Enterprise without Borders Volunteer Classroom Visit (90’)

Context Enterprise without Borders is a JA-YE company program for Secondary Level students. It will help give you an understanding of the international business environment in which we all live today You will also have the chance to develop a business enterprise working with other students in schools in other countries so you can also learn more about their cultures and how to collaborate together Accenture, a global consulting and outsourcing business, is the primary corporate sponsor of the program

Enterprise without Borders Programme European Partners Regional Partner

Introductions Introducing our volunteer for today

Themes of Globalisation What is globalisation? How has the world been changing in the last 10 or so years and how is this affecting business? What are some of the trends for the future?

Examples of Multinational/Global companies

Why did they go GLOBAL?

What is Globalisation? It is the process by which the world is becoming increasingly interconnected as a result of the acceleration of international trade and cultural exchange. From an economic perspective... It is the ‘reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor’ (United Nations definition) Globalisation has been taking place for hundreds of years, but has speeded up enormously over the last twenty years

Why is Globalisation accelerating? A number of important reasons.... Picture credit - ESA

Why is Globalisation accelerating? Bringing down barriers to trade across the world International trade in manufactured goods increased more than 100 times (from $95 billion to $12 trillion) in the 50 years since China's trade with Africa rose sevenfold during the period alone

What other impacts is Globalisation having? Resources Innovation People and Skills Money New Consumers The Multi-Polar World Positive and negative impacts

How has Globalisation affected growth of countries? Source: Economist Intelligence Unit A changing leaderboard – the Worlds biggest economies 2030F United States China Japan India Germany United States Japan Russia Germany France China United States India Japan Brazil Russia United Kingdom France Brazil Italy United Kingdom China Brazil India Russia Germany United Kingdom France Mexico Which country has the largest economy in the world? Which economies are growing fastest?

Still a wide range of income per person World map showing countries above and below the world GDP (PPP) per capita, currently $10,500. blue above world GDP (PPP) per capita, orange below world GDP (PPP) per capita Source: CIA World Factbook The world’s top 10 richest people in 2010 (worth a combined $340 billion) included 2 Indians, 1 Brazilian and 1 Mexican. China has 477,000 millionaires (4 th highest in the world) and India 127,000 United States still leads with 2.87 million millionaires, followed by Japan's 1.65 million and Germany's 860,00.

What does “going global” mean to business? ?

The Growth of Multi-National Companies (MNCs)

Different business models in working globally Balancing global/regional/local Multi-Local Model Decentralised, independently run markets Local planning and execution of global brands Local manufacturing and supply chain footprint Regional/ Functional Model Regional management units Regional integration of supply chain/back office Global model Shared services established for back office functions Global planning and local execution of global brands Super Global Super Local Model Networked business models across internal and external boundaries Degree Of Centralisation ILLUSTRATIVE

Collaboration between companies – Understanding JVs "...a win /win collaboration between two or more entities, sharing resources to solve common problems, build new opportunities, and achieve goals.“ Combining capabilities, using each others networks and market presence, reducing competition Different models from fully combined operations and finances, to looser partnerships..but must be fully declared Examples – some successful, others less so

Cultural Awareness Understanding Cultural perceptions - understanding differences as well as similarities across countries Understanding different cultural dimensions and why this is relevant for business Quiz to see how well you recognise cultural norms

Why are cultural differences important? In an ideal world... the policemen would be English the car mechanics would be German the cooks would be French the fashion designers would be Italian, and the bankers would be Swiss In a living hell... the policemen would be German the car mechanics would be French the cooks would be English the fashion designers would be Swiss and the bankers would be Italian Is this a fair representation of cultural differences?

Ways of understanding cultural differences Most recognised way of understanding – Prof Geert Hofstede and his index of countries based on 5 key dimensions Power Distance – how hierarchical a society is – is power always from the top or distributed evenly Individualism – is individual success more important than group success and are individuals bound in to tight groups, e.g. strong family vs loose ties between people Masculinity – is the culture typically assertive and task oriented or more collaborative and relationship oriented Uncertainty Avoidance – is the culture less accepting of uncertainty, uses reason vs emotion, low risk-aversion and tolerance of different views Time Orientation – is behaviour more about saving for the future or spending today, low concern for time, emphasis on long term goals

Regional cultural comparisons Japan, KoreaNorth America, UK Nordic/ North Europe Latin/South Europe Power Distance HighLow High MasculinityHigh LowHigh IndividualismLowHigh Low UncertaintyLowHigh Low Time Orientation HighLow High

Cultural Understanding Quiz Work in pairs Take a blank sheet of paper and a pen/pencil Read each question and mark the option you consider correct If you and you peer have different opinions, discuss and agree on the right option You have three minutes to answer the questions 1-6 and another three for 7-12

Cultural Understanding Quiz 1.Which country indicate most values collective networks and community vs individuality – Hungary, Greece, Denmark, Ireland? 2.Which group are most tolerant of silent breaks in conversations – Germans, British, Italians, Scandinavians? 3.In which country can laughter most often be seen as a sign of confusion, insecurity or embarrassment – Spain, Italy, Japan, United States? 4.Which physical gesture, commonly recognised in the western world as an affirmative, can be seen as offensive in places such as Russia, the Middle East and even parts of Greece – clapping your hands, the "thumbs-up“, a downward nod, an open smile? 5.In the UK, to compromise is seen as a positive sign of both parties winning – true or false? 6.In which cultures do people most look for consensus and involvement in making decisions - Nordic countries, Mediterranean countries, Germanic cultures, Eastern European countries?

Cultural Understanding Quiz 7. In which country would it be least acceptable to go above your superior or openly speak out – France, Russia, Germany, Portugal 8. In which cultures is being boisterous in the streets and public places most widely accepted – Mediterranean cultures, Nordic cultures, Anglo-Saxon cultures 9. In which country if you tread on someone’s foot would you expect them to say sorry – Japan, Brazil, Greece, England? 10. Where can be up to 30 minutes late and still be on time – Italy, Sweden, Czech Republic, Switzerland? 11. Which country would you expect to kiss an acquaintance on the cheek three times – England, Greece, Poland, Netherlands? 12. Which country would you make sure the rules were followed and everything was explained clearly – France, Spain, Belgium, Italy

Cultural Understanding Quiz - Answers 1. Which country indicate most values collective networks and community vs individuality – Greece 2. Which group are most tolerant of silent breaks in conversations – Scandinavians 3. In which country can laughter most often be seen as a sign of confusion, insecurity or embarrassment – Japan 4. Which physical gesture, commonly recognised in the western world as an affirmative, can be seen as offensive in places such as Russia, the Middle East and even parts of Greece – the thumbs-up 5. In the UK, to compromise is seen as a positive sign of both parties winning – true 6. In which cultures do people most look for consensus and involvement in making decisions - Nordic countries

Cultural Understanding Quiz - Answers 7. In which country would it be least acceptable to go above your superior or openly speak out – Russia 8. In which cultures is being boisterous in the streets and public places most widely accepted – Mediterranean cultures 9. In which country if you tread on someone’s foot would you expect them to say sorry – England 10. Where can be up to 30 minutes late and still be on time – Italy 11. Which country would you expect to kiss an acquaintance on the cheek three times – Netherlands 12. Which country would you make sure you carefully explained everything leaving little room for doubt – Belgium

What does this all mean to you? What opportunities does globalisation offer to you? What skills will be most important to develop? How might I build those skills? What aspects do you find most interesting or most challenging?

What does this all mean to you? What opportunities does the globalisation offer to a person like you? What skills will be most important to develop? How might I build those skills? What aspects do you find most interesting or most challenging?

A person you may know Picture credit - Wikipedia

Group discussion - Skills for the future Divide into groups – quickly! Assign roles in the groups (who takes notes, who checks the time, who will speak for the group) Discussion topics: Think about yourselves 10 years down the road and how globalisation may have further impacted how we live and work Brainstorm in the team on what skills will be most needed for you to succeed in the global economy in the future Get the skills down to the few that could ‘make a real difference’ Complete the discussion within 7 minutes Be prepared to present your conclusions to the rest of the class

Key skills that businesses are now looking for Tolerance and respect for others Able to work in diverse teams Flexibility and adaptability A broad perspective Cultural understanding Building networks and relationships International Experience

Pulling it all together How do I engage further with the EwB program? What are the action learnings and next steps I can take?

Engaging further with the EwB program The EwB classroom visit today is one of three components to the program: 1. Classroom visits with volunteers to teach and discuss the themes of globalisation and how they are linked with the principles of EwB 2. The EwB website where students can make connections, promote their companies to find partners, and establish their collaborative businesses 3. The company challenge where they can enter their company in to the EwB challenge competition for the best EwB companies

The EwB Website

EwB Joint-Venture Partnership (JVP) A JVP is a partnership formed by two or more companies operating in different countries, each company controlling its own revenues and expenses, but with operations complementing each other, and working together on joint projects. JVP Business Models Import-Export Business Coordinated product/service development and Outsourcing Exchange visit with a business content EwB Joint-Venture Company (JVC ) A JVC is a closer working arrangement formed by two or more companies operating in different countries but combining parts of their operations and sharing responsibility for joint revenues and expenses. They could continue also to conduct their own business and control their own revenues and expenses outside the JVC. Ways of working together

In order to be recognized as an EwB Joint Venture Partnership (JVP) or an EwB Joint Venture Company (JVC), all partner companies must be JA-YE minicompanies FULLY registered on the EwB portal i.e. each participating company must have its EwB account and must be listed among the EwB companies on the portal. Ways of working together

EwB Case Studies

Action Learnings What have you most learned from the session today What actions might you take next and what help do you need