1) Corning, a US glass manufacturer, and Vitro, a Mexican glass company, formed a $130 million joint venture in 1992 to produce cookware.
2) While the new product was initially successful, cultural differences in management styles between the US and Mexican companies led to conflicts that caused the partnership to dissolve in 1994.
3) Factors like centralized vs decentralized decision making, risk tolerance, and views on competition and loyalty contributed to clashes that made the joint venture unsustainable.
The Corning-Vitro joint venture between American company Corning and Mexican company Vitro failed due to cultural differences in management practices. Corning had a decentralized, risk-taking culture while Vitro had a formal, hierarchical culture. Corning encouraged competition and individual rewards, while Vitro focused on cooperation and group rewards. The cultural clashes led to communication issues and misunderstandings. After two years, the $130 million venture was dissolved and the companies now simply distribute each other's products. The failure showed the importance of understanding cultural differences before entering joint ventures.
This document discusses the opportunities and challenges of conducting business globally. It begins by introducing Whirlpool's challenges in expanding globally and highlights the cultural differences companies must consider abroad, such as social values, decision-making, and gestures. It also notes the legal differences, such as complying with laws like the Foreign Corrupt Practices Act. Finally, it outlines the main forms of international business activities like importing/exporting, licensing, franchising, and joint ventures.
The document discusses the challenges faced by DaimlerChrysler after their 1998 merger. It notes their differing corporate cultures, with Daimler having a hierarchical structure and Chrysler being more team-oriented. The merger struggled as Daimler asserted more control and Chrysler's independent culture was disrupted. Cultural differences in areas like communication styles, leadership, and customer approaches posed integration challenges.
The Corning-Vitro joint venture dissolved after 25 months due to cultural and operational clashes between the two companies. While Corning was a 150-year old American glass company and Vitro was a 100-year old Mexican glass company, they had significant differences in their organizational cultures, including how they approached decision making, risk tolerance, treatment of employees, and views on achievement versus ascription. These cultural differences undermined the economic rationale and shared vision that initially led to the joint venture.
- Black & Decker pursued an international expansion strategy during the 1950s-1960s by setting up wholly owned subsidiaries in other countries that were given autonomy to operate. This decentralized structure made sense given Black & Decker's monopoly in the power tools market at the time.
- In the 1980s-1990s, increased competition from large retailers put pressure on Black & Decker's prices. The company responded by further centralizing control over subsidiaries and engaging in cost-cutting measures to lower prices.
- By the 1990s, it was clear that Black & Decker needed to make larger strategic changes beyond just cost-cutting to address the competitive environment.
Meeting the challenges of globalization3Brian Berger
This document summarizes a speech given by the president and CEO of the National Retail Federation (NRF) about the challenges of globalization for retailers. It discusses how retailers are choosing to move forward despite economic uncertainty and concerns about globalization. It also describes how charitable giving and social responsibility are becoming increasingly important for retailers, both domestically and globally, as consumers expect companies to support local communities. Retailers must balance the need to expand globally with sensitivity to local cultures and standards.
Identify in 150 - 200 words your reactions to the concepts of global.pdffathimafancyjeweller
Identify in 150 - 200 words your reactions to the concepts of globalization and Global Business
Ethics Issues.
Solution
Overview
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical
failures certainly played a role. While it remains to be seen whether and how many people
blatantly broke the law, there are abundant signs of various forms of potentially unethical
behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption
(such as ratings agencies that appear to have had a conflict of interest), complex financial
instruments that no one really understood, and herd behavior where people just followed along
and failed to exercise independent judgment.
It is difficult or impossible to regulate against greed and against many of the other ethical
shortcomings that have been seen. What can be done is to force greater transparency and
accountability, a process which began with Sarbanes-Oxley and is expected to continue with new
regulations of the financial system.
Context
Drawing upon learnings from their work and experiences, the panelists and moderator exchanged
views with the audience on the ethics and legitimacy of business and capitalism in general, and
the financial crisis in particular.
Key Takeaways
The financial crisis may shift societal views on the legitimacy of business.
Each panelist offered a different perspective on the issue of ethics and legitimacy in business:
– The financial crisis has the potential to damage the legitimacy of capitalism (Di Tella). Richer
nations tend to be more right-wing in their views and have more capitalistic economic systems.
The United States is exceptionally right-leaning, even among developed nations.
These attributes are heavily influenced by beliefs regarding the reasons why people are
prosperous or poor. Americans tend to see prosperity as a product of effort more than luck; left-
leaning nations believe the opposite.
Affecting these beliefs: the number and severity of the shocks a society has weathered; and
perceptions regarding the legitimacy of business—i.e., the perceived degree of corruption.
America generally perceives that corrupt businesspeople are the exception, and punishes deviants
severely. However, this financial crisis holds the potential to shift America leftward since it: 1) is
a major shock that 2) suggests systemic corruption. Both call into some question the legitimacy
of U.S. capitalism.
– It is ethically legitimate for businesses to place the customer\'s interests above all else, because
only through profit comes the freedom to contribute to society (Vasella). Business leaders must
use their personal moral compasses to make ethical decisions. As for the business\'s compass, it
should be oriented toward satisfying customers above all stakeholders. That is the orientation
that allows for the greatest competitive success and profitability. In Mr. Vasella\'s view, only by
making a profit does a company earn the rig.
The Corning-Vitro joint venture between American company Corning and Mexican company Vitro failed due to cultural differences in management practices. Corning had a decentralized, risk-taking culture while Vitro had a formal, hierarchical culture. Corning encouraged competition and individual rewards, while Vitro focused on cooperation and group rewards. The cultural clashes led to communication issues and misunderstandings. After two years, the $130 million venture was dissolved and the companies now simply distribute each other's products. The failure showed the importance of understanding cultural differences before entering joint ventures.
This document discusses the opportunities and challenges of conducting business globally. It begins by introducing Whirlpool's challenges in expanding globally and highlights the cultural differences companies must consider abroad, such as social values, decision-making, and gestures. It also notes the legal differences, such as complying with laws like the Foreign Corrupt Practices Act. Finally, it outlines the main forms of international business activities like importing/exporting, licensing, franchising, and joint ventures.
The document discusses the challenges faced by DaimlerChrysler after their 1998 merger. It notes their differing corporate cultures, with Daimler having a hierarchical structure and Chrysler being more team-oriented. The merger struggled as Daimler asserted more control and Chrysler's independent culture was disrupted. Cultural differences in areas like communication styles, leadership, and customer approaches posed integration challenges.
The Corning-Vitro joint venture dissolved after 25 months due to cultural and operational clashes between the two companies. While Corning was a 150-year old American glass company and Vitro was a 100-year old Mexican glass company, they had significant differences in their organizational cultures, including how they approached decision making, risk tolerance, treatment of employees, and views on achievement versus ascription. These cultural differences undermined the economic rationale and shared vision that initially led to the joint venture.
- Black & Decker pursued an international expansion strategy during the 1950s-1960s by setting up wholly owned subsidiaries in other countries that were given autonomy to operate. This decentralized structure made sense given Black & Decker's monopoly in the power tools market at the time.
- In the 1980s-1990s, increased competition from large retailers put pressure on Black & Decker's prices. The company responded by further centralizing control over subsidiaries and engaging in cost-cutting measures to lower prices.
- By the 1990s, it was clear that Black & Decker needed to make larger strategic changes beyond just cost-cutting to address the competitive environment.
Meeting the challenges of globalization3Brian Berger
This document summarizes a speech given by the president and CEO of the National Retail Federation (NRF) about the challenges of globalization for retailers. It discusses how retailers are choosing to move forward despite economic uncertainty and concerns about globalization. It also describes how charitable giving and social responsibility are becoming increasingly important for retailers, both domestically and globally, as consumers expect companies to support local communities. Retailers must balance the need to expand globally with sensitivity to local cultures and standards.
Identify in 150 - 200 words your reactions to the concepts of global.pdffathimafancyjeweller
Identify in 150 - 200 words your reactions to the concepts of globalization and Global Business
Ethics Issues.
Solution
Overview
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical
failures certainly played a role. While it remains to be seen whether and how many people
blatantly broke the law, there are abundant signs of various forms of potentially unethical
behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption
(such as ratings agencies that appear to have had a conflict of interest), complex financial
instruments that no one really understood, and herd behavior where people just followed along
and failed to exercise independent judgment.
It is difficult or impossible to regulate against greed and against many of the other ethical
shortcomings that have been seen. What can be done is to force greater transparency and
accountability, a process which began with Sarbanes-Oxley and is expected to continue with new
regulations of the financial system.
Context
Drawing upon learnings from their work and experiences, the panelists and moderator exchanged
views with the audience on the ethics and legitimacy of business and capitalism in general, and
the financial crisis in particular.
Key Takeaways
The financial crisis may shift societal views on the legitimacy of business.
Each panelist offered a different perspective on the issue of ethics and legitimacy in business:
– The financial crisis has the potential to damage the legitimacy of capitalism (Di Tella). Richer
nations tend to be more right-wing in their views and have more capitalistic economic systems.
The United States is exceptionally right-leaning, even among developed nations.
These attributes are heavily influenced by beliefs regarding the reasons why people are
prosperous or poor. Americans tend to see prosperity as a product of effort more than luck; left-
leaning nations believe the opposite.
Affecting these beliefs: the number and severity of the shocks a society has weathered; and
perceptions regarding the legitimacy of business—i.e., the perceived degree of corruption.
America generally perceives that corrupt businesspeople are the exception, and punishes deviants
severely. However, this financial crisis holds the potential to shift America leftward since it: 1) is
a major shock that 2) suggests systemic corruption. Both call into some question the legitimacy
of U.S. capitalism.
– It is ethically legitimate for businesses to place the customer\'s interests above all else, because
only through profit comes the freedom to contribute to society (Vasella). Business leaders must
use their personal moral compasses to make ethical decisions. As for the business\'s compass, it
should be oriented toward satisfying customers above all stakeholders. That is the orientation
that allows for the greatest competitive success and profitability. In Mr. Vasella\'s view, only by
making a profit does a company earn the rig.
Essay On Use Of Internet A Blessing Or CurseMelissa Bailey
The document discusses the state of Eastland's waste disposal regulation and a court case regarding its constitutionality. It argues that the regulation is neither discriminatory nor protectionist and that setting licensing requirements for waste disposal falls under the state's autonomy and police powers to protect public health and safety. It distinguishes the case from a prior Supreme Court decision, arguing Eastland is pursuing a legitimate interest, not favoring any private entity, by having funded a public waste disposal facility with taxpayer money.
Essay On Customer Service Excellence. Online assignment writing service.Sonya Pope
The document provides steps for requesting writing assistance from HelpWriting.net, including registering for an account, completing an order form with instructions and deadline, reviewing writer bids and choosing one, and authorizing payment after receiving and approving the paper. It also notes that revisions are allowed and plagiarized work will result in a refund.
Tim Hortons employees were instructed to prepare coffee before the company's opening to reduce wait times for customers. However, this resulted in health code violations as the prepared coffee would sit at improper temperatures for too long. While the intent was to improve the customer experience, compromising food safety standards can have serious negative consequences. The company has since changed its policy to avoid these issues.
The Importance of Ethics in Business Essay
Business Ethics Essay
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Business Ethics Essay
Ethical Principles Of Business Ethics
Business Ethics Essay
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The Five Myths Of Business Ethics
Business Ethics Essay
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The Five Business Ethics Myths Essay
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Philip kotler marketing_3.0_seminar_april_4_2011snehalpurohit
The document summarizes Philip Kotler's presentation on marketing trends and the evolution of marketing from Marketing 1.0 to Marketing 3.0. It discusses the loss of effectiveness of traditional marketing approaches and the need for companies to shift to a more strategic, values-driven approach that focuses on all stakeholders, involves customers in product development, and addresses societal challenges like sustainability. The presentation highlights how marketing must adapt to new technologies, empowered customers, distrust in business, and other trends in order to build strong brands and company reputation.
Philip kotler marketing_3.0_seminar_april_4_2011snehalpurohit
The document summarizes key points from a presentation on marketing 3.0 and values-driven marketing. It discusses challenges facing businesses like distrust of business and economic issues. It also covers opportunities like globalization and technological advances. The presentation emphasizes engaging customers, stakeholders, and sustainability to build strong brands and reputations.
Gun Control in America Essay - PHDessay.com. Gun Control: Gun violence and awareness - Free Essay Example .... Gun Control Has Many Effects in USA - Free Essay Example | PapersOwl.com. Gun Control Persuasive Essay | English - Year 11 WACE | Thinkswap. Gun control essay thesis proposal. Anti gun control thesis statement - eyeofthedaygdc.web.fc2.com. Anti gun control essay outline - illustrationessays.web.fc2.com. Pro-gun Control And Anti-gun Control Free Essay Example. Against gun control argumentative essay. How To Write a Gun Control Argumentative Essay | Topics, Examples. Persuasive essay on anti gun control - mfacourses887.web.fc2.com. Gun Control Arguments - Free Essay Example | PapersOwl.com. College Essay: Gun control essay. ENG101 - English 101.Gun Control Today essay - Gun Control Today Gun .... ️ Gun control in the us essay. Gun Control in the United States. 2019-02-27. Gun Control Essay | Gun Control | Crimes | Free 30-day Trial | Scribd. Gun control argumentative essay - College Homework Help and Online .... Why Gun Control and Ban on Certain Guns will Not Work in the United .... Why America Needs Stricter Gun Control Laws - Free Essay Example .... Anti gun control essay introduction - writerstable.web.fc2.com. Gun Control and Violence - Free Essay Example | PapersOwl.com. Gun control : for and against Essay Example | Topics and Well Written .... 222 Open-to-Question
Advantages And Disadvantages Of Merger And MergersAngie Willis
KCP&L recently merged with another company and is facing challenges with company integration. Proper integration is important for the merged company to function effectively and make good decisions. This paper will research how other companies handled integration challenges from mergers and outline preliminary steps KCP&L could take to improve integration, such as:
- Communicating the vision and strategic plans to employees
- Managing all aspects of human resources including culture changes
- Integrating technologies and business processes smoothly
The goal is to provide recommendations to help KCP&L's management successfully restructure and transform the company through effective integration following the merger.
This document discusses creating an ethical culture in business. It argues that defining a manager's role as solely profit-maximization can conflict with ethics and is dysfunctional, as business environments require cooperation between interdependent stakeholders. The document proposes two principles to give ethical purpose to management: 1) recognize one's interdependence with others for success, and 2) see others not as constraints but as necessary partners. It provides examples of ethical dilemmas in business and advocates for changing perceptions so managers promote win-win cooperation instead of seeing stakeholders as adversaries.
This presentation explores the possibility of Pringles establishing a factory in Israel. All Hypothetical of course. Before Procotor and Gamble dumped them.
This document provides an overview of gaming culture and examines gamers' impact on society. It begins with definitions of common game types like first-person shooters, real-time strategy, role-playing games, and simulations. It then discusses Local Area Network (LAN) versus Massively Multiplayer Online (MMO) games. The document outlines various social gaming events and conventions. It considers arguments around whether gaming promotes violence but also discusses gaming's influence on art, education, and socialization. The conclusion is that gaming offers strategic and technical skills while inspiring creativity and new ways of learning.
This presentation explores the strategy of Hasbro putting its brands on the big screen. We will cover the company's history, past strategies, and the terms of the deal.
This presentation sums up a case study of sociological aspescts behind crime in Chicago. One case in particular where Afican-American Hernando Washington raped a caucasian woman.
The document discusses the ethical issues surrounding human cloning and outlines two main cloning methods - embryo splitting and nuclear transplantation. It notes differences between the methods such as the number of progenitors and genetic manipulation possibilities. Reasons for and against cloning are provided, including using cloning to help infertile couples, stem cell research, and replacing lost children. However, concerns include impacts on human individuality, commodification of women's eggs, and biological risks of reduced genetic diversity. The United Nations is exploring the issue to determine international policy on human cloning.
Al Capone was the most notorious gangster of the 1920s, controlling organized crime in Chicago through bootlegging, murder, and racketeering. His main rival was Bugs Moran, whose crew was responsible for the bloody St. Valentine's Day Massacre. Minor gang members like the Genna Brothers engaged in extortion and bootlegging. Capone's gunmen included Jack McGurn, who planned the St. Valentine's Day Massacre, and Sam Giancana, a triggerman and bootlegger. Elliot Ness and his Untouchables were eventually able to arrest and convict Capone on tax evasion charges, sending him to prison for 11 years.
Essay On Use Of Internet A Blessing Or CurseMelissa Bailey
The document discusses the state of Eastland's waste disposal regulation and a court case regarding its constitutionality. It argues that the regulation is neither discriminatory nor protectionist and that setting licensing requirements for waste disposal falls under the state's autonomy and police powers to protect public health and safety. It distinguishes the case from a prior Supreme Court decision, arguing Eastland is pursuing a legitimate interest, not favoring any private entity, by having funded a public waste disposal facility with taxpayer money.
Essay On Customer Service Excellence. Online assignment writing service.Sonya Pope
The document provides steps for requesting writing assistance from HelpWriting.net, including registering for an account, completing an order form with instructions and deadline, reviewing writer bids and choosing one, and authorizing payment after receiving and approving the paper. It also notes that revisions are allowed and plagiarized work will result in a refund.
Tim Hortons employees were instructed to prepare coffee before the company's opening to reduce wait times for customers. However, this resulted in health code violations as the prepared coffee would sit at improper temperatures for too long. While the intent was to improve the customer experience, compromising food safety standards can have serious negative consequences. The company has since changed its policy to avoid these issues.
The Importance of Ethics in Business Essay
Business Ethics Essay
Business Ethics Case Study Essay example
Business Ethics Essay
Ethical Principles Of Business Ethics
Business Ethics Essay
Business Law and Ethics Essay
The Five Myths Of Business Ethics
Business Ethics Essay
Ethics In Business Ethics
Essay about Ethical Issues in Business
The Five Business Ethics Myths Essay
Business Ethics Essay
The Ethics Of Business Ethics Essay
Business Ethics Essay
What Is Business Ethics? Essay
Essay about Ethics in International Business
Philip kotler marketing_3.0_seminar_april_4_2011snehalpurohit
The document summarizes Philip Kotler's presentation on marketing trends and the evolution of marketing from Marketing 1.0 to Marketing 3.0. It discusses the loss of effectiveness of traditional marketing approaches and the need for companies to shift to a more strategic, values-driven approach that focuses on all stakeholders, involves customers in product development, and addresses societal challenges like sustainability. The presentation highlights how marketing must adapt to new technologies, empowered customers, distrust in business, and other trends in order to build strong brands and company reputation.
Philip kotler marketing_3.0_seminar_april_4_2011snehalpurohit
The document summarizes key points from a presentation on marketing 3.0 and values-driven marketing. It discusses challenges facing businesses like distrust of business and economic issues. It also covers opportunities like globalization and technological advances. The presentation emphasizes engaging customers, stakeholders, and sustainability to build strong brands and reputations.
Gun Control in America Essay - PHDessay.com. Gun Control: Gun violence and awareness - Free Essay Example .... Gun Control Has Many Effects in USA - Free Essay Example | PapersOwl.com. Gun Control Persuasive Essay | English - Year 11 WACE | Thinkswap. Gun control essay thesis proposal. Anti gun control thesis statement - eyeofthedaygdc.web.fc2.com. Anti gun control essay outline - illustrationessays.web.fc2.com. Pro-gun Control And Anti-gun Control Free Essay Example. Against gun control argumentative essay. How To Write a Gun Control Argumentative Essay | Topics, Examples. Persuasive essay on anti gun control - mfacourses887.web.fc2.com. Gun Control Arguments - Free Essay Example | PapersOwl.com. College Essay: Gun control essay. ENG101 - English 101.Gun Control Today essay - Gun Control Today Gun .... ️ Gun control in the us essay. Gun Control in the United States. 2019-02-27. Gun Control Essay | Gun Control | Crimes | Free 30-day Trial | Scribd. Gun control argumentative essay - College Homework Help and Online .... Why Gun Control and Ban on Certain Guns will Not Work in the United .... Why America Needs Stricter Gun Control Laws - Free Essay Example .... Anti gun control essay introduction - writerstable.web.fc2.com. Gun Control and Violence - Free Essay Example | PapersOwl.com. Gun control : for and against Essay Example | Topics and Well Written .... 222 Open-to-Question
Advantages And Disadvantages Of Merger And MergersAngie Willis
KCP&L recently merged with another company and is facing challenges with company integration. Proper integration is important for the merged company to function effectively and make good decisions. This paper will research how other companies handled integration challenges from mergers and outline preliminary steps KCP&L could take to improve integration, such as:
- Communicating the vision and strategic plans to employees
- Managing all aspects of human resources including culture changes
- Integrating technologies and business processes smoothly
The goal is to provide recommendations to help KCP&L's management successfully restructure and transform the company through effective integration following the merger.
This document discusses creating an ethical culture in business. It argues that defining a manager's role as solely profit-maximization can conflict with ethics and is dysfunctional, as business environments require cooperation between interdependent stakeholders. The document proposes two principles to give ethical purpose to management: 1) recognize one's interdependence with others for success, and 2) see others not as constraints but as necessary partners. It provides examples of ethical dilemmas in business and advocates for changing perceptions so managers promote win-win cooperation instead of seeing stakeholders as adversaries.
This presentation explores the possibility of Pringles establishing a factory in Israel. All Hypothetical of course. Before Procotor and Gamble dumped them.
This document provides an overview of gaming culture and examines gamers' impact on society. It begins with definitions of common game types like first-person shooters, real-time strategy, role-playing games, and simulations. It then discusses Local Area Network (LAN) versus Massively Multiplayer Online (MMO) games. The document outlines various social gaming events and conventions. It considers arguments around whether gaming promotes violence but also discusses gaming's influence on art, education, and socialization. The conclusion is that gaming offers strategic and technical skills while inspiring creativity and new ways of learning.
This presentation explores the strategy of Hasbro putting its brands on the big screen. We will cover the company's history, past strategies, and the terms of the deal.
This presentation sums up a case study of sociological aspescts behind crime in Chicago. One case in particular where Afican-American Hernando Washington raped a caucasian woman.
The document discusses the ethical issues surrounding human cloning and outlines two main cloning methods - embryo splitting and nuclear transplantation. It notes differences between the methods such as the number of progenitors and genetic manipulation possibilities. Reasons for and against cloning are provided, including using cloning to help infertile couples, stem cell research, and replacing lost children. However, concerns include impacts on human individuality, commodification of women's eggs, and biological risks of reduced genetic diversity. The United Nations is exploring the issue to determine international policy on human cloning.
Al Capone was the most notorious gangster of the 1920s, controlling organized crime in Chicago through bootlegging, murder, and racketeering. His main rival was Bugs Moran, whose crew was responsible for the bloody St. Valentine's Day Massacre. Minor gang members like the Genna Brothers engaged in extortion and bootlegging. Capone's gunmen included Jack McGurn, who planned the St. Valentine's Day Massacre, and Sam Giancana, a triggerman and bootlegger. Elliot Ness and his Untouchables were eventually able to arrest and convict Capone on tax evasion charges, sending him to prison for 11 years.
1. Derrick Quals<br />Ryan Huelsmann<br />Dr. Will<br />Int. Business<br />Cultural Conflicts: The Corning-VITRO Joint Venture<br />According to Webster’s Online Dictionary, a joint venture is “an enterprise in which two or more companies enter into a temporary partnership”. What this means is that when two different companies decide to cooperate together in creating one new product or organization, they enter into a joint venture. Many foreign and domestic corporations have teamed together for this purpose in efforts to capitalize on an untouched market or increase the net sales and profit of both companies. This was the case of Corning Incorporated and Vitrocrisa. Corning, a U.S glass and ceramics manufacturer, teamed up with Mexican owned glass processing company Vitrocrisa. With Corning’s knowledge in ceramics combined with Vitro’s knowledge in glass manufacturing, they combined to create Corning- Vitro’s oven ready cooking pots. What was unique about this 1992 joint venture was not only the new product they produced but how it “helped double trade between the U.S and Mexico eventhough NAFTA faced strong opposition from congress over environmental and labor concerns” (Juanita Darling, Los Angeles Times). Although this joint venture between these two major companies seemed like a match made in heaven, both companies soon found out how their cultural differences would lead to their eventual split.<br />Corning Inc. is a glass and ceramics company which was originated and is stationed in the United States. Corning Inc. declares themselves as the world leaders in glass and ceramics, with over 150 years of materials science and process engineering experience. In its earlier years, Corning was widely known for their oven ready cookware and their previous success in globalization and joint ventures. Corning’s first joint venture involved a French glassmaking company named St. Gobain in the 1920’s. Together they created Pyrex cookware. At the time of their joint venture with Vitro, Corning was the innovative leader in foreign alliances for more than seventy three years. During that time period they had almost 50 joint ventures with only 9 being unsuccessful.<br />Vitrocrisa, or Vitro for short, concentrates on glass manufacturing and specializes in beverage bottling products. Vitro was started in 1909 in Monterrey, Mexico and at the time of their partnership with Corning, they were one of the world’s largest glass manufacturers. Although they specialized in drink-ware from bottles to champagne glasses, they also specialized in the manufacturing of automobile windshields, fragrance bottles, and even washing machines. Vitro was also the leader in glass manufacturing in Mexico.<br />When Corning saw an opportunity to expand their expertise in a product market they saw another chance in which they could team up with another organization of similar product specialization. Corning also felt that they would also be capitalizing on NAFTA by accessing the Mexican market. This eventually led to their $130 million joint venture with Vitro. Both companies saw this as an extremely great opportunity since they felt that both of their companies shared similarities in history, customer orientated philosophies, goals, and objectives. Their close relation in product specification led to the development of the Corning Vitro Corporation’s 5- piece casserole set along with other related cookware products. This alliance also caused a threat to other U.S companies that competed with Vitro. As Juanita Darling of the Los Angeles Times wrote, “While Corning employees may not be hurt by this particular alliance, the trade agreement could cost the jobs of workers at other U.S. companies that compete directly with Vitro”. Little did they know how short-lived this partnership would become and how a once great alliance, would deteriorate due to opposing clashes in corporate culture and beliefs.<br />Hofstede studied cultural variances among other countries and grouped their values across four dimensions: power distance, uncertainty avoidance, individualism or collectivism, and masculine or feminine. By the studying the overall values of a country and where they fall in those categories, one can almost get a feeling of how these cultural dimensions might affect Corning’s and Vitro’s overall business practices. The first one involves power distance, which examines how well the less powerful members of society accept that power is distributed unequally. The United States has a low power distance consisting of flatter and more decentralized structures. In Corning’s case since it is located in the U.S., the people of the top would let personnel from lower-levels in the organization make decisions or at the very least listen to their input on decisions. However, Mexico has a high power distance, which means that the people blindly obey orders and is very centralized. That means Vitro’s heads of the corporation make all the decisions, and the bottom follows each order to the letter. Next on Hofstede’s list is uncertainty avoidance, which reflects how likely they will take risks. America has a low uncertainty avoidance, which means more willing to accept risks of the unknown, while Mexico has high uncertainty avoidance, which means higher need for security before taking certain risks. As a result, Corning has less managerial structure and has more managerial risk taking on their part, while Vitro structures their organizational activities and takes fewer managerial risks. After that, Hofstede examined how individualistic or collectivistic a country is. For America’s Corning, they are high on the individual making them wealthier, having greater individual initiative, and taking part in a Protestant work ethic focusing on individual needs, while Mexico’s Vitro is higher on collectivist side resulting in poorer conditions, less individual initiative, and a Catholic work ethic focusing on the group or family needs. Finally, Hofstede discussed masculinity or felinity of countries. America, especially Corning, is masculine, which means they are earning more stress and more focused on obtaining wealth, recognition, or advancement. Basically, the people are always on the lookout for the next promotion or raise, which is more easily achieved in low power distance nations because movement is easier. However, Mexico and their company Vitro are more feminine, which means they are more focused on cooperation, friendly atmosphere, and employment security. It is these aspects that make the loyalty for the company to exist. Hofstede emphasized and categorized the differences in culture between these two countries, but it is how these differences affected their ability to manage and cooperate with each other that led to their imminent downfall. <br />As stated earlier, Hofstede pointed out the differences in their respective homelands, and now let’s examine those differences and how they affected their management style. Corning was decentralized, which meant that middle-level and lower-level managers were involved in the decision making process. In addition, certain decisions, depending on the type such as distribution or consumer, the higher-ups would never know about it. The reasoning behind this is that decisions could be made quickly, that it builds trust and increases productivity amongst employees, and that people on the front-line know what is best in doing their jobs better. Vitro, on the other hand, is very centralized and has all the top managers make all important decisions. In Vitro’s case, middle-level managers were seldom asked to contribute. Mr. Loose, a Corning chief executive, commented on this method of doing business by stating “My experience on the Mexican side is that someone in the organization would have a decision in mind, but then the decisions had to be kicked up a few levels.” <br />The next set of problems came from their informal and formal methods of doing business. Corning was very informal, thus making it forward in most of its business practices, forcing it to move quickly, and was very open to acknowledge problems in order to try to solve them. However, Vitro has more of a formal method of doing business. It was family oriented, very polite, believed to move slowly, bureaucratic and hierarchal, and unwilling to acknowledge problems because they thought it was rude. These differences in management styles were linked to a variety of conflicts in the joint venture.<br />Another source of trouble in this joint venture was that Corning encouraged competition amongst its employees, while Vitro encouraged cooperation. Stemming from this aspect of competition was the quick-action and aggressive sales. Also, Corning is always attempting to be better either at selling, at producing, or at anything else that would help the business thrive, and, as a result, Corning rewarded those individuals who came up with new ideas, who brought in more sales, or who found a way to improve production by issuing raises, bonuses, recognition, or promotion. Vitro encouraged cooperation amongst its people. This means that Vitro has a slower, more deliberate approach to sales. To encourage this concept, it rewarded the people more as a group. Now, since Vitro is in a closed economy in Mexico with little competition, the company did not have the mindset for competition. Its main focus and competitive advantage was product reliability. Corning has to be pushing for more sales, pushing for better production, pushing for more ways to beat out their competitors. Vitro does not have to be as cutthroat to achieve its goals in Mexico’s closed economy.<br />Their attitudes toward risk also took effect and caused some arguments for this joint venture. Corning was more open to risk because they know that in order to survive one has to change and every change requires a little bit of risk, while Vitro was very averse to risk. One issue that presented itself is that Corning wanted to distribute its products to Wal-mart and K-Mart, but Vitro disagreed. Mentioned earlier was the fact about Vitro being in a closed economy, and as a result, it was out of its element with Corning’s method of doing business. Corning knew that by selling to these department stores the joint venture’s product would be presented to a variety of consumers who would see the value of their work at an affordable price, yet Vitro still found this move too risky. <br />Another difference these two organizations had was the degree of loyalty to the company. Corning had low organizational loyalty, which meant that people identified more with their occupation than their company, while Vitro had the opposite. Now, it is not being said that Corning employees were not loyal at all, but if any of them was offered a job with better pay and better benefits with another organization, he or she would take it. Vitro, on the other hand, has very high organizational loyalty, which stems from their hierarchal and bureaucratic structure and the loyalty to the family and its patrons. It was this high organizational loyalty that Vitro was able to accomplish its method of decision-making, cooperation, and formal methods of doing business that Corning practically conflicted with. Without this fundamental key, none of those methods would be possible.<br />Finally, in 1994 the joint venture concluded, and the $130 million dollars to start the venture was returned. To this day, Corning still investigates what it could have done differently. Both Vitro and Corning continue to do business together, not as a joint venture, but as a distribution of each other’s products. This case encourages other companies to obtain a full background of culture and management practices before entering into joint ventures and to either adapt to them or find common ground in those areas. <br />