MANAGING ACROSS BORDERS
Trimester 1, 2022
Please make sure you follow the submission instructions at the end of this paper.
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit.
MNCs (multinational corporations) often second executives to overseas positions. Often these overseas positions are in host countries that do not have developed infrastructure and there can be risks of kidnapping of children, theft, coercion, etc. Also, there can be threats to extort money from the executive’s corporation.
When I lived in Shanghai I had a client who was the CEO of a major European car manufacturing company. He was approached by a major Chinese criminal group known as the Triad. They wanted my client’s company to pay them 1000.00 USD for every car the company produced in China. Given my client’s company produced 100,000 cars per year that was a lot of money, 100 million USD. The CEO refused and withstood all of the pressure that was placed on him.
In July of 2020 he retired back to Europe. One day he went for his normal morning walk but never came back. He has been missing for two years. Shortly after he disappeared the new CEO of the company in China was sent a communication which stated that if the new CEO did not cooperate then he also would disappear after he quit the company.
ANSWER i): ** Answer box will enlarge as you type
Question 2 (7 Marks)
The argument for employment of expatriates from home countries in host countries is that they have the knowledge, skills, connections in the home country as well as the home culture ‘know how’ to get things done. On the other hand, there are some things that expatriates do not have.
- Explain what some of the knowledge, skills and know-how of a host country that an expatriate might not have.
- Suggest what ways there would be for a person to handle these deficiencies.
Question 3 (7 Marks)
Employment of women in business has always been an issue because although women on a percentage basis make up 40% of the business work force, it is the bottom 40%. The top jobs are normally kept for the males – mostly white males. The explanations for not employing women in senior roles are often circular in that women are not promoted into senior roles because they do not have the senior experience. But they cannot get the senior experience if they are not promoted into senior roles.
- What other reasons are you aware of with respect to the non-promotion of women? (2 Marks)
- What are the arguments that can be used to counter these reasons? (5 Marks)
Question 4 (7 marks)
A friend of mine was born in India and raised in India until he was 14 years old. He then went with his family to the USA and went to school and university in the USA. When he was young he would also spend time in India with his relatives. He is an interesting man in that he speaks Hindi and English fluently and looks in appearance like an American and Indian.
He was working in the USA and was approached to take a CEO role in India in the motorcycle industry. He accepted the role and found when he got to India that the company was losing money, staff were demoralised and clients not happy. There was no communication from the CEO.
- Explain what you think that he would have to do in order to fix the company. (3 Marks)
- Would you hire this person for this role or would you hire an Indian national? Give your reasons. (4 Marks)
Question 5 (7 Marks)
It is often a momentous occasion for a family to have an opportunity to become an expatriate or ‘non-resident’ family. However, there are many issues to consider. Define what three of those issues are and how they can be dealt with. (2 marks per issue and a bonus mark)
Question 6 (11 Marks)
Corporation organisational structure has been developed using the church and the military as a guide. These two institutions utilised a functional structure such as foot soldiers, artillery, transport, etc.
As corporations started to develop they emulated this focus on functions in that they had sales, administration, marketing, production, engineering, etc.
Eventually, however, organisations introduced structures with other focuses. These structures are focused upon: product structure, client structure, area – geographical/regional structure and matrix structure.
- Explain and describe the focus of each of these four structures. (4 Marks)
- Consider the application of each structure and explain when you would use each structure. (1 ½ marks each structure plus a bonus point) 7 Marks
END OF SUPPLEMENTARY ASSESSMENT
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