th 119th

HK 9th 7th 3rd 2nd






boundednessCSA 1.IT infrastructures2.IT talents3.A large user base4.CapitalFSA 1.Speed2.Thoroughness3.Relevance4.Democracy5.Reputation for “Do no evil!”6.Online Ad pay

BandwidthSecure server

Working pros


SophisticationInfo democracyUnbiased, CN/ENIndivualism


Google Inc. in CSA/FSA Matrix:HK SAR

Google.cn to Google.com.hk

Source:

http://www.brookings.edu/~/media/events/2010/6/09%20china%20global/20100609_china_global_steinfield.pdf

Chinese usersChinese IT workers

Category Specific examples US Hong Kong SAR

China Mainland

Strong property rights

• Registration of private property (days, % of property value)

• Legal protection of private property (1-10, 10 best)• Investor protection (1-10, 10 best)• Intellectual property rights (IPR) protection (1-7, 7 best)

15.1, 2.1%7.28.35.4

27.5, 7.7%8.49.05.8

19.5, 3.4%5.85.04.0

Free and fair competition

• Easy entry• Low government consumption (1-10, 10 best)• Low government enterprises/investments (1-10, 10 best)• Low corporate tax• Low other taxes and fees• No informal competition

5.6 days6.48.0

40%4%

Very low

1.5 days8.1

10.016.5%6.5%

Very low

31 days3.72.0

25%43%

57.6%

Low transaction cost

• Credit (% of adults covered by credit bureau; depth of information)

• Strong auditing/reporting standards (1-7, 7 best)• Low trading barriers (hours)• Free trade agreements• Bilateral investment treaties• Freedom of migration

100%, 8.05.5

7None with HK or

ChinaNone with HK or

ChinaNo visa to HK, needs visa to

China

96%, 7.06.220

With ChinaWith ChinaNo visa to

China or US

0%, 7.04.4103

With HKWith HK

No visa to HK, needs visa to US

Strong contract enforcement

• High corporate ethics• Legal resolution of contract claims (days, cost as % of

claim)

4.8420 days, 31%

5.5360 days, 21%

4.2453 days,

16%

Additional Integration Benefits:Market failure / Tax

Select Measures of Market-Supporting Institutions






boundednessCSAs

FSAs

Group project 6:Contextualizing Wells Fargo’s Competitive Advantages into Your Target Market

1. Separate country-specific and firm-specific advantages (1)

2. Identify contextual boundaries of these advantages (1)

3. Note whether your target market fits into these boundaries, give examples (1)

Example 1. Wal-Mart in CSA/FSA






boundednessCSA 1.Suburban Living2.Convenient driving3.Large consumer demand of lower to middle class

Large spaceGood roads

Large population

Car dependence

Cars are affordable

Purchasing power

Car friendly policies

Open trade

FSA EDLP1.Strong negotiation power over suppliers2.Strong negotiation power over labor Large zoning1.Efficient distribution and warehousing centers2.Satellite technology Customer first culture1.24-7

2.Free bags3.Easy credit4.Bagging purchases5.Sundown rule

Large spaceLarge airport centers

Good roads & security

Large population of consumers Large population of unskilled labor (70% without college degrees) Skilled labor in SCM

Skilled labor in SCM Large population of unskilled labor Large population of unskilled labor

Price sensitivityImpersonal competition Large load shopping

Anti-shareholderWorking ethics

Service sensitivityReliance on creditService sensitivity

Working ethics

Free competitionImpersonal competition Unionized labor supply Cheap land

No price controlNo local sourcing regulation No unionization/low employee protection Liberalized land-use

No work hour restrictionsNo plastic regulationsLiberalized credit market

Low employee protection

Most US retailers can do

Only Wal-Mart can

do

Example 2. Marmite in CSA/FSA






boundedness

CSA

1.English language, saving translation costs in many countries.2.Breakfast spread

Language

Eating bread, toast, biscuits or crackers, or other similarly baked products.

Legal requirement on English language proficiency

FSA

1.Marmite sounds like My mate –very friendly.2.Brand/network of Unilever3.Lovely (nasty) taste4.Easy to use savoury spread 5.Good pair with cheese (e.g., Mini Cheddars).6.Health/nutrition of energy and Vitamin Bs (e.g., WWI, WWII, and Bombay and Sri Lanka workers).7.Entry price ($4-5)

Unilever’s geographic networks

People of special taste, just like 33% of Brits

A large population/economy

English/French

Taste preferenceUsed to spread for breakfast, mealsUsed to eat cheese

Valuing healthy/nutritious diet

Not low income

Not low income

Not low income

Open for foreign trade (and investment, if setting up own sales)

Open for foreign trade

ContactVictor Z. ChenBelk College of BusinessUNC Charlotte

+1 (704) 687-7645

[email protected]

www.ChenZitian.com

Course website: http://www.chenzitian.net/teaching/MBAD6197/

Team assignment 4 (5 points)

Documents

Transcript of Team assignment 4 (5 points)