Do you realize that one in three Prudential associates are Japanese?Many others are Korean, Taiwanese, Brazilian and more?That over 40% of our operating profit comes from International Insurance and the vast majority of that from Japan? This is a map of current Prudential International Insurance Operations. It does not include other subsidiaries like real estate or investments. This map shows LP operations and non LP operations. What is the difference?? Does anyone want to take a stab at it? Today I will talk about going international, how we select opportunities and some of the criteria we look at. Then go on to talk about some of the challenges we face if we are asked to take on an international assignment. Then I hope to have some Questions.
Transportation after company party, Large American Company, Parties-company money,
John Hanrahan is in Japan. Interpreters key.In Poland, he couldn’t be President
What is wrong with this sentence? Well it really would be A type. Bs are considered disorganized, flamboyant and free thinkers. As are dependable, self-sacrificing and reserved.BURAHARA
The role of policeman/woman: Young kids riding around with machine guns, very low paid. Or professional civil servants? What about the jails and judicial system?
There are so many interesting differences around the world and so much we can learn. I first visited Japan in 1998. I still remember going to the ladies room. There were only about four women in it but the toilets kept flushing over and over again. Months later I read in the WSJ that Japanese women were very shy. They did not like to make noise while going to the bathroom so … Five years later, I went to POJ again and the toilet had lots of Japanese signs on it ….
Global Tips cultural Case Studies
Tips for Going Global Barbara M Fowler, JD, LL.MManagement Development Consultant April 19, 2011
Decisions What do your core values indicate should be considered? (example, worthy of trust, respect for each other, customer focused, winning) What is the law in the country? What are the “common business practices”? How will this impact future decisions? How will this affect the company globally? 2For Internal Use Only
Current PII Operations Poland (1998) Korea China (1989) Italy (1990) Japan (1987, 2001) Mexico Taiwan (2006) Brazil India (1989) (1997) (JV 2008) Argentina (1998)For Internal Use Only 3
Critical Factors To Consider 1. Market Attractiveness 2. Political and Economic Stability 3. Employment Law 4. Consumer Protection Overall 5. Financial Picture Recommendation 6. Regulatory Environment 7. Competitive Situation 8. Labor Pool for your industry 9. Synergies/Obstacles 10. Ease of Implementation 4For Internal Use Only
Country Snapshot—Selected Data (2008) Agnieska Bonanza 82 million Population 88. million 0.04% Population Growth (annual) 1.53% 1.2 Fertility (births/woman) 2.49 80.0 years Life expectancy 74 years 41.3 years Median Age 23.8 years 26.6% % of Pop. under age 25 54.0% 20% of workers % Univ. Grad, Target Cities 15% of people over 15 99% Literacy Rate 92% US $1,976 billion GDP (US$ basis) US $637 billion 1.61% Inflation 4.78% 9.8% overall Unemployment 9.8% overall US $ 50,000 Average Income US$30,000 31st of 100 countries Corruption Index 72nd of 100 countries th of 100-Moderate to High 28th of 100 -Low Country Risk 68 81st of 100 countries Business Friendly Environment 30th of 100 countries 5For Internal Use Only
Country Indexes With one being the best country and 100 the worst country, CORRUPTION INDEX -- Agnieska is at 31 and Bonanza is at 72. COUNTRY RISK – Agnieska is at 28 and Bonanza is at 68. BUSINESS FRIENDLY ENVIRONMENT - Agnieska is at 81 and Bonanza is at 30. 6For Internal Use Only
Agnieska • Large, Stable Middle Class • High Income Taxes • Disability, Unemployment, Retirement Support • Low Birth Rate • Established Industries 7For Internal Use Only 7
Bonanza Class Disparity Rapidly Growing Middle Class Women leave work force when children born Industry just beginning Low Government Benefits 8For Internal Use Only
Labor Pool Will we find sufficient number of candidates? Will these candidates be able to develop the markets? Will they be willing to work long hours? 2300/1700 What about entrepreneurial spirit? Do workers here want more security or more opportunity? How do people feel about careers? 9For Internal Use Only
Other Issues In Bonanza, English speaking management salaries are very high and specialists are recruited heavily. Turnover is high. In Agnieska, there are many labor suits and the employee usually wins. In Bonanza, the concept that hard work brings success is not believed. In Agnieska, it is part of the culture. 10For Internal Use Only
The Decision Has Been Made You have been asked to lead a team of five ex-pats to start the operation. The team is told that they will be in-country for approximately 18 to 24 months. What are your concerns? What about your family? Will you accept this opportunity? What about when you come back? 11For Internal Use Only
Issues that arise in first year Free Coffee Broken Leg Maternity Leave University Classes Marriage Leave Company Money Volunteer Activity Lunches 12For Internal Use Only
Questions: 1. There are two final candidates for the CEO position. Both are good. One is especially well regarded for his people development skills but his English language skills are average at best. The other is highly regarded for her financial acumen and her English is excellent. How important are the language skills? 13For Internal Use Only
Questions: 2. You install a coffee/tea machine with a nominal fee. However, you quickly learn that many employees are upset. They expected complimentary coffee/tea. Should you provide it? 3. You are interviewing a candidate for a Director position. In answer to several questions during the interview, the candidate starts by saying, “I talked to my psychologist about this” or “My psychologist and I discussed this.” 14For Internal Use Only
Questions 4. You are interviewing one of the finalists for the IT manager position. The in-country executive asks what is the candidates blood type. He later explains that A blood type is better for IT and he prefers that candidate for the position. 15For Internal Use Only
Questions 5. You are driving with your child and are stopped by a policeman but do not understand why. Local custom is to give the policeman your license with a 20 dollar bill wrapped around it. You do not know the language but it is apparent the policeman is expecting this. 16For Internal Use Only