UNIT 1

I. BACKGROUND
Company Hudson Corporation
Activity Manufactures and sells a variety of consumer
products
Based in The United States
2. Problems
1) Different languages and cultures. The managers are concerned that their products and
marketing campaigns may not be effective in Europe due to the different languages and
cultures.
2) Different regulations. The managers are concerned that their products may not meet
European regulations, which could lead to delays or even bans on their products.
3) Different consumer preferences. The managers are concerned that European consumers
may have different preferences than American consumers, which could affect their sales.
4) Economic challenges. The managers are concerned about the economic challenges facing
Europe, such as the Eurozone crisis, which could lead to decreased demand for their
products.
5) Competition. The managers are concerned about the competition they will face from
European companies, which may have a better understanding of the European market.
6) Distribution. The managers are concerned about how they will distribute their products in
Europe, as they may not have the same distribution channels as they do in the United States.
7) Customer service. The managers are concerned about how they will provide customer
service in Europe, as they may not have the same resources as they do in the United States.
8) Political risks. The managers are concerned about the political risks of doing business in
Europe, such as changes in government regulations or policies.

II. SOLUTION

Different  Conduct market research to learn more about the different languages and
languages cultures in Europe.
and cultures  Hire local employees who are familiar with the local languages and cultures.
 Translate marketing materials into the local languages.
 Adapt marketing campaigns to appeal to the local cultures.
Different  Research European regulations to ensure that products meet all requirements.
regulations  Work with a local partner who is familiar with the regulations.
 Hire a team of experts who can help the company comply with the regulations.
Different  Conduct market research to learn more about the preferences of European
consumer consumers.
preferences  Adapt products and marketing campaigns to appeal to European consumers.
 Offer a variety of products to meet the different needs of European consumers.
Economic  Monitor the economic situation in Europe and adjust business plans accordingly.
 challenges  Focus on selling products to businesses, which are less likely to be affected by
economic downturns.
 Offer products at a lower price point to appeal to cost-conscious consumers.
Competition  Research the competition in Europe and identify ways to differentiate products
and services.
 Partner with local companies to gain a competitive advantage.
 Invest in marketing and advertising to build brand awareness.
Distribution  Research the distribution channels in Europe and identify the best way to
distribute products.
 Partner with a local distributor who has experience in the European market.
 Set up a direct sales force in Europe.
Customer  Set up a customer service center in Europe.
service  Hire local employees who can provide customer service in the local languages.
 Offer customer service 24/7 to meet the needs of European customers.
Political  Monitor the political situation in Europe and adjust business plans accordingly.
risks  Work with a local partner who can help the company navigate the political
landscape.

UNIT 3
I. BACKGROUND

II. SOLUTIONS

UNIT 4,5,6,

UNIT 7
I. BACKGROUND:
Company Better Business Communications
Activity Run an informal business culture briefing for
the management group, informing them about
aspects of business culture and answering
questions
Based in Your country
2.Problems:

1) Cultural misunderstandings: Without a solid understanding of the local business culture,

the visiting managers may inadvertently engage in behaviors or communication styles that
are considered inappropriate or offensive in the host country. This can lead to
misunderstandings, strained relationships, and potential damage to business partnerships.

2) Lack of effective communication: Different cultures have unique communication styles

and norms. Without awareness of these nuances, the managers may struggle to effectively
communicate their ideas, negotiate contracts, or convey their intentions. This can hinder the
progress of meetings and business discussions.

3) Impact on decision-making: When deciding on the location of an overseas subsidiary, it

is crucial to consider the local business culture. Factors such as hierarchy, decision-making
processes, and networking practices can significantly influence the success of the subsidiary.
Without knowledge of these cultural aspects, the managers may make ill-informed decisions
that could negatively impact the subsidiary's operations and profitability.

4) Social etiquette and networking: The managers will be attending social visits, dining at
homes or restaurants, and engaging in excursions. Different cultures have varying
expectations and practices regarding social interactions. Lack of awareness of appropriate
behavior, gift-giving customs, or dining etiquette may lead to uncomfortable situations or
unintentional disrespect.

5) Professional reputation and credibility: Successful business interactions rely on

building trust and rapport with local counterparts. Demonstrating cultural sensitivity and
understanding can enhance the managers' professional reputation and credibility. Conversely,
a lack of cultural awareness may lead to a perception of insensitivity or ignorance, potentially
harming their reputation and future business opportunities.

II. SOLUTION:

Cultural  Cultural Awareness Training: Provide comprehensive cultural

misunderstanding awareness training to the managers before their visit. This training can
s include information about the country's history, values, customs,
communication styles, and business etiquette.
 It should focus on key differences between their own culture and the
host culture, highlighting potential areas of misunderstanding and
offering strategies for effective cross-cultural communication.
Lack of effective  Briefing and Information Package: Prepare a detailed briefing and
communication information package specifically tailored to the managers' needs. This
package can include written materials, videos, and case studies that
provide insights into the local business culture.
 It should cover topics such as greetings, communication styles,
decision-making processes, networking practices, and social customs.
  The package should also address common challenges and offer
practical tips for navigating the business environment.
Impact on  Cultural Liaison or Guide: Assign a cultural liaison or guide who can
decision-making accompany the managers during their visit. This individual should be
well-versed in both the managers' culture and the host culture. They
can provide real-time guidance, interpret cultural nuances, and help
bridge any communication gaps.
 The cultural liaison can also facilitate introductions, arrange meetings,
and ensure that the managers adhere to appropriate business etiquette.
Social etiquette  Networking Opportunities: Facilitate networking opportunities for the
and networking managers to engage with local businesspeople. This can include
organizing events, inviting local professionals for discussions, or
arranging business dinners. These interactions will allow the managers
to build relationships, learn from local experiences, and gain a deeper
understanding of the business culture.
Professional  Role-playing and Simulations: Conduct role-playing exercises and
reputation and simulations to help the managers practice navigating various business
credibility scenarios in the host culture.
 Continuous Support and Feedback: Offer ongoing support and
feedback to the managers throughout their visit.
 Encourage them to share their experiences, ask questions, and seek
guidance when encountering unfamiliar situations.
 Regular check-ins and debriefing sessions can help address any
challenges and ensure their cultural adaptation and understanding are
progressing effectively.

UNIT 8
I. BACKGROUND
Company Fast Fitness
Activity A chain of health clubs needs to find a new
manager to boost sales at the clubs and
increase profits.
Based in Brazil

2. Problems:
1) Underperformance of the clubs: The chain of health clubs in Brazil has failed to meet their
turnover and profit targets. This indicates a problem with the overall business performance,
including revenue generation and cost management.
2) Decline in membership renewal and new member acquisition: Many existing members
have chosen not to renew their memberships, and the clubs have struggled to attract enough new
members. This suggests a problem with member retention and acquisition strategies.

3) Cultural diversity and targeting: The clubs are in areas with significant immigrant
populations, including Japanese, Spanish, Chinese, and Italian communities. The fact that the
clubs have not been successful in these areas suggests a lack of understanding or effective
targeting of the specific cultural preferences and needs of these communities.

4) Need for a competent General Manager: The appointment of the right General Manager is
crucial for the success of the business. The new General Manager will be responsible for driving
sales, increasing profits, and turning around the underperforming clubs. Finding a qualified and
experienced candidate who can effectively address the specific challenges faced by the business
is essential.

5) Sales and profitability: The primary task for the new General Manager will be to boost sales
and increase profits. This indicates a need for improved sales strategies, marketing initiatives,
cost management practices, and operational efficiency within the clubs.

II. SOLUTIONS

Underperformanc  Review and revise business strategies: Conduct a thorough evaluation

e of the clubs of the current business strategies, including sales, marketing, and
operational approaches.
 Identify areas that need improvement and develop new strategies to
address the challenges faced by the clubs.
Decline in  Cultural adaptation and targeting: Develop a better understanding of the
membership cultural preferences and needs of the local communities, especially the
renewal Japanese, Spanish, Chinese, and Italian immigrants.
 Tailor the club offerings, marketing messages, and member experiences
to better resonate with these target audiences.
Cultural diversity  Member retention and acquisition efforts: Implement initiatives to
and targeting improve member retention rates and attract new members. This can
include enhancing the quality of services and facilities, offering
personalized experiences, introducing attractive membership packages,
and implementing effective referral programs
Need for a  Recruitment of a qualified General Manager: Conduct a comprehensive
competent General search for a General Manager with relevant experience in the fitness
Manager industry and a track record of successfully turning around
underperforming businesses.
 The General Manager should possess strong leadership skills, business
acumen, and a strategic mindset to drive sales and increase profitability.
 Sales and  Performance tracking and evaluation: Establish performance metrics
profitability and systems to monitor the progress of the clubs, track sales, revenue,
and profitability.
 Regularly evaluate the effectiveness of implemented strategies and
make necessary adjustments based on data-driven insights.

UNIT 9
I. BACKGROUND
Company Pampas Leather Company
Activity the negotiation and potential partnership
between Pampas Leather and WCA, with a
focus on establishing a deal that satisfies both
parties and could lead to a long-term business
relationship.
Based in Buenos Aires, Argentina
2. Problems:
1) Fulfilling multiple large orders: Pampas Leather has several significant orders to fulfill
before they can handle the order from West Coast Apparel (WCA). This poses a challenge in
terms of production capacity, scheduling, and meeting delivery timelines for all orders.

2) Contract negotiation: There are several points in the contract between Pampas Leather and
WCA that need to be negotiated. This includes aspects such as pricing, quantity, delivery terms,
quality standards, and branding. Finding mutually acceptable terms can be a challenge and
requires effective negotiation.

3) Timing and production constraints: Pampas Leather has a tight timeline to produce the
jackets for WCA and have them ready for shipment to Seattle in November. This can be
challenging, considering the company's existing workload and the need for efficient production
planning and coordination.

4) Establishing a long-term relationship: The purpose of the meeting between Roberto

González of Pampas Leather and Brad Schulz, the President of WCA, is to reach a deal that is
acceptable to both parties and can serve as the foundation for a long-term business relationship.
This requires finding common ground, addressing each other's expectations, and building trust
and rapport.
 II. SOLUTIONS
Fulfilling  Prioritize and allocate resources effectively to ensure timely production and
multiple large delivery of all orders.
orders  Implement efficient production planning and scheduling techniques to
optimize workflow and maximize productivity.
 Consider outsourcing or subcontracting certain tasks or production stages to
meet increased demand.
Contract  Conduct thorough market research to understand pricing and terms prevalent in
negotiation the industry for similar products.
 Clearly define and communicate Pampas Leather's expectations regarding
pricing, quantity, delivery terms, quality standards, and branding.
 Seek a win-win solution by finding areas of compromise and exploring options
that benefit both parties.
 Engage in open and transparent communication to build trust and foster a
mutually beneficial partnership.
Timing and  Evaluate the existing production capacity and determine if additional resources
production or adjustments to the production process are necessary.
constraints  Establish clear production timelines and milestones to track progress and
ensure timely completion.
 Implement effective project management techniques to coordinate and
prioritize tasks, minimizing delays and bottlenecks.
 Regularly communicate with WCA to provide updates on production progress
and manage expectations.
Establishing a  Focus on building a foundation of trust and understanding with WCA through
long-term open and honest communication.
relationship  Demonstrate Pampas Leather's commitment to delivering high-quality products
and exceptional customer service.
 Offer incentives or value-added services to encourage WCA to consider a long-
term partnership.
 Explore opportunities for collaboration beyond the initial order, such as joint
marketing initiatives or product development projects.

UNIT 11
I. BACKGROUND
Company Lina Sports
Activity The company needs to overcome challenges
such as excessive product lines, costly
 endorsements, competition from stronger
rivals, and a loss of reputation for innovation.
Based in Italy
2. Problems:

1) Declining financial performance: Lina Sports has experienced disappointing annual results
over the past three years, with falling profits and rising costs. This indicates a decline in overall
financial performance.

2) Fierce competition: The company faces intense competition in its main markets. The
competition from stronger rivals poses a challenge to Lina Sports' market position and
profitability.

3) Potential takeover: Lina Sports faces the possibility of being taken over by a giant French
retailing group. While the potential takeover is described as a "friendly takeover" requiring
agreement from the present management, it still represents a challenge for the company's current
ownership and control.

4) Strategic review: Lina Sports is currently reviewing its strategy to address the issues
affecting its performance. The need for a strategy review suggests that the company is seeking
ways to improve its financial results and competitive position.

5) Excessive product lines: The report by JPS Consultants identified that Lina Sports has
launched too many product lines across a wide range of sports. This excessive diversification
may have contributed to the company's poor results.

6) Expensive endorsements: Lina Sports has invested in numerous expensive endorsements

with top sports people. This indicates potential overspending in marketing and endorsement
activities, which may have impacted the company's profitability.

7) Loss of reputation for innovation: The report also mentions that Lina Sports has lost its
reputation for being innovative. This suggests a lack of product innovation or failure to adapt to
changing market trends, which can negatively affect customer perception and competitiveness.

II. SOLUTIONS

Declining  Conduct a comprehensive financial analysis to identify areas of cost

financial reduction and efficiency improvement.
performance  Implement cost-saving measures such as optimizing supply chain processes,
negotiating better terms with suppliers, and streamlining internal operations.
 Explore opportunities for revenue growth through market expansion, new
 product development, or strategic partnerships.
Fierce  Conduct a thorough market analysis to identify key competitors and their
competition strategies.
 Differentiate Lina Sports by focusing on unique selling points, such as
superior product quality, innovative designs, or personalized customer
experiences.
 Continuously monitor and adapt to market trends, customer preferences, and
emerging technologies to stay ahead of the competition.
Potential  Evaluate the potential benefits and risks associated with the proposed
takeover takeover by the French retailing group.
 Engage in negotiations with the potential acquirer to ensure that the interests
of the current management and shareholders are protected.
 Consider alternative options, such as partnerships or alliances, that may
provide strategic advantages without giving up control of the company.
Strategic  Conduct a comprehensive strategic review, involving key stakeholders, to
review reassess the company's vision, mission, and goals.
 Identify and prioritize strategic initiatives that address the company's
weaknesses and leverage its strengths.
 Develop a clear roadmap for execution, including specific action plans,
timelines, and performance indicators.
Excessive  Evaluate the performance and profitability of each product line.
product lines  Streamline the product portfolio by focusing on high-demand and high-
margin items.
 Consider discontinuing or phasing out underperforming or redundant product
lines.
Expensive  Review the ROI on current endorsements and assess their effectiveness in
endorsements reaching the target audience.
 Prioritize endorsements that align with the brand's values, target market, and
marketing objectives.
 Explore alternative marketing channels and strategies that may provide a
better return on investment.
Loss of  Invest in research and development to foster product innovation and stay
reputation for ahead of market trends.
innovation  Foster a culture of creativity and innovation within the organization.
 Communicate and showcase the company's innovative products and designs
through effective marketing and branding initiatives.

UNIT 12
I. BACKGROUND
 Company Fashion House
Activity Fashion House Inc. visiting companies in
India, Peru, and Chile to find a reliable
supplier for high-class jewelry products. They
aim to purchase 5,000 necklaces and bracelets
and 3,000 earrings with delivery by 15
November.
Based in Miami, Florida
2. Problems:
1) Temporary cash flow problem: Fashion House Inc. is experiencing a temporary
cash flow issue, which limits their ability to pay for the goods upfront. This may pose
challenges in securing the desired inventory and meeting supplier payment
obligations.

2) Supplier selection: The buying department is visiting companies in India, Peru,

and Chile to find a reliable supplier. The challenge lies in identifying a supplier with
outstanding design capability, competitive pricing, and reliable delivery timelines.

3) Inventory management: Fashion House needs to purchase 5,000 necklaces and

bracelets and 3,000 earrings to meet the expected demand. However, accurately
predicting demand and managing inventory levels can be challenging, especially for
the remaining items that are contingent on competitive pricing and high demand.

II. SOLUTIONS
Temporary cash  Negotiate payment terms: Fashion House can negotiate with the chosen
flow problem supplier for extended payment terms, allowing them to delay payment until a
later date. This can help alleviate the cash flow problem and provide more
flexibility in managing their finances.
 Build a long-term relationship: The buying department should focus on
finding a supplier with whom they can establish a long-term relationship.
This would involve evaluating the reliability, quality, and consistency of the
suppliers' products and services.
 By building a long-term partnership, Fashion House can ensure a stable
supply of high-quality jewelry products.
 Demand forecasting and pricing strategy: Fashion House should conduct
thorough market research and demand forecasting to accurately estimate the
demand for necklaces, bracelets, and earrings. This will help them determine
competitive pricing strategies to ensure sales for both the expected and
remaining inventory.
Supplier  The buying department should thoroughly evaluate the three interested
selection companies based on their capabilities, product quality, pricing, delivery
reliability, and reputation.
 They should consider factors such as track record, customer reviews, and
references from other clients. This evaluation process will help them select
 the most suitable supplier for their specific needs.
Inventory  Implementing an effective inventory management system can help Fashion
management House optimize their inventory levels, reduce excess stock, and avoid
stockouts. This will involve tracking sales data, analyzing trends, and
adjusting procurement plans accordingly.