By: Kevin Ferrone Bob Cardarelli Linda Carter Globalization Expansion of Balk Inc.

Sound Business Strategy Globalization Why & How?

 Multinational (MNC)  1980 – 1K US organizations  Today – 20K US organizations  Companies that Import/ Export in US  1980 – 3K US organizations  Today – 90K US organizations Statistics Globalization

1 Create Urgency 2 Form a Powerful Coalition 3 Create a Vision for Change 4 Communicate the Vision  Kotter’s – 8 Step Change Model Managing the Change of Expansion Expansion 5 Remove Obstacles 6 Create short- term wins 7 Build on the Change 8 Incorporate into Corporate Culture

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. More Details Later(Theories) Theories

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. More Details Later(Global Leader) Competencies

Expanding Leadership Development BALK Balk Inc.

 Prepares high potentials for leadership positions in a corporate setting  Immersive Learning approach  Blended online and onsite program The BALK Program Balk Inc.

 Mission  Supply the business sector with “ready now” leaders  Vision  Bridge the gap between education and employment  Prepare learners stand out and excel in the workplace.  Values  “Recognized as the premier source of leadership development” Mission, Vision, Values Balk Inc.

 Opportunities  Revenue growth and business investments  Capitalize on globalization trend  Recognition for domain expertise, thought leader  Threats  Competition from local institutions  Changes in political climate  Unforeseen external circumstances  Risk Management Plan Risks and Benefits of Global Expansion Balk Inc.

BALK, CHINA China

 Challenges for a U.S. company in China  Cultural  Operational  Leadership Intervention Overview China

 Giving Opinions Cultural Challenges China

Party China

The Boss China

Handing Problems China

 Contracts  Signed contract is start of the negotiation  Trust is more important than signed agreements  Difference in conflict management lead to expectation discrepancies  Team Management  Clarify Roles  Offer multiple (less formal) avenues for feedback  Company culture and mission  They will look different! Culture – So What? China

 The Internet  Blocked websites & slow access to servers outside China  Asynchronous communication using the cloud is difficult  Marketing and Distribution Channels  Zhongjie (middle man)  Understand hierarchy  B2C is difficult and slow unless you have big $$$  The Government  Setting up can be long and unclear (prepare extra time and $)  “Rule by law” not “Rule of Law” Operational Issues China

1 Create Urgency 2 Form a Powerful Coalition 3 Create a Vision for Change 4 Communicate the Vision Kotter’s – 8 Step Change Model China 5 Remove Obstacles 6 Create short-term wins 7 Build on the Change 8 Incorporate into Corporate Culture

Germany BALK Germany

 Challenges for a U.S. company in Germany  Cultural Considerations  Labor Laws  Impact of Labor Issues Overview: Germany Germany

 Low Power Distance  Highly Individualistic  Masculine  Uncertainty Avoidant  Short-term Orientation Culture Germany Hofstede 5D Model Score Power Distance25 Individualism67 Masculinity/Femininity 66 Uncertainty avoidance 65 Long term orientation31

 Challenge to authority, expertise  Direct, honest, communication  Detailed planning and direction Cultural Issues in Practice Germany

 No employment “at will”  Regulated work week  Time out of office  Parental leave  Mass layoffs require government approval Labor Laws Germany

 Performance issues are unresolved, tolerated  Resources unavailable during “off hours”  Resources out of office for long durations Labor Laws in Practice Germany

National Cultural Dimensions Score Power Distance13 Individualism54 Masculinity / Femininity 47 Uncertainty avoidance 81 Long term orientation- Hofstede Model Israel

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. More Details Later Israel

Hofstede’s 5D Model Comparison Conclusion

1 Create Urgency 2 Form a Powerful Coalition 3 Create a Vision for Change 4 Communicate the Vision Kotter’s – 8 Step Change Model Conclusion 5 Remove Obstacles 6 Create short-term wins 7 Build on the Change 8 Incorporate into Corporate Culture

Questions and Answers… Q & A

 A review of our current products and profits.  [Year] sales research.  Proposed new products.  Costs on return and investment projections.  Terms and conditions.  Strategy and schedule.  Sales and marketing needs.  Questions and answers. Will decide later if we want these. References