Part 2. MANAGEMENT AND CULTURAL DIVERSITY

Role-play № 1

Part 1

International marketing decisions are deeply affected by the finance and accounting function; therefore, a brief review of their conduct in the international business field is in order. Essentially, international finance deals with the management of financial resources, such as the sources and uses of funds and the remission of profits from subsidiaries. The underlying force behind finance decisions is a corporation’s financial objectives. These objectives usually are defined in terms such as desired return on investment or assets, desired profit growth, hurdle rate (for accepting new projects), proportion of earnings desired to be paid in the form of dividends, and others.

With certain objectives given, a corporation can then decide how to raise funds – whether to borrow money or to make a stock offering; where to raise money – in the United States or in another capital market; and who should trigger certain actions – the parent or a subsidiary. Among other things, two important factors influence international finance decisions: (1) the varying and fluctuating exchange rates of different currencies and (2) the restrictions imposed by host countries on the transfer of funds. Thus, before the source of funds can be settled, the exchange rates of the countries where the funds are to be raised must be predicted. Then funds can be raised to avoid exchange losses on the one hand and to minimize the cost of capital on the other. Another factor that must be dealt with in money management is the political climate of the host countries involved. If problems that may jeopardize the ownership of corporate funds can be foreseen, it might be desirable to transfer funds out of the country while there is still time, even at the cost of substantial exchange loss.

Marketing as affected by financial decisions in many ways. Among these two deserve mention. One is the area of transfer pricing – the price that a subsidiary charges to another subsidiary belonging to the same parent for its goods, services, and technology. The second is that the approval of projects, which seem crucial from a marketing standpoint, may be denied because overall corporate financial objectives do not support the project.

Imagine, that you are working for famous international food-company. Now the paces of development of the company are rather smooth and stable. But there is the alternative was of running the company - to invest money into the further expanding of the company activity. From the one point of view, this project is very risky (like almost all the international ones) and the high volume of expenditures is expected. But, from the other side, providing the wise management, the company could greatly increase its market value. So set up the agenda for a meeting to discuss different problems and try to make a decision towards the potential strategy of a company.

Consider the different positions of such managers as: the Chief Executive, the Marketing Manager, the Financial Manager, the Manager of International Investments, the Manager of International Affairs.

Cover such points as:

- financial objectives of a company;

- the marketing strategy;

- money management;

- reviewing the investments proposals;

- prospects of international markets.

You may think of some more participants and points of agenda and add them to the list. Choose the role and be active, defending your point of view.

Chief Executive:You are to be the monitor of the meeting and to make the final decision on a problem. So listen to your colleges very thoroughly and analyze all of their proposals.

Make use of the following helpful phrases from “meeting vocabulary”:

Starting: Let’s get down to business.

Purpose: We’re here today to …

I’ve called this meeting in order to …

By the end of this meeting, we need a clear recommendation.

Agenda: Have you all seen a copy of the agenda?

There are four items on the agenda.

Time: The meeting is due to finish at …

We’re short of time, so can I ask you to be brief?

Roles: … has kindly agreed to give us a report on this matter.

…, why don’t you chair this item?

Process: I’d like to hear what you all think before we make a proposal.

Opening an item: So, the first item on the agenda is …

Closing an item: I think that covers the first item.

Shall we leave that item?

If nobody has anything else to add, …

Next item: … let’s move on to the next item.

The next item of the agenda is …

Referring back: As we said earlier, …

Interrupting: Excuse me, may I interrupt?

Can I say something here?

Just a moment …

Commenting: That’s interesting …

I see what you mean.

Emphasizing: I’d like to point out / emphasize / draw your attention …

Marketing Manager: You are a professional in your field and, based on your experience, convinced, that your company will achieve a great success in future by operating a new restaurant in spite of big investments. Before the meeting you’ve made a previous analysis of a situation. You are to persuade your colleges, that the future expanding will cover the costs and risks with a surplus.

Make use of the following helpful phrases:

Do you mind if I present you some of the latest materials on…?

Analyzing the world food-market, I’ve made the conclusion, that…

As far as I can remember from my experience…

I’m sure, that after a further constant analysis and marketing research I would provide you with all the details on…

I just want to say, that after the unique marketing policy our return on investments will surprise you.

Financial Manager. Your purpose is to maintain the money potential of a company. As usual, you tend to do it only by the thorough forming of a financial portfolio. You support the position, that the stable financial strategy will provide the company with a growth and predicting incomes.

Make use of the following helpful phrases:

I’d like to point out, that our stable position on the world market…

Referred to the last figures of our balance, we can admit only … expenditures this year.

As far as the financial side of the problem is concerned…

Can I just evaluate our future costs to make a decision about…?

Manager of International Investments: You have more favorable attitude to the enlarging the business, but your final decision depends only on the fact, that the future project will be worthwhile. After some previous reviewing the investments proposals you are sure, that from the marketing point of view such changes will be over returned.

Make use of the following helpful phrases:

First of all, we should measure our proposals against all stated corporate policy objectives.

The goal of international investments is …

Our company continues to be interested in growth prospects to achieve success. That’s why …

We should set the highest and the lowest possible levels of…

Manager of International Affairs: You are to appreciate the points of view of your colleagues. You have to provide them with the information on the possibilities of the company on the international arena. You know the most favorable economic and social atmosphere of different countries. So you just can analyze the problem with other measures of different countries.

Make use of the following helpful phrases:

The situation in the world now…

The economic environment can be viewed from different angles: …

The level of economic activities in such countries as … is …

To consider the social / cultural environment …

Role-play № 1

Date: 2015-12-24; view: 845