Question 1. Constrains and Challenges for the Global Manager. As our organization we chose a humidification called ‘Climanova’ in Eede. It’s often interacted with because Jolien works there often in the weekends. The physical design:
The organization is located in Eede a small town in Zeeland. Climanova lies on an industrial area surrounded by multiple European organizations. There is a big parking lot in front of Climanova where all the clients and employees get to park for free. The building has a modern design with black and grey colors, a lot of windows, big office spaces, two floors, a big lunch area and an elevator. From the physical layout we can say that the building is handicap friendly, the set up is very large which tells us that Climanova wants to impress its clients by their organizational capabilities. The big windows and office spaces show that Climanova values its employees and wants to create a positive work environment. The value that the organization has within the building is orderliness, cleanliness and safety.
The values that are highlighted are communications, cooperation (teamwork) and coordination. The logo consists out of the colors blue and orange. Blue stands for water, because the company revolves around water. Orange is the color of the Dutch kingdom. On the building there is a big logo displayed with the name of the company. Also every employee has sweaters, jackets, shirts and pants with the logo and almost every employee has his own van or car with the logo of the company displayed. The company has developed special business cards, pen, paper, gifts and folders with the logo. The employees’ needs are emphasized. One of the employees is handicapped and the company made the whole building handicap friendly. Smoking inside and stealing are actions that are prohibited within the organization; therefor the CEO has set up an agreement with its employees. The slogan of Climanova is ‘Not just air conditioning’, which distinguishes them from other organizations. There are no artifacts displayed within the company. The Words:
The organization addresses its employees very professional. Employees are addressed with official business titles, like CEO, architectural designer, head of production, etc. This tells us that the company is very professional and organized. The story that is repeated a lot is the story of how the company got started, how it grew from a small office in a home to a global organization. These things tell us that the company values harmony, integrity, loyalty and innovation. The Policies and Activities:
The government has created official laws that organizations have to follow within their company. Climanova values these laws very much, which shows respect for the Individual. If employees work hard they get a bonus at the end of the year. Rituals are important in the company, there is a speech at the end of the year and twice a year there’s a special event for the employees where they go and have a barbecue or dinner party, to value the team building.
Question 2. Global Management.
Find two current examples of each of the ways that organizations go international (global sourcing, import/export, licensing/franchising, strategic alliance, joint venture and foreign subsidiary). Describe how these companies operate globally. Please use appendix for supporting documentation.
-Different IT personnel that are working for a company currently have people in India and Ireland that are working for them. -In the textile industry it has been common for years that the manufactures for the textile are mostly settled in South East Asia, examples of these are China and Indonesia. For both of these examples the reason is that the wages are way lower in the countries mentioned above than they are in the countries where the organizations have their headquarters.
Import / Export
-The Aalsmeer Flower Auction is the largest auction in the world. Daily millions of flowers are traded with countries all over the world. A lot of flowers are brought to the auction every day (import) and at the same time a lot of flowers are sold to other countries (export). -Different parts of an mp3 player are made in a certain country, these are exported to another country where they are assembled and exported as a full product.
Licensing / Franchising
-You can buy a McDonalds franchise. With this you can buy the rights to use the brand name “McDonalds”. Therefor McDonalds will provide you products and will take care of advertising. -You can buy a Microsoft license. With this you can use their software on your own brand computer and won’t have to develop software yourself. This way a lot of people will be familiar with the Microsoft software and will be the same for most brands of computers. Strategic alliance
-Call of Duty (Modern Warfare 3) is a video game made by the companies: Activision, Infinity Ward and Sledgehammer Games. Infinity Ward and Sledgehammer Games mainly have worked on the development of the game, while Activision was responsible for the publishing of the game. The companies all stay independent, though they worked on a project together. -For the three very identical cars: Citroën C1, Peugeot 107 and the Toyota Aygo the companies PSA Peugeot-Citroen and Toyota Motor Corporation have each done their own share of research and development. With all the knowledge of these companies combined they came up with the idea of the three above-mentioned cars. However the manufacturing of the cars is done in their own production plants.
-PSA Peugeot Citroën is the cooperation of the two car companies Peugeot and Citroën, which make both automobiles and motorcycles. These are both sold under the Peugeot and Citroën brands. -Sony Ericsson is a 50/50 joint venture between the Japanese electronics manufacturer Sony and the Swedish telecommunication company Ericsson. They originally both made their own telephones, but don’t make phones individually anymore since they’re together. In this joint venture they used Sony’s knowledge/research of consumer electronics and Ericsson’s knowledge of mobile technology to make
-Cartoon Network is a cable television network that broadcasts animated shows. It’s a subsidiary company of Time Warner, which is a multinational media corporation with their headquarters in New York City. Cartoon Network’s headquarters itself are stated in Atlanta, Georgia and Los Angeles, California. -Warner Bros. is a producer of film, television and music industry. Also this company is a subsidiary of Time Warner. Warner Bros. has its main headquarters in Burbank, California. Warner Bros. is mostly famous in the film/television industry; most of their titles have been seen all over the world.
Question 3. Social Responsibility and Ethics – Please read the case application: Lessons from Lehman Brothers: Will We Ever Learn? (p.175). Answer all five of the discussion questions on page 176.
1.Describe the situation at Lehman Brothers form an ethics perspective. What’s your opinion of what happened here?
-There is no doubt that the downfall of a giant Wall Street company like the Lehman Brothers would have affected negatively a great number of people – costumers, employees, etc. This is why we think that such companies should be very precise with determining their ethical issues’ intensity and trying to fix the problems on time – before they turn into something bigger and more dangerous. A socially responsible behaviour like this could be expected from a firm with high moral standards which is interested in the welfare of all its stakeholders. But unfortunately this was not the case with the Lehman Brothers company, where the culture, the rewarding system and the leadership as whole, seem to have been a complete chaos. Apparently the shareholders of the company tended to act dishonestly and egoistically, and actions among the employees such as undue risk taking or questionable deals making were encouraged and well accepted.
2.What was the culture at Lehman Brothers like? How did this culture contribute to the company’s downfall?
-“Our mission is to build unrivaled partnerships
with and value for our clients, through the
knowledge, creativity, and dedication of our people,
leading to superior results for our shareholders.”
Whis was the mission statement of the Lehman Brothers company, but in terms to provoke of such a collapse, they might have not sticked to it. This means that there was little or no conection between the stated and shared values and the real bahaviours in the company, which is a sign for a weak organizational culture. Also the flaws, that we alredy mentioned in the answer to the previous question, are enough to conclude that the company was more outcome oriented and thus the managers focused more on the the final result rather than how it was achieved, which might have led to copromizes with the organization’s values and morality.
3.What role did Lehman executives play in the company’s collapse? Were they being responsible and ethical?
-Lehman executives played a determining role in the company’s crash. According to Valucas, they have worsened the company’s problems with their negligent behavior. Although they claim that the company’s downfall is not their fault and they blame it to all kind of external factors, that still doesn’t convince us in their innocence and is more likely to make us think that they have this ‘self-serving’ bias which means that they probably were that kind of managers tht are taking quick credit for success and are blaming the others for their own failure.
4.Could anything have been done differently at Lehman Brothers to prevent what happened?
-Maybe if the company’s culture, values, approach of running the company and etc. were different in a positive way.. We are not saying that this would have been 100 % enough to prevent the failure of the company, because besides its many inside flaws, there were some external factors that played a vital role as well. But if the company had a strong organizational culture, for sure this would have contributed for dealing with the crisis or at least would have softened the consequences that followed after the crash.
5.After all the public uproar over Enron and the passage of the Sarbanes-Oxley Act to protect shareholders, why do you think we still continue to see these types of situations? Is it unreasonable to expect that business can and should act ethically?
-All these grandiose crashes of companies that are examples for unethical businesses must have shown us what is the sad end of such a company – and sooner or later this is what overtakes them – an unexpected on a first sight breakdown. The difference between them and the companies who act ethically is that the moral business practices are more stable, more resistant to harsh external factors and ususlly have an economic advantage in long run, while the companies that choose to make their way in the industry by using frauds and so on, are usually more profitable in short run, but with a weak organizational culture and inside structure which makes them more unsastainable to external factors. This is why we do not think that it is unreasonable to expect that business can act ethically. We think that this is exactly how each business should work.
* The appendix for some of these examples can be found at the sources. (Last page)
Official website of the company Climanova,
Hayes, I. S. (n.d.). Ready or Not, Global Sourcing is in Your IT Future. Retrieved 21 October, 2012, from http://www.clarity-consulting.com/globalsourcing.htm
What are examples of importing and exporting? Retrieved 21 October, 2012, from http://wiki.answers.com/Q/What_are_examples_of_importing_and_exporting
Murphy K. B., B.S., M.B.A., J.D. (2009-2012). BUYING A McDonalds FRANCHISE. Retrieved 21 October, 2012, from http://www.franchisefoundations.com/mcdonaldsfranchise.html Microsoft | Licenties. Retrieved 21 October, 2012, from
http://www.microsoft.com/nl-nl/licenties/licentiebeheer/software-asset-management.aspx Question 3
An inside look of Lehman Brothers’ downfall – Exclusive first look: A bond trader’s new book, A Colossal Failure of Common Sense, tells how the firm’s leaders ignored all the warnings. – By Jennifer Reingold, senior writer, Retrieved 20 July, 2009, from http://money.cnn.com/2009/07/20/news/companies/lehman_brothers_book_mcdonald.fortune/index.htm Lehman Brothers’ Perfect Storm: Where Ethical Lapses Met Bad Judgment Retrieved 18 March 2010, from:
http://theweekinethics.wordpress.com/2010/03/18/lehman-brothers%E2%80%99-perfect-storm-where-ethical-lapses-met-bad-judgment/ Looks Like Lehman Brothers Forgot Their Mission Statement!
JLP – Retrieved 18 November, 2008, from:
http://allfinancialmatters.com/2008/11/18/looks-like-lehman-brothers-forgot-their-mission-statement/ Lehman Brothers ex-CEO Wants Everyone To Know That It Was Everyone Else’s Fault Lehman Failed – by Mike Masnick, Retrieved 12 september, 2010, from: http://www.techdirt.com/articles/20100901/13074010861.shtml
The Enron Scandal: the Crime, Scandal, Tragedy, and Controversy of the Century – Edward Raver – Retrieved 15 December, 2006, from: http://voices.yahoo.com/the-enron-scandal-crime-scandal-tragedy-controversy-136695.html?cat=3 The Sarbanes-Oxley Act of 2002 info, from: