Digital success of multinational firms in Brazil: a cultural explanation
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Presentation for the OneMBA global cohort at the Grand Hyatt Hotel in São Paulo, Brazil. October 2017.
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![Jorge Carneiro
Brazilian Society and Cultural Traits
2
Pedro Hofmeister
1. cultivation, tillage
We ought to blame the culture, not the soil. —Alexander Pope
1. the customary beliefs, social forms, and material traits of a racial, religious, or
social group; also
2. the set of shared attitudes, values, goals, and practices that characterizes an
institution or organization - a corporate culture focused on the bottom line
– […]: a total of 10 definitions: culture could be anything (or everything)
In business and in class, broadly blaming “culture” for successes
or failures might limit success and learning
Foreword
Culture according to the Merriam-Webster](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Why Does T
his Matter?
You are living in one of the most exciting times because of opportunities to work
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teams in India, videoconferencing or emailing with
customers or suppliers in China, or working in a
culturally diverse office in your hometown. The pos-
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The rapid growth in intercultural business con-
nections is driven by technological and cultural
forces of globalization. Technology has allowed
people to nearly instantaneously communicate with
people around the world, transact business, and
move capital. These technologies include the Inter-
net, the digitization of work, ATMs, credit cards,
smart cards, and GPS. Furthermore, convergence
of many business standards and platforms has
made conducting business easier and more predict-
able. These common standards and platforms in-
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agreements that specify rules for commerce (the
World Trade Organization and North American
Free Trade Agreement), and quality standards in manufacturing (e.g., supplier-customer
relationships driven by ISO 9000 quality standards). Also, many non-Western ex-
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Europe, creating a more homogeneous business culture around the world. 1
Throughout this chapter, you will see a variety of national cultures compared. The
countries selected for this chapter are among the most important trading partners for
the United States and Canada. In terms of trade volume, countries such as China
(including Taiwan), Mexico, Japan, the United Kingdom, and Germany dominate.
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What’s Your
Language Strategy?
It should bind your company’s global talent management and vision.
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ARTWORK Tomás Saraceno, Cloudy Dunes. When
Friedman meets Bucky on Air-Port-City, 2006Spotlight
LANGUAGE PERVADES EVERY ASPECT of organizational
life. It touches everything. Yet remarkably, leaders of
global organizations, whose employees speak a mul-
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in their approach to talent management. As we have
observed in countless organizations, unrestricted
multilingualism creates inefficiency in even the
most dedicated and talented workforces. It can lead
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ardize competitiveness (see also “Global Business
Speaks English,” by Tsedal Neeley, HBR May 2012).
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language can help transform that vulnerability into
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Choosing a lingua franca, or common language,
can dramatically improve how employees collabo-
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speak local languages and adapt to local cultures. For
another, individuals’ proficiency (or lack thereof) in
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about how suitable those people are for specific as-
signments and promotions. Decision makers may
undervalue or overvalue language skills and there-
fore misjudge talent.
We have learned through more than a decade of
Tsedal Neeley’s research on language in global or-
ganizations and teams, and more than 20 years of
Robert Kaplan’s leadership of global organizations,
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management. As a leader, you can factor language
and cultural skills more deliberately into the hiring,
training, assessment, and promotion of talent—and
into the management of global teams—whether PH
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70 Harvard Business Review September 2014
SPOTLIGHT ON MANAGING ACROSS BORDERS
or not your company adopts a shared language. Of
course, in a global firm, choices and tactics will vary
somewhat according to the needs of each unit and
region. But those differences must exist within a
cohesive system that allows employees to function
effectively across the organization and achieve key
strategic priorities.
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hope to penetrate various markets and coordinate
among them. You need to consider how to infuse
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cultures
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will have different pay structures to ensure discrimination
3. Designing a performance management system that is acceptable to both the firms.
4. Managing and merging the union contracts of both the firms
5. Designing policies that incorporate the requirements of both the firms into one.
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The document discusses managing diversity in the workplace. It defines diversity and cultural diversity, and lists various elements of diversity including age, gender, ethnicity, and other factors. It discusses ways to incorporate diversity such as recruiting from diverse talent pools. Managing diversity is defined as planning systems to maximize the advantages of diversity while minimizing disadvantages. The benefits of diversity in organizations include improved customer service, creativity, and competitive advantage in hiring. Some challenges of diversity are potential conflicts and costs of training, but ignoring diversity can also have negative consequences. Successful diversity management requires commitment from top management and diversity awareness training. Examples of diversity initiatives at Coca-Cola, a French flooring company, and McDonald's are provided.
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After studying this chapter, you should be able to do the following:
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leaders, and approaches to developing it.
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car03199_ch04_086-114.indd 86 29/11/12 4:00 PM
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O
H
N
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Why Does T
his Matter?
You are living in one of the most exciting times because of opportunities to work
and interact with people from across the globe. Only a few decades ago, few busi-
nesspeople worked closely with members of other cultures. Now, however, global
business connections have increased rapidly, and you will undoubtedly work across
cultures throughout your career. For example, you will probably have some chances
to travel internationally for work assignments. More frequently, however, you are likely
to work across cultures by collaborating with work
teams in India, videoconferencing or emailing with
customers or suppliers in China, or working in a
culturally diverse office in your hometown. The pos-
sibilities are immense!
The rapid growth in intercultural business con-
nections is driven by technological and cultural
forces of globalization. Technology has allowed
people to nearly instantaneously communicate with
people around the world, transact business, and
move capital. These technologies include the Inter-
net, the digitization of work, ATMs, credit cards,
smart cards, and GPS. Furthermore, convergence
of many business standards and platforms has
made conducting business easier and more predict-
able. These common standards and platforms in-
clude English as a global business language, trade
agreements that specify rules for commerce (the
World Trade Organization and North American
Free Trade Agreement), and quality standards in manufacturing (e.g., supplier-customer
relationships driven by ISO 9000 quality standards). Also, many non-Western ex-
ecutives are trained in business schools in the United States, Australia, and Western
Europe, creating a more homogeneous business culture around the world. 1
Throughout this chapter, you will see a variety of national cultures compared. The
countries selected for this chapter are among the most important trading partners for
the United States and Canada. In terms of trade volume, countries such as China
(including Taiwan), Mexico, Japan, the United Kingdom, and Germany dominate.
(See Table 4.1 for the most important trading partners of North America.) Of course,
you will likely work with business professionals, clients, or customers from many other
national backgrounds. Your business discipline, company, and industry will factor into
the national cultures wi ...
Evolutions in Intercultural Training
William Birdwell, intercultural expert, as well as founder and director of Birdwell Institute shares his views and opinions about the evolution in intercultural training in the past decade.
CREATING RELATIONSHIPS AND DEVELOPING SKILLS_PARTNERS in BUSINESS_Valter Alco...
CREATING RELATIONSHIPS AND DEVELOPING SKILLS_PARTNERS in BUSINESS_Valter Alco...Valter Alcoforado Barreira
Valter Alcoforado Barreira discusses the importance of social capital and how professional affiliations can help build social capital. Social capital refers to the support and resources available through social networks. Professional groups provide opportunities to develop both weak bonds with acquaintances to gain new information, and strong bonds with strategic contacts through shared activities and goals. Groups like the Portuguese-German Chamber of Commerce Young Entrepreneurs and Professionals allow members to expand their networks and access new opportunities outside their normal social circles. Barreira encourages reflecting on the benefits of involvement in professional groups to increase social capital.LWhat’s Your Language Strategy It should bind your com.docx
L
What’s Your
Language Strategy?
It should bind your company’s global talent management and vision.
by Tsedal Neeley and Robert Steven Kaplan
ARTWORK Tomás Saraceno, Cloudy Dunes. When
Friedman meets Bucky on Air-Port-City, 2006Spotlight
LANGUAGE PERVADES EVERY ASPECT of organizational
life. It touches everything. Yet remarkably, leaders of
global organizations, whose employees speak a mul-
titude of languages, often pay too little attention to it
in their approach to talent management. As we have
observed in countless organizations, unrestricted
multilingualism creates inefficiency in even the
most dedicated and talented workforces. It can lead
to friction in cross-border interactions, lost sales,
and a host of other serious problems that may jeop-
ardize competitiveness (see also “Global Business
Speaks English,” by Tsedal Neeley, HBR May 2012).
Developing a comprehensive strategy for managing
language can help transform that vulnerability into
a source of competitive advantage.
Choosing a lingua franca, or common language,
can dramatically improve how employees collabo-
rate across borders—even though it also introduces
new challenges. For one thing, the decision to adopt
a lingua franca must be balanced with the need to
speak local languages and adapt to local cultures. For
another, individuals’ proficiency (or lack thereof) in
the common language can cloud leaders’ judgment
about how suitable those people are for specific as-
signments and promotions. Decision makers may
undervalue or overvalue language skills and there-
fore misjudge talent.
We have learned through more than a decade of
Tsedal Neeley’s research on language in global or-
ganizations and teams, and more than 20 years of
Robert Kaplan’s leadership of global organizations,
that language strategy is critical for global talent
management. As a leader, you can factor language
and cultural skills more deliberately into the hiring,
training, assessment, and promotion of talent—and
into the management of global teams—whether PH
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70 Harvard Business Review September 2014
SPOTLIGHT ON MANAGING ACROSS BORDERS
or not your company adopts a shared language. Of
course, in a global firm, choices and tactics will vary
somewhat according to the needs of each unit and
region. But those differences must exist within a
cohesive system that allows employees to function
effectively across the organization and achieve key
strategic priorities.
Indeed, your language strategy must fit with
your firm’s value proposition to customers if you
hope to penetrate various markets and coordinate
among them. You need to consider how to infuse
language into your core talent practices in order to
deliver that value.
Hiring and Training
When seeking superb job candidates, recruiters at
global companies must be aware of potential blind
spots regarding language. First, they may allow flu-
ency ( ...
Global human resource_management
Globalization has increased workforce diversity and cultural sensitivities for organizations globally, leading to the development of global human resource management. HR must now consider the effects of diversity, legal restrictions, and training across cultures on the organization. The five main functions of global HR management are vital to a business's strategic operations. One function is creating local appeal while maintaining a global identity through cultural awareness training and cross-border hiring.
Dojo Interactive Public Slide deck
We help multinational companies boost retention and recruiting power by providing a dynamic language learning service that will help them be part of the team.
Diversity Intelligence Project Plan
This document provides an executive summary and overview of a project to develop a website called "Diversity Intelligence" that will provide cultural information to help with international business dealings. It discusses the project team members and their roles. It then summarizes the contents and organization of the project management documentation, which covers the nine knowledge areas of project management: requirements, scope, time, cost, quality, communication, human resources, risk, and stakeholder management. Finally, it provides high-level descriptions of the types of cultural information that will be included on the website, such as greetings, business culture, cultural "fit", and government policies of different countries.
This text was adapted under a Creative Commons Attribution-
This text was adapted under a Creative Commons Attribution-
NonCommercial-ShareAlike 3.0 License without attribution as requested
by the work’s original creator or licensee.
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://creativecommons.org/licenses/by-nc-sa/3.0/
International HRM
Things Weren’t What They Seemed
When your organization decided to go “global” two years ago, the executives didn’t know what they were
getting into. While the international market was attractive for your company’s product, the overall plan
wasn’t executed well. The organization was having great success selling its baby bath product in the
domestic market, and once that market was saturated, the organization decided to sell the product in
South America. Millions of dollars’ worth of research went into product marketing, and great success was
had selling the product internationally. It was only when the organization decided to develop a sales
presence in Peru and purchase a company there that the problems started. While market research had
been done on the product itself, the executives of the company did little research to find out the cultural,
economic, and legal aspects of doing business in that country. It was assumed that the Peru office would
run just like the US office in terms of benefits, compensation, and hiring practices. This is where the
strategy went wrong.
Many cultural aspects presented themselves. When executives visited the Peru office, the meeting was
scheduled for 9 a.m., and executives were annoyed that the meeting didn’t actually start until 9:45 a.m.
When the annoyed executives started in on business immediately, the Peruvian executives disapproved,
but the US executives thought they disapproved of the ideas and weren’t aware that the disapproval came
from the fact that Peruvians place a high emphasis on relationships, and it was rude to get down to
business right away. When the executives walked around the office and spoke with various employees,
this blunder cost respect from the Peruvian executives. Because Peru has a hierarchical structure, it was
considered inappropriate for the executives to engage employees in this way; they should have been
speaking with management instead.
Besides the cultural misunderstandings, executives had grossly underestimated the cost of compensation
in Peru. Peru requires that all employees receive a bonus on the Peruvian Independence Day and another
on Christmas. The bonus is similar to the monthly salary. After a year of service, Peruvians are allowed to
go on paid vacation for thirty calendar days. Higher benefit costs were also an issue as well, since Peru
requires workers to contribute 22 percent of their income to pension plans, and the company is required
to pay 9 percent of salaries toward social (universal) health insurance. Life insurance is also required to be
paid by the employer after four years of service, ...
Activity 6 Presentation - International Human Resources (15 Poi.docx
This document discusses the importance of diversity training in international human resources. It provides an example of a PowerPoint presentation analyzing how cultural diversity and cross-cultural awareness impact international HR management. The presentation recommends training employees to work with those from diverse cultures and includes references and examples of diversity training activities and assessments.
A survey of large Latin American firms showed that many have expande.pdf
A survey of large Latin American firms showed that many have expanded into international
markets through mergers and acquisitions. As a result, they now face problems in cultural
differences and staffing. How would you focus HR leaders on the development of positive
strategies for expansion? What HR issues do you think deserve the most attention? What steps
can HR professionals take to ensure that the firms’ mergers and acquisitions are successful?
Solution
Q1) Below is how HR leaders can focus on the development of positive strategies for expansion
-
1. Cultural differences in recuiting and staffing
2. Company wide employee related policies that need to be kept same as headquarters and those
that need to be tweaked for the foreign countries
3. Country\'s labor laws and regulations with respect to minimum pay, benefits etc.
4. Training and development of workers
Q2) Below are the HR issues that deserve most attention -
1. Labor exploitation and wage issues
2. Unavailability of skilled and trained workers/employees
3. Organizational structure
4. Cultural and language issues.
5. Performance management
6. Policy issues
Q3) Below are the steps that HR professionals can take to ensure that the firms\' mergers and
acquisitions are successful -
1. Identifying the cultural differences between both the employees in the firm and developing
communication and training programs to ensure they understand and respect each others\'
cultures
2. Ensuring the compensation structure is designed and managed effectively as both the firms
will have different pay structures to ensure discrimination
3. Designing a performance management system that is acceptable to both the firms.
4. Managing and merging the union contracts of both the firms
5. Designing policies that incorporate the requirements of both the firms into one.
TechBA Roadshow 2008
The document provides an overview of expanding into the US market, focusing on Silicon Valley. It discusses the environment and culture of Silicon Valley, common mistakes in new market expansion, and an effective 9-step process for expansion. The process involves finding a product that solves a big problem, analyzing the market, defining a marketing strategy, validating the concept and sales strategy, scaling operations, building the right team, establishing a legal structure, protecting intellectual property, and planning for continuous innovation.
pptx.pptxpptx.pptxpptx.pptxpptx.pptx.pptx
The document discusses managing diversity in the workplace. It defines diversity and cultural diversity, and lists various elements of diversity including age, gender, ethnicity, and other factors. It discusses ways to incorporate diversity such as recruiting from diverse talent pools. Managing diversity is defined as planning systems to maximize the advantages of diversity while minimizing disadvantages. The benefits of diversity in organizations include improved customer service, creativity, and competitive advantage in hiring. Some challenges of diversity are potential conflicts and costs of training, but ignoring diversity can also have negative consequences. Successful diversity management requires commitment from top management and diversity awareness training. Examples of diversity initiatives at Coca-Cola, a French flooring company, and McDonald's are provided.
Going global starts with local brian solis and expion
How localization and contextualization increases brand engagement in important markets..
Integrating social media into a global marketing strategy presents unique challenges. With multitudes of countries, thousands of employees and language/cultural barriers, how do today’s Top Global Brands deploy their social strategy effectively?
Brian Solis and Peter Heffring will share the strategies and implementations tactics the leading global companies use to manage their social presence across different countries and markets.
Brian’s research shows that localizing social content for specific markets and cultures dramatically multiplies the impact in terms of engagement, virality and actual sales.
Peter will detail how technology has finally caught up to support Global Brands and the multiple strategies they use to form country communities and retain a unified brand presence on a global scale.
IATEFL BESIG 2011 Annual Conference Keynote Speaker
This document provides information about the IATEFL BESIG Annual Conference, including a plenary talk by Jeremy Comfort on intercultural competence for business English learners. The talk will explore distinguishing between briefing on a culture and understanding different cultures in business. It will also discuss the skills needed, such as observing, reflecting and learning from other cultures. Most importantly, the talk will address having an attitude of embracing cultural diversity as an opportunity rather than obstacle for companies.
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Digital success of multinational firms in Brazil: a cultural explanation
- 1. Jorge Carneiro Brazilian Society and Cultural Traits 1 Digital success (or not) of US firms in Brazil: a cultural explanation Pedro Hofmeister October 25th , 2017 Sao Paulo Class of 2018
- 2. Jorge Carneiro Brazilian Society and Cultural Traits 2 Pedro Hofmeister 1. cultivation, tillage We ought to blame the culture, not the soil. —Alexander Pope 1. the customary beliefs, social forms, and material traits of a racial, religious, or social group; also 2. the set of shared attitudes, values, goals, and practices that characterizes an institution or organization - a corporate culture focused on the bottom line – […]: a total of 10 definitions: culture could be anything (or everything) In business and in class, broadly blaming “culture” for successes or failures might limit success and learning Foreword Culture according to the Merriam-Webster
- 3. Jorge Carneiro Brazilian Society and Cultural Traits 3 Pedro Hofmeister Two large and famous US multinationals had a green field B2B business in Brazil; Decided to startup a new fast-growing, innovative, disruptive consumer business using leading digital and e-commerce tech; Part of a global project, outlined with the help of consultants, led by global teams Global diverse people, from different nationalities led, planned and executed both projects One was an extreme success, the other failed A cultural explanation will follow: Two tales of US multinationals in Brazil One success, one failure: why?
- 4. Jorge Carneiro Brazilian Society and Cultural Traits 4 Pedro Hofmeister Two tales of US multinationals in Brazil Different stories Industry Consumer Electronics. Computer Hardware. Insurance. Consumer Lines/P&C. Characteristics Product. Low margins. Global competition. Commoditized. Tax incentives for local manufacture. Service. Higher margins. Protected by written and non- written regulation. Large availability of capital/investment. Geographic location (cultural implications) HQ in the South (Porto Alegre). HQ in São Paulo. Transformation New segment. Standardized platform/practices. Several existing assets. New segments. Inability to standardize. From zero. Leadership Foreign, combine technical skills and diverse int’l experience, MBA education. Foreign, diverse, combine technical skills and specific int’l experience, industry success.
- 5. Jorge Carneiro Brazilian Society and Cultural Traits 5 Pedro Hofmeister Two tales of US multinationals in Brazil Different stories Implementation Designed by consultants (MarketMotive/Kaushik). Implemented by internal team – committed to the proj. of their careers Designed and implemented mostly by consultants (Bain, McKinsey, Accenture, Sapient) – one more project. Local Team Selected based on int’l experience and language command (communication). Clear company core competences. Selected based on technical skills and local market experience. Incentives Clear goals. Objective performance review based on official metrics and competences. Grades defined within team. Shifting goals. Space for self- defined metrics. Discussed at “round-table”. Grades adjusted after manager submission.
- 6. Jorge Carneiro Brazilian Society and Cultural Traits 6 Pedro Hofmeister Culture is to blame: A multiple regression perspective, fixing for endogeneity Independent variables Dependent variables National culture dimensions (Hofstede): regional and individual differences Revenue growth: 300x in 3 years. Break-even faster. Corporate culture: Incentives: results driven, team spirit, fairness/integrity Intervening variables Large bonus, promotions. Public recognition by Global CEO. Power and responsibility: org. structure, internal teams CULTURE SUCCESS Friends > Enemies at the office Results > Politics Relax > Stress People: soft skills > hard skills Happier happy hour, beer tastes like winning. Leadership: attentive, open, dialogue with US and Brazil, able to manage and influence all above upwards and downwards Get home tired, but in great spirit. Enjoy life/family. Be happy.
- 7. Jorge Carneiro Brazilian Society and Cultural Traits 7 Thank you for your attention Pedro Hofmeister phofmeister@onemba.org