Ch 12 Decision Making and Controlling

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Ch 12 Decision Making and Controlling Dell
in Europe - In mid-1990s, 2.5 share, loss -
Still use direct sales model - Now one of the
fastest growing PC makers Universal Studios
Japan - Want an authentic Am experience - Also
expect catering to its culture - Thousands of
decisions were made
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Decision-Making Process A Comparison Tend
to be centralized More Decentralized US UK Fra
nce Sweden Germany Japan Ringisei Decision
making by consensus Tatemae Do right thing
according to the norm Honne What one really
wants to do
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13 Factors affecting decision-making
authority Table 12-1, p. 341 Encourage
Centralized OR Decentralized
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Decisions for Attacking the Competition GM To
be a major player worldwide - Moved closer to
the final customer Opening up new facilities
overseas - Offered well designed and efficient
cars - Tried to tap the upper-level buyer BMW
Move down the line to small cars
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• Types of Control
• Internal Focus on what it does best
• External Find out the needs and respond
• Table 12-3 Cultural Impact on Control
• Direct Face-to-face or personal meetings
• - Magt. meetings
• - Visits to overseas sub
• - Staffing practices
• - Org. structure
• Indirect Reports, written communication

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Approaches to Control Financial tools
are universal. Differences US
Europe More quantifiable aspects More
qualitative More precise plans, budgets More on
behavior Large central staffs More
expatriates More centralized More
decentralized
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Control Techniques in 3 key areas 1. Fin
Performance Profit and ROI Affected by currency
devaluation / revaluation Financial
Manipulation Transfer Prices - Move profit to
lower tax rates country - Moving cash to strong
currency country
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2. Quality Performance Differences in Japan
and US Japan US - Push quality data down -
Aggregate the data - Build early warning sys -
Slower to handle - Work more closely with
suppliers than US - Magt. Attitudes
Overdoing Good enough
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3. Personnel Performance Differences
between Japan and US - Periodic appraisal of
work performance Obj is same, Effective may
vary - How personnel control is
conducted Japan Successful, credit to
group Unsuccessful, individual responsible -
How rewards and monitoring are handled Overall,
more similarities than differences