Dell Inc. Changing the Business Model: Case Study

Summary

Businesses can struggle with different views on how to run operations in a foreign country. This document looks at a dispute within a U.S. drug company's Japanese branch.

The dispute

Leonard Prescott thinks that John Higgins has lost touch with U.S. ways and is too attached to Japanese culture. Higgins disagrees with Prescott's views on implementing U.S. policies in Japan.

Problems with Higgins' management

Prescott has concerns about Higgins' management style. Higgins listens to employees' personal problems and fights for their rights against new policies. This costs the company money.

Strategies for change

Prescott wants to change the employee dismissal policy and employee promotion methods. Higgins and the personnel manager disagree. Prescott thinks new policies will be more profitable and effective.

Suggested solutions

Suggestions include transferring Higgins to another country or removing him from the company. The company could also focus on understanding its goals and cultivating acceptance of change.

Key terms

cross-cultural management

Managing operations in a foreign country.

employee dismissal

Firing employees who lack initiative or are incompetent.

employee promotion

Giving promotions based on evaluations, not just seniority.

company goals

The objectives that give a company direction.

cultural adaptation

Adjusting to a new culture.

conflict resolution

Finding a solution to a dispute.

Questions this document helps with

• How can a company balance local culture with its own policies?
• What are the benefits of promoting based on evaluations?
• How can a company handle disagreements between managers?

Summary written with AI from the document's text.