Int org development ppt by 5c1f7gn6

VIEWS: 14 PAGES: 185

									• armoogum.sawmy@libertysurf.fr




•   PART I of 3 PARTS

            Year: February   2004 1
• To point out the mechanism of
  development of any International
  organisations respecting the
  International code of ethics( No
  dealing with Mafiosi ),

• Their capability to integrate cultural
  norms and values in a changing
  multicultural environment,            2
• Acquiring a good understanding of
  the main International actors,

• Sharing common values and culture,

• Building up a career within such
  Organisations,

                                      3
• The module is made up of:

           Part I
Organisations Adaptability to a
liberal changing world followed by
a case study



                                     4
• The module is made up of:

         Part II
Strategic Approach to be an
active partner in this dynamic world
followed by a case study



                                       5
• The module is made up of:

            Part III
Initiatives to engineer Cultural values
and evaluate risks followed by a case
study



                                      6
• The module is made up of:



 One final written test carrying 50%
 of the grade




                                   7
• Looking into the types of
Organisations operating in the world:
1)Economic and Political
2)Humanitarian/Military
3)Religious/Cultural
4)Governmental/Non-Governmental
5)Poor at Bombay January 2004/
   Rich at Davos January 2004
                                    8
• Their Missions and Objectives
  based on
1)Core competence & Know-How

2)Feedback for Innovation

3)Growth cycle

                                  9
• The Elements of change :
How to integrate the underneath
elements in the organisations
development
1)Environment
2)Technology
3)Economics
4)Human resources
5)Natural resources               10
A North American Company sets
foot in the Leisure activities market
in France but implemented the
pattern of an American dream.

Cultural mismanagement followed .

Eight Years to Recover.
                                        11
• The four Basic strategies,
  milestones to success

1) The International
2)The Multi-domestic
3) The Global
4) The Trans-National

                               12
• Decision Process which stimulates
  and motivates personal initiatives:

1) Centralised to Decentralised
2)Top to Bottom Pyramidal
3)Matrix with horizontal and vertical
   integration

                                    13
• How to win Competitive
advantage , an approach to Michael
 Five forces and Porter’s Diamond
1)Factor endowments
2)Demand conditions
3)Related and supporting industries
4)Firm strategy , structure and rivalry


                                     14
• The challenge of An European
  organisation to establish factories
  and branches in Americas and in
  emerging countries by applying the
  four basic strategies.



                                   15
• The Fundamental Norms &Value
  system of a country:

1) Social structure

2)Political philosophy

3)Economic Philosophy

                                 16
• The Fundamental Norms & Value
  system of a country:

4)Religion

5)Education

6) Language

                              17
• Hofstede’s:
 Cultural behaviour across border

1)European Union with the ambition
to integrate multicultural behaviour
from Nordic , Anglo-Saxon, Latin
Europe , East Europe and Ottoman
Empire
                                    18
• Hofstede’s:
 Cultural behaviour across border
2)United States , a monolithic bloc
with Four main divergent subgroups
The Hispanic (over 15%),
The Afro-American (10-15%%) ,
The Asian (5-10%) ,
The Euro-American(55-60%),
                                      19
• Hofstede’s:
 Cultural behaviour across border
3) Asia and her Mosaic subcultures:
India and her influence over the
Himalayan countries(Nepal,Myamar,
Bangladesh….)
China and her Hegemony over the
Chinese populated Countries
(Vietnam , Tibet , Mongolia ..)     20
• Risks Awareness

1)Social and Labour rights,

2)Claim for social Welfare and
  security

 3) Equality
.
                                 21
• Risks Awareness

2)Political Unrest
Tien Ammen 1989 shooting,
Ivory coast 2002/3 North Rebellion,
Venezuela 2002/3 Trade Union rights,
Austria 2001 Extreme right governing,
.
                                    22
• Risks Awareness
 3) Migration flux
 From Rural and Urban,
(Overcrowded cities of Calcutta…),
From Poor to Rich,
(Middle East to France and UK..),
From Illiterate to Educated:
(Crossing border of Mexico to US..),
                                       23
• Risks Awareness

4) Climatic risks:
Earthquake(Mexico 2003, Iran 2003)
Tornadoes in Texas,
Monsoon in Bangladesh,
Flood in France le Gard,


                                     24
• The cultural differences which
  separate United states from
  European Union based on :

 A case of Trade conflicts between
 Dept of commerce U.S and
 European Commission



                                     25
• Review all three Case studies

• Questions will be put on the
  strategic principles raised during
  previous cases.




                                       26
• A liberal trend
16th :The mercantilism system

18th :Adam Smith theory of
wealth(Wealth of Nations 1776)

19th : David Ricardo principles of
comparative advantage
 (Principles of economy 1817)        27
• A liberal trend
20th : John Maynard Keynes theory
of state control
(1936-39 The general theory of
Unemployment , Interest and Money)

20th :Milton Friedman monetarist
theory
(Capitalism and Freedom 1962)        28
• European Union (10 to 25 countries)
Rome treaty 1957

Single Act 1986

Maastricht treaty 1993

Nice Treaty 2002
European Constitution September2004
                                  29
• NAFTA
North American Free Trade
Agreement: Americas , Mexico

• Mercosur evolving into the South
American Free trade:
 (Brazil, Arg, Paraguay, Uruguay)
 Chile and Bolivia are candidtaes to
   Mercosur.
                                       30
• ASEAN of 1967
Agreement South East Asian Nations

• APEC of 1990 (The Asian Pacific
  Economic Community)
including US , Japan , China, Asia co



                                        31
• Political
1)The Liberal Christian Democracy:
  US, FR, Italy, Portugal

2)The International Socialist:
  UK, GY , Netherlands ,Sweden,
  Spain

3) Communist oriented: China, Cuba
                                     32
• Military
1)NATO( see Chapter 5 ) ,

2)West Europe Treaty

3) CIS (Ex Soviet Union),

4) The International Islam Council
   (met in Kuala Lampur Nov/03)      33
• The Monotheist Bloc

1)Abraham looking for the promise
   land (The 613 Commandments of
   Torah)
2) Christian a concept of Paradise

3)Islam the duty of Dijad
                     (Expansionism)
                                      34
• The Asian Bloc
1) Hindu, the duty of righteousness

2)Buddhist, desire brings suffering

3) Shintoist , a Japanese view of
   attachment to nature(Goddess Fuji)
4)Confucian and Taoist , the hierarchy
   and the celestial path
                                      35
• The Religious sects
1)Mormons a return to the vision
 of an English bible
(pas de péché originel ,free marriage))

2)Jehovah a vision of Apocalypse

3) Hari Krishna , the omnipresence of
  God’s Avatar Krishna                36
• Cultural
1)Unesco sharing world culture and
  education
2)La Francophonie uniting the French
Cultural community

3)The commonwealth regrouping the
  ex-British occupied countries under
  the presidency of Elizabeth II
                                        37
• Governmental
1)United Nations defending the rights
  of countries to live in peace and to
  re-establish peace(Kuwait, Sbreniza,
  Kigali, Kosovo,Iraq)

2)Convention of Human rights headed
  by Libya( formerly banned by US
  for terrorism,presently welcomed by
  both US and EU),                  38
• Governmental



3)WTO establishing a free market
  between rich and poor countries, the
  control of technology being run by
  the rich


                                     39
• Non-Governmental
1)Green-peace opposed to the use of
   Nuclear energy and arms
2) Amnesty International

3)Ecologist alerting the state of
   pollution on the Planet(Tchernobyl
   case)
4) José Bové and ATAC fighting
   against Globalisation            40
• Davos
The club of rich to define the rights to
free enterprise on the pattern of liberal
economy(private initiatives)
• Bombay Forum
The club of Poor to warn against
globalisation of goods and services ,
creating a trench between the north
and the South                            41
• The intention to go in a designed
   direction:
( Ex: To achieve Peace , to help
humanity, to generate added value, to
meet needs,to anticipate problems, to
fight terrorism…)


                                        42
• Defining achievements in terms of
  Quantity or Quality in a span of time
(Ex. Eradicate the ‘Prestige’ pollution
  within 3 months , Save the lives of
  thousands of Somalia and Darfour
  children,
  Establish a coalition government in
  Ivory coast)
                                     43
• Technological

• Material

• Financial



                  44
• Ethical and Intellectual



• Philosophical and Cultural




                               45
• The Human’s resources &
  Motivation (Transfer of Knowledge)

• The State of technology
(Integrate Modernity for productivity)

• The Investment
(Look for the right use of Share
  holders money)
                                         46
• Natural resources

A survey of resources and the rules to
control and manage them, Ex:
(Deforestation, protection of Wild
  species,Limiting the digging Oil
  wells, Watch the world Water
  reserve , ..)

                                     47
• Market’s reactions to services and
  goods offered

• Innovate upon new needs




                                       48
• The development phase
(New services are now introduced in
  the market)



                                      49
• The Exponential phase
(The activity is now expanding)




                                  50
• The Maturity phase
(Market is getting saturated)




                                51
• The Declining Phase
(Time to innovate to meet new
  demands)



                                52
• Politics
1)Fall of Berlin wall
2)11th September 2001in US
3)Afghanistan’s take over
4)Israel-Palestine fratricide war
5) War in Iraq
6)The 11th March 2004 event in Spain
                                   53
• Pollution
• Kyoto(1997) and Geneva
conference on the limited rights to
pollute not signed by US, China ,
India.
Recently approved by Russia
(Nov.2004)
Now under revision at Buenos
Aires(Nov.04)                         54
• Internet free access to world
  information bank(a mythology or a
  technology)?

• High speed Numerical channel
  for image coupled with voice

• Mobility and Flexibility of the
  Education Vector over the planet
                                      55
• From Uruguay Round to WTO latest
  implementation in Qatar year 2001,
  clashed in Cancun 2003
From controlled centralised economy
   to market economy as advocated by
   Free trade protagonists (DAVOS
   January 2004, Morocco December
   2004)
                                   56
• Population rate is growing

• Birth of a flexible society generating
  spontaneous professional needs

• New institutions to host social rights

• Measures to provide employment to
  citizens
                                       57
• Case Study No 1

• 2 to 4 page Report followed by an
  oral per Group (30 minutes each
  group)


                                      58
•   Expansion

•   Strategies




                 59
• Strategic Approach to be an active
  partner in this dynamic world




                                       60
• 1960’s US Multinational
  Ex: IBM , Cocacola, Oil digging,
     GE’s Appliances
• 1997 US , Japan, UK, France
  Ex: Sony , BP, Michelin
• 1998 China, Korea , Latin America
  Ex: Chinese Toys , Daewoo Car,
      Argentina Beef
• 2004 China buying off IBM-PC 61
• Foreign Direct Investment ,

1)Taking a significant equity stake in
a foreign business :
( US No 1 recipient of FDI inflow ,
China 2nd)



                                     62
• Foreign Direct Investment ,

1) Horizontal :
Investment in the same industry abroad

2) Vertical :
Firms abroad sell domestic products


                                      63
• Foreign Portfolio Investment

Investment in foreign Bonds and
stocks :
(Government Mutual and Pension
Fund)



                                  64
• Regrouping Multinationals to create
   competitive force
1)Aeronautic Industry
 ( Boeing and McDonnell to challenge
   Aerospace , see case study No 3)

2)Computer industry
(HP-Compaq- to be an alternative to
  IBM)
                                      65
• Regrouping Multinationals to create
  competitive force
3)Telecommunication :
(Fr.Telecom-Orange to counterbalance
Vodaphone-Deutche Tel),
TimeWarner-Aol to face MCI-Sprint )
4)Finance/Insurance:
(Crédit Agricole-Lyonnais v/s SG-Bnp
Generali-AGF v/s Prudential)       66
• Administrative staff

1) Finance , Budget to support
   initiatives

2) Marketing to adjust opportunities

3) Recruitment to integrate fresh
   Know-how
                                       67
• Managers and Field people

1) Managers are the depository of
   market’s behaviour

2)Managers point out the direction to
   follow
3) Managers motivate field people

                                        68
• Cultural differences exist for
  historical and idiosyncratic reasons

Four Cultural approaches are used in
the decision process:
1)Ethnocentric
2)Regiocentric
3) Geocentric
4) Polycentric
                                         69
• The Ethnocentric approach , the key
  management is held by parent
  company

• Focus is put on home-country
  national at domestic headquarters



                                      70
• Head Office organises channel
   distribution
1) Network of exclusive dealers
    in Western Countries
2) Own agencies and offices
    in emerging countries
3)Own subsidiaries
   in Eastern European countries
    ( Auchan in Poland)
                                   71
• The Regiocentric approach ,regional
  insiders to co-ordinate within the
  region

1)Australian can better manage the
   south Pacific region
2)Japanese to manage the south East
   Asia region
3)British to manage the Anglo-Saxon
  region                            72
• Decisions delegated to Regional
  headquarters

1) Implemented at Regional level
   (Nordic European , Anglo-Saxon ,
   Latin Europe , North/West US,
   Central US , East US, Pacific Rim,.)



                                     73
• The Geocentric approach

• The best people at key positions
  regardless of nationalities

• A broad culture development



                                     74
• Decisions delegated to Subsidiaries

1) Implemented at country or
   National level ( South Africa, UK,
   Australia , France)




                                        75
• The Polycentric approach approach

• Local nationals hold key
  management

• Local People know what is best for
  them


                                   76
• Decisions delegated to Local offices
1) To adapt to local needs
   (Automobile Industry, Food &
   Beverages Industry, Clothes and
   Wear Industry,..)

2) To manufacture at Scale Economy


                                     77
• Top Management decision
1) Feedback from bottom of pyramid
  to create awareness at the Top
 ( Shoe Industry Nike, Electronics ,
  Pharmaceutical , Aircraft, Research)

2) Innovations are the pre-emption of
   Top Management
                                        78
• Both Horizontal and Vertical
  Integration

1)Every decision meets 2 processes:
The vertical hierarchy crossed with
staff on-line ,
2)Profit and Loss responsibility is
   shared
3) Motivation is enhanced
                                      79
• Does Decision Process Dictate the
  four Basic Strategies



• There is a dialectical approach
  depending on the Parent Company
  culture (see Nestlé’s Case)

                                      80
• Head office retains high Control
   over Marketing and product
   Strategy,
1) Intel’s marketing ‘ Intel Inside’,

2) The video Industry Sony &Toshiba

3)Coca - Cola ‘s strategy at head office
  the patent and the formulae,
                                        81
• Head office retains high Control
  over Marketing and product
  Strategy,

4)Insurance and Banking regrouping

5)Aircraft Industry (Airbus to India)

6) Wine and spirit Appellation
                                        82
• Centralised Product development

1)Peugeot and Nissan development

2)Ariane spaceship

3) Les chantiers atlantiques(Naval
   construction)

                                     83
• Core Competence transferred From
   Head to Subsidiary
1) GE’s Scanner program , core
   competence to subsidiary ,
   accessories to outsourcing

2)Toyota’s car industry in
  Valenciennes

                                 84
• Core Competence transferred From
   Head to Subsidiary
3) IBM technology transferred to
   Japan
4) Nuclear technology transferred to
 Pakistan by Chinese, US and then
from Pakistan to Libya, Korea, Iran

5)Aids Therapy between US and FR
  supported by Generic Products    85
• Core Competence transferred From
  Subsidiary to subsidiary. Skills and
  knowledge flow to and fro
1) Infant food Formulae

2) food recipes Maxim’s in China and
  Russia
3Volkswagen in Brazil

                                     86
• National tastes and Preferences
  merge into a huge market

1) Ex: Consumer markets
Coca, Wine, Mc Do’s, Nintendo
2)Ex: Industrial Markets
Specifically Electronics
3)Ex: Divergent markets
Specificity of cars
                                    87
• Low Cost strategy & Selling
  standard products at Scale economy
1)Semiconductors (Motorola, Intel)

2) Food and Beverages (Paul bakery)

3) Toys ( Toys R Us)


                                      88
• Profit from Experience curve effects
   and local Economies
1) Club Mediterranée over the world

2) International Business schools
 Insead in France and Singapore

3) Japan’s electronics in Asia

                                    89
• Customising product & marketing
   strategy to match different national
   needs
1) Merchandising approach ( Luxury
   perfume)

2)Tastes or Colour approach ‘Disney
  in Japan’ or Cardin’s fashion in
  Middle East
                                          90
• Customising product & marketing
  strategy to match different national
  needs

3)Services On Board Middle East
  Planes

4)Left hand driving in British Area

                                         91
• Customising product & marketing
  strategy to match different national
  needs
5)Newspapers and Articles contents
  No Blasphemy against national
  feelings:
      Elizabeth II, Religious beliefs

6) Logistics strategy
                                         92
• How to be Operational to acquire
  Trade Notoriety




                                     93
• Where should the focus go?

1)To the Market Economy (145
  countries complying to WTO
  regulations)

2)To those respecting Deregulation
   removing all legal restrictions
  (Ex: EDF/GDF in France)
                                     94
• Where the Focus should go?

3)To those who are Conformed to
  safety standards as imposed by the
  European Union Logo

4)To those who recognise the laws
  governing Liability and
  responsibility
                                    95
• The Political Systems

1) Socialist Republic (The republic is
   right and integrating)

2) Western Republic(The people are
  right and Charitable)

                                         96
• The Political Systems
3)Western Monarchy
(No Constitutional right of the
   monarch but he represents a
   national symbol )
4) Middle East and Arab Monarchy
(Divine right of the Monarch and he
   represents a religious symbol)
                                      97
• Where is the Green Grass?

1)At entry Ports
(N.York, Rotterdam, Marseilles)

2)In Cities
(London, Chicago,Berlin, Beijing,
  Calcutta)

                                    98
• Where is the Green Grass?

3)In Industry Zones
( East of London,The Ruhr Valley,
Turino, Grenoble)

4)In untapped Areas
(Le Limousin, Montana , Vancouver,
 Bielo-Russia)                     99
• What population to target?

1) Children , Women or men ?
   Why?



2) Age-group and the life expectation
   curve
                                    100
• What population to target?

3 ) Class group
Upper , Middle , low purchasing
power

4) Technology group
Those who claim modernity or those
  who claim rural values?
                                     101
• Strategic alliances

1) Choice of Partners or Joint venture



2) Into complementary Products



                                     102
• Distributors

1) Network to acquire via partners

2)Create fidelity awareness of
   partners



                                     103
•   Evolution creates an Industrial
    Dynamic ; Do Integrate It.




                                      104
                The Five Forces
               Potential
               Threats of Entrants

Bargaining     Industry Competitors   Bargaining
   power          Rivalry among        Power of
of Suppliers       existing firms       Buyers

               Threat of Substitute
                    products

                                                   105
     RIVALRY AMONG EXISTING FIRMS

Fighting for a position by :
            Price competition,
            Product Innovation,
           Customer Service,



                                    106
    RIVALRY AMONG EXISTING
     FIRMS

•    Japanese v/s US cars,
•     McDo’s v/s QUICK
•     Boeing v/s Airbus ,
•    Intel v/s AMD ,
•    Leisure Park Disney v/s Asterix )

                                         107
   Threat s of New entrants:

New Entrants bring new capacity and resources,
Product differentiation by New Comers,
Capital Investment by New Comers,



                                                 108
          Barriers to new entrants:

• Established firms have a created a strong
  know-how
• Scale Economy ( Mass Production, Low Price),
• Switching costs (Buyers move from one supplier
  to another),
• New comers do not access distribution channels,
                                                    109
         Product Substitutes
• Kill years of Research by existing firms
• Limits the potential returns of an industry
 (ex: Corn Syrup substitute for Sugar,
  Generic medicine from India, S. Africa and Brazil,
  Low Cost production in Asia)



                                                   110
        Buyers bargaining power

•   Force down prices
•   Ask for higher Quality and services at the
    expense of the industry




                                                 111
          Bargaining power of suppliers

• Raise prices,
• Reduce quality of Purchase of goods and services,
(L’OPEP usually raises prices or reduces volume of
production , the case of 1973 shock, correction done
  in Nov. 2004)


                                                  112
               Threats
            Barrières à
             l ’entrée
Suppliers                    Buyers
            Environnement
Vendeur      Concurrentiel   Acheteur

            Concentration

             Substitutes
                                      113
         Barrières à l’entrée(Threat):

• Do not open the competitive market to New
  comers or innovators
Ex: Computer industry with Intel ,AMD, Rockwell
  ,no chance for new comers


                                                  114
    Concentration (Industry competitors):

• Either suppliers or buyers can create concentration
  and avoid rivalry(entente illicite des pétroliers)




                                                   115
            Vendeurs(Suppliers power):
• Established suppliers (if no new suppliers are
  allowed) can impact on the negotiation of their
  products ,
• Buyers need to become flexible.
 Ex: EU negotiated the Mad cows issue against
  French suppliers of Bœuf Français,
• It was fighting against a cultural value of France
  principle’s of Précaution.
                                                       116
         Acheteur(Buyers Power):

• SuperMarket distribution power of negotiation
   versus producers,
• Base products come from abroad : East Europe,
   China , Pakistan ,
( Bata failed in France,Toy R Us closing in Fr.)


                                                   117
    An Alternative Analysis of
    Competitive advantage

• Some Nations Succeed , Some Fail



•     WHY?


                                 118
            Firm strategy,
chance   structure & rivalry


   Factor               Demand
 Endowments            conditions

              Related &
              supporting
                               Govt
              Industries
                                      119
             Factor
           Endowments
• Basic factors(see Canada, Australia)
Some nations benefit from Natural
resources,Climate, Location, Demogr:
• Advanced factors(see US, EU)
Communications infrastructure,
Skilled labour, Technological know
how , Research facilities           120
            Demand
           conditions
• High and sophisticated pressure
  from customers create quality and
  innovative products
• Firms get specialised to respond to
  the needs of their customers
(Ex: Nokia phones, Swiss Watches,
Japanese cameras, Indian silk..)
                                    121
             Related &
             supporting
             Industries

• Presence of competitive suppliers or
  related industries ( Computer in US,
   Numerical phones in EU) create
  competitive advantage
• Regrouping cluster of related
  industries ( Silicon valley in US ,
  India , Grenoble)                   122
           Firm strategy,
        structure & rivalry
• Management of firms are handled by
  their management ideologies
  focused by their know-how in
  Engineering, Finance, Admin:
• Domestic rivalry creates pressure
  for innovation, cost-production ,
  quality control
                                 123
             chance

• Chance is outside Firms control , a
  breakthrough in technology

               Govt

• Government subsidies to influence
  home demand , investment in public
  sectors( US in the Aircraft Industry)
                                     124
• End of Part II

• Case Study N0 2 : NESTLE




                             125
            PART    III

Human migration has challenged us with cross
Cultural experiences



                                               126
        Primary CIVILISATIONS

Asia               : RICE
Europe/Middle East : WHEAT
Americas           : CORN



                                127
           Historical Civilisations
Middle East: Babylonian , Egyptian
              (3500BC to 500BC)
Asia    : Indo-Aryan, Sino-Himalayan (2500BC)
European : Greco-Roman( 500BC to 450AD)
America : Pre-columbus Incas 10th -14th AD
                          Maya 12th- 14th AD
                                           128
            CULTURE(origin Agriculture)

Polishing from Rough to refine state

Architecture and Arts

Language
                                          129
             TRADITIONS

Ancient beliefs,
Oral transmission not subject to interpretation,
What is sacred.


                                                   130
          VALUES

Human (Tolerance)
Moral
Religious
Civic


                    131
Understand all the factors that guide our

behaviour individually and collectively



                                            132
 GEOPOLITICS OF OUR THREE CULTURAL BLOCKS

• Political philosophy    Economic Philosophy

• Social structure          Religions



• Language                   Education


                                           133
                SOCIAL STRUCTURE

• Political philosophy         Economic Philosophy

• Social structure                 Religions



• Language                         Education


                                                134
            SOCIAL STRUCTURE
•           Primacy of Individual

     1) People are right
     2) Mobility through Social Strata
     3)Individual Achievement
    4) Entrepreneurial Activity
    5)Sharing Managerial Experience
                                         135
         SOCIAL STRUCTURE
•           PRIMACY of Group
  1)The republic is right
  2)Poor Mobility through the Strata
   Ex: Masonry in GB, Enarque in FR
   Oligarchy in S.America,Mandarin in China, Caste
  in India,
                                                136
       SOCIAL STRUCTURE
•      Bureaucratic Organisation

1) Reliance on Norms and Procedures
   Ex: Unesco, Germany, Soviet Union



                                       137
          SOCIAL STRUCTURE
•          Technical Organisation

    1) Focus on Technical Expertise
    Ex:Airbus, CNRS



                                      138
         SOCIAL STRUTURE
         Managerial Organisation

1) Flexibility to readapt to new requisites
  Ex: Nestlé, Airbus



                                              139
             POLITICAL PHILOSOPHY

• Political philosophy         Economic

• Social structure                  Religions



• Language                           Education


                                                 140
          POLITICAL PHILOSOPHY
                  Freedom
1) Freedom of Opinions
   Ex: Communist Led Country - China , Cuba
Religious Republic -Chiite Iran, Wahhabit S. Arabia
2) Rights to possess and to Negotiate
   Ex: Napoleon Law in France
                                                 141
            POLITICAL PHILOSOPHY
                  Freedom
3) Rights to produce Added-values
   Ex: Free entrepreneur subject to Trade Law
      not State Law or Mafiosi Law
4) Freedom of Loyalty to the country
   Ex: Solidarity in US v/s Civil War in Ivory Coast
                                                   142
          POLITICAL PHILOSOPHY
                 Equality
1)Equality of Justice
  Ex: In US , Money can buy the application of
     Laws
  The case of ‘Executive life’ on-going process,
  In China Law is administered under Party’s care
                                               143
          POLITICAL PHILOSOPHY
                  Social Obligations
1) Obligation to provide Food , Shelter, Education
   as pronounced by M. Chirac 3.12.03 Tunis
   (Minimum Activity in France, Minimum Wage in
   UK
    2) Universal Healthcare Ex: CMU in France
                                                 144
           ECONOMIC PHILOSOPHY

• Political philosophy      Economic Philosophy

• Social structure               Religions



• Language                        Education


                                              145
            ECONOMIC PHILOSOPHY
                State Controlled Economy
1)State controlling heavy goods Production (China,
   India)
2)State holding majority Equity against deregulation
   (Telecom, Utility, Transportation)
3) State participating as a partner (Ex: Alsthom),

                                                  146
             ECONOMIC PHILOSOPHY
                 Market Economy
1) Single Act 1986
  (Free circulation of Goods and services)
2) Infrastructure for distributing Goods and services
3)No protectionism (US lifting the Steel custom
   Taxes)
                                                    147
       ECONOMIC PHILOSOPHY:Specialisation
1) Finance ( Switzerland Banking)
2) Technology goods (US Computer)
3) Consulting Services (India Tata)
4)Heavy goods (France -Thales)
5)Home Appliances( Italy - Zanussi)
6) Miniaturisation (Japan - Sony)
                                        148
            ECONOMIC PHILOSOPHY
           Law of Absolute or Relative Advantage
1)Market Split per Factor of Endowments :
Gold in S.Africa or Russia,
Oil in Middle East
Planes in EU and US (Boeing/Airbus),
Cocoa in Africa, Corn in S.America,
                                                   149
                     RELIGIONS

• Political philosophy           Economic Philosophy

• Social structure                 Religions



• Language                          Education


                                                  150
              RELIGIONS : State or Not?
1) UK , Queen is head of the Anglican Church
   sworn by Archbishop of Canterbury
2) US president is sworn on the Bible
3) France subsidises the Church , Alsace-Lorraine is
   submitted to the law of Concordat
4) Islamic countries refer to Coran for Guidance
5) Israel Laws of the Torah,jurisprudence of Talmud
                                                  151
               RELIGIONS
                 Family Entity
1) Save the Family :Opposition of the church to
   Abortion, so are French and US Lobbies
2)Restrict the Family :China imposes a one child
   family, else loss of rights
3) Woman , a curse for Humanity
Female infanticide in Indian and Chinese Villages
                                                    152
         RELIGIONS
      Monotheist beliefs?

 1)Jew’s belief in the table of laws being handed
over directly to Moses , not through the
intermediate of Priest.
What is the place of Woman?.


                                                    153
            RELIGIONS
      Monotheist beliefs

2) Christian’s belief in the Son of God
 Practice of chastity and renunciation are
 recommended.
 Woman do not enjoy the same religious rights .


                                                  154
            RELIGIONS
           Monotheist beliefs

3)Muslim’s belief that Mohamed received the
  universal law , the Charia ( it is inherited from
  Mesopotamia).
  Woman is not recognised an active rôle before the
  law.

                                                 155
               RELIGIONS :Polytheist
1) Hinduism/ Shintoism
  God is omnipresent in every creature ,
   He is reincarnated everywhere wherever cosmic
   energy can be found.
2) Buddhism
   Everyone is born to be a God, he passes different
   times through life before he attains it .
                                                   156
            RELIGIONS : Polytheist
4) Sikhism
   There is only one God, human beings keep being
   reborn until perfection
5) Jainism
  Men are God themselves , no harm to be done to
   any creature.


                                               157
                 EDUCATION

• Political philosophy       Economic Philosophy

• Social structure             Religions



• Language                      Education


                                              158
               EDUCATION
 Usually a place to socialise by Jules Ferry
1) Free and General ( Tendency to differentiation in
   France) Produces general Knowledge graduates
2)Selected in France and UK ( ENA )
    Produces Top executives
3) Easy access in UK ( Open University)
   Produces long life students to reach graduation
                                                   159
              EDUCATION

4) Selected in UK (Cambridge)
Produces Research and counsellors class
5) Free State School
  Poor students need stronger guidance
6)Private in US (MIT, Harvard)
Produces Technology specialist and Business men
                                                  160
               EDUCATION
7) Religious oriented
Produces top people with clear dogmatic direction
8)Sex differentiation
Produces One class for Scientific , one for literary,
Causes a split in the world configuration



                                                        161
               LANGUAGE

• Political philosophy    Economic Philosophy

• Social structure          Religions



• Language                    Education


                                           162
              LANGUAGE
1) Communication is an irreversible process
   ( Symbols as expressed by oldest civilisations ,
    Gestures as used by Mediterranean population,
    Languages as imposed by modern cultures),

 Is communication Verbal or Non-verbal (Very
  Verbal in US , less in GB , still less in Japan)?
                                                      163
             LANGUAGE

2) The context where words are expressed
   (Train : A locomotive or …
   (Instrument : A mechanical device or …
   (System : An on-going process or a concept…



                                                 164
              LANGUAGE
3)Is language a commitment?
  Not enough , it must carry empathy and emotions
  to make sure that nothing is taken for granted.
(Ex : US space probe crashed on March , GB had
  equipped the module with a gauge in British
  ‘Yards’ not in US Meters. The two parties had
  taken for granted they understood each other
  through common language)
                                                165
HOFSTEDE’S MODEL (A Psychologist at IBM)

     How Culture relates to Values




                                       166
            POWER DISTANCE

US : 40
FR: 68
India: 77



                             167
           Power Distance

US : Low Power distance (Noted 40)
Inequalities of power and wealth are played down




                                               168
               Power Distance

FR: High Power distance (noted 68)
Physical and intellectual inequalities turn into
  inequalities of power and wealth



                                                   169
           Power Distance

India : Higher Power distance (noted 77)
Inequalities in caste , class, make the difference
Inequalities of Power and wealth are exhibited



                                                     170
      UNCERTAINTY AVOIDANCE

US    : 46
FR    : 86
India : 40



                              171
            Uncertainty Avoidance

US :Low Uncertainty avoidance (Noted 46)
Ready to take risks and less emotional resistance to
  change



                                                       172
          Uncertainty Avoidance

FR: High Uncertainty avoidance (noted 86)
Resistance to Change, Focus on Job security
Careers, Retirements (Strike..),
Subject to rules and regulations (Laws to regulate)


                                                      173
       Uncertainty avoidance

India:Low uncertainty avoidance (noted 40)
Ready to take Risks , Ready to integrate
Emotions fluctuate,



                                             174
       INDIVIDUALISM

US     : 91
FR     : 71
India : 48



                       175
              Individualism

 US :Very High Individualism (noted 91)
 Individual achievement and freedom are valued
 Loose tie between individuals.
“ I did It my Way’ a hymn to individual
   Achievement.
                                                 176
            Individualism

FR: High Individualism (Noted 71)
Individual achievement and freedom are valued (pay
  for performance in the police force),
At the same time , ties between individuals can be
  tight (Resto du Coeur)

                                                177
                Individualism

India : Low individualism ( noted 48)
Interests of the family or the collectives are cared
  upon (Development of Homes for the needed)



                                                       178
       MASCULINITY
US : 62
FR : 43
India : 56


                     179
         Masculinity/Femininity

US : High Masculinity (Noted 62)
Sex roles are differentiated,
Masculine values are the ideals



                                   180
             Masculinity/Femininity

FR :Low Masculinity ( Noted 43)
Strong tendency to reduce differentiation between
  men and women (Loi sur la parité )
Masculine values are not the main ideology .


                                                    181
            Masculinity/Femininity

India: Medium masculinity (Noted 56)
 In Public , Masculine values can be achieved by
   Women,too.
Mrs Gandhi ruled with an Iron Hand .


                                                   182
              RISKS ANALYSIS
Economic and Finance
Political and social
Labour
Climatic
Human
                               183
       END OF PART III
You are about to confront the positions of US and
EU in a terrible war trade in the 90’s


   BOEING/AIRBUS CASE

                                                    184
          WRITTEN TESTS

This to evaluate your approach to international
development.

          GOOD LUCK
                                                  185

								
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