Hu’s In Town

Posted by & filed under Global Management.

Chinese President Hu Jintao visited the Chicago area for four days. His stops included a very formal dinner with Chicago Mayor Richard Daley, Walter Payton Prep School, and suburban Woodridge (a town even native son Barack Obama has not visited). Big deals were made – the Chinese agreeing to purchase Midwestern soybeans for $1.8 billion.

QUESTIONS:

  1. While most of tiny Woodridge, Illinois did not know the Chinese president was there, his visit to Chicago and its suburbs was important nonetheless. Discuss why the forces of globalization compel Hu Jintao to visit this tiny hamlet.
  2. Why would a company like Wanxiang want to go global, particularly in Chicago?
  3. Discuss the importance of the Chinese delegation in terms of managing export-import relationships.
  4. The visit by the Chinese president may have had a public relations component to it. As companies consider doing business in China and with Chinese companies, what are some of the ethical challenges involved?

SOURCE: L. Etter, “Look Who’s Coming to Woodridge,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704115404576096313240848544.html)

Getting Google-y About Change

Posted by & filed under Change.

Google is a business run by committee. At least it was. Now Larry Page replaces Eric Schmidt. The triumvirate of Page, Schmidt, and innovator Sergey Brin sometimes held the company back because they could not agree. Page has the opportunity to move Google forward if by no other means than offering a more comfortable (and understood) public presence.

QUESTIONS:

  1. The article frequently mentions scaling in relation to Google’s success and as a factor most likely to determine whether Google will be supplanted by Facebook, Twitter, or some other company. What is scaling? How does it fit in the innovation process? Why do you think some companies are able to do it while others are not?
  2. Review the characteristics of innovative organizations in your text. Based on your own knowledge of Google and what you can determine from the article, what are the key characteristics that make Google innovative?
  3. What type of change leadership does the move to replace Eric Schmidt with Larry Page represent?

SOURCE: J. Jarvis, “Google Searches for New Challenges,” National Post (Retrievable online at http://www.financialpost.com/news/technology/Google+searches+challenges/4146720/story.html)

You Said What?

Posted by & filed under Communication.

A new industry is emerging from the world of high tech – reputation management companies. With the rise of online customer review websites and prominence of instant communication technologies like Twitter, companies are finding the need to manage how and what kind of information is disseminated. Reputation management companies are helping companies protect their information and improve the image they have on the world-wide web.

QUESTIONS:

  1. As managers, we may be inclined to think about communication as an internal issue. Let’s think about it in a broader context. Review the definition for social capital in the text. How does this relate to reputation management as discussed in the article?
  2. What role can new communication technologies like Facebook and Twitter play in terms of effective and efficient communication for a company?
  3. Consider the impact of company versus customer communication. Which is most credible? Why might customers be seen as a more reliable source of information about a company?
  4. The article described one way to turn negative comments on review web sites into a benefit. In terms of active listening, how should company management use feedback from review web sites to enhance image?

SOURCE: O. El Akkad, “Reputation Guns for Hire,” The Globe and Mail (Retrievable online at http://www.theglobeandmail.com/report-on-business/your-business/business-categories/web-strategy/reputation-managers-for-hire/article1868876/)

If At First You Don’t Succeed . . .

Posted by & filed under Entrepreneurship.

Research from the University of British Columbia suggests that initial entrepreneurial success leads to future success. Peter Gustavson certainly hopes this is true. The entrepreneur spent nearly two decades developing Custom House Currency before selling to Western Union. Now he is partnering with another entrepreneur, Marv Holland, to take his company to a new level of performance. Professor Thomas Hellmann says it is not uncommon for successful entrepreneurs to want to try again and not necessarily in the same industry.

QUESTIONS:

  1. Describe both Peter Gustavson and Marv Holland as entrepreneurs. Is there a difference? Could this explain why one is “buying in” and the other is “selling out?”
  2. Examine the reasons small businesses fail. What synergies does the combined management of Marv Holland and Peter Gustavson bring to Marv Holland Apparel? Do you think the company is more or less likely to succeed with Gustavson involved?
  3. In what stage of its life cycle was Marv Holland Apparel prior to the arrival of Mr. Gustavson? What evidence from the article would suggest that he can move the company into the next stage and beyond?

SOURCE: C. Atkinson, “Serial Entrepreneurs Profit From Past Mistakes,” The Globe and Mail (Retrievable online at http://www.theglobeandmail.com/report-on-business/your-business/grow/new-product-development/serial-entrepreneurs-profit-from-past-mistakes/article1783755/)

A Marathon Split

Posted by & filed under Strategy.

Marathon Oil, with operations throughout the United States and Canada, will soon be two companies. The move has been in the works for nearly two years, but low oil and gas prices kept the company from making it until now. Marathon Petroleum will be responsible for refining operations. Marathon Oil will focus exploration and production.

QUESTIONS:

  1. Marathon is an established company operating in a mature industry. Should it be concerned about competitive advantage? What source of competitive advantage does the move to split into two companies represent? Can it become a sustainable competitive advantage?
  2. The business split represents what level of strategy?
  3. From the standpoint of SWOT analysis, why is now a good time for Marathon to make the split?
  4. What type of restructuring strategy does this move represent?

SOURCE: Associated Press, “Marathon Oil Will Spin Off Refining and Marketing,” USA Today (Retrievable online at http://www.usatoday.com/money/industries/energy/2011-01-13-marathon-oil-spinoff_N.htm?csp=obinsite)

Green Politics

Posted by & filed under Ethics.

Newly-appointed Environment Minister Peter Kent is promoting a position advanced by Calgary author Ezra Levant. That position holds that Canada’s oil sands oil is “ethically superior” to oil sold by countries with repressive regimes and are known to support terrorism. The argument is a “better than” response to critics that claim oil sands oil production leads to higher levels of greenhouse gas emissions than more traditional methods of production. While Minister Kent is quick to reject that argument, even if it were true, he claims democratic countries have an obligation to consider how their money will be used post-sale. This position is very similar to the “fair trade” argument in other markets.

QUESTIONS:

  1. When Environmental Minister Peter Kent labels oil sands oil as “ethical oil,” what is he attempting do (vis-à-vis other forms of oil around the world)?
  2. What alternative view of ethics can be associated with “ethical oil?”
  3. The comparison of Canadian oil with oil purchases from other countries raises this to a cultural level. Where would you place Canada’s argument for “ethical oil” on the cultural relativism-universalism continuum?
  4. What makes the decision whether or not to purchase Canadian oil sands oil an ethical dilemma for U.S. President Barack Obama?

SOURCE: S. Chase, “Peter Kent’s Green Agenda: Clean Up Oil Sands’ Dirty Reputation,” The Globe and Mail (Retrievable online at http://www.theglobeandmail.com/news/politics/peter-kents-green-agenda-clean-up-oil-sands-dirty-reputation/article1860820/)

Is There An App For That?

Posted by & filed under Decision Making.

The nature of business today – shrinking workforces and increasing responsibilities – makes it difficult for employees to focus. Mobile technologies add to the distraction. Once attention has been diverted from a task, it can take as long as 20 minutes to get restarted. The article offers a couple of simple suggestions to help retain focus. More importantly, it gives readers a chance to consider the implications for decision making.

QUESTIONS:

  1. It rarely comes as a surprise any more, when we are talking about a task, that someone in the group says “Did you know there is an app (smart phone application) for that?” Discuss ways that over-availability of information might impede decision making in organizations.
  2. The text makes it clear that information technology changes relationships within and without the organizations. Let’s consider changes on a more fundamental level (as implied by the article). What are the pros and cons of on-the-go (i.e., always in your hand/pocket) information technology?
  3. Are multi-dimensional thinking and multi-tasking the same? Discuss.

SOURCE: R. Pulfer, “Multi-Tasking: Tuning Out the Noise,” Canadian Business (Retrievable online at http://www.canadianbusiness.com/managing/employees/article.jsp?content=20090817_10017_10017)

Will the “Golden Voice” Be a Golden Opportunity?

Posted by & filed under Individual Behavior.

Barely a week into January and it is already the human interest story of 2011. A homeless man in Columbus, Ohio is discovered by a videographer for the local newspaper. After capturing the man’s voice on video and posting it to the paper’s website, it goes viral. Ted Williams becomes more popular on the internet than the Hall of Fame baseball player. He also becomes the little darling of the media. Numerous lucrative job offers follow. Is this truly a “rags to riches” story or is Williams likely to be back on the streets somewhere in the future?

QUESTIONS:

  1. You’ve probably seen them before – panhandlers standing at a major intersection in a large city. What thoughts go through your mind? What attributions (about their situation) do you make? Managers make similar attributions about their employees. Think about this – if the Ted Williams that appeared in the original video walked in off the street and asked you for a job, would you hire him?
  2. Talk about it. What role do stereotypes play in the judgments you make about others? Our stereotypes extend not just to the homeless, but also to the opposite sex, people with different ethnicities/nationalities, and people with different levels of attractiveness. How can you guard against misusing stereotypes?
  3. Many wonder how a homeless man could become an overnight sensation. Ted Williams’ personality has a lot to do with it. View video of Mr. Williams. What Big Five personality dimensions draw people to him?
  4. While being homeless is bound to be stressful, Mr. Williams definitely has a lot more to deal with now than he did before his discovery. How would you categorize his current stress? What are the possible reactions he could have if the stress becomes too great?

SOURCE: Associated Press, “Silky-Voiced Homeless Man Copes With Sudden Fame,” USA Today (Retrievable online at http://www.usatoday.com/news/offbeat/2011-01-07-williams-fame_N.htm)

Original video clip:

Related video clip:

M: UAW On The Move

Posted by & filed under Uncategorized.

For 75 years, the focus of the United Auto Workers has been on the Big Three Detroit auto makers. With two of those companies in bankruptcy and membership continuing to decline, the UAW now says it will target foreign-owned car plants for membership drives. Many of the plants are in right-to-work (protecting workers from being forced into unions) states. One labor expert says the move is critical to the UAW’s survival. One thing is certain, the UAW is willing to spend money in this effort. Members approved spending $60 million for organizing from a fund that contains more than $800 million.

QUESTIONS:

  1. Examine the legal protections for workers and legal issues that exist in the workplace. Take a position for or against labor unions and use the information in these sections to build your case.
  2. Review the information on labor unions in the chapter. Aside from being legally permitted to do so, what reasons are there for the UAW to target foreign-owned car plants? Are these reasons legitimate?
  3. Review the practices associated with maintaining a quality workforce. From your reading of the article, what things are foreign-owned car companies currently doing for their workers? Imagine you were the human resources manager at one of these facilities. What strategy would you develop to keep the UAW from being a threat?

SOURCE: M. Dolan, “UAW Sets a Strategy on Foreign Car Plants,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704735304576057980652700842.html)

M: Fishing In Perpetuity

Posted by & filed under Uncategorized.

Beginning with the new year, Marriott International is launching a sustainable seafood program called Future Fish. All Marriott hotels must purchase at least 50% of their seafood from certified sustainable vendors. A Marriott spokesperson says the move was driven partially by chefs and partially by customers that are concerned about green issues. The program means that Marriott will be changing its seafood menu, dropping some items it deems are not currently sustainable and adding new sustainable items, which may require educating customers.

QUESTIONS:

  1. There is little question that Marriott’s sustainable seafood program reflects values. Whose values? Are the values represented terminal or instrumental? Can both be represented in this initiative?
  2. What ethical view is represented by Marriott’s decision to launch Future Fish?
  3. Make a case that Marriott’s move to sustainable fish is corporate social responsibility. Defend both sides of the definition.
  4. What type of social responsibility strategy is Marriott following?

SOURCE: B. DeLollis, “Marriott International Launches Sustainable Seafood Program,” USA Today (Retrievable online at http://travel.usatoday.com/hotels/post/2010/12/marriott-international-launches-sustainable-seafood-program/134426/1)