By: Kevin Ferrone Bob Cardarelli Linda Carter Globalization Expansion of Balk Inc.

Sound Business Strategy Globalization Why & How?

 Multinational (MNC)  1980 – 1K US organizations  Today – 20K US organizations  Companies that Import/ Export in US  1980 – 3K US organizations  Today – 90K US organizations Statistics Globalization

1 Create Urgency 2 Form a Powerful Coalition 3 Create a Vision for Change 4 Communicate the Vision  Kotter’s – 8 Step Change Model Managing the Change of Expansion Expansion 5 Remove Obstacles 6 Create short- term wins 7 Build on the Change 8 Incorporate into Corporate Culture

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. More Details Later(Theories) Theories

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. More Details Later(Global Leader) Competencies

Expanding Leadership Development BALK Balk Inc.

 Prepares high potentials for leadership positions in a corporate setting  Learning approach  Created by top executives and business school professors  Simulates real-world business environment  Small student teams, individualized instruction, personalized coaching  Focus on individual achievement and effective collaboration  Delivery  Blended online and onsite program The BALK Program Balk Inc.

 Mission  Supply the community businesses with “ready now” leaders  Vision  Bridge the gap between education and employment  Prepare learners stand out and excel in the workplace.  Values  “Recognized as the premier source of leadership development” Mission, Vision, Values Balk Inc.

 Opportunities  Revenue growth and business investments  Capitalize on globalization trend  Recognition as domain expert, thought leader  Threats  Competition with local institutions  Changes in political climate  Unforeseen external circumstances Risks and Benefits of Global Expansion Balk Inc.

 OD projects are managed transparently and predictably  Plans are communicated, clarified, and modified as needed  Adequate resourcing is allocated  Decisions are based on data, not intuition  Standards of excellence are maintained Organization Development Strategy Balk Inc.

 Establish reasonable growth objectives and timelines  Track progress against milestones  Report status accurately, regularly  Be flexible and prepared to adapt changing circumstances Timelines and Progress Balk Inc.

 TBD Challenges of Global Expansion Balk Inc.

 73% of world’s purchasing power is outside of USA  USA is no longer self-sufficient  Diversity = Stability  We already compete globally A Case For Globalization Balk Inc.

BALK, CHINA China

 Challenges for a U.S. company in China  Cultural  Operational  Leadership Intervention Overview China

 Giving Opinions Cultural Challenges China

Weekend Activities China

Party China

The Boss China

Handing Problems China

 Contracts  Signed contract is start of the negotiation  Trust is more important than signed agreements  Difference in conflict management lead to expectation discrepancies  Team Management  Clarify Roles  Offer multiple (less formal) avenues for feedback  Company culture and mission  They will look different! Culture – So What? China

 The Internet  Blocked websites & slow access to servers outside China  Asynchronous communication using the cloud is difficult  Distribution Channels  Zhongjie (middle man)  Understand hierarchy  B2C is difficult and slow unless you have big $$$  The Government  Setting up can be long and unclear (prepare extra time and $)  “Rule by law” not “Rule of Law” Operational Issues China

 Sign 3 contracts with different vendors to get 1  Lots of synchronous communication with home office is necessary  Relationship(Guanxi) building is much more important for selling the product or service Operational Issues – So What? China

 Must have both US, and local management  Kotters 8 steps for changing an organization (very applicable for global leadership development  BALK competencies of a global manager in China The Intervention – Preparing the leadership China

Germany BALK Germany

 Challenges for U.S. company in Germany  Cultural  Labor Laws  Market Overview: Germany Germany

 Low Power Distance  Highly Individualistic  Masculine  Uncertainty Avoidant  Short-term Orientation Culture Germany

 Challenge to authority, expertise  Direct, honest, communication  Detailed planning and direction Cultural Issues Germany

 No employment “at will”  Regulated work week  Time out of office  Parental leave  Mass layoffs require government approval Labor Laws Germany

 Performance issues are unresolved  Resources unavailable during “off hours”  Resources out of office for long stretches of time Labor Issues Germany

Gender Inequality Germany

National Cultural Dimensions Score Power Distance13 Individualism54 Masculinity / Femininity 47 Uncertainty avoidance 81 Long term orientation- Hofstede Model Israel

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. More Details Later Israel

ChinaGermanyIsrael Revenue Cost of Goods Gross Profit Total Expenses Pre-Tax Profit Pre-Tax Profit as Percent of Revenues 64.6%59.6%60.2% Comparison & Contrast of the Different Countries Comparison

Questions and Answers… Q & A

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. Will decide later if we want these. References