2What 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?
3STRATEGY?A strategy is the specific means by which an organization will meet its objectives.INNOVATIONProduct30 Technology platforms30% of sales from products > 4 yrs oldCustomer ServiceKey AccountsIntegrated SolutionsOne voice, One face, One companyWhat is the innovation strategy being implemented at GMP Chile?
4Multi Products Chile: Changes Old Market Conditions?Internal changes?New Market Conditions?
5WHY SO DIFFICULT? Change Process Organizational changes: Changes in Chile:New competitionNew ways of operatingIncreased sophistication of customersDistributor changesOrganizational changes:Empowerment councilsTeams & teamworkReward systemSales rep roles & skillsNew positions (IS managers, key account leaders)Barriers:Product groupsDistributor based sellingHierarchyManagement attitudesRewardsCulture, politics, isolationDesired State:Key AccountsIntegrated SolutionsIncreased ProfitWHY SO DIFFICULT?
6Putting global strategies into practice is difficult! GLOBALIZATIONHQFOREIGNDIVISIONReplicate or Adapt?Don’t change & trainAdapt & learnPutting 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.
7A Brief History of Human Rights Violations in Chile Professor Harry LaneNortheastern University, Boston
8Salvadore Allende1970 wins election and forms a left wing “Marxist’ government“Reforms”Banking, insurance, communications, textiles and copper were nationalizedHostility by local business groups and USACapital flightInflation was 300% in 1973; cost of living increased 647% in 1972Anti-government strikes in 1972 and 1973
9Augusto Pinochet Coup d’etat Sept. 11, 1973 Military rule 1973–1990 130,000 arrests7,000 people held in national football stadiumtorture30,000 exiles in Western Europe3000 people killed or missing (los desaparecidos)Economic stability1990 – civilian government followed by a period of peace and prosperity
10Augusto Pinochet (continued) Arrested in London EnglandMarch 2000 – Determined to have irreversible brain damage and sent home to ChileJune 2000 – Chilean court strips him of immunity he held as a senatorJuly 2002 – Chilean Supreme Court rules he is mentally unfit to stand trialSeptember – Interrogated by a judge about human rights abuses and placed under house arrest
11Augusto Pinochet (continued) December 2004 – He suffers a strokeJanuary 2005 – A Chilean court finds him unfit to stand trialMarch 2005 – US Senate report claims US bank (Riggs Bank) helped him conceal his wealthOctober 2006 – Chilean judge ordered him placed under house arrestDecember 10, 2006 – Pinochet dies after suffering a heart attack; violence in the streets of Santiago; Chile still polarized
12Pinochet’s legacy Pros Cons Lucia Pinochet Returned property Economic stabilityPeaceful transition to civilian governmentModel economy of Latin AmericaConsHuman rights record3,000+ dead or missing“We live in a strong, safe Chile. I think if you look at the result of what myfather 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
13The Evolution of Chile: Prosperity for Some Chile: Tradition of DemocracyEffects of Pinochet’s DictatorshipChile’s New DemocracyTitle Name: The Evolution of Chile: Prosperity for SomeIn 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:
14Hofstede’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.INDIVIDUALISMThe 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 AVOIDANCEExtent 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.
15Cultural Differences Canada and Chile Implications for team work, bonus systems, and empowerment?