Chapter 2 Case Application (MOB)

Team Team 6 Chapter Case Write-up: Chinaza Maryanne Ejiofor  Donald Hardin Krystal Gilert !essi"a #u$has %ta"ia &ndre Mana$ement ' (r$anizational )eha*ior:

Chapter 2 Case Application 1: Out of Control

%ummary in relation to "hapter: The +(ut of Control, "ase is related to the "hapter in se*eral ays hoe*er. e ill summarize ho the issues presented in this "ase are dire"tly related to or$anizational "ulture/ "ulture/ &s a rief a"0$round1 a"0$round1 or$anizational or$anizational "ulture "ulture is the shared *alues1 prin"iples1 prin"iples1 and traditions1 and o*erall ays of doin$ thin$s that influen"e the ay or$anizational memers memers a"t/ 2n +(ut of Control, Control, the "ompany anted anted to try ne ays to redu"e "ost and a"hie*e a $reater portion of their industry3s mar0et share/ )y doin$ so hoe*er1 Toyota shifted its or$anizational "ulture to a less fa*orale one y their sta0eholders/ Thou$h all the dimensions of or$anizational "ulture presented in e4hiit 5- on p$/ 5 ere affe"ted y Toyota3s a"tions1 the primary dimensions affe"ts ere the "ompany3s staility due to dishonorale inno*ation and ris0 ta0in$/ Dis"ussion 7uestions: Using Exhibit 2-5 and the information from the case. escribe the culture at !o"ota #otor Corporation. $h" do "ou thin% this t"pe of culture might be important to a carma%er&

Toyota is a ell-re"o$nized "ompany ith the title of ein$ 0non as the orld3s lar$est "arma0er/ 2n order to ha*e a"hie*ed su"h a title1 Toyota has to ha*e 0ey *alues that are deeply held and idely shared y its employees/ )ased on the e4hiit 5- Toyota has an inno*ati*e "ulture that is team oriented hi"h allos them to remain stale e*en hile ta0in$ on ris0s/ This type of "ulture mi$ht e important to "arma0ers e"ause Toyota ons 88/9 per"ent of the "ar industry3s mar0et and despite their or$anizational "ulture shift due to poor inno*ati*e ris0 ta0in$ hen it "ame to uality1 other "arma0ers should find Toyota3s Toyota3s initial "ulture to e the reason for their lon$-term su""ess and $roth/ 'o( do "ou thin% a long-standing culture that had such a strong commitment to )ualit" lost its abilit" to influence emplo"ee beha*iors and actions& $hat lesson can be learned about organi+ational culture from this&

There "ould e se*eral reasons as to hy Toyota3s or$anizational "ulture "han$ed an its aility aility to influe influen"e n"e employ employee ee eha*i eha*iors ors and a"tion a"tionss "ould "ould e a lar$e lar$e fa"tor fa"tor in the

or$anization3s shift/ There are many dimensions to an or$anization3s "ulture and a fe of  them "ould ha*e lead to Toyota3s de"reased "onne"tion ith its employees/ ;rimarily1 attention to details is a ne"essity hen it "omes to uality assuran"e/ The de$ree to hi"h Toyota3s employees ere e4e"utin$ pre"ision1 analysis1 and o*erall payin$ attention to the uality "ontent of the "ar resulted in the depletion of the "ars they ere ma0in$ uality/ Hoe*er1 a la"0 of attention to detail "omes from the de$ree to hi"h the mana$ers of the "ompany fo"used on results or out"omes rather than ho the out"omes ere a"hie*ed/ 2f employees "reated a "ar and mana$ers ere the ones ho assured the uality of the "ar efore it as distriuted to dealerships1 and if the mana$ers are only dri*en y profit or $ains1 then the out"ome orientation of the "ompany is lo/ This is the  primary reason Toyota may ha*e lost its aility to influen"e its employee3s eha*ior and a"tions/ & lesson that "ould e learned from the Toyota "ase is that "ompanies should realize that sa"rifi"in$ uality or any other "riti"al fa"tors that "an affe"t ne$ati*ely the sta0eholders of your entity should e fully analyzed/ &lso1 the ris0s and out"omes should e e4amined and ei$hted to see is it orth doin$ and ho ill those ris0s and out"omes ill affe"t the "ompany in the future/ The o*erall lesson is $eared toards "ompanies and it tea"hes them that $ains should e a"hie*ed in a less ris0y ay in order for the or$anization to e su""essful and e4perien"e $roth/ o "ou thin% that it (as important for #r. !o"oda to apologi+e for the compan",s decisions& $h"&

We stron$ly feel that Mr/ Toyoda apolo$y as ne"essary and important/
There are many lessons that other or$anizations "ould learn from Tayota3s e4perien"es aout the importan"e of or$anizational "ulture/ We ha*e ro0en the lessons don y type of or$anization/ 2f a "ompany is a more stale "ompany1 they "ould analyze Toyota3s issue and note that thou$h their "ompany is more stale and mature1 they should ta0e on less ris0y inno*ati*e te"hniues or strate$ies to assure that they are 0eepin$ the or$anizational "ulture that alloed them to e"ome a mature and stale "ompany/

When it "omes to neer "ompanies1 they "ould analyze Toyota3s e4perien"es and understandin$ that estalishin$ an or$anizational "ulture that also enefits their  sta0eholders ill allo them to e an e4tremely su""essful "ompany in the future/ This is  e"ause "ompanies that ha*e a stron$ "ulture1 li0e Toyota1 ha*e a $reater "onne"tion ith their sta0eholders/ Whi"h allos for these "ompanies to oun"e a"0 hen they may fail due to unsu""essful ris0s= Chapter 2 Case Application 2: ressing Up

%ummary in relation to "hapter: 2n the "ase Dressin$ >p reader ere informed aout the e4ternal fa"tors that upper le*el mana$ement at Kohl3s too0 into "onsideration hen ma0in$ de"isions re$ardin$ future stores/ &s usinesses "ontinue to e4pand into ne mar0ets many industries ha*e  een for"ed to in"rease their "ompetiti*e strate$ies to attra"t "onsumers/ The retail mar0et already ein$ one of those mar0ets that is "ompetiti*e y nature1 ill e in"reasin$ this "ompetition to not only in"lude ne "ompanies ut to also in"lude ne methods for doin$ usiness/ 2n the "ase readers learned aout the de"ision upper le*el mana$ement ma0es hen desi$nin$ a ne store or produ"t/ The strate$y Kohl3s uses to attra"t its tar$et mar0et "onsist of ? major "omponents/ The first is to identify ho their tar$et mar0et is/ &s stated in the "ase their tar$et mar0et "onsist of omen eteen the a$es of 5 years to @ years/ The strate$y adopted  y Kohl3s then $oes into further spe"ifi"ation of their tar$et mar0et/ This spe"ifi"ity leads to them to tar$etin$ omen ho ha*e "hildren ith an annual household in"ome ran$in$ from A?1BBB to A91BBB/ The se"ond "omponent of Kohl3s "ompetiti*e strate$y is to fi$ure out hat their tar$et mar0et is shoppin$ for/ Kohl3s "ondu"ted mar0etin$ resear"h on its tar$et mar0et the +so""er moms, and e$an to desi$n and a"uire mer"handise that "atered to the needs of the tar$et demo$raphi"/ This resulted in the store "arryin$ "asual  rands li0e HealthTe41 !o"0ey1 >nion )ay1 and many others at lo pri"es/ Continuin$ to tar$et the +so""er moms, Kohl3s e$an to add more se$ments of items a*ailale at store lo"ations/ These additions in"luded home furnishin$ items1 dinnerare1 "oo0in$ tools/ The final "omponent in*ol*es sele"tin$ the store lo"ation/ <hou$h Kohl3s is a *ery ell-0non "ompany it doesn3t ne$ate the reality that "onsumers "an shop anyhere/ %o hen upper le*el mana$ement is "onsiderin$ lo"ations for a ne store they are *ery sele"ti*e aout its lo"ation/ With 0noled$e of its tar$et mar0et the "ompany uilds stores that are easily a""essile for +so""er moms/, Mana$ement "onsiders lo"ations y loo0in$ into here it is uilt1 ho far aay is if from the tar$et1 and hat stores are in "lose *i"inity/ 2deally the "ompany tries to stay aay from malls/ Throu$h analysis of the tar$et mar0et they understand that +so""er moms, ha*e little to no time and the hassles that "ome alon$ ith the mall mi$ht dissuade potential shoppers/ With this in mind Kohl3s tries to uild stores in poer "enters and strip lo"ations/ &s "ompetition "ontinues to $ro and e the for"e of attra"ts of "onsumers1 Kohl3s ill need to "ontinue its "urrent

tar$et mar0et strate$y/ The "ompany ill also need to adapt and "han$e ith the needs of the "onsumers and mar0et/ Dis"ussion 7uestions: According to the case (hat external trends did managers at ohl,s ha*e to deal (ith& /n addition to these (hat other external components might be important to these managers& 0ee Exhibit 2-2. 'o( might the" %eep trac% of changes in these components&

&""ordin$ to the "ase e4ternal trends that mana$ers at Kohl3s deal ith are addressin$ the needs of "onsumers as they relate to the $loal fashion orld/ ¬her e4ternal trend that mana$ement en"ountered as identifyin$ their tar$et demo$raphi" and lo"atin$ physi"al store lo"ation to e a""essile for them/ Demo$raphi"s is an important e4ternal "omponent for mana$ers/ Mana$ers must ensure that the tar$et mar0et is in the area  efore they e$in to uild a ran"h store/ Company mana$ers understand that their mar0etin$ strate$y and produ"ts mi$ht not appeal to other demo$raphi"s and ould "ause the "ompany lost money1 effort1 and time/ %o estalishin$ that there is a demo$raphi" in a spe"ifi" area that meets the tar$et mar0ets "riteria is an essentially important pie"e of information for upper le*el mana$ement/ >pper le*el mana$ement "an 0eep tra"0 of "han$es y "onstantly updatin$ themsel*es on the demo$raphi"s throu$h the "ensus1 the Department of #aor and %tatisti"s1 or e*en "ondu"t sur*eys storeide/ Maintainin$ a flo of "urrent a""urate information ill ensure the "ompany3s su""ess/ /f "ou (ere a manager at ohl,s head)uarters (hat t"pes of external information might "ou (ant& $hat if "ou (ere a manager of a local ohl,s store& $hat t"pes of external information might "ou (ant&

 2f 2 as a mana$er at a lo"al Kohl3s store the types of e4ternal information that 2 ould ant and ould "onsider are demo$raphi"s and te"hnolo$i"al information/ Ha*in$ the demo$raphi" information is *ital e"ause the need for "onne"tin$ ith "onsumers is  e"omin$ in"reasin$ly ne"essary in order to uild a "ustomer ase and in"rease retention/ This "onne"tion "annot e made if the "ompanies tar$et mar0et isn3t "learly defined/ Thou$h there is no one "ate$ory that e*eryone in the tar$et mar0et ill fit into1 Kohl3s needs to define it mar0et not just on a $rand le*el1 ut on a mi"ros"ope le*el/ This in"ludes 0non hat the pre*alent ra"e1 "ulture1 a$e $roup1 and many more "omponents are in the en*ironment mana$ement de"ides to uild a ran"h in/ We need to 0no hat is important to that spe"ifi" $roup and hat affe"tsdri*es it/ &s mana$ement 2 ould "olle"t data from the tar$et $roup on a surfa"e le*el and on a deeper le*el then translate that information into a useful strate$y to attra"t/ Te"hnolo$i"al information is ne"essary e"ause e no li*e in the a$e here e*erythin$ is e4pe"ted to e fast and smooth/ With our tar$et mar0et so""er moms already ein$  pressed for time the store needs to e updated ith the latest te"hnolo$y to $et them in and out as fast as possile/ >pdated te"hnolo$y information is also important e"ause our  tar$et mar0et is ideally omen ith "hildren and families so lo pri"es and sales are

important/ With te"hnolo$i"al information e "an update our "onsumers ith information on sales and pri"e redu"tion/ &s a mana$er at a lo"al Kohl3s store these to e4ternal pie"es of information ould e most important to me/ 2f 2 or0ed as a mana$er at headuarters the most important e4ternal fa"tor for me ould e e"onomy/ <hou$h Kohl3s has identified its tar$et mar0et that tar$et mar0et is suje"t to e4perien"e finan"ial turmoil dependin$ on the shift in the e"onomy/ %o as a mana$er 2 0no it3s important to see hat e"onomi" shifts mi$ht affe"t the "onsumers  e"ause a dire"t impa"t to them ould e an indire"t and "ru"ial impa"t to the "ompany as a hole/ 3oo% at Exhibit 2-4. /n (hat cell of the en*ironmental uncertaint" matrix (ould "ou place ohl,s& $h"& 'o( might ohl,s managers manage6 the en*ironmental uncertaint"&

2n the en*ironmental un"ertainty matri4 Kohl3s ould fall under the dynami" and "omple4 "ell/ The reason hy 2 pla"ed the "ompany ithin this "ell is mainly e"ause of the industry and in"rease in "ompetition/ The des"ription in "ell @ states that a "ompany fall into this "ell for these reasons: the en*ironment surroundin$ the "ompany is unpredi"tale and dynami"1 the "ompany had many e4ternal fa"tors impa"tin$ its internal en*ironment1 it en*ironment is "ontinuously "han$in$1 and the industry is one that reuires in-depth information aout the fa"tors that impa"t the internal en* ironment/ Mana$ers "an mana$e the en*ironmental un"ertainties y first a"0noled$in$1 se"ond "ontinuin$ to resear"h and uild "ustomer relations ith its tar$et mar0et1 and finally monitorin$ "ompetition/ <hou$h the industry Kohl3s is in1 is one that "han$es "onstantly ith proper mana$ement and a"0noled$ment the "ompany ill remain an ideal rand for its tar$et mar0et/ $hat sta%eholders do "ou thin% might be important to a compan" li%e ohl,s& $hat issues7concerns might be important to those sta%eholders& Explain "our choices.

The most important sta0eholders at Kohl3s are the "onsumers/ The "on"erns and issues that are rele*ant to them stem from multiple thin$s/ Falue1 "ulture1 traditions1 pri"e1 so"iety at lar$e1 and e*en the media3s proje"t of hat3s hot and hat3s not affe"t them/ 2 0no that these "on"erns are important to the "onsumers e"ause hen a person shops they don3t just aimless al0 around a store pi"0in$ up random items/ <hou$h many "onsumers rose the store they ideally and realisti"ally pi"0 up thin$s that attra"t them for one reason or another/ These reason e*entually stem a"0 to their personality1 "ulture1 traditions1 pri"e1 and the media/ With the orld ein$ more "onne"ted an d information  ein$ shared and stored at a faster rate than e*er efore seen in history. many "onsumers are no tyin$ their *alues and money into here they ma0e pur"hases/ They shop ith "ompanies that share the same *alues1 "ompanies that a""ept so"ial responsiilities that are understandale to them1 and then they pour their money into these "ompanies e"ause they are addressin$ the issues that are important to them/ These sta0eholders uild relationships ith the "ompany they trust that addresses their issues/

Chapter 4 Case Application 1: 'eld 'ostage

%ummary in relation to "hapter: This "ase study dis"usses a situation in hi"h "ompany employees of a
We ere a"tually not surprised y this story. earlier this summer there as a story aout another
2n Hofstede3s fi*e dimensions of ational Culture
&s mana$ers in
&t some point
ould ha*e een the first step/ &fter doin$ some resear"h on the situation1 2 noti"ed that this as one of many situations around the "ountry in hi"h mana$ers had een ta0en hosta$e/ The mana$ers should ha*e definitely een prepared for the situation to rea"h a  oilin$ point1 ut they eren3t/

o "ou thin% something li%e this could happen in the United tates& $ho or (h" not&

2 don3t thin0 the &meri"an people are ra*e and old enou$h to e*en attempt somethin$/ & fe days a$o 2 as tal0in$ to my friends spe"ifi"ally aout issues e ha*e on Hoard3s "ampus that seem asolutely ridi"ulous to students/ 2 li*e in the east toers and ha*e many friends ho li*e in the est and e are 5B and 58 years old/ We asi"ally li*e in the same uildin$ ut to different sides1 ut as an adult 23m not alloed to $o into the est toers for any reason/ The truth is1 if all the toers residents ho a"tually "omplain aout this same topi" on a re$ular asis de"ided to a"t on these opinions e "ould proaly $et it "han$ed/ We "ould protest or pi"0et in lar$e numers to for"e the administration to do somethin$ aout it/ Many people feel li0e as upper"lassmen in "olle$e e should no lon$er e treated li0e "hildren/ Hoe*er1 e"ause of our "ulture1 the "han"es of us a"tin$ to$ether to "han$e this issue are *ery unli0ely/ While it is an issue1 it isn3t lar$e enou$h to ma0e us a"t/ Here in the >nited %tates it seems that e ha*e to pi"0 our attles/ The administrations and $o*ernment ha*e a lot of authority and ouldn3t el"ome any type of radi"al demands for "han$e/ The protestin$ situation that happened in
Cultural differen"es in the or0pla"e "an e "hallen$in$ hen o*erloo0in$ a multinational "ompany espe"ially one that has under$one an a"uisition/ 2n Case  Application 2: Global Stumble,  omura1 a !apanese ro0era$e firm and #ehman1 an international operations susidiary fa"e "ultural differen"es hen transitionin$ after the mer$e/ The or$anization had to deal ith stru"turin$ the to "ultures already in pla"e to satisfy the dynami" usinesses/
Women at omura ere treated differently from men and it as *ery apparent ut is also a typi"al pra"ti"e in the !apanese "ulture/ Males ha*e the tenden"y to ha*e more  pre"eden"e and eha*e more dominantly hile females are to e more sumissi*e and oedient/ & prolem that arose started ith the initial trainin$ session for the ne hires hi"h reuired the men and omen to e tau$ht separately/ arroin$ in on the treatment of $enders1 there as an emphasis on ho females espe"ially1 should arri*e at the or0pla"e/ Hair hi$hli$hts1 short slee*es and ri$htly "olored "lothin$ ere  prohiited and deemed +inappropriate,/ The "ultural en*ironment led to tension and made it diffi"ult for omura and #ehman to mana$e the $loal or0for"e/ The $loal attitude that "hara"terizes omura is the ethno"entri" attitude that su$$ests the  elief that the est or0 approa"hes and pra"ti"es are those of the home "ountry the "ountry in hi"h the "ompany3s headuarters are lo"ated/ The top e4e"uti*es implemented their pra"ti"es and hat they elie*ed as est for the or$anization as a hole/ &s a "ulture that a"0noled$es poer distan"e omura e4pe"ted memers of the or$anization to adhere to the rules set in pla"e and did not "onsider the *alues of the  people ho ere or0in$ for them/ 2n total1 the !apanese ro0era$e firm had the attitude that their s0ills1 e4pertise1 0noled$e and e4perien"e as suffi"ient to lead their usiness/ With the instan"e of se*eral omen ein$ sent home on numerous o""asions for ein$ dressed +inappropriately, there seemed to e little dis"ussion to oje"tify the "ompanies3 standard to either hi$her mana$ement or e*en human resour"es/  omura as an institution that elie*ed they had superior standards that the entire or$anization ould e "ontent ith/ The "ase did not mention any effort or additional  pro"edures the "ompany too0 to see if employees ere a"tually satisfied/ The top mana$ement seemed to ha*e mana$ed the or0ers li*es on a ma"ro and mi"ro s"ale from ho they "ome into or0 to ho deals ere "ondu"ted/ )ased on the assumptions one "an infer this is the main reason hy there as so mu"h tension from the a"uisition/ et1  omura1 toards the later part of their usiness has made efforts to lend the to "ultures ith #ehman/ 2n their Europe and &sian ;a"ifi" offi"es there is a hi$her influ4 of  nationalities/ The firm has re"ruited and promoted non-!apanese employees to hi$hran0in$ positions to refle"t a $reater population rather than their domesti" offi"e/ #astly in efforts to redu"e the ethno"entri" attitude there is e*iden"e in the "ompanies shift in that Hiromi amaji1 Head of Gloal 2n*estment )an0in$ and ao0i Matsua1 Gloal Head of Euities ha*e relo"ated to #ondon and e or0 respe"ti*ely to display more $loal mana$ement/ Cultural en*ironments *ary ased on lo"ation due to *alues1 ays of life1 reli$ion and so on and so forth/ 2n terms of the !apanese "ulture and >nited %tates they are oth to *ery distin"t "ultures that "ontain a uniue aspe"t in their on $i*en ri$ht/ )e$innin$ ith Hofstede3s nited %tates falls into the indi*idualisti" dimension1 meanin$ that they loo0 after their  on and family interests hile !apan is in eteen indi*idualisti" and "olle"ti*isti"e4pe"tin$ the $roup to loo0 after and prote"t them/ The >nited %tates has a lo poer  distan"e and ha*e a lo un"ertainty a*oidan"e/ &meri"ans tend to e more strai$ht-

forard ith their intera"tions and in re$ards to the or0pla"e1 employees are not afraid to approa"h their oss or ta0e ris0s/ There is a hi$h le*el fo"us on a"hie*ement and  people are aarded and *alued more for their a""omplishments in the >% too/ #astly1 &meri"ans often *alue tradition and the past in their personal life and in the or0pla"e/ The >nited %tates en"oura$es indi*iduals to e demandin$ and to remain in pursuit of  their personal $oals/ 2t is a""epted for &meri"ans to e inardly fi4ated on sin"e it is a norm/ (n the "ontrary1 !apan tends to ha*e more of a neutral stan"e in respe"t to the dimensions of national "ulture/ 2n terms of poer distan"e1 this "ountry falls e*enly eteen lo and hi$h poer/ Dependin$ on the "ir"umstan"e there may e a different out"ome ut there still is a le*el of respe"t hen meetin$ or in the presen"e of a !apanese person that is instilled in their "ulture/ There is a major emphasis on a"hie*ements in the !apanese "ulture as ell all datin$ a"0 ith the "ountries3 history in the e$innin$ of its "i*ilization/ & differen"e from the >nited %tates is the future orientation1 in hi"h !apanese tend to loo0 to the future and *alue thrift and persisten"e/ !apan en"oura$es a"ti*ities su"h as plannin$1 in*estin$ in the future and delayin$ $ratifi"ation/
here the "ompany ill $o/ 2f there is only the same type of people holdin$ majority of  the poer then that displays an omnipotent *ie and $i*es an impression that usiness ill e "ondu"ted ho they Imana$ementJ see fit/ omura is sloly mo*in$ toard this trend and ants to in"rease their numers of ethni" $roups/ Today the "ompany has su""essful usinesses in the &meri"as1 Eastern Middle &meri"as and &sian territories to "ontinue their usiness/ & $loal representation is a pra"ti"e that more "ompanies are no adoptin$ to further e4pand their usiness/