Session 2

Question 1

Japanese Keiretsu: horizontal and vertical Keiretsu

Answer 1

1.Compared to a typical “Western” corporation, the keiretsu model is far more inclusive of members from various affiliated units (e.g., suppliers, distributors). 
A keiretsu (系列?, lit. system, series, grouping of enterprises, order of succession) is a set of companies with interlocking business relationships and shareholdings. It is a type of informal business group.
The primary aspect of a horizontal keiretsu (also known as financial keiretsu) is that it is set up around a Japanese bank. The bank assists these companies with a range of financial services.
Vertical keiretsu (also known as industrial keiretsu) are used to link suppliers, manufacturers, and distributors of one industry. One or more subcompanies are created to benefit the parent company (for example, Toyota or Honda). Banks have less influence on distribution keiretsu.

Question 2

Kongfuzi’s five cardinal virtues

Answer 2

1. Absolute loyalty
2. Strict seniority
3. Weak subservient to strong
4. Mutual trust among friends and family
5. Filial piety

Question 3

Chinese Gong-Si

Answer 3

1. Family owned
2. Family member holds the highest position
3. Chinese gong-si tend to have a very small core of “members,” while everyone else is “contingent.”

Question 4

German Konzern

Answer 4

A concern (German: Konzern, Cyrillic: Концерн) is a type of business group common in Europe, particularly in Germany. It results from the merger of several legally independent companies an economic entity under unified management. These associated companies called "Group" companies.
A Group consists of a parent company and one or more subsidiaries. A special form of organisation of Groups, the Holding Organisation.

Question 5

Mexican Grupo

Answer 5

Family member is the highest position, the second highest is Owner-CEO and then the management.

Family member : close business government ties
Owner-CEO : Close ties with other major firms through cross-board membership, often allowing oligopolistic control over industrial and service sectors
Employees: Strong national industrial unions; tied to political parties; focus largely on wages and job security

Many firms maintain virtually monopolistic control over major economic sectors

Question 6

Key success factors in working with organizations from other cultures

Answer 6

Local understanding : understanding one’s own culture, organization, and its mission and objectives
Global understanding : understanding culture, organization, and management style of global customers, partners, and employees.
Global management : develop suitable management and multicultural skills.

Question 7

Two Cassandras of globalization

Answer 7

Huntington and Ritzer