This document provides an example of a critical incident analysis from the author's experience working for Motorola's international cellular business. It discusses the importance of understanding local culture to increase sales and reduce costs. The author describes how in Brazil, the IT staff created a custom cellular billing system in-house in 3 months at virtually no cost, whereas using an outside consultant likely would have been more expensive and taken longer. The key lessons are to utilize and appreciate local talent and resources to most efficiently achieve the goal of profit maximization.

1. Critical Incident AnalysisSeminar In International Business

2. Assignment

3. Critical Incident AnalysisMore than a simple “Cultural” story…Identify Situations where we need to be culturally “aware”…When confronted with a “Different” behavior, discipline yourself…..Think about “why” they behave that way…Learn from and improve continually…over a lifetime.

4. Some noteworthy examples from our class….

5. How it can impact our Business…Profit consists of two things: (Sales – Costs = Profits)Suggested Strategies:Understanding culture to Increase SalesEmbrace, appreciate, respect => opportunityUtilizing culture to Reduce CostsJoin in, take risks, adapt and become one with your local group.

6. My example: Motorola International Ventures DivisionOwners: of 26 Cellular Companies in Emerging Markets : (e.g. Mexico, Turkey, Brazil & the Dominican Republic)Mission: Go to emerging markets and start a new cellular company (to sell more phones & equipment eventually)Role: Business Development Director – South AmericaTask: Build a custom cellular billing system for a new service.

7. Custom Cellular Billing SystemTraditional Corporate WaySouth American Way (Brazil)Conduct needs analysisIdentify existing resourcesAnalyze CapabilitiesAnalyze CostsDecide to OutsourceWorld Class ConsultantsE.g. Accenture, BAH, Sema Group or similar firm.Discuss project with IT staffSolicit feedbackIT Manager and Staff create a in-house custom billing program for the new service3 months developmentVirtually no cost

8. Motorola Billing System CaseUse/pay Local Talent as they would be used by local firms (they are most efficient that way)Seek to optimize your use of local resources (HR, Expense Budget, Creativity, Risk Taking, Responsiveness)Always Consider the Main Equation:$PROFIT = REVENUE - EXPENSES

9. Comments??? Questions???