selling to india Essay

1. Should he pay the “commission” and, if so, to whom? Explain your reasoning. If he pays, how should he handle the situation with the sales manager and the vice president of sales? In your answer, include a discussion of the arguments in favor of paying and the arguments in favor of not paying.

It was a strategy to centralize the management which resulted in ignorance of local factors of the global market. As a result they lost a huge market share and suffered to remain in the competition.

A third failure in understanding the operational environment occurred when Sears coordinated the delivery of rice from Haidho to the stricken area in Sarkhan. His lack of understanding of the Sarkhanese and communist tactics was reciprocated by his subordinates. The latter became evident when the rice bags were labeled as if coming from the communists and no USIS employee realized what it meant. In addition, there was no effort from US employees to talk or interact with locals at the destination. The confusion led the Sarkhanese to believe that the rice bags in fact were provided by the communists.

I do not believe Schindler made the right choice in assigning Silvio as the general manager of India. Silvio had little to no "real world" international experience. Silvio had much success in Sweden but there are several factors that limited his success in India. Silvio had high "warrior" and low "monk" attributes. Silvio was a task oriented individual. This management style is not well received in India. The General Manager needed to be a person that can change their behavior when dealing with different cultures. Before making their selection Schindler should have required Silvio to take a Global Mentality Test. This test would have told

The necessity came from high political pressures were putting strain on the business. The source of their anxiety came from the worry that India would no longer be a safe place for the family, and that an entirely new country would help forge a better life for both themselves and their

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

1. Nick Robins, “This Imperious Company” in The Corporation that Changed the World: How the East India Company Shaped the Modern Multinational (London: Pluto Press, 2006), 19-38.

Another cause is represented by the Manager’s idea that he can develop a well-established business in the Eastern German because of cheap labor and raw materials. His choice to expand on German marketplace was not based on rational facts or clear developed objectives.

2. How would leveraging capabilities with respect to the Indonesian market differ between an Australian/New Zealand producer of computer software and an Australian/New Zealand manufacturer of automotive parts?

deficiencies? Was the timing of the Satyam A/R procedures appropriate given the internal control assessment?

This result seems to coincide with what Napoli experienced in India, as he recalled that different people approached him to offer their services, but there were only a few people who were trustworthy enough to dedicate to their jobs consistently. This reflects some Indian entrepreneurs’ low future orientation, because as compared to maintaining a business relationship for future collaboration and cooperation potentials, they seemed to care more about the profits that could be realized immediately. With respect to assertiveness, India’s score was only 3.73, while the global average was 4.76. This finding is confirmed when Napoli noticed that in the Indian subsidiary, when there was disagreement with respect to business plans and strategies, his managers tend to withhold their objections. As Napoli said, “some of the doubts were expressed as questions,” and that “Many more were unspoken” (Bartlett, Fagan, Yoshino, 2006). In reality, during Napoli’s journey back to Italy in August, he was astonished to find out that his Indian management team have accepted an order of customized elevator with glass pod that was to be imported from Europe, when Napoli thought the whole team had all previously agreed on the standardized and minimal importing product plan. The management team’s action clearly violated the original product concept, and instead of discussing their objections with Napoli in advance, they decided to prove Napoli’s idea wrong with their actions. On the other hand, the Indian managers’ action can also be interpreted by their lower uncertainty avoidance. They were not hesitant to take on the risks of accepting an order that was never discussed in a formal business meeting, on behalf of their supervisor, and were courageous enough to be accountable for the potential failure to completing this order.

With Schindler’s high expectations for the company to grow at a fast speed within a short span of time, Napoli’s character and leadership style proved adverse for such efforts. The goal was to make sales of about 50 units in the first year of business, and obtain 20% of the market share within the first five years; however, Napoli’s impatience and impulsivity would most likely slow down the stabilization of the Indian branch and the required profits would not be met. This is not surprising, as the expectations were particularly high for an individual with inadequate international experience in business. Schindler, instead, should have selected an individual who had worked for the company longer, as well as one with more knowledge in the global scope of business. One of his colleagues spoke of Napoli, "He wants everything done yesterday and in India things don 't get done yesterday."(Fagan, Yoshino & Bartlett 6). This is an obvious indication that Napoli 's character was not attuned with the culture in India.

* There was no transparency in the price of EP&I products which can act as a hindrance in the market. No transparency of the price can lead to a bad market status and thus leading to a heavy decline in the efficiency.

Mr. Fisher, President of Central Steel Door, made many mistakes in his efforts to hire a sales manager in Europe. First, advertising in the International Herald Tribune is only going to attract Americans who lack the intelligence and in-country expertise the company needs to successfully compete in unfamiliar markets. Second, he fails to make the most of these candidates that these ads generate by asking them for referrals and offering an incentive. He fails to use the limited success of the ads to successfully network into the international community. Third, the lack of sensitivity ot living costs in Belgium and Germany for sales manager led to them quickly resigning. Fourth, Mr. Fisher didn't coordinate with the Belgian government to ensure employment taxes were paid on time, leading to a bill for back taxes of thousands of dollars. Fifth, the hiring of ten local people to staff distribution centers and the firing of five of them not only had to be communicated months in advance to local government authorities, Central Steel Door is legally obligated to pay them for a full year of their salaries based on German law. Sixth, the ignorance of local, regional and national laws ends up costing the company more than it made on any sales in the region ruing the case study's timeframe. Seventh, Mr., Fisher neglected to consider how the cultural differences between the Untied

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts