Case Study #$1$ Strategies and Memo $[10\%]$

This assignment relates to the following Course Learning Requirements:

CLR $1$: Explain the role that culture plays in international trade in securing a competitive advantage for a company

CLR $2$: Assess the cultural considerations of a proposed foreign business venture using appropriate information sources and methods of analysis

CLR $5$: Describe the basic elements of business ethics as they apply in a cross$-$cultural environment

Objective of this Assignment:

The objective of this assignment is to analyse and reflect on the cultural dissonance shown by a specific company and provide professional advice to move the company forward.

Pre$-$Assignment Instructions:

$-$ To prepare you for this assignment, read modules $1-5$ content and follow the embedded learning activities.

$-$ Read the following Case Study and relevant news for addition context.

Case Study

For the past three years, Ned Ferguson had served quite successfully as the manager of a U$.$S$.-$owned manufacturing company in Taiwan. Shortly after Ned$$s arrival in Taipei, he instituted a number of changes in plant operations that increased both production and worker satisfaction. However, within the last several months, a series of what seemed to Ned to be unrelated incidents, had occurred.

First, there had been a fire in the warehouse, which fortunately was contained before too much damage had been done. On the following day, the wife and two children of the local plant supervisor were killed in a spectacular automobile accident. Finally, within the past several weeks, there had been a rash of minor accidents on the assembly line; such situations were quite uncharacteristic of the plant$$s excellent safety record.

Ned heard that rumours were running rampant about the plant being cursed by evil spirits. Moreover, he knew that absenteeism had increased dramatically. To try to deal with these problems, Ned called together his chief supervisors. His American staff recommended that some experts from the insurance company come in to review the safety procedures, which, they argued, would show the workers that the company was taking their safety needs seriously.

But the Taiwanese supervisors considered this step to be inadequate and instead suggested that a local religious priest be brought in$,$ during company time, to pray for the workers and ward off any evil forces. Ned and his U$.$S$.$ staff though that such an action would do nothing but give official company support to superstition.

Ned has contracted you, an international culture consultant, to provide him with direction on what he should do$.$ There clearly needs to be a review of the safety standards. We know that this review alone will not satisfy the workers.

$($Adapted from Ferraro, G$.$ P$.,$ & Elizabeth, B$.$ K$,$ p$\mathrm{.}63)$