1

Projects Compilation

Course Facilitator
Prof Manzoor Iqbal Awan, Col (R)
Faculty Member and Senior Consultant * USQ (Australia), COMSATS & NUML * Bahria, Air & Preston Universities * University of Lahore * Dual Matrix Inc. &MDi Cell: +92 300 854 3122
Email: profmanzoorawan@yahoo.com&awan9ff@gmail.com Profile: www.linkedin.com/in/manzooriqbawan

CONTENTS AT A GLANCE
Group Group Composition
1 2 3

Topic for Comparison

-

Pages
3 4 5-25 26-39 40-67 68-94 95-116 117-143 144-171

Compilers Note Note from the Course Facilitator MirzaGhous (Leader) BasharatJamil NajeebUllah SamanNaseem(Leader) Saba Gul Aqsa Shehzadi KaneezAmna Humaila Khan(leader) FaizaJamil NabeelZaman Inam-Ul-Haq SamiaRehman(Leader) Hamza Ashraf Muhammad Ehtasham Talia Waqar (Leader) Baber Ikram IzharAbrar HaseebBharwana HaseebGul Sidra Talat (Leader) ShiffaZakria Ghulam Mustafa Shahbaz Mughal UmairBasit

PROCTOR & GAMBLE VS UNILEVER

PRESENTATION SLIDES

SAMSUNG ELECTRONICS VS HAIER

PRESENTATION SLIDES

A COMPARISON BETWEEN KFC & MC DONALDS

PRESENTATION SLIDES

JAPAN VS RUSSIA

PAKISTAN VS INDIA
PRESENTATION SLIDES

172-210 211-240

COMPARISON BETWEEN SAMSUNG & SONY

PRESENTATION SLIDES

241-278 279-295

Compiler's Note
I feel privileged to work under the supervision of Sir Manzoor Awan. The compilation work which was assigned to me has been completed successfully. It took a lot of hard work & commitment to complete this task. By the time it was completed, I learnt a lot about doing things in order. My first experience has turned out to be a great experience. As I go back, I remember raising my hand in the class as a volunteer to do the editorial work. I was chosen and assigned to do this task. The compilation work therefore involved making a record of all the groups in class. It was mandatory for all groups to complete their respective project reports and hand those over to me for compilation and amendments. The soft copies of all the reports were sent to me via email by each group leader. I was successful enough to gather all the reports along with the presentation slides. I began compiling them all together in a sequence and finally compiled them in a single word document. The biggest advantage of such a document is the ease of digging out data in an efficient manner, when required. In the end, I offer my sincere gratitude to Sir Manzoor Awan. Without his guidance and efforts, it would not have been possible. I would also like to thank Samia Rehman, our Class Representative; she has been very supporting and motivating as a Co-Compiler. Hence, as students of (Air University), we seek great opportunities ahead. We are very confident that one day we will rise and become a sense of pride for our belovednation.

Haseeb Gul BBA-5B

Teachers Note
I have now been associated with the Air University Islamabad Campus for over 5 years, and have come to realize that, like all academic institutions of excellence, Air University strives to provide a conductive environment for intellectual growth aimed at producing future business leaders with ability to think out of the box. Taking full advantage of that and with a strong faith in the abilities and potential of our youth, the students of Bachelors of Business Administration 5th Semester Section B (during Fall 2012 semester) were encouraged to complete challenges projects related to comparative management practices two large entities; either multinational corporations or countries as such. They not only attempted these assignments with fair degree of rigor, producing interesting and relevant project reports, but also successfully conducted valuable discussions in the class as part of our overall learning drive. One can find many a faults with their project reports. I, however, believe that there is a need to appreciate such first attempts by these budding business professionals in researching and then sharing the fruits of their toil with others on the distinction in management practices in the international arena and the factors underlying these. What is of special significance is the attempted originality of effort/work, and that this could serve as a humble beginning towards attaining greater learning in the future. These reports could also be improved through further study and research by the students that follow. It is with this thought that these write ups are being compiled for appropriate distribution and uploading for digital access. It will be unfair if the efforts put in by Mian Haseeb Gul and Samia Rahman in completing this compilation assignment are not acknowledged. The final product amply speaks of their hard work and creative talent. I wish the contributing students as well as the compilers success. May Allah Almighty be their guide. Ameen.

Prof Manzoor Iqbal Awan, Col (R) Faculty Member and Senior Consultant * USQ (Australia), COMSATS & NUML * Bahria, Air & Preston Universities * University of Lahore * Dual Matrix Inc. &MDi Cell: +92 300 854 3122 Email: profmanzoorawan@yahoo.com&awan9ff@gmail.com Profile: www.linkedin.com/in/manzooriqbawan Islamabad 31st December 2012

Comparative Management Final Project

Submitted to: Mr. MANZOOR AWAN Submitted by: Basharat Jamil (100811), Najeeb Ullah (100875) & Mirza Ghous (100851)

Table of Contents
Proctor and Gamble Overview to the company Unilever Company overview Vision and Mission of Proctor and Gamble Mission and vision of Unilever Organizational Culture of P&G Analysis of Values & Principles of P & G Core Values P&G People Leadership Ownership Integrity Passion for winning Trust Organization Culture of Unilever Cultures Dominant Features Principles of P&G Principals of Unilever Code of Business principles Standard of conduct Obeying the law Employees Consumers Shareholders Business partners Community involvement Public activities The environment Innovation Competition Business integrity Conflicts of interests

Table of Content (Contd...)

Various Product Segmentation of Proctor and Gamble Beauty and Grooming Health Products Fabric Care Other Products Various product segmentation of Unilever Food brands Home care brands Personal care brands SWOT Analysis of P&G Strengths Weaknesses Opportunities Threats Swot analysis of Unilever Eyes on the Future (P&G) Shareholders (P&G) Organizational Structure of P&G Global Business Units Market Development Organizations

8
Global Business Services Corporate Functions Organizational Structure of Unilever COMPETATOR ANALYSIS PROCTER & GAMBLE AND UNILEVER Competitor Analysis: P&G Competitor Analysis: Unilever Conclusion Bibliography

Proctor and Gamble

Over view of the company:
Proctor and Gamble was founded by Two brothers in law in 1837 .There Name were William Proctor and James Gamble. This company is one of the biggest names in consumer goods products. P&G operates in around 85 countries in all around the globe and also in the market it has about 300 different brands or product in more than 150 countries. About 50% of company's profit is derived from in a foreign country .The Trademark of P & G company is moon and star since 1851 as a symbol of quality to distinguish their products from its competitors. P&G was headed by family members in the beginning. But in 1930 and 1959, Mr. William Dupree become its president and chairman respectively. Under him the company become USAs Largest package good seller.

Unilever
Overview of the company:
Unilever was created in 1930 by the merger of British soap maker Lever Brothers and Dutch margarine producer Margarine Unite, a logical merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities. Unilever has been present in the North Africa and Middle East region since 1933, a year which saw the appointment of the Binzagar family as the companys agent within Saudi Arabia while in the same year Unilever also entered the Egyptian market. In 1954 Unilever made its first foray in the Maghreb market with the launch of Omo in Algeria, from France, through a local partner followed by an entry into Morocco in 1960 and Tunisia in 1961. In 1992 Unilever came on-shore in the Arabia Peninsula with the setting up of an office in Dubai and in the same year Lever Egypt was formed as a Joint-Venture with the Fine Foods Company, a member of the Rachid Group. In 1999 Lever Egypt and Fine Foods Group merged to form Unilever Egypt.

Vision and Mission of Proctor and Gamble:

VISION of P&G is to become a leading consumer goods company and to improve the lives of consumers by providing valuable and innovative products. Ten years ago Procter and gamble started the journey to improve the lives of Pakistani consumers by providing them with world famous quality brands. P&G want to be an outstanding organization with a passion for winning that would felt by everyone every day; in the office, in the field everywhere P&G vision is to lead business growth by proactively identifying opportunities and positively contributing to volume growth. We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales,

10

profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.

Mission and vision of Unilever:

The four pillars of our vision set out the long term direction for the company where we want to go and how we are going to get there:

We work to create a better future every day. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for the world.

We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact

Organizational Culture of P&G

Analysis of Values & Principles of P & G:

P&G is for people and the values by which they live. P & G always try to attract and hire the best workforce in the globe. They try to create there company from inside by various employees incentives like rewarding and promoting the employees without look upon to difference unrelated to performance. The always proceed on the confidence that the people working in Procter and Gamble will forever be there most valuable and important asset. Proctor and Gamble respects their employees, customers, and consumers, and take care of them as they wanted. P&G Company has always full confidence on each other goals and capabilities. They believe that people work best when there is a foundation of trust. P&G always believe that the staff or employees always try to give their best where there is sense or foundation of trust.
10

11

Core Values: P&G is its people and the Core Values by which they live.

P&G People: They attract and recruit the finest people in the world. They build their organization from within, promoting and rewarding people without regard to any difference unrelated to performance. They act on the conviction that the men and women of Procter & Gamble will always be their most important asset. Leadership: They are all leaders in their area of responsibility with a deep commitment to deliver leadership results. They have a clear vision of where they are going. They focus their resources to achieve leadership objectives and strategies. They develop the capability to deliver their strategies and eliminate organizational barriers. Ownership: They accept personal accountability to meet the business needs, improve their systems and help others improve their effectiveness. They all act like owners, treating the Companys assets, as their own and behaving with the Companys long-term success in mind.

Integrity: They always try to do the right thing. They are honest and straightforward with each other. They operate within the letter and spirit of the law. They uphold the values and principles of P&G in every action and decision. They are data based and intellectually honest in advocating proposals, including recognizing risks.

Passion for winning: They are determined to be the best at doing what matters most. They have a healthy dissatisfaction with the status quo. They have a compelling desire to improve and to win in the marketplace.
11

12

Trust: They respect their P&G colleagues, customers, and consumers and treat them, as they want to be treated. They have confidence in each others capabilities and intentions. They believe that people work best when there is a foundation of trust.

Organization Culture of Unilever:

All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Unilever employees must not seek gain for themselves or others through misuse of their positions. Day-to-day responsibility is delegated to the senior management of the regions and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by the Audit Committee of the Board and the Corporate Risk Committee. Any breaches of the Code are reported in accordance with the procedures specified by the Joint Secretaries. The Board of Unilever never criticizes management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The Board of Unilever expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles. Provision is made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so

12

13

Principles of P&G
These are the principles and supporting behaviors, which flow from their Purpose and Core Values. They show respect for all individuals. The interests of the Company and the individual are inseparable. They are strategically focused in their work. Innovation is the cornerstone of their success. They are externally focused. They value personal mastery. They seek to be the best. Mutual interdependency is a way of life.

Principals of Unilever: Our code of business principles describes the operational standards that everyone at Unilever follows, wherever they are in the world. It also supports our approach to governance and corporate responsibility. Code of conduct: We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect the legitimate interests of those with whom we have relationships. Obeying the law: Unilever companies and our employees are required to comply with the laws and regulations of the countries in which we operate.

13

14

Employees: Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. Consumers: Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labeled, advertised and communicated. Shareholders: Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. Business partners: Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. In our business dealings we expect our partners to adhere to business principles consistent with our own. Community involvement: Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our responsibilities to the societies and communities in which we operate.

14

15

Public activities: Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Environment: Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation: In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. We will work on the basis of sound science, applying rigorous standards of product safety. Competition: Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Business integrity: Unilever does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management.

15

16

Conflicts of interests: All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Unilever employees must not seek gain for themselves or others through misuse of their positions.

Corporate Social Responsibilities of P&G:

At P&G, we believe in giving back to the communities we live in. Corporate social responsibility is close to P&Gs heart. P&G has developed and runs several initiatives and programs in line with the global cause Live, Learn and Thrive, aimed at helping improve lives of children in need.

Various Products Segmentation of Proctor and Gamble:

Beauty and Grooming: Soaps = Pears, Camay. Perfumes and Deodorant = Rexene, Gucci Fragrance, La-Costa. Shampoos = Pantene, Rejoice, Head & Shoulders etc. Beauty Products = Olay, Old spice.

Health Products: Oral B, Crest, Vicks.

Fabric Care: Tide, Arial, Side Bar

Other Products:
16

Food = Crisco, Folgers, Pringles etc. Duracell. Water purifier. Mach.

17

Various product segmentation of Unilever

Food brands: Badami, Blue Band, Brooke Bond A1, Brooke Bond Supreme, Cornetto, Energile Fruttare, Knorr, Lipton, Magnum, Pearl Dust , Rafhan, Unilever Wall's Desserts, Wall's Heartbrand, Wall's Kid's Range Home care brands: Comfort, Domex Toilet Expert Kills All Sickness Causing Germs, Rin Sunlight, Surf Excel, Vim. Personal care brands: Clear, Close Up, Dove, Fair & Lovely, Lifebuoy shampoo, Lifebuoy soap, Lux, Pond's, Rexona, Sunsilk, Vaseline.

SWOT Analysis of P&G

Strengths:
The main Strength of P&G is there working on large level. It is a one of the biggest leader for different product categories like home products, fabric, baby, beauty products, health products and personal care items in most of the countries of world.

The second significant strong point of P&G is there famous Brand name along with convenient low pricing policy of commodities.

17

Gross Margin 15 Times the Industry Average.

18

One of the best marketers in the world.

Diversified brand portfolio: more than 300 brands with more than 79 billion in Revenue.

P&G has their products in almost all shops so it is very easy to calculable to all type of customer whether they are rich or not.

Product innovation.

Talented management

P&G invests large amount of money in their research and development. About $1.8 billion is invested by P&G for getting better and introducing new products in the market.

Tightly integrated with the largest retailers in the US and around the world.

Distribution channels all over the world.

Weaknesses:
Many of the top brands of P&G are losing their market share rapidly due to increase in competition by coming of Unilever, Johnson and Johnson etc.

P&G do not create or offer any personal brand products for their retailers and customers and thus missing an opportunity of widening there product.

Expansion for brands is limited.

Lagging behind in online media presence & leadership.

18

19

Opportunities:
An opportunity for P&G is health and beauty products for men. With the acquisition of Gillette, the company now has several growth opportunities in this market segment.

As P&G has lot of monetary resources which can be invested in other market segments like electronics, medicine etc.

P&G has also big opportunity to increase their sales using the online social networks and internet marketing like advertising on Facebook, My space, Yahoo etc.

Threats:
Due to emergence of Kimberly Clark, Unilever and other big companies there is serious competition for P&G in Fast moving Good market.

The competitors of P&G are using different type of advertising and marketing strategies due to which competitors products are diverse day by day.

In todays market there are many P&G products substitute or replacement are available at cheaper price.

Due to recession in past 2 to 3 years the customers purchasing power has decreased in all countries. And also the prices of raw materials also increase due to increase in petrol and diesel price.

19

20

Swot Analysis of Unilever

STRENGTHS: Strong company image Strong brand portfolio Success of the slogan Quantity & variety Effective & attractive packaging High quality man power Solid base of the company Innovative aspects Corporate behavior Health & personal care

WEAKNESSES: High prices of products Substitutes products Policy of spending for the social responsibility Lack of control in the market Dual leadership Decrease in revenues Reduced development spending for research &

OPPORTUNITIES: Changing life style of people New markets Increase the volume of production Focus on R&D Low income consumers Help in improving people diet & daily lives

THREATS: Competitors (P&G,) Political effects Legislative effect Environmental effect Economic crises Obstacle faced

Eyes on the Future (P&G):

P&G's growth achievement include Doubling unit volume every year. Achieving share growth in the majority of its categories. Delivering total shareholder return that ranks P&G over time among the top third of its peer group.

20

21

Most importantly, P&G's goal is to continue to provide products of superior quality and value to the world's consumers. As a result, P&G's business, people, shareholders and the communities in which they live and work will prosper.

Shareholders (P&G): Shareholders are important stakeholders at P&G. P&G has 1.3 billion shares of stocks outstanding. Large institutions and mutual funds, retirement programs, individual investors and employees throughout the world own these shares. Individuals hold approximately 50 percent of their shares, with nearly 20 percent held by employees and retirees. They work to increase the value of P&G stock for all their shareholders in a variety of ways, including growing the companys sales and earnings each year. They measure for tracking their success for shareholders is total shareholder Return (TSR).

Organizational Structure of P&G: Four pillarsform the heart of P&Gs organizational structure. Global Business Units. Market Development Organizations. Global Business Services. Corporate Functions.

Global Business Units: It focuses solely on consumers, brands and competitors around the world. They are responsible for the innovation pipeline, profitability and shareholder returns from their businesses.

21

22

Market Development Organizations: Market Development Organizations are charged with knowing consumers and retailers in each market where P&G competes and integrating the innovations flowing from the GBUs into business plans that work in each country. Global Business Services: It utilizes P&G talent and expert partners to provide best-in-class business support services at the lowest possible costs to leverage P&Gs scale for a winning advantage. Corporate Functions: Ensure ongoing functional innovation and capability improvement. Through this study, we have looked into the P&Gs organization matrix structure and how does its structure facilitate the achievement of its goals and to some extent, this structure is effective. However, in a context of complex, rapidly changing and highly competitive global environments, an organization has to adapt quickly in order to take advantage of opportunities that arise anywhere in the world. And the need for rapid innovation cannot be ignored as well. So turning to a boundary less structure which has higher environmental responsiveness may be a better option for P&G.

Organizational Structure of Unilever:

The formal arrangements of job within an organization. The structure that can be shown visually in organizational chart. Managers are involved in organizational design when they create or change structure.

22

23

COMPETITOR ANALYSIS PROCTER & GAMBLE AND UNILEVER

Competitor Analysis: P&G

P&Gs competitive advantages arise from several key factors, one of which is innovation. Spending $2B annually on R&D and deploying approximately 7,500 researchers in technical centers around the world, P&G is a leader in innovation. They have 29,000 patents, and over the past eight years, have introduced the #1 or #2 new non-food products in the US. Key to their success is knowledge sharing and cross-borders replication of innovations, reducing costs and quickly expanding the company knowledge and line offerings. Another factor contributing to their competitive advantage is their large scale operations and go-to-market capabilities that provide first mover advantage and limit the ability of competitors to copy ideas and replicate them. Additionally, economies of scale and scope in purchasing, distribution, business services and merchandising provide financial and trade advantages. Lastly, P&G is well known for its brand management and brand leadership capabilities, which are significant advantages for customer loyalty and market penetration. Supplementing their innovations, facilitating their rapid go-tomarket capabilities, as well as their customer and partner management is P&G's significant use of IT and tracking systems, including CRM, EDI, and RFID, that improve R&D speed and capabilities, communications, information tracking and sharing, and inventory management. In order to sustain their competitive advantage, P&G must continue to utilize their acknowledged strengths, as well as continue to exploit international growth, especially in emerging markets, as P&G is currently overexposed in the US and Western Europe.

P&G is spending millions of dollars in R&D worldwide, while they have R&D cells in the countries in which the operations of business are going on. These R&D cells are responsible to identify the technological breakthrough, taking place in these countries. They are mostly customer oriented for which they test the products in the market and then introduce it to the whole target market.

23

24

Competitor Analysis: Unilever

Unilever's competitive advantages arise from strong brand recognition, such as Dove and Bird's Eye, strong R&D initiatives for line expansion, and leading brands in personal care, deodorant and personal wash. Their renewed focus on strong line expansion (especially after reducing their number of brands from 1600 products to approximately 400 in 2003), and alliances with strong corporate partners such as Pepsi are also advantages. In order to sustain their competitive advantage, Unilever has several issues to resolve, and earnings reported in two venues, Euro and Dollars. This complexity increased costs, and impacted opportunities for efficiency economies of scale and scope, not to mention the potential concern in transparency in reporting. For future sustainability, Unilever needs to continue their operational enhancements, including additional outsourcing when needed, add line extensions with core brands while guarding against negative impacts should an extension fail, look to mergers and acquisitions to support their growth and development, protect against exchange rate fluctuations, and continue to expand globally.

24

25

Conclusion
This comparison clearly shows why P&G is a leader in the industry. Unilever can learn from P&G and further develop itself as a leader. There is considerable opportunity for Unilever to strengthen its profitability and sustainability; however it will require strong discipline and careful analysis in terms of pursing appropriate acquisitions and divestitures, cost reduction programs, product and brand differentiation initiatives, and alignment of strategies.

Furthermore, we conclude that a strong and appropriate mission goal promotes the development of the business model which is mainly focused on bottom-line successes such as achieving continuing profits, market growth in shares, defense of industry leadership positioning and employee welfare development. By reviewing the P&G companys Mission Statement and there Strategic Management process we conclude that P&G is one of the leader in FMCGs industry and it maintain its success by widening its product worldwide. Its Mission Statement shows that all employees, HR Department and Customers are most important assets for P&G Company. By its strategic management strategies we conclude that P&G has healthy relationships with government, retailer customers and other authorities. We also conclude that from time to time a P&G companys vision and mission statement require being check and changed in accordance in the changing environment and changing conditions of the market and consumer taste so P&G can continue to stay relevant and successful.

25

26

Bibliography
www.google.com www.unilever.com www.p&g.com www.wikipedia.com www.ask.com www.uniliver.com.pk www.p&g.com.pk

26

27

27

28

28

29

29

30

30

31

31

32

32

33

33

34

34

35

35

36

36

37

37

38

38

39

39

40

SAMSUNG ELECTRONICS vs HAIER ELECTRONICS

Comparative Management Final Project

Submitted to: Mr. MANZOOR AWAN Submitted by: SAMAN NASIM: 100865 SABA GUL: 100857 KANEEZ AMNA: 100869 AQSA SHEHZADI: 100827
40

41

TABLE OF CONTENTS

HISTORY OF SAMSUNG HISTORY OF HAIER ORGANIZATIONAL CHART OF SAMSUNG ORGANIZATIONAL CHART OF HAIER CULTURE OF SAMSUNG CULTURE OF HAIER SAMSUNGS GLOBEL CODE OF CONDUCT HAIERS GLOBEL CODE OF CONDUCT CORPORARE SOCIAL RESPONSIBILITY OF SAMSUNG CORPORARE SOCIAL RESPONSIBILITY OF HAIER SAMSUNG POLITICAL ENVIRONMENT HAIERS POLITICAL ENVIRONMENT ECONOMIC ENVIRONMENT OF SAMSUNG ECONOMIC ENVIRONMENT OF HAIER SAMSUNG TECNOLOGICAL ENVIRONMENT HAIER TECNOLOGICAL ENVIRONMENT SWOT ANALYSIS OF SAMSUNG SWOT ANALYSIS OF HAIER COMPARITIVE ADVANTAGE OF SAMSUNG COMPARITIVE ADVANTAGE OF HAIER SAMSUNGS CORPORATE GOVERNES HAIERS CORPORATE GOVERNES CONCLUSION BIBLIOGRAPHY

41

42

WORK DISTRIBUTION

MEMBERS
SAMAN NASIM

WORK
Prepared Samsung report Compile and Edit project Edit presentation Presentation Prepared Haier report Prepared Haier report Presentation Prepared Haier report

CONTRIBUTION 100% 100% 80% 33.33% 33.33% 20% 33.33%

SABA GUL AQSA SHEHZADI KANEEZ AMNA

42

43

HISTORY Samsung:
Samsung group is South Korean multinational conglomerate company, headquartered in Samsung Town, Seoul, founded in 1938.Oh-Hyun Kwon is CEO and Vice Chairman of Samsung. It has more than 196 subsidiaries in world. There are numerous industrial subsidiaries of Samsung which includes following: Samsung Electronics Samsung Heavy Industry (shipbuilder) Samsung Engineering and Samsung C&T (construction companies) Samsung Techwin (weapons industry) Samsung Life insurance Samsung Ever land (the oldest theme park in South Korea)

Samsung produces a fifth of South Koreas total exports. The company has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "Miracle on the Han River. Samsung started to rise as an international corporation in the 1990s.Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chipmaker after Intel. It comprises around 80 companies.

43

44

Samsung Electronics:

Samsung Electric Industries was established as a subsidiary of Samsung Group in 1969 in Suwon, South Korea. It is a multinational electronics and information technology company. It manufactures following products: Air conditioners Computer Digital televisions Liquid crystals displays Mobile phones Monitors Refrigerators Semiconductors Telecoms Networking Equipment

It is world largest mobile phone makers; with a global market share of 25.4%.It is also worlds second largest semiconductors maker. Samsung electronics has sales networks in 31 countries with 221000 employees. Samsung established a prominent position in Tablet computer maker. Samsung Group established another subsidiary, Samsung-NEC, jointly with Japan's NEC
44

45

Corporation to manufacture home appliances and audiovisual devices. By 1981, Samsung had manufactured over 10 million black-and-white televisions. In 1983 Samsungs founder declared that Samsung intended to become a DRAM (dynamic random access memory) vendor. In 1988, Samsung Electric Industries merged with Samsung Semiconductor & Communications to form Samsung Electronics. In 1981 it launched its first mobile phone. Samsungs mobile phone division also struggled with poor quality and inferior products until the mid-1990s.In 2009, Samsung achieved revenues of US$117.4 billion, overtaking Hewlett-Packard to become the world's largest technology company measured by sales. In 2000s its net earnings was higher than 5%,this was at a time when 16 out of the 30 top South Korean companies ceased operating in the wake of the unprecedented crisis. Now in first quarter of 2012, Samsung became the highestselling mobile phone company. The company focuses on four areas: digital media, semiconductor, telecommunication network, and LCD digital appliances.

LCD and LED panels: In 2004 Samsung was worlds largest manufacturer of OLEDs, with 40% market shares but in 2010 it acquires 98% shares of global market. Semiconductors: Samsung Electronics has been the world's-largest memory chip maker since 1993.It succeeded in 2010 in mass-producing 30 nm-class DRAMs and 20 nm-class NAND flashes. Market researchers predicted that Samsung will become worlds biggest semiconductor chips suppliers by 2014 when it surpasses Intel. Samsungs compound annual growth rate in semiconductor revenues has been 13.5 percent, compared with 3.4 percent for Intel.

45

46

Televisions: Samsung sold around 31 million flat-panel televisions. In March 2010 it launched its first full HD 3D LED television. Samsung sold more than one million 3D televisions within 6 months of its launch. In 2007 Samsung introduced the Internet TV.

HAIER ELECTRONICS:
Haier is the worlds no. 1 brand in home Appliances. Zhang Ruimin is the founder of the Haier. It is worlds no.1 brand in Refrigeration and home laundry appliances. In 2004 Haier Company initiated its commercial operations. Haier provides innovative products. They design products according to customers need. Haier also introduced BMR technology. Haier Electronics Group Co., Ltd. is an investment holding company. Through its subsidiaries, the Company is engaged in the manufacture and sale of washing machines and water heaters, as well as the provision of integrated channel services, including the provision of logistics services and distribution of home appliances and other products. The company operates in three segments: washing machine business segment, which manufactures and sells washing machines; water heater business segment, which manufactures and sells water heaters, and integrated channel services segment, which provides logistics, after-sale and other value-added consumer services, as well as sells and distributes home appliances and other products Haier has 29 manufacturing bases and 8 research and development centers. It has 60000 employees. In last year company global market share was 6.1% and it increases day by day. Haier has also delivery centers in all countries and cities. Haier quickly meet customers need/demand and staff is closely related to market target. Haier also sold appliances of other international brand such as HP and GE.

46

47

Products: Deep freezers Juicer & blenders Refrigerator TV Toasters/oven Sandwich makers Washing machines/dryers Water dispenser Water heaters Iron etc.

Personal Views: Samsung is large and diverse MNC than Haier. These companies are competing only in the category of home appliances. Samsung is South Korean while Haier is Chinese MNC. Many people have this concept about Chinese companies that they produce cheap and duplicate low
47

48

quality products. Beside this Haier is gaining a good position in home appliances. If Haier wants to become a perfect competitor of Samsung, it must introduced mobile phones and telecom networking equipments.

ORGANIZATIONAL CHART & STRUCTURE

48

49

Organizational Structure

Haiers Organizational Chart & Structure

49

50

CULTURE Samsungs Culture:

Vision and Mission Statement: Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich peoples lives, and continue to make Samsung a digital leader.

Values of Samsung: We believe that living by strong values is the key to good business. The core values at Samsung are followings: People: Samsung gives a wealth of opportunities to its people to reach their full potential. Because they believe that a company is its people. Excellence: Everything done at Samsung is driven by an unyielding passion for excellenceand an unfaltering commitment to develop the best products and services on the market. Change: In todays fast-paced global economy, change is constant and innovation is critical to a companys survival. As Samsung have done for 70 years, they set their sights on the future, anticipating market needs and demands so they can steer their company toward long-term success.

50

51

Integrity: Operating in an ethical way is the foundation of business. Everything they do is guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-prosperity: A business cannot be successful unless it creates prosperity and opportunity for others. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where they operate around the globe.

Vision and Mission:

The vision and mission of Haier is to become the industrial leader and the most competitive and consumer preferred home appliance solution provider. Haiers culture is the core of innovation. Haier gradually developed unique cultural system. In Haiers culture, active participation is most significance feature. The companys goal is to become world famous brand of China. Haier develop their employees to achieve its world famous brand goals.
51

52

SAMSUNGs Values It talk about: Prosperity and opportunity for others Standards of business Global economy Unyielding passion for excellence Potential and wealth of employees

HAIERs Values It talk about the following things: Focus on customers Entrepreneurial spirit & creativity of business Sustainability growth

Values of Haier Haier has following core values within their company: Customer oriented: Haier constantly focusing on a customer in all areas of their business philosophygoals and visions, customers support, marketing strategies and their website. Development focus: It includes entrepreneurial spirit and creativity regarding to their businesses. Interest driven: Haier give Guarantee for the Sustainable Growth. It provides resource and system support for every employee to be enterprising and innovative. Personal Views: If we look at the mission and vision statement of both MNCs, Samsung has more catchy and attractive statement as compare to Haier. SAMSUNGs vision and mission Develop innovative technologies & efficient processes HAIERs vision and mission Want to become industrial leader

Its not new about Haier that they want to become industrial leader. Each and every company wants to become an industrial leader. To attract more customers Haier has to modify its Mission
52

53

& Vision statement. Todays is the era of advancement in technologies and efficiency of processes, so customers get more attracted towards the statements in which innovative words are used like efficiency and technology.

Differences in Values of Samsung and Haier: Samsung takes the wealth and satisfaction of its employees as a first and most important element. They have more emphasis on employees full potential, while Haier has more focus on its customers as compare to its employees.

GLOBAL CODE OF CONDUCT

Global Code of Conduct at Samsung: Samsung follows 5 principles in their Global Code of Conduct. Principle 1: Samsung comply with all law and ethical standards. They respect the dignity and diversity of individuals. They compete in accordance with the law and business ethics. They maintain transparency of accounts with accurate recording of transactions. Samsung do not get involved in politics and maintain neutrality. They protect information on individuals and business partners.

Principle 2: Samsung maintain a clean organizational culture. They make a strict distinction between public and private affairs in duties. They protect and respect the intellectual properties of the company and others. Samsung create a sound organizational atmosphere.

53

54

Principle 3: Samsung respect customers, shareholders and employees. They put priority on customer satisfaction in management activities. They pursue management focused on shareholder value. Samsung endeavor to improve their employees quality of life.

Principle 4: They care for the environment, health, and safety. Samsung pursue environment friendly management. They value the health and safety of human begins.

Principle 5: They are a socially responsible corporate citizen. Samsung sincerely execute basic responsibilities as a corporate citizen. They respect the social and cultural values of local communities and practice prosperous co-existence. They build relationships of co-existence and co-prosperity with our business partners.

Global Code of Conduct at Haier:

Employment and work place Equal employment opportunity: Haier believe that employment should be based on an individuals ability, personal characteristics and beliefs. They provide working environment free of discrimination, harassment religious political disability.
54

55

Forced labor: They dont use any prison, slave or forced labor in manufacturing of their product.

Child labor: Haier dont use child labor under the age of 16.or the age at which school is compulsory.

Hours of labor: They maintain reasonable employee work hours. Overtime allowed accordance to local law.

Compensation: They fairly compensate their employees by including minimum wage laws, or the prevailing local industry wage, whichever is higher.

Health and Safety: They maintain a safe, clean and healthy environment. They provide medical facilities, clean restrooms, and ventilated workplace. Haier also provide housing for their employees.

Concern for the Environment They believe that their duty is to protect the environment so they follow environmental laws and regulations.

Ethical Business Practices Sensitive Transactions Haier entertain their customers with the proper and save procedure of our company. They prohibit employees from receiving, directly or indirectly any benefit from the other persons Accounting Controls, Procedures and Records They accurately keep books and records of all transactions. They ensure that transactions with proper management approval are accounted in their books.

55

56

Use and Disclosure of Inside Information They strictly prohibit disclosed information of company with inside and outside of the company

Fraud and Similar Irregularities They strictly prohibit unlawful practices. That affects their customers and suppliers, as well as the Company. They follow certain procedures to investigate unlawful activity.

Monitoring and Compliance They have the third-party monitoring program to monitor Code of Conduct. Monitoring activities include factory inspection, review of books and records relating to employment matters and individuals interviews with employees.

CSR (CORPORATE SOCIALRESPONSIBILITY)

Samsungs CSR:

56

57

In January 2009 the CSR Liaison Office was created which reports directly to the CEO. Executives of CSR (Corporate Social Responsibility) hold discussion on how to address and resolve major CSR issues and questions posed by external stakeholders. The recent rise in CSR related inquiries from external stakeholders has increased the need for timely and transparent information disclosure. Samsung Electronics set up a new external request handling system to facilitate communication with stakeholders. In 2010, they received 96 requests from external stakeholders. Samsung effectively responded to these inquiries through cooperation with the HR, environment and IR departments. Now they are expanding the scope of issues covered in the Sustainability Report and information disclosure via the Web to communicate CSR issues more effectively.

Haiers CSR: Haier Group launched activities of Green Sail in environment to protect sustainable development of the global industries. Haier provides environment-friendly product for the consumer in 160 countries. Haier has held a series of public activities e.g. the launch of the Earth Hour. In America, Haier was awarded with Community Contribution Award. Haier helped to fight against the nature disaster with the people in Cuba, Indonesia, and Malaysia and so on. Haier also launched activities of Green Sail in Sports. In 2008, the group became the first official appliance sponsor of the 2008 Beijing Olympic Games. Haier people and the whole society shall become one. Haier group will to be true forever. Haier Group launched activities of Green Sail in charities to share the care and devotion with the whole world.

57

58

In China, Haier launched activities to deliver needed materials to disaster stricken areas. The funds and appliances that Haier has donated to the public have reached to 500 million. In America, Haier was awarded with Community Contribution Award. In Australia, Haier funded the association of Breast Cancer in Sydney. Besides this, Haier helped to fight against the nature disaster with the people in Cuba, Indonesia, and Malaysia and so on. Haier Group launched activities of Green Sail in education to satisfy Teenagers thirst for knowledge. Haier started to participate in the Project Hope. At the end of 2011, the number of the Hope Project School was up to 145.In 2010; it held the activity of Haier Hope Project School coming into Expo, which shows Haiers devotion to the society.

Personal Views: Both MNCs are environmental friendly. They take care of environment and wealth of peoples. SAMSUNG has CSR Liaison Office which HAIER launched the activities of Green Sail to hears environmental issues and reports directly protect the development of global industries. to the CEO. SAMSUNG want to protect environment and health of people by introducing environmentfriendly products, while HAIER wants to protect global industries by giving-environment friendly products. Both provide friendly products for but for different purposes. I think that SAMSUNG is more effective in CSR because they are more conscious about health of people.

58

59

POLITICAL ENVIRONMENT

Samsungs Political Environment: There is no special political influence from the Government on the company. But as a foreign company to the United States, Samsung is obliged to function under standard set of principles for foreign companies in the US. This includes tax, regulated governance and integrated management to manufacture their products according to the taste of the United States customers.

Haiers Political Environment: In early 1999, Haier thought about launching its American entry. Clinton government encourages or invites the China investment. Furthermore South Caroline provides a good business environment to Haier such as low price for land and made many favorite terms and regulation to allure foreign capital. The most impressive policy was to offer a preferential tax for foreign companies. But there were also some restrictions. Their production as well as their product should be environmental friendly and energy saving. Europe is a common market and shares same or similar set of values and political systems. It is fair to say that Europe is a highly homogenous market. Europe has enjoyed security and political stability for a very long time, since the end of The Second World War.

59

60

ECONOMIC ENVIRONMENT

Samsungs Economic Environment:

In 2008 Samsung earned 19.2 billion US dollars. There was an increase of 7 billion US dollars when compared to the 12.9 billion net profits of 2007. This creates a huge financial gap between Samsung and its rival companies. This has given them a competitive edge over their company in terms of publicity, research, promotion and advertisement. The CEO, Mr. Lee, stated that satisfaction is not a guarantee; it should be given to the customer. This is one of the ways the company uses to encourage sales and promote brand royalty. Samsung has a total asset worth 302.9 billion in US dollars across the globe. Globally, Samsung is financially stable. The biggest threat was the recent global recession which threatened sales in US. But, with customers going back to market, there is a dramatic increase in sales once more.

Haiers Economic Environment: Powered by the sales of its refrigerators and washing machines, Haier Appliances (India) Pvt Ltd, expects to overtake in the first six months of 2011. The company, which claims to have outpaced the growth of the white goods industry, however, expects the growth rate to moderate going forward though it would still be far higher than its competitors. Speaking to Business Line, Mr. Eric Braganza, President, Haier India, said that while the company made around 5 lack refrigerators during 2010, in the current year (2011) this would nearly double to 9.2 to 9.3 lack units. During 2012, he seemed confident of achieving a production of 1.5 million refrigerators. Similarly, in the case of washing machines, he expected production to touch one lack units, from around 30,000 units during the current calendar year.

60

61

TECHNOLOGICAL ENVIRONMENT

Samsungs Technological Environment: With new innovative products, Samsung has won the hearts of their customers. They provide the best, sophisticated and cutting edge innovative technological products to their customer. Samsung has developed and edged over their competitors with much investment in research and technological advancement.

Haiers Technological environment: Honeywell and Haier will work collaboratively on new technology that will make household appliances, intelligent home systems, residential heating, building automation, and mass transit more efficient and cleaner. Shane Tedjarati, CEO of Honeywell China and India said that, "More than 50% of our product portfolio is related to energy and energy efficiency. We believe we can apply our expertise in energy-efficiency, intelligent buildings systems, and automation and controls to help Haier manufacture products that will benefit both their customers and the environment.

Personal Views: Both MNCs have no special issues with Political and Technological environment. But if we talk about Economic environment SAMSUNG has strong and better economy than HAIER. Because South Korea is more developed as compare to China.

61

62

SWOT ANALYSIS

Strengths of Samsung and Haier:

SAMSUNG
Well diversified and differentiated products Design with an attracting styling that interests customers Continuous growth of high market shares Brand value through multiple sponsorship

HAIER
High end products are well accepted Good market share in western India Strong presence in home appliances segment Big distributors are stocking many of Haiers product

9.2: Weaknesses of Samsung and Haier:

SAMSUNG
Focus on mass market instead of niche market High investment on research and development Increasing competition

HAIER
Very weak distribution network in central India Weak service agent network Weak logistics as a result accumulation of trade stocks and aging stocks Sales seasonality in specific segment hindering growth.

Opportunities of Samsung and Haier:

SAMSUNG
Increasing on electronics consumer market Strong customer demand for innovative products

HAIER
North-east a potential market is still largely untapped Mobiles and cellular phone market offers new growth opportunities SPIN(Situation, Problem, Implication,
62

63

Need) selling strategy for HECs Consumer electronics segment is booming and set to grow at 14% CAGR, Haiers product offerings catering to this segment are limited Small appliance market set to grow Tie up with big retailers will help in growth High disposable income and higher number of Nuclear Families

Threats of Samsung and Haier:

SAMSUNG
Low cost Chinese competitors New nanotechnology may replace Samsungs technology

HAIER
Medical Freezers are not selling. Product portfolio is weak Overall weak distribution network compared to competitors Only selected products are selling from the entire Product Portfolio

Personal Views: As Haier is a small MNC than Samsung so it has more opportunities and threats. Major strength of Samsung is diversified, differentiated and stylish products, while Haier has its major strength in home appliances. Nanotechnology is a big threat for Samsung while Haier has threats about its product line and weak distribution channels.

63

64

COMPETITIVE ADVANTAGE
Samsungs Competitive Advantage Samsung has following competitive advantage: It is technologically driven niche products. It has strong infrastructure. Samsung has wide range of product line. It has high brand value. Samsung has attractive pay, bonuses and incentives. It has higher yield than competitors. It has higher economic scale and economic scope. It is financially strong.

Haiers Competitive Advantage: Haier has following competitive advantage: Haier is recognized as a worldwide brand. On January 31, 2004, the firm ranked 95th after such names as Coca-Cola, McDonalds, and Nokia, which were the top three on the World Brand Laboratorys list of 100 most recognizable brands. Haier was the only Chinese brand on the list. According to an October 2003 article in the Harvard Business Review, Haier is one of the five Chinese National Brands to watch. As one of Chinas fastest-growing companies, Haier Group fits a 1999 Gallup survey profile for a successful company. Customer service, product quality, operating efficiency, innovation, and speed to market are among the top seven factors for success. Haier excels in all these areas to achieve success; the company developed its corporate culture, business strategy, management-control system, which enforces firm work rules and discipline.
64

65

CORPORATE GOVERNESS
Samsungs Corporate Governess At Samsung Board of Directors is the corporation highest decision-making body. They are assigned the oversight and fiduciary responsibilities under the Korean Commerce Act and the Samsung Electronics Articles of incorporation. Qualified shareholders can submit proposals to the company through BOD, which then presents them on the agenda at the General Shareholders Meeting for consideration and approval. The outside Directors recommendation committee selects the experience candidates and then submits their final candidates for the approval of shareholders at the general shareholders meeting. Haiers Corporate Governess: The BOD at Haier recognizes that sound corporate practices are crucial to the efficient operations of the Company and its subsidiaries. In this regard, the Board attaches great priority to reinforce the Companys Corporate Governess standards with emphasis on transparency, accountability and independence in order to enhance long-term share-holders value. The Board has established four committees to oversee the specifics aspects of Companys affair, which includes: Audit Committee:

They ensure the objectivity and credibility of financial reporting. Remuneration Committee:

They make recommendations to the Board on policy and structure of all remuneration of Directors and Management. Nomination Committee:

This committee is responsible for formulating nomination policy and making recommendations to the Board on nomination and appointment of Directors and Board succession. It develops selection procedures for candidates. Strategic Committee:

Its purpose is to prepare recommendations for the Board in fulfilling its responsibilities. These committees regularly reports to the Board.
65

66

12: CONCLUSION

Samsung is the world largest mobile phone company. It has 19.9% market shares in smartphones. Samsung has its major competition with Apple. While the Haier is worlds number one company in the category of home-appliances. Samsung has wide range of products, while Haier has limited product line. Samsung has 221000 employees, while Haier has just 60000 employees. Samsung is largest multinational than Haier. Samsung is earning lot of its profit from mobile phones while Haier is not offering such product.

Following data shows the progress and position of both companies. SAMSUNG ELECTRONICS Refrigerator appliances= 13.5% Smart phones= 19.9% Laptops = 6.3% Washing machines = 9.2% Printers= 17.2% TV= 22.2% HAIER ELECTRONICS Refrigerator appliances= 16.5% Freezers= 16.8% Home laundry= 10.9% Electric-wine coolers= 16.1%

Both companies are working side by side. If Samsung is best in Mobile phones than Haier is best in Home appliances.

66

67

13: BIBLIOGRAPHY www.google.com www haier.com Wikipedia www.Samsung.com

67

68

68

69

69

70

70

71

71

72

72

73

73

74

74

75

75

76

76

77

77

78

78

79

79

80

80

81

81

82

82

83

83

84

84

85

85

86

86

87

87

88

88

89

89

90

90

91

91

92

92

93

93

94

94

95

A comparison between McDonalds and KFC Comparative Management Final Project

Submitted to: Sir Manzoor Awan

Submitted by: Humaila Khan,Faiza Jamil, Nabeel Zaman, Inamul-Haq

95

96

TABLE OF CONTENTS Contents MC DONALDS, A BRIEF INTRODUCTION MC DONALDS VALUES FOCUS AREAS ENVIRONMENTAL RESPONSIBILITY MAJOR REGIONS MCDONALDS WORLDWIDE ORGANIZATIONAL STRUCTURE MANAGEMENT STRATEGIES BUSINESS MODEL MC DONALDS PRODUCTS STRATEGIC PREDISPOSITION CULTURE HOFSTEDES CULTURAL DIMENSIONS TYPOLOGY IN MC DONALDS CULTURE MCDONALDS SWOT ANALYSIS KFC, A BRIEF INTRODUCTION: KFC VALUES KFC FOCUS AREA MAJOR REGIONS KFC WORLDWIDE KFC ORGANIZATIONAL STRUCTURE KFC MANAGEMENT STRATEGIES BUSINESS MODEL KFC PRODUCTS STRATEGIC PREDISPOSITION CULTURE HOFSTEDES CULTURAL DIMENSIONS TYPOLOGY IN KFC CULTURE KFC SWOT ANALYSIS BIBLOGRAPHY Page No.

96

97

COMMENTS

MC DONALDS, A BRIEF INTRODUCTION

MISSION
Be the customers' favorite place and the way to eat.

HISTORY OF McDonalds
The story of Raymond Albert Kroc, the founder of McDonalds:
The birth of McDonald's began with Raymond Albert Kroc.Ray Kroc was the exclusive distributor of a milk shake maker called the Multimixer. Meanwhile, two brothers, Richard and Maurice McDonald owned and ran a hamburger restaurant in San Bernadino, California, in the 1950s. Ray Kroc heard how well the McDonald brothers were doing using his Multimixers to serve their customers. He met up with them and acquired the franchising right from them to run McDonald's restaurants. A great success story was in the making. In 1955, Ray Kroc founded the McDonald's Corporation and opened the first restaurant in Des Plaines, Illinois. In 1961, he bought out the McDonald brothers. And the rest, as they say, is history. McDonald's grew into the largest restaurant organization in the world. Today, there are more than 33,000 McDonald's restaurants in 119 countries. Ray Kroc died in 1984 but his legacy is very much alive. His success story continues with McDonald's families of employees, franchisees and suppliers. His commitment, dedication and achievements continue to live on at McDonald's restaurants across the world.

McDONALDS VALUES CULTURE AND VALUES AT McDONALDS:

97

98

There customers are the reason for their existence. They demonstrate it by providing them with high quality food and superior service in a clean, welcoming environment, at a great value. The goal is quality, service, cleanliness and value (QSC&V) for each and every customer each and every time.

They provide opportunity, nurture talent, develop leaders and reward achievement. They believe that a team of well-trained individuals with diverse backgrounds and experiences, working together in an environment that fosters respect and drives high levels of engagement is essential for continued success.

McDonalds business model is depicted by three-legged stool of owner/operators, suppliers, and company employees. It is their foundation and balancing the interests of all three groups is the key.

At McDonalds, they hold themselves and conduct their business to high standards of fairness, honesty and integrity. They are individually accountable and collectively responsible.

They seriously take the responsibilities that come with being a leader. They help customers build better communities, support Ronald McDonald House Charities, and leverage the size, scope and resources to help make the world a better place.

McDonalds is a publicly traded company. As such, they work to provide sustained profitable growth for their shareholders. This requires a continuous focus on its customers and the health of its system.

They work hard on improving and nurturing their company. They are a learning organization that aims to anticipate and respond to changing customer, employee and system needs through constant evolution and innovation.

FOCUS AREAS
They are always striving to be better tomorrow than they are today. This more than anything that speaks to who McDonald's is as a company. The overarching goal of its sustainability efforts is focused on continuous improvement through their five focus areas: Nutrition & Well-Being
98

99

Sustainable Supply Chain Environmental Responsibility Employee Experience Community

Nutrition & Well-Being

Whether its a quick breakfast lunch on the go or dinner with the kids customers comes to McDonalds for quality food at a great value. The goal is to continuously improve its classic offerings and increase the number and variety of new options that delivers the great taste and balance what customers are seeking. In addition to an evolving array of menu items they also offer many ways for customers to learn about their nutrition information of its food. They pay particular attention to its offerings for children and how they communicate about them to both kids and their parents.

Sustainable Supply Chain

The McDonalds supply chain is a complex web of direct and indirect suppliers. It manages this complex system by working with direct suppliers who share our values and vision for sustainable supply. They hold them to clear standards for quality, safety,efficiency and sustainability. They expect them to extend those requirements to their suppliers. They also partner with them to identify, understand and address industry-wide sustainability challenges and achieve continuous improvement. Overall, McDonalds and its suppliers are collectively focused on three areas of responsibility: ethics, environment, and economics. They have focused on the 3E's: Ethics Environment Economics

Through its supply chain profitably yields high-quality, safe products without supply interruption while leveraging their leadership position to create a net benefit by improving ethical, environmental and economic outcomes.

99

100

Ethics - They purchase from suppliers that follow practices that ensure the health and safety of their employees and the welfare and humane treatment of animals in supply chain. Environment - Eco friendly materials and design of its products, their manufacture, distribution and usage minimize life-cycle impacts on the environment. Economics - They believe in delivering affordable food, engaging in equitable trade practices, limiting the spread of agricultural diseases, and positively impacting the communities where its suppliers operate.

ENVIRONMENTAL RESPONSIBILITY
McDonalds and its franchisees want the same thing what communities want - a clean neighborhood for people to live and work. Their standard restaurant training includes a strong litter management component, with McDonalds staff conducting frequent clean-ups of its restaurant grounds and the public spaces surrounding their restaurant parking lots. They also encourage customers to help them by participating in anti-littering programs, and include antilittering messages on many of its packages around the world.

Employee Experience
Embracing and empowering a diverse workforce has been a part of the McDonaldsculture for decades. McDonalds keep moving from awareness to action. Training is provided to all the employees at Hamburger University for our leadership development programs. Their goal is to have people within the organization working and living toreach their full potential. They believe that leaders hold themselves accountable for learning about, valuing, and respecting individuals on both sides of the counter. At McDonalds, diversity and inclusion are parts of its culture from the crew room to the Board Room. They are working to achieve this goal every day by creating an environment for everyone to contribute their best

Community
Ronald McDonald House Charities - fundraising events and programs including donations Sponsorship - Olympic Games and the FIFA World Cup

100

101

Disaster relief Provided food and other assistance to victims of 9/11 tragedy in New York City, Tsunami in Southeast Asia in 2004, Destructive 2005 and 2008 hurricane seasons and most recently the devastating earthquake in Haiti in January 2010

MAJOR REGIONS
Headquarter is situated in Oak Brook, Illinois, U.S.A. The total number of locations worldwide is 34,000+ In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald's offers regionalized versions of its menu among and within different countries. As a result, products found in one country or region may not be found in McDonald's restaurants in other countries. Some of the major regions and major countries where franchise of McDonalds is located are: Africa Egypt, Morocco Asia India, Pakistan, Japan, U.A.E Europe U.K, Denmark, Germany America Canada, U.S.A, Brazil, Mexico Oceania New Zealand, Australia

MCDONALDS WORLDWIDE

101

102

ORGANIZATIONAL STRUCTURE

MANAGEMENT STRATEGIES Corporate Managers

McDonalds corporate employees are managed in the organizational structure. At the corporate level, individuals are given incentive in the form of yearly bonuses. Each employee is evaluated

102

103

annually on their performance and rewarded accordingly. These bonuses can also be in the form of stock awards if the individual has worked for McDonalds for a long time.

Restaurant managers
McDonalds restaurants are managed as franchises. The restaurant managers are not connected to the corporate structure. They pay for access to the brand name and company resources in order to run a restaurant independently. Restaurant managers have the opportunity to receive comprehensive training and McDonalds HamburgerUniversity. Hamburger University is a training center that teaches over 5,000 managerial students each year from all over the world. The management and leadership development curriculum gives employees the skills they need to run a successful McDonalds restaurant.

Floor Employees
Employees are given intensive initial training to learn a specific method for performing each task. The training is very precise, controlling everything from body placement to patterns of movement. Methods for task completion were extensively researched and developed for maximum efficiency, and workers are required to follow the methods taught.

BUSINESS MODEL
McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder is operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants.

103

104

The United Kingdom and Ireland business model is different than the U.S, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois. In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments. As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators. Their holistic vision is well defined. Their supply chain is comprised of many different local and regional supply chains around the world that are tied together globally by strategic frameworks and policies and the McDonalds Worldwide Supply Chain department. The SSSC (Sustainable Supply Steering Committee) is responsible for guiding McDonalds toward.

McDONALDS PRODUCTS
Hamburgers Chicken French fries Soft drinks Coffee Milkshakes Salads Desserts Breakfast

SOME ELEMENTS OF MANAGEMENT ARE DISCUSSED BELOW: STRATEGIC PREDISPOSITION

McDonalds strategic predisposition involves a polycentric predisposition in which they tailored their menus to the preferred tastes of the various countries where they do business.

104

105

CULTURE
It has a centralized decision-making structure. A very centralized scope of authority means that employee work profile consists of limited responsibility and lack of any opportunity to exercise individual initiatives. Most employees are under the age of 20 and for most people, it is their first job. Employees thus, tend to identify more with their coworkers partly due to them not offering any decision-making input and a high-stress; fast-paced environment takes its own toll on the identification of the employees with the organization.

APPLICATION OF THE HOFSTEDES CULTURAL DIMENSIONS:

Low Power distance Masculinity Collectivism

TYPOLOGY IN McDONALDS CULTURE

Equity

Person emphasis

Task emphasis Guided missile

Hierarchy (tight control)

105

106

Open communication

Personal relationship

Job relationship

Close communication

McDONALDS SWOT ANALYSIS STRENGTH

Ranks very high on the Fortune Magazine's food service companies that are most admired list.

One of the best brand recognition in the world, the golden arches and Ronald McDonald. Community oriented business models. Very socially responsible. Global operations all over the world. Cultural diversity in the foods that are provided based on location of the restaurant. A large part of the restaurants are franchised out. Excellent locations in theme parks, airports, Wal-Mart stores, and along most well-traveled roads.

Efficient operating guidelines in the assembly line fashion. Use of top quality beef and chicken products. Use of brand name processed items like Kraft cheese, Dannon Yogurt, and Dasani Water. Food safety guidelines are strictly adhered to. Provide nutritional information to the consumers.

WEAKNESSES

Training costs are elevated due to high turnover.

106

107

Very minimal concentration on providing organic foods. Large fluctuations in their net and operating profits making impacts on the investors. Not much variation in seasonal products that are offered. Quality concerns due to franchised operations. Focus on burgers and grease fried foods and not on healthier options for their customers.

OPPORTUNITIES

Opening more joint ventures with several different retailers. Being more responsive to the social changes to healthier options. Advertising the capabilities of Wifi internet services in the branches. Creating more play places for the children in more of the restaurants. Expanding on the advertising in regards to being more socially responsible in the environment.

Expansions of business into newly developed parts of the world. Creating a more upscale appearance to attract a more upscale clientele. Open products up to allergen free options such as peanut free and gluten free foods. Continue to venture into more enticing beverage choices.

THREATS

Lawsuits for offering unhealthy foods that have alleged addictive additives. Contamination risks that include the threat of e-coli containments. The vast amount of eat in fast food restaurants that are open as competition. Social changes to a more balanced meal including fruits and vegetables in servings of five per day.

Political instability Focus on healthier dieting by consumers. Down turn in economy affecting the ability to eat out as much.

107

108

KFC, A BRIEF INTRODUCTION: VISION

Our passion, as a restaurant company, is to put a YUM on people's faces around the world, satisfying customers every time they eat our food and doing it better than any other restaurant company.

HISTORY OF KENTUCKY FRIED CHICKEN The story of Harland Sandler, the founder of KFC:
KFC was founded by Harland Sanders, who began selling fried chicken from his roadside restaurant in. Sanders was an early pioneer of the restaurant franchising concept, with the first "Kentucky Fried Chicken" franchise opening in Utah in the early 1950s. Its rapid expansion saw it grow too large for Sanders to manage, and he eventually sold the company to a group of investors. Throughout the 1970s and 1980s, KFC had mixed success at home as it went through a series of corporate owners who had little or no experience in the restaurant business, although it continued to expand in overseas markets. In the early 1970s, KFC was sold to Heublein, who was taken over by the Reynolds who sold the chain to PepsiCo. PepsiCo spun off its restaurants division as Tricon Global Restaurants this later changed its name to Yum! Brands.

KFC VALUES CULTURE AND VALUES AT KFC: Customer Mania

We listen and respond to our customers and are obsessed about going the extra mile to make them happy.

Belief in People
We believe in people, trust in positive actions, encourage ideas from everyone and fashion a workforce that is different in style and background.

108

109

Recognition
We find reasons to celebrate the achievements of others and have fun doing it.

Coaching & Support

We learn from each other and always help each other out.

Accountability
We do what we say and take responsibility for our actions. We act like owners.

Executional Excellence
No matter which restaurant you work in, you'll notice similarity in the quality of our service. This is the power of the KFC brand.

Positive Energy
We work with passion and energy. We're not interested in hierarchy and all the nonsense that comes with it.

Teamwork
We work together as one team, always. No matter how busy we are, we make sure we get together to talk things through.

KFC FOCUS AREA

Build an organization dedicated to excellence. Consistently deliver superior quality and value in products and services. Maintain a commitment to innovation for continuous improvement and grow, always strive to be the leader in the market place changes. Generate consistently superior financial returns and benefits for owners and employee.

Increase profitability through following six issues Reduce overhead costs Increase efficiencies Improve customer service
109

110

Cleaner restaurants Faster and friendlier service Continued high quality products

COMMUNITY
Animal Welfare Program. Yum Brands! Parent company of KFC, are committed to the humane treatment of animals.

SUPPLIER CODE OF CONDUCT

Yum! Brands are committed to conducting business in an ethical and responsible manner. To encourage compliance with all legal requirements and ethical business practices, Yum has established a Supplier Code of Conduct for its U.S. suppliers.

SOCIAL DIVERSITY
Diversity is more than a philosophy at KFC, it is part of our founding How We Work Together principles. Our global culture is actively developing a workforce that is diversein style and background, where everyone can make a difference.

COLONEL'S SCHOLARS
The KFC Colonels Scholars Program is about you, your dreams and aspirations, and the perseverance to succeed. This program is offered to high school seniors planning to attend a public in-state college or university.

MAJOR REGIONS
Headquarter is situated in Louisville, Kentucky, United States. The total number of locations worldwide is 17,000. Some of the major countries where franchise of KFC is located are: U.S.A, U.K, Canada, Australia, India, Pakistan, China, Malaysia & Indonesia.

KFC WORLDWIDE:

110

111

KFC ORGANIZATIONAL STRUCTURE

KFC MANAGEMENT STRATEGIES CORPORATE MANAGERS

At the corporate level, individuals are given incentive in the form of yearly bonuses. Each employee is evaluated annually on their performance and rewarded accordingly.

111

112

RESTAURANT MANAGERS
The restaurant managers are not connected to the corporate structure. They also pay for access to the brand name and company resources in order to run a restaurantindependently.

FLOOR EMPLOYEES
Employees are intensively given initial training to learn the specific methods for performing each task.

BUSINESS MODEL
Kentucky Fried Chicken has a proven successful business model and a highly recognizable name. KFC and its franchisees all contribute to a national advertising fund, this results in the system spending over $200 million advertising each year. Over the years, this advertising has led to enviable awareness level across the United States, most everyone has heard of Kentucky Fried Chicken. If anyone decides to choose a KFC franchise, they benefit from this substantial awareness. Spending more than $200 million annually on advertising in all types of media, KFC and its franchisees build a strong foundation on which local franchisees can build. With this foundation, local franchisees create links in the local community, frequently sponsoring teams, holding events at the restaurant or by being part of local business groups. When this is combined with hard work and dedication (including the great taste of Original Recipe Chicken served hot and fresh, one may realize a much higher customer base and the potential to build a larger and larger pool of satisfied and loyal customers. Another primary benefit which many KFC franchise owners are taking advantage of is a system that is set up to assist the new KFC franchise owners. KFC has developed a quality on boarding program to help set up the system, understand best practices for building store and building team and allowing setting restaurant up for a fast start. Having an established set of tasks to focus on can make an extremely complex process seem very manageable. KFC assigns lead contacts in each critical area so as to guide you at each step in the process.

KFC PRODUCTS:
KFC adapts its menu internationally to suit regional tastes. There are over 300 KFC menu items worldwide, from a chicken pot pie in the United States to a salmon burger in Japan. In Asia there
112

113

is a preference for spicy foods, such as the Zinger chicken burger. KFC's primary product is pressure-fried pieces of chicken made with the "Original Recipe". The company also sells chicken burgers, wraps and a variety of finger foods,including chicken strips, wings, nuggets, and popcorn chicken. Popcorn chicken consists of small pieces of marinated, breaded and fried chicken. Grilled chicken products are available in 4,000 outlets. Side dishes vary regionally, but often include coleslaw, French fries or potato wedges, barbecue baked beans, corn on the cob and American biscuits. Because of the company's previous relationship with PepsiCo, Yum! Brands has a lifetime drinks supply contract to supply Pepsi products. An own brand dessert is the soft serve ice cream product known as "The Avalanche". In 2012 the KFC breakfast menu began to be rolled out internationally. Fried chicken Grilled chicken Chicken burgers French fries Soft drinks Salads Desserts Breakfast

SOME ELEMENTS OF MANAGEMENT ARE DISCUSSED BELOW: STRATEGIC PREDISPOSITION

KFC strategic predisposition also involves a polycentric predisposition in which theytailored their menus to the preferred tastes of the various countries where they do business.

CULTURE
KFC is centralized as all the decisions are pre documented and taken at upper level of organization without any involvement at lower level

APPLICATION OF THE HOFSTEDES CULTURAL DIMENSIONS:

Low Power distance

113

114

Masculinity Collectivism

TYPOLOGY IN KFC CULTURE

Equity

Person emphasis

Task emphasis Guided missile

Hierarchy (tight control)

Open communication

Personal relationship

Job relationship

Close communication

114

115

KFC SWOT ANALYSIS STRENGTH

KFC's secret recipe. KFC's early entrance into the fast-food industry in 1954 allowed KFC to develop strong brand name recognition and a strong foothold in the industry. Traditional employee loyalty. Employees have a loyal workforce they enjoy good benefits, a pension, and could receive help with other non-income needs. KFC has achieved operating efficiencies through improvements in customer service, cleaner restaurants, faster and friendlier service, and continued high-quality products.

WEAKNESSES
The many sales of KFC lead to a confusing corporate direction. KFC was sold three times. KFC take a long time to market new products. Conflicting cultures of KFC and Pepsi Co. KFC laid back approach while Pepsi co is fast tracked. High turnovers in top management. Contractual disputes with franchisees in the United States.

OPPORTUNITIES
One of the worlds largest consumer products companies Fewer families have time to prepare food at home KFCs early expansion abroad, strong brand name, and managerial experience in international markets gave it a strong competitive advantage

THREATS
Increasing competition and rising sales of substitute products Consumers have begun to demand healthier foods High turnover and political conditions

RECOMMENDATIONS
115

116

Based on the analysis McDonalds should develop menu choices that are healthy and socially acceptable. They need to increase their presence in Asian countries. They can add seasonal items to their menu. They can use healthier food without adding preservatives and additives. They need to reduce salt in fries; use healthier oils to fry foods. They can also offer other beverage other than Coca Cola. Fresh squeezed fruit juices would be a healthy alternative to sugary carbonated soft drinks. KFC need to work on its management issues. They also need to work on its restaurant menu before thinking about expansion. They should work on the management issues to create a good atmosphere where employees are happy to work in. They also need to make sure that their restaurants offer a diversified menu, provide their customers with quality food, excellent service and restaurant cleanliness. KFC should always listen to their customers and try to follow the new trends on the market in order to fully satisfy their customers otherwise competitors will satisfy them.

BIBLOGRAPHY

http://en.wikipedia.org/wiki/KFC http://en.wikipedia.org/wiki/McDonald%27s http://www.kfc.com http://www.mcdonalds.com

116

117

117

118

118

119

119

120

120

121

121

122

122

123

123

124

124

125

125

126

126

127

127

128

128

129

129

130

130

131

131

132

132

133

133

134

134

135

135

136

136

137

137

138

138

139

139

140

140

141

141

142

142

143

143

144

144

145

JAPAN VS RUSSIA
SUBMITTED BY: SAMIA RAHMAN (100813), HAMZA ASHRAF (100803) MUHAMMAD EHTISHAM KHAN (100841)

SUBMITTED TO: PROFESSOR. MANZOOR IQBAL AWAN

145

146

TABLE OF CONTENTS

Topics
Flag and Map of Japan Flag and Map of Russia Introduction of Japan Background Political environment of Japan Business structure Management style Meetings Japanese teams Communication style Multinational companies in Japan Swot analysis of Japan Imports and Exports of Japan Introduction of Russia Background Business structure Management style Team Work Communication style Multinational companies in Russia Swot analysis of Russia Imports and Exports of Russia Comparison of Japan and Russia Conclusion Bibliography

146

147

FLAG AND MAP OF JAPAN

147

148

FLAG AND MAP OF RUSSIA

148

149

Japan

Introduction
Japan is an island nation in East Asia. The capital of Japan is Tokyo. Japan has the world's thirdlargest economy by nominal GDP and by purchasing power parity. Before World War Two, Japan was an isolated an insular country that was in many ways closed to the outside world. After the extreme damage inflicted on Japan in 1945 Japan began a period of modernization and industrial expansion that has seen its economic influence spread across the globe. Taking the model of western companies and corporations and adapting them to a unique Japanese version has seen Japanese companies became house-hold internationally.Japan is capitalistic nation.

Background
Despite the recent growth of China and India as both regional and global economic super powers, Japan remains a major force in world commerce with leading players in such diverse sectors as banking and finance, computing, software, automotive and pharmaceuticals and it would be unwise to switch attention away from this potentially lucrative market.

149

150

Many people find Japan both fascinating and difficult as a business destination and often leave the country more confused than when they arrived. The Japanese approach to business is determined by history and as such is a reflection of Japanese society as a whole. In order to work and interact successfully with your contacts in Japan, a basic understanding of some of the underlying concepts governing business life is essential. Some of these underlying concepts are so fundamentally different from western models that adjustments can be difficult and complete comprehension almost impossible. The most important concept to grasp is that of the overwhelming importance of personal relationships within the business cycle. Of all the business cultures of the world, Japan is one of those most strongly rooted in the concept that relationships should come before business, rather than business being more important than personal considerations. This means that in order to achieve success in Japan, it is important to put the maximum amount of time and resource into the early stages of relationship-building; even when eventual results may seem a long way off. Business models in Japan have been under enormous strain for more than a decade and there is massive pressure (both internal and external) for reform. Yet change comes slowly to Japan and old traditions and loyalties linger. Except changes to happen, but do not expect an easy or quick transition; and do not assume that any changes will result in business models that will be immediately or easily understood by outsiders.

Political Environment
The Japanese government is a constitutional monarchy that is divided into three branches; the Legislative, the Executive, and the Judicial. Their legal system is modeled after the European civil law systems and has English-American influence, judicial review of legislative acts in the Supreme Court, and they accept compulsory International Court of Justice (ICJ) jurisdiction with reservations.

150

151

In the Executive branch, the chief of state is Emperor Akihito. The cabinet is appointed by the prime minister, which is Prime Minister Naoto Kan, who is the head of government. The judicial branch has a Supreme Court and the chief justice is appointed by the monarch and all other juices are appointed by the cabinet.

Business Structure

Up until World War Two, Japan was dominated by a small number of very large companies, the zaibatsu, and these companies had massive influence on the economy. However, in recent years the Japanese economy has become much more varied in terms of the size and structure of its companies, producing a complex web of inter-locking relationships between large and small firms. Competition amongst these smaller firms is very strong which results in a great number of bankruptcies in this sector; therefore the concept of life-time employment enjoyed by the total workforce is, and has been for some time, a myth. Japanese companies, like Japanese society, are hierarchically organised with individuals knowing their position within a group and with regard to each other. It is this sense of belonging to the group that gives Japanese companies their strength and purpose. Group orientation and team working are not merely concepts and phrases in Japan but a way of life which permeates all aspects of corporate life at all levels. The Japanese value their past. They consider it as the source of ideas, hopes and inspiration. Japanese hierarchy is based on consensus and co-operation rather than the top-down decision making process which often typifies western models of hierarchy. This means that people feel actively involved and committed. It can also mean that decisions are slow and have to be based on deep analysis or large amounts of information.

Management Style

Japanese management emphasises the need for information flow from the bottom of the company to the top. As a result, it has been noted that policy is often originated at the middle151

152

levels of a company before being passed upwards for ratification. The strength of this approach is obviously that those tasked with the implementation of decisions have been actively involved in the shaping of policy. The higher a Japanese manager rises within an organization, the more important is that he appears unassuming and unambitious. Individual personality and forcefulness are not seen as the prerequisites for effective leadership. The key task for a Japanese manager is to provide the environment in which the group can flourish. In order to achieve this he must be accessible at all times and willing to share knowledge within the group. In return for this open approach, he expects team members to keep him fully informed of developments. This reciprocity of relationship forms basis of good management and teamwork. Instructions from managers can seem extremely vague to western ears and this often causes confusion and frustration. This difficulty is caused, in no short measure, by problems around styles of communication. As users of coded-speech (where what one says does not necessarily correspond to what one actually means), direct, clear instructions are not needed. The Japanese subordinate will second-guess the boss wishes to happen and react accordingly. It is, therefore, often necessary to ask for clarification if tasks seem vague or unclear. It is better to seek clear understanding at the outset that allows misunderstandings to produce poor results or tensions in the relationship.

Meetings
Punctuality is important; it shows respect for the attendees. However, due to the consensus nature of decision making in Japan, it can very often be difficult to determine a finish time. Always allow slightly more than you think might be necessary to achieve your goals. Meetings are often preceded in Japan by long, non-business polite conversation which could cover such topics as mutual contacts, the merits of your company, Japanese food etc. It is an essential element of relationship-building process.
152

153

Japanese Teams

The Japanese don not really undertake training sessions on team building; they are naturally group oriented which underlies the need for a truly consensus approach to issues. The consensusbuilding process determines that agreement is sought before a formal meeting in order to avoid any direct confrontation. Thus arriving at a meeting expecting issues to be trashed out in a direct and forthright manner will almost always lead to disappointment. It is also important that group members maintain face in front of other group members, which amongst other things means that people must seen to be modest and humble. Self-promotion in the western sense is seen as childish and embarrassing behaviour. The group or groups to which a person belongs are a life-defining set of relationships and the importance of these group relationships should never be underestimated. Therefore, Japanese businessmen (and women) will often socialise in teams after work

Communication Style

Of all aspects of dealing with the Japanese, the ones which probably cause the biggest dilemmas concern communication difficulties. Japanese communications are epitomised by subtlety and nuance, where how one appears and what one publicly states and what one really thinks are often poles apart. The development of relationships in Japan is often dependent on peoples ability to read the underlying truth which may underpin the spoken rhetoric. It can, of course, be very difficult for the non-Japanese to navigate these very confusing paradoxes. It is probably best to say that everything should be questioned in order to ensure that clear understanding has been achieved. Communication difficulties are further compounded by the fact that few foreigners speak good Japanese and that levels of English in Japan are at best very patchy. Much of what is said by English speaking businessmen in cross-national meetings is simply not understood; or more
153

154

worryingly misunderstood. The combination of Japanese vagueness and lack of comprehension leads to enormous problems which make problem-solving and decision very tortuous. In times of stress or difficulty during a meeting, the Japanese will often resort to silence in order to release the tension in the room and allow people to move away from the area of difficulty. Unfortunately many western are extremely uncomfortable with silence in meetings and feel the need to fill the silence with more discussion over the issue the Japanese would rather avoid. In addition, Japanese body language is very minimal, making it difficult for the untrained observer to read. The Japanese seem to be very still in meetings, sitting in a formal upright posture. It is rare for any reaction or emotion to be visible.

Multinational Companies of Japan

Automobiles

In the area of automobile manufacturing Japan has become a global giant. The major Japanese multinational corporations who manufacture automobiles or who offer automotive parts and servicing are Toyota, Honda, Nissan, Mazda, Suzuki, Denso, Bridgestone and Aisin Seiki. Japanese cares are known for their fuel-efficiency and consistently high quality. The largest Japanese carmaker is Toyota Motor Company. In fact, it is one of the world's top 10 multinational companies based on annual revenues as of publication.

Electronics

Japan is almost synonymous with excellence and output in consumer electronics. Many industry leading developments in this field have come from Japan and Japanese companies dominate many sectors of this market. The leading Japanese multinational players in this category are Panasonic, Sony, Toshiba, Hitachi, Sanyo, Matsushita, Sharp, Mitsubishi and Sumitomo.

154

155

Computers and Technology

Like electronic consumer goods Japan has shown an incredible capacity for innovation in the field of computing and associated technologies. Companies such as Canon, Sony, NEC, Ricoh and Fujitsu are leading brands throughout the world and make the Fortune 500 list of leading multinationals.

Engineering and Construction

After the destruction wrought by World War Two, Japan underwent and enormous reconstruction period during which time many Japanese engineering and construction firms rose to international prominence. A lack of natural resources and a relatively small domestic market has forced Japanese companies in this field to innovate and expand. Some of the leading names in Japanese industry in this sector internationally are Takenaka, Shimizu, Kajima, Obeyashi, Komatsu, Taisei, Nippon Steel and Kobe Steel.

SWOT Analysis of Japan

Strengths
Japan has the world's third-largest economy by nominal GDP and by purchasing power parity. World's fourth-largest exporter and fourth-largest importer. It maintains a modern military with the sixth largest military budget used for self-defense and peace keeping roles. They never waste their time and are very hard working. Japans automobile industry is ultimately its greatest strength.

155

156

Japan has a large industrial capacity, and is home to some of the largest and most technologically advanced producers of motor vehicles, electronics, machine tools, steel and nonferrous metals, ships, chemical substances, textiles, and processed foods.

Japan is a leading nation in scientific research, particularly technology, machinery and biomedical research.

The key for the Japan economically success was education. Their education system played a major role in enabling the country to meet the challenges presented by the need to quickly understand Western ideas, science, and technology. Japan has one of the highest standards of education and one of the highest literacy rates in the world.

Weaknesses
Long life expectancy. Natural disasters i.e Earthquakes, Lava, Floods etc. Dense population. Only 8% of managers are females in Japan, whereas, they are 40% in America and 20% in China Japan's reliance on exports could cause many economic problems, because export earnings are very volatile. They are also subject to enormous international competition, which means they could easily lose to competition from China or any low expense locations around the world.

156

157

Opportunities
Japan has an emerging market economy. Demand from emerging markets is helping growth and margins. Emerging markets in Japan are creating new opportunities to expand products from the developed world. Rapid growth in International trade in Japan will result in more profits in near future. Paper products, computer services and other industries will all benefit as emerging countries increase demand for industrial and agricultural products in Japan. Rapid growth in industrialization is creating more opportunities for Japan to boost its economy in near future.

Threats
Conflicts with China are a major threat to Japan. Pollution, Deforestation are injurious to health and is rapidly increasing. Young entrepreneurs are decreasing in Japan. The loss of entrepreneurs slows down a countries rate of growth, because entrepreneurs create the next generate of companies. Japan's government debt is mostly serviced by the large domestic population of savings. These savers invest their money with the government and receive a very low increase rate in return. Natural disasters are also one of the biggest threats to Japan. Natural disasters like earthquakes, floods etc in Japan had greatly destroyed their infrastructure and industries.

157

158

Imports and Exports of Japan

Japan mainly imports: Japan has a surplus in its export/import balance. The most important import goods are : Raw materials Oil. Foodstuffs Wood.

Japan mainly exports: Cars. Silk. Electronic devices Computers.

158

159

RUSSIA

Introduction
Russia has ninth largest economy in the World by nominal value and the sixth largest by purchasing power parity (ppp). Russian economy is today considered by IMF and World Bank a developing one. Russia has an abundance of natural gas, oil, coal, and precious metals. Russia has undergone significant changes since the collapse of the Soviet Union moving from a centrally planned economy to a more market based and globally integrated economy.

Background to Business in Russia

Russia has emerged from a decade of post-Soviet chaos and disintegration to reassert itself as a major player on the world stage - both politically and economically. President Putin and his successor President Medvedev have restored public confidence in the country and vast oil and gas reserves have resulted in growing political and economic influence. Russia cannot be ignored - it needs to be understood.

159

160

As an enormous geographic area, it is dangerous to ever generalize about Russia but certain universal truths do, however, typify the Russian approach to business and life in general. Firstly, it is always worth bearing in mind that for centuries (long before the advent of the Soviet system), the state has always been seen as an organ of oppression and repression. Laws and statutes are therefore seen as the 'enemy' and to be avoided and evaded at all costs. Contracts are valid only if supported by a close personal friendship and taxes are left unpaid on both a corporate and personal level.

Secondly, the only things that can be relied upon are close personal relationships within the business environment. Networking and extended interpersonal allegiances are essential to successful business and the importance of resource allocation to ensure the development of good quality relationships should not be underestimated.

Thirdly, the legal status of many things in Russia is very doubtful. Who actually owns what assets? The laws are being rewritten constantly and are, in any case, often unenforceable without the right level of political influence. Thus, most agreements have to be made on a trust basis - a strong element of which has to be clearly identifiable self-interest. The legal basis of any arrangement will probably mean very little once the relationship breaks down. Despite these issues, Russia has been identified as a high-growth potential market with opportunities in market sectors as varied as banking and finance, technology and computing, infrastructure development and education.

Business Structures
Autocracy and centralized decision-making are synonymous with the Soviet system in many people's eyes and this approach can certainly be seen to be manifested within large Russian business organizations. Russian companies tend to be driven by one strong central figure who will make strategic decisions with little or no consultation with anyone other than a handful of close trusted advisors.
160

161

Therefore, when dealing with potential clients or joint-venture partners in Russia, it is absolutely essential to make sure that the right person is being dealt with. Western companies who attempt to interface at inappropriate levels within an organization waste massive amounts of time and resource. Nowhere is the advice, 'Go straight to the top', more pertinent.

The headlong rush from communism to capitalism has made people into entrepreneurs and centralized decision-making enables organizations to grab an opportunity when it arises. Thus, as in most developing economies, companies tend to have a short-term view of business activities and it is imperative that any potential partner can see the short-term benefits of collaboration.

Management Style
As it has been stated, management tends to be centralized and directive. The boss - especially the 'big boss' - is expected to issue direct instructions for subordinates to follow. Little consultation will be expected from people lower down the company hierarchy. Indeed too much consultation from a senior manager could be seen as a sign of weakness and lack of decisiveness.

Middle managers have little power over strategy or input in significant strategic decisions. The most powerful middle managers are the ones who have the most immediate entree to the decision-maker at the top of the organization. There is little point in wasting time debating with middle managers who do not have an easy access to the top. The most significant reason for delay in reaching a decision in Russia is that the decision has not been put in front of the real decision-maker.

Delegation is usually in terms of managers giving precise instructions to subordinates who are expected to perform their allocated tasks with little or no discussion. Many westerners complain of a lack of initiative from local Russian staff, whilst Russian staff often bemoans the lack of clear, unambiguous advice from expatriate managers.

161

162

It is also important to take age into consideration - younger managers, who have developed in the post-Soviet era, may be much more heavily influenced by western management theory than their older counterparts.

Team work
Teams work best together when the relationships amongst the group are close. There remains a general suspicion of strangers in Russian society and any attempt to bring together teams from different strands of an organization can be problematic. Once a team has been established and is working well together it is probably best to keep the team intact for as long as possible. Move the team wholesale from project to project rather than developing a fresh team for every situation.

The team leader is expected to play a domineering role and to issue precise detailed instructions and then supervise ongoing progress. Those western managers who are more used to a 'hands off' approach will undoubtedly confuse local staff who will feel unsure of what is expected of them. An expatriate team leader needs to establish credibility through being decisive, clear and visibly in control. As different age groups display different attitudes and approaches (pre &post Soviet change generations), it is often thought best to keep teams quite aligned in ages.

Russian Communication Style

English language levels vary enormously in Russia. Many younger entrepreneurs (especially in the cosmopolitan centers like Moscow and St Petersburg) have a fluent command of, not only English, but often several other European languages. Yet in other more provincial centers it is not unusual to meet business people who have little or no foreign language skills. Always check in advance whether interpretation is needed. If in any doubt about the comprehension levels encountered in meeting situations, be sure to check and recheck by asking relevant 'open' questions at regular intervals.

162

163

As with many other cultures (Mediterranean and Middle Eastern for example) much more emphasis is placed upon the spoken than the written word. People believe things when they have heard them from someone with whom they have a trusting relationship. Therefore, it is often much more efficient to hold face-to-face meetings at which issues can be fully explained, rather than sending information in a written format only.

There tends to be very little visual or verbal feedback during meetings in Russia. People listen silently and with little obvious body language being displayed. This does not, however, mean that the listener is disinterested or does not understand - it is merely a cultural characteristic which Russians share with, amongst others, the Finns and the Japanese. Russians will tend to wait and think before responding to a point made to them - do not be impatient. Allow the Russians the time and space needed to take part fully in the conversation (and remember that they are probably struggling with foreign language as well).

Multinational Companies In Russia

Gazprom

Gazprom is the worlds largest gas company, and one of the worlds pre eminent energy companies, focusing on the exploration, production, transmission, storage, processing and marketing of gas for customers in Russia and around the world. It has the worlds largest gas reserves (estimated at 29.85 tcm) and the worlds largest gas transmission system. The Russian government owns 50.02% of the company, with the rest listed in Russia on the RTS (GAZP) and Micex (GAZP), with American Depository Receipts listed in London (OGZP).

163

164

Rosneft

Rosneft is Russias largest oil producer, with operations focused on the exploration, production and marketing of oil and oil products, with some gas operations as well. The company has extensive reserves, estimated in 2007 at 17,513 million barrels of crude oil and 711 billion cubic metres of gas. The Russian state owns 75% of Rosneft with approximately 15% traded. It is listed in Russia on the RTS (ROSN) and Micex (ROSN) with American Depository Receipts listed in London (ROSN).

TNK-BP

Russias third largest oil producer, TNK-BP, was created from the merger of British Petroleums Russian and Ukrainian operations with those of the Alfa, Access/Renova (AAR) group. TNK-BP has a range of upstream production and downstream refining and retail assets, and reserves estimated at 8.225 billion barrels of oil equivalent.

Lukoil

Lukoil is a major Russian energy producer focused on exploration, production and marketing of oil and gas. The companys production and exploration base is in Russia, with significant refining capacity in Russia, and with marketing taking place across Russia, Europe and the United States. Lukoil is privately owned and has its shares listed in Russia on the RTS (LKOH) and Micex (LKOH) with ADRs listed in London (LKOD) and the OTC Market in New York (LUKOY).

164

165

Kaspersky Lab
Kaspersky Lab is a Russian multi-national computer security company, co-founded by Natalia Kaspersky and Eugene Kaspersky in 1997. Kaspersky Lab is headquartered in MoscowRussia. The company currently works in almost 200 countries. The companys products and technologies provide protection for over 300 million users worldwide and more than 200,000 corporate clients globally.Kaspersky Lab ranks fourth in the global ranking of antivirus vendors it was the first Russian company to be included into the rating of the worlds leading software companies, called the Software Top 100.

Novatek
Novatek is Russias second largest gas producer focused on the exploration and production of gas. The bulk of its production takes place in the Yamal-Nenets region of Russia, with the company having proved reserves at the start of 2007 of 4.7 billion barrels oil equivalent. 19% of Novatek is listed on Russias RTS (NVTK) and Micex (NOTK) exchanges, with its GDRs listed in London (NVTK).

Gazprom-Neft
GazpromNeft is a major Russian energy producer focused on exploration and production of oil and gas, with additional operations in oil and gas field servicing, refining, and marketing. GazpromNeft in 2010 achieved 52.8 mln toe produced and refined 37.9 mln tonnes. It partly or wholly owns three refineries in Russia and two in Serbia and has an extensive retail station network. Majority owned by Gazprom, Gazprom Nefts shares are listed on Russias RTS (SIBN) and Micex (SIBN), and is becoming a significant international player with projects in the Middle East, Africa, Europe and Latin America.

165

166

MMK

Magnitogorsk Iron and Steel Works, or MMK, is the largest steel production complex in Russia. Its operations encompass the full suite of steel production from ore preparation to high value steel production, and it produces the widest range of steels of all Russian steel producers. It exports approximately half of its output. Its shares are traded in Russia on the RTS (MAGN) and Micex (MAGN) exchanges, with its GDRs traded in London (MMK).

Evraz
Evraz is one of the worlds largest integrated steelmaking, mining and vanadium business. The company has operations spanning 3 major Russian steel plants, with global operations in Italy, the Czech Republic, Ukraine, the U.S. and Canada, as well as holdings in China, and vanadium operations in South Africa. It also owns and operates the sea port of Nakhodka. Evraz has GDRs listed on the London Stock Exchange (EVR).

Severstal
Severstal is one of the worlds largest steel producers, encompassing mining, steel mills, rolled product plants and downstream production facilities. Centred on Russia it has extensive global operations with production facilities in the United States, Italy, France, Great Britain, and Ukraine. Severstal is listed on the RTS (CHMF) and Micex (CHMF) with GDRs listed in London (SVST).

166

167

Mechel

Mechel is a major steelmaker with extensive metals mining operations across Russia, Romania and Lithuania. The mining operations produce iron ore, coal and nickel, with steelmaking encompassing a range of high value carbon and specialty long products. The company also owns railway, port, and electricity generation operations,Mechel ADRs are listed in New York (MTL).

Norilsk Nickel
Norilsk Nickel is the world largest producer of nickel and palladium in addition to being a major producer of copper, silver, gold, and platinum group metals. The companys exploration, production, and refining operations encompass Russia, Finland, Australia, South Africa, Canada, Botswana, and the U.S. Its shares are traded on the RTS (GMKN) and Micex (GMKN) with GDRs traded in London (MNOD), Berlin (NNIA) and the OTC market in the United States (NILSY).

X5

The X5 Retail Group, founded in 1995, is Russias biggest food retailer by revenue with outlets in 22 Russian regions, Kazakhstan and Ukraine. The company has more than 1000 company managed supermarkets, hypermarkets and discount stores, and 684 franchises trading under the Karusel, Pyaterochka and Perekrestok brands. X5 global depositary receipts are listed in London (FIVE).

167

168

Polyus Gold
Polyus Gold is Russias largest gold producer, and one of the world five largest gold producers, with operations in Eastern Siberia and the Russian Far East. It has proved and probable reserves of 68.6 million ounces (2006). It is listed on Russias RTS (PLZL) and Micex (PLZL) exchanges with its ADRs listed in London (PLZL).

Polymetal
St Petersburg based Polymetal is Russias largest silver producer, and 3rd largest gold producer, with operations across Siberia and Russias Far East. In addition to its production operations it has extensive exploration capacity, and an in house engineering research and design centre. It is listed on the RTS and Micex (PMTL) in Moscow, with GDRs traded in London (PMTL).

SWOT Analysis Of Russia

Strengths
Former superpower. Russia is one of the world's fastest growing major economies. Abundance of resources has made Russia almost self sufficient in energy and fuel exports. Russia has the world's largest reserves of mineral and energy resources and is the largest producer of oil and natural gas globally. Russia has the world's largest forest reserves. Russia probably has one of the best education systems in the world, producing a literacy rate of 99% in individuals age 15 and above. The Russian economy is the world's ninth largest by nominal GDP and sixth largest by purchasing power parity, with the 3rd largest nominal military budget.

168

169

Russia's tank force is the largest in the world. It is one of the five recognized nuclear weapons states and possesses the largest stockpile of weapons of mass destruction.

Weaknesses

Russia is the sixth least peaceful country in the world, principally because of its defense industry ( 2012 Global Peace Index).

Energy companies continuously face political risk from unstable government of Russia. Russia's economic situation deteriorated rapidly after the breakup of the Soviet Union, which destroyed major economic links.

Backward in agriculture which leads Russia to poor harvests. The government spends money on the army instead of helping peasants to develop much needed farming technology.

Bureaucracy, corruption and poor corporate governance.

Oppertunities
Eastern Europe, China, India, Korea and Japan are large consumers of oil. They eagerly use Russian's supplies of energy, over the next 15 years, it will increase their share of energy exports going to Asia to 30 percent. Construction of a new pipeline from East Siberian oil fields to the pacific has begun, it will boost their economy. Alliances/Collaborations with other countries are creating opportunities for Russia regarding trade and commerce.

169

170

Russia's attractiveness for FDI has benefited from reasonable macroeconomic policies which lead to a surplus in the state budget, diminishing unemployment, growing income per capita, external debt repayments and a substantial increase in foreign exchange reserves.

Foreign investment in the Russian airlines is growing, which is expected to have a positive effect on the travel and tourism industry in Russia in the near future.

Multinationals sensing business opportunities in Russia.

Threats
Falling oil prices are particularly bad for Russia. A large part of the countrys GDP comes from exporting its vast supply of crude and gas. Unlawful criminal gangs. Political instability and corruption is a hurdle in their development. Russia has been the victim of a number of terrorist attacks.

Imports and Exports of Russia

Russia mainly imports: Machinery & equipment. Food products. Chemicals. Metals. Beverages.

Russia mainly exports: Crude oil. Natural gas. Metal. Weapons.

170

171

COMPARISON OF JAPNAN AND RUSSIA

Japan Russia

Land Area Population Population Density Life expectancy

377,727 sq km 127 m 33.5 sq km Men 80 yrs Women 87 yrs

17, 075,500 sq km 141m 8.4 sq km Men 62 yrs Women 74 yrs 99% Rouble US$1,232bn US$8,680 Agriculture 5% Industry 33% Services 62% Unemployed 8% Fuels Metals Machinery & equipment Chemicals

Adult Literacy Currency GDP GDP per heads Employment

99% Yen US$ 5,069bn US$39,740 Agriculture 45% Industry 28% Services 68% Unemployed 5%

Main Exports

Capital Equipment Industrial supplies Consumer durable goods

Destinations

China 19% USA 16% South Korea 8% Hong Kong 6%

Netherlands 12% Italy 7% China 5% Germany 4% Machinery & equipment Food products Chemicals Metals food & drink

Main Imports

Industrial supplies Capital Equipment Food Consumer durable goods

Main countries of origin

China 22% USA 11% Australia 6% Saudi Arabia 5%

USA 14% China 13% Germany 5% Ukraine 5%

171

172

Conclusion
On the basis of our research we conclude that Japan and Russia both are the leading economic countries of the world their management styles were followed by different developing countries and we came to know that both of these countries have different cultures and management.

Japan is a highly masculine country. Japanese values time and they are very hardworking individuals. Japan has a large industrial capacity, and is home to some of the largest and most technologically advanced producers of motor vehicles, electronics, machine tools, steel and nonferrous metals, ships, chemical substances, textiles, and processed foods. Their educational standard is very good which is considered as a key to their success. Japan has become a global giant. Japan is very advance in technology and business etc.

Russia is one of the world's fastest growing major economies. Russia contains the largest reserves of oil and natural gas etc. Abundance of resources has made Russia almost self sufficient in energy and fuel exports. The government spends money on the army instead of developing its agriculture sector. Literacy rate is very high. Russia is improving rapidly. Numerous Multinational companies are sensing business opportunities in Russia which will surely lead them towards success and betterment.

BIBLIOGRAPHY http://www.worldbusinessculture.com/Japanese-BusinessStructures.html http://en.wikipedia.org/wiki/Russia http://www.wikiwealth.com/swot-analysis:russia http://yousigma.com/comparativeanalysis/japanpost.html

172

173

Pakistan vs. India

Submitted to: Sir Manzoor Awan Submitted by: Babar Ikram, Mian Haseeb Gul, Haseeb Bharwana, Raja Izhar Bhatti & Talia Waqar

173

174

Distribution of Work

Pakistan Introduction Pakistan at Glance India introduction India at Glance Management style of Pakistan Management style of India Pest Analysis of India o Pest Analysis Pakistan o o o o o o Communication Styles Display of Emotion Display of Emotion Preferred Managerial qualities Hierarchy and Decision-making Religion, Class, Ethnicity, & Gender o Privileges and Favoritism o Conflicts in the Workplaceo National Heroes o Kashmir Conflict o Diagrammatic Representation of Pakistan and Indias Hofstedes Cultural Dimensions o Balanced view of the economic achievements and failures of Pakistan and India o Conclusion o o o o o o

Babar Ikram and HaseebGul

Talia Waqar and HaseebBharwana

Raja izhar and Babar Ikram

All

174

175

Table of Contents

1- Pakistan Introduction 2- Pakistan at Glance 3- India introduction 4- India at Glance 5- Management style of Pakistan 6- Management style of India 7- Pest Analysis of India 8- Pest Analysis Pakistan 9- Communication Styles 10- Display of Emotion 11- Preferred Managerial qualities 12- Hierarchy and Decision-making 13- Religion, Class, Ethnicity, & Gender 14- Privileges and Favoritism 15- Conflicts in the Workplace 16- National Heroes 17- Kashmir Conflict 18- Diagrammatic Representation of Pakistan and Indias Hofstedes Cultural Dimensions 19- Balanced view of the economic achievements and failures of Pakistan and India 20- Conclusion 21- References

175

176

Pakistan Introduction:

Pakistan, officially the Islamic Republic of Pakistan (Urdu: ), is a sovereign country in South Asia. With a population exceeding 180 million people, it is the sixth most populous country in the world. Pakistan was founded by Mohammad Ali Jinnah and it emerged as an independent country on August 14, 1947. It is a land of diverse cultural and terrain and has four provinces; Punjab Baluchistan Sindh Khyber pakhtunkhwa

and Federally Administered Tribal Areas (FATA). Pakistan has a diverse array of landscapes spread among nine major ecological zones. Its territory encompasses portions of the Himalaya, Hindu Kush, and Karakoram mountain ranges, making it a home to some of the worlds highest mountains. Intermountain valleys make up much of the NWFP, and rugged plateaus cover much of Balochistan Province in the west. In the east, irrigated plains along the Indus River and some deserts are spread across the Punjab and Sindh. Pakistan shares borders with Afghanistan (2,430 kilometers), China (523 kilometers), India (2,912 kilometers), and Iran (909 kilometers). Its coastline totals 1,064 kilometers along the Arabian Sea. Under the 1982 United Nations Convention on the Law of the Sea, Pakistan

176

177

claimed a 200-nautical-mile exclusive economic zone, a 12-nauutical-mile territorial sea, and a 24-nautical-mile contiguous zone for security, immigration, customs, etc. The name Pakistan literally means "Land of (the) Pure" in Urdu and Persian. It was coined in 1933 as Pakstan by ChoudharyRahmat Ali, a Pakistan Movement activist, who published it in his pamphlet Now or Never, using it as an acronym ("thirty million Muslim brethren who live in PAKSTAN") referring to the names of the five northern regions of the Indian subcontinent: Punjab, North-West Frontier Province (Afghan Province), Kashmir, Sind, and Baluchistan". Pakistan is a federal parliamentary republic consisting of four provinces and four federalterritories. It is an ethnically and linguistically diverse country, with a similar variation in its geography and wildlife. A regional and middle power, Pakistan has the seventh largest standing armed forces in the world and is also a nuclear power as well as a declared nuclear weapons state, being the only nation in the Muslim world, and the second in South Asia, to have that status. It has a semi-industrialized economy which is the 27th largest in the world in terms of purchasing power and 47th largest in terms of nominal GDP.

177

178

Pakistan at Glance

1. Population

180,440,005

2. Area

796,095 km2 &307,374 sq m

3. Geographic location 3000'N 7000'E

4. Coastline length

1100 km

5. Motto

Unity, faith and discipline

6. Capital

Islamabad

7. Largest City

Karachi (population: 11,624,200)

8. Official languages

Urdu and English.

9. Regional languages

Punjabi, Sindhi, Pashto, Balochi, Saraiki, Hindko, Brahui etc.

10. Major religions

Muslim - 97%, Christian, Hindu and others - 3%.

178

179

11. National Anthem

12. National Animal

Pak sir Zameen Shad bad

Markhor

13. National Bird

Chukar

14. National flowerJasmine

15. National tree

Cedrusdeodara

16. National fruit

Mango

17. National currency

Pakistan Rupees (Rs.) (PKR)

18. National sport

Hockey

179

180

India Introduction

India, officially the Republic of India is a country in South Asia. It is the seventh-largest country by geographical area, the 2 most populous countries, and the most populous democracy in the world. The Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal on the east, India has a coastline of 7,517 kilometers .It is bordered by Pakistan to the west, Peoples Republic of China, Nepal, and Bhutan to the north, and Bangladesh and Myanmar to the east. Indian the vicinity of Sri Lanka, Maldives, and Indonesia in the Indian Ocean. Home to the Indus Valley Civilization and a region of historic trade area and vast empires, Indian subcontinent was identified with its commercial &cultural wealth for much of its long history. Four major religions, Hinduism, Buddhism, Jainism and Sikhism originated country, while the Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium of CE and shaped the region's diverse culture. The British East India Company from the early eighteenth century and colonized by the United Kingdom from the mid-19century, India became an independent nation in 1947after a struggle for independence that was marked by widespread non-violent resistance. The name India is derived from Indus, which originates from the Old Persian word Hindu. The latter term stems from the Sanskrit word Sindhu, which was the historical local appellation for the Indus River. The ancient Greeks referred to the Indians as Indoi which translates as "the people of the Indus. The geographical term Bharat , which is recognized by the Constitution of India as an official name for the country, is used by many Indian languages in various subtle guises. The eponym of Bharat is Bharata, a mythological figure that Hindu scriptures describe as a legendary emperor of ancient India. Hindustan was originally a Persian word that meant "Land of the Hindus"; prior to 1947, it referred to a region that encompassed northern India and Pakistan. It is occasionally used to solely denote India in its entirety.

India is a republic consisting of 28 states and 7 union territories with a parliamentary system of democracy.

180

181

States:
1. Andhra Pradesh 2. Arunachal Pradesh 3. Assam 4. Bihar 5. Chhattisgarh 6. Goa 7. Gujarat 8. Haryana 9. Himachal Pradesh 10. Jammu and Kashmir 11. Jharkhand 12. Karnataka 13. Kerala 14. Madhya Pradesh 15. Maharashtra 16. Manipur 17. Meghalaya 18. Mizoram 19. Nagaland 20. Orissa 21. Punjab 22. Rajasthan 23. Sikkim 24. Tamil Nadu 25. Tripura Uttar 26. Pradesh 27. Uttarakhand 28. West Bengal It has the world's 12th largest economy at market exchange rates and the fourth largest in purchasing power. Economic reforms since 1991 have transformed it into one of the fastest growing economies; however it still suffers from high levels of poverty, illiteracy, disease, & malnutrition. A pluralistic, multilingual, and multiethnic society.

181

182

India At Glance

1. Population 2. Area

1,210,193,422 3,287,263 km & 21,269,219 Sq

3. Geographic location 21N 78E

4. Coastline length

7,517 km

5. Motto

Truth Alone Triumphs

6. Capital

New Delhi

7. Largest City

Mumbai(population: 12,691,800)

8. Official languages

Hindi and English

9. Regional languages Assamese, Bengali, Bodo, Dogri , Gujarati, Hindi ,Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjab, Sanskrit, Santali, Sindhi, Tamil, Telugu, Urdu 10. Major religions Hindu - 80.5%, Muslim - 13.4%, Christian - 2.3%, Sikh - 1.9%, others 1.8%, unspecified - 0.1%. 11. National Anthem 12. National Animal Jana GanaMana Tiger

182

183

13. National Bird

Peacock

14. National flower

Lotus

15. National tree

Banyan

16. National fruit

Mango

17. National currency

Indian Rupee (INR)

18. National sport Hockey

183

184

Management Style
Pakistan: Pakistani style of management and leadership practices especially when it comes to governmental/semi-governmental organizations seems devoid of any sound ethical or moral principles. The dictatorial style of a typical Pakistani manager seems to be a legacy of decades of colonial rule where the British ruled over India like a master over its colonial subjects/servants. There is a need for greater awareness on the subject matters so that such Machiavellian practices are ground to a halt and a culture of good governance is allowed to flourish. Rule No. 1 - I am the Law: It should be abundantly clear to your subordinate that rules are subservient to the you the boss he is required to report to. Even the antiquated rules of organization would not be followed because its your personal judgment that is the most important regarding your subordinate. It would be worthwhile for your subordinate to do personal favors in order to get a promotion. Merit or qualification only matters at home. Rule No. 2 - Rules have to be followed: Of-course you cannot let your subordinates get away with the rules as well especially when you have to promote some over others on the perceived basis of following the procedures while chastising others. You have to make sure all your juniors know that rules are paramount, so at least they have an impression you are a person who respects rules. Now the trick is to make so many rules and procedures that no normal human being is able to abide by all. Since you know for sure nobody can possibly follow all the rules, you can pick and choose the person who you don't like and throw him out of the organization based on non-conformance to organizational rules and procedures. This way you can even throw out the most competent and qualified person in the organization whom you perceive as a threat to you. Rule No. 3 - Do the Mistake and Blame it on others: Rule No. 4 - Nobody is Indispensible: Rule No. 5 - Emotional Intelligence: Rule No. 6 - Your Subordinates Have to be Tactful: Rule No. 7 - Its Not What You Know, Its Who You Know: Rule No. 8 - Age is Qualification: Rule No. 9 - You Cannot Benchmark:
184

185

Rule No. 10 - Use a "Line of defense":

India: India is an enormously hierarchical society (arguably the most hierarchical in the world) and this, obviously, has an impact on management style. It is imperative that there is a boss and that the manager acts like a boss. The position of manager demands a certain amount of role-playing from the boss and a certain amount of deferential behavior from his subordinates. The boss is definitely not expected to perform any seemingly 'menial' tasks such as making coffee for everybody or moving chairs in a meeting room! Moreover, it is a land of contradiction, on one hand it is one of the fastest growing countries willing to play a leading role in global economy.. Since 1947 independence Indian government is shielded Indian companies from outer competitions which resulted in inefficiencies and statusquo at national level, and also contributed to corruption. Nevertheless, there is new wave of change and development and changes are lead by rise of sectors like software, services, automobile, pharmaceuticals and biotechnology sector. Rise of these sectors proved that Indian managers can compete on world stage even after lots of adversities.

Pest Analysis: A pest analysis is a scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors Political Economic Social Technological India: POLITICAL: These refer to government policies such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

185

186

India is the biggest democracy in the World. The government type is federal republic. Based on English common law, judicial review of legislative acts, accepts compulsory ICJ jurisdiction with reservations, separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the India is more or less stable. Most of its democratic history, the federal Government of India has been led by the (INC) Indian National Congress. In India many political factors effect business environment. These are the major factors that affect the political environment Taxation policy India has a well-developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban &Rural Local Bodies. The power to levy taxes and duties are distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax income, Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales, Stamp Duty, State Excise, Land Revenue, and Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties, Octroi Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.

Privatization Reduce the political interface in the management of enterprises, leading to improved efficiency and productivity. In India this time do many Government company Good performance but some time later there are facing many problems so the go for privatization. Deregulation India Government makes some Act to freely do business in India. International trade regulations International trade regulation day by day India makes it flexi able for foreign trade. General initiatives Some policy to first Political initiates for the business environment in In India. Government stability In India past 10 years government is stable. If government is not stable the market will not improve neither any business will enter nor anyone will invest without the fear of the risk. International stability No wars, no home country problems, and no type of war like Iraq these result uncertainties in the market.

186

187

ECONOMICAL Economic conditions of an environment have a direct impact on the development of any industry. The recent economic recession in the world has had an impact on Indias economy as well. Some of the economic indicator as follows: Inflation 7.24 percent GDP (PPP) Total $4.457 trillion Per capita $3,693 (Nominal) Total $1.848 trillion Per capita $1,388

GDP by sector agriculture: 21.2%, industry: 25.4%, services: 53.4% Income distribution Lowest 10%3.6% Highest 10 %31.1% GST 20 percent Unemployment Rate 9.800%

187

188

SOCIAL Changes in social trends can impact on the demand fora firm's products and the availability and willingness of individuals to work. In the India, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. It also means some firms have started to recruit older employees to tap into this growing labor pool. It describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part of the social environment. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario India is the second most populous nation in the world with an approximate population of over 1.2billionpeople. This population is divided in the following age structure: 0-14 years 31.8%, 15-64 years 63.1% and65 years and above 5.1%. There has a Mobility Income distribution Population demographics Attitude to work and leisure Standard of education and skills Working Conditions

TECHNOLOGICAL New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Today in India 3Gtechnology starts. A heavy infrastructure for bandwidth. BSNL and Reliance have more covered city by optical fibre. India have many Technological Projects. Good Service provider in IT sector ex TCS, Infosys and many more. Today India is a big market in mobile sector here5-6 player operators and new operators launch their services soon.

188

189

(i) (ii) (iii) (iv) (v)

IT Development New Materials and processes Government technology funding Speed of technology transfer Software upgrades

Pakistan: POLITICAL Political are those factors which are directly control by the political parties and Government they could be able to influence directly in any situation or any industry. So they create a major impact on any industry. Some of the Political conditions indicators as follow: Political Instability In Pakistan Political environment are not stable that is the major threats for the multinational companies and industries because no one knows at what time Government will change and with the change Government Policies will also change. Terrorism Terrorism is the major problem that Pakistan is facing is now days that is the most critical factor that discourages multinational companies and industries to invest in the country. Pricing regulation In Pakistan Government dictates the pricing regulations so that will influence the smooth working of multinational companies and industries which will discourage their investment in the country. Rapid change in regulation In Pakistan Government is changing the policies very rapidly so that creates instability Industry Safety regulations Now Government is trying to give maximum protection to these foreign investors and passing number of laws to make them feel more safe and reliable. Investment Friendly environment Government is trying to provide investor friendly environment to give the more benefit to the investors and give them maximum safety.

189

190

ECONOMICAL Economic conditions of an environment have a direct impact on the development of any industry. The recent economic recession in the world has had an impact on Pakistans economy as well. Pakistan's economy mainly encompasses textiles, chemicals, food processing, agriculture, tea and other industries. In 2005, it was the third fastest growing economy in Asia. Since the beginning of 2008, Pakistan's economic outlook has taken a dramatic downturn. Security concerns stemming from the nation's role in the War on Terror have created great instability and led to a decline in FDI from a height of approximately $8bn to $3.5bn for the current fiscal year. Concurrently, the insurgency has forced massive capital flight from Pakistan to the Gulf. Combined with high global commodity prices, the dual impact has shocked Pakistan's economy, with gaping trade deficits, high inflation and a crash in the value of the Rupee, which has fallen from 60-1 USD to over 90-1 USD in a few months. For the first time in years, it may have to seek external funding as Balance of Payments support All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society. A booming or growing economy has low unemployment, high spending power and high stakeholder confidence. While an economy like ours is facing a lot of economic problems i.e. high unemployment, high rate of inflation, population explosion, low spending power and low stakeholder confidence etc which results in less demand for expensive products of need. Moreover people hesitate to invest money in such organizations that are in a country which lack economic stability (i.e. facing bomb blasts or drone attacks etc rapidly). Therefore, Government should ensure the safety of the investors money and take steps to encourage more people to invest so that it can become financially strong like other western countries.

Some of the economic indicators as follow:

Inflation 6.90 percent

190

191

GDP (PPP) Total $488.580 billion Per capita $2,787 (Nominal) Total $210.566 billion Per capita $1,201

Income distribution Highest 10% 26.71 Lowest 10% 4.36

GST 16% Unemployment Rate 5.600%

SOCIAL Social analysis is directly attached with the people and with the culture in which they are working and if the businesses try to dictate the social factors it will create threats to that industry and if they work within the social norms then social factor become the key to success. One of the main reasons why big companies like Google and Facebook etc. dont open their offices in Pakistan is because of the social norms and religious issue. On the other hand, cultural aspects are equally essential in order to understand the various needs of different individuals that belong to different cultures. Population growth rate Age distribution Career attitudes
191

192

Consumer behavior Religion and culture itself

In summary organizations must be able to offer products and services that aim to complement and benefit peoples lifestyle and behavior. Moreover, if organizations do not respond to changes in society they will lose market share and demand for their product. TECHNOLOGICAL Technology is the most known word in the modern world so any advancement in the technology affects the industry and if industry settles them accordingly then its open a lot of door of success and achievement if they do not respond to the advancement then that particular company goes into the darkness. Technological advances have greatly changed the manner in which businesses operate. Organizations use technology in many ways, they have 1. Internet and other means of exchanging information including telephone come under technological infrastructure. 2. MIS (management information system) helps in managing a business. 3. Technology involving hardware such as laptops, desktops, Bluetooth devices, photocopiers, and fax machines used to transmit and record information. Technology has created a society which expects instant results. This technological revolution has increased the rate at which information is exchanged between an organization and its stakeholders and customers etc at a very fast rate. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment. Thus, a Business should take immediate steps to make its information easily accessible to its customers, employees and stakeholders. Else it might fail to attract new customers/investors as well as to retain the old/ current customers and the stakeholders. However an ability to react quickly also creates extra pressure, as businesses are expected to deliver on their promises within ever decreasing timescales so they should became more efficient in order to fulfill the demands of their customers etc. Some of the drawbacks of technology in Pakistan are as follows: Lack of electricity Lack of Natural gas Lack of machinery to extract raw materials
192

193

Communication styles:

Pakistan: Pakistanis maintain close body contact but not with the opposite sex. Both men and women generally hug each other while meeting even for the first time. Women also kiss each other on the cheeks but men dont. Holding hands and putting arm around the other person of the same sex are normal and show closeness and intimacy. When meeting a female Pakistani, a male should not try to shake her hand until and unless she extends her hand first. A foreigner female can, however, shake hand with a male Pakistani. There is no set distance while talking to a Pakistani. Also making a regular eye contact is not important. In fact, maintaining a constant eye contact with a person of opposite sex is considered rude and unethical. Pakistanis dont use a lot of gesturing while talking but they dont mind if the foreigners do as they are from another culture and are accepted as such. Most Pakistanis like to touch while talking. This usually consists of putting hand over your shoulder or holding your hand occasionally. Pakistanis often interject while others are talking and it is considered normal if two people start a conversation during a group meeting. They are also very loud and forceful in getting their point of view across. It is however considered impolite and rude to be direct in their conversation. Pakistanis are quite diplomatic when expressing views about others. India: An arms length would be a good distance to keep between you and the person to whom you are speaking. Most Indians make direct eye contact during conversation; however, a woman from a conservative and/or traditional/rural background may speak to you from behind the veil of her sari. It is not acceptable to touch someone during conversation unless you know the person well. For example, an older person could take offence if you touch him or her because you are not a Hindu or, if you are a man, a woman would feel very uncomfortable and think you are making a pass at her. During most large social and official gatherings men and women will tend to stay clustered in their own groups, however both genders tend to mix more freely with each other during smaller family or social gatherings. If you are not sure about a non-verbal cue, do not hesitate to ask your

193

194

friend or business associate or host. Professionals in India would keep the same distance a business colleague would keep with you in Canada, unless you know them very well. Pointing a finger at someone would be considered rude. If you need to get the attention of the waiter in a restaurant make eye contact or try to gesture to him with your right hand/arm stretched out, palm facing down and moving your fingers towards yourself. Display of Emotion: Pakistan: Pakistanis are very polite people and generally do not display anger, hatred and other negative emotions in public. They however do express their affection and love for others in public. They like to praise others in public and expect the same from others. In rare circumstances would they express their distaste or hatred especially for those of other tribes, ethnic background or religion. India: Public displays of affection with the same gender are more readily accepted than with the opposite sex. In cosmopolitan cities such as New Delhi, Mumbai, and Bangalore, displays of affection are more common; whereas in Chennai, people are more traditional and conservative in showing affection in public. However, people are more used to sharing their good tidings, sorrow and anger in public. Again, emotions may not readily surface within a work environment where a senior officer/superior may be present Preferred managerial Qualities: Pakistan: Education and experience are regarded as the most important qualities of a local as well as nonlocal superior/manager. Family background and personal network are also considered very important for local managers. Leadership and hard work, though taken positively, are considered the least important. However, making quick and timely decisions and sticking by your staff are considered extremely important qualities. Pakistanis are used to giving and taking direct orders and consensus building and teamwork are considered more of a western thing. Getting to know your subordinate staff on a personal level helps at times but can create more work related hassles especially if the staff members are female or of much lower cadre. Getting to know "how your staff view you" is very difficult and tricky in Pakistan. On the surface, Pakistanis are very polite and would never tell you on your face if they dont like you or
194

195

something about you. Pakistanis try their best to get along with their superiors and would seldom complain about the management style. But if you are a good manager, it will definitely show in your staffs performance at work. Good managers can usually get a lot of mileage out of their staff in Pakistan. Pakistanis are usually hard working people and dont mind working overtime and on weekends. But they expect due recognition and appreciation. Cash compensation works well with low-paid staff while commendation letter, gifts and upgrading of position/title goes well with other, senior staff.

India: Seniority, education and experience are highly valued. However, human qualities such as respect for local knowledge, respect for an individuals age, patience, and understanding are equally important. Most importantly, never cause someone to lose face, especially in front of others. The co-operation and respect you earn from your staff will indicate to you their opinion of you.

Hierarchy and Decision-making

Pakistan: In government offices in Pakistan, the main decision makers are the top bosses of the departments. Each government department is headed by a Secretary (equivalent of Deputy Minister in Canada) who decides all matters in the department. Sometimes, major policy decisions are made by a forum of secretaries, which are then approved by the cabinet. This is a common practice although in theory, powers of decision-making are delegated to the lower tiers. Inter-departmental meetings are regularly held in which opinions are sought from field managers/supervisors but it is the head of the department who ultimately decides which idea to pursue further. The practice is somewhat different in the non-government and private sector organizations where ideas are generated and decisions made in a more participatory manner. In these organizations, any staff member can come up with an idea and this is then discussed jointly in staff meetings and decisions are made accordingly. It is however the top boss who has the final say in any decision-making.

195

196

Both public and private organizations follow a hierarchical management style and one has to approach his/her immediate supervisor for any idea or issue. It is then up to that supervisor to carry forward the idea or issue to an appropriate forum India: Power and decision-making in the work place tend to be based on rigid, hierarchical communication patterns and lines of authority, both in the private and public sectors. In western countries, it is not entirely necessary for face-to-face communications, as business can be done through telephone communication. However, face-to-face communication is preferred in India. In western countries one can get to the point without having to get into casual conversation before proceeding to discuss matters of concern. Verbal communications in general tend to be informal and casual conversation typically precedes discussion of matters of concern

Religion, Class, Ethnicity, & Gender: Pakistan: Gender Pakistan has a purely male-dominated society where very little recognition is accorded to female segment of the society. Mostly consisting of a tribal set-up, the Pakistani society is run by norms and traditions set by men. The religion of Islam also provides enormous powers to the men and all decisions about womens involvement in the society e.g. education, marriage, work, travel etc. are made by their family male members. Pakistanis dont like to discuss their women in public and gender equality/womens rights are commonly perceived as a western effort to undermine their society. Religion Religion is very strong in Pakistan and majority either follow or are forced to follow the religious beliefs and practices. The clergy has a very strong influence on the day-to-day affairs of the majority of the population. It is a serious crime to talk against Islam in Pakistan. Class Pakistani society is very class conscious and people are known and respected for who they are rather than what they are. The class system in Pakistan is purely economic and political in nature. Landowners are generally preferred over businessmen. Having a family network in the armed
196

197

forces, government organizations and political powers is considered important. The rural areas are still dominated by feudal lords who control the land and other resources of their respective areas. Although less visible in the urban areas, family background has a significant influence over how people behave with each other in cities. Ethnicity Pakistan is mainly divided into five ethnic groups. The majority belong to Punjabi group living in the plains of Punjab Province. Then there are Sindhis in the southern province of Sindh, Baloch in the southwestern province of Balochistan and Pathans belonging to the North West Frontier Province. The Muhajirs (immigrants) migrated from India at the time of independence and are scattered all over the country but with visible majorities in the cities of Karachi and Hyderabad. Like the class system, the ethnic background is considered an important factor in every day life in Pakistan. People tend to prefer and favour those of their ethnic group. Because of the different languages these ethnic groups speak, there is a strong tendency among people to relocate to an area with the majority belonging to the same ethnic group.

India: Gender In most work places the issues of gender, religion, class and ethnicity may not be visible, but they do exist below the surface. A woman may face gender discrimination from her superiors and men who work for her. Religion While religion may not be discussed or be an issue at work, recent Hindu-Muslim tensions have lead to many riots in public places and created divisions among people. A visitor must keep in mind that India is home to Hinduism, Islam, Christianity, Judaism, Sikhism, Jainism, Zoroastrianism, and Buddhism. Class Class is becoming more of an issue especially among many "nouveau riche". Suddenly when a lower or lower-middle class person comes into money, class distinctions become more evident. Such a person may be the envy of many colleagues within the work place. Ethnicity

197

198

Unless someone identifies himself/herself as a scheduled caste or scheduled tribe or their surname identifies them as such, it does not come up as an issue in the work place within an urban setting. However, within a rural context, everyone within that particular small community will know your background and you will have to live within certain prescribed norms. Privileges and Favoritism Pakistan: Yes, Pakistanis take pride in the fact that they know the boss on a more personal basis. Expectations from a boss one knows personally are usually high in terms of increased fringe benefits like office car and telephone for personal use. Hiring of family and friends is common in almost all organizations and Pakistanis prefer to hire their near and dear ones. This also helps in maintaining a close relationship with their colleagues and subordinates. It also has to do with the poor economic conditions in Pakistan and people feel obligated to support their family members and friends by providing them jobs.

India: Preferred treatment, a pay increase, hiring of his/her friends or family does exist, both in the public and private sectors. However, nowadays, people have to justify their actions and the person who accepts special privileges has to prove him or herself worthy of the position they hold. Today, the granting of special privileges will not go without being questioned or noticed. Conflicts in the Workplace: Pakistan: Pakistanis generally prefer to be discreet about their problems. Whether the problem is work related or personal, they prefer having a quiet and private discussion about it. They dont appreciate others to know their problems. Pakistanis appreciate direct and frank discussion, however, they prefer their colleagues to be polite and understanding India: In many Indian cultures, harmony, saving face and avoidance of conflict are important principles guiding communication, to the extent that avoidance of conflict may be valued more than clarity

198

199

of meaning. However, as in Canada, it is important to clarify what one does not understand right away. Any disagreement should be handled delicately. Given that saving face is very important, you should call a meeting with your colleague and confront him or her directly. Disagreements can usually be resolved amicably. Most often, problems arise due to miscommunication. Lay out your frustrations and ask the individual to do the same and resolve the situation as a team. If however the problem persists, inform the individual that you would like to give her/him another chance to resolve the issue amongst yourselves before you take the matter to your superior. National Heroes: Pakistan: Most of the national heroes are from the early Muslim and Arab history such as Hazrat Ali, Umar Farooq, Mohammad Bin Qasim, Tariq Bin Ziad and MehoodGhaznavi. Since majority of Pakistanis are descendants of the Muslim conquerors who invaded the Central Asia and Indian Subcontinent and spreaded Islam in this part of the world, they take pride in their heroes and what they did for the religion. There are also some national heroes who actively participated in the freedom struggle against the British occupation of India and later helped in the independence of Pakistan. They include Mohammad Ali Jinnah (commonly referred to as Quaid-e-Azam or Great Leader) who led the independence struggle and was the first head of state, Alama Mohammad Iqbal who was a great poet and dreamt about having an independent Pakistan, and Sir Syed Khan who started the first educational institution (now a university) in the Indian Subcontinent to provide education to Muslims. There are also some sports heroes from the most popular sport Cricket. These include names like Imran Khan, JavedMiandad and Hanif Mohammad India: Mahatma Gandhi is considered the father of the nation. RavindraNath Tagore, the poet and writer from West Bengal, is well known. Each region has its own "national" hero. Shivaji in Maharashtra, Rani ChittorChannama in Karnataka etc. These days many of the national heroes are film stars. The film heroes set new trends and have a lot of visibility -- in larger than life image/posters along sidewalks, in movie theatres and in television commercials

199

200

Kashmir conflict The Kashmir conflict is a territorial dispute between India and Pakistan over the Kashmir region, the most northwesterly region of South Asia. The two countries have fought at least three wars over Kashmirthe Indo-Pakistani Wars of 1947, 1965 and 1999and several skirmishes over the SiachenGlacier.India claims the entire state of Jammu and Kashmir and administers approximately 45.1% of the region, including most of Jammu, the Kashmir Valley, Ladakh, and the Siachen Glacier. India's claim is contested by Pakistan, which controls approximately 38.2% of Kashmir, consisting of Azad Kashmir and the northern areas of Gilgit and Baltistan. The conflict of Kashmir has its origin in 1947, when British India was separated into the two states of Pakistan and India. As part of the partition process, both countries had agreed that the rulers of princely states would be allowed to opt for membership of either Pakistan or India, or in special cases to remain independent. India claims Kashmir on the basis of the Instrument of Accession, a legal agreement with Kashmir's leaders executed by Maharaja Hari Singh, then ruler of Kashmir, agreeing to accede the area to India. Pakistan claims Kashmir on the basis of a Muslim majority and of geography, the same principles that were applied for the creation of the two independent states. India referred the dispute to the United Nations on 1 January 1948. In a resolution in 1948, the UN asked Pakistan to remove most of its troops. A plebiscite would then be held. However, Pakistan failed to vacate the region. A ceasefire was reached in 1949 and a Line of Control was established, dividing Kashmir between the two countries. Pakistan's position is that the people of Jammu and Kashmir have the right to determine their future through impartial elections as mandated by the United Nations. India has stated that it believes that Kashmir is an integral part of India, referring to the 1972 Simla Agreement and to

200

201

the fact that elections take place regularly. Certain Kashmiri independence groupsbelieve that Kashmir should be independent of both India and Pakistan.

Diagrammatic Representation of Pakistan and Indias Hofstedes Cultural Dimensions

Power distance:

Pakistan: This dimension deals with the fact that all individuals in societies are not equal it expresses the attitude of the culture towards thee inequalities amongst us. At a score of 55, Pakistan is a hierarchical society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.

India: India scores high on this dimension, 77, indicating an appreciation for hierarchy and a Top Down Structure in society and Organizations. If one were to encapsulate the Indian attitude, one could use the following words and phrases: dependent on the boss or the power holder for direction, acceptance of un-equal rights between the power-privileged and those who are lesser down in the pecking order, immediate superiors accessible but one layer above less so,

201

202

paternalistic leader, management directs, gives reason / meaning to ones work life and rewards in exchange for loyalty from employees. Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members. Employees expect to be directed clearly as to their functions and what is expected of them. Control is familiar, even a psychological security, and attitude towards managers are formal even if one is on first name basis. Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder.

Individualism: The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether peoples self-image is defined in terms of I or We. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societys people belong to in groups that take care of them in exchange for loyalty. Pakistan: Pakistan, with a score of 14 is considered a collectivistic society. This is manifest in a close longterm commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employees in-group, management is the management of groups. India: India, with a score of 48 is a society with clear collectivistic traits. This means that there is a high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of ones defined in-group(s). In such situations, the actions of the individual are influenced by various concepts such as the opinion of ones family, extended family, neighbors, work group and other such wider social networks that one has some affiliation toward. For a collectivist, to be rejected by ones peers or to be thought lowly of by ones extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptiness. The employer/employee relationship is one of expectations based on expectations
202

203

Loyalty by the employee and almost familial protection by the Employer. Hiring and promotion decisions are often made based on relationships which are the key to everything in a Collectivist society.

Masculinity / Femininity A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field a value system that starts in school and continues throughout organizational behavior. A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine).

Pakistan: Pakistan scores 50 on this dimension and is thus a masculine society. In masculine countries people live in order to work, managers are expected to be decisive and assertive, the emphasis is on equity, competition and performance and conflicts are resolved by fighting them out. India: India scores 56 on this dimension and is thus considered a masculine society. Even though it is mildy above the mid-range in score, India is actually very masculine in terms of visual display of success and power. The designer brand label, the flash and bling that goes with advertising ones success, is widely practiced. However, India is also a spiritual country with millions of deities and various religious philosophies. It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and abstinence. This often reigns in people from indulging in Masculine displays to the extent that they might be naturally inclined to. In more Masculine countries the focus is on success and achievements, validated by material gains. Work is the center of ones life and visible symbols of success in the work place are very important.

203

204

Uncertainty avoidance: The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score.

Pakistan: Pakistan scores 70 on this dimension and thus has a high preference for avoiding uncertainty. Countries exhibiting high uncertainty avoidance maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation.

India: India scores 40 on this dimension and thus has a medium low preference for avoiding uncertainty. In India there is acceptance of imperfection; nothing has to be perfect nor has to go exactly as planned. India is traditionally a patient country where tolerance for the unexpected is high ; even welcomed as a break from monotony. People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without questioning. Rules are often in place just to be circumvented and one relies on innovative methods to bypass the system. A word used often is adjust and means a wide range of things, from turning a blind eye to rules being flouted to finding a unique and inventive solution to a seemingly unsurmoutable problem. It is this attitude that is both the cause of misery as well as the most empowering aspect of the country. There is a saying that nothing is impossible in India, so long as one knows how to adjust.

204

205

Balanced view of the economic achievements and failures of Pakistan and India during the span of the last five decades. India and Pakistan are completing five decades of their independence. Since the partition, the relationship between the two countries has been uneasy and characterized by a set of paradoxes. There is a mixture of love and hate, a tinge of envy and admiration, bouts of paranoia and longing for cooperation, and a fierce rivalry but a sense of proximity, too. The heavy emotional overtones have made it difficult to sift the facts from the myths and make an objective assessment. There are in fact only two extreme types of reactions on each side. Either there are those who always find that the grass is greener on the other side of the pasture or those who are totally dismissive of the accomplishments of the other side.

First, the common successes shared by both the countries: Despite the prophets of gloom and doom on both sides of the fence, both India and Pakistan have succeeded in more than doubling their per capita incomes. This is a remarkable feat considering that the population has increased fourfold in case of Pakistan and threefold in India. Leaving aside the countries in East Asia and China, very few large countries have been able to reach this milestone. The incidence of poverty (defined as $1 per day) has also been reduced significantly although the number of absolute poor remains astoundingly high. However, the level of poverty is lower in Pakistan. Food production has not only kept pace with the rise in population but has surpassed it. Both countries, leaving aside annual fluctuations due to weather conditions, are self-sufficient in food. (Pakistan exports its surplus rice but imports small volumes of wheat). Food self-sufficiency has been accompanied by improved nutritional status. Daily caloric and protein intake per capita has risen by almost one-third but malnourishment among children is still high. The cracks in the dualistic nature of the economy -- a well-developed modern sector and a backward traditional sector -- are appearing fast in both the countries. A buoyant middle class is emerging. The use of modern inputs and mechanization of agriculture has been a leveling influence in this direction. But public policies have not always been consistent or supportive.

205

206

Second, the common failures of the two countries: The relatively inward-looking economic policies and high protection to domestic industry did not allow them to reap the benefits of integration with the fast-expanding and much larger world economy. This has changed particularly since 1991 but the control mind-set of the politicians and the bureaucrats has not changed. The centrally planned allocation of resources and "license raj" has given rise to an inefficient private sector that thrive more on contacts, bribes, loans from public financial institutions, lobbying, tax evasion and rent-seeking rather than on competitive behavior. Unless both the control mind-set of the government and the parasitic behavior of the private industrial entrepreneurs do not change drastically, the potential of an efficient economy would be hard to achieve. This can be accomplished by promoting domestic and international competition, reducing tariff and non-tariff barriers and removing constraints to entry for newcomers. The weaknesses in governance in the legal and judicial system, poor enforcement of private property rights and contracts, preponderance of discretionary government rules and regulations and lack of transparency in decision making act as brakes on broad-based participation and sharing of benefits by the majority of the population. In terms of fiscal management, the record of both the countries is less than stellar. Higher fiscal deficits averaging 7-8 percent of GDP have persisted for fairly long periods of time and crowded out private capital formation through large domestic borrowing. Defense expenditures and internal debt servicing continue to pre-empt large proportion of tax revenues with adverse consequences for maintenance and expansion of physical infrastructure, basic social services and other essential services that only the government can provide. The congested urban services such as water, electricity, transport in both countries are a potential source of social upheaval. The state of financial sector in both countries is plagued with serious ills. The nationalization of commercial banking services, the neglect of credit quality in allocation decisions, lack of competition and inadequate prudential regulations and supervision have put the system under severe pressure and increased the share of non-performing assets in the banks portfolio. The financial intermediation role in mobilizing and efficiently allocating domestic savings has been seriously compromised and the banking system is fragile. Both countries are now taking steps to liberalize the financial sector and open it up to competition from foreign banks as well as private banks.

206

207

Third, the areas where India has surpassed Pakistan: There is little doubt that the scientific and technological manpower and research and development institutions in India are far superior and can match those of the western institutions. The real breakthrough in the Indian export of software after the opening up of the economy in 1991 attests to the validity of the proposition that human capital formation accompanied by market-friendly economic policies can lift the developing countries out of low-level equilibrium trap. Indian scientists working in India excel in the areas of defense technology, space research, electronics and avionics, genetics, telecommunications, etc. The number of Ph.Ds produced by India in science and engineering every year -- about 5,000 -- is higher than the entire stock of Ph.Ds in Pakistan. The premier research institutions in Pakistan started about the same time as India have become hotbed of internal bickering and rivalries rather than generator of ideas, processes and products Related to this superior performance in the field of scientific research and technological development is the better record of investment in education by India. The adult literacy rate, female literacy rate, gross enrollment ratios at all levels, and education index of India have moved way ahead of Pakistan. Rapid decline in total fertility rates in India has reduced population growth rate to 1.8 percent compared to 3.0 percent for Pakistan. Health access to the population and infant mortality rates are also better in India and thus the overall picture of social indicators, although not very impressive by international standards, emerges more favorable. The two most important determinants of Pakistans dismal performance in social development are its inability to control population growth and the lack of willingness to educate girls in the rural areas.

Fourth, the areas where Pakistan has performed better than India: The economic growth rate of Pakistan has been consistently higher than India. Starting from almost the same level or slightly lower level in 1947, Pakistans per capita income today in US nominal dollar terms is one-third higher (430 versus 320) and in purchasing parity dollar terms is two-third higher (2,310 versus 1,280). The latter suggests that the average Pakistani has enjoyed better living standards and consumption levels in the past but the gap may be narrowing since early 1990s and these days India is ahead of us because of the negligence and wrong policies of the Government and political parties who provokes government to make such policies. Had the population growth rate in Pakistan been slower and equaled that of India, this gap would have
207

208

been much wider and the per capita income in Pakistan today would have been twice as high and the incidence of poverty further down. Although both India and Pakistan have pursued inward-looking strategies, the anti-export bias in case of Pakistan has been comparably lower and the integration with the world market faster. The trade-GDP ratio in PPP terms is twice that of all South Asian countries. Pakistans export growth has been stronger and the composition of exports has shifted from primary to manufactured goods; albeit the dominance of cotton-based products has enhanced its vulnerability. Domestic investment rates in Pakistan have remained much below those of India over the entire span primarily due to the relatively higher domestic savings rates in the latter. But the efficiency of investment as measured by the aggregate incremental capital-output ratio or total factor productivity has been higher in case of Pakistan and, to some extent, compensated the lower quantity of investment. Moreover, the level of poverty in Pakistan is better than India which is 24% population below the poverty line and India 29.8%. Furthermore, the level of Inflation and unemployment is also stable than India.

CONCLUSION
What is the bottom line then? The overall record looks mixed. Pakistan scores high on income and consumption growth, poverty reduction and integration with the world economy. India has done very well in developing its human resource base and excelled in the field of science and technology. Both countries face a set of common problems -- the inherited legacy of a control mind-set among the government and rent-seeking private sector, widespread corruption, poor fiscal management, weak financial system and congested and overcrowded urban services. But there is an important and perceptible positive shift in most of the indicators of India since 1991. Export growth rates have almost doubled, GDP growth is averaging 6 to 7 percent in recent years, current account deficit is down and foreign capital flows for investment have risen several fold. The edge that Pakistan has gained over India in most of these indicators until 1990 is fast eroding. Pakistan, on the other hand, has made greater progress in privatization of state owned enterprises and in attracting foreign investors to expand power generating capacity in the country. How does the future look like? Since 1991, both India and Pakistan have embarked on a policy of liberalization, outward orientation and faster integration with the global economy. The initial responses have been very positive. As outlined earlier, portfolio and foreign direct investment
208

209

flows in the last few years have surpassed those accumulated over the last 20-25 years. Indian exports recorded an increase of 50 percent since 1991 while Pakistan, despite a setback due to failure of successive cotton crops, have expanded by two-thirds since 1990. The political uncertainty in India has been minimized after the elections and adoption by the coalition government of the Congress agenda on economic reforms. This combination of political stability, economic policy credibility and well developed human resource base places India at an advantage today. But there is no earthly reason as to why we in Pakistan cannot put our house in order, strike a consensus among the two major political parties on the contours of our economic policy direction, stop brick bating each other for the larger sake of the countrys interests and avoid promoting contrived and perceived sense of economic instability. The imperatives of globalization and integration with the world economy dictate that the countries that are not agile and do not seize the opportunities at the right time are likely to be losers. What is encouraging is that the economic policy stance of both major parties in Pakistan is identical, i.e., liberalization of the economy. We have made a head start and let us not lose this momentum by narrow-minded and purely self-serving interests. The destiny of a nation depends upon the hard work, discipline and internal cohesion of its people and the vision of its leaders. Let our future generations not blame our leaders for failing to leave a legacy of prosperity and hope for them. Before entering any country to start business there, the business man should give most of the importance to the uncertainty avoidance in this context that wherever he/she is planning to start the business, that country should have a stable economic, political, and environmental conditions. He/she should not plan to enter such country which is facing bombardments etc. As by doing so he/she will risk the finances of the company, lives of the people who will come there to work, as well as the environment will be full of tension thus people will not be able to work with full concentration etc.

209

210

References
http://en.wikipedia.org/wiki/Pakistan http://en.wikipedia.org/wiki/India http://en.wikipedia.org/wiki/Economy_of_Pakistan http://en.wikipedia.org/wiki/Economy_of_india http://www.aneki.com/comparison.php?country_1=India&country_2=Pakistan

210

211

211

212

212

213

213

214

214

215

215

216

216

217

217

218

218

219

219

220

220

221

221

222

222

223

223

224

224

225

225

226

226

227

227

228

228

229

229

230

230

231

231

232

232

233

233

234

234

235

235

236

236

237

237

238

238

239

239

240

240

241

VS
241

242

Table of Contents
1. Distribution of Work 2. SAMSUNG Introduction 3. SONY Introduction 4. SAMSUNG Organizational Chart 5. SONY Organizational Chart 6. SAMSUNG Products line & portfolio 7. SONY Products line & portfolio 8. SAMSUNGSWOT Analysis 9. SONYSWOT Analysis 10. CSR by SAMSUNG 11. CSR by SONY 12. Application of the Hofstedes Cultural Dimensions on

SAMSUNG
13. Application of the Hofstedes Cultural Dimensions on

SONY
14. Conclusion & References

242

243

Distribution of Work

243

244

EVERYONES INVITED
Variations in the Logo

Logo Represents: The current Samsung logo design is intended to emphasize flexibility and simplicity while conveying a dynamic and innovative image through the ellipse, the symbol of the universe and the world stage. The openings on both ends of the ellipse where the letters "S" and "G" are located are intended to illustrate the company's open-mindedness and the desire to communicate with the world. The English rendering is a visual expression of its core corporate vision, excellence in customer service through technology. The basic color in the logo is blue, which symbolizes stability and reliability, which are precisely what the company wishes to accomplish with its customers. It also stands for social responsibility as a corporate citizen, a company official explained.

History

244

245

Samsung was founded in 1938 and by Lee buyng- Chull. It is aSouth Korean company whose headquarter is in Samsung town, Seoul.Up to 1969, Samsung was a Korean firm that dealt with greengrocery and dried fish. Then, in 1969 SEC (Samsung Electronic Company) was founded to manufacture black-and-white TV sets for low-end consumers. In 1970s it entered into semiconductor business. In 1974, it purchased Korea Semiconductor Company and began its semiconductor industry under the leadership of their chairman Kun He Lee. Samsung raised with a remarkable speed, to become the worlds leading memory chip producer, ranking 2nd just behind Intel. In the meantime, the earnings from memory division were being used to invest in various technology products like mobile phones, liquid crystal displays etc. These businesses helped Samsung in generating the second-largest net profit of any electronic company outside the US. Current CEO and Chairman of SAMSUNG are: CEO: Choi Gee-Sung Chairman: Yoonwoo Lee

The headquarters of Samsung Sanghoe in Daegu in the late-1930s

Samsung Electronics:

245

246

Samsung Electronics Co., Ltd is a South Korean multinational electronics company headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group and was the world's largest technology company by revenues from 2009 to 2012. Samsung Electronics has assembly plants and sales networks in 61 countries and employs around 221,000 people. Samsung Electronics is the world's largest mobile phone maker by 2011 unit sales and world's second-largest semiconductor chip maker by 2011 revenues (after Intel Corporation). It has been the world's largest television manufacturer since 2006 and the world's largest maker of LCD panels for eight consecutive years. It has the largest market share worldwide in memory chips. The company was the world's largest vendor of smartphones in 2011. Samsung has also established a prominent position in the tablet computer market, with the release of the Androidpowered Samsung Galaxy Tab.

Make Believe
Variation in logo

Logo Represents
246

247

Two concepts were combined to create the name 'Sony'. One was the Latin word 'sonus' which is the root of words such as 'sound' and 'sonic'. The other was 'sonny boy,' a popular expression used in Japan at the time to describe a young person with a free and pioneering spirit. The new name perfectly captured the mood of the company as a group of young people with the energy and passion for unlimited creation.

History
Sony found its beginning in the wake of World War II. In 1946, Masaru Ibuka started an electronics shop in a bomb-damaged department store building in Tokyo. The company had $530 in capital and a total of eight employees. The next year, he was joined by his colleague, Akio Morita, and they founded a company called Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Corporation). The company built Japan's first tape recorder, called the Type-G. In 1958 the company name was changed to Sony. In the early 1950s, Ibuka traveled in the United States and heard about Bell Labs' invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company, for use in communications. Ibuka's company made the first commercially successful transistor radios. By the mid 1950s, American teens had begun buying portable transistor radios in huge numbers, helping to propel the fledgling industry from an estimated 100,000 units in 1955 to 5 million units by the end of 1968. Sony co-founder Akio Morita founded Sony Corporation of America in 1960. In the process, he was struck by the mobility of employees between American companies, which was unheard of in Japan at that time. When he returned to Japan, he encouraged experienced, middle-aged employees of other companies to reevaluate their careers and consider joining Sony. The company filled many positions in this manner, and inspired other Japanese companies to do the same. Moreover, Sony played a major role in the development of Japan as a powerful exporter during the 1960s, 70s, and 80s. It also helped to significantly improve American perceptions of "made in Japan" products. Known for its production quality, Sony was able to charge abovemarket prices for its consumer electronics and resisted lowering prices.
247

248

In 1971, Masaru Ibuka handed the position of president over to his co-founder Akio Morita. Sony began a life insurance company in 1979, one of its many peripheral businesses. Amid a global recession in the early 1980s, electronics sales dropped and the company was forced to cut prices. Sony's profits fell sharply. "It's over for Sony," one analyst concluded. "The company's best days are behind it." Around that time, Norio Ohga took up the role of president. He encouraged the development of the Compact Disc in the 1970s and 80s, and of the PlayStation in the early 1990s. Ohga went on to purchase CBS Records in 1988 and Columbia Pictures in 1989, greatly expanding Sony's media presence. Ohga would succeed Morita as chief executive officer in 1989. Sony Group Headquarters at Sony City in Minato, Tokyo. Under the vision of co-founder Akio Morita and his successors, the company had aggressively expanded into new businesses. Part of its motivation for doing so was the pursuit of "convergence," linking film, music, and digital electronics via the Internet. This expansion proved unrewarding and unprofitable, threatening Sony's ability to charge a premium on its products as well as its brand name. In 2005, Howard Stringer replaced Nobuyuki Idei as chief executive officer, marking the first time that a foreigner has run a major Japanese electronics firm. Stringer helped to reinvigorate the company's struggling media businesses, encouraging blockbusters such as Spider-Man while cutting 9,000 jobs. He hoped to sell off peripheral business and focus the company again on electronics. Furthermore, he aimed to increase cooperation between business units, which he described as "silos" operating in isolation from one another. In a bid to provide a unified brand for its global operations, Sony introduced a slogan known as "make believe" in 2009. Despite some successes, the company faced continued struggles in the mid- to late-2000s. It became known for its stagnancy, with a fading brand name. In 2012, Kazuo Hirai was promoted to president and CEO, replacing Sir Howard Stringer. Shortly thereafter, Hirai outlined his company-wide initiative, named "One Sony" to revive Sony from years of financial losses and bureaucratic management structure, which proved difficult for former CEO Stringer to accomplish, partly due to differences in business culture and native languages between Stringer and some of Sony's Japanese divisions and subsidiaries. Hirai outlined 3 major areas of focus for
248

249

Sony's electronics business, which include imaging technology, gaming and mobile technology, as well as a focus on reducing the major losses from the television business.

Samsung Organizational Chart

249

250

250

251

Sony Management Structure

251

252

Products line & portfolio

SAMSUNG

TV + Video

Mobile

Photo

Computing

Home Appliances

Accessories

Television

Cell Phones

Cameras

Laptops

Washers & Drayers

TV Accessories

Blu-ray & DVD Players

Tablets

Camcoders

All-in-One PCs

Refrigerators

Cell Phone Acessories

Home Theater Galaxy note Systems Laptops

SD cards

Tablet PCs

Microwaves

Tablet Accessories

Chromebook

Dishwashers

Printer Toner & Supplies

Chromebook Media Players

Monitors Printers &

Ranges LED Lighting

Laptop Acessories Digital Camera Accessories

Multifunctio n Memory & Storage

More accessories

252

253

SONY Products line & portfolio

Computers Tablets eReaders

Laptops Desktops Tablets Reader Digital Booke

Cameras

& TV& Video

Home Audio

Personal Audio

Playstation Mobile & Games Phones

Product Services

& Camcorders

& Digital Cameras

Televisions

Sony Home Audio Theater Systems

&

Playstation Vita

Andriod Smartphones

PC

Setup, &

Headphon es Sony Walkman MP3 Player Portable speakers

installation repair

Digital Cameras

Video Blu-ray DVD Players

&

Headphones & Earbuds

PSP PS2 PS3 Video Games

Mobile Phone Accessories

TV HomeTheater installation Extended Service Plans

&

Sony Home Stereo Theater Systems Components & Spearers

CDplayers & Boomboxes Voice recorders & Microphone s Car Audio

Playstation accessories

Marine Audio

253

254

SAMSUNG SWOT Analysis

Strengths
Wide-ranged portfolio & products line Innovative and diversified technology Perceived as an Innovator Main strength is its Global Business Network Worlds best LED TVs seller 2nd largest semi-conductor supplier of the world and most probably in year 2014 it will surpasses its rival Intel 2011 market share of its cell phone is 21.3% that makes it worlds 2nd largest mobile phones selling brand with a sale of 329.4 million units while 1st is Nokia with a share of 27% Worlds top selling smartphone brand of 2011 with the sale of 94 million units and market share of 19.1% while apples market share is 19% Sony, Apple, Dell, HP etc are the Samsung largest clients of DRAM, NAND flash, LCD/ LED panels etc.

Weaknesses
Focus on Mass marketing instead of Niche marketing, therefore sets low prices of products and low priced products are seemed as low quality products Products are not durable specially their cell phones, LEDs etc.

Opportunities
It can target kids segment by offering Sonys types of products like Play Station, PSP etc. Strong customer demand for innovative

Threats
Threat from new entrants or local players Low cost Chinese products Political, economical and social factors Partial Government policies

products and value added features In the digital appliances business, they can

254

255

close the gap with the market leaders by offering differentiated products and increasing operational efficiencies Advertising the products effectively in the all markets where they are being offered It can further expand its product warranties and reduce repair service charges

High rate of competition because both Local and Foreign competition exists in the market Sony is perceived as a market leader in electronics and digital media

SONY SWOT Analysis

Strengths
Strong Brand image High quality of product Wide spectrum of innovative products Wide-ranged portfolio & products line Electronics Blue ray Main strength is its Global Business Network

Weaknesses
Products High prices Financial service industry Picture industry Battery efficiencies

Opportunities
Strong customer demand for innovative products and value added features Advertising the products effectively in the all

Threats
Threat from new entrants or local players Low cost Chinese products

255

256

the markets where they are being offered It can further expand its product warranties and reduce repair service charges International market penetration T.V business expansion Network initiatives T.V category & gaming segments investing

Political, economical and social factors Partial Government policies High rate of competition because both Local and Foreign competition exists in the market

CSR by Samsung
Compiled with the G3 Guidelines of the Global Reporting Initiative (GRI) and AA1000APS, the 2011 Samsung Electronics Sustainability Report includes the company's profiles as well as its economic, environmental, and social performance indicators to ensure the full sharing of information across all sectors. As a new feature in comparison with the previous report, this report contains the company's CSR vision and strategies. The financial data included in this report generally represents the corporation's consolidated figures that encompass the performances of Samsung Electronics' overseas plants. The environmental and social performance information mainly reflects the domestic subsidiaries of Samsung Electronics. The data that pertains only to the performance of its headquarters has been footnoted accordingly. Samsung Electronics will continue to strengthen its data collecting process to expand the scope of its reporting for future periods. At Samsung, we believe its our responsibility to do business in a way that enriches our planet!

256

257

1. Corporate Governance: Samsung Electronics promotes transparency and accountability using an advanced corporate governance structure. Full support is extended to the board of directors to facilitate creative management with the ultimate goal of maximizing corporate value while every effort is made to enhance shareholder value and rights. The board of directors addresses issues as stipulated in related laws and the companys Articles of Incorporation, and is responsible for overseeing basic policies and major issues concerning the companys operations. Regulations regarding the election, terms of office, and election of Directors in case of vacancy are included in our Company's Article of Incorporation. They also made strict standards related to the independence of Directors. 2. Human Resources: Samsung is taking actions to create a rewarding corporate climate that supports the efforts of a diverse range of employees because Samsung knows that it is increasingly important for employees to have vested stake in the growth potential of its company. People expect a participatory work environment where they can feel a sense of dignity, pride, and ownership of the organizations vision. Samsung Electronics strives to build a creative organizational culture, and acknowledges that the investment we make in strengthening the core competencies of our employees will have a direct impact on our competitiveness. We actively promote a flexible organizational culture that allows employees to pursue a healthy work-life balance, in a dynamic, creative and challenging work environment that is not risk-averse. As an international company we embrace individuals with different background and abilities. Samsung Electronics has not only contributed to balancing work and life but also to improving productivity by adopting a flexible work schedule in Korea to help eliminate unnecessary overtime and to maximize work performance through effective time management.

257

258

Samsung Electronics has established a Creative Development Research Institute System to provide employees with opportunities to pursue creative new ideas that take full advantage of their talents and professional passions in a way that encourages taking risks. This new initiative encourages employees to be more entrepreneurial in developing creative ideas that can become new businesses. Once an employees plan is accepted, they may concentrate on the project as a member of a task force for up to one year. During this period, they will be free from their usual responsibilities and may receive a dedicated work space, development expenses and necessary equipment as appropriate. Successful outcomes are encouraged through an incentive program, however they are not subject to penalty if they dont achieve their goals.

Diversity Management
Samsung Electronics has developed various activities to create an atmosphere in which each employee can flourish.Every employee, regardless of gender, race, or country of origin must have a voice. Female Employees: Samsung offers a variety of programs for women that prevent their career from being interrupted due to child care obligations. In addition to building a pleasant work environment so that all employees can be fully committed to both work and home, parental leave can be arranged in a flexible manner to support female employees with children under 12 in Korea. Samsung is also working to - increase in-house child care facilities. Disabled Employees: They are also hiring an increased number of disabled workers to provide job opportunities and to help build their careers.

258

259

Global Diversity: Samsung Electronics continues its efforts to encourage its employees toward creativity and better work performance by investing in infrastructure, embracing diversity, and raising awareness in working together.In view of our ever-growing global workforce, we introduced a reverse deployment scheme under which foreign employees are dispatched to Korea to experience Samsung corporate culture and to alleviate cultural differences. At the same time, to enhance the efficiency in managing the global workforce, we also aligned the HR system to standardize the position evaluation system. In particular, we run a global help desk, targeted at foreign employees in Korea who do not speak Korean, which provides necessary information and various services needed for life in Korea, starting with supporting VISA applications to everyday life in Korea. Wide varieties of activities are supported for foreign employees in Korea, such as Korean language classes and dedicated group activities; also, all the internal materials are translated into English. Strengthening Compliance Management System: The importance of legal compliance and business ethics is increasing as Samsung Electronics is expanding its business into global markets. Samsung Electronics, therefore, established a compliance team in 2010 in order to further strengthen the compliance management structure through the implementation of programs including publication of a compliance management manual, establishment of an evaluation and compensation structure, analysis of compliance status, and identification of improvement measures.

259

260

Internal Awareness Raising on Compliance: In order to assert their commitment to compliance, Samsung declared a zero-tolerance principle in all cases of misconduct and unethical business conduct on Law Day on April 25, 2011. In addition, all employees and executives signed a pledge of compliance which commits each to abide by all Korean and foreign laws, as well as Samsung Electronics code of conduct, in addition to agreeing to take responsibility for any violations or misconduct. In order to raise internal awareness on compliance, Samsung Electronics developed and strengthened the training programs for new and existing employees.

Increasing Social Contribution: As a responsible corporate citizen, Samsung Electronics believes that they must play a vital role in maintaining and enhancing the sustainability of local communities in which they operate. In addition to contribution programs in donations and volunteer activities, it launched a Global
Social Contribution Program in 2011. Samsung integrated various social contribution activities

which have been conducted in different regions into a single program titled Samsung Hope for Children. Focused on supporting good health and education of children and youth, Samsung subsidiaries in different regions conducted various support programs including youth education support, low-income youth health benefits and job trainings, tailored for needs of the youth and children of respective local communities. In 2011, Samsung Hope for Children program activities were conducted in 30 countries in nine different regions. We plan to expand the program to 55 countries including Turkey, Malaysia, Canada and more.

CSR in the Supply Chain: Samsung have supported the establishment of a CSR management structure by supplier companies and incorporated CSR activities as a part of our supplier evaluation criteria to further incentivize their participation in CSR activities. They also implemented a third party validation program of supplier CSR activities. They also made a statement of support for a ban on mineral
260

261

products that come from conflict areas, and we are collaborating with government agencies and suppliers, in Korea and overseas, to support the ban.

Quality and Services: Samsung has various businesses globally to provide products and services that meet customer requirements in terms of satisfaction, reliability and trust.

261

262

CSR by Sony:
Sony's founders believed that a company should always strive to create value for society, and this idea serves as a foundation of their CSR activities. They believe that fulfilling their responsibilities as a corporate citizen is integral to the sustainability of their businesses, and as such, in concert with the expectations of their stakeholders, they will continue to deliver not only innovative products, content, services and technology, but sound business practices as well. In 2011, in the immediate aftermath of the Great East Japan Earthquake and floods that affected Thailand and its neighboring countries, the Sony Group came together to provide assistance for relief and recovery efforts, including through employee donations and volunteer programs. Sony's operations were affected significantly by both events, and we are currently drawing on these experiences to reinforce their business continuity planning and risk management systems.

Other fundamental components of CSR, such as effective corporate governance, compliance, and responsible sourcing, also play a key role in a company's ability to fulfill its responsibilities as a corporate citizen. The management and employees of the Sony Group are committed to working as one to ensure the success of its efforts in these areas. They also acknowledge the importance of pursuing innovations tied in with their business strategies that will contribute to the creation of a sustainable society. In order to contribute to the resolution of global challenges that they all face, they are committed to creating products that pose less impact on the environment and addressing global social issues such as poverty and education by contributing to the achievement of the Millennium Development Goals through uniquely Sony initiatives. 1. Corporate Governance: Sony has long been committed to strong corporate governance, as one of its most important management initiatives. As a part of this effort, in 2003, Sony adopted the "Company with Committees" corporate governance system under the Companies Act of Japan. In addition to complying with the requirements of applicable governance laws and regulations, Sony has

262

263

introduced its own requirements to help improve and maintain the soundness and transparency of its governance by strengthening the separation of the Directors' function from that of management and advancing the proper functioning of the statutory committees. Under Sony's system, the Board of Directors defines the respective areas for which each of the Corporate Executive Officers is responsible and delegates to them decision-making authority to manage the business, thereby promoting the prompt and efficient management of the Sony Group. A. Governance Structure (Updated on August 3, 2012) Sony Corporation is governed by its Board of Directors, which is appointed by resolution at the annual shareholders' meeting. The Board has three committees (the Nominating Committee, Audit Committee and Compensation Committee), each consisting of Directors named by the Board of Directors. Corporate Executive Officers are appointed by resolution of the Board of Directors. In addition to these statutory bodies and positions, Sony has Corporate Executives who carry out business operations within designated areas.

Primary Roles of the Governance Entities Board of Directors:

Determines the fundamental management policies of the Sony Group Oversees the management of Sony Group's business operations Appoints and dismisses the statutory committee members Appoints and dismisses Representative Corporate Executive Officers and Corporate Executive Officers
263

264

Nominating Committee:

Determines the content of proposals regarding the appointment/dismissal of Directors

Audit Committee:

Monitors the performance of duties by Corporate Executive Officers through reviewing structure to ensure the adequacy o f the financial reporting process, structure to enable management to ensure the effectiveness of internal control over financial reporting, structure to ensure timely and appropriate disclosure and to ensure compliance with any applicable law, Articles of Incorporation and internal policies and rules and status of any other items described in the Internal Control and Governance Framework determined by the Board of Directors in accordance with the Companies Act of Japan and also monitors the performance of duties by Directors through attending the Nominating Committee or Compensation Committee and reviewing the Business Report and the documents relating to the proxy statement.

Oversees and evaluates the work of independent auditor, including to evaluate the adequacy of its independence and its qualification, to propose its appointment/dismissal or nonreappointment, to approve its compensation, to evaluate the appropriateness of its audit regarding the financial results and internal control over financial reporting, and to preapprove its engagement for any other services than audit services to be provided.

Compensation Committee:

Sets policy on the contents of individual compensation for Directors, Corporate Executive Officers, Corporate Executives and Group Executives, and determines the amount and content of individual compensation of Directors and Corporate Executive Officers in accordance with the policy

264

265

Corporate Executive Officers:

Make decisions regarding the execution of Sony Group business activities within the scope of the authority delegated to them by the Board of Directors

Corporate Executives:

Carry out business operations within designated areas, including business units, headquarters functions, and/or research and development, in accordance with the fundamental policies determined by the Board of Directors and the Corporate Executive Officers

B. Risk Management System: Each Sony Group business unit, subsidiary or affiliated company, and corporate division is expected to review and assess business risks on a regular basis, and to detect, communicate, evaluate and respond to risk in their particular business areas. In addition, Sony Corporation's Corporate Executive Officers have the authority and responsibility to establish and maintain systems for identifying and controlling risks with the potential to cause losses or reputational damage to the Sony Group in the areas for which they are responsible. The Corporate Executive Officer in charge of Compliance is tasked with promoting and managing the establishment and maintenance of such risk management systems through the coordinated activities of the Group Risk, Compliance, Internal Audit and other relevant groups. The Group Risk Office has been established in Sony Corporation to promote risk management initiatives, such as business continuity planning, across the organization.

Crisis Management System:

One aspect of risk management is the proper handling of crises if and when they arise, and the proper preparation for such crises. Sony's crisis management and business continuity activities predominately occur at the business and operational level closest to the events the Company may encounter. Since some events can have a significant impact on the entire Sony Group as a whole,

265

266

Sony has established a Group crisis management procedure to enable a swift and organized Group-wide response to crises as needed. Under this system, crises are evaluated and classified into three levels to ensure dynamic and appropriate responses. Level 1 is defined as a crisis with the possibility of significant impact on the Sony Group, and the possibility of serious negative impact on the business of the Sony Group or its reputation, and will be handled under the direction of the CEO. Level 2 is a crisis that is determined not to be Level 1, but still has the possibility of widespread impact within the Sony Group, and will be addressed by a crossfunctional committee composed of headquarters executives relevant to the issue. Level 3 is a crisis that the Corporate Executive Officer in charge of the subject area determines may be resolved within his/her authority.

2. Compliance Ethical business conduct and compliance with applicable laws and regulations are fundamental aspects of Sony's corporate culture. To this end, Sony has established a Global Compliance Network comprised of the Compliance Division at the corporate headquarters, a global compliance leadership team, and regional compliance offices around the world. Additionally it has adopted and implemented the Sony Group Code of Conduct, and set up Compliance Hotline systems through its Global Compliance Network. Sony has taken these actions in order to reinforce the Company's worldwide commitment to integrity and help assure resources are available for employees to raise concerns or seek guidance about legal and ethical matters.

In May 2003, Sony adopted the Sony Group Code of Conduct, which sets the basic internal standards to be observed by all directors, officers and employees of the Sony Group, in order to emphasize and further strengthen corporate governance, business ethics and compliance systems throughout the Sony Group. In addition to legal and compliance standards, the Code of Conduct sets out the Sony Group's basic policies concerning ethical business practices and activities on such topics as respect for human rights, safety of products and services, environmental conservation and information disclosure.
266

267

The Code of Conduct has been adopted and implemented by each Sony Group company globally and is the subject of frequent "tone from the top" messaging and other training. To date, the document has been translated into 26 languages.

The Sony Group Code of Conduct reflects principles set out in the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the United Nations Global Compact and the United Nations Universal Declaration of Human Rights. Sony also participated in the formulation of and observes the standards outlined in the Charter of Corporate Behavior of the Keidanren (Japan Business Federation), an alliance of Japan's leading corporations.

Internal Hotline System:

Following the adoption of the Sony Group Code of Conduct, Sony also established a Sony Group Compliance Hotline system as a resource for employees to report concerns or seek guidance about possible violations of laws or internal policies, and to allow the Sony Group to respond swiftly to potential risks of such possible violations. The Sony Group Compliance Hotline system is available worldwide.

The Sony Group Compliance Hotline system is directly linked to the Corporate Executive Officer in charge of Compliance. The Compliance Hotline is operated independently from the ordinary line of command, and callers who report issues in good faith are protected from any possibility of retaliation for the report. Summaries of hotline calls, results of investigations, and updates on the operation of the system are reported to senior management and the Audit Committee.

During fiscal 2011, the Sony Group received approximately 400 hotline contacts covering issues primarily relating to employment, labor, work environment, information management and possible conflicts of interest. All contacts received are investigated for the purpose of verification
267

268

and appropriate action. In certain cases, these contacts have led to a review of internal procedures and the strengthening or enforcement of internal rules.

Educating Employees about the Sony Group Code of Conduct and the Internal Hotline System: To ensure that all employees understand the importance of the Sony Group Code of Conduct, as well as to promote use of the internal hotline system, Sony Group senior management informs executives and employees about these topics through ongoing dissemination of e-mails, as well as implementation of online and class room training. Further, Sony Group executives and senior management with a certain level of authority are annually requested to submit a certification stating that they understand that all personnel must comply with applicable laws, regulations and internal policies and the need, in their role as managers, to communicate the importance of acting ethically and compliance with applicable laws, regulations and internal policies. Sony Group companies inform their employees about the Code and the internal hotline system on an ongoing basis through the dissemination of e-mails, booklets, wallet cards, posters, feature articles in internal newsletters, and/or postings on the company's intranet. In addition to these initiatives, the Sony Group provides education and training sessions that use e-learning and other approaches presenting real-life examples to impart more in-depth expertise regarding business ethics and individual aspects of the Sony Group Code of Conduct that are
268

269

crucial to compliance by the Sony Group. These include fairness in competition and business dealings, anti-bribery, and the prevention of discrimination and harassment in the workplace. Sony has adopted a compliance education protocol that sets forth minimum mandatory global communications and training requirements in a wide range of compliance areas. Through ongoing communication, awareness and training efforts, Sony will continue to promote a thorough Group-wide understanding of the importance of the policies and values set forth in the Sony Group Code of Conduct. 3. Quality and Services: Sony has various businesses globally to provide products and services that meet customer requirements in terms of satisfaction, reliability and trust. 4. Responsible Sourcing In recent years, stakeholders have grown increasingly aware of the importance of companies fulfilling their overall responsibilities to society as corporate citizens, including managing their supply chains in a responsible manner. In response to stakeholder concerns, Sony is working with its suppliers to address issues related to human rights, labor conditions, health and safety, and environmental protection at the production sites of outsourcing partners and parts suppliers, as well as in its procurement of minerals and other raw materials. CSR in the Supply Chain: Sony is committed to fulfilling its responsibility to society as a corporate citizen, including managing its supply chain in a responsible manner. To achieve this goal, Sony is working with its business partners, suppliers and subcontractors to help ensure that they adhere to the same high standards as Sony in the areas of human rights, labor conditions, health and safety, and environmental protection. Basic Structure of the Supply Chain 5. Human Resources: Sony endeavors to create a rewarding corporate climate that supports the efforts of a diverse range of employees.
269

270

Since its establishment in 1946, Sony has sought to remain at the forefront of technological development, building continuously on its achievements to create new lifestyles for people everywhere. Sony has also fostered groundbreaking new businesses, adopting an innovative approach to this challenge that exceeds national and regional boundaries. In these efforts, Sony recognizes its employees to be one of the most crucial aspects of its corporate foundation.

Sony acknowledges that its ongoing ability to offer dream-inspiring products and services and exciting new lifestyles around the world depends on its ability to secure and foster talented employees with a wide range of values and personalities, irrespective of nationality, culture, race, gender, age, or the presence or absence of physical limitations. Guided by the concepts of diversity and inclusion, Sony recruits individuals from various backgrounds. Sony also strives to create positive working environments and opportunities that enable individuals with diverse backgrounds to fulfill their potential by learning from one another, believing these to be essential to a rewarding corporate climate. 6. Community Sony continues to undertake a wide variety of community engagement initiatives based on the Sony Group's community engagement policy, which is to undertake activities in fields where it is best able to do so to help address the needs of the communities in which Sony operates. In the phrase "For the Next Generation" to describe its CSR activities, Sony strives to have a positive impact through these activities by leveraging its products, business activities and employees, independently and in partnership with various organizations. 7. Environment: Sony recognizes the importance of preserving the natural environment that sustains all life on the earth for future generations and thereby ensuring that all humanity can attain a healthy and enriched life. To this end, Sony strives to achieve a zero environmental footprint throughout the lifecycle of our products and business activities. By capitalizing on our superior technologies and our ability to innovate, we strive not only to reduce the environmental impact of our business

270

271

activities, but also to deliver environmentally conscious products and services that enrich our customers' lives. 8. Innovation for sustainability: Sony continues to address the challenge of realizing new potential through creative technologies, products and services and a spirit of innovation that focuses on contributing to society. This challenge is undertaken in partnership with a diverse array of stakeholders. 9. Stakeholder Engagement and Partnership: For Sony, engaging and working together with various stakeholders is vital for pursuing CSR activities. Sony not only promotes engagement with stakeholders in implementing its CSR activities but also encourages the participation of multiple stakeholder groups in the planning of those activities, thereby contributing to the creation of a global framework. 10. Engaging Employees: Sony is engaged in a variety of efforts in line with its belief that a solid in-house organization and a high level of employee awareness is essential to ensuring the effective coordination of its CSR initiatives. Raising Awareness: Recognizing the importance of raising employee awareness with regard to the effective promotion of CSR, Sony offers a variety of educational programs based on a three-level approach, whereby employees are encouraged first to learn about CSR, second to participate in CSR activities and third to incorporate CSR into their day-to-day work. Sony provides employees with essential training to facilitate the sharing of information, disseminates pertinent news and stages the CSR Forum, featuring lectures by invited experts, film screenings and other activities designed to enhance awareness of each individual's obligations to society.

271

272

Sony's community engagement projects offer a uniquely Sony approach, that is, an employee volunteer-driven organization that contributes to society while at the same time encouraging employee involvement. Employee Participation: Sony believes that employee participation is crucial to ensuring its community engagement activities are truly meaningful. Accordingly, Sony encourages employees to be aware of social issues, strive constantly to deepen their understanding and then to participate in fundraising initiatives, community projects and/or other activities. Sony also encourages employees to act as instructors for workshops organized for children and students and in other capacities that capitalize on their specialized skills, as well as to participate in Public Viewings and other social contribution initiatives in developing countries.

CULTURE Application of the Hofstedes Cultural Dimensions on Samsung

Power Distance: At a score of 60, South Korea is a hierarchical society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat. Therefore, since the home country of Samsung is South Korea, it is obvious that they have intentionally or unintentionally adapted the same culture in their business practices. Thus the Power distance is high which means that the decision making is centralized.

272

273

Individualism vs. Collectivism: South Korea, with a score of 18 on individualism is considered as a collectivistic society. This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employees in-group, management is the management of groups. Samsung culture is highly towards collectivism as they encourage working in teams, team development, team motivation etc. Masculinity / Femininity: South Korea scores 39 on this dimension and is thus considered a feminine society. In feminine countries the focus is on working in order to live, managers strive for consensus, peoplevalue equality, solidarity and quality in their working lives. Conflicts are resolved by compromise and negotiation. Incentives such as free time and flexibility are favored. Focus is on well-being, status is not shown. An effective manager is a supportive one, and decision making is achieved through involvement. This shows that in Samsungs culture, the decision making is not centralized nor the decisions are made and imposed on the employees. Instead, the decisions are made after getting the inputs from the employees. Moreover, they all support, help and motivate each other. Uncertainty avoidance: At 85, South Korea is one of the most uncertainty avoiding countries in the world. Countries exhibiting high uncertainty avoidance maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and
273

274

work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation. Sony culture also incorporates high uncertainty avoidance activities. CSR is one of the many steps it is taking to avoid uncertainties.

Application of the Hofstedes Cultural Dimensions on Sony

Power Distance: At a score of 54, Japan is a mildly hierarchical society. Japanese are always conscious of their hierarchical position in any social setting (be it in age or in the position in the office) and act accordingly. However, it is not as hierarchical as most of the other Asian cultures. Some foreigners experience Japan as extremely hierarchical because of their business experience of painstakingly slow decision making process: all the decisions must be confirmed by each hierarchical layer and finally by the top management in Tokyo. Paradoxically, the exact example of their slow decision making process shows that in Japanese society there is no one top guy who can take decision like in more hierarchical societies. Another example of not so high power distance is that Japan has always been a meritocratic society. There is a strong notion in the Japanese education system that everybody is born equal and anyone can get ahead and become anything if he works hard enough. Therefore, since the home country of Sony is Japan, it is obvious that they have intentionally or unintentionally adapted the same culture in their business practices. Thus the Power distance is not low in other words the power distance is high/ slightly high as compared to USA etc. Individualism vs. Collectivism: Japan scores 46 on the Individualism dimension. Certainly Japanese society shows many of the characteristics of a collectivistic society: such as putting harmony of group above the expression of individual opinions and people having a strong sense of shame for losing face. However, it is
274

275

not as collectivistic as most of her Asian neighbours. The most popular explanation for this is that Japanese society does not have extended family system which forms a base of more collectivistic societies such as China and Korea. Japan has been a paternalistic society and the family name and asset was inherited from father to the eldest son. The younger siblings had to leave home and make their own living with their core families. One seemingly paradoxal example is that Japanese are famous for their loyalty to their companies, while Chinese seem to job hop more easily. However, company loyalty is something which people have chosen for themselves, which is an individualistic thing to do. You could say that the Japanese in-group is situational. While in more collectivistic culture, people are loyal to their inner group by birth, such as their extended family and their local community. Japanese are experienced as collectivistic by Western standards and experienced as individualistic by Asian standards. They are more private and reserved than most other Asians. Still, the ratio shows that Japan is a country high in Collectivism. Sony culture is highly towards collectivism as they encourage working in teams, team development, team motivation etc. Masculinity / Femininity: At 95, Japan is one of the most masculine societies in the world. However, in combination with their mild collectivism, you do not see assertive and competitive individual behaviors which we often associate with masculine culture. What you see is a severe competition between groups. From very young age at kindergartens, children learn to compete on sports day for their groups (traditionally red team against white team). In corporate Japan, you see that employees are most motivated when they are fighting in a winning team against their competitors. What you also see as an expression of masculinity in Japan is the drive for excellence and perfection in their material production (monodukuri) and in material services (hotels and restaurants) and presentation (gift wrapping and food presentation) in every aspect of life. Notorious Japanese workaholism is another expression of their

275

276

masculinity. It is still hard for women to climb up the corporate ladders in Japan with their masculine norm of hard and long working hours. Since Sony strongly shows drive for excellence and perfection in their products and the employees are workaholics in nature and want to achieve more and more. This shows that their culture is highly Masculine. Uncertainty avoidance: At 92, Japan is one of the most uncertainty avoiding countries on earth. This is often attributed to the fact that Japan is constantly threatened by natural disasters from earthquakes, tsunamis, typhoons to volcano eruptions. Under these circumstances Japanese learned to prepare themselves for any uncertain situation. This goes not only for the emergency plan and precautions for sudden natural disasters but also for every other aspects of society. You could say that in Japan anything you do is prescribed for maximum predictability. From cradle to grave, life is highly ritualized and you have a lot of ceremonies. For example, there is opening and closing ceremonies of every school year which are conducted almost exactly the same way everywhere in Japan. At weddings, funerals and other important social events, what people wear and how people should behave are prescribed in great detail in etiquette books. School teachers and public servants are reluctant to do things without precedence. In corporate Japan, a lot of time and effort is put into feasibility studies and all the risk factors must be worked out before any project can start. Managers ask for all the detailed facts and figures before taking any decision. Sony culture also incorporates high uncertainty avoidance activities. CSR, internal hotline system in Compliance, educating employees about the Sony Group Code of Conduct etc are some of the many steps they are undertaking to avoid Uncertainty.

276

277

Diagrammatic Representation of South Korea & Japans Hofstedes Cultural Dimensions

CONCLUSION: Both of the companies are performing well in their own ways and have a strong brand image as well as strong global presence. These all contribute to a good market share, customer loyalty and good brand equity. Customers like these brands more because they fulfill their promise of providing quality and innovative products by keeping in mind the Corporate Social Responsibility. Before starting any business, one should plan for all types of uncertainties that can occur and how to cope up with them efficiently. This means that the business environment should be high in uncertainty avoidance which will consider factors like CSR etc while doing the business. Rest of the factors that are low or high power distance, masculinity or femininity, individualism or collectivism are all good in their own ways and all contribute towards the success of the business in their own ways. Thus, the main dimension to look at is the uncertainty avoidance which should be considered regardless of the fact that in which country you are going to start the business and what culture exists there.
277

278

References: http://en.wikipedia.org/wiki/Sony http://en.wikipedia.org/wiki/Samsung_Electronics http://www.goodlogo.com/extended.info/sony-vaio-logo-2801 http://www.radiomuseum.org/forum/sony_the_history_of_the_sony_logos.html http://www.sony-europe.com/article/id/1178278971500 http://geert-hofstede.com/japan.html http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/download/ 2012/2012_sustainability_rpt.pdf

278

279

279

280

280

281

281

282

282

283

283

284

284

285

285

286

286

287

287

288

288

289

289

290

290

291

291

292

292

293

293

294

294

295

295