Case Study

Case Study

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Case Study

The Business Problem

The business problem identified in the case study is how companies can internationalize effectively. Businesses face problems when trying to internationalize because of the cultural differences in their area of operation, their experience in internationalization, as well the local people’s perception of the company or the country of origin in the company. KPL faced tremendous challenges in Netherlands Antilles because they did not have any experience in internationalization. They used the wrong approach by imposing their culture on the Antilleans, and the local people opposed them. Although the country is largely dependent on the Netherlands, the people were concerned about the colonial history and opposed a new form of imperialism. KPL were more aware of the Indonesian culture and were ready and willing to accept it and conduct their business according to the cultural customs. Hence, the company was more successful in Indonesia than it had been in the Antilles.

Rank-Order the Critical Issues

Country’s cultural contexts affect the process of internationalization of companies. People who identify strongly with their cultures do not want a foreign culture imposed on them. Some cultural practices take precedence over business operations in some countries

A company’s approach towards dealing with cultural complexities can affect its operations in the country where they want to operate. Using a polycentric approach enables a company to identify the most esteemed cultural factors in a country, which can hinder their operation.

Another critical issue is the political context. Companies have to be aware of the relations that their country of origin have with the country of operation, as this can determine the local people’s perception of the company. It will influence the way the people interpret the company’s decisions and actions, as well as how they accept the product

Propose Solutions

Adopting a polycentric approach is more effective because it recognizes the importance of implementing local solutions to the local problems. The company management has to be aware of the different cultural elements of a country and their way of conducting business. This will ensure that they are aware of what to expect before beginning operations such as, people’s perception of the business and the willingness to accept it once it begins operating.

Recommendations of implementation of the solutions

I will first conduct research concerning the country. This will enable to enhance my knowledge of the country, and I will be able to know what to expect once I begin working there. I will have to identify a person who is knowledgeable concerning the business environment in the country. He or she understands the local environment better and can identify the requirements of the organization. The local agent will help in laying out the strategies, which the company shall follow when setting up the business. The information collected shall focus on different items including the importance of different cultural elements such as religion, dressing, and business etiquette, as well as the suitable marketing strategies to implement. It shall also include information concerning the necessity of product localization to suit the market

Communicating the solutions

I will submit the results of my research in a report, which will contain all the information I have gathered. I shall make the report and the proposed recommendations available to the company management.

References

Fanning, E. D. (2000). Analyzing a case study. Retrieved from the Arthur W. Page Society Web site: http://www.awpagesociety.com/images/uploads/Analyzing_A_Case_Study.pdf

Van Marrewijk, A. (2004). The management of strategic alliances: cultural resistance. Comparing the cases of a Dutch telecom operator in the Netherlands Antilles and Indonesia. Culture & Organization, 10(4), 303-314

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Case study

Case study

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Case study

Non-Governmental Organizations refer to those organizations that are legally constituted through a legal or natural process to operate as an independent entity from government. In Singapore, the organizations are set under the Charities Act. This act is meant to support improvement of administration through monitoring of charities and prevent embezzlement of funds. It also encourages the provision of vital information. This act also upholds the efficient use of charitable resources through the legal framework. However, the story of the National Kidney Foundation presents a violation of the law under the management of T.T Durai. His management presents a case study for management of funds in charitable organizations.

T.T. Durai initially joined the National Kidney Foundation as a volunteer. He later rose in ranks to become the CEO. His leadership marked major advancements towards making the organization meet its target. He made great strides to maintain the name and image of the organization. Therefore, mere allegations of his management style and the organization were settled in court where his organization won most of the cases. For instance, Archie Ong was sued by the CEO in 1997 for defamation. These were efforts to maintain the image of the organization. Durai was a hands-on leader ensuring everything ran smoothly in the organization. He also came up with innovative ideas to increase the money contributed towards the organization.

He initiated effective programs towards patients with kidney problems. NKF grew and developed to a reputable organization among other states. Countries like China, Bangladesh, Pakistan and Malaysia made continuous consultations with NKF. They used the expertise of NKF to create their dialysis programs. The organization also diversified to reach out to children and young people. The NKF Children’s Medical Fund was therefore established to assist them treat severe illnesses (Rowe, 2012). However, over time the level of credibility and transparency of Mr. Durai became questionable. Allegations that he spent most of the charity’s money on affluent expenses were on the rise.

The final revelation was established from a court case where he was suing the local newspaper the Straits Times and the writer Susan Long. However, the court case made significant revelations towards the lack of integrity on Durai’s part. His was a highlight of the misuse and lack of transparency in charitable organizations. Apparently, the public donations were not completely reaching their primary goal to help people in need of kidney treatment. The audit undertaken by KPMG exposed the level of financial embezzlement and corruption at NKF. The funds for the charity were used to cater for the expensive needs of the CEO. He traveled first class and spent hefty amounts of money in affluent establishments. In 7.5 years, he had spent over $2 million on his travel overseas.

This indicates the level of discrepancy in charitable organizations. One of the major causes of misuse of donation funds can be attributed to the lack of a proper monitoring, auditing system. In NKF, a committee was established to check on funds, however, it proved to be a rubber stamp and ineffective. Therefore, they had no authority to highlight any financial alterations. Some organizations give ultimate control power to the CEO. This can prove to be detrimental towards maintaining transparency and ethical principles. Durai had ultimate control and power. The committees that were mandated had little impact on his activities. The lack of a proper system of assessing the CEO led Durai to misuse the organizations finances. Lack of a proper auditing system also led to unorthodox accounting methods.

In conclusion, charitable organizations play a fundamental role is supplementing government services. However, there should be a proper system to assess the ethical principles and level of transparency in these organizations. It is therefore a principle requirement that organizations maintain public confidence through transparent and reliable methods in the use of funds. The government should also take bold steps to effect the laws regulating charitable organizations.

References

Rowe, W. G. (2012). Introduction to nonprofit management: Text and cases. Thousand Oaks: SAGE.

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