Global Multi-Products Chile

Innovation StrategiesCross-Border Implications

What is Multi-products' strategy? What specific systems or programs is it using to implement this strategy?

What environmental changes have taken place in Chile?

What internal changes have been made at Multi-products Chile?

What were the barriers to change? How did they operate as barriers?

STRATEGY?A strategy is the specific means by which an organization will meet its objectives.

INNOVATION

Product

30 Technology platforms

30% of sales from

products > 4 yrs old

Customer Service

Key Accounts

Integrated Solutions

One voice, One face,

One company

What is the innovation strategy being implemented at GMP Chile?

Multi Products Chile: Changes

Old Market Conditions?New Market Conditions?Internal changes?

Change Process

Changes in Chile: New

competition New ways of

operating Increased

sophistication of customers

Distributor changes

Organizational changes: Empowermen

t councils Teams &

teamwork Reward

system Sales rep

roles & skills New positions

(IS managers, key account leaders)

Barriers: Product

groups Distributor

based selling Hierarchy Management

attitudes Rewards Culture,

politics, isolation

Desired State: Key

Accounts Integrated

Solutions Increased

Profit

WHY SO DIFFICULT?

GLOBALIZATION

HQ FOREIGNDIVISION

Replicate or Adapt?1.Don’t change & train2.Adapt & learn

Putting global strategies into practice is difficult!Must understand company’s (home country)

strategy and management systems AND history and culture of host country if strategy and systems are

to be implemented.

A Brief History of Human Rights Violations in Chile

Professor Harry LaneNortheastern University, Boston

Salvadore Allende 1970 wins election and forms a left wing

“Marxist’ government “Reforms”

Banking, insurance, communications, textiles and copper were nationalized

Hostility by local business groups and USA Capital flight

Inflation was 300% in 1973; cost of living increased 647% in 1972

Anti-government strikes in 1972 and 1973

Augusto Pinochet Coup d’etat Sept. 11, 1973 Military rule 1973–1990

130,000 arrests 7,000 people held in national football

stadium torture 30,000 exiles in Western Europe 3000 people killed or missing (los

desaparecidos) Economic stability 1990 – civilian government followed by

a period of peace and prosperity

Pinochet’s legacy

Pros Returned property Economic stability Peaceful transition to

civilian government Model economy of Latin

America

Cons Human rights record 3,000+ dead or missing

“We live in a strong, safe Chile. I think if you look at the result of what my father did, you will understand that he did what had to be done.”

Lucia Pinochet

“The damage he has done to this country is too great for his retirement to heal. Our scars are too great.

Luisa Toledo, mother of 3 victims of execution

The Evolution of Chile: Prosperity for Some 

Chile: Tradition of Democracy Effects of Pinochet’s Dictatorship Chile’s New Democracy

Hofstede’s comparison:

CANADA CHILE

POWER DISTANCEExtent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Value placed on egalitarianism. Lack of overt status and/or class distinctions in society.

Intermediate. Organizational arrangements show taller pyramids and low degrees of delegation. Hierarchical social structure, rigid social classes. Common cafeterias are rare, privileges for power-holders common.

INDIVIDUALISMThe degree of interdependence a society maintains among its members.

Individualistic culture. Expectation that people look after themselves and immediate families. Employees are expected to be self-reliant and display initiative.

Collectivist culture. While shifting in organizations some paternalistic practices still remain in place.

MASCULINITY: Driven by competition, achievement and success.FEMININITY: Caring for others and quality of life.

Moderately masculine. Subdued respect for achievement, success and winning. Tend towards work-life balance.

Feminine. People need a sense of “belonging”, place value on warm interpersonal links and tacitly search for approval of their group. Tend to be supportive team members.

UNCERTAINTY AVOIDANCEExtent to which members feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these.

Uncertainty accepting. Easy acceptance of new ideas, willingness to try something new or different. Tolerant of ideas or opinions, allow freedom of expression.

Uncertainty avoiding. Strong need for rules and elaborate legal systems to structure life. Great dependence on experts and authorities, particularly among non-managerial employees.

Cultural DifferencesCanada and Chile

Implications for team work, bonus systems, and empowerment?