By Eric Nelson,2014-07-04 08:08
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    David Yang


    Case Analysis

    (General Semi)

    1. In your opinion, what actions taken by Ostertag stood the most chance of changing

    General Semiconductors culture?

     When Ostertag decided to schedule a team-building meeting in which the new management team would decide on the companys guiding principles had the most chance of

    changing General Semiconductor’s culture. General Semiconductor had 60,000 works

    around the world speaking five different languages. Many of the facilities outside United States like China, France, Germany, Ireland and Taiwan all have different cultures that will dramatically influence how people observe and interpret the business world around them. By allowing the new management teams to could together to discuss their core values would have allowed management from different places to develop a culture of mutual respect that would foster cooperation and innovation. Furthermore, this allows management to rapidly build trust and common goals, which allowed multicultural teams to coordinate with each other. By rapidly developing trust, swift trust, the team managers would be able to help members communicate with one another in a positive way, coordinate their efforts, and quickly eliminate any misunderstandings. In return, the company will become for efficient in what they do and have a global mind-set. Having global mind-set will bring economic development around the world. Moreover, become a more transnational organization that will bring about global efficiency by having their subsidiaries share core values and trust. 2. Do you think requiring everyone in a multinational firm to carry around a card with the

    firms core values on it can change a companys culture? Why or why not?

     I do think carrying around a card with the firms core values on it can change a

    companys culture. Culture is a learned set of assumptions, values and beliefs that have been accepted by members of a group and that affect human behavior. Many cultures have differences among power distance, uncertainty avoidance, individualism, collectivism, and gender focus. Knowing and understanding different institutional environments and cultures is important to make good strategic decisions about which foreign markets to enter and how to manage operations. Multinational firms are firms that want consumers from around the world to buy their product rather than other companies products. Therefore, a card will change a companys culture. This means that each multinational firm has a transnational organization where an organization strives to be simultaneously centralized and decentralized. By becoming centralized and decentralized, a firm is able to achieve global efficiency while also maintaining responsiveness to regional market. A card with the firms core values will

    change a company’s culture by integrating the core values in different cultures over time. 3. In your opinion, is Ostertag managing the cross-cultural operations effectively in the

    process of trying to change the firms culture? Explain

     Yes I do think Ostertag is managing the cross-cultural operations effectively in the process of trying to change the firms culture, but will take time. Much of the high-context

    cultures and low-context cultures will at first have communication difficulty, but will be able to work effectively because they have the same core values and goals. Also by replacing nearly every member of the companys senior management, change will be easier because all

    the senior managements mind-set are out of the company and new management mind-set

    will bring the company to change the firms culture. Ostertag was taking a transnational

    focus, where the organization usually tried to achieve global efficiency by having their subsidiaries share value and trust.

    4. Did Ostertag appear to have a global mind-set? Why or why not?

     Ostertag appear to have had a global mind-set because all of the changes he brought about into the company. For example, having a cohesive mission statement and a list of eight company values, and firing senior management team. Ostertag tried to have different cultures to integrate into one culture by making common values and goals for workers in the company. Over time different cultures will have to adopt other cultural values like Asian cultural values because of the increase in economic power and influence of China and India. Ostertag realized that the company was in trouble if there was no cultural change. If he did not have a global mind-set, he would have not have brought about change into the company to incorporate core values made by the new management team. He knew that by having a global mind-set, it will bring economic benefits and facilitate the development of cultural sensitivity and understanding to a multination firm like General Semiconductor. Unfortunately, Ostertags changes did not occur quickly enough for General Semiconductor to fight off hostile takeover in 2001.

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