CASE APPLICATION 1

Dirty Little Secret

Money. Secrecy. Foreign officials. “Greasing palms.” Bribery. That’s the dirty little secret about doing
business globally that managers at multinational companies don’t want to talk about. Although 39
countries worldwide have signed up for the OECD Anti-Bribery Convention to outlaw bribery and
corruption, the problem is far from gone. Take Greece, for example, which has been censored by the OECD
for failing in its promise to crack down on corruption. The practice of political favouritism and passing
“fakelaki”—envelopes stuffed with cash—in return for services is as prevalent today as it ever was.
Indeed, since the country joined the European Community, more than 150 scandals have come to light,
and it is thought that part of the blame for the country’s €367 billion ($486 billion) debt is down to an
epidemic of corruption. From needless jobs to a refusal to give receipts, through tax evasion and then on
to high-level bribery, it is estimated that Greek citizens spent nearly €1.62 billion ($2.15 billion) in 2012
on bribes. Foreign companies looking toward Greece are aware that this is often the cost of doing business
there. In August 2012, the German group Siemens AG, reached a €330 million ($438 billion) settlement
with the Greek government over long running allegations that Siemens AG used bribery to secure a raft
of contracts for the Athens Olympic Games in 2004. In an earlier case, two managers from another
German company, industrial firm Ferrostaal, were convicted of paying bribes in Greece and ordered to
pay fines.

Discussion Questions

1. What’s your reaction to the events mentioned in the case? Are you surprised that bribery is
illegal? Why do you think bribery takes place? Why do you think it needs to be outlawed?
2. Research whether other countries outlaw bribery. (Hint: look at the Organization for Economic
Cooperation and Development.)
3. We’ve said it’s important for managers to be aware of external environmental forces, especially
in global settings. Discuss this statement in light of the events described.
4. What might the managers at Siemens AG have done differently? Explain.
5. Siemens AG is not the only company to be linked to bribery. Find at least three other examples
and describe them briefly.

CASE APPLICATION 2

The Power of Presence

How do you successfully manage a growing international company? CEO Christian Chabot of Seattle-based
Tableau now believes being there physically is an important piece in the often complex puzzle of
international management.105 International growth is nothing new for Tableau, which was founded in
2004. As a leading provider of analytics and business intelligence software solutions, the company has
more than 35,000 clients in over a dozen countries. Tableau provides software tools and interactive
dashboards that allow users to generate useful business insights through the analysis and visualization of
data. The company is on the cutting edge of data-imaging solutions for end-users, creating products such
as Elastic, which allows users to create graphics from spreadsheets. Despite tough competition in the
market for business intelligence from software giants such as Microsoft, Tableau has continued to
maintain its share of the marketplace, and the company’s value continues to grow with a 64 percent
increase in revenue over last year. Much of the company’s growth is attributed to the company’s
expansion into international markets, with an 86 percent increase in revenue last year from international
markets, which now account for a quarter of the company’s total revenues. With plans to hire about 1,000
more employees in the next year, the company’s projected continued success is evident. While more than
half of their current 2,800 employees work in the company’s Seattle headquarters, Tableau has 14
locations around the world in places such as Shanghai, Singapore, Sydney, and London. About 400 of the
new employees will be hired outside of the Seattle headquarters, and Tableau’s expansion will include
opening new international offices. International growth creates many challenges for companies,
particularly as they open and staff branch locations in different countries. Cultural differences, time
differences, and simply the geographic distance can make it difficult to sustain the same management
practices at home and abroad. How has Chabot managed the quick growth of this international company?
One strategy was to spend almost a year abroad working in the company’s London office. His focused
time at that location helped grow regional sales, but also provided the CEO with valuable insights to
support further international expansion. Chabot reported that the time he spent in London highlighted
the importance of managing culture and people. Prior to the trip he did not have a true understanding of
the challenges of international employees working for a U.S.-based company. He found that many working
in international branch offices did not feel like they were taken seriously by those at the home office.
Geographically remote workers can feel disconnected from a global company, particularly when they
report to management they have never met in person at headquarters. Chabot’s time working in London
was valuable for employees in all locations of the company, as his actions sent the message that he feels
employees outside of headquarters are important. While he spent time only in London, the fact that he
spent a year away from the home office emphasized his belief that locations beyond Seattle are important
for the company’s success. Chabot’s experience is having such a profound impact on the company’s
success, Tableau is now encouraging other executives to spend time at international offices.

Discussion Questions

1. Tableau staffs its international offices primarily with host country nationals. What are the
advantages and disadvantages of this staffing strategy?
2. Do you agree with Chabot that the company will benefit if more executives spend time in
international offices? Why or why not
3. As Tableau executives get ready to spend time in the company’s international offices, how can
they prepare for the cultural differences they will encounter?
4. What are some of the challenges Tableau will face as it hires 1,000 new employees in one year?