28516841 charles martin in uganda the case presentation

7/27/2019 28516841 Charles Martin in Uganda the Case Presentation

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CASE PRESENTATION


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Prepared for

Mr. Md. Mahbubul Kabir

Course InstructorInternational Business

Institute of Business Administration

University of Rajshahi


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Charles Martin in UgandaINTERNATIONAL BUSINESS


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Introduction to the Case

Hydro Generation (HG) is constructing a large dam in Uganda and is

supported by the Ugandan Government as only 5% of the population has

access to electricity

Current project liaison specialist, Charles

Martin, has satisfactorily accomplished

what he had been assigned, however HG

vice-president is concerned about his

lifestyle and some of his business

practices in Uganda

Should Charles be allowed to stay in

Uganda for the construction phase of the dam? Will he be beneficial?

Site of Project


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The Concept of the Case This case shows how important it is for a foreign company to

understand and adjust to ever changing operatingenvironments

This case we have found HG Companys culture and also theproblems the company was faced because of culturaldifferences and legal facilities.

All people have culturally ingrained responses to givensituation

Gives a concept that an international company must besensitive to the cultural difference in order to predict andcontrol its relationship and operations.

It should realize that its accustomed way of doing business

might not be the only on best way When doing business in abroad a company should first

determine what business practices in a foreign country differfrom those its used to.

Management then must decide what if any adjustmentnecessary to operate efficiently in the foreign company.


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Uganda

Country of economic, political and cultural complexity

32 Million inhabitants, of which only 50% have access to clean water

Official language is English, but Bantu or Nilotic languages are very

common, and 2/3 of the population is Christian, the other 1/3 is mainly

Muslim or follower of animistic religions different lifestyles, valuesand opinions

Average life expectancy of about 45 years, average population age is 15

Conquered independence from British colonial rule in 1962, after which:

Severe dictatorship

Several refugees from neighbouring countries

One of the most corrupt countries in the world and nepotism is a norm

Entry of foreign countries is not heavily regulated


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Hydro-Generation

HG, U.S.-based company, specialist in power plants (dams)

Values strongly built on the Christian culture

Employees have a high degree of empowerment, being fully

responsible for their actions

First time it is building in Africa

No code of conduct concerning expatriates lifestyle, but its

corporate culture was one that reflected the lifestyle of a

prosperous international company


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Charles Martin

Graduated with a major in African studies

Joined Peace Corps and served in Kenya working with the start up

of small businesses, taking the opportunity to visit neighbouring

countries

Joined HG 3,5 years ago, bidding and budgeting projects for two

years, after which he was assigned to Africa

Devotee of the philosophy of integrating the African society, not

drawing attention to oneself, but learning and respecting its

culture


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Charles Martins Assignments

Gain support and necessary permissions from the Ugandan

governmental authorities and affected villagers for the dam

construction

Build an operating structure and facility, with people responsible

for local purchases and hiring, customs, immigration affairs,

logistics of materials and record keeping

Help foreign visitors and HG expatriates to become accommodatedand oriented when visiting/arriving at Uganda


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Charles Martins Practices

Lives among middle-class Ugandans and not in up-scale

neighbourhoods where most international managers live

Doesnt integrate himself within the expatriates community

Makes extra payments to local people to get things moving

faster

Hires staff closely related to Government officials

Participated in tribal rituals to get support from villagers affected

by the dam construction, although being employed in a company

embedded in Christian values


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Problems with Charles Martin

Independent lifestyle,

Participation in tribal rituals,

Way of achieving results,

Unethical practices, Payments which might be illegal under U.S. law,

Martins distance from the expatriate

community


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Polycentrism In polycentric organizations, control is decentralized so

that managers feel free to conduct business in what hethinks.

In other words, business units in different countrieshave a significant degree of autonomy from the homeoffice and act like local companies.

It is an overly cautious response to cultural variety

A company that is too polycentric may shy away fromcertain countries

In intercultural competence the term polycentrism is

understood as attitude and openness towards othercultures, opinions and ways of life


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Ethonocentrism

Ethnocentrism is the belief that ones own cultureis superior to others

Managers overlook important cultural factors

abroad

Management recognizes the environmentaldifferences but still focuses on achieving home-

country

Management assumes that the introduction of its

new products or ways to produce and sell them isboth necessary and easy to achieve when it is

really a complex process


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Geocentrism Geocentrism is between the extremes of

polycentrism and ethnocentrisms

It is the practices that are neither the homeoperations nor the host-country companys but ahybrid of the two

When the host-country environment is substantiallydifferent from home

Geocentrism is when a company sets operations onan informed knowledge of home- and host-country

needs, capabilities, and constraints. This is the preferred approach to business dealings

with another culture


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Discussion on Question 1

Language Barrier Religious Concerns

Violent Political History, Political Instability and

Nepotism

Different types of communication language Higher and lower class discrimination

Nepotism is a norm for employment staffs

Restructuring of rules and international law

People are involve with corruption

Lack of the legal opportunity

People of Uganda's are too much devout to their religion and beliefs

and culture


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Martin exhibited a more Polycentric (autonomous)attitude,

Green seemed to be more Geocentric in his

approach.

While Martin was more concerned about hiseffectiveness with respect to his assignment in

Uganda, Green was more concerned with

corporate-level issues.


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Martin was right about the controversial actions he tookin the Uganda operation

HG saw the wisdom of having someone with both a

home-country corporate perspective and a knowledge

ofUgandas economic political and cultural complexity

Martin know that how to operate business as a foreign

company in a country like Uganda

Arguments can be made for the positions of both Green

and Martin

Martins rejection of the typical expatriate lifestyle ran

counter to Greens idea of a desirable corporate image


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The result if Martin had not taken those

actions would be, HGs business operation would move slowly

One may wait months to get a phone installed,supplies delivered on operating licenses issued

without paying tips Hiring people or staffs will be difficult because

Nepotism is a norm in Uganda

Without hiring a specialist in African religions and

participation in the ceremony by Martin. HGwould not continue its operation and displace thevillagers where the dam will be built

Every task would not be completed on time,within the total budget


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Discussion on Question 4 If employed someone else, same problem will

occurred.

Martin should be the right person for the job. Given

the importance and the size of the project,

It seems only logical to employ someone who isextremely well versed in the culture of Uganda

Whether that person is Martin or someone else,

however, HG must establish clear guidelines that

reflect both U.S. law and corporate policy to guidethe managers of their foreign operations


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Conclusion

The internationalization of business requiresthorough research of the other countrys culture

There is a need for accommodation to the different

standards of doing business by the host company in

the foreign country

It is necessary to respect other countrys cultural

beliefs,

People working in a foreign environment should tryto become geocentric.


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Thank You All

28516841 charles martin in uganda the case presentation

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