Description
In the file: working on Team #7 Strategy (Differentiation): Strategy/Home Country United States / Expanding to: South Korea see Appendix A and Table A-1So I want you to do and focus Onley in Task #1: Team Researchdo some research on it also to help you with its research, refer to the appendices C and D for research tips about major cultural differences and a description of the characteristics of Porter’s generic strategies.please do good research on it and on the organizational requirements. 2 or 3 pages
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Friendly & Fresh Foods
Winning the Battle when Expanding Internationally
to: Brazil, China, Mexico, and South Korea
Authors: V. Christian, J. Andreassi, T. Rua, M. Zhang
INTRODUCTION
Executing a successful international growth strategy has stymied the best and the brightest of
multinational enterprises (MNEs). Learning the idiosyncrasies of the new market, selecting the
right business model, making the proper cultural adaptations, and determining how to implement
the selected strategy to yield the greatest competitive advantage are time-consuming, yet critical,
not only to increase the likelihood of success but to avoid costly mistakes. This exercise does
not cover every aspect of the international expansion journey. Instead, it squarely focuses on
how management practices (e.g., human resource decisions) and cultural sensitivity must be
carefully aligned to support the business strategy adopted—differentiation or cost leadership.
TEAM ASSIGNMENT
Strategy/Home Country
Team #1 Differentiation:
United States
Expanding Assignment
to:
Brazil
see Appendix A and
Table A-1
Team #2 Cost Leadership: Canada
Brazil
see Appendix B and
Table B-1
Team #3 Differentiation:
China
see Appendix A and
Table A-1
Team #4 Cost Leadership: Canada
China
see Appendix B and
Table B-1
Team #5 Differentiation:
Mexico
see Appendix A and
Table A-1
Team #6 Cost Leadership: Canada
Mexico
see Appendix B and
Table B-1
Team #7 Differentiation:
South
Korea
see Appendix A and
Table A-1
South
Korea
see Appendix B and
Table B-1
United States
United States
United States
Team #8 Cost Leadership: Canada
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
1
THE EXERCISE
I.
Context of the Exercise
Rising Stars (up-and-coming employees) at Friendly & Fresh Foods (F & FF) are charged with
advising management about how the company’s North American-based grocery store chain’s
HR/management practices should be modified to increase business success in Brazil, China,
Mexico, or South Korea.
II.
Learning Objectives
By engaging in this activity, participants will:
:
•
recognize that successful international expansion requires decision-making on several
fronts, including selecting the competitive (business strategy) most likely to achieve
competitive advantage and aligning that strategy across the functional (operational) levels
of the firm, specifically the HR function;
•
practice how managerial approaches and talent management practices should be modified
under either a new different business strategy or because the host country’s cultural
norms are dissimilar from those of the home country;
•
gain confidence using Hofstede’s national cultural differences as one way to identify
major differences between the home and host country’s cultural norms;
•
gain confidence describing differences between cost leadership and differentiation in
terms of alignment of the HR function;
•
recognize that emerging economies hold huge promise, but pose unique challenges/risks
for those unfamiliar or dismissive of the host country’s cultural heritage and ways of
doing business; and
•
be able to formulate and defend in a managerially useful way their recommendations
based on country and cultural research.
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
2
APPENDIX A: INSTRUCTIONS FOR EMPLOYEE TEAMS GIVING ADVICE TO
SENIOR MANAGEMENT: U. S. BUSINESS MODEL
Recently you were selected to join Friendly & Fresh Foods’ Rising Stars program for up-andcoming employees. This recognition is richly deserved. As you recall, the program calls upon
its “rising stars” to provide senior management with fresh and compelling ideas regarding
particularly challenging projects facing senior management. As you are aware, you work for a
highly successful U.S. business that does specialty grocery retailing. However, our rivals are
becoming increasingly aggressive and innovative, especially niche grocery chains like Trader
Joe’s, Whole Foods, and Stew Leonard’s.
Over the past decade, Friendly & Fresh Foods has successfully expanded its operations to
different regions of the country and Canada, but we have not yet established operations outside
of North America. Senior management is convinced that Friendly & Fresh Foods’ business
model is exportable beyond North America. In fact, a prestigious consulting firm recently has
strongly recommended that the emerging economies of Brazil, China, Mexico, and South Korea
may be the business expansion opportunity to take on. But management does not want to fail in
its business entry in any of these new territories by naively assuming that success in those
countries should mirror the business strategy and policies employed here.
Therefore, we are soliciting advice from employees of our Rising Stars program to complement
the advice from the consultants. You are being placed in one of several employee teams to
present your ideas to senior management. You should view this as a serious competition among
your peers in the Rising Stars program. There are two tasks ahead. While your presentation can
take many forms, it would be advisable to do your research in a specific sequence to maximize
your (and our) learning about doing business in one of those emerging economies.
Task #1: Team Research
Our Strategic Planning department has developed a description of the U. S. business model,
which can be found at the end of these instructions, Table A-1. You are expected to describe
how it might need to be adapted to gain a successful business foothold in the country you have
been assigned to. [In doing so, you may feel that certain other aspects of the business model
require adaptation (e.g., product line, target market, ambience of the stores), and you are
encouraged to point those adaptations out.]
But the more time-consuming and significant part of Task #1 is to consider how the
organizational requirements would change when doing business in that new country. Because
“organizational requirements” may sound vague, you are reminded that it encompasses a great
many areas, including but not limited to organizational structure and hierarchy, motivating
employees, employee training, employee recruitment, employee retention, communication,
decision-making, compensation, and performance reviews.
Your team needs to probe in-depth how the cultural environment would suggest adaptations in
HR practices and procedures, chain of command (hierarchy) and communication, rules and
regulations, and employee requirements and expectations under the Fresh & Friendly Food’s
U. S. business model, which Michael Porter describes as focused differentiation.
:
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
3
To help your team with its research, refer to the appendices C and D for research tips about
major cultural differences and a description of the characteristics of Porter’s generic strategies.
Task #2: Team Recommendations
Now the fun part—the team gets to make its recommendations to Friendly & Fresh Foods’ senior
management, using the research conducted in Task #1. Formulate your team’s specific
recommendations regarding what adaptations of the U. S. business model are likely to be
necessary to increase the chances that Friendly & Fresh Foods will make a successful entry into
the new territory. You are expected to enumerate and comment on those cultural adaptations in
organizational requirements that would seem appropriate and specifically describe how the
policies would be tailored for the country you are assigned.
Make your presentation and research findings engaging and compelling. We look forward to
your innovative ideas as to how Friendly & Fresh Foods should go about gaining a sustainable
competitive foothold in Brazil, China, Mexico, or South Korea.
:
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
4
Table A-1: Friendly & Fresh Foods’ Business Model in the U. S.—Differentiation
Corporate Mission
•
•
Business Strategy
Competitive
Advantage
Target Market
•
•
Product Line
•
•
•
•
•
•
•
•
Ambience of Retail
Outlets
HR Practices (hiring,
training, reward
incentives, etc.)*
•
•
•
Employee
Requirements and
Expectations*
•
•
•
•
•
•
Rules and
Regulations*
Decision-making*
Chain of Command
and Communication*
•
•
•
•
•
To be the world’s best niche grocery chain, with the utmost respect for our
stockholders, employees, customers, and communities.
The company is environmentally conscious in terms of not using plastic bags
and encouraging use of reusable shopping bags.
Focused differentiation
High brand equity; unique and private-branded product line; novelty and
seasonal items; superior customer service
Upper middle-class adults with interest in unique, healthy, and easy-to-prepare
foods
There’s an emphasis on organic and healthy grocery items.
Frozen meals/fruits/vegetables are prominently featured.
Products typically carry F&FF labels, not manufacturer brand names.
Employees are super friendly, knowledgeable, and helpful to customers.
There are no self-check-out registers.
There’s a cozy, relaxed atmosphere—even a nostalgic feel to the stores.
Employees feel at ease kidding fellow workers, even about mistakes.
F&FF training is extensive with much give and take expected of participants.
The focus is encouraging employees to be innovative, open to recommending
change, and willing to take risks in moving the organization forward.
Only prior work references from non-family members are allowed.
Customers are encouraged to use a drop-box to vote for ‘employee of the
month.’
High school degree is a prerequisite for employment.
Referrals of family members strongly discouraged.
All employees must dress alike in Caribbean-style shirts, including the general
manager and the stocking crew.
Employees must be well-groomed.
Employees are promoted based on how innovative and assertive they are with
respect to new product ideas, enhancements to customer service, and
challenging the status quo.
Employees are expected to give constructive criticism to their fellow employees
and report major violations of policy to management.
There are few rules and regulations besides the ones related to the dress code
and making the customers happy.
Every full-time employee expresses his/her ideas for the top 3 products to
feature each week at a weekly meeting.
Decisions are made expeditiously and revisited as needed.
A very flat organization exists at the store level.
Communication is informal, including the playful tone of the store flyers.
*For this assignment, the asterisked categories can be considered examples of
organizational requirements that may change in support of different business strategies
and doing business in different territories. These management and HR policies and
procedures are where Friendly & Fresh Foods’ management is looking for the greatest
guidance from its Rising Stars’ teams.
:
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
5
APPENDIX B: INSTRUCTIONS FOR EMPLOYEE TEAMS GIVING ADVICE TO
SENIOR MANAGEMENT: CANADIAN BUSINESS MODEL
Recently you were selected to join Friendly & Fresh Foods’ Rising Stars program for up-andcoming employees. This recognition is richly deserved. As you recall, the program calls upon
its “rising stars” to provide senior management with fresh and compelling ideas regarding
particularly challenging projects facing senior management. As you are aware, you work for a
highly successful Canadian business that does specialty grocery retailing. However, our rivals
are becoming increasingly aggressive and innovative, especially niche grocery chains like
Safeway, Real Canadian Superstore, Loblaws, and Valu-mart.
Over the past decade, Friendly & Fresh Foods has successfully expanded its operations to
different regions of the U. S. and Canada, but we have not yet established operations outside
of North America. Senior management is convinced that Friendly & Fresh Foods’ business
model is exportable beyond North America. In fact, a prestigious consulting firm recently has
strongly recommended that the emerging economies of Brazil, China, Mexico, and South Korea
may be the business expansion opportunity to take on. But management does not want to fail in
its business entry in any of these new territories by naively assuming that success in those
countries should mirror the business strategy and policies employed here.
Therefore, we are soliciting advice from employees of our Rising Stars program to complement
the advice from the consultants. You are being placed in one of several employee teams to
present your ideas to senior management. You should view this as a serious competition among
your peers in the Rising Stars program. There are two tasks ahead. While your presentation can
take many forms, it would be advisable to do your research in a specific sequence to maximize
your (and our) learning about doing business in one of those emerging economies.
Task #1: Team Research
Our Strategic Planning department has developed a description of the Canadian business model,
which can be found at the end of these instructions, Table B-1. You are expected to describe
how it might need to be adapted to gain a successful business foothold in the country you have
been assigned to. [In doing so, you may feel that certain other aspects of the business model
require adaptation (e.g., product line, target market, ambience of the stores), and you are
encouraged to point those adaptations out.]
But the more time-consuming and significant part of Task #1 is to consider how the
organizational requirements would change when doing business in that new country. Because
“organizational requirements” may sound vague, you are reminded that it encompasses a great
many areas, including but not limited to organizational structure and hierarchy, motivating
employees, employee training, employee recruitment, employee retention, communication,
decision-making, compensation, and performance reviews.
Your team needs to probe in-depth how the cultural environment would suggest adaptations in
HR practices and procedures, chain of command (hierarchy) and communication, rules and
regulations, and employee requirements and expectations under the Fresh & Friendly Food’s
Canadian business model, which Michael Porter describes as focused cost leadership.
:
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
6
To help your team with its research, refer to the appendices C and D for research tips about
major cultural differences and a description of the characteristics of Porter’s generic strategies.
Task #2: Team Recommendations
Now the fun part—the team gets to make its recommendations to Friendly & Fresh
Foods’ senior management, using the research conducted in Task #1. Formulate your team’s
specific recommendations regarding what adaptations of the Canadian business model are likely
to be necessary to increase the chances that Friendly & Fresh Foods will make a successful entry
into the new territory. You are expected to enumerate and comment on those cultural
adaptations in organizational requirements that would seem appropriate and specifically describe
how the policies would be tailored for the country you are assigned.
Make your presentation and research findings engaging and compelling. We look forward to
your innovative ideas as to how Friendly & Fresh Foods should go about gaining a sustainable
competitive foothold in Brazil, China, Mexico, or South Korea.
:
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
7
Table B-1: The Business Model for Friendly and Fresh Foods in Canada—Cost Leadership
Corporate Mission
•
•
Business Strategy
Competitive
Advantage
•
•
Target Market
•
Product Line
•
•
•
•
Ambience of Retail
Outlets
•
•
HR Practices (hiring,
training, reward
incentives, etc.)*
•
•
•
•
•
Employee
Requirements and
Expectations*
•
•
•
•
•
•
Rules and
Regulations*
Decision-making*
•
•
•
Chain of Command
and Communication*
•
•
To be the world’s largest niche grocery chain, serving our stockholders, valueconscious customers, employees, and communities.
The company is committed to doing whatever it can to drive out costs from its
operations.
Focused cost leadership
High name recognition and market share, broad product line, including privatebranded product line; open 24/7; convenient online ordering, pickup or home
delivery service
Mass market, especially family shoppers with interest in finding a broad product
line of grocery items, including affordable and easy-to-prepare foods
Fresh-backed desserts and breads are prominently featured.
Most name brands are available as well as products carrying the F&FF label.
Buy-in-bulk quantities are featured.
Employees are well-trained for their specific job. They are expected to perform
their jobs efficiently; they are not expected to be knowledgeable about all the
store’s operations.
Self-check-out registers abound.
There’s a “big box” retailer atmosphere—row after row of product, few workers in
the aisles.
Most employees seem busy, but not overly enthusiastic about their jobs.
At times, supervisors reprimand employees in front of customers.
F & FF training is the industry average with little give and take expected of
participants. The focus is encouraging employees to be punctual, efficient, and
alert to cost savings ideas in moving the organization forward.
Only prior work references from non-family members are allowed.
Supervisors pick an ‘employee of the month’ based on achievement of efficiency
metrics.
High school degree is preferred for employment, but exceptions are common.
Referrals of family members are strongly discouraged.
Employees are expected to arrive on time for their shift.
There is no specific dress code, but employees are expected to be well-groomed.
Turnover is high because wages are low; however, employees tend to be promoted
based on how fast they work and how reliable they are.
Employees are discouraged from giving constructive criticism to their fellow
employees but are expected to report major violations of policy to their supervisor.
There are significant rules and regulations besides the ones related to being
punctual an adhering to the dress code.
Decisions are made expeditiously and revisited as needed, exclusively by
supervisors and managers.
Lower-level employees are seldom asked for their input regarding product line or
operational decisions.
A very hierarchical organization exists at the store level.
Communication is informal between co-workers and formal between workers and
management.
*For this assignment, the asterisked categories can be considered examples of
organizational requirements that may change in support of different business strategies
and doing business in different territories. These management and HR policies and
procedures are where Friendly & Fresh Foods’ management is looking for the greatest
guidance from its Rising Stars’ teams.
:
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
8
APPENDIX C: SOURCES TO EXPLORE CULTURAL DIFFERENCES
There is a wealth of information available to explore potential cultural differences. To follow are
several of the major frameworks and suggestions on some articles and websites that will help
you explore important cultural concepts relevant to your Rising Stars team tasks.
Hofstede cultural dimensions – The Hofstede Center website http://geerthofstede.com and
https://www.hofstede-insights.com/country-comparison/ allows for easy comparison between
cultures on the six dimensions of national culture framework, provides an explanation of each
dimension, and comments on what scores suggest for a given country. Make sure you find the
place on the website where you can directly compare your assigned country against the United
States and Canada. For rich and concise descriptions of Hofstede’s cultural dimensions, listen
and take notes of the late Geert Hofstede’s 10-minute videos for each of the six cultural
dimensions.
GLOBE Study – The Global Leadership and Organizational Behavior Effectiveness (GLOBE)
research was a project involving 62 nations and 170 researchers across the world. The research
explored nine cultural dimensions, some of which are the same as the Hofstede dimensions while
others are slightly different. Access information about the study via:
An excellent article which explains the GLOBE dimensions, how countries clustered together on
various dimensions, and then offers implications for management for four countries, including
Brazil, France, Egypt, and China.
Javidan, J., Dorfman, P., de Luque, M. & House, R. (2006). In the eye of the beholder:
Cross cultural lessons in leadership from Project GLOBE. Academy of Management
Perspectives, 20(1), 67-90.
Trompenaars and Hampden-Turner’s Seven Dimensions of Culture
• http://www.mindtools.com/pages/article/seven-dimensions.htm
• http://changingminds.org/explanations/culture/trompenaars_culture.htm
Search online to learn about the following terms:
• Guanxi
• high vs. low context communication
• the concept of Mianzi (“face”)
Search country, cultural information, and etiquette via sites such as:
•
•
•
•
•
:
www.cyborlink.com
www.executiveplanet.com
https://www.kwintessential.co.uk/resources
https://guide.culturecrossing.net
https://globesmart.aperianglobal.com/dashboard
Friendly & Fresh Foods—Adapted for WGB 650, 2/2/2024
9
APPENDIX D: DIFFERENCES IN ORGANIZATIONAL REQUIREMENTS BETWEEN
COST LEADERSHIP AND DIFFERENTIATION STRATEGIES
Generic Strategy
Commonly Required Skills
and Resources
Cost Leadership
•
Organizational Attributes
Sustained capital
investment directed at
cost control
•
Tight cost control
•
Frequent, detailed control reports
Pursuit of
Competitive
Advantage:
•
Process engineering
skills
•
Incentives based on meeting strict
quantitative targets
•
cost
savings
•
Intense supervision of
labor
•
•
efficiencies
•
Products designed for
ease of manufacture
A “mechanistic” organizational
structure—characterized by a highly
structured organization and set
responsibilities, with limited flexibility
•
•
Low-cost distribution
system
Production and operations are primary
focus of cost-efficiency initiatives—but
efficiency is stressed everywhere
•
Strong marketing
abilities
•
Strong coordination among functions in
R&D, product development, and
marketing
•
Product engineering
•
•
Creative flair
Subjective measurement and incentives
instead of quantitative measures
•
Strong capability in
basic research
•
Amenities to attract highly skilled labor,
scientists, or creative people
•
Corporate reputation
for quality or
technological leadership
•
An “organic” organizational structure—
characterized by a less formal
organization, one that supports and
encourages collaboration and creativity
•
Long tradition in the
industry or unique
combination of skills
drawn from other
businesses
•
Excel in customer service
•
Strong in understanding of consumers’
wants and needs
•
Marketing and R&D departments are
key
Differentiation
Pursuit of
Competitive
Advantage:
•
innovation
•
creativity
•
Strong relationship with
channel participants
Sources: Adapted from several sources, primarily strategy textbooks describing Michael
Porter’s generic strategies:
–Parnell, J. (2021). Strategic management, 6th ed. West Saint Paul, MN: Academic Media
Solutions.
–Rothaermel, F. (2023). Strategic management, 6th ed. New York, NY: McGraw-Hill.
:
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