CCASEASE P PRESENTATIONRESENTATIONCCASEASE P PRESENTATIONRESENTATION

Prepared for

Mr. Md. Mahbubul KabirCourse Instructor

International BusinessInstitute of Business

AdministrationUniversity of Rajshahi

Prepared by

1. Mostofa Khalid (080001)2. Md. Golam Sarowar Jahan (080004)3. Md. Rashid Hossain Chowdhury (080007)4. Khandoker Arif Ahmad (080011)5. Md. Tauhidul Alam (080015)6. Sajal Kumar Das (080018)7. Tanusree Barman (080022)8. A. T. M. Sharifur Rahman (080025)

9. Md.Abdullah Al Mamun (080029)10. Md. Asadul Islam (080032)11. Md. Ratan Mian (080036)12. Ahsan Tarique (080040)13. Rony Kumar Datta (080043)14. A. N. M. Saidullah (080046)16. Md. Mostafijur Rahman (060030)

Group: A, MBA (evening) Program, 7th Batch, 4th Semester

Charles Martin in UgandaINTERNATIONAL BUSINESS

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

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

company to understand and adjust to ever changing operating environments

• This case we have found HG Company’s culture and also the problems the company was faced because of cultural differences and legal facilities.

• All people have culturally ingrained responses to given situation

• Gives a concept that an international company must be sensitive to the cultural difference in order to predict and control its relationship and operations.

• It should realize that it’s 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 differ from those it’s used to.

• Management then must decide what if any adjustment necessary to operate efficiently in the foreign company.

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, values and 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

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

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

Charles Martin’s 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

accommodated and oriented when visiting/arriving at Uganda

Charles Martin’s Practices

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

neighbourhoods where most international managers live

• Doesn’t 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

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,• Martin’s distance from the expatriate

community

Polycentrism• In polycentric organizations, control is

decentralized so that managers feel free to conduct business in what he thinks.

• In other words, business units in different countries have a significant degree of autonomy from the home office and act like local companies.

• It is an overly cautious response to cultural variety

• A company that is too polycentric may shy away from certain countries

• In intercultural competence the term polycentrism is understood as attitude and openness towards other cultures, opinions and ways of life

Ethonocentrism• Ethnocentrism is the belief that one’s own

culture is superior to others• Managers overlook important cultural factors

abroad • Management recognizes the environmental

differences but still focuses on achieving home-country

• Management assumes that the introduction of its new products or ways to produce and sell them is both necessary and easy to achieve when it is really a complex process

Geocentrism• Geocentrism is between the extremes of

polycentrism and ethnocentrisms • It is the practices that are neither the home

operations nor the host-country company’s but a hybrid of the two

• When the host-country environment is substantially different from home

• Geocentrism is when a company sets operations on an informed knowledge of home- and host-country needs, capabilities, and constraints.

• This is the preferred approach to business dealings with another culture

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

Discussion on Question 2• Martin exhibited a more Polycentric

(autonomous) attitude, • Green seemed to be more Geocentric in his

approach. • While Martin was more concerned about his

effectiveness with respect to his assignment in Uganda, Green was more concerned with corporate-level issues.

Discussion on Question 3• Martin was right about the controversial actions

he took in the Uganda operation• HG saw the wisdom of having someone with both

a home-country corporate perspective and a knowledge of Uganda’s 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

• Martin’s rejection of the typical expatriate lifestyle ran counter to Green’s idea of a desirable corporate image

Discussion on Question 3• The result if Martin had not taken

those actions would be,• HG’s 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. HG would not continue its operation and displace the villagers where the dam will be built

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

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 is

extremely 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 guide the managers of their foreign operations

Conclusion

• The internationalization of business requires thorough research of the other country’s 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 country’s cultural beliefs,

• People working in a foreign environment should try to become geocentric.

Thank You AllThank You AllThank You AllThank You All