Managing a Foreign Subsidiary
Outline 1. Introduction The objective of the research is to manage the subsidiary of Metersbonwe in Brazil and Russia. Metersbonwe is a Chinese local clothing brand.
Metersbonwe was founded in 1994, and it specializes in casual wear. The reasons why I choose this brand is that I’m a young man, and I think the design of Metersbonwe is very suitable for the young people. Also, Metersbonwe is a popular brand with low price, so, the developing country like Russia and Brazil could adapt the price.
However, to manage a subsidiary in a foreign country is full of challenge, and the one of the important factor to make it success is The Five Dimensions of National Culture. Power Distance (PDI): the extent to the power distribution is unequally in the less powerful member. Individualism versus Collectivism (IDV): the extent to the individuals integrates into the group. Masculinity Femininity (MAS): the degree of the sexism in the culture. Uncertainty Avoidance (UAI): how this culture treat the uncertainty and ambiguity.
Long-Term Orientation (LTO): the Long-term cultures value thrift and perseverance, but, the short-term cultures value tradition, the fulfillment of social obligations and protecting honors. The other factor is the leadership style. There 3 different leadership styles is Authoritarian Style, Democratic Style, Laissez-Faire Style respectively. I think my leadership style is Democratic Style, because I will not be authoritarian to make the company all listen to me, A man’s wisdom is limited, so, I need group’s wisdom to help the company become stronger.
I will also not be Laissez-Faire Style, as a subsidiary company’s leader, I have a responsibility to carry the company. The research is anticipated to manage Metersbonwe in Russia and Brazil. The most important elements to manage the subsidiary in Russia and Brazil are local culture, people’s cloth wearing habit and the weather. 2. Methods The only data collection method used in the research is Internet research, because, it’s limited by the source around.
But the amount of the information on the internet was plenty, also, is easy to get the useful information on the internet, although the data collect by internet research may have less authenticity and accuracy, it is enough for this research. The internet research provided lot background knowledge, relatively official information about the company, many culture conventions in the Russia and Brazil and the Unilever’s business model in Russia and Brazil to locate the research, the internet research method helps a lot in this research. . Findings 2. 1. Examine the cultural conventions influencing business In Russia and Brazil Russia: Normal business hours are 9 a. m. to 5 p. m. Mondays to Fridays, and It is not unusual for Russians to renegotiate a contract. Brazil: Schedule the business meeting at least 2 weeks. Use casual conversation to start a business meeting or negotiation. 1. 2. 3. 4. 1. 4. 2. Determine Unilever’s business model in Russia and Brazil Russia: * Focused on special development program * Building leadership in large categories Using employees from 11 different nationalities Brazil: * have a local structure * top notch infrastructure * 10 major categories to sustained market leadership 2. Discussion 3. 2. Interpret the findings in light of thesis statement 3. 3. 1. Advantage for Metersbowe in Russia Diversity staff to build up the company’s culture exchange 3. 3. 2. Disadvantage for Metersbonwe in Russia Need long time to reconcile the cross culture staff 3. 3. 3. Advantage for Metersbonwe in Brazil Is not emphasize the culture convention . 3. 4. Disadvantage for Metersbonwe in Brazil 3. 3. Assess the effectiveness of the research * Not enough information to locate the Unilever’s business model in Russia and Brazil * Only internet research to fulfill the report, no other reliable source of data 3. Conclusions 4. 4. Identify and justify the Metersbonwe in Brazil * the country I choose to manage Metersbonwe is Brazil * Metersbonwe as a new brand access in Brazil clothing market 4. 5. Suggestion * More source of data provide * Confirm the accuracy of the data