...economy to foreign investors and businesses. Korea’s strong economic growth provides Lowe’s with the ideal situation of opening up stores before their competitors. Based on research I conducted, this assessment considers the potential of expanding Lowe’s into the Korean market. With any major investment, it is important to consider the monetary and non-monetary aspects including gaining an understanding of the culture, the ideal management approach, past and future trends, along with political roadblocks. In this paper, the following information provides a roadmap to the decision-making process. First, an assessment of the Lowe’s vision, mission, and promise are discussed and compared to the similarities and differences within Korea. Then, an analysis considers Korean trends that support the expansion of Lowe’s. Next, a culture assessment of Lowe’s base country (USA) is compared against Korea including management styles to consider for the local corporate office and stores. Lastly, a communication strategy is discussed based on the cultural assessment and offers best practices for the expansion of Lowe’s into Korea. This paper is intended to assist Lowe’s senior managers begin an assessment of expansion into the Asian market via Korea by highlighting key factors necessary for success. Company Overview Founded in 1946 and based in Mooresville, N.C., Lowe's is a FORTUNE® 100 company and is the second-largest home improvement retailer in the world. A summarized version...
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...and general features Civilizational traditions • Confucianism • Taoism • Buddhism • Islam • Catholicism Historical external influences • Colonies • India establishing trading connections, mostly in South East Asia • Chinese who left China and settled as business people in the countries around the rim of the South China sea Periods: 1. 1945-1975 After the retreat of colonial powers, countries needed to reestablish their identity and political structures → hostility + Maoist experiments in China 2. 1975-1997 Relative calm period, stable growth, export to foreign countries, rise in FDI a. Mao’s death: collapse of communism → socialist market economy b. Japanese miracle c. Impressive growth of the South-Korean economy 3. Ersatz capitalism → Asian crisis in 1997: inefficient use of capital was covered up by the availability of easy money from governments, optimistic foreign investors lured by the emerging markets. The system could not keep up the pretence as it became sensitive to a downturn in the economic cycle which hit the region in 1997. → End of easy money and beginnings of reforms. 4. After 1997, reforms: • Improvements to accountability and disclosure in the financing of industry • Reduction of favoritism and corruption during control of licenses and capital • Opening of markets to foreign competition • Adoption of international standards in accounting, trading, IPR • General rise in professionalism in management and administration • Adoption of...
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...Asian Business Tutorial 7 Week 8 (m) How would you characterize and explain the process of decision making in Korean companies? (n) What changes have taken place in management in Korean companies since the crisis of 1997? -------------------------------------------------------------------------------------------------------------------------------------- (m) Owing to the strong influences of family traditions, there is a tendency for Korean corporate leaders, especially founders, to manage on the basis of principles governing the family or clan system. In the traditional Korean family, the father is the unquestioned and respected head. He has almost absolute power to wield if he so wishes. The traditional Korean father also has full responsibility to feed the family and to decide the future of his children. One legacy of such a family tradition for business leadership in Korean companies is the strong authoritarian style of superiors in the managerial process. A top-down decision-making style is fairly typical among Korean companies. Usually, 80% of the authority lies in the upper management level, with middle or lower management having very limited authority. Authoritarian leadership has been a well-accepted managerial norm under the centralized structure of Korean companies. The passive attitude of the subordinates is further conducive to the authoritarian style. The traditional decision-making pummi style (proposal submitted for deliberations) was used more to diffuse...
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... 이름: 쪼우즐빈 학번: 201218515 Psy phenomena and international success The song Gangnam Style by Psy is considered by some to be a worldwide phenomenon that has influenced global popular culture, and it also topped national music charts in Australia, Canada, France, Germany, and the United Kingdom. According to the news agency Agence France-Presse, the "phenomenal" success of "Gangnam Style" has played a significant role in spreading the Korean Wave to other countries. As the song continued to attract worldwide media attention, it also led to various broadcasting networks and national newspapers focusing its attention on Korean popular music (K-pop) and other aspects of Korean culture. For example, The Daily Telegraph published an article recommending its readers to try out everything from K-Pop to "K-Cars", "K-Phones" and "K-Cuisine". After the release of "Gangnam Style", the American talent manager Scooter Braun, who discovered Justin Bieber on YouTube, asked on Twitter "How did I not sign this guy (Psy)"Soon afterwards, it was reported that PSY had left for Los Angeles to meet with representatives of Justin Bieber, to explore collaboration opportunities. On September 3, Braun made a public announcement that was later uploaded onto YouTube, saying that he and PSY have decided to "make some history together. [To] be the first Korean artist to break a big record in the United States." On September 4, it was confirmed that PSY was signed to Braun's...
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...Global Business Cultural Analysis of South Korea John Smith University of Rochester BUS 800 – INTERNATIONAL BUSINESS Dr. Peterson March 6, 2015 Abstract Today, the United States conducts a substantial amount of business with South Korea. It is important that American managers, entrepreneurs, and businessmen understand the South Korean social, cultural, and religious dimensions of the nation. The South Korean culture and customs are uniquely different from those of the United States. The culture and customs of the United States are based on European traditions and religious Christian beliefs. The culture and customs of South Korea are based on Confucianism’s way of life, Buddhism’s individual salvation, and since the 1950’s Christianity’s redemption of the soul. American businesses that incorporate South Korean culture into American business practices will develop long lasting business relationships with their South Korean counterparts. American businessmen working in multinational corporations have adjusted well the collectivist culture of South Korea. Multinational enterprises considering cross border business in South Korea can feel safe investing in South Korea. Keywords: South Korea, United States, cultural dimensions, multinational business, Hofstede. Introduction South Korea is one of the United States most important strategic and economic partners in Asia. Members of Congress tend to be interested in South Korea for political purposes. South...
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...Korean Vs Us Management Essay Compare and Contrast US managers with the Managers of the Rebublic of Korea – business Introduction We have chosen to compare and contrast U.S. managers withthe managers of The Republic of Korea (ROK). The ROK is a tinynation of 42,621,000 people residing precariously on the southernhalf of the Korean Peninsula (Cook l995). It has a very highpopulation density with 1.121 persons/ sq. mile. They areethnically homogenous with 99.9% being Korean and .01% Chinese. The age distribution is 30% under 15 years of age and 4.3% overage 65. They have a life expectancy of 73 years of age forfemales and 66 year of age for male. The primary religions are Confucianism, Mahayana Buddhism,Ancestor Worship, Shamanism and Ch’ondagyo which account for 66%of the population with another 28% practicing the Christianreligion. The Han’gul writing system is the official language of Koreawith English being widely taught in many schools. The governmentis made up of the executive and legislative branches. The Headof the State or the Executive President is elected by directpopular vote for a 5 year term. The Legislature is comprised ofa 299-member National Assembly which is elected on a 4 year termby universal adult suffrage. The economy is estimated to produce GDP of US $121,310million with a per capita income of US $4,045/ year. The totalnumber of persons active in the economy was 16,900,000 with a 3%unemployment rate and a literacy rate of over 90% (East 1990). Koreans are...
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...venture (Koo, n.d.). Education and demographics are important to a global business venture, though I believe the economy is most important. I present information about South Korea’s economy, and how it has transformed from an aid recipient to a donor country (Globalization, n.d.). Here is where I mention the chaebol’s success, which accounted for 55.7% of South Koreas GDP in 2010 (Globalization, n.d.) Not only will I show the success of the economy, I will also describe the failing housing market (Seoul Reflects South Korea Housing Trouble, 2013). To take Western Plaza Inc. into South Korea, I had to first research the weather patterns. I saw potential problems only in the spring, when hazardous yellow sand/dust blows into Korea from China (Korean Weather, n.d.)....
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...feel that, given the lengthy stagflation seen in Japan, that it will not be too long before South Korean levels of prosperity are at a par with Japan. Both South Korea and Japan are intensely conformist societies (one of the many similarities between the two countries) but they differ in one fundamental thing. When faced with hardship or adversity the Japanese tend to turn inwards and backwards towards the familiar and comfortable whereas the South Koreans are absolute masters of change and rebuild. If things aren’t working, they just change them and they have proved adept at doing this very quickly and very effectively – you only need to look at the contrasting reactions to the crisis that hit Asia in the 1990’s. Japan is, arguably, still recovering while South Korea has long been in rude health. South Korea has also re-invented itself as the cultural epicentre of Asian culture. Korean pop music, or K-pop, has been exported with great success all over the continent and Korean TV dramas are watched from Tokyo to Beijing. South Korean films are the enormously popular throughout Asia (with the exception of India) and the level of Korea’s cultural influence continues to grow. This is not to say that South Korea doesn’t face significant challenges. The inexorable rise of China and the political, cultural and military influence that comes in its wake is something all Asian countries wrestle with. The politicians in Seoul have the...
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...Japan in Asia: A Hard Case for Soft Power by Thomas U. Berger Thomas Berger is an associate professor of International Relations at Boston University. he concept of ‘‘soft power’’—defined by Joe Nye as ‘‘the ability to get what you want through attraction rather than through coercion’’1— has proven a seductive one for Japan. Since the concept was popularized in the 1990s, Japanese scholars and policymakers have enthusiastically taken it up, eagerly exploring how Japan’s soft power resources could be exploited to burnish Japan’s image in the world and help reshape its environment in subtle but important ways. Some—perhaps encouraged by the new attention given to the popularity of Japanese anime and manga, and by the general buzz about ‘‘Cool Japan’’—have even described Japan as a ‘‘Soft Power Superpower.’’2 It sometimes seemed, in more overheated moments, that Pokemon and Sailor Moon would conquer the world, succeeding where the Imperial Army and Navy had failed.3 That soft power would prove attractive is unsurprising. Although Japan has considerable hard power resources, it has shown great reluctance to actually use them in the way that students of international relations would T 1 The idea was originally advanced by in Joseph Nye, Bound to Lead: The Changing Nature of American Power (New York: Basic Books, 1990). He has since expanded on the concept in Soft Power: The Means to Success in World Politics (New York: Public Affairs, 2004). 2 See the very useful volume by...
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...different culture than she was used to how it went wrong and what she might have done better to try and better prepare herself for the journey that she thought she could handle. I’ll analyze the problem using Hofstede’s five dimensions of culture to compare Korean and American assumptions. I will also make recommendations to her management style that might have helped accommodate the Korean environment. Linda Myers journey started out with good intentions and she felt she had a good idea of what she was getting herself into since she had been consulting for Asian firms and thought that she understood the culture well enough to fit in. Her problem was also compounded by the fact that she would be a woman trying to trail blaze into a field and culture dominated by men. It definitely did not help that she didn’t speak the language and from the reading doesn’t appear to have tried to really learn it instead relying on her associates to speak to her in English or having to use an interpreter. She came into the job with big ambitions and plans to change her Korean associate’s way of doing business not understanding that they didn’t want to change. Now let’s look at Hofstede’s five dimensions of culture to compare Korean and American assumptions. First, Power Distance (P/D) According to Mind Tools: This refers to the degree of inequality that exists – and is accepted – among people with and without power. A high PD score indicates that society accepts an unequal distribution...
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...of Korean HRM based on Confucian Values Jong-Tae Choi* College of Business Administration Seoul National University Abstract This study aims to find out the role of the Confucian family value in the process of the transformation of Korean HRM and IR in a hypercompetition period. I analyzed the characteristics and the transformation of Korean companies’ HRM as well as the core value system of Confucian familism. I suggest that a successful transformation of HRM in Korean companies requires an interplay between two factors. First is the genetic factor based on traditional Confucian culture of Korea (i.e., the DNA of Korean HRM), of which its advantages must be respected and preserved. Second factor is an adaptation ability, which modifies its own core competency and routine through an interaction with the environment. Korean HRM stands at a turning point now. The Korean economy is facing a hyper-competition in the global market. To survive, Korean companies have to improve their competitiveness. Also they must solve the problem of seniority-based HRM of Confucian values that hinders their competitiveness. To confront an inevitable transformation of the management system, Korean companies tried to solve the problem by bringing in a rapid growth process of North American HRM practices. But, unanticipated side effect has occurred in this process. As American HRM was uniformly adopted, traditional teamwork, organizational loyalty, and the advantages of traditional Korean companies...
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...NORTH KOREA Nicholas Eastman There are a few different countries that, in my opinion, would be enjoyable to visit and study their culture. One country in particular seems to stick out to me. I have always been taught about democracy in school, as well as other government styles, but have never first hand experienced another style of government. For this reason I chose North Korea, based on their centralized communist ways. I opinionate this to be an interesting way of life and would like to learn more about how people live under a communist government. From what I know about North Korea, rules seem strict and the people do not have the same rights as we do in the United States, which leaves me wondering how my life would be different, living under the same conditions as North Koreans. The geography of North Korea represents a peninsula, attached to Manchuria, China, and a small portion of the USSR (Geography). This 600 mile long peninsula is just above the 38th parallel, with a size of just above 45,000 square miles (Geo). With this, it makes the country itself smaller than the state of Pennsylvania. The make-up of the land in North Korea consists of several mountain ranges, lined up north to south, with small valleys in between each (Geo). This does not allow for many rural areas, leading to large cities populated by millions of people. The Yalu River forms a portion of the northern border with Manchuria (Geo). The mountains in the country prevent large farms, which...
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...branching out to different countries in order to expand their business using the advanced technology - the Internet. Understanding their respective culture is very crucial to develop an establishment in any country. The working style and method varies from country to country based on their culture. There is always a scope of conflicts due to culture variations. The article “Impact of cultural intelligence level on conflict resolution ability” talks about the importance of cultural intelligence level and how this helps to resolve the conflicts. “Therefore, this model presents that a higher level of cultural intelligence positively affects and predicts whether an individual will select an appropriate conflict resolution strategy fitting for the cultural backgrounds of those involved in the conflict” (Ramirez, 2010, p. 2). The author starts off with briefly discussing why it is so important for the business leaders to use different conflict resolution strategies using the cultural intelligence level of the persons involved in the conflict. The author first described the gaps in the current studies of “impact of culture intelligence level in resolving the conflicts” and then explained how the current model would fulfill those gaps. This model helps leaders to prepare different strategies and to use the correct strategy based on the cultural intelligence level of the persons involved in the conflicts. The model considers culture intelligence level as independent variable and conflict...
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...structures that consist of firms operating a diverse number of industries, but the group is controlled by a dominant family. The business group accounts for a large percentage of the economy – LG Electronics (LGE) is an example of one of this corporate structure. We will discuss how LG has impacted the South Korean economy as well as outline the positive and negative characteristic of chaebols and the South Korean economy. We will identify LGE’s human resources strategy, and how they deal with diversity. I will also explain one of LGE’s strategic alliance and its global objective. The Organization and the Purpose of Chaebols LG Electronics was established in 1958 as GoldStar. They produced products like radios, TV’s, refrigerators, laundry units, and air conditioners. There advanced digital expertise and technological expertise has catapulted them to become one of the industry leaders in technology. LG continues to reinforce their vision of become a global leader in digital by creating innovative products and ensuring superior customer service. The company, continues to unveiled new products, new technologies that continues to reinforce their status as one of the global leaders. LGE is s the world’s second largest manufacturer of television sets with forty-five percent of sales coming from the home electronics division of the company. Twenty-two percent of sales come from the home appliances division and twenty percent of sales come from mobile communications which they are...
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...all to more current times with the struggle for civil rights in the 1960s or the workforce diversity in the 1990s with woman and different ethnic groups becoming leaders and executives. According to the text, diversity is defined “as the ways in which people differ that may affect their organizational experience in terms of performance, motivation, communication, and inclusion” (Harvey, 2009, p. 1). Dimensions of diversity include components related to a person's race, gender, ethnic background, religious/spiritual dogmas, lifestyle, sexual orientation, age, abilities, and appearance (Schaefer, 2012). These are known as primary dimensions. Secondary dimensions are considered less central to someone’s social identity. Some examples are: Geographic location, military/work experience, family status, income, education, communication and work styles, and first language/education. 2. With what ethnic, cultural, or other groups do you identify? Describe what members of your social circle have in common. I am associated with many diverse groups of various backgrounds. Culturally and ethnically, I identify with Latino/Hispanic, African American, Caucasian/Anglo and Asian. Being of an “All-American” Caucasian background I am automatically stereotyped as a typical white male, good credit, clean cut, no style, cannot dance or play basketball white boy. These are the prejudices I have experienced. Since living in Yuma, I have been exposed to the Latino culture to...
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