It seems the “new China” is where the old China is focused. Africa is the new emerging economy and China appears to have an early foothold in many markets that American companies would like to tap. Some big names – Wal-Mart, Harley-Davidson, and Google – all want a piece of the action. Apparently, similarities between African regimes and the Chinese government make it easier to strike deals. Still, U.S. companies are not locked out. Caterpillar has a new order. Harley-Davidson had a successful showing at African Bike Week. Cummins is developing its own Africa operations.

QUESTIONS:

1. What are the factors driving China’s competitive advantage and limiting it for U.S. companies in Africa?
2. Discuss the strategic intent of Africa for the companies mentioned in the article.
3. Africa appears as what level of strategy for companies like Cummins and Harley-Davidson?
4. Using Porter’s Five Forces Model, how would you rate the attractiveness of Africa right now for Cummins?

SOURCE: J. R. Hagerty & W. Connors, “U.S. Companies Race to Catch Up in Africa,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748703841904576257233342891732.html)

The world-wide recession was driven in large part by numerous failures in two key industries – banking and automotive. In the United States, many of the big players in both industries required substantial bailouts from the Government to survive. On the financial side, J.P. Morgan Chase was considered one of the more stable banks, as its top management team managed to stay intact and avoid much of the scrutiny other companies endured. However, as the global economy remains stifled, Morgan is looking very closely at its management team and making changes that it believes will usher in a new era.

QUESTIONS:

1. What model of change leadership is J.P. Morgan Chase utilizing? What are its reasons for doing so?
2. Do you believe the changes likely to occur will be incremental or transformational? Why? Since J.P. Morgan seems to be doing well, what are the drivers of these changes?
3. What are the likely targets of these changes (i.e., what aspects of the company will the changes influence)?
4. Assume that J.P. Morgan is attempting to implement broad (organization-wide) change. What is the best change strategy to utilize? What is your rationale?
5. While we do not know the reasons for Heidi Miller’s pending retirement and Todd Maclin’s job shift, would moving top management out/to other positions be an effective way to deal with resistance change? Why or why not?

SOURCE: D. Fitzpatrick, R. Sidel, & D. Enrich, “Talk of Changes at Stable J.P. Morgan,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052702304906004576367570268643228.html)

Entrepreneur Rhonda Abrams points out how “stuff” (materials and inventory) can influence a business from a cost standpoint. She also discusses how “stuff” and uncontrollable events can interrupt the business cycle. She offers practical advice on how to manage this “stuff” to make business more efficient in terms of capital.

QUESTIONS:

1. Begin by discussing how “stuff” can influence competitive advantage.
2. Ms. Abrams mentions several consequences (i.e., missed opportunities) that can result from having too much “stuff.” How might this influence value creation?
3. We typically think of inventory as something related to manufacturing. Discuss why it is important for any kind of business to be concerned with inventory.
4. Discuss the pros and cons of just-in-time systems for managing the “stuff” problem.

SOURCE: R. Abrams, “Entrepreneurs, Don’t Let Your ‘Stuff’ Control Your Business,” USA Today (Retrievable online at http://www.usatoday.com/money/smallbusiness/columnist/abrams/2011-05-26-entrepreneurs-reduce-your-stuff_n.htm)

More potential corruption in the world of international sports surfaced this week with charges that two top executives of the Federation Internationale de Football Association offered bribes to voting members. Mohamed bin Hamman is accused of offering to pay $40,000 each for as many 25 votes to become president of the governing body. Jack Warner is also accused of helping to arrange the bribes. The two, along with two other lesser officials, were suspended. Mr. bin Hamman countercharged that Joseph Blatter failed to report payments.

QUESTIONS:

1. Is it relevant to invoke ethics into an examination of these allegations? What might or might not make this case a question of ethical behavior?
2. Given that this is an international ruling body, with membership from around the globe, how might differences in values relate to what has taken place? Are there cultural issues to consider?
3. Is there any kind of ethical dilemma here? If so, what is it and for whom is there a dilemma?
4. Obviously, word got out that bribes were offered. Why might one of the 25 voters report the offer rather than take the bribe? Use moral development as your explanation. Why might someone blow the whistle?
5. Most likely, FIFA has some kind of code of ethics. Discuss how this is supposed to prevent unethical behavior and talk about why it did not work in this case.

SOURCE: J. Espinoza, “FIFA Suspends Two Official in Bribery Probe,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052702303657404576353563661829134.html)

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As Volkswagen opens its new plant in Tennessee, talks renew about how labor, particularly unionized labor, influence the cost of new vehicles and the viability of automakers. While foreign manufacturers are locating in the South and paying about half the amount a union worker makes, the Big Three in Detroit have been unable to see significant gains from wage concessions by the unions post-bailout.

QUESTIONS:

1. [Chapter 11] Compare the wages paid by Detroit automakers and foreign automakers in the South. Discuss the net effect of labor contracts for employers and employees.
2. Do differences in labor costs (American vs. foreign manufacturers) alter the productivity equation? Why or why not?
3. Is labor cost a source of competitive advantage? Discuss.
4. How do labor costs influence breakeven points? Where do they fit in the breakeven point equation?

SOURCE: M. Ramsey, “VW Alters Labor-Cost Equation,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704083904576335501132396440.html)

Labelux, a German luxury goods company, will purchase Jimmy Choo, Ltd. from TowerBrook Capital for a reported $650-895 million. Under Labelux, the high-end women’s shoe and bag maker will be expanding its line and focus on developing the Asian market, particularly in China. Co-founder Tamara Mellon, of British Vogue fame, will retain her minority share of the company and continue serving as Chief Creative Officer.

QUESTIONS:

1. Based on your reading of the article, what dynamic forces make this a good acquisition for Labelux?
2. What competitive advantage(s) does Jimmy Choo gain from being acquired by Labelux, which also owns Bally Shoe?
3. Describe the level of environmental uncertainty for Jimmy Choo moving forward.

SOURCE: M. Haddon, “Labelux Buys Jimmy Choo,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052702304066504576339423661349398.html)

The primary referenced article makes mention of summer of 2010 as the “the Summer of Divorce.” While that was disputed even within the article, recent months have seen one very contentious divorce – that of former Los Angeles Dodgers owners Charles and Bonnie Bronfman – as well as an announcement of the separation and impending divorce of Arnold Schwarzenegger and Maria Schriver after 25 years of marriage. Although technically a marriage is not a team – it is a dyad – this supposed trend does offer an interesting opportunity to investigate teams, team dynamics, communication, and conflict handling.

QUESTIONS:

1. Before considering the articles in relation to teams, conflict, and communication, let’s analyze the commentary on divorce in the primary reading. Does the author’s discussion of his divorce reflect cognitive dissonance? Why or why not?
2. Give examples of ways that a successful marriage – you determine what constitutes successful – might achieve synergy.
3. Perhaps your own group/team experiences have only been moderately successful. Review the three things an effective team does well. Evaluate the three relationships described in the featured articles. Do they fully satisfy the criteria of an effective team? What about your own experiences? In what ways have your teams achieved and failed to achieve effectiveness? What would you do in the future to ensure greater team effectiveness?
4. It might be easy to conclude that all divorces are in the adjourning stage of team development, but this might not be the case. The Bronfmans definitely have a different approach to the model. Apply the stages of team development to the relationships described in the articles.
5. Use your imagination and describe the roles of effective and efficient communication in successful (lasting) marriages and those that end in divorce. How might communication barriers set the stage for divorce?
6. If a marriage (or any relationship) is in trouble, discuss how active listening might be used to help improve the situation and potentially stave off divorce.
7. Is conflict necessarily a bad thing in a marriage? Why or why not?
8. Invariably, marriage partners will disagree. Describe situations where each of the conflict management styles would come into play in a marriage. Does negotiation have a place in marriage? If so, how?

SOURCE: M. Toub, “My Ex-wife and I Agree: Divorce Can Be a Sign of Relationship Success,” Globe and Mail (Retrievable online at http://www.theglobeandmail.com/life/relationships/love/micah-toub/my-ex-wife-and-i-agree-divorce-can-be-a-sign-of-relationship-success/article1710768/)

See also: T. Pearce, “Divorcing Bronfmans Celebrate Their Split at Joint ‘Divorce Party’,” Globe and Mail (Retrievable online at http://www.theglobeandmail.com/life/the-hot-button/divorcing-bronfmans-celebrate-their-split-at-joint-divorce-party/article2023036/)

A. Oldenburg, “I’m in Transition,” USA Today (Retrievable online at http://yourlife.usatoday.com/sex-relationships/divorce/story/2011/05/Maria-Shriver-Im-in-transition-/46998578/1)

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The chief of the International Monetary Fund (IMF), Dominique Strauss-Kahn, was arrested in New York this weekend on sexual-assault charges. Mr. Strauss-Kahn allegedly assaulted a hotel employee while traveling in the states on personal business. Police escorted him off a plane he had boarded bound for Europe, where he was scheduled to meet with German Chancellor Angela Merkel Sunday to discuss the debt crises in Greece, Portugal and Ireland. He is expected to be arraigned Monday on charges of attempted rape, criminal sexual assault and unlawful imprisonment. Mr. Strauss-Kahn voluntarily agreed to submit to a scientific forensic examination to search for evidence. Even if the claims are not supported, the arrest and media attention may thwart his candidacy for the French presidency in 2012. It may also undermine the IMF’s role in dealing with the euro-zone crisis, which had reached new heights earlier in the week when Standard & Poor’s downgraded Greece’s debt rating.

QUESTIONS FOR DISCUSSION:

1. Even if innocent of all charges, should Mr. Strauss-Kahn resign his post? Should the IMF ask him to resign his post?
2. How is the situation likely to complicate the euro-zone crisis?
3. How is the situation likely to impact the presidential elections in France?

SOURCE: El-Ghobashy, T., Reddy, S., & Gauthier-Villars, D. (2011, May 16). New details in IMF sex case. Wall Street Journal, p. A1. (Retrievable online at: http://online.wsj.com/article/SB10001424052748703730804576323912847808664.html)

Related video clip: Strauss-Kahn Arrest Upends IMF Leadership. (Retrievable online at: http://online.wsj.com/video/strauss-kahn-arrest-upends-imf-leadership/F16F55CA-AAB4-42C3-82FC-F66615856DB9.html)

Related video clip: Arrest Wrecks Strauss-Kahn French Presidency Hopes. (Retrievable online at: http://online.wsj.com/video/arrest-wrecks-strauss-kahn-french-presidency-hopes/B5743D50-F593-4957-9CC4-8BA7A3E949DD.html)

The golf world mourns the passing of legend Severiano “Seve” Ballesteros. The Spaniard was known primarily as the showman that led the Europeans to victory over the United States in the 1985 Ryder Cup. However, golf insiders know that Ballesteros also accumulated a record 50 European titles and 90 tournament wins, which include two British Open and two Masters victories. In addition to leading (with his play) the European team in 1985, Ballesteros was also captain of the victorious 1997 European squad.

QUESTIONS:

1. After reviewing the article, discuss how Seve Ballesteros fulfills the definition for leadership.
2. Identify and describe at least two forms of power that Ballesteros possessed as a golfer.
3. Describe the leadership traits of Ballesteros.
4. Review the sentiments of other golfers expressed in the article. Was Ballesteros a charismatic and/or transformational leader? Why or why not?

SOURCE: S. DiMeglio, “Swashbuckling Golf Legend Seve Ballesteros Dies at 54,” USA Today (Retrievable online at http://www.usatoday.com/sports/golf/2011-05-06-seve-ballesteros-obituary_N.htm)

In the ultimate tribute to a partner, Pedro Martin Ureta honored his deceased wife’s wishes and cultivated an immense tree garden into an aerial delight – a guitar. Shortly after marrying Mr. Ureta, Graciela Yraizoz saw a shape while flying over the pampa. That’s when she came up with the idea of creating a guitar. Mr. Ureta put her off. After she died suddenly in 1977, he began seriously thinking about the request. It took a lot of painstaking work, but the two-thirds mile-long creation is now a marvel for all to see as they fly over the area.

QUESTIONS:

1. In what ways does the work represent the basic elements in the textbook definition of motivation?
2. From the standpoint of needs, what level of motivation does this accomplishment represent?
3. Using Acquired Needs Theory, how would you classify Pedro Martin Ureta’s motivation?

SOURCE: M. Moffett, “Maybe Graciela Sees It From Heaven, This Huge Guitar Made of Trees,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748703859304576307251804750800.html)