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Chapter 6
FORMULATING STRATEGY
LECTURE OUTLINE
General Outline
Opening Profile: Global Companies Take Advantage of Opportunities in South Africa
Reasons for Going International
Reactive Responses
Globalization of Competitors
Trade Barriers
Regulations and Restrictions
Customer Demands
Proactive Reasons
Economies of Scale
Growth Opportunities
Resource Access and Cost Savings
Incentives
Management in Action: Global Economic Downturn Causes Mexico’s Cemex to Retrench
Strategic Formulation Process
Steps in Developing International and Global Strategies
Step 1. Establish Mission and Objectives
Step 2. Assess External Environment
Institutional Effects on International Competition
Under the Lens: India Says No to Foreign Ownership of Supermarkets
Sources of Environmental Information
Step 3. Analyze Internal Factors
Competitive Analysis
Strategic Decision Making Models
Step 4. Evaluate Global and International Strategic Alternatives
Approaches to World Markets
Global Strategy
Regionalization/Localization
Global Integrative Strategies
Using E-Business for Global Expansion
E-Global or E-Local?
Step 5. Evaluate Entry Strategy Alternatives
Exporting
Licensing
Franchising
Contract Manufacturing
Offshoring
Service Sector Outsourcing
Turnkey Operations
Management Contracts
International Joint Ventures
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E-Business
Step 6. Decide on Strategy
Comparative Management in Focus: Strategic Planning for Emerging Markets
Timing Entry and Scheduling Expansions
The Influence of Culture on Strategic Choices
Conclusion
Summary of Key Points
Discussion Questions
Application Exercises
Experiential Exercise
Internet Resources
Case Study: Search Engines in Global Business
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.
Opening Profile: Global Companies Take Advantage of Opportunities in South Africa (see
slide 6-4)
Many foreign companies have set up successful operations in South Africa taking advantage of
favorable conditions such as legal protection of property, labor productivity, low tax rates,
reasonable regulation, a low level of corruption, and good access to credit. In spite of the low
level of skills and education among the workers, exchange rate instability, and crime,
companies such as Acer, Alcatel, and GE are successful and profitable.
However it is important to remember that as companies are “going international” many of them
are also carefully considering downsizing as part of their future strategy. As the economic
slowdown sends reverberations across the globe some companies are retrenching instead of
expanding in order to conserve cash flow. Many firms such as GM are announcing lay-offs,
closing plants, and closing divisions as retrenchment becomes a very real strategy.
At the same time MNCs from China, India, Brazil, and Russia are coming on strong and taking
advantage of three forces spurred by the Internet: mobility of talent, mobility of capital, and
mobility of knowledge.
I. Reasons for Going International (see slide 6-7)

A. Companies of all sizes “go international” for different reasons, some reactive (or
defensive) and some proactive (or aggressive). The threat of their own decreased
competitiveness is the overriding reason many large companies adopt a strategy of
aggressive globalization.
1. Reactive reasons
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a. Global competition: if left unchallenged, competitors who already have overseas
operations or investments may get so entrenched in foreign markets that it
becomes difficult for other companies to enter at a later time.
b. Trade barriers: barriers such as tariffs, quotas, buy-local policies, and other
restrictive trade practices can make exports to foreign markets too expensive.
c. Regulations and restrictions by home country government: regulations and
restrictions by a firm’s home government may become so expensive that
companies will seek out less restrictive foreign operating environments.
d. Customer demands: certain foreign companies may demand that their supplying
company operate in their local region so that they have better control over their
suppliers.
2. Proactive reasons
a. Economies of scale: One pressing reason for many large firms to expand
overseas is to seek economies of scale. These are achieved when higher levels of
output result in spreading fixed costs over more units, thus lowering the per-unit
cost.
b. Growth opportunities: When expansion opportunities become limited at home,
firms are often driven to seek new international markets. A mature product or
service with restricted growth in its domestic market often has new life in
another country where it will be in an earlier stage of its life cycle.
Teaching Tip: Turn the tables. Ask students to imagine they are president of Volkswagen in the
1960s or Toyota in the 1990s. Why weren’t they satisfied with doing business in their own home
markets? In what ways might U.S. businesses in the new millennium be facing the same
situations as Volkswagen or Toyota?
3. Resource access and cost savings: Resource access and cost savings entice many
companies to operate from overseas bases. Sometimes the prospect of shifting
production overseas improves competitiveness at home.
4. Incentives: governments in countries seeking new infusions of capital and
technological know-how often provide incentives to attract multinational
corporations, being an additional proactive reason for them to expand.
Management in Action: Global Economic Downturn Causes Mexico’s Cemex to Retrench

(see slide 6-8)
Mr. Zambrano has been a risk-taker. As the C.E.O. of the Mexican cement company, Cemex, he
aggressively moved the company into the global marketplace. In 2006 Cemex continued its
global expansion by making an unsolicited bid for the Rinker Group of Australia, giving Cemex
a stronger position in the U.S. housing market, especially in Florida and Arizona. The
acquisition was the largest ever by a Mexican company.
However, with rising costs for crucial raw materials such as coal, heavy oil, and gas, the focus
for Cemex in 2009 changed from expansion and acquisitions to cost-cutting and retrenchment.
The company announced that it would cut costs and jobs in its attempt to absorb the effects of
the U.S. housing crisis, global market volatility, and the weakness of the peso. In a rapid
106
reversal of fortune, the company known for relentless expansion was forced into selling assets,
negotiating with creditors, and cutting its work force and spending.
Update: As of August 2011, Cemex had secured a $15 billion restructuring deal, had cut 11
percent of its workforce worldwide, and halved it in Spain, and Mr. Zambrano was becoming
more optimistic. Reflecting on all that had happened, he said, “I had to hide my true feelings,
you have to be brave and appear brave . . . It was a terrible time.” Although this admission is
contrary to Mexican culture for a leader, it did signal a change of direction within the company.
Teaching Tip: Have students visit the Website of Cemex www.cemex.com and report back on
their current financial performance.
II. Strategic Formulation Process

A. The strategy formulation process (see slide 6-6) is necessary both at the headquarters of
a corporation and at each of its subsidiaries.
B. Global strategic planning is more complex than domestic strategic planning because of
the incidence of more complex variables, such as difficulty in gaining timely
information, diversity of geographic locations, and differences in environmental factors
(political, legal, cultural, market, and financial processes).
C. For firms that have not yet engaged in international operations, an ongoing strategic
planning process with a global orientation identifies potential opportunities for (1)
appropriate market expansion, (2) increased profitability, and (3) new ventures by which
the firm can exploit its strategic advantages.
D. The strategic formulation process is part of the strategic management process in which
most firms engage, either formally or informally. Strategic planning modes range from a
proactive long-range format to a reactive, more seat-of-the-pants method. Exhibit 6-1
(see slide 6-9) displays the strategic management process.
1. The first phase of the strategic management process—the planning phase—starts
with the company establishing (or clarifying) its mission and the overall objectives
of the firm.
2. The second part of the strategic management process is the implementation phase,
which requires the establishment of the structure as well as systems and procedures
suitable to make the strategy work.
III. Steps in Developing International Strategy (see slide 6-11)

A. Step One: Establish Mission and Objectives (see slide 6-12, 6-13)
1. The mission of an organization is its overall raison d’être, or the function it performs
in society. This mission charts the direction of the company and provides a basis for
strategic decision making.
2. A firm’s global objectives usually fall into the areas of marketing, profitability,
finance, production, and research and development (as noted in Exhibit 6-2).
Teaching Tip: Mission Check—Ask your students to prepare a one-paragraph mission statement
for their career. Have students work in teams to critique each other’s paragraph. Ask the students
to comment on the extent to which their mission statement effectively communicates their goals.
Alternatively, the class could create or evaluate the mission statement for your business program.
107
3. Goals for market volume and profitability are usually set higher for international
than for domestic operations because of the allowance for greater risk involved. In
addition, financial objectives must consider different tax regulations in other
countries and exchange rate fluctuations.
B. Step Two: Assess External Environment (see slide 6-15)
1. After clarifying the corporate mission and objectives, the first major step in
weighing international strategic options is the environmental assessment. This
assessment includes environmental scanning and continuous monitoring to keep
abreast of variables around the world that are pertinent to the firm and that have the
potential to shape its future by posing new opportunities (or threats). Firms must
adapt to their environment to survive. How to adapt is the focus of strategic
planning.
2. Environmental scanning is the process of information gathering and forecasting
relevant trends, competitive actions, and circumstances that will affect operations in
geographic areas of potential interest. This activity should be conducted on three
levels—global, regional, and national.
a. Scanning should cover (see slide 6-16) such topics as:
1. Political and Economic Risks
2. Technological, legal, physical restraints
3. Nationalism
4. International competition
3. International competitor analysis is the most important area for environmental

assessment and strategy formulation. The first step in analyzing the competition is to
assess the relevant industry structures as they influence the competitive arena in the
particular country (or region) being considered. For example, will the infrastructure
support new companies in that industry? Is there room for additional competition?
What is the relative supply and demand for the proposed product or service? The
ultimate profit potential in an industry in a given location will be determined by
these kinds of factors.
4. Companies can assess the environment of their competitors by looking into the
goals, strategies, strengths, and weaknesses of the competitors.
The firm can also choose varying levels of environmental scanning. The firm should
conduct global environmental analysis: multinational, regional, and national. The
multinational-level of analysis provides a broad assessment of significant worldwide
trends through identification, forecasting, and monitoring activities. At the regional
level, the analysis focuses in detail on critical environmental factors to identify
opportunities and risks for marketing the company’s products, services, or
technology. The national level of analysis focuses on the size and nature of the
market, along with any possible operational problems, in order to consider new entry
strategy options.
This process of environmental scanning, from the broad global level down to the
local specifics of entry planning, is illustrated in Exhibit 6-4 The first broad scan of
all potential world markets results in the firm being able to eliminate from its list
those markets that are closed or insignificant or do not have reasonable entry
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conditions. The second scan of remaining regions, and then countries, is done in
greater detail—perhaps eliminating some based on political instability, for example.
Remaining countries are then assessed for competitor strengths, suitability of
products, and so on.
Another important factor that must be considered in the environmental assessment at
all levels is how institutions might affect potential opportunities to compete.
Under the Lens: India Says No to Foreign Ownership of Supermarkets
On Wednesday, Finance Minister Pranab Mukherjee said the decision to allow

51% foreign direct investment in multi-brand retail, as it’s called here, was
suspended pending “consultations among various stakeholders.”
Mumbai (MarketWatch), December 7, 2011.
The decision followed fierce opposition to a proposal granting to foreign “big-box”
supermarkets, such as WalMart Stores, Inc., unfettered access to India’s $450 billion
retail consumer market. The fear among foreign retailers is that it is becoming harder
for outside companies to enter into India, one of the most promising emerging
consumer markets in the world. Starbucks and Dunkin Brands are forming alliances
in order to open outlets in the populous country. “It was easier to operate in the
country a year ago than it is today,” the CEO of General Electric’s Indian unit told
Bloomberg. “It is frustrating to look at unresolved issues and know that they’re
resolvable if you can get some leader- ship and orientation around them.” In
addition, in early 2012 investors were postponing new plans for business in India
while they awaited the budgetary decisions regarding a number of proposed new
taxes on foreign investment.
Various institutions can create opportunities or constraints for firms considering
entry into specific global markets. Specific ways in which formal institutions affect
international competition are (see slide 6-17, 6-18):
a. Attractiveness of overseas markets: institutions provide a broad framework of
liberty and democracy as well as human rights protections, property rights laws,
and so forth.
b. Entry barriers and industry attractiveness: institutions can create barriers to entry
in certain industries and hence make those industries more attractive for
incumbent firms.
c. Antidumping as an entry barrier: laws can place a foreign company at a
disadvantage if accused of “dumping.”
In India for example, greater emphasis on higher education and reforms that
liberalized the economy created a more open and competitive atmosphere which
fostered domestic and international competition. In China, guanxi, or interpersonal
connections, functions as a substitute for the weak formal institutions.
C. Sources of environmental information
1. The success of environmental scanning depends on the ability of managers to take an
international perspective and to ensure that their sources of information and business
intelligence are global. In the United States alone, over two thousand business
information services are available on computer database, tailored to specific
industries and regions; other resources include corporate “clipping” services and
109
information packages. However, internal sources of information are usually
preferable—especially alert field personnel who, with first-hand observations, can
provide up-to-date and relevant information for the firm.
D. Step Three: Analyze Internal Factors (see slide 6-19)
1. After the environmental assessment, the second major step in weighing international
strategic options is the internal analysis. This analysis determines which areas of the
firm’s operations represent strengths or weaknesses (currently or potentially)
compared to competitors so that the firm may use that information to its strategic
advantage. The internal analysis focuses on the company’s resources, operations,
and global synergies. The strengths and weaknesses of the firm’s financial and
managerial expertise and functional capabilities are evaluated to determine what key
success factors (KSFs) the company has and how well they can help the firm exploit
foreign opportunities.
2. All companies have strengths and weaknesses. Management’s challenge is to
identify both and to take appropriate action. Many diagnostic tools are available for
conducting an internal resource audit. Financial ratios may reveal an inefficient use
of assets that is restricting profitability; a sales-force analysis may reveal that the
sales force is an area of distinct competence for the firm.
E. Competitive analysis
1. The firm’s managers assess its capabilities and key success factors compared to
those of its competitors. They must judge the relative current and potential
competitive position of firms in that market and location—whether that is a global
position or that for a specific country or region.
a. This stage of strategic formulation is often called a SWOT analysis (an acronym
for Strengths, Weaknesses, Opportunities, and Threats), in which the firms
capabilities relative to its competitors is assessed as pertinent to the opportunities
and threats in the environment for those firms. It is important to consider
comparative advantages in entering a foreign market.
2. Most companies develop their strategy around key strengths, or distinctive
competencies. Core competencies represent important corporate resources because,
as Prahalad and Hamel explain, they are the “collective learning in the organization,
especially how to coordinate diverse production skills and to integrate multiple
streams of technologies.” Managers must also assess their firm’s weaknesses. Of
course, the subjective perceptions, motivations, capabilities, and goals of the
managers involved in such diagnoses frequently cloud the decision-making process.
F. Strategic decision-making models (see slide 6-20)
1. The international manager has a choice of strategic models to guide decision
making. The roles and interactions of the models are conceptualized in Exhibit 6-6.
The institution-based theory looks at existing and potential risks and influences in
the host area. Porter’s industry-based model examines five forces which determine
the dynamics within the industry. The resource-based approach identifies a firm’s
unique niche or competitive advantage.
G: Step Four: Evaluate Global and International Strategic Alternatives
The fourth major step in the strategic planning process is for managers to consider the
advantages of various strategic alternatives (see slide 6-21) in light of the competitive
110
analysis. There are two levels of strategic alternatives that a firm must consider: global
and national.
H. Approaches to world markets
1. Globalization refers to the integration of worldwide operations and the development
of standardized products and marketing.
2. The rationale behind globalization is to compete by establishing worldwide
economies of scale, offshore manufacturing, and international cash flows.
3. The pressures to globalize (see slide 6-22) include increasing competitive clout
resulting from regional trading blocs; declining tariffs that encourage trading across
borders and open up new markets; the information technology explosion that makes
coordinating a far-flung operation easier.
4. One of the quickest and cheapest ways to develop a global strategy is through
strategic alliances (for example the 2009 Chrysler-Fiat JV).
5. Globalization is inherently more vulnerable to environmental risk than a
regionalization strategy. Global organizations are more difficult to manage because
doing so requires the coordination of broadly divergent national cultures.
Globalization treats all countries similarly regardless of their differences in cultures
and systems: firms must lose some of their home country loyalties and replace them
with common corporate values and loyalties.
Teaching Resource: A great source of data on world economic and demographic conditions is
the World Bank. You can reach their publications website at: http://www.worldbank.org.
6. Regionalization (or multi-local) is a strategy in which (see slide 6-23) local markets
are linked together within a region and a strategy is formulated for each region,
allowing more local responsiveness and specialization.
7. The strategic choice as to where a company should position itself along the
globalization-regionalization continuum is contingent upon the nature of the
industry, the type of company, its goals and strengths, and the nature of its
subsidiaries. In addition, each company’s strategic approach should be unique in
adapting to its own environment. Many firms may try to “Go Global, Act Local” to
trade off the best advantages of each strategy.
Ghemawat’s analysis—referred to as CAGE distance framework—of Google has
shown why the company has had problems with their “one size fits all” strategy:
1. Cultural distance: Google’s biggest problem in Russia seems to have been
associated with a relatively difficult language.
2. Administrative distance: Google’s difficulties in dealing with Chinese censorship
reflect the difference between Chinese administrative and policy frameworks and
those in its home country, the United States.
3. Geographic distance: Although Google’s products can be digitized, it had trouble
adapting to Russia from afar and has had to set up offices there.
4. Economic distance: The underdevelopment of the payment infrastructure in Russia
has been another handicap for Google relative to local rivals.
I. Global integrative strategies (see slide 6-26)
1. Many MNCs have developed their global operations to the point of being fully
integrated—often both vertically and horizontally, including suppliers, productive
111
facilities, marketing and distribution outlets, and contractors around the world.
Although some companies move very quickly to the stage of global integration—
often through merger or acquisition—many companies evolve into multinational
corporations by going through the entry strategies in stages, taking varying lengths
of time between stages.
2. Whereas Proctor and Gamble took 100 years to fully go global, more recently many
companies are “born global”—that is they start out with a global reach, typically by
using the Internet capabilities and also through hiring people with international
experience and contacts around the world.
3. HBR: “Standing conventional theory on its head, start-ups now do business in many
countries before dominating their home markets.”
J. Using e-business for Global Expansion
1. Companies of all sizes are increasingly looking to the Internet as a means to expand
their global operations. The benefits of a global B2B strategy are many, as shown in
Exhibit 6-7 (see slide 6-27). On the other hand, there are many challenges inherent
in the B2B strategy, such as cultural differences, varying business models,
governmental wrangling, and border conflicts.
2. Potential problem areas that managers must assess in their global environmental
analysis include conflicting consumer protection, intellectual property and tax laws,
increasing isolationism among democracies, language barriers, and a lack of tech-
savvy legislators worldwide.
3. Global managers must realize that e-business cannot be regarded as just an extension
of current businesses. It is a whole new industry in itself, complete with a different
pool of competitors, and whole new sets of environmental issues. To assess the
potential competitive position of the company, managers must ask themselves:
a. Does the exchange provide a technology solution that helps industry-trading
partners to do business more efficiently?
b. Is the exchange known to be among the top three to five within its vertical
industry?
c. Does the exchange offer industry-specific technology and expertise that gives it
an advantage over generic exchange-builders?
E-Global or E-Local? (see slide 6-28)
Although the Internet itself is global, companies pursuing global markets using
the Internet must still consider local cultural expectations, differences in privacy
laws, government regulations, taxes, and payment infrastructure. The e-global
strategy is best for global B2B markets in steel, plastics, and electronics. The e-
local strategy is more suited to consumer retailing and financial services. It is
best for situations in which production and consumption are regional in scope,
when behavior differs across regions, and when supply-chain management is
important for success.
Teaching Tip: View Yahoo and eBay from around the world. Ask students to comment on the
different strategic focus found at these sites.
112
Step 5: Evaluate Entry Strategy Alternatives (see slide 6-29)
1. For a multinational corporation, a more specific set of strategic alternatives focuses
on different ways to enter a foreign market. This section examines the various entry
and ownership strategies available to firms, including exporting, licensing,
franchising, contract manufacturing, offshoring, service-sector outsourcing, turnkey
operations, management contracts, joint ventures, and fully owned subsidiaries set
up by the firm and e-business. These alternatives are not mutually exclusive; several
may be employed at the same time.
2. Exporting is a relatively low-risk way to begin international expansion or to test out
an overseas market. An experienced firm may want to handle its exporting functions
by appointing a manager or establishing an export department. Alternatively, an
export management company (EMC) may be retained to take over some or all
exporting functions, including: dealing with host country regulations, tariffs, duties,
documentation, letters of credit, currency conversion, and so forth.
3. Licensing: International licensing agreements grant rights to a firm in the host
country to either produce or sell a product, or both. Licensing is especially suitable
for the mature phases of the product life cycle.
Teaching Resource: Have students visit a very interesting Website—Franchise International

http://www.franchise-international.net/ to learn more about international franchising.
4. Franchising: Franchising involves relatively little risk. The franchiser licenses its
trademark, products, services, and operating principles for an initial fee and ongoing
royalties. Franchising can be an ideal strategy for small businesses, because outlets
require little investment in capital or human resources.
5. Contract Manufacturing: a common means of utilizing cheaper labor overseas is to
contract for production of finished goods or component parts, a process called
contract manufacturing.
6. Offshoring: when a company moves one or all of its factories from the “home”
country to another country to avoid trade barriers or take advantage of lower costs of
production.
7. Service Sector Outsourcing: the process of setting up overseas offices, call centers,
and research labs to low-wage countries such as India, the Philippines, and China in
order to reduce the cost of white-collar employees.
8. Turnkey Operations: in a turnkey operation, a company designs and constructs a
facility abroad, trains local personnel, and then turns the key over to local
management for a fee.
9. Management Contracts: a management contract gives the rights to a foreign
company to manage the daily operations of a business, but not to make decisions
regarding ownership, financing, or strategic and policy changes.
10. International Joint Ventures (IJVs): A joint venture involves an agreement by two or
more companies to produce a product or service jointly. Ownership is shared,
typically by an MNC and a local partner. This strategy facilitates rapid entry into
new markets by means of an already established partner who has local contacts and
familiarity with local operations.
113
IJVs are a common strategy for corporate growth around the world; they are also a
means to overcome trade barriers, to achieve significant economics of scale for
development of a strong competitive position, to secure access to additional raw
materials, to acquire managerial and technological skills, and to spread the risk
associated with operating in a foreign environment. The IJV also reduces the risks of
expropriation and harassment by the host country. Many countries, like Mexico and
Japan, stipulate proportions of local ownership and participation. International joint
ventures are one of many forms of strategic global alliances further discussed in the
next chapter.
10. Fully Owned Subsidiaries: In countries where a fully owned subsidiary is permitted,
an MNC that wants total control of its operations can start its own product or service
business from scratch or it may acquire an existing firm in the host country. This
represents the highest level of risk for a firm.
11. E-Business: E-business is an entry strategy at the local level; as such the failure risk
of entry depends greatly on the country or region, even though risk is generally low
globally.
Exhibit 6-9 summarizes the advantages and critical success factors of these entry
strategies.
Comparative Management in Focus: Strategic Planning for Emerging Markets (see slides
6-31, 6-32, 6-33)
As shown in Table 6-2 (see slide 6-32) there continue to be many indicators of the increasing
business opportunities available for companies wanting to set up operations in or export to the
emerging markets, in particular in light of the slowdown in growth in many developed
economies brought about by economic problems. Different countries are at different levels of
development however and have different risk/return profiles, which require retailers to tailor
their approaches accordingly and assemble a portfolio of markets to balance short-term risk
with long-term growth aspirations. The World Economic Forum report also cautions that
emerging markets are not a single homogenous group: “They develop differently, have different
infrastructural, socio-economic and regulatory challenges, face different environmental and
geographical constraints, and, to a certain extent, afford different opportunities for business. We
argue that the lack of adequate development in the areas of trade facilitation and trade logistics
can curtail the growth for these markets and the world.”
In jumping on the bandwagon, firms of all sizes, in particular small businesses, must realize that
investing in developing economies usually entails considerably higher levels of risk than they
are familiar with—in particular those risks of political turmoil, corruption, and contract
enforcement. However, avoiding emerging markets will, over time, make firms less competitive
than those who invest there in some form.
In their research, Washburn and Hunsaker have found that forward-thinking global managers
(they call them “bridgers”) have identified and developed innovations in emerging markets
(often with the insight of the local managers) and been able to integrate those ideas and
improvements into their companies’ product lines. Innovations percolating from emerging
market companies already indicate the potential, such as Tata’s $2,500 Nano car in India.
A study by Deloitte involving interviews with several executives and a survey of 247 executives
114
from consumer and industrial product companies with presence in emerging markets revealed
that companies are increasingly making emerging geographic markets a centerpiece of their
global business model. Over the next three years, upwards of 88 percent of companies plan to
expand their presence in emerging markets. In fact, nearly half of these organizations expect 20
percent or more of their global revenues to have their origins in emerging markets. Furthermore,
a third of these companies plan to place more than 20 percent of their investments in these
regions. None of these figures suggest an imminent end to offshoring as we know it, but rather a
renewed interest in its pursuit. While cost savings is still a key motivator for nearly three-
quarters of manufacturing companies, it’s no longer the sole reason to set up shop abroad.
Almost seventy percent of the manufacturers in our study consider market expansion an
important factor (see Exhibit 6-10).
In fact, more than two-thirds of companies think it’s equally important to cost savings.
Similarly, 55 percent of manufacturing companies reported that they establish operations in
emerging markets to improve their speed to market.
Forward-thinking companies are beginning to realize that future returns will depend on
emulating global business models in emerging markets. In recent years, the rate of IJV
(international joint venture) formation has continued to increase steadily, especially among
emerging markets in Asia, Eastern Europe, and Latin America. These emerging markets account
for about 70 percent of all IJV entries by multinational corporations.
The type of business activities, market opportunities, country regulations, tax advantages, and
experience in emerging markets are the key determinants of operating model (see Exhibit 6-13).
Thirty-eight percent of manufacturing companies in our study reported that they currently use
wholly owned subsidiaries in emerging markets. As they build complete product lines and
develop new products, companies require a significant level of control over strategic business
activities.
In many cases, market opportunities also drive the choice of operating models in emerging
markets. Multinational companies that struggle to stay competitive and innovative sometimes
find emerging market companies with a new line of products that has potential to add
significant cash flow. In such cases, the choice of operating model depends on size of
investment, risk appetite, competition and expected return on the investment. Companies should
choose between joint ventures and acquisitions only after thorough due diligence, depending on
how these factors play out.
Step 6: Decide on Strategy (see slide 6-39)

1. The choice of one or more entry strategies will depend on (1) a critical evaluation of
the advantages and disadvantages of each in relation to the firm’s capabilities; (2)
the critical environmental factors; and (3) the contribution that each choice would
make to the overall mission and objectives of the company. When it comes down to
a choice of entry strategy or strategies for a particular company, there are more
specific factors relating to that firm’s situation that must be taken into account.
These include: factors relating to the firm itself, the industry in which it operates,
location factors, and venture-specific factors.
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2. After consideration of these factors, some entry strategies will no longer be
appropriate. Managers will decide between equity and non-equity based alternatives.
Equity modes may be wholly-owned operations or equity joint ventures. Non-equity
modes may be contractual agreements and export.
3. Gupta and Govindarajan propose a hierarchy of decision factors but consider two
initial choice levels. The first is the extent to which the firm will export or produce
locally. The second is the extent of ownership control over activities that will be
performed locally. There are many choice combinations available.
4. International strategic formulation requires a long-term perspective. Entry strategies,
therefore, need to be conceived as part of a well-designed, overall plan. In addition,
strategic choices at various levels often are influenced by cultural factors (see slide
6-40), such as a long-term versus a short-term perspective. Hofstede found that most
people in countries such as China and Japan generally had a longer-term horizon
than those in Canada and the United States.
Teaching Tip: Have students visit the Website http://www.business-in-asia.com/vietnam.htm to

learn more about business in Vietnam. This site can be useful for the additional case found
below.
Chapter Discussion Questions
1. Discuss why companies “go international,” giving specific reactive and proactive
reasons.
As a reactive response, companies go international in order to respond to challenges from

foreign competitors; to get around restrictive trade barriers; to do something about
expensive host government regulations and restrictions; and to respond to consumer
demands that may emerge. From a proactive point of view, companies internationalize in
order to seek economies of scale; to overcome limited expansion opportunities at home; to
gain access to resources and to realize cost savings abroad; and to improve competitiveness
at home.
2. What effects on company strategy have you observed as a result of the global economic
downturn which began in 2008?
Companies such as Cemex are slowing down or reversing their international expansion;
where they were once taking risks they are now contracting to avoid further risk or to ease
pressure on their bottom line. Other companies might be increasing the level of offshoring
or outsourcing to lower costs still further.
3. Give examples of the impact of the Internet on small business.
As domestic growth declines because of slow-growth economies, opportunities abroad look

more attractive, in particular since the Internet now greatly facilitates the ability to quickly
link to contacts in other countries. New start-ups in Europe, for example, feeling the weight
of the continent’s continuing debt crisis, realize that they must go global from the beginning
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to establish sufficient market size to be viable. Indeed, most European entrepreneurs and
managers are well equipped personally to go global because they are accustomed to moving
easily among different languages and customers.
4. Discuss the ways in which managers arrive at new strategic directions—formal and
informal. Which is best?
Formally, managers can use formal planning techniques like industry structure analysis
leading to a SWOT analysis of the firm. They can carefully screen countries and
opportunities to find a match between their resources and opportunities. Informally, they can
use their intuition and their network of contacts and employees to develop and implement
venture ideas. Formal planning is by definition more systematic and is, therefore, more
likely to uncover weaknesses in the company, threats in the environment, and/or strengths
upon which to build and opportunities to exploit.
5. Explain the process of environmental assessment. What are the major international
variables to consider in the scanning process? Discuss the levels of environmental
monitoring which should be conducted. How well do you think managers conduct
environmental assessments? (Course objective 3)
Environmental scanning is the process of information gathering and forecasting relevant

trends, competitive actions, and circumstances that will affect operations in geographic areas
of potential interest. Major international variables that are considered in scanning include:
political instability, currency instability, nationalism, and degrees of international
competition. Environmental monitoring goes on at three levels: multinational, regional, and
country. The ability to do a comprehensive environmental scan probably depends on the size
of the firm. It is reasonable to assume that smaller firms are not conducting very detailed
analysis of any type when they decide on the merits of a particular market. Even with
limited resources, small firms can purchase relevant information concerning market
potential, political risk, and competitive positioning.
6. Discuss the impact of the rise of emerging market countries on the strategic planning
of firms around the world.
The global economy is rebounding, led by developing economies including China and India,
with developed countries growing much more slowly. However different countries are at
different levels of development and have different risk/return profiles, which require
retailers to tailor their approaches accordingly and assemble a portfolio of markets to
balance short-term risk with long-term growth aspirations. The World Economic Forum
report also cautions that emerging markets are not a single homogenous group: “They
develop differently, have different infrastructural, socio-economic and regulatory
challenges, face different environmental and geographical constraints, and, to a certain
extent, afford different opportunities for business. After going through the steps of the
strategic decision- making process as outlined in this chapter, including those operational
factors in the institutional context such as infrastructure, availability of suppliers, labor
markets, and capital markets (such as the effectiveness of banking and financial
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institutions), CEOs must then decide whether to enter that market and, if so, decide what
needs to be changed. As Harvard Business Review authors Khanna, Palepu, and Sinha
recommend: “decide whether to work around the country’s institutional weaknesses, create
new market infrastructures, or stay away because adapting your business model would be
impractical and uneconomical.”
7. How can managers assess the potential relative competitive position of their firm in
order to decide on new strategic directions?
Corporate strengths and weaknesses are best assessed through an analysis of distinctive
competencies (unique capabilities and resources possessed by the firm) and through analysis
of core competencies, which represent the collective learning in the organization. A SWOT
analysis is a summary of the external issues (opportunities and threats) and internal
resources (strengths and weaknesses) that are most likely to influence the future or intended
direction of the firm. In addition, firms can do a gap analysis or value chain analysis to
assess their competitiveness relative to competitors. Essentially, the firm must determine
how its core competency can be leveraged internationally.
8. Discuss the relative advantages of globalization versus regionalization.
In globalization, firms are able to use standard products and systems. This affords
economies of scale that can be turned to more competitive pricing or higher operating
profits. Successful regionalization requires firms to be more responsive to local consumer
preferences that result from national or cultural differences. If national differences prevail,
firms who are successful at regionalization are more likely to prosper. The proper choice of
globalization or regionalization is determined somewhat by the product or industry. Some
products/industries are more likely to be able to operate on a globalized scale. Where
specific tastes and preferences are important, the only viable option is to customize the
product offering for the individual markets.
9. Compare the merits of the entry strategies discussed in this chapter? What is their role
in an integrative global strategy?
➢ Exporting: exporting offers the advantages of being low risk, not having any long-
term asset utilization, and being easy in terms of market entry and exit.
➢ Licensing: licensing offers quick market entry, no ownership risks, and the
avoidance of tariff and nontariff barriers.
➢ Franchising: franchising offers opportunities for small businesses that may not be
otherwise available, little investment risk for the franchisor, and fast market entry.
➢ Contract Manufacturing: contract manufacturing allows the firm to focus on the part
of the value chain that has the highest value added (it may not be manufacturing), is
limited in terms of commitment, and has a low investment risk.
➢ Offshoring: when a company moves one or all of its factories from the “home”
country to another country to avoid trade barriers or take advantage of lower cost of
production.
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➢ Service-Sector Outsourcing: Service-sector outsourcing reduces the cost of “human
capital,” offers around the clock service from different time zones, and can supply
critically needed services that may be in short supply at home. Factors other than
cost must be considered, including potential backlash from customers and
communities, and the possible loss of proprietary technology and information.
➢ Turnkey Operations: turnkey operations allow for greater utilization of skills and
technology and may be useful when FDI is restricted.
➢ Management Contracts: skill specialization and limited risk are the major advantages
of management contracts as a mode of entry.
➢ International Joint Ventures: international joint ventures allow for insider access to
markets, the sharing of costs and risks, and the possibility of leveraging the local
partner’s technology and contacts.
➢ Wholly-Owned Subsidiaries: The greatest potential for profit comes from the
wholly-owned subsidiary entry mode. In addition, it has the advantages of greater
economies of scale, strategic coordination, and the possibility of rapid entry into the
market through acquisition.
➢ E-Business: e-business is an entry strategy at the local level; as such the failure risk
of entry depends greatly on the country or region, even though risk is generally low
globally.
10. Discuss the considerations in strategic choice, including the typical stages of the MNC
and the need for a long-term global perspective.
There are three primary considerations in strategic choice: (1) evaluation of the advantages
and disadvantages of each entry strategy in relation to the firm’s capabilities; (2) the critical
environmental factors; (3) the contribution that each choice would make to the overall
mission and objectives of the company. The most typical sequence involved in entry-level
strategies starts with a company exporting, then proceeds to assembly abroad, and
eventually evolves to full production abroad with the company’s own subsidiaries.
International strategic planning requires a long-term perspective, because strategy is the
essence of the company’s overall plan.
Application Exercises
1. Students can combine skills acquired in a strategic management class to complete this
exercise, assuming they have taken such a class. If not, the chapter provides sufficient
detail in order to complete the assignment. Of particular interest to the course is to be
able to provide some assessment of country selection.
2. The chapter provides a good summary of the advantages and disadvantages of each
entry mode (Exhibit 6-9). Although the choice of mode may be somewhat dictated by
the business, sufficient flexibility in considering options is useful
3. Students can visit the corporate Websites of different companies, and use search engines
such as Google or Yahoo to find articles about the selected company.
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Information that may be helpful to completing this exercise can be found at

http://www.buyusa.gov/russia/en/
http://www.kpmg.ru/russian/supl/library/taxlegal?Doing Business in Russia.pdf
By reviewing the above Websites, enough information can be gained to make a

recommendation concerning the appropriate entry strategy for Russia.
End-of-Chapter Case: Search Engines in Global Business
1.) Compare and contrast the top 5 search engines in global business.
As of 2012, Google is the most popular and powerful search engine in the world, followed by
Yahoo, Baidu (China), Bing, and Ask. Of course Google is highly diversified in its products and
maintains sites in various languages. This is a perfect reflection of today’s global business with
diverse markets and consumers. Google also maintains Google Docs, Google Calendar, Google
Site Search, Google Maps, etc. In 2012, Google sales surpassed $37 billion with a market
capitalization of $200 billion. This shows the immense power and coverage of this search
engine. “Baidu” is the largest search engine in China with sales of $2.5 billion, and it carries a
market capitalization of $48 billion. “Yandex” is a major search engine in Russia. In addition,
South Korea maintains “Naver,” Czech Republic has “Seznam”; “Sohu” is distinctly available
in the Chinese market and continues to be a dominant player. Regardless of their types and
forms, search engines in global business are highly differentiated on the basis of their functions,
country image, and usage. Search engines’ transaction data and search results can reveal an
interesting array of data.
2.) Within today’s changing global business, what do you see happening in the next five
years regarding search engines’ growth and country-specific issues?
Search engines such as Google, Yahoo, Baidu, Yandex, Naver, and others will play a major role
in their country-specific environments because of business efficiencies and productivity issues.
The area is still in its infancy and growth stage and will have massive repercussions for MNCs,
domestic companies, governments, and consumers worldwide. Above all, consumers’ privacy
and national policies are major variables in the growth of global search engines.
3.) Search engines carry national identities and cultures. Compare major search engines
from each continent on the basis of their local characteristics and national identities.
The search engines and their commercial identity are highly country and region specific.
For example Yandex has sponsored contests from its users for the best search algorithms with a
prize for the best. Yandex wanted to stress the shared experiences of its users with the feeling
of community that working together brings. Yandex has also hosted a webcast where
participants could interview Russian President Vladimir Putin. Russian celebrities have also
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lent their presence to some of Yandex’s efforts. Yandex also has some of the same social media
programs as the West. Yandex has also established open channels for the local districts
throughout Russia – becoming the major source for internet use throughout the country.
Baidu is a Chinese language search engine and also features the Chinese language equivalent of
Wikipedia for websites, audio files, and images. Baidu offers 57 search and community services
including Baidu Baike, an online collaboratively built encyclopedia, multimedia content such as
music, movies etc. Baidu has launched a smartphone called the Changhong. In addition to
Baidu’s map service, it also features an encyclopedia of every village in China, and various
other functions such as Government legal search function which lists all government
regulations, and another search for all patents registered in China – very important for a country
such as China.
Additional Case
Tiger Surgical Supplies: Pouncing on Doi Moi Opportunities in the Emerging Economy of
Vietnam
Bordeaux Plastique Fabriquant, S.A., a French surgical supply company decided in 1994
to establish a production facility in Ho Chi Minh City, Vietnam. The company selected Vietnam
as the sight for increased production capacity due to very low labor costs, and the possibility of
exporting to Southeast Asian countries. Management of Bordeaux felt that Vietnamese workers
would be very motivated and that labor problems would be nonexistent. Bordeaux also
concluded that due to Vietnam’s desire to attract foreign capital, establishing a foreign
subsidiary in this newly emerging economy would be easy and government relations with the
company would be good. Unfortunately for Bordeaux, none of these assumptions would prove
to be correct.
Vietnam
Located in South East Asia, Vietnam has attracted the attention of Western governments
since at least the 19th century. In 1858 the French colonized Vietnam. After internal fighting in
an eight-year war, the French signed the Geneva Agreement in 1954 that lead to their
withdrawal from the country and the division of Vietnam into the communist north and
noncommunist south. The Geneva Agreement required elections to be held for unification;
however, the government in the south refused the elections and proclaimed itself the Republic
of Vietnam. During the late 1950’s conflict escalated between the north and south that led
President Kennedy to send U.S. military advisors to Vietnam in 1961. In 1965 President
Johnson sent military combat forces to Vietnam. The war in Vietnam escalated, and without a
clear sign of victory the American public grew tired of the conflict. In 1973 a peace agreement
was reached and the United States withdrew its military forces from Vietnam. Within two years
the communist government from the north invaded the south and unified the country into the
Socialist Republic of Vietnam.
With its socialist economic system suffering, Vietnam instituted economic reforms in
1986 referred to as doi moi, indicating that the country was ready to move toward a market
economy. With the liberalization of the economy, Vietnam began to experience rapid economic
growth. Many Western companies raced into Vietnam due to its low labor costs and the belief
that Vietnam was an untapped market. Although the government of Vietnam is still communist,
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the economy has become more capitalistic. The government, however, still maintains significant
control over the economy and operates many state-owned enterprises. Government bureaucracy
and corruption are often seen as impediments to further economic growth.
Early Difficulties with the Government

Philippe Desmarest, a ten-year veteran of Bordeaux was placed in charge of all
governmental relations for the proposed joint venture. If successful, Philippe would become the
chief operating officer of the new facility. Because he had successfully negotiated an
international joint venture agreement with Mexican authorities a few years prior to this
assignment, Philippe was considered by management to be the best candidate to negotiate with
the Vietnamese. Philippe made several trips to Hanoi to meet with governmental officials,
including officials at the Ministry of Planning and Investment (MPI). He knew that it was
critical that MPI officials agree to any foreign investment project so he was always well
prepared for his meetings. Philippe prepared many reports that showed how a proposed joint
venture between Bordeaux and a local partner would benefit Vietnam. Philippe was proposing
that Bordeaux and its Vietnamese partner establish a joint venture called Tiger Surgical
Supplies (TSS) and that the company produces surgical gloves, protective goggles, and fluid
resistant gowns for export to Europe and Asia. If initial production were successful, Tiger
would then expand production into other surgical supply areas.
Although Philippe was assured by his Vietnamese consultants, and by the joint venture
partner, that Vietnam was very open to foreign investment, the meetings with the Vietnamese
government did not always go smoothly. It appeared to Philippe that the government officials
were often confused by what he was proposing, and that they also had some suspicions about
the intentions of his company. When negotiations dragged on for months, Philippe became
discouraged and decided to recommend to the top management of Bordeaux that the company
begin looking for another country in which to locate the plant. When word of this action
reached governmental officials at the Ministry of Planning and Investment, the necessary
permits for the plant were approved immediately. Philippe decided that a tough approach in
dealing with the Vietnamese was the most effective strategy.
A Slow Start
Tiger Surgical Supply had purchased a building that was previously a state-owned
enterprise. The facilities were in need of much repair, but Philippe felt that with the abundance
of extremely low labor costs in Vietnam the building could be brought up to the necessary
standards in a short time, and with little expense. After much more time than expected, and at a
much greater expense than anticipated, Tiger Surgical Supply was ready for production in the
spring of 1997. Although the Vietnamese partner had helped with some governmental and
construction contacts, the partner’s role in the venture was practically nonexistent. Philippe
preferred this passive association.
Philippe had selected Nguyen Tam Chien (a French citizen who left Vietnam as a child)
to be the founding plant manager for the new joint venture. He had been educated in France and
Belgium in economics, business administration, and management and spoke passable
Vietnamese. In Vietnam, Chien was called a Viet Kieu or “overseas Vietnamese.” He belonged
to a large group of Vietnamese who fled the country after the fall of Saigon fearing life under a
communist government. Chien’s family first settled in the United States, but after a brief stay,
relocated to France. Chien was now very interested in helping his former country achieve
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economic gains, and he welcomed the opportunity to help start a new business venture in the
country. Although returning to Vietnam was a hardship, Chien felt a sense of responsibility to
his former homeland.
Both Philippe and Chien were surprised by the number of applications that were
submitted in response to the advertisement for production positions. Many of the applicants
were well educated, and it became difficult to select the few needed from the large mass of
applications. Philippe delegated responsibility for employee selection to Chien, and with the
help of his assistant, Pham Hi Thi, the two selected what they considered to be the best
candidates. One of the criteria for selection was the lack of production experience. Chien felt
that if he selected employees with previous experience in production that they would bring the
bad habits that they learned under state-controlled operations to TSS. He wanted to be able to
train the new employees in Western work methods.
Production got off to a slow start, and lagged far behind initial expectations. Philippe
reasoned that it would take some time for the employees to gain an appreciation for new
concepts like productivity and efficiency. Chien was not as patient and was constantly
complaining to Thi about the lack of motivation he found among the workers. Chien, who was
from what was formerly South Vietnam, blamed the communists for ruining the work ethic of
the Vietnamese people. One of the habits that Chien found especially hard to accept was the
practice of napping in the afternoon. Chien would find that at times the entire production
process would be silent and everyone in the factory would be resting or napping for about an
hour. Thi explained to Chien that it was customary in Vietnam to allow an afternoon nap.
Although Chien did not see the reason for this practice, he relented with the understanding that
employees would not be paid for the time they spent not working.
Relations between Chien and many of the workers did not appear to be good. It was
obvious to all that Chien often became frustrated with the workers and would openly express his
disapproval. It appeared to Philippe that many of the workers did not appear to like Chien, and
he wasn’t sure why. Chien was a very dedicated, conscientious, and serious manager, and he
had made a personal sacrifice to return to Vietnam to help his former country. He expected
much from his employees; however, he had a soft side as well and a true desire to make
Vietnam a more prosperous country. Philippe thought that some of the ill will between Chien
and the work force came from Chien’s early effort to fire some poor performing employees.
Chien had selected 16 employees who consistently performed poorly and gave them one week
to improve. Thi cautioned Chien on this move; however, Chien insisted. Without exception all
the targeted employees showed no improvement and it was decided that all 16 employees would
be fired. It was with great surprise that Chien learned that terminating employment in Vietnam
was no simple matter, and that the workers could appeal the decision to the People’s
Committee, which they did. The People’s Committee reinstated all the employees, much to the
displeasure of Chien.
Although it was intended that TSS would be staffed by as many locals as possible,
Philippe felt that there might be a need for additional expatriates to manage the operation. He
considered recruiting managers from Thailand who could help bring a more “business”
perspective to the supervision of TSS employees. Chien and Thi disagreed and convinced
Philippe that it was important that the management of TSS be “homegrown” in order to gain
favor with the Vietnamese government and to help develop a managerial class in Vietnam.
Furthermore, they argued, having Vietnamese supervisors would provide incentive for
operational level employees to work hard in the hope of gaining an internal promotion.
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Although Philippe finally agreed, he worried that most Vietnamese had been trained in
management under the communist system and that it was a very ineffective way of running an
organization. He feared that France would soon begin to put pressure on him to improve
operations.
Tigers, Horses, Monkeys

With an urgent need for organizational efficiency, Philippe decided that TSS needed an
incentive plan to increase worker motivation. He instructed Chien to develop a plan that he
thought would work. Chien consulted Thi, who recommended against radical change, and
recommended instead that wages be based on a piece-rate system. Chien thought that a more
systematic approach was needed, and developed a program to revamp the organizational
structure. Feeling that it was not practical to attempt to fire more workers, Chien created three
different classes of employees. The highest class, the Tiger class would be paid the highest
salary and be the only employees eligible for promotion. Tigers would wear red clothing and be
given more privileges than the other classes of workers. The second-class employees, the
Horses would be paid less than the Tigers, but more than the lowest class of employees, the
Monkeys. The Horses would wear black clothing and be eligible for certain limited benefits.
The Horse class was seen as average performers who, if they improved, could be placed in the
highest class. The poorest performing employees would be placed in the Monkey class and
would not be eligible for promotion or overtime assignments, nor any special benefits such as
company sponsored dinners and entertainment. Monkeys would wear brown clothing and were
expected to pay respect to all employees in the higher classes. Being in the lowest class was
intended to punish and humiliate employees who were placed in that class. Although the two
lowest classes could advance, a general feeling existed that the Monkeys would never be able to
move from their position. Philippe noticed that class membership tended to correlate with age,
and that the Tigers were generally a younger group of employees. It was hoped that the very
visible class structure would motivate employees to either improve or quit the company. The
strong desire to save face would be a strong motivator, or so thought Chien.
The employees, many of whom refused to wear the appropriate uniforms, immediately
challenged the class system of employment. A particularly unpleasant event occurred shortly
after the plan was announced. The body of a dead monkey was placed over the opening of the
plant gate, wearing a brown shirt, and its face covered with an image resembling that of Chien.
Continued tensions existed with the class system, and eventually it deteriorated to the point that
the only differences among group members were pay and benefits. The system, with all its
problems did, however, appear to raise overall efficiency of the operation. The Tigers who
operated in teams were very productive, and many of the Horses were showing signs of
improvement. The employees classified as Monkeys continued to perform poorly.
Expansion Plans
With some of the initial problems resolved, Philippe was eager to expand production
into other areas. The current facility could be expanded and additional workers hired to
capitalize on the increased concern over the spreading of the AIDS virus in Asia and the
subsequent increase in sales of prophylactics. Although Bordeaux did not manufacturer
prophylactics, Philippe felt that TSS was in a good position to expand the product line for the
company. He suggested to his managers at Bordeaux that they consider expanding the
production capacity of TSS. Bordeaux authorized a feasibility study of the market, and the
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report indicated that a low cost provider could gain a competitive advantage in the Southeast
Asian market. With the favorable report Philippe was given the authority to begin expansion
plans for TSS.
Following the same course that he had followed in the initial approach to establishing
the joint venture, Philippe contacted the Vietnamese government officials in Hanoi and
informed them of the expansion plans. He felt that the officials would be delighted that TSS was
increasing its investment in Vietnam and that the company would be increasing its employment.
The Vietnamese officials, however, who appeared uninterested in the expansion plans, did not
match his enthusiasm. Philippe was told that he would have to contact Tran Hung, a MPI
official in Ho Chi Minh City who he was told may approve the expansion. Hung told Philippe
that he had some concerns about the expansion of TSS. Through a translator he told Philippe
that it seemed that TSS was “too French” and that the Vietnamese joint venture partner was
exercising not enough influence. He recommended that Philippe consider an additional
Vietnamese partner, maybe someone in government who could help him with the necessary
connections that he would need to expand his facility. It was obvious to Philippe that Hung was
suggesting that he be included in the investment. This was completely unacceptable to Philippe,
and so he decided to consult Chien and Thi concerning his options.
Chien felt that TSS should reject any involvement of government officials in the joint
venture, and that Philippe should return to MPI and demand that the expansion plans be
approved. Thi did not appear to agree with Chien, but she remained mostly silent. Chien
reasoned that after all, it was the threat of withholding investment which was successful in
securing the initial permits for the plant. Given the advice offered by Chien, Philippe scheduled
another appointment with Hung. On his arrival, Philippe was greeted with warm enthusiasm by
Hung. Philippe thought that someone in a superior position to Hung must have instructed him to
be more cooperative in matters of foreign investment. So it came as a great surprise to Philippe
that Hung’s mood shifted dramatically when he was informed by Philippe that no government
official would be involved in TSS, and that TSS expected the permission for expansion to be
approved as soon as possible. Hung was noticeably upset and informed Philippe that he may be
making a big mistake. Philippe informed Hung that the decision was final, and in a loud voice
warned Hung that it was he who may be making a big mistake. Philippe threatened Hung with
adverse action from his superiors in Hanoi if he didn’t do his part to gain approval for
expansion. As Philippe left the office he looked back at Hung who was smoking a cigarette at
his desk and smiling.
Cutting the Tall Poppy

The following day began with some troubling news from the port from which TSS
shipped its products for export. A delivery driver for TSS was phoning to tell Chien that the
customs inspectors were not allowing any TSS product to be loaded for shipment. The driver
refused to give a reason, and seemed to be confused as to why the action was being taken.
Philippe immediately thought of Hung and proceeded to go to his office and confront him about
the actions of the customs inspectors. Upon arriving at Hung’s office Philippe was informed
that Hung was unavailable for the rest of the day. After three days had passed Philippe was
finally able to schedule an appointment with Hung. Frustrated by the delay in seeing Hung, and
frustrated by customs problems, Philippe, in an angry manner, accused Hung of interfering with
the export shipments. Using a translator Hung denied any involvement. He did tell Philippe that
he had heard that the customs inspectors were concerned about possible black market products
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leaving the country in TSS containers. Hung told Philippe that he could help him with the
problem, and that it would only require the payment of an “inspection fee” of two dollars a
container. Philippe felt that he had no choice but to agree to the fee since all of TSS’s exports
were piling up on the loading docks. He told Hung that the inspection fee would be paid, and
that he needed Hung to instruct the customs agents to immediately clear the goods for shipment.
Philippe returned to his office feeling exploited by the whole experience. His feelings of
exploitation were increased when word came from the docks that the goods were still not being
loaded. Philippe immediately called Hung who informed him that now the loaders were
demanding a loading fee of one dollar a container. Philippe remain silent for a moment and then
asked Hung why TSS was being singled out for these additional fees. Hung paused for a
moment and then replied in English that “the tall poppies get cut first.” Not sure what he was
implying, Philippe told Hung that TSS would pay the additional dollar fee to the loaders. It was
at this point that Philippe was questioning his decision to promote Vietnam as a desirable
location for a production facility. Although the additional fees were small, Philippe didn’t like
the idea of paying what essentially amounted to a bribe, and he wondered what else Hung had in
mind to punish him for not agreeing to include him in the partnership expansion plans. Philippe
wondered if the government would ever approve the expansion, and if he had made a mistake in
recommending Vietnam as an investment location.
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Perspectives: An Evaluation of Local and Foreign Managers in Vietnam. Asian Pacific Journal
of Management, 18(1), 101–111.
Curry, J. and C. Nguyen. (1997). Passport Vietnam. San Rafael, CA: World Trade Press.
Prasso, S. (1999). Vietnam: Welcome Back? Business Week. August, 16.
Triandis, H., Carnevale, P., Gelfand, M., Robert, C., Wasti, D., Chen, X., Kim, U., Dreu, C.,
Vliert, E., Iwao, S., Ohbuchi, K., and P. Schmitz. (2001). Culture and Deception in Business
Negotiations: A Multilevel Analysis. International Journal of Cross Cultural Management, 1(1),
73–90.
Venard, B. (1998). Vietnam in Mutation: Will it be the Next Tiger or a Future Jaguar? Asian
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Webster, L. (1999). The New Breed. Vietnam Business Journal, 8(4), 1–8.
www.state.gov/backgroundnotes/Vietnam. Accessed on June 8, 2002.
Instructors Note: This case can be useful in exploring the difficulties of international expansion
into recently industrialized economies. Although the prospects may appear to be great,
frequently difficulties arise that were not planned. This case attempts to combine cultural
dimensions into a look at a strategic choice that went badly. The case can be used equally well
in the next chapter as well.
Student Stimulation
Group or Class Learning Activities
1. Visit LandsEnd.com, LandsEnd.de, and LandsEnd.co.jp. Based on an analysis of the three

Websites, assess the type of strategy used by Lands End. Is it a regionalization strategy or a
globalization strategy? Why or Why not? Has Lands End successfully globalized itself?
126
2. SWOT Yourself: You have been interviewing for a position with a Fortune 100 company
for a position in its international division. If you are successful in attaining the position, you
will be given a career opportunity in the country of your choice. Prior to attending your final
interviews, the company’s VP of Human Resources asks you to prepare a SWOT analysis
on your career potential. Your SWOT analysis will be evaluated by the company based on
two criteria: (1) whether you can envision the opportunities that exist in the international
arena and whether you have acquired the strengths to meet those opportunities, and (2) the
honesty/self-awareness you demonstrate by your assessment of your weaknesses. Each
student should work on his or her SWOT analysis individually for 15 minutes. Following
that time, the students will meet in small groups to discuss their self-assessment (students
are allowed to keep certain information confidential should they so choose). Questions the
students might ask each other include:
A. What do you see as the principal opportunities in a career in international business?

B. What do you see as your principal strengths that will allow you to take advantage of
these opportunities?
C. Identify one or two skills that you feel you will need that you don’t already possess?
What could you do over the next one or two years to develop those skills.
Additional Stimulation Discussion Questions
1. The text clearly states that opportunities will pass companies by unless they are willing to
consider the international marketplace. Do you feel this may also be true for business people
on a professional basis? That is, do business professionals who consider going into
international careers have significant advantages over those who wish to remain only in
their home nation?
2. Because strategic planning is no guarantee of corporate success, do you feel companies that
strategically plan really have much of a competitive advantage over those that do not?
3. How are the missions and objectives of international firms likely to be more complicated
and sophisticated than those of purely domestic firms? Look up the mission statements for
several international firms and domestic firms. How do they compare?
4. What opportunities and threats will likely emerge when a firm decides to move from purely
domestic operations to global operations?
5. Perform a brief SWOT analysis for your college or university in attracting students from the
new market economies of Poland and Russia.
6. Describe the primary indicators that a firm’s strategy is working.
7. The Swedish market already has two successful local car companies—Saab and Volvo.
Volvo is now partially owned by Ford. What opportunities and threats might Ford have been
responding to in making the decision to acquire Volvo?
127
8. As the Korean population is increasingly able to afford high priced items like cars, this
market represents a desirable growth opportunity for Japanese, German, and American car
makers. However, the Korean automobile market is dominated by Korean car manufacturers
(Hyundai, Ssanyong, and Daewoo). Oftentimes, such domination by a domestic
manufacturer is blamed on trade barriers, but Korea’s tariffs are among the lowest in the
world. Why then do most Koreans drive Korean-made cars? What entry strategy would be
most appropriate for accessing this culturally-closed market?
9. Continue Question 8 by performing an environmental scan of the Korean automobile

market. Be sure to include all the aspects of environmental scanning.
COMPARATIVE STRATEGY
Purpose: The purpose of this exercise is to develop a better understanding of how

organizational strategies differ in Asia, Europe, and the United States.
Procedure: Select one Annual Report from a company headquartered in Asia,

Europe, and the United States. In other words, select one Asian, one
European, and one American company and find Annual Reports from
those companies. Annual Reports can often be downloaded from the
company’s Website.
Read through the Annual Reports looking for strategic differences that
you feel are culturally based. Differences may be found in the importance
of market share, profitability, community responsibility, stakeholders, as
well as the importance placed on immediate results. Differences in
organizational mission and corporate values may also be found.
After doing the analysis, develop a report that highlights your observations.
Web Exercise
Let’s look at the missions and objectives of various companies in various fields and compare
and contrast. How do these m/o statements look at the firm’s role vis-à-vis the environment?
How would the m/o statement of a pharmaceutical company differ from a consumer company?
Judging from the following Websites and the text, how would you imagine a pharmaceutical
company would need to consider environmental issues?
http://www.pfizer.com/about/
http://www.jnj.com/connect/about-jnj/jnj-credo/
http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html
http://aboutmcdonalds.com/mcd/our_company/mcd_faq/student_research.html#1
http://www.samples-help.org.uk/mission-statements/apple-computer-mission-statement.htm
128
http://walmartstores.com/AboutUs/7649.aspx
http://media.corporate-ir.net/media_files/IROL/10/100529/nike-gs09/sports.html
http://www.bayer.com/en/Mission-Statement.aspx
http://www.astrazeneca-us.com/about-astrazeneca-us/our-
company/mission?itemId=1129372&nav=yes
http://www.merck.com/about/Merck%20Vision%20Mission.pdf
129
Another random document with
no related content on Scribd:
—El que usted quiera, si teme que puedo quitarle de un jalón esa
miseria.
—Tampoco sabe usted si mi casa...
—¿Si está firme? ¡Bah! Pero pinto que estuviera quilla arriba...
Mejor, si con esa ayuda la poníamos á flote. Jajajajaaaá. Si al fin
tenemos que entendernos, camará. De modo que sobre este punto
estamos á la orillita los dos, y desde esta tarde empiezo á mandar
plata. Por lo que falta de apañar, aquí tiene las letras endosadas á
usted ya, con un montón de billetes.
Dijo, y sacó de una cartera enorme con vivos de oro y cifras de
diamantes, más de un millón de reales en papel que entregó á don
Serapio.
Éste no sabía si echarse á llorar ó á los pies de aquella providencia
tan estrafalaria como espléndida; pero conteniéndose, por no
evidenciar demasiado su necesidad, ya que el indiano se empeñaba
en no conocerla, aceptó la oferta tan tenaz y, según las señas,
deliberadamente hecha, diciendo al indiano en un tono que no
carecía de dignidad:
—Yo, señor mío, y por mi desgracia, no tengo el dinero en tanta
abundancia como usted; mis negocios, como todos los de la plaza,
son en pequeño, relativamente á los de ustedes en América; por lo
cual ni mis colegas ni yo tenemos nunca la caja tan bien provista
que podamos disponer de cien mil duros en un momento de
sorpresa, pues no llegan á tanto muchos capitales que aquí se
llaman grandes, cuanto más nuestros sobrantes para imprevistos.
En una palabra, yo no puedo admitir esta suma más que en uno de
estos tres conceptos: como depósito, en cuyo caso, y por razones
que son para mí sagradas, aunque usted no quiera oirlas, le daré la
llave de una caja de mi escritorio para que usted disponga á su
arbitrio del dinero; ó como préstamo, por un plazo convenido; ó en
cuenta corriente, á condición de que para disponer de sumas de
alguna importancia me avise usted con la anticipación que se
estipule. Además, y usted me perdone tantas exigencias, yo, por un
sentimiento de delicadeza, necesito consignar en el resguardo que
le entregue, que se resiste usted á oir ciertas explicaciones que he
querido darle acerca del estado de mi casa, requisito que yo juzgo
de utilidad vista la importancia de la suma.
—¿Acabó ya, mi amo?—exclamó don Romualdo después de haber
escuchado con la boca abierta á don Serapio.
—Es cuanto me ocurre sobre el asunto, después de volver á dar á
usted un millón de gracias por la confianza con que me honra.
—Pues mire, cuando le haga la entrega del último centavo, me pone
el papel como le dé la gana, ó no me pone pizca. Y se finó aquí la
historia, que, camará, por cuatro chinitas como ésas nunca he
platicado yo tanto.
Don Serapio caminaba de asombro en asombro. Como broma podía
pasar aquel derroche; pero contra tal suposición protestaban los
valores que ya tenía en su poder.
—Pero la cuestión de intereses—replicó al indiano,—no puede
dejarse sin tocar, señor mío; y necesito que usted me diga si le
bastan los que aquí abonamos en las cuentas corrientes...
—Ahorita mismo vamos á hablar de eso, señor don Serapio; y mire
que no encuentre caros los que le pida.
—Ya pareció aquello—pensó el buen hombre; y añadió en voz alta:
—Usted dirá.
—Voy á decirle. Yo quiero tomar estado, ¿me entiende?
—Recomendable propósito.
—Y quiero tomarle en este pueblo.
—Me parece muy bien.
—Y con una madamita muy conocida de su mercé.
—Pues lleva el proyecto muy adelantado ya.
—Andandito.
—¿Y será imprudencia preguntar á usted quién es?
—Enriqueta.
—Hay varias de ese nombre.
—Su niña de usted.
—¡Mi hija!
—Ajajá. ¿Le van pareciendo caros los réditos?
No es fácil explicar el efecto que produjo en don Serapio esta
embestida en seco. Preocupado con la situación de su casa y en
entredicho con su mujer desde la escena que conocemos, no tenía
la menor noticia de las exhibiciones y aparentes propósitos del
indiano, ya públicos en la ciudad. Cogióle, pues, de nuevas la
pretensión, y le aturdió. Por un lado le halagaba; por otro se le
resistía. Aquel tipo para una mujer como su hija... y César... y el
recuerdo de éste en la memoria de Enriqueta. Pero aquel caudal
enorme, aquel desprendimiento, aquella franqueza honrada, el
porvenir de la casa con un protector semejante... Todo lo fué viendo
instantáneamente, y así, sin saber si agradecer la demanda ó
maldecirla, contestó al indiano con afectada parsimonia:
—La nueva pretensión que acaba usted de manifestarme, mi señor
don Romualdo, es de tal naturaleza que no alcanzaría todo mi buen
deseo á despachársela á su gusto sin contar antes con el de la
interesada.
—Por ahí me duele, camará.
—¿Usted la conoce?
—¡Si la llevo estampadita en el alma!
—Digo si la ha tratado usted,—repuso don Serapio, nada
complacido con aquella fineza.
—Eso no; pero ella me conoce, y también su mamita.
—Es decir, que se conocen ustedes de vista.
—Cabales.
—Entonces nos falta casi todo el camino por andar, y usted no
extrañará que yo, dando á su deseo toda la importancia que se
merece, se le transmita á mi hija para que, libre de toda presión, me
diga su parecer, que es, en mi concepto, lo principal del asunto.
—Y la mamita, ¿tomará parte en el consejo?—preguntó el
pretendiente seguro de que no le sería su voto desfavorable.
—Naturalmente, señor don Romualdo.
—Pues entonces—replicó éste,—me retiro ahorita; y me hará la
merced el señor don Serapio de leerme cuanto antes la sentencia. Y
mire, al llegar le hubiera implorado que me presentara á las señoras;
pero desde que platicamos del caso, para que lo vea, me tiemblan
las choquezuelas, y no lo aceptaría hoy aunque me lo brindara.
—Iba á hacerlo precisamente.
—Pues ya me ha oído. Créame, don Serapio: aunque me ve tan
llenote y rollizo, soy una criatura en lo sentido.
—Ya lo voy reparando,—observó aquél sonriendo.
—Es la fija, créame... ¡Jajajajaaaá!
Y lanzó una carcajada, llena, robusta, sonora, estrepitosa,
interminable. Con la cual, dos reverencias, tres sombreradas y un
apretón de manos, amén de algunas frases de cumplido, despidióse
de don Serapio, que le acompañó hasta la puerta del escritorio,
donde hubo todavía algunas ofertas recíprocas y no pocos
cumplimientos.
Volvióse el comerciante á su despacho; llamó al tenedor de libros, y
le dijo, examinando con escrupulosidad los billetes y las letras que
había recibido del indiano.
—Abra usted una cuenta á don Romualdo Esquilmo...
Y como si hubiera cambiado repentinamente de parecer, añadió en
seguida:
—Pero no se la abra usted todavía.
Con lo cual volvió el tenedor á su puesto, extrañando mucho que en
semejantes circunstancias se le mandasen tales cosas; de lo cual
dedujo que la visita del indiano podía llegar á tener alguna influencia
en los futuros destinos de la casa.
Entre tanto, es de advertir que don Serapio se arrepintió de su
primer mandato, porque se le ocurrió de pronto que habiendo sido
los dos millones una embajada más ó menos ostentosa para
autorizar la petición subsiguiente, si ésta llegaba á ser desairada,
procediendo con decencia había que mandar retirar los
embajadores, si es que no se retiraban ellos solos. Que la petición
podía ser desairada, se lo hacían temer el carácter de su hija y las
aparentes circunstancias, aun sin meterse á indagar las
desconocidas, de su pretendiente; circunstancias y peros que
habían pasado inadvertidos para él cuando sólo se trataba de sus
intereses materiales, y que le saltaron á los ojos tan pronto como
aquél se declaró aspirante á la mano de Enriqueta. Conste, pues,
como dato que honra á don Serapio, aunque no le salve en lo
principal de su culpa, que, por de pronto, teniendo en su mano el
talismán misterioso que podía regenerar su casa en un momento,
estaba dispuesto á arrojarle por la ventana si esa regeneración
había de ser al precio del sacrificio de su hija.
Y meditando así, envolvía los valores del indiano en una carpeta,
sobre la cual escribió: «De don Romualdo Esquilmo», lacrándola y
sellándola. Después guardó el paquete en el fondo de su caja
embutida en la pared y defendida por maciza puerta que cerraba
con barrotes y candados.
Volvió luego á su puesto; sentóse en el viejo sillón; estuvo
meditando largo rato con la cabeza entre las manos; trancó después
el atril y los cajones de la mesa, y con paso tranquilo y mesurado
echó escalera arriba por la excusada.
X
Bien ajena estaba doña Sabina á lo que pasaba en el gabinete de
su marido entre éste y el indiano, en el punto y hora en que ella y
Enriqueta entretenían el tiempo, en un saloncito, con esas
frivolidades de adorno que compradas en la calle valen una miseria,
y llegan á costar un sentido hechas en casa por la aplicación y
economía de una gran señora hacendosa.
Excusado es decir que ni esta ocasión ni otras parecidas
desaprovechaba doña Sabina para predicar á su hija sobre el tema
tan debatido ya de la brillante proporción. Y es la verdad que al
llegar el amén de la anteúltima homilía, Enriqueta, fuera por
cansancio ó por haber agotado su caudal de excusas, epigramas y
reparos, ó por otro motivo más grave, no dijo una palabra ni mostró
en el más leve gesto señal alguna por donde su madre pudiera
conocer el verdadero fruto que habían dado sus palabras. Pero
como los sermones habían sido predicados en rigorosa gradación
de efecto, hábilmente preparada, sin cuidarse mucho de aquella
aparente impasibilidad, aguardó al próximo con gran confianza en el
Cristo que reservaba como último argumento para mover hasta el
corazón de su hija.
Así como así, desde la cabalgada de que ya tenemos noticia, don
Romualdo no había vuelto á parecer por aquellos barrios, lo cual era
un mal síntoma, y se hacía indispensable ganar á todo trance el
terreno perdido.
Con tan loable propósito comenzó su exordio la buena predicadora
en la ocasión á que nos referimos al principio de este capítulo; y
preciso es confesar que nunca se mostró más elocuente ni más
seductora.
—Mira, hija mía—la dijo entre otras cosas,—el hombre más
antipático y repulsivo desde lejos, tiene, estudiado de cerca,
condiciones que le hacen, si no encantador, por lo menos tolerable.
Pues bien: tú misma me has dicho que, en rigor, no hay en el
aspecto de don Romualdo nada de repugnante, aunque haya algo
de vulgar y charro. ¿No es casi seguro que ese hombre, tratado en
confianza, descubriría algunas virtudes que harían olvidar fácilmente
aquellos defectos? Según fama, es campechano, afable y
bondadoso hasta con los más extraños. Y siendo así con todos,
¿qué no sería contigo? Y siéndolo contigo, ¿qué prodigios no haría
un hombre como ése por verte contenta y agradecida? ¿Has
meditado alguna vez sobre esto, Enriqueta?... Pero me dirás que
eres joven; pensarás, aunque no me lo digas por modestia, que eres
hermosa; que tienes un corazón virgen, como quien dice, de todo
sentimiento amoroso; que ese corazón aspira á llenarse con otro
corazón que le comprenda y que se le parezca... Después el mundo,
el fantasma del mundo que te viera unida á un hombre que, por su
edad, más parecería tu padre que tu marido; que no es aristocrático
en su aire, ni literato en su estilo, ni en sus contornos un modelo.
Pero á estos reparos, hija mía, que te conteste ese mismo mundo
por la boca de tantas mujeres, amigas tuyas las más de ellas, que
también los hicieron en parecido trance. El uno era grosero; el otro
sucio; éste carcomido de cuerpo; aquél, del alma; tal, de
escandalosa conducta; cual, de infame procedencia. Y todos eran
viejos, pero todos eran ricos. Ellas no eran pobres, y además todas
eran jóvenes, y ninguna fea ni sin casto amor en el pecho. Gimieron
al principio, protestaron, maldijeron; pero llegó la reflexión al cabo,
venciéronse los escrúpulos... y vete á preguntarlas hoy si están
arrepentidas, en medio de sus galas, entre el ruido de sus trenes y
el vértigo de sus viajes y sus fiestas ostentosas; consulta sus
corazones, y ve si queda en ellos la menor señal de que habitó allí
por largo tiempo la imagen de un galán enamorado.
Aquí hizo una pausa doña Sabina y estudió con mirada escrutadora
el efecto de sus palabras en el ánimo de Enriqueta; pero ésta seguía
con los ojos sobre su labor, sin mostrar señal de asentimiento ni de
desaprobación; duda que animó á la predicadora, la cual continuó
así:
—Pues bien, hija mía, esta transformación, tan rápida que parece
increíble, se ha obrado á merced de una fortuna que no pasa de lo
ordinario entre las buenas, y de unas cuantas cualidades morales de
pacotilla, que de ningún modo pueden contrapesar ni la carcoma del
uno ni los públicos vicios del otro. Figúrate ahora lo que sucedería si
llegaras á ser la señora de ese hombre que, tras de no tener nada
de repugnante, reúne un caudal que excede á todo cálculo, y es
además generoso y ama con delirio la sociedad y el trato de las
personas distinguidas. ¡Deslumbra y ofusca, hija mía, la sola
consideración de ello! Por de pronto, al mero anuncio de tu boda,
lloverían sobre ti joyas y ricas telas, y vendrían del extranjero, para
tu regalo, los más costosos y elegantes trenes. Una vez casada, no
habría país en el mundo que no visitaras, ni capricho que en él no
satisfacieras. Ya de retorno, te establecerías en espléndido palacio
que se edificaría para ti, en el cual estarían las fiestas y la
servidumbre á la altura de tu posición. Llevarías al gran mundo el
ejemplo de tu esplendor y tu elegancia, y á las capas humildes de la
sociedad la limosna de tu filantropía y el consuelo honroso de tu
presencia. No habría asociación piadosa que no te diera la
presidencia, ni huérfano que no te ensalzara, ni desvalido que no te
bendijera. La prensa seguiría tus pasos, popularizaría tu nombre y
tus riquezas, y desde la bordada silla de tu lujoso despacho, no
tendrías que envidiar el poder ni los honores de un ministro en su
poltrona. Y si todavía, en medio de estos resplandores y de estas
armonías de la opulencia, trasluces ciertas horas de prosa y de
tinieblas, necesarias á la vida íntima del matrimonio, repara á la vez,
hija mía, que la existencia doméstica de una mujer del gran mundo
está sujeta á leyes sabias que quitan todo el mal gusto que debían
dejar necesariamente las costumbres patriarcales de nuestros
progenitores. Una señora de tu jerarquía, con un palacio como el
tuyo, no podría menos de vivir con entera independencia dentro de
su propio hogar, sin tener que dar cuenta á nadie de las horas que
eligiera para entrar, para salir, para dormir ó para levantarse, lo cual
ya es algo tratándose de escrúpulos de estética. De manera, hija
mía, que puestos de un lado tan livianos inconvenientes, y del otro
tan colosales ventajas, no es difícil adivinar hacia qué parte se
inclinaría la balanza.
Calló otra vez doña Sabina, observó á Enriqueta y vió, no sin
alegría, que ésta iba levantando poco á poco los ojos hacia ella; que
la expresión de su boca estaba muy lejos de ser desdeñosa, y que
se disponía á romper su obstinado silencio.
—Vamos, hija mía—prosiguió la buena madre, en su deseo de sacar
todo el partido posible de tan favorable situación,—dime, á lo
menos, tu parecer con franqueza. ¿Qué juzgas de lo que te voy
diciendo?
—Juzgo, mamá—respondió al cabo Enriqueta sin pizca de encono,
—que estamos haciendo castillos en el aire; porque, después de
todo, ¿quién nos ha dicho que ese señor ha pensado en semejante
cosa?
La cual respuesta, si no era una explícita aprobación de las teorías
de doña Sabina, tampoco envolvía una repulsa manifiesta; y esto
era mucho tratándose de una boca como aquélla, que, para hablar
de don Romualdo, no había usado más que burlas cáusticas y
epigramas sangrientos. Podía creerse con algún fundamento que el
sermón aprovechaba. Toda la virtud de un justo, de un Dios, fué
necesaria para resistir la tentación del demonio que desde lo alto de
una montaña le decía, mostrándole el mundo:—«Todo esto será
tuyo si me adoras».
Frágil criatura Enriqueta; demonio doña Sabina, punto más sutil y
tentador que el del Evangelio, ¿qué extraño sería que la incauta
joven cayera de rodillas ante aquel ofrecido reino de placeres y
riquezas?
Abundando en esta misma opinión la diabólica mujer, y creyendo ya
en buena sazón el espíritu de su hija, juzgó llegado el caso de sacar
el Cristo que había de rematar su obra.
—No creo—dijo, respondiendo á la observación de Enriqueta,—que
me engañen ciertas apariencias; pero de todos modos, conviene
colocarse en lo más cómodo y proceder en ese sentido. Porque has
de saber, hija mía—y comenzó la habilidosa mujer á hacer dengues
y pucheros,—que hay razones que yo no he querido decirte nunca,
por las cuales ese enlace, además de hacer tu felicidad, sería para
tu padre y para mí... ¡el manto de la Providencia!
Y la muy taimada se limpió los ojos con el pañuelo.
Como era de esperar, aquellas palabras capciosas y aquellas
lágrimas vergonzantes llamaron vivamente la atención de Enriqueta.
—Pues ¿qué sucede?—exclamó alarmada.
—Sucede, hija mía—prosiguió entre sollozos doña Sabina,—que
hace ya mucho tiempo (y perdona á una madre cariñosa que te lo
ha venido ocultando por no afligirte), que el caudal de tu padre no es
más que una apariencia; que la suerte le ha vuelto la espalda; que á
duras penas y con indecibles fatigas, ha logrado hasta hoy ir
sosteniendo su casa; que los contratiempos, lejos de estar vencidos,
se van acumulando de día en día, y en fin, Enriqueta, que no está
lejano el en que, sin un milagro de Dios... ó el amparo de un hombre
como ése, nos veremos todos envueltos en la más espantosa
miseria.
Calló doña Sabina y ocultó la cara entre sus manos, lanzando de su
pecho angustiosos quejidos; y Enriqueta, que había ido devorando
cada una de sus palabras con la ansiedad fácil de adivinar, al oir los
sollozos de su madre inclinó su hermosa cabeza, y exclamó también
con lágrimas en los ojos y con verdadera angustia en el corazón:
—¡Pobre padre mío!
¡Cosa extraña! Ni éste ni su hija se habían acordado de doña
Sabina en el instante de saber que la miseria llamaba á las puertas
de aquella casa.
Después que hubieron pasado los primeros desahogos del
verdadero dolor de Enriqueta, y la parte de farsa que había en el de
su madre, disponíase aquélla á dirigirle la palabra, cuando entró una
doncella á decir que «el señor» esperaba en su gabinete á la
señorita.
Serenóse la joven cuanto pudo, é impresionada hasta el extremo
con aquel casual recuerdo de su padre, acudió rápida al
llamamiento, sin pararse á considerar la sorpresa que en su madre
causó el recado.
XI
Entrañable fué siempre el afecto que la hermosa joven había
profesado á su padre; pero desde la noticia que acababa de darle su
madre, se sentía unida á él por un nuevo vínculo y por una deuda
más.
Su vida dispendiosa y descuidada había contribuido sin duda á
precipitar la ruina de aquella casa, antes rica y envidiada; y aquel
dolor impreso de continuo en la fisonomía del atareado comerciante;
aquel sello de tristeza que la obscurecía, no eran el efecto natural
de una salud quebrantada por el trabajo, sino la huella de una gran
pesadumbre, hija quizá del temor de que algún día tuviera ella que
conocer la causa. ¿Qué sacrificio podría imponérsela que no
aceptase por salvar á su padre del abismo en que iba á caer? ¿Qué
valían, pues, los escrúpulos que aún oponía como excusas, si su
unión con el hombre que se los inspiraba podía devolver á su padre
la fortuna que éste había sacrificado al placer de su familia?
Con estas reflexiones, motivadas por la noticia funesta dada por su
madre y la repentina llamada de su padre, presentóse delante de
éste, cariñosa y expresiva como jamás lo estuvo.
—Hija mía—le dijo el pobre hombre, sentándola á su lado,—los
asuntos que personalmente te interesan, sólo contigo debo
consultarlos, antes de discutirlos en familia, si esto fuese necesario
también. En este supuesto, y con la formal protesta que te hago de
que, al someter á tu juicio ese asunto, te dejo en la más amplia
libertad de resolverle, te advierto que hace un instante estuvo en
este mismo gabinete un hombre que ocupa una gran posición social,
á pedirme tu mano.
—Y ¿qué le contestó usted?—dijo Enriqueta sin mostrarse
sorprendida del suceso, ni más ni menos que si le esperara.
—Que te haría saber la pretensión, y que tú resolverías.
—¿Pero usted no ha formado juicio alguno?...
—Supongamos que no.
—¿Ni hay siquiera una razón por la cual pudiera usted desear que
yo aceptara ese pretendiente?
—No hay razón para mí que alcance á obligarme á violentar tu
voluntad, ni siquiera á influir en ella, en asunto tan importante.
Si, como no lo dudaba Enriqueta, la noticia que tuvo por su madre
sobre la triste situación de la casa, era cierta, su padre le estaba
dando otra prueba más de cariñosa abnegación, prueba que
merecía de su parte un esfuerzo de voluntad para corresponder á
ella dignamente. Y en tal propósito, y sin detenerse á considerar que
en lances de tanta transcendencia es mal consejero el entusiasmo,
contestó sin vacilar:
—Dígale usted que sí.
—¡Cómo!... ¿sin saber aún de quién te hablo?
—Lo presumo: ¿no es del famoso indiano don Romualdo?
—Del mismo, en efecto. Pero ¿tú le conoces?
—De fama y de vista.
—Bien; pero ignoras de dónde viene, qué ha sido, qué es y, según
sus antecedentes, qué podrá ser en adelante.
—Eso no es de mi incumbencia, papá. Me dice usted que resuelva,
y resuelvo que sí.
Como aquél que ve visiones se quedó don Serapio al oir hablar de
este modo á su hija. No había mostrado la menor vacilación, ni un
reparo, ni un escrúpulo. El demonio de la ambición la dominaba
también como á su madre: jamás lo hubiera creído en aquel corazón
tan sensible y tan noble en apariencia. Por el vano afán de unas
cuantas joyas, no le aterraban los riesgos de lo desconocido. Este
desencanto le afligió en extremo, como padre cariñoso; pero,
preciso es confesarlo, no dejó de animarle como comerciante
necesitado. Las buenas tragaderas de su hija hacían la tramitación
más fácil y el resultado más claro, supuesto que estaba decidido á
no sacrificarla á los apuros de la casa.
Y entre tanto no reparaba el bendito de Dios que sin estar también
él devorado, aunque en otra forma, por la misma sed de oro, no
hubiera tomado en serio la pretensión del indiano sin preguntarle en
seguida todo aquello que, en su concepto, debió preguntar
Enriqueta antes de resolver afirmativamente la demanda; ni hubiera
transmitido ésta á su hija sin poder añadir en seguida: «me consta
que el pretendiente es hombre honrado y que honradamente ha
ganado lo que posee». Por eso no cayó en la cuenta de que las
últimas palabras de Enriqueta, si parecían el reflejo de un corazón
frío y metalizado, también podían tomarse como una amarga
censura á la irreflexión y la ligereza despiadadas con que un padre
colocaba á su hija en la necesidad de elegir á ciegas entre la muerte
y la vida.
Pero esto no podía leerlo don Serapio en la respuesta, porque había
hecho en el asunto cuanto debía hacer; es decir, respetar ciertas
particularidades de aquel hombre que, siendo tan rico y tan
espléndido y, sobre todo, tan considerado en el pueblo, no podía ser
cosa mala; y, en cambio, podía resentirse de una fiscalización
impertinente que diera por resultado una brusca retirada en el
momento en que más falta le hacía su amparo. De todos modos, si
le engañaban las apariencias, ya se iría viendo poco á poco, antes
de que fuera imposible evitar los peligros de una equivocación.
Tal fué el criterio de don Serapio en aquel asunto delicado; pero
como ni tú ni yo, lector benévolo, estamos llamados, que se sepa, á
sentar jurisprudencia en la materia, dejo la digresión y vuelvo al
asunto.
—De manera—prosiguió el padre, acentuando mucho sus palabras
y observando el efecto que causaban en su hija,—que puedo decir á
ese señor que, por tu parte, aceptas gustosa.
—Gustosísima,—añadió Enriqueta.
—¿Sin el menor recelo siquiera de que acuda á tu memoria ni la
sombra de un recuerdo más agradable?...—insistió don Serapio,
creyendo, con esto, quedar bien cumplido con el último de sus
escrúpulos de conciencia.
—Sin el menor recelo... ni aun de esa sombra.
—¿Luego no hay más que hablar sobre el asunto?
—Absolutamente nada, por mi parte.
Y los dos se despidieron y se separaron: el padre admirado de la
despreocupación de la hija, y la hija asombrada de la buena fe de su
padre.
Don Serapio bajó al escritorio, y llamando al viejo dependiente,
volvió á decirle:
—Abra usted una cuenta á don Romualdo Esquilmo.
Pero esta vez no le dió contraorden; antes bien, llegóse á la caja,
sacó el paquete sellado, recontó y clasificó los valores que contenía,
y dijo al dependiente, que le observaba con impasibilidad, después
de haber escrito el encabezado de la cuenta:
—Abónele usted, por entrega que me hace hoy en efectivo y letras
que me endosa, aceptadas en esta plaza, reales vellón...
—Reales vellón...—repitió el dependiente pluma en mano.
—Un millón doscientos treinta y dos mil.
—Un millón doscientos treinta y dos mil,—murmuró el tenedor de
libros apuntando en el suyo aquella cantidad.
—Nada más,—dijo luego el comerciante recogiendo los valores del
indiano.
—Nada más,—repitió el dependiente cerrando el libro, después de
haber colocado cuidadosamente una hoja de papel secante sobre lo
recientemente escrito.
—Ya habrá usted comprendido—añadió don Serapio á media voz,—
que la situación de la casa ha mejorado mucho en pocas horas.
—Lo sospeché desde la primera vez que me mandó usted abrir esta
misma cuenta.
—Hay una Providencia, don Braulio.
—Pues bendigámosla, señor don Serapio.
Y el uno volvió á su puesto con la misma impasibilidad que cuando
acababa de demostrar con números que la casa estaba hundida, y
el otro á la caja, en la cual guardó el caudal ofrecido por la
Providencia.
Entre tanto, Enriqueta informaba á su madre de todo lo tratado y
acordado con su padre.
—Ya lo ves, hija mía... ¡La Providencia divina!—exclamó ebria de
gozo, loca de entusiasmo doña Sabina.
Es maña ya muy vieja ésa de atribuir á la Providencia todo cuanto
nos favorece y nos halaga, aunque sea inicuo, y de imputar á la
desgracia lo que nos humilla y desconcierta, aunque lo tengamos
bien merecido.
XII
Cuatro días después de lo referido en el capítulo anterior, la casa de
don Serapio volvía á presentar el aspecto de sus mejores tiempos.
En el escritorio no cesaba un instante el ruido seductor de la
moneda; montones de ella aparecían en mesas y tableros con la
matemática regularidad de un ejército en parada; y al comenzar el
desfile, con la misma iban pasando á acuartelarse en la insondable
caja que, en menos de tres días, se tragó, contantes y sonantes, no
menos de cien mil pesos. Años hacía que en aquel rincón del
mundo no se había visto tanto dinero junto. Don Serapio lo palpaba
y no lo creía. El achacoso comerciante parecía haber rejuvenecido
medio siglo en media semana. Su aire era más suelto, su mirada
más viva, su color más animado; daba tal cual golpecito sobre el
hombro á su dependiente de confianza, quien ¡para que se vea
hasta qué punto era chocante la revolución que allí se había
verificado! pagaba con una sonrisa verdadera cada caricia de su
principal; los dos dependientes se permitían entre sí ciertos
equivoquillos, aunque á media voz; y hasta el almacenero, cuando
subía con algún recado, tarareaba unas manchegas ó silbaba el
himno de Riego. Aquello parecía un contagio de misteriosa
enfermedad: todos se sentían atacados de ella, y sólo don Serapio y
el tenedor de libros conocían las causas.
¡Pues no les digo á ustedes nada de cómo andaban los ánimos y las
cosas por la habitación! Doña Sabina era un argadillo; Enriqueta se
reía sola; las doncellas andaban en un pie, y la cocinera no daba
golpe sin romper un cacharro, asombrada de ver que su señora,
lejos de echarla un sermón por cada siniestro, la decía por todo
desahogo:—«Ande usted, que rica es la orden».
Porque es preciso que el lector entienda que no se trataba ya,
únicamente, en el escritorio de una lluvia de talegas, como caídas
del cielo, ni en la habitación del próximo ingreso en la familia de un
hombre «poderoso»: es que éste había sido ya presentado á su
futura, y había comido «en la casa», y el padre y la madre y la hija
habían convenido sin dificultad en que, «después de bien tratado y
ataviado, el novio era hasta simpático, y que no tenía maldita la
comparación con Fulano, ni con Zutano, ni con Perengano, que
evidentemente eran unos groseros, palurdos y asquerosos»; y había
habido lo de «tonta hubieras sido en pararte en remilgos, ¡qué
ganga te perdías!» y lo de «la verdad es, mamá, que no debe uno
pagarse de impresiones á lo lejos», ó «te digo que nos echamos tu
madre y yo un yerno, y tú un marido, que no le merecemos».
Por un descuido se le ocurrió una vez á don Serapio decir:
—Para que la dicha fuera completa, no nos falta más que conocer
algunos antecedentes de él; porque aunque necesariamente han de
ser buenos, esto de tener uno con qué tapar la boca á cuatro
maldicientes...
—¿Y por respeto á esa canalla—le objetó doña Sabina,—habíamos
de ofender la delicadeza de una persona tan respetable con
preguntas impertinentes?
—Lo cierto es—indicó Enriqueta,—que tratándose de una persona
tan delicada como ésa, no es muy cuerdo ir á molestarle con tales
menudencias.
—Naturalmente, mujer—volvió á decir doña Sabina;—sino que tu
padre algunas veces... Figúrate si él, resuelto á decirlo, no nos lo
hubiera dicho ya. ¿Se calla? Pues eso prueba que no tiene para qué
decírnoslo.
—¿Y lo dudo yo acaso?—replicó don Serapio.—Sólo que hubiera
preferido... pues... ¡Si sabré yo lo que ciertas cosas ofenden dichas
al tunturuntún y sin venir á pelo!
Ni más ni menos se había hablado, ni se volvió á hablar en aquella
casa, de semejantes pequeñeces.
XIII
Pasaron los días, y continuó don Romualdo frecuentando el trato de
la familia, y ésta volvió á abonarse al teatro y á presentarse en los
paseos; pero esta vez acompañada del pretendiente, á quien miraba
doña Sabina con ojos tiernos, volviéndolos después al público como
para decirle:—«¿Ves cómo al fin esta ganga me la llevé yo?».
Enriqueta escuchaba, así en el palco como en medio de la marejada
del paseo, con los ojos lánguidos, la boca sonriente y las manos
entre el varillaje de su abanico, las ternezas que sin descanso le
soltaba á la oreja su futuro; el cual, al ver el efecto que sus palabras
causaban, al parecer, en su hechicera novia, alargaba el hocico,
chupábase la lengua, se rascaba la peluca, y más de una vez dejó
caer sobre su tersa pechera, sin percatarse de ello, larga, ondulante
y cristalina hebra, como un niño en la primera dentición.
Es, pues, indudable que el sacrificio de Enriqueta había tenido ya su
galardón en el notorio placer con que á la sazón le aceptaba.
Téngalo por consuelo el lector que la hubiere compadecido.
Con las dichas exhibiciones, el runrún del público llegó á tomar gran
incremento, en especial entre las mujeres de tono. «Que al fin le
atrapan; que el inocente, que el incauto; que la gazmoña, que la
embustera, que la dengosa; que su madre, que serpiente, que
víbora, que lagarta; que su padre, que la necesidad, que los apuros;
que por algo quitaron de en medio al otro pobre; que si vende, que
si hipoteca á su hija para levantar fondos; que si judío, que si
bribón...».
Pero llegó el día en que doña Sabina se echó á la calle en
deslumbrante arreo, y comenzó, casa por casa, á anunciar, en todas
las visibles de la ciudad, el casamiento de su hija con el señor don
Romualdo Esquilmo; y ¡Virgen de la Soledad! ¡La tormenta que se
armó desde aquel instante! Que el novio era un cerdo y además un
ladrón; que había estado en presidio; que, por no tener nada suyo,
hasta llevaba postizos el pelo, los dientes, media nalga y toda la
nariz; que olía mal y no podía verse limpio de sarna; que de un
momento á otro le embargarían el caudal y le enviarían á Ceuta, de
donde se escapó para ir á América...
—Luego—dirá el sensible lector,—algo se sabía de la vida y
milagros de ese hombre.
—Ni una palabra—digo yo.—En aquella ciudad se decía todo eso y
mucho más de cada indiano rico y pretendiente, en cuanto dejaba
de mariposear y se fijaba en una sola mujer para casarse con ella.
Si esto era envidia, yo no lo sé; pero es lo cierto que hasta el
momento del parte oficial, todo se volvía elogios para el candidato
tan vilipendiado después: para caridad, parece demasiado fuerte;
para justicia seca, faltaban á menudo las pruebas. Por de pronto era
una costumbre, ó más bien una necesidad de raza.
Y adelantando siempre el proyecto á despecho de las
murmuraciones, como nave bien regida entre fieros huracanes, llegó
la ocasión de encargarse las galas á París, y la de hacerse, de
público, su inventario.
Desde el cándido de terso moaré, de desposada, hasta el severo y
rico de pesado terciopelo, pasaron de dos docenas los vestidos;
midióse por celemines la pedrería, y contáronse á montones los
encajes de Flandes más preciados. Jamás se vieron en el pueblo
nupciales agasajos más suntuosos; y puestos en exhibición durante
quince días en adecuado anfiteatro, con la escolta de otros cien
presentes de costumbre, fueron la admiración... y la envidia de
todas las visitas de la casa, y el objeto de largos, escrupulosos
comentarios en toda la ciudad.
Mientras esto sucedía, un enjambre de trabajadores de todos los
oficios imaginables, tumbaba los tabiques de tres habitaciones
corridas de la mejor manzana del barrio, y transformaba el inmenso
espacio resultante en fantástica morada, en la cual lo gótico, lo
árabe y lo pompeyano se disputaban la primacía, y los mármoles, el
oro, los estucos, andaban tirados por los suelos y estrellados en las
paredes como si fueran miserable barro de cazuelas. Todo, por
supuesto, en calidad de interino, porque ya se había encargado á
Roma el plano y á París el ajuar de un palacio, punto menos
maravilloso que los de Aladino.
Y corriendo los días, llegó el de los contratos, según los cuales don
Serapio entregaba su hija con el dote profuso que recibió de la
naturaleza, y la aceptaba don Romualdo muy gustoso, como lo
demostraba dotándola en un miserable par de milloncejos y algunas
otras frioleras que no enumero, porque no digan ustedes que me
meto en lo que no me importa.
Todo era, pues, miel sobre hojuelas en medio de aquel grupo
venturoso. Ya no sabía reñir doña Sabina; Enriqueta estaba
aturdida, electrizada, y don Serapio se sonreía hasta con el facistol
del escritorio. Cuanto sus ojos y sus imaginaciones abarcaban, era
del color de las auroras primaverales. No había pena que no se
olvidara, ni pecado que no se perdonase; y la sonrisa alcanzaba tan
allá como los recuerdos, habiéndolos para todo... menos para el
pobre expatriado que andaba por el otro mundo conquistando una
posición social para merecer á su prima, y de quien el mismo don
Serapio no sabía una palabra desde seis meses antes, ni se curaba
maldita de Dios la cosa de dos semanas atrás.
Para dos días después de los contratos se señaló la boda; y como
en este paréntesis, de meros preparativos íntimos, no tiene el
historiador nada que hacer, paréceme oportuno aprovecharle para
subsanar el olvido de la familia, dedicando un capítulo al benemérito
muchacho que quizá estaba á la sazón en la creencia de que su
prima le esperaba, como ella se lo había prometido, en su casa... «ó
en el cielo».
XIV
La acogida que se le hizo en la Habana, donde desembarcó, fué
todo lo afectuosa que era de esperar de la recomendación que á la
mano llevaba de su tío. Entre éste y la persona que debía acogerle
había grandes y antiguas relaciones de amistad y mercantiles; y así
fué que, no bien hubo pisado el suelo habanero, halló ventajosa
colocación sin salir de la misma casa en que había entregado su
carta credencial.
Con el carácter de César y los muchos conocimientos que llevaba
adquiridos en el comercio, no le fué difícil obtener la confianza de su
nuevo protector, á cuyo lado era indudable que hubiera hecho
fortuna «por sus pasos contados».
Pero es preciso no olvidar que César llevaba en su pecho un aguijón
que le obligaba á caminar de prisa, y en su imaginación una luz
extraña que le hacía ver como interminable todo plazo por breve que
fuera. Pensaba en su prima, y temía no hallarla esperándole en el
mundo terreno, si tardaba él mucho en volver á su patria.
Por otra parte, era agradecido; y no queriendo regatear el tiempo y
la ganancia á una persona que tanto le protegía, pasó cuatro años
adquiriendo mucho, pero no todo lo que necesitaba en su afán de
«acabar pronto».
Al fin su impaciencia febril pudo más que sus miramientos. Recogió
sus utilidades; púsolas, como quien dice, á una carta, en una
especulación de la casa; tuvo la suerte de duplicarlas, y conociendo
su protector, por éste y otros rasgos, el gusanillo de la prisa que le
roía, y no desconociendo ni menospreciando las buenas dotes que
adornaban al impaciente, propúsole pasar á Méjico, donde podría,
con la recomendación que él le diera, hacer doble negocio en la
mitad del tiempo, si bien con triples fatigas.
Aceptó César con entusiasmo; diéronsele eficaces
recomendaciones para una casa de Veracruz, cuyo principal
negocio era la explotación de dos minas de plata, y allá se fué con
sus ilusiones y sus ahorros.
No se le había engañado en las promesas. Dos años le bastaron
para llegar á reunir un capitalejo, limpio y morondo, de cuarenta mil
duros.
En sus expansiones amistosas no ocultaba á nadie el afán que le
devoraba; pero jamás declaró su verdadera patria ni sus
parentescos en ella, en previsión de un lance desgraciado que
pudiera obligarle un día á buscar un porvenir por vías más humildes

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The Video correlation guide can be downloaded from the Instructor

I. Reasons for Going International (see slide 6-7)

Management in Action: Global Economic Downturn Causes Mexico’s Cemex to Retrench

II. Strategic Formulation Process

III. Steps in Developing International Strategy (see slide 6-11)

3. International competitor analysis is the most important area for environmental

Under the Lens: India Says No to Foreign Ownership of Supermarkets

On Wednesday, Finance Minister Pranab Mukherjee said the decision to allow

E-Global or E-Local? (see slide 6-28)

Teaching Resource: Have students visit a very interesting Website—Franchise International

Step 6: Decide on Strategy (see slide 6-39)

Teaching Tip: Have students visit the Website http://www.business-in-asia.com/vietnam.htm to

Chapter Discussion Questions

As a reactive response, companies go international in order to respond to challenges from

3. Give examples of the impact of the Internet on small business.

As domestic growth declines because of slow-growth economies, opportunities abroad look

Environmental scanning is the process of information gathering and forecasting relevant

8. Discuss the relative advantages of globalization versus regionalization.

Information that may be helpful to completing this exercise can be found at

By reviewing the above Websites, enough information can be gained to make a

End-of-Chapter Case: Search Engines in Global Business

Early Difficulties with the Government

Tigers, Horses, Monkeys

Cutting the Tall Poppy

1. Visit LandsEnd.com, LandsEnd.de, and LandsEnd.co.jp. Based on an analysis of the three

A. What do you see as the principal opportunities in a career in international business?

Additional Stimulation Discussion Questions

6. Describe the primary indicators that a firm’s strategy is working.

9. Continue Question 8 by performing an environmental scan of the Korean automobile

Purpose: The purpose of this exercise is to develop a better understanding of how

Procedure: Select one Annual Report from a company headquartered in Asia,

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