Chinese President Hu Jintao concluded a four-day trip to the United States this weekend. It was a rare visit from the leader of the world’s second largest economy to the world’s largest economy, China and the United States, respectively. The two nations have had increased tension in their relationship over the last year over trade disputes. In the meetings this week, President Barack Obama was pushing for a more even playing field for American products in China, for China to stop devaluing its currency, and for greater protection of intellectual property in China. China is seeking greater market access to sell its products in the United States and wants more opportunities for investment here. A trade package was announced that will result in $45 billion in U.S. exports to China, which will help support 235,000 U.S. jobs. President Obama placed pressure on China to improve its human rights policies while President Hu made a surprising proclamation that a lot still needs to be done on human rights in China.

QUESTIONS FOR DISCUSSION:

1. Can President Hu’s visit be considered a success for President Obama? Should it be considered a success from China’s perspective?
2. Some analysts believe that President Hu’s comments and those by his advisors during his visit indicate that China may let its currency the yuan appreciate faster than it has been doing since June of last year. What are the implications to China of allowing its currency to appreciate?
3. China has been criticized for its policies on human rights and its treatment of religious minorities. Evaluate the advantages and disadvantages of the United States using trade policies as a lever for bringing about social change in a nation.
4. China launched a media campaign promoting itself that featured basketball star Yao Ming and other famous Chinese people to coincide with Chinese President Hu’s visit to Washington. Will the advertising campaign be successful in portraying the country and its citizens in a positive light?

SOURCE: ABC News

DATE: January 18, 2011

Link: http://abcnews.go.com/WNT/video/white-house-hosts-economic-talks-china-obama-hu-jintao-joe-biden-world-politics-12642714

A new industry is emerging from the world of high tech – reputation management companies. With the rise of online customer review websites and prominence of instant communication technologies like Twitter, companies are finding the need to manage how and what kind of information is disseminated. Reputation management companies are helping companies protect their information and improve the image they have on the world-wide web.

QUESTIONS:

1. As managers, we may be inclined to think about communication as an internal issue. Let’s think about it in a broader context. Review the definition for social capital in the text. How does this relate to reputation management as discussed in the article?
2. What role can new communication technologies like Facebook and Twitter play in terms of effective and efficient communication for a company?
3. Consider the impact of company versus customer communication. Which is most credible? Why might customers be seen as a more reliable source of information about a company?
4. The article described one way to turn negative comments on review web sites into a benefit. In terms of active listening, how should company management use feedback from review web sites to enhance image?

SOURCE: O. El Akkad, “Reputation Guns for Hire,” The Globe and Mail (Retrievable online at http://www.theglobeandmail.com/report-on-business/your-business/business-categories/web-strategy/reputation-managers-for-hire/article1868876/)

Marathon Oil, with operations throughout the United States and Canada, will soon be two companies. The move has been in the works for nearly two years, but low oil and gas prices kept the company from making it until now. Marathon Petroleum will be responsible for refining operations. Marathon Oil will focus exploration and production.

QUESTIONS:

1. Marathon is an established company operating in a mature industry. Should it be concerned about competitive advantage? What source of competitive advantage does the move to split into two companies represent? Can it become a sustainable competitive advantage?
2. The business split represents what level of strategy?
3. From the standpoint of SWOT analysis, why is now a good time for Marathon to make the split?
4. What type of restructuring strategy does this move represent?

SOURCE: Associated Press, “Marathon Oil Will Spin Off Refining and Marketing,” USA Today (Retrievable online at http://www.usatoday.com/money/industries/energy/2011-01-13-marathon-oil-spinoff_N.htm?csp=obinsite)

The much-anticipated announcement that the iPhone will be available through Verizon has been made. Industry experts are now analyzing the move in light of capabilities, past problems, and demand (for Verizon) that is difficult to predict. Clearly, AT&T did foresee demand and its network was unable to handle the load. The company claims it responded to these problems and its 4G network is now much faster. AT&T also points out that its customers are able to multi-task with their smart phones while Verizon’s CDMA technology will not allow this. Verizon has the number one-rated network for quality. Company insiders say they have accurately anticipated demand and their network is fully capable of handling new users.

QUESTIONS:

1. Imagine you are a top-level executive at Verizon. How would you utilize the planning process to ensure the launch of the iPhone goes smoothly and successfully?
2. The move to offer the iPhone has been in the works for months. What are the benefits of making the announcement (that the phone would be available) early, planning, and delaying availability?
3. Should planning for the iPhone be short- or long-range? Why?
4. Without doubt, the move to acquire the iPhone represents strategic planning for Verizon. Consider AT&T’s problems with the iPhone. How can tactical and functional planning help Verizon avoid a similar fate? Do you see any evidence of this from the article?
5. In terms of planning tools and techniques, what can Verizon do to anticipate demand for the iPhone? What else should Verizon be doing between now and February to make sure it is ready regardless of the situation (e.g., existing customers simply switch phones, an influx of new customers putting pressure on their network)?

SOURCE: S. E. Ante, & Y. I. Kane, “Verizon Wireless Confident It’s Got Muscle for iPhone,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748703667904576072110862862244.html)

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Tunisia’s President, Zine al-Abidine Ben Ali, fled the country on Friday after a month of increasingly violent public protests. President Ben Ali had ruled the country for more than 23 years but citizens were becoming ever more frustrated with the economic conditions in the nation. Many in Tunisia live in poverty, face high unemployment and poor economic prospects. In the view of many Tunisians, President Ben Ali’s totalitarian regime ignored their interests and was only focused on keeping his entrenched regime in place. Tunisia’s Prime Minister, Mohamed Ghannouchi, is expected to announce a new unity coalition government on Monday. The public protests that lead to President Ben Ali’s ouster have decreased but the sense is that they will revive if the new government does not maintain progress in changing the nation’s political structure. There have been some skirmishes with gunmen loyal to the ousted president. The entrenched rulers of other Arab nations are worried Tunisia’s political unrest will spill over into other countries. Morocco, Egypt, Jordan and Syria are among the countries seen at the greatest risk of public protests.

QUESTIONS FOR DISCUSSION:

1. To what extent could social networking sites such as Twitter and Facebook be changing the ability of totalitarian regimes to maintain complete control over their citizens?
2. The entrenched rulers of other Arab nations are worried that the successful presidential ouster in Tunisia will contribute to contagion and Tunisia’s political unrest will spill over into their countries. Is this likely to happen? Why or why not?
3. Political risk can be defined as changes in governmental policies that adversely impact the profitability or value of a firm. How can firms plan for and respond to political risks in this region?

SOURCE: Blair, E. (2011, January 16). Arab leaders to grapple with new order post-Tunisia. Reuters.com. (Retrievable online at: http://www.reuters.com/article/idUSTRE70F24J20110116)

Related video clip available at: http://www.reuters.com/article/video/idUSTRE70D2OV20110117?videoId=178016000

China’s Zhejiang Geely Holding Group Co., the new owner of the iconic Swedish car company Volvo, is evaluating strategic options on how to best position the Volvo brand. The brand, which has long been known for building high-quality, safe automobiles, was sold by Ford to Geely in August of 2010. One strategy under consideration is exporting Volvos assembled in China to the United States. Although the company could build a Volvo assembly plant in the United States, the firm’s focus is to boost demand for Volvos in China by increasing production capability there. The company’s profitability is impacted by exchange rate fluctuations, especially the euro-U.S. dollar exchange rate, as Volvos are shipped from Sweden and Belgium for sale in the U.S. Since the U.S. currency and the Chinese currency have a more stable relationship because of China’s active management of its currency, producing Volvos in China would act as a hedge against exchange rate fluctuations. The key concern about exporting Volvos produced in China for sale in the United States is that consumers may not have the same prestige product positioning that they do for Volvos produced in Europe. The strategic move could undermine consumer confidence in the quality of the product.

QUESTIONS FOR DISCUSSION:

1. According to the article, many Americans readily accept a variety of products made in China, including high-tech computers and iPhones. Are American consumers ready to accept a Chinese-manufactured premium car?
2. What are the advantages of disadvantages for Volvo for the two production expansion plans it appears to be considering, that is increasing production capability in China or building an assembly plant in the United States?
3. If Volvo does decide to export Volvos made in China to the United States, what strategic recommendations would you give to Volvo Chief Executive Stefan Jacoby about how to position and market the cars?

SOURCE: Shirouzu, N. (2011, January 13). Volvo mulls China-made cars for U.S. Wall Street Journal, p. B4. (Retrievable online at: http://online.wsj.com/article/SB10001424052748704803604576078002874055280.html)

Barely a week into January and it is already the human interest story of 2011. A homeless man in Columbus, Ohio is discovered by a videographer for the local newspaper. After capturing the man’s voice on video and posting it to the paper’s website, it goes viral. Ted Williams becomes more popular on the internet than the Hall of Fame baseball player. He also becomes the little darling of the media. Numerous lucrative job offers follow. Is this truly a “rags to riches” story or is Williams likely to be back on the streets somewhere in the future?

QUESTIONS:

1. You’ve probably seen them before – panhandlers standing at a major intersection in a large city. What thoughts go through your mind? What attributions (about their situation) do you make? Managers make similar attributions about their employees. Think about this – if the Ted Williams that appeared in the original video walked in off the street and asked you for a job, would you hire him?
2. Talk about it. What role do stereotypes play in the judgments you make about others? Our stereotypes extend not just to the homeless, but also to the opposite sex, people with different ethnicities/nationalities, and people with different levels of attractiveness. How can you guard against misusing stereotypes?
3. Many wonder how a homeless man could become an overnight sensation. Ted Williams’ personality has a lot to do with it. View video of Mr. Williams. What Big Five personality dimensions draw people to him?
4. While being homeless is bound to be stressful, Mr. Williams definitely has a lot more to deal with now than he did before his discovery. How would you categorize his current stress? What are the possible reactions he could have if the stress becomes too great?

SOURCE: Associated Press, “Silky-Voiced Homeless Man Copes With Sudden Fame,” USA Today (Retrievable online at http://www.usatoday.com/news/offbeat/2011-01-07-williams-fame_N.htm)

Original video clip:

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The nature of business today – shrinking workforces and increasing responsibilities – makes it difficult for employees to focus. Mobile technologies add to the distraction. Once attention has been diverted from a task, it can take as long as 20 minutes to get restarted. The article offers a couple of simple suggestions to help retain focus. More importantly, it gives readers a chance to consider the implications for decision making.

QUESTIONS:

1. It rarely comes as a surprise any more, when we are talking about a task, that someone in the group says “Did you know there is an app (smart phone application) for that?” Discuss ways that over-availability of information might impede decision making in organizations.
2. The text makes it clear that information technology changes relationships within and without the organizations. Let’s consider changes on a more fundamental level (as implied by the article). What are the pros and cons of on-the-go (i.e., always in your hand/pocket) information technology?
3. Are multi-dimensional thinking and multi-tasking the same? Discuss.

SOURCE: R. Pulfer, “Multi-Tasking: Tuning Out the Noise,” Canadian Business (Retrievable online at http://www.canadianbusiness.com/managing/employees/article.jsp?content=20090817_10017_10017)

As General Motors attempts to make a recovery, one key factor will be its leadership. Many critics argued that GM did not deserve a bailout because its leadership was “too stuck in the past.” Now the company has a CEO that admits he is not a “car guy.” Can the company succeed? Better yet, will Mr. Akerson be happy with a job that is considerably more demanding and pays substantially less than he made at the Carlyle Group. No doubt, there are tensions within the hierarchy of GM, but the initial public offering last November reduced the Government’s stake in the company by more than half.

QUESTIONS:

1. Would you describe Daniel Akerson as a servant leader? Why or why not?
2. Mr. Akerson admits he does not have much job-relevant knowledge, a key leadership trait. What traits does he appear to possess? Assess the likelihood of his success at GM.
3. The article certainly does not depict Mr. Akerson as having a contemporary leadership style. Review the classic leadership styles and assign one to him. What are the reasons for your choice?

SOURCE: M. Langley & S. Terlep, “’I’m Not a Car Guy’: On the Road with the New Man at GM’s Wheel,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052970203525404576050070062206368.html)

One of the provisions of the North American Free Trade Agreement (NAFTA) is that the United States is supposed to allow Mexican truck drivers the ability to transport freight in the U.S. as long as the trucks meet certain safety standards. The U.S. has yet to abide by the terms of this provision and in March of 2009 President Obama cancelled a small pilot program that allowed some Mexican truckers to transport goods in the U.S. The Mexican government retaliated against the trucking ban by imposing $2.4 billion in tariffs on U.S. paper, produce and other goods. The U.S. trucking industry and unions such as the Teamsters union are strenuously opposed to the provision that they contend would cost American jobs and result in more dangerous roads since Mexican trucks may not meet as stringent safety standards as their U.S. counterparts.

The Obama administration recently circulated in Congress a proposal which would open the U.S. trucking sector to Mexican trucking companies. The proposal indentifies conditions that Mexican long-haul truck carriers would have to meet, including safety audits, emissions standards and driver background checks. Mexican officials welcomed the proposal, which was viewed as a first step for attempting to resolve the longstanding trade dispute. President Obama is looking to get key Democrats and others on board before ending the trucking ban, but the White House faces increasing political and economic pressure to end the trade dispute. Many U.S. jobs have been lost and more are in jeopardy in the industries hurt by Mexico’s retaliatory tariffs.

QUESTIONS FOR DISCUSSION:

1. What are the advantages and disadvantages of President Obama lifting the ban on Mexican trucks operating in the United States? Analyze the issue from the perspective of consumers, from employees and from the government.
2. International Brotherhood of Teamsters President Jim Hoffa said in response to the proposal: “Why would the DOT [Transportation Department] propose to threaten U.S. truck drivers’ and warehouse workers’ jobs when unemployment is so high?” Evaluate the merits of his comments.
3. President Barack Obama has called for doubling U.S. exports within five years. At the same time, he has moved to curb trade in certain areas under pressure from Congress and unions. The retaliatory tariffs imposed by Mexico may threaten thousands of U.S. jobs if the trade dispute is not resolved, but U.S. trucking jobs may in jeopardy in the trucking ban is lifted. How can President Obama protect one group of American workers without hurting another?

SOURCE: Mitchell, J. (2011, January 7). U.S. jump-starts bid to end truck dispute with Mexico. Wall Street Journal, p. A7. (Retrievable online at: http://online.wsj.com/article/SB10001424052748704415104576065924125822128.html)