1. Global Multi-Products Chile
Innovation Strategies
Cross-Border Implications

2. What is Multi-products' strategy?
What specific systems or programs is it using to implement this strategy?
What environmental changes have taken place in Chile?
What internal changes have been made at Multi-products Chile?
What were the barriers to change? How did they operate as barriers?

3. STRATEGY?
A strategy is the specific means by which an organization will meet its objectives.
INNOVATION
Product
30 Technology platforms
30% of sales from products > 4 yrs old
Customer Service
Key Accounts
Integrated Solutions
One voice, One face, One company
What is the innovation strategy being implemented at GMP Chile?

4. Multi Products Chile: Changes
Old Market Conditions?
Internal changes?
New Market Conditions?

5. WHY SO DIFFICULT? Change Process Organizational changes:
Changes in Chile:
New competition
New ways of operating
Increased sophistication of customers
Distributor changes
Organizational changes:
Empowerment councils
Teams & teamwork
Reward system
Sales rep roles & skills
New positions (IS managers, key account leaders)
Barriers:
Product groups
Distributor based selling
Hierarchy
Management attitudes
Rewards
Culture, politics, isolation
Desired State:
Key Accounts
Integrated Solutions
Increased Profit
WHY SO DIFFICULT?

6. Putting global strategies into practice is difficult!
GLOBALIZATION HQ
FOREIGN
DIVISION
Replicate or Adapt?
Don’t change & train
Adapt & learn
Putting global strategies into practice is difficult!
Must understand company’s (home country) strategy and management systems AND history and culture of host country if strategy and systems are to be implemented.

7. A Brief History of Human Rights Violations in Chile
Professor Harry Lane
Northeastern University, Boston

8. Salvadore Allende
1970 wins election and forms a left wing “Marxist’ government
“Reforms”
Banking, insurance, communications, textiles and copper were nationalized
Hostility by local business groups and USA
Capital flight
Inflation was 300% in 1973; cost of living increased 647% in 1972
Anti-government strikes in 1972 and 1973

9. Augusto Pinochet Coup d’etat Sept. 11, 1973 Military rule 1973–1990
130,000 arrests
7,000 people held in national football stadium
torture
30,000 exiles in Western Europe
3000 people killed or missing (los desaparecidos)
Economic stability
1990 – civilian government followed by a period of peace and prosperity

10. Augusto Pinochet (continued)
Arrested in London England
March 2000 – Determined to have irreversible brain damage and sent home to Chile
June 2000 – Chilean court strips him of immunity he held as a senator
July 2002 – Chilean Supreme Court rules he is mentally unfit to stand trial
September – Interrogated by a judge about human rights abuses and placed under house arrest

11. Augusto Pinochet (continued)
December 2004 – He suffers a stroke
January 2005 – A Chilean court finds him unfit to stand trial
March 2005 – US Senate report claims US bank (Riggs Bank) helped him conceal his wealth
October 2006 – Chilean judge ordered him placed under house arrest
December 10, 2006 – Pinochet dies after suffering a heart attack; violence in the streets of Santiago; Chile still polarized

12. Pinochet’s legacy Pros Cons Lucia Pinochet Returned property
Economic stability
Peaceful transition to civilian government
Model economy of Latin America
Cons
Human rights record
3,000+ dead or missing
“We live in a strong, safe Chile. I think if you look at the result of what my
father did, you will understand that he did what had to be done.”
Lucia Pinochet
“The damage he has done to this country is too great for his retirement to heal. Our scars are too great.
Luisa Toledo, mother of 3 victims of execution

13. The Evolution of Chile: Prosperity for Some
Chile: Tradition of Democracy
Effects of Pinochet’s Dictatorship
Chile’s New Democracy
Title Name: The Evolution of Chile: Prosperity for Some
In just 25 years, Chile has gone from a Marxist state to a dictatorship to a democracy. The transition has strengthened Chile’s economy, but not all Chilean citizens have shared in the prosperity. In fact, the divisions between rich and poor have widened, causing critics to question whether democratic capitalism is the right solution. As the scenario unfolds, so do the moral issues surrounding the economic path Chile has chosen. Using Chile as a case study, this program examines these issues, and the difficulties experienced by other Third World nations also riding the tidal wave of post-Cold War economic reforms. (29 minutes)
Length: 29mins To view this video, click on the link below:

14. Hofstede’s comparison: CANADA CHILE POWER DISTANCE
Extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.
Value placed on egalitarianism. Lack of overt status and/or class distinctions in society.
Intermediate. Organizational arrangements show taller pyramids and low degrees of delegation. Hierarchical social structure, rigid social classes. Common cafeterias are rare, privileges for power-holders common.
INDIVIDUALISM
The degree of interdependence a society maintains among its members.
Individualistic culture. Expectation that people look after themselves and immediate families. Employees are expected to be self-reliant and display initiative.
Collectivist culture. While shifting in organizations some paternalistic practices still remain in place.
MASCULINITY: Driven by competition, achievement and success.
FEMININITY: Caring for others and quality of life.
Moderately masculine. Subdued respect for achievement, success and winning. Tend towards work-life balance.
Feminine. People need a sense of “belonging”, place value on warm interpersonal links and tacitly search for approval of their group. Tend to be supportive team members.
UNCERTAINTY AVOIDANCE
Extent to which members feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these.
Uncertainty accepting. Easy acceptance of new ideas, willingness to try something new or different. Tolerant of ideas or opinions, allow freedom of expression.
Uncertainty avoiding. Strong need for rules and elaborate legal systems to structure life. Great dependence on experts and authorities, particularly among non-managerial employees.

15. Cultural Differences Canada and Chile
Implications for team work, bonus systems, and empowerment?