Exam 5 Flashcards
International business requires communication
between people from different countries and
cultures who often speak different languages
true
If you do business abroad, you will need to learn how
to give information and how to get information
t
The American way of “telling it like it is” and
“getting straight to the point” are often the wrong
approaches to doing business abroad
t
You will need an understanding of HOW people
deal with each other, WHY they say the things they
say and WHY they behave the way they do
t
Most executives agree that one of the biggest problems
in doing business internationally is the
language
Most people around the world do not speak English
t
Outside the major cities or in most project or field offices,
employees do not speak English other than in a rudimentary
way
They may be able to read or
write English at a very basic
level but they are thrown off
by accents, by people speaking
too fast or use of idioms
t
What Is an Idiom?
Words or phrases that have a meaning
which isn’t obvious from looking at the
individual words
American idioms often rely on analogies
and metaphors
If you are not familiar with idioms, it’s
almost impossible to understand them
When doing business internationally, you may be required to
communicate ideas, directions or information to employees,
suppliers, customers, the media and government officials who
may not speak English or understand the American style of English
Doing Business Abroad
- Your company has a partnership or joint venture with
a foreign company and you may need to have a conference call with the people in that company who do not speak English or who barely speak English - You may need to give a presentation to employees of
your company who work in another country – they may have only a very rudimentary understanding of English - You may have to attend a business dinner with people who are not familiar with English
In England, to “table” a topic means
to put it on the table for discussion
In America, to “table” a topic means
postponing discussion of the topic
t
How To Give
and Get Good
Information When
Traveling Abroad …
- Know Where Information Flows
- There is no point in
getting straight to the point - Make it easy for people
to understand you - Don’t mistake a courteous
answer for the truth - Silence is a form of speech,
don’t interrupt it - Learn the Nuances of Body Language
Some Tips for International Businesspeople …
- Be aware of where you are – what country am I in?
- Work hard to understand the other culture, language, customs, currency – your hosts will appreciate it – it’s a sign of respect
- Avoid American idioms - people won’t know what you’re talking about
- Be patient with the other side – don’t act like an “American” and try to reach agreement quickly
- Be honest – admit you’re not sure of what the other people are saying
- Enjoy the ride and keep a sense of humor!
In 2022, the average salary
of CEOs at the top 350 firms
in the U.S. was
$28 million
CEOs earn around ……….
what the average worker earns
399 times
The # 1 factor
that determines
what CEOs are
paid is …
performance
CEO Compensation Usually Includes:
Base Salary + Bonus Based on Performance + Stock Options
Walmart CEO Doug McMillon’s 2022 total compensation was
$25 million … including a base salary of $1.3 million, a $3.8
million bonus and …. in stock
$17.5 million
What Does a CEO Do?
- Sets strategy and direction for the company
- Determines how the company spends its money
- Keeps an eye on the market and the competition
- Makes sure the company is developing new products and services
- Hires (and fires) a senior leadership team that manages
day-to-day operations of the business - Responsible for short- and long-term profitability and
growth of the company
CEOs Must Manage Their Time & Make Decisions!
t
CEOs Have Many Stakeholders
Board of Directors, shareholders, customers,
employees, government agencies that regulate the
industry, the media, communities, competitors …
Characteristics of Great Leaders
- They have a vision for what the company is trying to achieve, not just in the next year or two, but 10 years down the road
- They make sure the entire organization is aligned and
rowing in the same direction - They help people understand that success means seeing beyond your own department or business unit and thinking of what the entire organization is trying to achieve
- They play well on teams they don’t lead (In other words, they’re good teammates!!!)
- Great leaders know how to develop other excellent leaders; they know how to groom their own replacement
(“True leaders don’t create followers. They create more leaders.”)
In 1970 – at the age of 20 – he opened a chain of record stores,
Virgin Records
The Virgin brand grew rapidly during the 1980s, and he eventually
expanded the Virgin Records music label and started Virgin Atlantic
Airlines
He now owns more than 400 companies
In 2004, he founded spaceflight corporation Virgin
Galactic, focused on space tourism
Who did this?
Richard Branson
Branson doesn’t believe he has all the best ideas; as a result,
he’s known as a great listener – he wants his employees to
come up with great ideas.
t
My Worst Boss
- “Don’t do anything until you are told to do it” – didn’t encourage initiative
- “You messed up” instead of “What did you learn from your mistake?”
- “Here’s what I think we should do” instead of “What do you think we should do?”
- Couldn’t make decisions – projects got delayed
- Often yelled and screamed – people avoided her
- Rarely said “Nice job!” or “Thank you!”
Al Dunlap Scott
- Named CEO by the Scott Paper company in 1994
- Abused His Power
*Fired 11,000 employees (1/3 of total)
*Fired a lot of people “on the spot” – lots of yelling and screaming – emotional intelligence? - Slashed R&D budget and closed manufacturing plants
- Eliminated all charitable activities
- Moved corporate HQ from Philadelphia to Boca Raton so he could play golf year-round
Al Dunlap increased shareholder value by…
225%
Mr. Stumpf must pay
17.5 million (of his own money) in fines
Steve Jobs once told a reported that…
taking LSD in college was “one of the two or three most important things” he had done in his life
Steve Jobs
introduced the personal computer to the world and
led Apple to become one of the most successful companies in
the history of business
Under Jobs’ guidance, Apple released the Lisa, the first-ever
computer with a graphical user interface. It was a technical marvel but a total flop sales-wise.
t
His follow-up project, the Macintosh, sold better — but still not well enough to make a sizable dent in IBM’s control of the PC market
t
Jobs was fired from Apple following a power struggle
with CEO John Sculley
t
Jobs was…
Pioneer … Innovator … Visionary … Futurist …
Charismatic … Marketing Genius … Motivator
… Inspirational Leader …
&
Stubborn Perfectionist … Extremely Demanding
Boss … Harsh With People … Cruel … Set
Unrealistic Expectations … De-Motivated His Teams
Jobs’ famously intense leadership style had alienated many of his
underlings and fellow executives at Apple
t
His management style has been characterized as …
“abusive” and “belligerent”
Jobs was difficult to work with. He sweated the details,
micromanaged his team, hurt peoples’ feelings and
demotivated them …
but got results
An aggressive and demanding manager can sometimes be perceived as
an inspirational leader if business results are strong.
If the results are not
there, however, that same leadership style can be seen as abusive
After creating Pixar…
Jobs came back as Apple’s CEO in 1996
Apple’s business had been faltering and he is credited
with getting it back on track. The rest is history.
Elizabeth Holmes
Born in Washington, DC
She’s 39 years old
In high school, she was interested
in computer programming and
started her first business selling
coding software to Chinese universities
Dropped out of Stanford at 19 to start Theranos
Elizabeth Holmes was…
“Obsessive”
- Idolized Steve Jobs – she always wore black turtlenecks … just like Steve Jobs
- Very secretive about her life and her business
- Obsessed with security … chauffeured in a rented black Audi without license plates … like Steve Jobs did
- Her office had bullet-proof glass
- In 2014, Forbes called her the youngest self-made female billionaire ever!
Building Theranos …
- Family friend and billionaire venture capitalist
- Tim Draper seeded her first million dollars
- She rented lab space and began hiring employees
- And kept raising money … by 2014, she had raised $400 million
- On paper, investors valued the
company at $10 billion
What is Theranos?
- Theranos promised a new solution: Pain-free tests with a pin-prick that could identify up to 70 different markers from a single drop of blood
- Results delivered to your phone in hours
- Every single test cost less than
Definition of Fraud
*1a : DECEIT, TRICKERY;
intentional perversion of truth
in order to induce another to
part with something of value
n his book, “Bad Blood: Secrets
and Lies in a Silicon Valley
Startup,” Carreyrou says
that almost every word coming
out of Holmes’s mouth as she
built and ran her company was
either grossly embellished or,
in most instances, outright
deceptive
t
While the Theranos personalized blood tests SEEMED ready to revolutionize medicine and the company’s technology SEEMED incredibly innovative, no one was able to get Holmes to discuss EXACTLY how that technology worked
t
- The company’s blood testing device, a machine called Edison,
couldn’t accurately detect enough molecules in blood samples to provide accurate readouts - Because Edison couldn’t get things right, Theranos diluted samples taken via the fingerstick and ran them through blood testing devices manufactured by Siemens – the same type of equipment used by every other blood testing company – Theranos was using these off-the-shelf machines to run most of its tests
t
- When Holmes was putting a deal together with Walgreens, she created completely false blood test results from Theranos.
- When Theranos’ CFO found out and starting asking questions, Holmes fired him on the spot.
t
Holmes told potential investors that Theranos was going to generate $10 million in revenue in 2014, but….
- The company actually was on track to make only
$100,000 that year
Holmes lied about a contract Theranos had with the US Department of Defense. She said her technology was being used in the battlefield, but…
It wasn’t.
In March 2018, the Securities and Exchange Commission charged Holmes and Balwani with fraud, stripped Holmes of her controlling stake in the company, fined her $500,000 and barred her from being an officer or director of a public company for 10 years
Two years ago, the U.S. attorney’s office in San Francisco indicted both Holmes and Balwani and charged them with fraud
Convicted of conspiracy to commit fraud on investors.
Sentenced to 11 years in prison.
t
The average American home has nearly tripled in size
over the past 50 years
t
There are 300,000 items in the average American home
t
1 out of every 10 Americans rents offsite storage – the
fastest growing segment of the commercial real estate industry
over the past four decades
t
25% of people with 2-car garages don’t have room to park cars in them; 32% only have room for 1 vehicle
t
3% of the world’s children live in America but they own 40% of the toys consumed globally
t
Average American family spends $1,700 on clothes annually …
t
Average American throws away 65 pounds of clothing a year
t
Americans spend more on shoes, jewelry and watches
($100 billion) than on higher education
t
Americans spend ……… annually on nonessential goods – items they do not need
$1.2 trillion
Why Do We Buy So Much Stuff?
We think it will make us secure
We think it will make us happy
We are hoping to impress other people
We are jealous of people who own more
We are trying to compensate for our deficiencies
We are more selfish than we like to admit
We’re more susceptible to advertising than we believe
Defenders of Advertising Say That It:
- informs people about goods and services
- sells images of glamour, sex or adventure that consumers want
- is an aspect of free competition in a competitive market
- subsidizes the media
Critics of Advertising Say That It:
- creates dissatisfaction with our lives
- leads to unhappiness
- encourages excess and frivolous consumption
- encourages selfishness & materialism
how much is spent on advertising worldwide?
$780 billion
How much os spent on ads in the US?
$297 billion
Advertising =
Purchasing Decisions
90% of advertisements influence consumers to make a purchase
t
Americans spend $55 billion on cosmetics every year
t
We spend $50 billion a year on weight loss
t
The average gym membership in US is $55 a month
60% of gym members never use their membership
t
Americans spend $30 billion on athletic apparel
t
Americans spend $16 billion a year on plastic surgery
t
The Principle of Social Proof
Social proof is a principle of persuasion which maintains that
people are especially likely to perform certain actions if they
can relate to the people who performed the same actions
before them
The Principle of Social Proof Drives the Advertising Business!
