International Management: Managing

Across Borders and Cultures, Text and

Cases Deresky 8th Edition Solutions
Manual
Visit to download the full and correct content document: https://testbankbell.com/dow
nload/international-management-managing-across-borders-and-cultures-text-and-cas
es-deresky-8th-edition-solutions-manual/
International Management: Managing Across
Borders and Cultures, Text and Cases Deresky 8th
Edition Solutions Manual

To download the complete and accurate content document, go to:

https://testbankbell.com/download/international-management-managing-across-borde
rs-and-cultures-text-and-cases-deresky-8th-edition-solutions-manual/
International Management: Managing Across Borders and Cultures, Text and Cases Deresky 8th E

Chapter 8
ORGANIZATIONAL STRUCTURE AND CONTROL SYSTEMS

LECTURE OUTLINE

General Outline

Opening Profile: Kraft’s Post-Merger Integration and Reorganization

Organizational Structure
Evolution and Change in MNC Organizational Structures
Under the Lens: Samsung Electronics Reorganizes to Fight Downturn
Integrated Global Structures
Organizing for Globalization
Organizing to “Be Global, Act Local”
Management in Action: Procter & Gamble’s Think Globally–Act Locally Structure–10
years of Success
Emergent Structural Forms
Comparative Management in Focus: Changing Organizational Structures of Emerging
Market Companies
Interorganizational Networks
The Global E-Corporation Network Structure
The Transitional Corporation (TNC) Network Structure
Choice of Organizational Form
Organizational Change and Design Variables
Control Systems for Global Operations
Under the Lens: FIFA–Restructuring for Governance Oversight of Ethics
Direct Coordinating Mechanisms
Indirect Coordinating Mechanisms
Managing Effective Monitoring Systems
The Appropriateness of Monitoring and Reporting Systems
The Role of Information Systems
Evaluation Variables across Countries
Conclusion
Summary of Key Points
Discussion Questions
Application Exercises
Experiential Exercises
Internet Resources
Case Study: HSBC’s Global Reorganization and Corporate Performance in 2012

The Video correlation guide can be downloaded from the Instructor

Resource Center. To obtain a user name and password please contact your
local Pearson sales representative.

148
Copyright ©2014 Pearson Education, Inc.

Visit TestBankBell.com to get complete for all chapters

Opening Profile: Kraft’s Post Merger Integration and Reorganization (see slide 8-5)

Companies change their structures to align with new strategic directions and competition,
but also to respond to changes in their operating environment. To capitalize on this Kraft
sought two major acquisitions: LU for $7.6 billion in 2007 and Cadbury PLC for $19
billion. In December 2011 Kraft announced a split into two entities: “snack business”
($32 billion) and “grocery business” ($16 billion). British Parliaments Commons Select
Committee: “positive messages would have been considerably more convincing if
conveyed directly to bodies such as ourselves”

I. Organization Structure (see slide 8-7)

A. Organizational structures must change to accommodate a firm’s evolving
internationalization in response to worldwide competition. Considerable research
has shown that a firm’s structure must be conducive to the implementation of its
strategy. In other words, the structure must “fit” the strategy, or it will not work.
B. The design of an organization, as with any other management function, should be
contingency-based, taking into account the variables of that particular system at
that specific point in time. Major variables include the firm’s strategy, size, and
appropriate technology, as well as the environment in those parts of the world in
which the firm operates. Additional variables affecting structural choices—
geographic dispersion as well as differences in time, language, cultural attitudes,
and business practices—introduce further layers of complication.

Teaching Tip: Break your class into small groups. Ask them to draw a picture that
describes the organizational structure of their college or university. The drawing will raise
issues about the relationship between structure, power, and control.

II. Evolution and Change in MNC Organizational Structures (see slide 8-9)
A. Historically, a firm reorganizes as it internationalizes to accommodate new
strategies. The structure typically continues to change over time with growth and
with increasing levels of investment or diversity and as a result of the types of
entry strategy chosen.
B. At each stage of international involvement, the firm’s managers redesign the
organizational structure to optimize the strategy’s chances to work, making
changes in the firm’s tasks and relationships and designating authority,
responsibility, lines of communication, geographic dispersal of units, and so forth.
This model of structural evolution has become known as the stages model,
resulting from Stopford’s research on U.S. MNCs. Of course, many firms do not
follow the stages model because they may start their internationalization at a
higher level of involvement.
C. Even a mature MNC needs to make structural changes from time to time to
facilitate changes in strategy—perhaps a change in strategy from globalization or
an effort to improve efficiency or effectiveness.
D. The typical ways (see slide 8-10) in which firms organize their international
activities are shown in the following list. (Larger companies often use several of
these structures in different regions or parts of their organization.)

149
Copyright ©2014 Pearson Education, Inc.
 1. Domestic structure plus export department
2. Domestic structure plus foreign subsidiary
3. International division
4. Global functional structure
5. Global product structure
6. Matrix structure
E. To facilitate access to and development of specific foreign markets, the firm can
take a further step toward worldwide operations by reorganizing into a domestic
structure plus foreign subsidiary in one or more countries. This is shown in
Exhibit 8-1 (see slide 8-11).
F. With further market expansion, the firm may then decide to specialize by creating
an international division, organized along functional, product, or geographic lines.
The creation of an international division facilitates the beginning of a global
strategy. It permits managers to allocate and to coordinate resources for foreign
activities under one roof and so enhances the firm’s ability to respond to market
opportunities. Some conflicts may arise among the divisions of the firm because
more resources and management attention tend to get channeled toward the
international division rather than toward the domestic divisions and because of the
different orientations of various division managers.

Under the Lens: Samsung Electronics Reorganizes to Fight Downturn

Samsung Electronics is the world’s leading manufacturer of memory chips, liquid
crystal displays, and flat screen televisions, and is second in mobile phones after
Finland’s Nokia Corp. (Samsung Electronics is part of the Samsung Group, which
includes dozens of companies, with interests in shipbuilding, construction, life
insurance and leisure.
Samsung had been badly hit by the global economic downturn that resulted in
falling prices for semiconductors and flat screens, and such a radically declining
profitability could “threaten its existence,” according to a Samsung spokeswoman
Hwang Eun-ju. She stated that the changes were needed to “effectively respond to
the current global recession.” As a result, Samsung Electronics Co. announced a
major restructuring, consolidating business operations into two operating
divisions: one focused on consumer products such as televisions and cell- phones,
and the other on components such as memory chips and displays. Thus the
company integrated four business units—semiconductors, LCDs, mobile phones,
and consumer electronics—into two divisions, regarded as “parts” and “sets.”
The reorganization was expected to eliminate bureaucracy and speed decision
making.

G. Integrated global structures (see slide 8-12)

1. To respond to increased product diversification and to maximize benefits from
both domestic and foreign operations, a firm may choose to replace its
international division with an integrated global structure. This structure can be
organized along functional, product, geographic, or matrix lines.
2. The global functional structure is designed on the basis of the company’s
functions—production, marketing, and finance, and so forth. Foreign

150
Copyright ©2014 Pearson Education, Inc.
 operations are integrated into the activities and responsibilities of each
department to gain functional specialization and economies of scale. This
structure results in plants that are highly integrated across products and that
serve single or similar markets.
3. For firms with diversified product lines (or services) that have different
technological bases and that are aimed at dissimilar or dispersed markets, a
global product (divisional) structure may be more strategically advantageous
than a functional structure. In this structure, a separate division represents a
single product (or product line). A general manager heads each division, and
each is responsible for its own production and sales functions. Usually, each
division is a strategic business unit (SBU)—a self-contained business with its
own functional departments and accounting systems. The global product
structure is illustrated in Exhibit 8-2 (see slide 8-13).
With the global product (divisional) grouping, however, ongoing difficulties
in the coordination of widely dispersed operations may result. One answer to
this is to reorganize into a global geographic structure. In the global
geographic (area) structure—the most common form of organizing foreign
operations—divisions are created to cover geographic regions. Exhibit 8-3
(see slide 8-14) provides an example of global geographic structure.
4. Each regional manager is then responsible for the operations and performance
of the countries within a given region. In this way, national and regional needs
and relative market knowledge take precedence over product expertise. Local
managers are familiar with the cultural environment, government regulations,
and business transactions. In addition, their language skills and local contacts
facilitate daily transactions and responsiveness to the market and the
customer.
H. Although this is a good structure for consolidating regional expertise, problems of
coordination across regions may arise. With the geographic structure, the focus is
on marketing, because products can be adapted to local requirements
I. A matrix structure is a hybrid organization of overlapping responsibilities. The
structure is developed to combine geographic support for global integration and
local responsiveness. Exhibit 8-4 illustrates that lines of responsibility are drawn
both vertically and horizontally, which can lead to confusion, communication
problems, and conflict over having more than one boss. Although still used by
some firms, more recently, it has generally fallen into disfavor.

III. Organizing for Globalization (see slides 8-16, 8-17)

A. No matter what the stage of internationalization, a firm’s structural choices
always involve two opposing forces: the need for differentiation (focusing on and
specializing in specific markets) and the need for integration (coordinating those
same markets). The way the firm is organized along the differentiation-integration
continuum determines how well strategies—along a localization-globalization
continuum—are implemented.
B. As previously presented, global trends and competitive forces have put increasing
pressure on multinational corporations to adopt a strategy of globalization—a

151
Copyright ©2014 Pearson Education, Inc.
 specific strategy that treats the world as one market by using a standardized
approach to products and markets.
Asea-Brown Boveri (ABB). A global leader in the power and the oil and gas
industries, ABB is legendary in its record of changing its organizational structure
to fit its new strategic directions and its competitive environment, such as the
losses it incurred resulting from the East Asian currency crisis. Exhibit 8-5
illustrates two phases of the company’s strategic direction and organization
structure.
C. Organizing to facilitate a globalization strategy typically involves rationalization
and the development of strategic alliances. To achieve rationalization, managers
choose the manufacturing location for each product based on where the best
combination of cost, quality, and technology can be attained. The downside of
this strategy is a lack of differentiation and specialization for local markets.
D. Organizing for global product standardization necessitates close coordination
among the various countries involved. It also requires centralized global product
responsibility (one manager at headquarters responsible for a specific product
around the world), an especially difficult task for multiproduct companies.
E. A problem many companies face in the future is that their structurally
sophisticated global networks, built to secure cost advantages, leave them exposed
to the risk of environmental volatility from all corners of the world.
F. Organizing to “be global, act local” (see slide 8-18)
1. In their rush to get on the globalization bandwagon, too many firms have
sacrificed the ability to respond to local market structures and consumer
preferences. Managers are now realizing that a compromise must be made
along the globalization-regionalization continuum, and they are experimenting
with various structural configurations to “be global and act local.”
2. Although strategy may be the primary means to a company’s competitive
advantage, the burden of realizing that advantage rests on the organizational
structure and design. Because of the difficulties experienced by companies
trying to be a “glocal” company, researchers are suggesting new, more
flexible organizational designs, involving interorganizational networks and
transnational design.
Levi Strauss is another example of a company attempting to maximize the
advantages of different structural configurations. The company employs a
staff of approximately 10,000 people worldwide, including approximately
1,010 people at its San Francisco, California, headquarters. Approximately
half of the company’s revenues come from outside the United States. The
company is organized into three geographic divisions:
Levi Strauss Americas (LSA), based in the San Francisco headquarters. Levi
Strauss Europe, Middle East, and North Africa (LSEMA), based in Brussels.
Asia Pacific Division (APD), based in Singapore.
In the LSEMA division there is a network of nine sales offices, six
distribution centers, and three production facilities, employing a total of
approximately 4,600 people. The headquarters are located in Brussels,
Belgium. The company’s European franchise partners bring the products to
consumers throughout the region.

152
Copyright ©2014 Pearson Education, Inc.
 Levi Strauss & Co.’s Asia Pacific Division is comprised of subsidiary
businesses, licensees, and distributors throughout the Asia Pacific region, the
Middle East, and Africa.
Thus, through these various structural global–local formats, the company has
ensured its ability to respond to local needs by allowing its managers to act
independently: Levi’s success turns on its ability to fashion a global strategy
that doesn’t snuff out local initiative.

Management Focus: Procter & Gamble’s Think Globally—Act Locally Structure

(see slide 8-19)

Procter & Gamble is succeeding with a global-local strategy through the use of its “four
pillars” structure. P&G’s organizational structure is built on the following units: 1)
Global Business Units (GBU)—build major brands with robust strategies; 2) Market
Development Organizations (MDO)—build local understanding as a foundation for
marketing campaigns; 3) Global Business Services (GBS)—provide business technology
and services that drive success; and 4) Corporate Functions (CF)—work to maintain
industry leadership. Through the use of these pillars, especially the GBU and MDO,
Procter & Gamble is thinking strategically and acting locally.

Comparative Management in Focus: Changing Organizational Structures of

Emerging Market Companies (see slide 8-20)

Rapidly changing competition and global business activities demand that companies run
their worldwide operations efficiently and effectively. In 2009, fast growing companies
from emerging markets continue to internationalize their operations. However, many
emerging market companies are capitalizing on the “born global” phenomenon. They are
finding niche businesses where competition is minimal and they are thriving in older
economy industries which have been abandoned by established MNCs from developed
countries.

Major structural changes include simplifying hierarchies, reducing family ownerships,

and providing more power to subsidiaries, among others.

IV. Emergent Structural Forms

A. Interorganizational networks (see slide 8-22)
1. Whether the ever-expanding transnational linkages of an MNC consist of
different companies, subsidiaries, suppliers, or individuals, they result in
relational networks. These networks may adopt very different structures of
their own, because they operate in different local contexts within their own
national environments. By regarding the MNC’s overall structure as a network
of interconnected relations, we can more realistically consider its
organizational design imperatives at both the global and the local levels.

153
Copyright ©2014 Pearson Education, Inc.
Teaching Resource: One of the best sources on emergent forms is still The Organizational
Hologram, MacKenzie, K, (1992), Klewer Academic Press. The book provides a theoretical
framework for a process-based model of organization design.

2. The complex linkage in networks highlights the intricate task of a giant MNC
to rationalize and coordinate its activities globally to achieve an advantageous
cost position while simultaneously tailoring itself to local market conditions
(to achieve benefits from differentiation).
B. The global e-corporation network structure
1. The organization structure for global e-businesses involves a network of
virtual e-exchanges and “bricks and mortar” services. Those services may be
handled in-house or outsourced. The structure of functions and alliances
makes up a combination of physical and electronic stages of the supply-chain
network, as depicted in Exhibit 8-6 (see slide 8-23).
The network comprises some global and some local functions. The result is a
global e-network of suppliers, subcontractors, distributors, and buyers and
sellers, all communicating in real-time in cyberspace.
C. The transnational corporation (TNC) network structure
1. To address the globalization-localization dilemma, firms that have evolved
through the multinational form and the global company are now seeking the
advantages of horizontal organization in the pursuit of transnational
capability—that is, the ability to manage across national boundaries, retaining
local flexibility while achieving global integration. This capability involves
linking their foreign operations in a flexible way to one another and to
headquarters, thereby leveraging local and central capabilities.

V. Choice of Organizational Form

A. Two major variables in choosing the structure and design of an organization are
the opportunities and need for (1) globalization and (2) localization.
Exhibit 8-7 (see slide 8-26) summarizes alternative structural forms appropriate to
each of these variables and to the strategic choices regarding the level and type of
international involvement desired by the firm.
B. The model proposes that, as the company becomes larger, more complex, and
more sophisticated in its approach to world markets (no matter which structural
route it has taken), it may evolve into a transnational corporation (TNC). The
TNC strategy is to maximize opportunities for both efficiency and local
responsiveness by adopting a transnational structure that uses alliances, networks,
and horizontal design formats.
The relationships between choice of global strategy and the appropriate structural
variations necessary to implement each strategic choice are further illustrated in
Exhibit 8-8.

Teaching Tip: Schools of Business are often very similarly designed. Ask students to attempt a
redesign of the structure of the Business School at your university. What would be the
advantages and challenges of changing the organizational form of the business school?

154
Copyright ©2014 Pearson Education, Inc.
 D. Organizational change and design variables (see slide 8-27)
1. When a company makes drastic changes in its goals, strategy, or scope of
operations, it is usually quite clear that a change in organizational structure is
called for as well. Exhibit 8-9 lists some indications of the need for change in
organizational design.
2. At persistent signs of ineffective work, a company should analyze its
organizational design, systems, and work flow for the possible causes of those
problems. In choosing a new organizational design or modifying an existing
structure, managers must establish a system of communication and control
that will provide for effective decision making.
3. Aside from determining the behavior of the organization on a macro level (in
terms of what divisions, subsidiaries, departments, and units are responsible
for), the organizational design must determine behavior on a micro level.
Determining how many and what types of decisions can be made and by
whom can have drastic consequences; both the locus and the scope of
authority must be carefully considered. This centralization-decentralization
variable actually represents a continuum.
Exhibit 8-10 (see slide 8-28) illustrates this centralization-decentralization
continuum and the different ways that decision making can be shared between
headquarters and local units or subsidiaries.

Teaching Tip: Ask your students how much autonomy and control they would want if they
were the subsidiary manager. They will likely answer they wish to have near total authority.
Ask them to switch roles. If they ran the home office, how much authority would they want
to give? Ask them to reconcile the differences in their answers.

4. In summary, there is no one best way to organize. Contingency theory applies

to organizational design as much as to any other aspect of management. The
best organizational structure is the one that facilitates the firm’s goals and is
appropriate to its industry, size, technology, and competitive environment.
What may at first seem to be a linear management process of deciding on
strategy, then structure, then staffing is actually an interdependent set of
factors that must be taken into consideration and worked out as a set of
decisions.
5. Structure should be fluid and dynamic—and highly adaptable to the changing
needs of the company.
6. Most likely, however, the future for MNC structure lies in a global web of
networked companies.

VI. Control Systems for Global Operations (see slide 8-31)

A. To complement the organization structure, the international manager must design
efficient coordinating and reporting systems to ensure that actual performance
conforms to expected organizational standards and goals.

155
Copyright ©2014 Pearson Education, Inc.
Under the Lens: FIFA—Restructuring for Governance Oversight of Ethics
The Fédération Internationale de Football Association (FIFA), located in Zurich,
Switzerland, is the international governing body of association football. The
association, which has 208 national associations within six regional areas, oversees
the governance and organization of the FIFA World Cup; the next one will be held in
Brazil in 2014.
Following the proposals made by the FIFA President, Joseph S. Blatter, at the
FIFA Congress on June 1, 2011 in terms of good governance, transparency, and zero
tolerance toward wrongdoing on and also off the pitch (during games or at any time),
the FIFA Executive Committee, meeting on October 20–21, 2011 at the home offices
of FIFA in Zurich, agreed on measures to create task forces for revision of statutes,
ethics etc. in addition to an Independent Government Committee and a FIFA Good
Governance road map.

B. Monitoring systems
1. The design and application of coordinating and reporting systems for foreign
subsidiaries and activities can take any form that management wishes.
C. Direct coordinating mechanisms
1. Direct mechanisms that provide the basis for the overall guidance and
management of foreign operations include the design of appropriate
structures. Such decisions proactively set the stage for operations to meet
goals, rather than troubleshooting deviations or problems after they have
occurred. Other direct mechanisms are visits by head-office personnel and
regular meetings.
D. Indirect coordinating mechanisms
1. Domestic companies invariably rely on budgets and financial statement
analyses, but foreign subsidiaries, financial statements, and performance
evaluations are complicated by financial variables in MNC reports, such as
exchange rates, inflation levels, transfer prices, and accounting standards.
2. To reconcile accounting statements, MNCs usually require three different sets
of financial statements from subsidiaries. One set must meet the national
accounting standards and procedures prescribed by law in the host country;
this set also aids management in comparing subsidiaries in the same country.
A second set must be prepared according to the accounting principles and
standards required by the home country. The third set of statements translates
the second set of statements (with certain adjustments) into the currency of the
home country for consolidation purposes, in accordance with FASB Ruling
Number 52 of 1982.
3. Researchers have noted comparative differences between the use of direct
versus indirect controls among companies headquartered in different
countries.
4. U.S. MNCs monitor subsidiary outputs and rely more upon frequently
reported performance data than do European MNCs. The latter tend to assign
more parent company nationals to key positions in foreign subsidiaries and
can count on a higher level of behavior control than their U.S. counterparts.

156
Copyright ©2014 Pearson Education, Inc.
 5. These findings imply that the American system, which measures more
quantifiable aspects of a foreign subsidiary, provides the means to compare
performance among subsidiaries. The European system, on the other hand,
measures more qualitative aspects of a subsidiary and its environment, which
vary among subsidiaries, therefore allowing a focus on the unique situation of
the subsidiary, but making it difficult to compare its performance to other
subsidiaries.

VII. Managing Effective Monitoring Systems (see slide 8-32)

A. Management practices, local constraints, and expectations regarding authority,
time, and communication are but a few of the variables likely to affect the
appropriateness of monitoring systems. How transferable headquarters’ practices
and goals are probably depends on whether top managers are from the head
office, the host country, or a third country. In addition, information systems and
evaluation variables must all be considered when deciding on appropriate
systems.
B. The appropriateness of monitoring and reporting systems
1. One example of differences in the expectations regarding monitoring
practices, and therefore in the need for coordination systems, is indicated by a
study of Japanese and American firms. For example, American managers are
more likely to use formal communication and coordination processes, whereas
Japanese managers use informal and implicit processes. In addition, American
managers, who are evaluated on individual performance, are more likely to
build slack into budget calculations for a safety net than their Japanese
counterparts, who are evaluated on group performance.
C. The role of information systems
1. Reporting systems such as those described in this chapter require sophisticated
information systems to enable them to work properly—not only for
competitive purposes, but also for purposes of performance evaluation. Most
international reporting systems require information feedback at one level or
another on financial, personnel, production, and marketing variables.
2. The specific types of functional reports, their frequency, and the amount of
detail required from subsidiaries by headquarters will vary.
3. Unfortunately, the accuracy and timeliness of information systems are often
less than perfect. This is particularly so in less developed countries, where
managers typically operate in conditions of extreme uncertainty.
4. The adequacy of management information systems (MIS) in foreign affiliates
is a problem for headquarters managers in their attempt to maintain efficient
coordination of activities and consolidation of results. Another problem is the
inability to compare performance data across countries, which hinders the
evaluation process.
D. Evaluation variables across countries
1. A major problem in the evaluation of the performance of foreign affiliates is
the tendency by headquarters managers to judge subsidiary managers as if all
of the evaluation data were comparable across countries. Unfortunately, many
variables can make the evaluation information from one country look very

157
Copyright ©2014 Pearson Education, Inc.
 different from that of another due to circumstances beyond the control of a
subsidiary manager.
2. Clearly, one way to ensure more meaningful performance measures is to
adjust the financial statements to reflect the uncontrollable variables peculiar
to each country where a subsidiary is located. This provides a basis for the
true evaluation of the comparative return on investment (ROI), which is an
overall control measure. Another way to provide meaningful, long-term
performance standards is to take into account other nonfinancial measures.
3. The coordination process is the same whether it takes place in a domestic
company, a multinational company with a network of foreign affiliates, or a
specific IJV. It is the extent, the focus, and the mechanisms used for
monitoring systems that differ. More coordination is needed in multinational
companies because of uncertain working environments and information
systems and because of the variable loci of decision making.

Teaching Tip: Assign the following project to teams of students. Have each team view the
organizational structure of the United Nations Human Rights Organization and suggest
possible changes to streamline the organization. The organizational structure of the UN is
described at the Website http://www.un.org/en/aboutun/structure/index.shtml.

Teaching Tip: To gain a better understanding of an American-Japanese IVJ, have students

visit the Website of the New United Motor Manufacturing, Inc. (NUMMI)
www.nummi.com and report on what they find interesting.

Chapter Discussion Questions

1. What variables have to be considered in designing the organizational structure

for international operations? How do these variables interact, and which do you
think are most important?

The firm’s strategy, size, appropriate technology, and local environment, including
culture, are the variables to be considered. Students should be able to discuss linkages
between strategy and structure, size and structure, and culture and structure. Some
students will link technology to structure by noting the need for some companies to
control or to limit the transfer of technology to business partners. Very few students
will be able to consider a comprehensive model that integrates all the variables.
Students will likely divide between strategy and culture as the most important.

2. Explain the need for an MNC to “be global and act local.” How can a firm
design its organization to enable this?

Despite the many economies of scale advantages to be obtained by global strategy,

companies still find it necessary to respond to local markets and customs. Being
global and acting local can be accommodated organizationally by the horizontal
organization and the transnational organization forms. The management in focus
segment on Procter & Gamble’s structure is a good example of achieving this

158
Copyright ©2014 Pearson Education, Inc.
 objective. The firm seeks to maintain and leverage its core competencies while
making adaptations to local culture.

3. What is a transnational organization? Because many large MNCs are moving

toward this format, it is likely that you could at some point be working within
this structure—how do you feel about that?

A transnational organization is an emergent structural form that provides the

company with the ability to manage across national boundaries, retaining local
flexibility while achieving global integration. This capability involves linking their
foreign operations in a flexible way to one another and to headquarters, thereby
leveraging local and central capabilities. In some ways this structural approach is
similar to a geocentric philosophy of international business. The firm maintains a
common core in its philosophy, but at the same time is sensitive to the need for local
adaptation. It is reasonable to assume that many students would find working for such
an organization to be an interesting experience.

4. Discuss the implications of the relative centralization of authority and decision

making at headquarters versus local units or subsidiaries. How would you feel
about this variable if you were a subsidiary manager?

Exhibit 8-11 provides a continuum of the relative centralization of authority. Students

need to understand that the level of centralization/decentralization is contingent on
the needs of the organization. If you ask a student if he/she prefers to have authority,
he/she will answer “yes.” Although they may feel the need for authority and control
the choice of strategy and control will be dictated by the needs of the organization.
Increasingly, the use of a transnational strategy is preferred in which control has
centralized and decentralized features. Ultimately, it is still the responsibility of the
manager to achieve results and this responsibility cannot be delegated to others.

5. As an international manager, what would make you suggest restructuring of

your firm? What other means of direct and indirect monitoring systems could
you suggest?

Exhibit 8-10 offers an answer to the first part of this question. These indicators of
organizational malaise might function as a leading indicator of the need for some
change in either structure or control processes. Indirect controls include upfront
controls such as sales quotas, budgets, and other financial controls, as well as
feedback reports giving information about the sales and financial performance of the
subsidiary for a given period of time.

6. What is the role of information systems in the reporting process? Discuss the
statement, “Inadequate MIS systems in some foreign affiliates are a control
problem for MNCs.”

159
Copyright ©2014 Pearson Education, Inc.
 Because control depends upon information, and information comes from managed
systems of information, it is the MIS, which is the key to control of subsidiary
divisions of a corporation. Increasingly, information is seen as a critical component of
control, especially in an international environment. With geographical distance, the
need for, and the difficulty of, obtaining this information increases.

Application Exercises

1. Although not all students may have the opportunity to personally visit companies
with international operations, it may be possible to conduct a telephone interview
or to communicate via email.
2. One of the major issues facing MNCs with operations in India and Eastern Europe
is corruption. Both India and many countries in Eastern Europe still suffer from
high levels of corruption and this presents the need for greater control over
operations in those countries. Although many Eastern European countries have
now joined the European Union, long periods of accepting corruption as a normal
way of doing business have not been erased from the cultures of these countries.
3. In researching international joint ventures, it might be interesting to have students
investigate the IVJ between Toyota and GM. NUMMI (www.nummi.com) is a
good example of the successes and struggles firms face in creating such a
strategic alliance.

Experiential Exercise

A number of companies have opened fast-food operations in Eastern Europe.

McDonalds, Pizza Hut, KFC, and others are now operating in Eastern European
countries. A good source of information can be found at the Center for International
Business Studies at the University of Manitoba
http://www.umanitoba.ca/libraries/units/management/DoingBusiness/eastern_europe02.p
df. This link is to a detailed report on operating a business in the region and should be
very useful to students.

End-of-Chapter Case: HSBC’s Global Reorganization and Corporate Performance

in 2012

Question 1: How do you evaluate HSBC’s global reorganization and expansion in

the post–financial crisis period?

HSBC has shifted its emphasis to long-term ambitions in the emerging markets of Asia,
where growth is significantly available to those banks that carry prudent policies and
networks. At the same time, the areas of technology and financial services have become
more efficient because of the availability of online banking, the accessibility of large-
scale and real time data, useful analytics, and other technologies on hand. In view of the
damaged markets in North America and Europe this strategy makes sense.

160
Copyright ©2014 Pearson Education, Inc.
Question 2: Compare and contrast HSBC’s global operations with its main
competitors.

Although competition in emerging markets has been heightened because of the arrival of
local and multinational banks, 10 markets are available to those financial institutions that
carry efficient business models and operations. HSBC has major plans in the Asia
markets. Because of its long history and brand identity, the bank’s future plans and
restructuring initiatives can bear fruit if implemented accurately.
To deal with the 2008 financial crisis, HSBC embarked on a major reorganization that
changed its strategy and growth patterns. In 2011, HSBC trimmed its North American
operations because of losses in the area of subprime lending. At the same time, HSBC
started expanding in emerging markets of Asia. China was selected to be the bank’s
major market for future growth. Other reorganization took place that aimed at mostly
downsizing and trimming operations. These changes did impact the bank’s massive
operations in global markets.

Question 3: What did you learn from the HSBC’s case when applying concepts and
theories from Chapter 8?

Chapter 8 is about organizational structures and about how – if correctly matched to the
situation and industry- the corporate structure and systems can provide a significant
competitive edge.
HSBC’s case demonstrates the main points of the chapter: firms’ organizational
structures, interorganizational networks and alliances, and control and monitoring
systems are important when seeking expansion in the global banking industry, which
thrives on strategic locations, networks, and customer service. The same areas apply to
other industries and firms as well. Above all, firms must change on a continuous basis
when dealing with growth opportunities, corporate expansion, and unexpected events in
global markets.

Web Exercise

Since 2008, the global economy has been greatly affected by the economic downturn.
How has this affected the strategies of those companies who went “global” in the early
2000s? Has the global e-corporation network structure been affected and if so, how?
Select four to five companies in different fields, as mentioned in the text, and evaluate
their changing strategies as a result of the economic downturn.

Dell
http://content.dell.com/us/en/corp/d/corp-comm/aboutdell-worldwide.aspx
P&G
http://www.pginvestor.com/phoenix.zhtml?c=104574&p=irol-
newsArticleMain&ID=1365059
P&G
http://www.pg.com/company/who_we_are/globalops.shtml
Msnbc P&G

161
Copyright ©2014 Pearson Education, Inc.
International Management: Managing Across Borders and Cultures, Text and Cases Deresky 8th E

http://www.msnbc.msn.com/id/34326473/ns/business-us_business/
New York Times
http://topics.nytimes.com/topics/news/business/companies/procter_and_gamble/index.ht
ml?offset=10&s=newest
Alcoa
http://www.alcoa.com/global/en/news/news_detail.asp?pageID=20090106006407en&ne
wsYear=2009
Alcoa
http://www.alcoa.com/global/en/news/news_detail.asp?pageID=20090211006646en&ne
wsYear=2009

162
Copyright ©2014 Pearson Education, Inc.

Visit TestBankBell.com to get complete for all chapters

Another random document with
no related content on Scribd:
familiar to be repeated here. … In his inaugural address to
Congress last month, on being again installed as President, he
[president Diaz] referred to the achievements of Mexico in the
last twenty-five years, and modestly said that in it there
were no brilliant deeds to chronicle. From that notable
address I make this extract: 'If it were true that a peaceful
and laborious people have no history, the administration
period I am about to review would almost be devoid of history.
But, on the contrary, those nations that deserve to be called
happy in the only intelligible sense of the word, far from
being without a history, have a very glorious and interesting
one, if, besides being peaceful and laborious, they are also
progressive. That history is the history of their progress,
their achievements, their growing prosperity, of the
improvements of every kind which they have introduced—a
history which, in this modern age and the present constitution
of civilized societies, is as interesting as that of their
past and just as deserving of attention.'"

A report for 1900 by the British Consul at Vera Cruz is to the

same effect. The result of the recent elections he describes
as an assurance of prosperity and a guarantee of the foreign
capital invested in the country. Few countries, the Consul
observes, can boast of such rapid and beneficial reforms as
Mexico; these have, in a short time, prepared the way for the
development of her extensive resources, which are themselves a
sufficient assurance of the future. The finances have of
recent years been brought to a high state of excellence, and
commerce throughout the Republic has flourished. Foreign
capital has flowed in steadily, railway construction has
progressed, and other modes of communication have improved,
the telegraph and postal service have been reformed. The
improvement of inter-oceanic communication across the
Tehuantepec isthmus, with the harbors now being constructed on
both coasts, will revolutionize the foreign trade of Mexico.
It will take more than three years to complete the
reconstruction of the railway and to put the ports in a
 condition to enable freight to be taken from the ship's side
at one port and placed alongside the ship at the other within
24 hours. The Consul thinks the route is destined to become
one of the principal thoroughfares of the world, competing
with all other routes between Europe and the Far East.

{308}

Of what has been done for public education in Mexico under the
Diaz government the following account is given in one of the
publications (1900) of the Bureau of the American Republics:
"Education in Mexico has been for many years the subject of
serious consideration on the part of the Government, on
account of the difficulty experienced in combating the
conservative ideas prevailing in the Republic. The main
obstacles have, however, been overcome, and the country to-day
enjoys the benefit of a liberal system of education, which is
administered under three branches—gratuitous, lay, and
obligatory. … The law making education compulsory was
promulgated March 23, 1888, but its enforcement was not
decreed at that time, and the first Congress of Public
Education was convened for the purpose of adopting such
measures as should tend to establish an efficient and uniform
system of education. This congress met on December 1, 1889,
and closed its sessions on March 31, 1890. … A second congress
was convened on December 1, 1890, which solved certain
problems on compulsory elemental education, fixed the methods
to be followed in the schools of superior primary education,
and settled matters pertaining to normal schools, preparatory
education, and special schools. As the result of this
congress, the law of March 21, 1891, was enacted, regulating
compulsory education in the Federal District and the
Territories of Tepic and Lower California, which law became
effective on January 17, 1892. …

"On May 19, 1896, the law of public education was promulgated,
its salient points being as follows:
Official primary elemental education in the Federal Districts
and Federal Territories was placed under the exclusive control
of the Executive; primary superior education was organized as
an intermediate educational system between elementary and
preparatory instruction. A general board of primary education
was created, charged to develop and maintain the same under a
scientific and administrative plan. Preparatory education was
decreed to be uniform for all professions, its extent being
limited to the study of such matters as are necessary to the
development of the physical and intellectual faculties and the
morals of youth, it being further directed that professional
education be reorganized, limiting it to technical matters
which pertain to the profession or professions to which each
particular school is devoted.

"By virtue of this law public education ceased to be in charge

of the Board of Aldermen (ayuntamientos) of the
above-mentioned sections. At the time of its promulgation the
municipality of Mexico contained 113 schools, supported by the
Board of Aldermen, 14,246 students being entered on the rolls,
with an average attendance of 9,798. Each State defrays the
expenses of public education, either with funds specially
appropriated for that purpose or with the municipal funds.

"According to statistical data, in 1876, there were throughout

the country 8,165 primary schools, with 368,754 students of
both sexes. In 1895 Government schools reached the number of
4,056, of which 2,189 were for males, 1,119 for females, and
748 for both sexes; municipal schools numbered 3,394—for
males, 1,754; females, 932; both sexes, 708. These comprised
7,380 primary, 32 secondary, and 35 professional schools, the
number of students enrolled being 310,496 males and 181,484
females (a total of 491,980), and the mean attendance 338,066.
The total cost to the Government and the municipalities for
the maintenance of these institutions was $3,973,738. In the
same year private schools to the number of 1,816 were being
 conducted, 659 for males, 460 for females, and the remainder
under a coeducational system. In addition, 276 were supported
by the clergy and 146 by associations, the total number of
students enrolled being 68,879, of which 40,135 were males and
38,744 females. The total number of private schools was
accordingly 2,238, of which 2,193 were devoted to primary
education, 34 to secondary instruction, and 11 to professions.

"The statistics for 1897, which are the latest available, give
the following figures:

SCHOOLS. 1896.
1897.

Federal and State Governments. 5,852

6,141
Municipal. 3,218
1,953
Private institutions. 1,953
1,797
Supported by the clergy. 303
285
Supported by associations. 186
122

"Using the figures given in 1896 for Vera Cruz and the Federal
District as identical for 1897, it may be safely assumed that
on December 31, 1897, the public schools in Mexico (Federal,
State, and municipal) stood as follows:

Number of schools. 9,065

Students enrolled. 666,787
Average monthly attendance. 458,035
Private institutions. 2,361
Number of students. 92,387
 Average attendance. 75,857

"The total expenditures for the support of Federal, State, and

municipal schools amounted in 1897 to $6,291,000. In addition
to the normal and primary schools, the Government also
supports the following institutions:
School of jurisprudence,
school of medicine,
school of agriculture and veterinary instruction,
school of engineers,
school of fine arts,
school of arts and trades for men,
and a similar institution for women,
school of commerce and administration.
National conservatory of music,
preparatory school,
schools for the blind, for deaf-mutes;
reform schools, etc.,

also 9 museums, and 17 libraries containing from 400 to

159,000 volumes. Beside the Government institutions above
mentioned, there are throughout the country 26 museums, 83
libraries, 32 scientific and literary associations, and 457
periodical publications."

Bureau of American Republics,

Mexico: a Geographical Sketch,
page 313.

MEXICO: A. D. 1899 (May-July).

Representation in the Peace Conference at The Hague.

See (in this volume)

PEACE CONFERENCE.

MEXICO: A. D. 1900 (January).

Re-election of President Diaz.
 President Porfirio Diaz was reelected on January 1, for
a sixth term of four years.

MEXICO: A. D. 1900 (October).

Census of the Republic.
Gains shown in five years.

Announcement was made from Washington, on the 24th of

February, 1901, that "complete official returns of the census
taken on October 28, 1900, received by the Bureau of American
Republics, shows that the population of Mexico is 13,570,545,
against a population of 12,632,427 [given by M. Romero as
12,570,195—see above] in 1895. The gain in five years was
938,118, or 7.43 per cent. due in part to the greater accuracy
of the latest enumeration. The Federal District, in which is
located the City of Mexico, is the most densely populated
portion of the republic, and contains 530,723 people.
{309}
The City of Mexico increased about 20,000 in five years, and
now has nearly 357,000 inhabitants. The population of seven
States, Jalisco, Guanajuato, Puebla. Vera Cruz, Oaxaca,
Michoacan and Mexico, is 6,995,880, or a little more than
one-half of the entire population of the country. The
population of the States of Sonora, Tamaulipas, Tlaxcala,
Morelos, Tabasco, Aguas Calientes, Campeche, Colima, and the
territories of Tepic and Lower California, the total area of
which is more than one-fourth the entire country, is slightly
in excess of 1,380,000, or a density of only about 2.7
inhabitants to the square kilometre. The central and southern
portions of the republic are the most thickly populated, the
Western and Northern States being the most sparsely settled,
and the Gulf region, or eastern coast, contains a larger
number of inhabitants than the Pacific Coast region. … The
greatest percentage of increase is noted in the northern
States. These States, in addition to being good agricultural
districts, are enormously rich in mineral wealth, and the
 large increase in population in this part of the country is
chiefly due to the rapid development of the mines of the
republic, the erection of smelters and manufacturing plants,
and to the general stimulus given to trade and commerce by the
construction of railroads and the heavy investments of foreign
capital in the republic."

----------MEXICO: End--------

MIDDLE-OF-THE-ROAD POPULISTS, The.

See (in this volume)

UNITED STATES OF AMERICA:
A. D. 1896 (JUNE-November); and 1900 (MAY-NOVEMBER).

MILAN, Ex-King:
His later years and death.

See (in this volume)

BALKAN AND DANUBIAN STATES (SERVIA).

MILAN: A. D. 1898.
Revolutionary outbreak.

See (in this volume)

ITALY: A. D. 1898 (APRIL-MAY).

MILES, General Nelson A.:

Operations against Santiago de Cuba.

See (in this volume)

UNITED STATES OF AMERICA: A. D. 1898 (JUNE-JULY).

MILES, General Nelson A.:

Commanding expedition against Porto Rico.

See (in this volume)

 UNITED STATES OF AMERICA:
A. D. 1898 (JULY-AUGUST: PORTO RICO).

MILES, General Nelson A.:

Charges against the Commissary Department, U. S. Army.

See (in this volume)

UNITED STATES OF AMERICA: A. D. 1898-1899.

MILITARY ESTABLISHMENTS:
Armies of Europe and America and their cost.

See (in this volume)

WAR BUDGETS.

MILLENNIUM, The Hungarian.

See (in this volume)

AUSTRIA-HUNGARY: A. D. 1896.

MILNER, Sir Alfred:

Governor of Cape Colony and High Commissioner for South Africa.

See (in this volume)

SOUTH AFRICA: A. D. 1897 (FEBRUARY), and after.

MILNER, Sir Alfred:

Governor of the Transvaal and British High Commissioner.

See (in this volume)

SOUTH AFRICA (BRITISH COLONIES): A. D. 1901 (JANUARY).

MINDANAO.

See (in this volume)

PHILIPPINE ISLANDS.
MINERS, Strikes among.

See (in this volume)

INDUSTRIAL DISTURBANCES.

MINNESOTA: A. D. 1896.
Constitutional amendments.
Use of the Referendum.

Several constitutional amendments were submitted to the voters

of the State and adopted; among them one requiring citizenship
of the United States for three months and residence in the
State for six months before permitting a new-comer to vote;
another vesting the pardoning power in a Board of Pardons;
another empowering cities to frame their own charters, subject
to the State laws. At the same time, the Referendum was
brought into practical use, by the submission of several
legislative acts to the popular vote. One of the acts thus
submitted, providing for the holding of a constitutional
convention, was rejected.

MINNESOTA: A. D. 1898.
Outbreak of Pillager Indians.

See (in this volume)

INDIANS, AMERICAN: A. D. 1898.

MINOS, The Palace of:

Its supposed discovery.

See (in this volume)

ARCHÆOLOGICAL RESEARCH: CRETE.

MISSIONARIES, Christian:
The outbreak against in China.

See (in this volume)

 CHINA: A. D. 1895 (AUGUST);
1898 (MAY);
1898-1899 (JUNE-JANUARY);
1899; 1900 (JANUARY-MARCH), (MAY-JUNE);
and 1901 (MARCH).

MISSIONARIES, Christian:
Outbreak against in Madagascar.

See (in this volume)

MADAGASCAR.

MISSIONS, Christian:
The Ecumenical Conference of 1900 in New York.
Statistics of the Protestant foreign missionary
work of the world.

The third Ecumenical Conference on Protestant foreign missions

(the second having been held in London in 1888) was assembled
at New York on the 21st of April, 1900, under circumstances
related as follows in volume I. of the official report: "The
immediate origin of the Ecumenical Conference of 1900 was the
discussion of a question put in the 'question box' at the
Annual Conference of Foreign Missions Boards of the United
States and Canada, which met in New York in January, 1896, as
to whether it would be advisable to invite the secretaries or
representatives of societies from the other side of the
Atlantic to meet with the Annual Conference of the American
societies as it was then held, consisting chiefly of the
officers of the Boards. The Reverend F. F. Ellinwood. D. D.,
speaking to the question, said: 'I have had a hope that in the
year 1898, ten years from the great London Conference, we
might invite our brethren from all lands to a great Ecumenical
Conference on Missions.'

"Following this suggestion, a committee of five, consisting of

the Reverend Drs. Judson Smith, F. F. Ellinwood, A. B.
 Leonard, S. W. Duncan, and William S. Langford was appointed
'to consider the advisability of calling an Ecumenical
Missionary Conference, to meet in this country within the next
four years, to make preliminary preparation therefor, if
deemed advisable, and to report at the Conference of the
following year.' This committee corresponded with missionary
societies throughout the world, and at the next Annual
Conference recommended that such a Conference be held in New
York City in April of the year 1900; that this recommendation
be communicated to the societies, and a final date agreed
upon. In January, 1898, after further correspondence, the
place and date were finally decided." Measures were taken to
raise a guarantee fund of $30,000 for expenses, and other
preparations were made. Then "under date of June 1, 1899, a
general invitation was sent to every missionary whose name and
address could be secured, to attend the Conference and
participate in the discussions."

{310}

The Conference was opened in Carnegie Hall, New York, on the

21st of April, 1900, and continued its sessions, there and in
neighboring churches, until the 1st of May. "The personnel of
the Conference was broadly representative. It consisted
(1) of delegates appointed by organizations conducting foreign
missions outside of Europe and America;
(2) the missionaries of such organizations, and
(3) members elected by the Executive Committee.

The British and Continental and other foreign societies were

invited to send as many delegates as possible. The American
and Canadian societies were limited in the number of their
delegates; the total from both countries, being fixed at
1,666, was apportioned among the societies on the basis of
their expenditures in foreign missions. All foreign
missionaries in active service or retired were received as
full members. Some of the honorary members and vice-presidents
who were unable to attend desired to have their names
connected with so historic a gathering. Members of committees
and speakers, who were not already delegates, were by a
general act of the Executive Committee, constituted 'special
members.' In addition to the members of the Conference a large
number of persons came from far and near to attend the
meetings. Over fifty thousand tickets to the Carnegie Hall and
alternate meetings were distributed among this class of
visitors. Many thousands more attended the sectional and
overflow meetings where no tickets were required. The
Honorable Benjamin Harrison, for four years President of the
United States of America, occupied the chair, and made an
opening speech."

The magnitude of the organizations of missionary work, all the

interests, needs and fruits of which were discussed in the
Conference, is most succinctly represented in the subjoined
tables, prepared by Dr. James S. Dennis, which are given in
the appendix to the official report (pages 424-426, volume 2).
The classification appearing in the tables is explained as
follows:

"The Bible Societies, the Tract and Literature Societies, the

United Society of Christian Endeavor, the Epworth Leagues, and
similar organizations, philanthropic specialties like that of
the Pundita Ramabai in India, with a considerable number of
organizations, foreign missionary in title and purpose, but
simply rendering financial or other aid to existing
societies—demand recognition, and yet should they be counted
as strictly and technically foreign missionary societies? It
was chosen for the present purpose, to differentiate and
classify, naming three classes of societies as follows;

Class I. Societies directly engaged in conducting foreign

missions.

Class II. Societies indirectly co-operating or aiding in

 foreign missions.

Class III. Societies or Institutions independently engaged in

specialized effort in various departments of foreign
missions."

MISSISSIPPI: A. D. 1890-1892.
New State Constitution.
Qualification of the suffrage.

A new State Constitution, framed and put in force in 1890 by a

constitutional convention, without submission to the people,
established a qualification of the suffrage which heavily
diminished the negro vote by its effect. It imposed a pool tax
of two dollars per head, to which any county might add a
further tax not exceeding one dollar per head, which poll tax
for the year every voter must have paid before his ballot
would be received at any election. A further clause of the
Constitution on the subject was as follows: "On and after the
first day of January, A. D. 1892, the following qualifications
are added to the foregoing: Every qualified elector shall be
able to read any section of the Constitution of this State, or
he shall be able to understand the same when read to him, or
to give a reasonable interpretation thereof. A new
registration shall be made before the next ensuing election
after these qualifications are established. Electors in
municipal elections shall possess all the qualifications
herein prescribed, and such additional qualifications as may
be prescribed by law." In 1892 the Supreme Court of the State
affirmed the validity of the Constitution, which had been
challenged on two grounds, namely: that it had not been
submitted to the vote of the people, and that it was in
conflict with the Fourteenth Amendment of the Constitution of
the United States.

So far, the disfranchisement of the mass of blacks seems to

have had an unlooked for evil effect. "The Negro eliminated,
 only one political party remains, and political stagnation has
followed. In Mississippi, the requirement that a poll tax be
paid long before the election deprives many white men also of
their votes. But it does not bar them out of nominating
conventions. Many communities are ruled by a mere handful of
whites who cannot even cast a ballot. For instance, there are
320,000 males of voting age in Mississippi, but the whole vote
cast in the State in November was only 59,000. This is 11,000
votes less than were cast four years ago under the same
restrictions of suffrage. In other words, the whole State of
Mississippi cast practically 110 more ballots to elect seven
members of Congress than were cast in a single congressional
district in New York. (The fourteenth New York district cast
58,000 votes.) In the town of Eudora, where a mayor, a
marshal, a treasurer, and four aldermen were elected, only
eight votes were cast, and of the eight voters seven are said
to have been candidates for office.

"'The same men,' says a trustworthy despatch from New Orleans,

'were voters, candidates for office, and judges of election to
pass as judges on their own votes as voters for themselves;
and in spite of all their efforts they could get only one
outsider to come to the polls and cast his ballot.' This is an
extreme case; but in every State that has disfranchised the
Negro (making a discrimination between him and the ignorant
white man, in the white man's favor) political activity has
constantly disappeared, the vote has shrunk, public spirit in
politics has died. In Louisiana the total vote in November
fell from 99,000 in 1896 to 61,000; of Mississippi, from
69,000 to 59,000; of South Carolina, from 68,000 to 50,000—the
shrinkage in four years in these three States being nearly
68,000 votes, in spite of the increase of population."

The World's Work,

February, 1901.

MODDER RIVER, Military operations on.

 See (in this volume)
SOUTH AFRICA (THE FIELD OF WAR):
A. D. 1899 (OCTOBER-DECEMBER); and
1900 (JANUARY-FEBRUARY).

{311}
{312}
{313}