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

Foreign Competition United States needs to respond Expansion into foreign markets Larger market share Increased Technology Advances in Communication Globalization Sound Business Strategy

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

 Power distance (PDI) – degree power is expected to be distributed equally.  Individualism (IDV) – individual rights versus loyalty to a group.  Masculine (MAS) – value performance (masculine) or more nurturing quality of life (feminine).  Uncertainty avoidance (UAI) – extent they rely on rules and norms to help predict the future. Low avoidance values diversity.  Long-term orientation (LTO) - degree individuals engage in future-oriented behaviors; such as planning, invest in future, delay gratification. Hofstede Model for Comparison of Different Cultural Values Cultural Values

 United States, China, Germany & Israel Examination of 4 different cultures Four Cultures

Expanding Leadership Development Balk Inc.

 Prepares high potentials for leadership positions in a corporate setting  Immersive Learning approach  Blended online and onsite program The BALK Program Balk Inc.

 Mission  Supply the business sector 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  Threats  Competition from local institutions  Changes in political climate Risks and Benefits of Global Expansion Balk Inc.

BALK, CHINA China

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

 Giving Opinions Cultural Challenges 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  Marketing and 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

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

BALK, GERMANY Germany

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

 Low Power Distance  Highly Individualistic  Masculine  Uncertainty Avoidant  Short-term Orientation Culture Considerations Germany Hofstede 5D Model Score Power Distance25 Individualism67 Masculinity/Femininity 66 Uncertainty avoidance 65 Long term orientation31

 Challenge to authority, expertise  Direct, honest, communication  Detailed planning and direction Cultural Considerations in Practice 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, tolerated  Resources unavailable during “off hours”  Resources out of office for long durations Labor Laws in Practice Germany

BALK, ISRAEL ISRAEL

 Living in a culture of haste  Light train in Jerusalem  Very westernized Israeli culture Israel

 The Knesset  Democratic Society  The Jewish state is 65 years old Israeli culture Israel

Jerusalem & Tel-aviv A combination of the old & the new Israel

Workforce: 77% have secondary education (2 nd ) in world 24% have academic degrees (3 rd ) in world 12% have advanced degrees Highest per capita of engineers (135/10K) Highly educated Society Israel Einstein at the Hebrew University

Family & Extended Family are celebrated Israel

 Low Power Distance  Individualistic  Masculine  Uncertainty Avoidance  Long-term Orientation Culture Israel National Cultural Dimensions Score Power Distance - PDI13 Individualism - IDV54 Masculinity - MAS 47 Uncertainty avoidance - UAI 81 Long term orientation - LTD-

 Comparison with United States  Power Distance is flatter  Individualism is not as high  Masculine and Feminine traits  Uncertainty avoidance is balanced Hofstede’s model Israel

Hofstede’s 5D Model Comparison Conclusion

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

Questions and Answers… Q & A