Assignment 1: Introductory Case - Netflix

Netflix is an excellent example of a firm that has effectively expanded its foreign operations. Netflix
began in just one country, the United States, and has since spread to over 190 countries in just seven
years. Netflix has done an excellent job in the numerous markets it has entered. To create win-win
relationships, the organization has worked with significant local businesses. Notwithstanding the current
hurdles that Netflix is facing in terms of new members, the firm has been able to successfully expand
globally thanks to meticulous planning and execution. Finally, by analyzing its target market's wants and
tastes, Netflix was able to design a service that consumers enjoyed. And by making their information as
widely available as possible, they were able to quickly dominate overseas markets.
Netflix didn't try to break into every market all at once. Instead, it carefully considered the geographic and
cultural gap between its early adjacent markets. Netflix quickly expanded internationally, but maintained
the same customer-centric operational strategy that had been so important to its success in the US. Use
consumer usage data to test different offers to see which ones are most effective. Netflix is able to test out
various strategies in various markets because it operates in so many nations. Also, the effectiveness of its
prediction algorithms is growing as the company adds more international members.
Assignment 2: Discussion questions
Q2. One of the major reasons that foreign expatriates have difficulty doing business in the United
States is that they do not understand American slang. A business executive recently gave the
following three examples of statements that had no direct meaning for her because she was
unfamiliar with slang: “He was laughing like hell.” “Don’t worry; it’s a piece of cake.” “Let’s
throw these ideas up against the wall and see if any of them stick.” Why did the foreign expat have
trouble understanding these statements, and what could be said instead?
Answer:

An expatriate working in the USA may find American slang confusing. The words and phrases listed
above can be utterly misinterpreted if taken out of context. This makes it very difficult to communicate
effectively. In this sense, the same argument might be made. People from other languages may struggle to
understand the meaning since they frequently rely on the meaning of specific words in the phrase. The
expressions used above are frequent idioms that should be interpreted in context. Moreover, remarks like
"it's a piece of cake" might make the foreigner think negatively, cause culture shock, and possibly result
in job unhappiness.

Due to the cultural differences, foreign expats find it challenging to understand the vernacular languages.
American society places a strong emphasis on independence, results-based performance, and masculinity.
It forces people to evaluate themselves based on their own jobs, and slang is directed towards both
foreign expatriates and other people. Also, depending on the sociological and cultural context, slang
language usage varies by region. Hence, it shouldn't come as a surprise that Americans would not be
familiar with another country's vernacular.

Instead of saying, "Throw these ideas against the wall," it is possible to say, "Try these ideas in the
market and see which one performs best among consumers." It will give the executive a better meaning. It
is possible to state that it is really simple to do and that you shouldn't worry about it, rather than that it is a

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piece of cake. The executive will feel happy and comfortable as a result. Instead of saying he was
laughing uncontrollably, you could say that the thought or comment was hilarious and he kept laughing at
it. 

If a company is new to the international arena is negotiating an agreement with a potential partner in an
over-seas country they should investigate the culture, company, and customs to ensure that all are
followed correctly. First and foremost, focus on developing a relationship. Foreign corporations
frequently seek to deal with the individual before going on to business negotiations. Find out who the key
contact on the international team will be. Learn about the negotiation approaches and strategies that were
used. Before the negotiation, make sure you have all of the necessary facts. Failing to do so is interpreted
as disrespect.

1. Planning

The first step in planning is for the negotiators to specify the goals they hope to achieve. Then they look
into several options for achieving these goals. According to research, the likelihood of effective
negotiations increases with the amount of options available. Despite the fact that this seems like common
sense, research shows that many negotiators do not adjust their approach when dealing with different
cultural perspectives.

2. Intrapersonal Relationship Building

Getting to know the representatives on the other side is the second step in the negotiation process. The
urge to separate individuals who are rational from those who are not characterizes this feeling out phase.
This comprises formal meals, gatherings, and other occasions in various civilizations. Even if business
isn't specifically discussed during these weddings and receptions, the human relationship building that
takes place aids in setting the stage for a fruitful negotiation.

3. Exchanging Task Related Information

Each group presents its viewpoint on the important issues during this stage of the negotiation process.
Later in the negotiations, these stances frequently change. The participants are now attempting to
ascertain what the opposing party wants to achieve and what it is willing to give up.

4. Persuasion

Many people believe that this negotiation step is the most crucial. No side wants to give more away than
necessary, but all sides are aware that without making some compromises, a final agreement is unlikely to
be reached. The result of the persuasive phase. It frequently depends on how well the parties comprehend
one another's points of view, how well they can each see where they differ and where they are similar,
how well they can come up with new ideas, and how willing they are to work together to find a solution
that will allow everyone to feel they have achieved their goals.

5. Agreement

The final stage of talks involves making concessions and reaching a final agreement. This phase is
sometimes carried out piecemeal, with concessions and agreements made on individual concerns. This is
how US negotiators prefer to conduct themselves. As one problem is handled, it is withdrawn off the
bargaining table, and attention shifts to the next. To negotiate effectively in the international arena, as in

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all areas of communication, it is vital to understand how cultural differences between the parties affect the
process.

Q10. Wilsten Inc. has been approached by a Japanese firm that wants exclusive production and
selling rights for one of Wilsten’s new high-tech products. What does Wilsten need to know about
Japanese bargaining behaviors to strike the best possible deal with this company? Identify and
describe five.

Answer:

To employ professionals to train the negotiators and familiarize them with Japanese business and social
conventions. U.S. MNCs must develop their honesty and patience. Both parties must work together and
put forth effort in order for negotiations to be successful. The U.S. negotiators must be aware that
Japanese negotiators frequently lack complete authority to make judgments on the spot. The failure of the
Japanese negotiators to move fast should not be regarded as a lack of sincerity on their part since
authority must be granted by someone at the home office. Technical knowledge is frequently valued as a
very significant contribution, which frequently aids in gaining Japanese concessions. When such
technological proficiency is apparent, it has a significant impact on convincing the Japanese to do
business with the company.

 Use of extreme behaviors:

Some negotiators start off by making wildly improbable offers or demands. Businesspeople from China
and the Arab world regularly employ this strategy. Other delegates start off in a position that is near the
one they want, though. This strategy is frequently used by Americans and Swedes. According to research,
extreme situations frequently result in the best outcomes. Some of the reasons include: demonstrating to
the other party that the bargainer will not be taken advantage of; extending the negotiation and providing
the bargainer with a better opportunity to learn about the opponent; allowing more room for concessions;
changing the opponent's perception of the bargainer's preferences; and demonstrating to the opponent that
the bargainer is willing to play the game in accordance with the established norms.

 Promises, threats, and other behaviors:

The employment of assurances, threats, prizes, self-disclosures, and other actions intended to sway the
other side is another kind of bargaining. The culture frequently has a big impact on these actions.
Businesspeople from Brazil, the United States, and Japan were used in Graham's research, and it was
discovered that they used a range of behaviors when simulating a buyer-seller negotiation.

 Nonverbal behaviors:

During negotiations, people often communicate more through their actions than their words. The "silent
language" is a term occasionally used to describe nonverbal action. Silent intervals, eye contact, touching,
and verbal overlaps are typical examples. In comparison to either Americans or Brazilians, the Japanese
use silence intervals during discussions significantly more frequently.

Assignment 3: Case Study – Coca-Cola

Q1. What aspects of U.S. culture and of Indian culture may have been causes of Coke’s difficulties
in India?

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Answer:

Coca-Cola need to concentrate on a few key aspects of culture. Different laws may apply in the U.S. and
India depending on the situation or the products you require to make your product. India generally has
many internal political and legal problems; Indian law is completely different from American law. Coca-
Cola faced challenges in India due to economic causes like poverty and income disparity. Sales were
negatively influenced by the high cost of Coca-Cola products, which rendered them expensive for many
Indians. This will be the primary factor limiting Coke's activities in India since, as was indicated in the
case, the company was unprepared for the swiftness with which politicians would attack Coke.

There are four areas where cultural differences could be the root of Coke's problems in India. The spoken
and written languages come first. There may be some language that is misunderstood when
communicating with the Indian government. The second is the empowerment and service. Whereas
American culture is more liberal, Asian culture is more traditional. Consumers in India did not respond
favorably to Coca Cola's marketing strategies, which were mostly focused on Western culture and ideals.
Finally, American laws are considerably healthier than Indian laws. Fourthly, the taste preferences of the
two nations differ, which is why coke is less well-liked in India than it is in America.

Q2. How might Coca-Cola have responded differently when this situation first occurred, especially
in terms of responding to negative perceptions among Indians of Coke and other MNCs?

Answer:

It should first express regret for depleting India's water supplies, and then provide some sort of
compensation for the Plachimada locals, such as cash, spring water, or other local marketing initiatives.
They could have supported and provided local residents with employment opportunities. Because it still
needs to be planted there, find solutions to the issue. Provide public assurances that they won't be
destroying the environment any longer. Building a solid reputation and retaining customer loyalty in the
global market is crucial for MNCs. Coca-Cola had the opportunity to actively participate in socially
responsible and environmental initiatives.
Q3. If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to
make?
Answer:
First of all, it needs to adapt its advertising to reflect the character of Indians and their culture. The can's
packaging includes a few cultural elements from India to demonstrate the Coca-Cola’s increased focus on
the Indian market. If Coca-Cola tries to diversify their product by making new types of drinks like juices,
tea, and coffee, they may also win the respect of Indian consumers. Coca-Cola could have added healthy
drinks to appeal to people's growing health consciousness. To attract the interest of Indian consumers,
they may have used efficient marketing techniques. As PepsiCo did, assume more corporate social
obligations. Due to India's shortage of water resources, some of Pepsi's corporate social responsibility
initiatives have included digging village wells and launching attempts to reduce water waste at its Indian
plants.
Q4. How might companies like Coca-Cola and PepsiCo demonstrate their commitment to working
with different countries and respecting the cultural and natural environments of those societies?
Answer:

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Coca-Cola and PepsiCo show their commitment to cooperating with other nations while respecting their
cultures and natural environments in the society because they respect both their home and host nations,
especially the hosts. They also show their dedication to working with many nations while respecting their
cultures and natural environments by training managers in global leadership and being adaptable when
dealing with local issues. Finally, they promote cooperation between the home country and offshore to
show that they are dedicated to working with various nations and respecting their cultural values and
conventions.
Assignment 4: Internet exercise – Working effectively at Toyota
Q1. What type of communication and negotiation challenges do you think you would face if you
worked for Toyota and were in constant communication with home-office personnel in Japan?
Communication and Negotiation Challenges will be
Answer:

Workplace etiquette

Differences in etiquette are accompanied by disparities in attitude, particularly toward workplace

confrontation, norms and regulations, and presumed working hours. Effective negotiating is also
hampered by a negative attitude toward time. One should never be hurried. You need time to
persuade others. Never be in a hurry to buy something or close a deal. Study everything
thoroughly, and then only come to conclusions.

Organizational hierarchy

Organizational hierarchy and views toward management responsibilities can also differ
significantly between cultures. Cultural norms can influence whether or not employees in junior
or middle management positions feel comfortable standing up in meetings, questioning senior
decisions, or expressing a different opinion. These sentiments frequently reflect a country's
societal values or amount of social equality.

Cultural differences

Recognizing how culture affects international business is something you should think about. This
can help to avoid misconceptions and ensure that your company presents itself to its new market
in the best way possible. Foreign businesses must be aware of cultural communication
differences. This will help them understand how to overcome language obstacles and use
appropriate tone and body language.

Language barriers

Communication is an essential component of both personal and professional interactions. When

conducting business with companies from other countries, there will inevitably be some
linguistic problems. When some businesses expand to incorporate international businesses,
language problems can be a detriment. Businesses must actively try to improve communication
among worldwide colleagues.

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Q2. What type of communication training do you think the firm would need to provide to
you to ensure that you were effective in dealing with senior-level Japanese managers in the
hierarchy?

Answer:

 Be consistent with meaningful communication

 Provide feedback, mentorship, and training
 Provide strong leadership and a clear vision
 Demonstrate good problem solving
 Ability to perceive and exploit power
 Ability to win respect and confidence
 Listening skill
 Broad perspective
 Be an effective decision maker
 Be dedicated and balanced
Q3. Using Table 7–1 as your guide, what conclusions can you draw regarding
communicating with the Japanese managers, and what guidelines would you offer to a non-
Japanese employee who had just entered the firm and is looking for advice and guidance
on communicating and negotiating more effectively?
Answer:
 Never leap to conclusions when making a decision, always take your time
 Try to learn the language and show respect for the culture
 Should be properly knowledgeable about the Hierarchy
 Respectful communication should always be used
 Always strive to establish a solid connection through polite behavior
Assignment 5: Case study – Walmart’s global strategies
Q1. What was Walmart’s early global expansion strategy? Why did it choose to first enter
Mexico and Canada rather than expand into Europe and Asia?
Answer:
Walmart's early global expansion strategy was to provide low-cost products in order to attract a
diverse spectrum of customers. However, it lacked the requisite financial, organizational, and
managerial resources to follow numerous countries at the same time. Instead, it opts for a
logically sequenced approach to market entry, allowing it to apply the knowledge learned from
its early forays to subsequent ones. Walmart wanted to open stores around the world because it
had the closest business climate to the US and the quickest entry point for items. The other
countries were chosen since they have the most people in South America.

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Walmart has a variety of regional choices for expanding outside of its sizable domestic market,
including entering Europe, Asia, or other Western Hemisphere nations. Walmart, however,
lacked the necessary organizational, administrative, and financial capabilities at the time to
pursue several nations at once. Instead, it chose to enter the market in a logically orderly manner
so that it could apply the knowledge it had gathered from its earlier forays to later ones.
Q2. What cultural problems did Walmart face in some of the international markets it
entered? Which early strategies succeeded and which failed? Why? What lessons did
Walmart learn from its experience in Germany and in Japan?
Answer:
In terms of consumer habits and expectations, American management made certain crucial
judgments that did not take into account the cultural backdrop of the German people. The
concept of grinning at consumers didn't sit well with the Germans either because they weren’t
accustomed to the culture of grinning, or the gesture was perceived as intrusive by German
customers.
Walmart's attempt to cut customer prices failed owing to opposition from established merchants,
the store's inability to adapt its model to local tastes and preferences, brand loyalty to those other
than what Walmart sold made products expensive, and attracting customers was tough. The
internationalization plan was judged successful within the Americas, but it experienced
significant failures in China, Japan, Germany, South Korea, and Indonesia. Walmart struggled to
be effective while dealing with cultural diversity.
Walmart neglected to take cultural views into consideration. The union is crucial to workers'
welfare, however in the US, Walmart employees are notorious for not being members of any
organization. Even worse than the harm done to its employee relations was the spread of this
negative image through the media to the German society and thus to German consumers. By
adopting an anti-union stance, Walmart created a poor employee relationship that resulted in the
loss of critical quality staff in Germany.
Q3. How would you characterize Walmart’s Latin America strategy? What countries were
targeted as part of this strategy? What potential does this region bring to Walmart’s future
global expansion? What cultural challenges and opportunities has Walmart faced in Latin
America?
Answer:
Due to the store's high potential and the success of this strategy, Walmart was able to become
Brazil's third-largest retailer. Walmart doubled Carrefour's sales after entering Chile and
succeeding there, becoming the region's top retailer. Getting started and succeeding in Chile,
where they didn't want any outside retailers, presented cultural obstacles. Walmart used this
chance to spread the knowledge it had gained from operating in Mexico to the rest of South
America.

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Walmart lacked the organizational, managerial, and financial resources necessary to expand into
new markets. Latin America was chosen as a market since it was closer and had less entry
barriers. Also, they believed they could benefit from the expanding economy and one of the
highest growth rates. They first had Mexico, Brazil, and Argentina in mind. The second phase
contained Honduras, Costa Rica, El Salvador, Guatemala, and Honduras. The last step involved
extending into Chile. There are many customers and little obstacles to overcome. They were able
to solidify their position in Latin America fast, which freed up resources to support growth in
other international areas.
Q4. What group of countries will be targeted for Walmart’s future growth? What are the
attractiveness and risk profiles of these countries? What regions of the world do you think
will be vital for Walmart’s future global expansion?
Answer:
Brazil, Canada, China, India, and other South American countries. Customers view Walmart
favorably because it has managed to position itself as a brand that offers savings and high quality
products. This will help Walmart solidify its position and grow its business internationally.
Walmart and other nations on the American continent may want to extend their businesses in
uncharted regions in the future.
Brazil and Chile are two emerging nations that could aid their development into neighboring
nations.  Walmart might play a significant role in the growth of South America. Walmart will
specifically target developing and emerging nations, including Brazil, Russia, India, and China
are those countries. These countries are significant for a number of reasons. It is crucial for
Walmart to join these markets immediately in order to establish themselves as major players in
these rapidly expanding nations. They can increase their global market and get an advantage over
other businesses.
Assignment 6: International Spotlight – China
Q1. If you are working as a consultant for a German-based automaker, would the policy
changes by the Chinese government affect your potential investment in the country?
Answer:
Yes, the Chinese government enacted revisions in 2018 that loosened this policy for foreign
automakers, making the prospective investment favorable and high. In particular, an exception to
this regulation was made for electric cars starting in 2018, and for utility and personal vehicles
starting in 2020 and 2022 respectively. These changes considerably lowered the entry hurdle for
international automakers, who traditionally had to invest years in setting up intricate business
alliances with domestic firms.
Q2. What are some of the ways that Tesla’s new Gigafactory could bring positive economic
development to the country?
Answer:

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The sheer number of job chances created by a single organization in such a short period of time
is astounding. Tesla is a pioneer in EV technology, and it has influenced other firms to develop
similar products. Competition in the automotive industry is beneficial to economic progress. It
provides projects and job opportunities to communities. The automobile industry's direction is
heavily influenced by technology, and Tesla is one of the firms leading the pack. Tesla has been
successful in attracting individuals, particularly competitors, to electric vehicles and renewable
energy sectors. This opens up a plethora of chances for economic developers in the automobile
and renewable energy industries.
Q3. Is the prospect of China’s sheer volume of potential customers too good to pass up? Or
do the actions of the government and the country’s recent slowdown indicate a signal that
investment should be reconsidered?
Answer:
Due to China's competitive industrial and labor productivity, access to its enormous domestic
market has benefited both international corporations and national economies. Investors based in
the nation must pay closer attention to the economic performance of the corresponding sectors
and regions to properly manage risk. A rise in the population by itself cannot be a reliable sign of
economic expansion. The analysis of governmental policy needs to be done correctly. Certain
ineffective laws and government policies, such as those requiring the sharing of technology or
without enough protection for intellectual property, can be fatal.