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CHAPTER 5 The Global Environment END OF CHAPTER QUESTIONS Questions for Review 1. Describe the four basic levels of international business activity. Do you think any organization will achieve the fourth level? Why or why not? There are four basic levels of international business activity: (1) domestic business—no international ties; buys and sells goods only in its own country; (2) international business—primarily resides in one country but purchases components from abroad or sells a substantial amount of finished products to other countries; (3) multinational business—has a worldwide marketplace from which it buys raw materials, borrows money, manufactures its products, and to which it sells its products; (4) global business—transcends national boundaries and is not committed to a single home country. A few large companies, for example Nokia, are moving towards a global business in which no single country dominates the firm. It seems clear that, as globalization continues, more and more companies will eventually achieve that level of activity. 2. For each of the four globalization strategies, describe the risks associated with that strategy and the potential returns from that strategy. Importing and exporting carries the risks of higher expenses and lack of customization, but it offers the lowest-cost way of entering a foreign market. Firms that use licensing run the risk of losing control of their product or of quality. However, licensing can be an effective way to enter a country that has lower technological development. Strategic alliances are risky because of the level of trust and the sharing of profits required between the partners. On the other hand, alliances help firms gain local expertise quickly and spread the risk of failure. Direct investment requires the greatest capital outlay and the greatest managerial expertise, but it can provide high profits. 3. Describe the various types of political controls on international trade. Be sure to highlight the differences between the types. Tariffs exist when goods that cross national borders are taxed. The effect of tariffs is to protect domestic firms and raise prices for exported or imported goods. A quota limits the amount of goods that can be traded between nations, and quotas serve to protect domestic firms and limit the profits of international competitors. Export restraint agreements are a type of quota that is voluntary, and they have the same effects as quotas do. “Buy national” legislation gives preference to domestic producers, but it often affects only a very limited number of products. 4. Explain the relationship between organizational size and globalization. Are large firms the only ones that are global? Very large companies are often global firms because they saturated their domestic markets and had to seek additional consumers overseas. Medium-size and small organizations may have less global involvement, both because they still have domestic expansion opportunities and because they may have more limited resources for foreign investment. However, mid-size and small firms can use strategies such as exporting, licensing, franchising, or alliances in order to extend their resources. Also, the rise of e-commerce has reduced the cost of international trade for firms of all sizes, creating international opportunities for smaller firms. Questions for Analysis 5. What are the advantages and disadvantages for a U.S.-based multinational firm entering a mature market economy? What are the advantages and disadvantages for such a firm entering a high-potential or high-growth economy? A U.S. firm would have experience and expertise in competing in a mature market economy, which is similar to the American economy. However, a mature economy typically contains a number of entrenched domestic competitors that would challenge a new entrant into their market. On the other hand, a high potential/high growth economy would have less competition, but it would require the U.S. firm to adapt its products and processes to meet local requirements. In addition, government intervention may be higher in these economies and consumer buying power may be lower. 6. Choose an industry. Describe the impact that international business has had on firms in that industry. Are there any industries that might not be affected by the trend toward international business? If so, what are they? If not, why are there none? Here is one example: “In the pharmaceutical industry, a few very large multinational firms dominate globally. These firms are primarily headquartered in the U.S. and in Europe. Their workforce comes from the best scientists around the world. They sell products to every country, but they have higher sales and higher profits in mature markets. Developing countries have needs for different types of drugs and have the greatest potential for sales, yet the local consumer buying power and regulation limit growth at this time.” Students should see that almost every industry has been affected by globalization. Exceptions might be purely local industries, such as dry cleaning services or residential construction. 7. You are the CEO of an up-and-coming toy company and have plans to go international soon. What steps would you take to carry out that strategy? What areas would you stress in your decision-making process? How would you organize your company? The steps to be undertaken include assessment of potential expansion target countries and assessment of the firm's products and capabilities as they will be deployed overseas. Three basic areas need to be considered in decision making: (1) market factors (including the ability to meet customer needs, the ability to distribute the product, and the market maturity); (2) technological factors (including the extent and cost of required redesign); and (3) personal values. Each set of factors will influence strategy, decision making, and organization. The most important issue in organizational design will relate to the amount of autonomy to give to each region or country. Questions for Application 8. Use the Internet to locate information about a company that is using a global strategic alliance or global joint venture. (Hint: Almost any large multinational firm will be involved in these ventures, and you can find information at corporate home pages.) What do you think are the major goals for the venture? Do you expect that the firm will accomplish its goals? If so, why? If not, what stands in its way? I can provide a hypothetical example based on common practices and trends in global strategic alliances and joint ventures. Let's consider Company X, a multinational technology corporation, which has formed a global strategic alliance with Company Y, a leading telecommunications company, to develop and market a new line of smart home devices. The major goals for this venture may include: 1. Market Expansion: Both companies aim to expand their market presence by leveraging each other's strengths and resources to enter new markets or penetrate existing ones more effectively. 2. Product Innovation: The alliance allows for the pooling of expertise, technology, and R&D capabilities to drive innovation and develop cutting-edge smart home products that meet evolving consumer needs and preferences. 3. Cost Reduction: By sharing resources, distribution channels, and production facilities, the companies can achieve economies of scale and reduce costs associated with product development, manufacturing, and distribution. 4. Risk Sharing: Collaborating in a strategic alliance enables the companies to share risks and uncertainties associated with market volatility, technological disruptions, and regulatory changes. 5. Brand Synergy: Both companies may seek to leverage their respective brand reputations and customer bases to enhance the perceived value of the new smart home products and drive sales. Whether Company X and Company Y accomplish their goals depends on various factors: 1. Alignment of Objectives: The success of the venture relies on the alignment of goals, strategies, and expectations between the partnering firms. If there are discrepancies in priorities or conflicting interests, it may hinder progress. 2. Effective Communication and Collaboration: Open communication and effective collaboration are crucial for realizing the potential synergies and maximizing the benefits of the alliance. Challenges may arise if there are communication barriers or cultural differences between the companies. 3. Market Dynamics: The competitive landscape, consumer demand, and regulatory environment can impact the success of the venture. If market conditions change significantly or unforeseen obstacles arise, it may affect the ability of the companies to achieve their goals. 4. Resource Allocation: Adequate resource allocation, including financial investment, human capital, and technological resources, is essential for the venture's success. If resources are misallocated or insufficient, it may impede progress and hinder goal attainment. Overall, if Company X and Company Y effectively manage these factors and maintain a strategic focus on their shared objectives, they are more likely to accomplish their goals and realize the potential benefits of their global strategic alliance. However, if they encounter significant challenges or fail to address key issues, it may hinder their ability to achieve desired outcomes. 9. Assume that you are the CEO of Walmart. What are the basic environmental challenges you face as your company continues its globalization efforts? Give some specific examples that relate to Walmart. A look at Wal-Mart’s web page (www.walmart.com) indicates the extent of the company’s global operations. As it expands internationally, it faces numerous environmental challenges in each of the countries it operates. Students will find out, for example, the problems Wal-Mart faces as it enters India through an alliance with a local player. Local laws as it pertains to foreign ownership are distinct in India as also the market challenges. 10. Review the following chart of Hofstede’s cultural dimensions. Based on the chart, tell which country you would most like to work in and why. Tell which country you would like least to work in and why.
Power Distance Range: 11–104 Individualism Range: 6–91 Uncertainty Avoidance Range: 8–112 Aggressiveness Range: 5-95
Germany 35 67 65 65
India 77 48 40 56
Israel 13 54 81 47
U.K. 35 89 35 66
U.S.A. 40 91 46 62
Adapted from: Geert Hofstede, Cultures and Organizations: Software of the Mind: Intercultural Cooperation and its Importance for Survival, London: HarperCollins, 1994, 26, 55, 84, 113. In general, some may prefer a cultural environment that is very similar to that of the United States. These students may prefer the U.K., for example. On the other hand, some students will prefer a cultural environment that is quite different from the United States along one or more dimensions and may prefer Israel or India, for example. For some students, a single dimension may be most important, while for others, the combination of factors has the greatest impact. Based on Hofstede's cultural dimensions, I would most like to work in the United States. The United States scores relatively high on individualism (91) and moderately on power distance (40) and uncertainty avoidance (46). This suggests that there is a culture of independence, personal responsibility, and initiative, which aligns with my preference for autonomy and freedom in the workplace. Additionally, the moderate scores in power distance and uncertainty avoidance indicate a balance between respecting authority and embracing change and risk-taking, creating an environment conducive to innovation and growth. Conversely, I would least like to work in India based on this chart. India scores high on power distance (77) and relatively low on individualism (48) and uncertainty avoidance (40). This suggests a hierarchical society where authority is respected, and decision-making may be centralized. As someone who values autonomy and individual initiative, working in such a hierarchical structure might feel stifling. Additionally, the lower score in uncertainty avoidance indicates a higher tolerance for ambiguity and risk, which may not align well with my preference for stability and predictability in the workplace. END OF CHAPTER EXERCISES Building Effective Technical Skills I. Purpose This exercise gives students a chance to learn more about foreign countries and their economies through Internet research. Students also are asked to think about the impact that a country’s economy has on the involvement of multinational firms. II. Format This exercise must be done outside of class to provide Internet access. It can be effectively completed by an individual or a small group of students, and it should take about 20–30 minutes to complete. III. Follow-Up A. List the five countries in the world that projected to have the largest populations in 2050. Explain how the list will have changed since 2009. In 2009 China had 1.3 billion people, India had 1.157 billion, the U.S. had 307 million, Indonesia had 240 million, and Brazil had 199 million. In 2050, the U.S. Census Bureau estimates that India will 1.6 billion, China will have 1.4 billion, the U.S. will have 439 million, Indonesia will have 313 million, and Ethiopia will have 278 million. B. List the five countries that export the most products to the U.S. In 2009, it was China, Canada, China, Japan, and Germany, respectively. C. List the five countries that currently import the most products from the U.S. In 2009, it was Canada, China, Mexico, Japan, and Germany, respectively. D. Life span is a measure of individual prosperity in a country. What is the average life span in each of the five largest countries in the world? In each of the five largest exporters to the United States? In each of the five largest importers from the United States? In 2009, the current figures were: Brazil–64 years; Canada–80 years; China–72 years, Germany–78 years; India–63 years; Indonesia–68 years; Japan–81 years; Mexico–72 years; Nigeria–51 years; and the U.K.–78 years. (The U.S. average life span is 77 years.) E. Gross domestic product (GDP) is a measure of a country’s economic health. What is the GDP per capita, in U.S. dollars, of each of the five largest countries? Of each of the five largest exporters to the United States? Of each of the five largest importers from the United States? In 2008, the current figures were: Brazil–$10,100; Canada–$39,300; China–$6,000; Germany–$34,800; India–$2,800; Indonesia–$3,900; Japan–$34,200; and Mexico–$14,200. (The U.S. GDP per Capita is $47,000.) F. What are the implications for your firm? What, for example, do the data suggest about the desirability of various countries as current trading partners? What do the data suggest about the desirability of the same countries as future trading partners? Students will see that U.S. multinational firms need to have information about current standard of living, economy, and population for countries around the world, but even more importantly, they need to look at future estimates of each of these items. For example, developing countries such as China and India will be growing in population in the future and will assume added global importance as they do. Desirable trading partners today might include Japan, Germany, and Canada, but these countries are likely to lose importance as their population ceases to grow. Building Effective Communication Skills I. Purpose This exercise is designed to help students think through the logistical issues that international communication can raise. II. Format This communication skills exercise is best done alone. Questions 1 and 2 should take no longer than 10 minutes; question 3 can take as long as 30 minutes. Notice that if the exercise is done in class, it will be necessary to provide students with resource material. III. Follow-Up There are no follow-up questions for this exercise. Students will have a variety of answers, depending upon their opinions and assumptions. Point out to students that even though communication technology has dramatically improved the ease of international communication, there are still some very real barriers to communicating internationally. Other areas that might impact international communication include language barriers and the unequal distribution of communication equipment in different areas of the world. For example, managers at remote locations may not have 24-hour communication access if they don’t have phone service at their residences. Another concern will be the differing customs surrounding international communication. For example, managers in some parts of the world may not be willing to stay at work late for an important call, or they may have religious duties at certain times of the day or week that cannot be rescheduled, or they may not be willing to conduct business communication from their homes. management at work shifting gears in the auto industry The car maker, Chrysler, has fallen on hard times and even a generous government bailout has failed to help the company. Chrysler has agreed to merge with Fiat, the Italian carmaker in an attempt to stem the flow of red ink. Fiat itself was an also ran in the automotive industry until its most recent CEO, Sergio Marchionne, turned it around by emphasizing speed and design. Now, Fiat is expected to help Chrysler in the U.S. market. Management Update: As part of Chrysler’s 2009 bankruptcy proceeding, Fiat gained control of the U.S. automaker. In July 2011, Sergio Marchionne announced that a single management team will oversee both Fiat and Chrysler. The integration of the merged companies was going at full speed by mid-2011. 1. Case Question 1: According to a major economics consulting firm, Fiat’s “South American operations are the jewel in the Italian company’s global operations.” Fiat has plants in Brazil and Argentina, and Brazil is its biggest market, well ahead of its home-country market. In 2011, with the Chrysler venture taking up more and more of the firm’s attention – and as European sales suffered a steep decline – rumors began to circulate that Marchionne might move Fiat headquarters from Italy to the United States. Discuss Fiat’s takeover of Chrysler as part of a strategy to transform itself from an international business into a multinational or global business. An international business, as defined in the chapter, is “one that is based primarily in a single country, but acquires some meaningful share of its resources or revenues (or both) from other countries. For much of its life, Fiat was an international company, with Italy as its base. Given the changing face of the automotive market, Fiat’s share of sales from foreign markets has gone up, as indicated by the fact that Brazil accounts for more revenues than Italy. It now attempts to transform itself into a multinational business. For that to succeed, the U.S. market is critical, hence its merger with Chrysler. 2. Case Question 2: What benefits does Fiat hope to gain from its arrangement with Chrysler? What potential drawbacks does it face? Judging from your analysis of benefits and drawbacks, explain why the Fiat-Chrysler arrangement might best be characterized as a strategic alliance? In what sense is it best characterized as a direct investment? Fiat gets Chrysler’s infrastructure – its dealer and supplier network – in the U.S. giving it the power to leverage its expertise in combination with Chrysler’s resources in this key market. The drawback is that it gains access to a stodgy carmaker with poor reputation. It is a strategic alliance in that it is a long-term partnership for mutual benefit between the two companies. If Fiat makes substantial investments in Chrysler, it will turn into a direct investment on the part of Fiat. 3. Case Question 3: What challenges in the U.S. cultural environment do you expect Fiat to face as it uses its Chrysler connection to compete in the American car market? What management challenges will Marchionne face in the areas of planning and decision making, organizing and leading? American culture differs from Italian culture, particularly in terms of Hofstede’s dimensions. It is likely that Fiat will face considerable cultural challenges – work habits, authority relationship, etc – when it works with Chrysler in the U.S. In each of the management functions – planning, decision making, organizing, and leading – these cultural differences will affect Sergio Marchionne’s ability to be effective. In addition, U.S. automakers work in a challenging union environment. The UAW, the union that comprises auto workers, is a powerful body and Marchionne has to deal with this body when he attempts to implement changes in the new entity. CHAPTER 6 The Multicultural Environment END OF CHAPTER QUESTIONS Questions for Review 1. What are the primary dimensions of diversity? The three primary dimensions of diversity are age, gender, and ethnicity. Other dimensions include a variety of factors such as disability, religion, language, sexual preference, veteran status, marital and parental status, and more. 2. Summarize the six arguments used to describe how the effective management of diversity can lead to a competitive advantage. There are six reasons why the effective management of diversity is seen as conferring a competitive advantage on an organization. (1) The cost argument asserts that diverse organizations have more motivated workers, who are more productive and less likely to quit or miss work. (2) The resource actions argument states that companies known for being diverse have an easier time attracting qualified applicants. (3) The marketing argument claims that diverse companies are better able to understand the needs of diverse customers. (4) The creativity argument suggests that more diversity leads to more innovation and creativity due to the use of different perspectives. (5) The problem-solving argument claims that diversity helps organizations gain more types of knowledge and information that can then be used to more effectively address problems. (6) The systems flexibility argument states that diverse organizations have learned to be more flexibility to accommodate diversity, and therefore they are able to be more flexible in the face of other types of changes. 3. Discuss the four basic individual approaches and the four basic organizational approaches to diversity and multiculturalism. The four basic individual approaches to managing diversity include understanding, empathy, tolerance, and communication. Organizational approaches to managing diversity include organizational policies and practices, diversity training, and organization culture. 4. What are the characteristics of a multicultural organization? Multicultural organizations are characterized by pluralism, in which every group works to understand every other group. Another characteristic is full structural integration, which means that the organization’s workforce reflects the diversity of the labor pool. Multicultural organizations also attain full integration of the informal network so that no employee is barred from participating in any formal or informal organizational activity. The absence of prejudice and discrimination also characterizes multicultural organizations, as does a lack of assumptions about organizational roles based on group identity. Multicultural organizations experience low levels of intergroup conflict. Questions for Analysis 5. In your opinion, are the “other” dimensions of diversity likely to have a greater or a lesser impact than the basic dimensions? Explain your answer. The "other" dimensions of diversity, such as cognitive diversity, personality diversity, and experiential diversity, can have a significant impact on organizational performance and culture, often comparable to or even greater than the impact of basic dimensions like gender, race, or nationality. 1. Cognitive Diversity: Differences in how individuals think, problem-solve, and approach tasks can lead to more innovative solutions and better decision-making. Teams composed of individuals with diverse cognitive styles are often more effective at tackling complex problems because they bring different perspectives and approaches to the table. 2. Personality Diversity: Varied personalities contribute to a well-rounded team dynamic. For example, introverted team members may excel at detailed analysis and focused work, while extroverted members may thrive in networking and collaboration. A balance of personality types can lead to better communication, creativity, and team cohesion. 3. Experiential Diversity: Diverse experiences, backgrounds, and expertise bring different insights and skills to the team. Individuals with unique professional or personal experiences can offer fresh perspectives and alternative solutions to challenges. This diversity of experience can lead to more robust decision-making and problem-solving processes. While basic dimensions of diversity such as gender, race, and nationality are undoubtedly important for fostering inclusive environments and ensuring representation, the impact of these "other" dimensions often lies in their ability to drive innovation, creativity, and adaptability within organizations. Therefore, in my opinion, the "other" dimensions of diversity are likely to have a comparable or even greater impact than the basic dimensions, as they directly influence how teams collaborate, innovate, and perform. 6. The text outlines many different advantages of diversity and multiculturalism in organizations. Can you think of any disadvantages? When an organization employs only a small number of a particular group, those in the group may tend to stick together, which can defeat the purpose of having a diverse workforce. On the other hand, when a variety of cultures are represented in a group, it may be difficult to come to a consensus. Some individuals may not view the situation in the same way. Sometimes even two individuals can argue for hours over a point only to find out later that they were actually on the same side but that they simply didn’t realize it. 7. Think of a time when issues of diversity or multiculturalism created an advantage or led to positive outcomes at school or work. What actions did the participants take to lead to those positive outcomes? In a workplace scenario, let's consider a software development team tasked with creating a new application for a global market. The team comprised individuals from diverse cultural backgrounds, including members from the United States, India, China, and Brazil. This diversity of perspectives and experiences ultimately led to positive outcomes for the project. 1. Cultural Sensitivity Training: Recognizing the importance of understanding each other's cultural norms and communication styles, the team participated in cultural sensitivity training sessions. These sessions helped team members appreciate the differences in communication preferences, decision-making styles, and work approaches across cultures. 2. Collaborative Problem-Solving: When faced with complex technical challenges, the team leveraged their diverse expertise and problem-solving approaches. For instance, a member from India suggested an innovative solution based on their experience with similar challenges in their home country's tech industry. Another team member from Brazil proposed a user interface design that resonated well with Latin American users. 3. Open Communication and Respect: The team fostered an environment of open communication and mutual respect, where everyone's ideas were valued regardless of their cultural background. Team meetings were conducted in a manner that encouraged everyone to contribute without fear of judgment or discrimination. This openness allowed for the free exchange of ideas and constructive feedback. 4. Adaptability and Flexibility: Recognizing that cultural differences might lead to misunderstandings or conflicts, the team remained adaptable and flexible in their approach. They were willing to adjust their communication styles, work processes, and project timelines to accommodate the needs and preferences of team members from different cultural backgrounds. 5. Celebrating Diversity: The team celebrated their diversity as a strength rather than a challenge. They organized cultural exchange events where team members shared their traditions, cuisines, and experiences with one another. This not only fostered a sense of camaraderie but also deepened mutual understanding and appreciation for each other's backgrounds. By embracing diversity and multiculturalism, the software development team was able to create a more innovative and inclusive product that resonated with a global audience. Their actions, including cultural sensitivity training, collaborative problem-solving, open communication, adaptability, and celebrating diversity, contributed to the positive outcomes and strengthened team cohesion. Questions for Application 8. Visit the registrar’s office or admissions office at your college or university, or find information about admissions from your school’s website. What actions, if any, is your school taking to increase diversity? If it is not taking any action, why do you think that is the case? If it is taking action, do you think the actions are likely to be effective, and why? I can provide a general perspective on actions that schools often take to increase diversity and assess their potential effectiveness. 1. Outreach and Recruitment Efforts: Many universities engage in targeted outreach programs to attract a diverse pool of applicants. This may include visiting high schools in underserved communities, partnering with community organizations, and attending college fairs focused on minority students. 2. Diverse Representation in Marketing Materials: Schools often showcase diversity in their promotional materials, including brochures, websites, and social media platforms. Highlighting a diverse student body and faculty can attract applicants from various backgrounds and demonstrate a commitment to inclusivity. 3. Financial Aid and Scholarship Opportunities: Offering need-based financial aid and merit scholarships can help reduce barriers to access for students from underrepresented backgrounds. Schools may also provide specific scholarships or grants for minority students to support their education. 4. Holistic Admissions Processes: Some institutions adopt holistic admissions processes that consider factors beyond academic performance, such as extracurricular activities, personal essays, and life experiences. This approach can help mitigate biases and provide opportunities for students with diverse backgrounds to showcase their strengths. 5. Diversity Initiatives and Support Services: Establishing diversity offices, multicultural centers, and support programs for underrepresented students can create a welcoming and inclusive campus environment. These initiatives may include mentorship programs, cultural awareness workshops, and affinity groups. Assessing the effectiveness of these actions depends on various factors, including the school's commitment to diversity, the resources allocated to these initiatives, and the broader socio-cultural context. While outreach efforts and financial aid programs can increase access for underrepresented students, long-term success also requires addressing systemic barriers to equity and inclusion within the education system. If a school is not taking proactive steps to increase diversity, it could be due to various reasons, such as limited resources, institutional inertia, or a lack of awareness about the importance of diversity and inclusion. Overcoming these challenges may require advocacy from students, faculty, and community members, as well as leadership commitment to fostering a more diverse and equitable campus environment. 9. Consider the case of an employee who is part of a minority group on one dimension of diversity. What are some of the potential problems that this employee might encounter? What are some ways that this employee’s supervisor can help alleviate these problems? This person might experience prejudice, blatant discrimination, or even harassment, if the work environment is hostile to diversity. Even in a supportive environment, some employees may resent or fear a member of a minority group. Conflict and miscommunication may arise due to cultural or other differences. In some situations, minorities are perceived as having an advantaged position and resentment might occur. Problems and misunderstandings may arise from well-intentioned employees, as well as those with less honorable intentions. 10. Assume that you work for a large multinational organization. You have just learned that you are being transferred overseas to an office in which you will be the first person of your ethnicity to work there. What steps might you take before you go to minimize problems that your presence might cause? You can request cultural training from your supervisor. If you go in knowing something about the local culture, you will have a better idea of what to do and what not to do. It will also help you understand why you are treated they way you are. It will also be useful to find a mentor in the local country, someone with whom you can feel free to ask any question. Getting straight answers to straight questions will help you adjust more easily to your new environment. Finally, it will be helpful if you vow to follow the four individual strategies for dealing with diversity. END OF CHAPTER EXERCISES Building Effective Technical Skills I. Purpose This exercise provides practice for students in analyzing and understanding the impact of diversity on an organization. II. Format This exercise must be done outside of class by individuals or small groups, in order to use the Internet. Questions 3 and 4, below could also be used as the basis for classroom discussion of diversity issues. Teaching Tip: Often this exercise is a good ice-breaker for the sometimes sensitive topic of diversity. III. Follow-Up A. Use the Internet to gather information about the gender and ethnic diversity of your school’s student body. Next, gather information about your school’s workforce, both faculty and staff. (Hint: You might consult the school’s website for pages related to admissions and human resources.) B. Use the Internet to gather information about the diversity of the state and local communities in which your school operates. Then gather similar information about the United States as a whole. (Hint: Demographic data at all three levels are available on the U.S. Census Bureau’s Census 2000 website; go to www.census.gov) Based on the 2010 Census, U.S. population increased by 9.7% over the ten-year period, 2000 to 2010. The residents were 63.7% white, 16.3% Hispanic, 12.2% black, and 4.7% Asian. Figures for the state, community, and the school’s workforce and student body will vary. C. Based on the information that you’ve gathered, would you say that your school’s student body at an appropriate level of diversity? Explain why or why not. Students should consider both the student body in relation to the workforce and the student body in relation to the local community, state, and nation. Clearly, the local community (and possibly the state for a state-sponsored school), is an important factor. Students’ opinions about the appropriateness of the diversity will vary, of course. D. Identify a few areas in which the student body population could reflect a greater degree of diversity. Here are a few areas in which the student body population could reflect a greater degree of diversity: 1. Racial and Ethnic Diversity: Increasing representation of racial and ethnic minorities, including Black, Hispanic/Latinx, Indigenous, and Asian American students, can contribute to a more inclusive and equitable campus environment. 2. Socioeconomic Diversity: Recruiting students from a wider range of socioeconomic backgrounds can help mitigate disparities in access to higher education and promote social mobility. This includes efforts to support first-generation college students and those from low-income households. 3. Gender Identity and Expression: Embracing gender diversity by welcoming students of all gender identities and expressions can create a more inclusive and affirming campus climate. This may involve providing gender-inclusive facilities, resources, and support services. 4. International and Global Perspectives: Enriching the student body with greater international diversity by attracting students from a variety of countries and cultural backgrounds can foster cross-cultural understanding and global citizenship. This includes promoting study abroad programs and supporting international students' integration into campus life. 5. Diversity of Thought and Experience: Recognizing the importance of diversity beyond visible identities, schools can strive to cultivate a student body that encompasses diverse perspectives, backgrounds, and life experiences. This includes encouraging students with diverse academic interests, career goals, and personal backgrounds to contribute to the intellectual and social fabric of the campus community. Building Effective Time anagement Skills I. Purpose This in-class demonstration shows for the students, in a very graphic way, the importance of priority-setting in their professional and personal lives. II. Format The in-class demonstration takes about 10 minutes. Discussion of any length could follow, or the follow-up questions could be used as a take-home, written, individual assignment. III. Follow-Up This demonstration has the most impact if you are able to follow the directions below and graphically show the students the demonstration. If you are not able to do so, you can instead describe the demonstration to the students, asking them to imagine how it would look. This works as a “virtual” demonstration. You will need the following equipment: One very large container, preferably of glass or transparent plastic, the size of a five-gallon jar or a milk crate; a few (about 3 to 5) large rocks—large enough to hold in two hands but that can all fit in the container at the same time; a quantity of large gravel or small pebbles, enough to fill the gaps in the container when it is holding all of the large rocks; a quantity of sand or water, enough to fill the gaps in the container when it is holding all of the large rocks and all of the pebbles. First, show the students the empty container. Tell them, “This is your life, and you get to decide what goes into your life.” Next show the large rocks to the students and tell them, “These are the heavyweights of your life—your most important priorities. For some of you, one is your religious faith. One may be your family or the family you will start someday. One may be your career or vocation. One may be sports or hobbies or friendships or leadership roles. You only have room for a few heavyweights.” Let the students watch you put the rocks into the container. Then say, “Your life seems to be full, but it’s not.” Show the students the pebbles and say, “These are things that are important to you but not as important as the heavyweights. These pebbles might be your desire to travel around the world or become wealthy or learn a new skill.” Let the students watch you put the pebbles into the gaps in the container. Then say, “Your life seems to be full, but it’s not.” Show the students the sand or water and say, “These are all the little things that are less important to you, things that you spend time on, but that are less essential. These represent activities that fill time: acquaintances, pursuits that are pleasurable but lead to little such as watching television.” Let the students watch you put the sand or water into the gaps in the container. The demonstration is intended to focus students’ attention on how items of differing priorities all play a part in their lives. Ask them to discuss the demonstration. For example, what happens if you fill the container in reverse order so that it becomes full of sand immediately? Where is the room then for the rocks? The students can answers the follow-up questions, below. A. What are your “rocks”? What are your “pebbles”? What are your “grains of sand”? B. Using the classification scheme, determine your most important personal values. This activity should cause students to reflect on items of high, medium, and low priority in their lives, leading them to a greater understanding of their true values. C. Having prioritized your values, determine whether you typically spend enough time on tasks that support your most important values. If you do manage to allocate your time to things that are important to you, explain how you do it. If you don’t manage to allocate your time to things that are important to you, explain what the problem is. D. Discuss some steps that you could take to ensure that more of your time is spent on tasks related to your most important values. Answers will vary, but most students will probably recognize that, like most of us, they often get caught up in spending time on tasks of low priority, crowding out time for more important activities and values. Building Effective Decision-Making Skills I. Purpose This exercise provides students with a scenario that is designed to help them develop their decision-making skills relating to workforce diversity. II. Format Either small groups or individuals may do this decision-making skills exercise. A discussion of the results with the entire class could be helpful. The decision-making part of this exercise should take about 30 minutes. III. Follow-Up A. Develop a layoff plan that will not substantially affect the level of your firm’s diversity. In order to avoid a reduction in diversity, students will have to recommend that some of the workers with seniority (who are primarily white and male) be laid off. B. Decide how best to communicate your decision to the workforce. Students’ suggestions will differ depending on their opinion and preferences. Factors to consider include the need to tell everyone at once, so that gossip and rumors can be avoided, and the need to communicate personally and confidentially with each laid-off employee so that misunderstandings may be cleared up and employees’ feelings respected. C. Make a list of the potential obstacles to implementing your plan. One set of obstacles will revolve around the unpleasant task of choosing and then notifying those to be laid off. Clearly, this will be an unpopular job. Another set of obstacles involves those workers who are not laid off; they will experience heavier workloads, miss their friends, and fear for their own jobs. Morale will clearly suffer. A third set of obstacles will be the reactions of those who were laid off. Some may become emotionally unstable, perhaps even violent; others may bring lawsuits. management at work bet bets it can be better BET (Black Entertainment Network) was started by Robert Johnson to be “for black media what Disney is to the general media.” When its parent, Viacom, charged BET CEO, Debra L. Lee with growth through expanded content, the new programming drew a lot of protests for its profanity-filled content and its negative portrayal of African Americans. Management Update: To further cater to American tastes, Ikea’s newest U.S. store, located in the San Diego suburb of Costa Mesa, California, features an in-store spa offering massages and makeovers. The Seattle outlet sponsors musical events, while the Houston, Texas store offers free backpacks to kindergarteners. 1. Case Question 1: In general, do you think that a member of its target ethnic group makes the most effective leader at an ethnically oriented business like BET? Why or why not? This is a debatable point that should generate intense discussion. The basic question is should an African American be the head of BET? One can argue that an African American leader validates the network because of the perception that programming would be better matched with its target audience. On the other hand, the leader of BET has to provide the vision and hire the right people for programming – actions that do not require that person to be African American. 2. Case Question 2: Among the six arguments for organizational diversity as a contributor to competitive advantage, focus on the following: marketing, creativity, and flexibility. Apply each of these arguments to show how BET might approach its programming problems by reflecting greater diversity in its management decisions. BET’s target market is the category of males aged 18-34 years. To be successful, their programming must match the needs of their target market. The marketing argument suggests that organizations with a diverse and multicultural workforce are better able to understand different market segments than are less diverse organizations. This, then implies that BET’s leadership should reflect their target market. Diversity also helps in creativity. We do not know how diverse BET is, but to offer more creative programming, its workforce should be diverse. The flexibility argument suggests that BET’s workforce should be aware of the needs and desires of its target market and this can happen if it has a diverse workforce. 3. Case Question 3: You’re an intern in the program-development department at BET and you’ve asked to participate in a meeting to brainstorm new programming ideas. What sort of programs would probably be successful? What sort of new programs do you think BET should avoid? What sort of programs might you suggest as possibilities for the network? For BET's program development, successful programming ideas would likely involve a balance of engaging content that resonates with the network's target audience while also offering fresh perspectives and innovative approaches. Here are some potential successful programming ideas: 1. Celebrating Black Excellence: Programs that highlight achievements, contributions, and successes within the Black community can resonate strongly with viewers. This could include documentaries profiling influential figures, award shows honoring Black artists and leaders, and reality series showcasing everyday individuals making a positive impact. 2. Cultural Commentary and Analysis: BET could develop talk shows, panel discussions, or documentary series that provide insightful commentary on current events, social issues, and cultural trends relevant to the Black community. These programs could offer a platform for diverse voices and perspectives to be heard and discussed. 3. Original Scripted Content: Developing compelling scripted series and movies that feature diverse storylines, characters, and genres can attract viewers and elevate the network's programming offerings. BET could explore genres such as drama, comedy, romance, and sci-fi/fantasy, showcasing the talent and creativity of Black writers, directors, and actors. 4. Youth and Family Programming: Creating programming that appeals to younger audiences and families can help BET expand its viewer base. This could include youth-oriented series, educational programs, animated shows, and family-friendly movies that entertain while also promoting positive values and representation. 5. Collaborations and Partnerships: BET could collaborate with other media companies, production studios, and content creators to develop unique and impactful programming. This could involve co-productions, cross-promotions, and partnerships with established brands and talent to create content that attracts attention and generates buzz. In terms of programs to avoid, BET should be cautious of content that perpetuates negative stereotypes, promotes harmful behavior, or alienates segments of its audience. It's essential to prioritize authenticity, integrity, and respect in all programming decisions to maintain trust and credibility with viewers. Some potential program ideas for BET to consider might include: • Documentary series exploring lesser-known aspects of Black history and culture. • Reality competition shows that showcase talent and creativity within the Black community, such as music, dance, or entrepreneurship. • Lifestyle and wellness programs that provide practical tips, advice, and inspiration for viewers to lead healthier and more fulfilling lives. • Interactive digital content and social media initiatives that engage audiences and encourage participation and community-building. • Investigative journalism projects that delve into important issues affecting the Black community, such as systemic racism, social justice, and economic inequality. By pursuing a diverse range of programming ideas that reflect the interests, experiences, and aspirations of its audience, BET can continue to be a leading destination for Black entertainment and cultural expression. 4. Case Question 4: BET, says Sheila Johnson, got off to a good start, “but the problem is that then the video revolution started up.” What does she mean by “the video revolution”? Do you agree or disagree with her assessment of its impact? In what ways does that impact reflect multiculturalism among U.S. consumers? In what ways does it transcend multiculturalism? What Sheila Johnson means is that prior to the video revolution, TV networks competed with each other for the customers’ time. Now, video acts as a formidable competitor. For example, at any time a viewer can watch a program on a network or watch a movie on DVD or through direct streaming. It transcends multiculturalism because such options are available to everyone regardless of ethnicity. However, certain ethnic groups may be less inclined to watch DVDs or movies that are streamed and hence would be less of a threat to a TV network. Solution Manual for Management Ricky W. Griffin, 9781111969714
