Transcript Global Marketing & CTE

Preparing Students to Work in
Global Competitive
Employment
Prepare workers for the future
from an international perspective!
Clelia McCrory
ESSDACK Grants/CTE Specialist
Cell #: (620)694-9289
Email: [email protected]
Served on the U.S. Career and
Technical Education Team to
South Africa in October 2009.
Our students will do global jobs
with these challenges:
 #1
Challenge: Have CULTURAL
differences between countries of
product and THE REGULATION
STANDARDS USED IN countries of
product origin AND countries that will
consume/use the product.
 Example: Non-kosher entity producing
a product for a Jewish consumer!
QUALITY CONTROLS:
 #2
Challenge: Have QUALITY
differences between the REGULATION
STANDARDS USED IN countries of
product origin AND usage in the U.S. or
a country having more rigid standards
(which if not carefully scrutinized will
cause their company to face costly
recalls):
Example Product Recalls:
 About
1,000 Drop side cribs recalled by
Caramia Furniture made in Canada in
January, 2010 sold for between $240
and $370 each from September 2002
through December 2005
 LOSS TO COMPANY: at least
$305,000!
Recall #2 January, 2010
Example:
 Barbados-based
company had to recall
about 635,000 cribs made in China or
Vietnam sold by Kmart, Sears, WalMart, and other stores in the U.S. after
the death of a 6-month old boy and
multiple reports of injuries.
 LOSS: at least $196,850,000!
Recall #3 January 22, 2010
Example:
 About
162,000 Lysol steam cleaning
mops valued at $38 each, made in
China by Stamford, CN, are being
recalled because hot water mixed with
Lysol can spurt out and rupture the
product, posing a burn and laceration
risk to consumers! COST: at least
$6,156,000
What’s the PROBLEM:
 MANY
recalls occur due to:
 Quality in terms of complying with the
U.S. environmental standards that differ
from manufacturing source countries.
 Some foreign countries such as China
and Vietnam have very lax
environmental and manufacturing
standards in their facilities.
Challenge #3: Become
bilingual employees
 Global
competition is more effectively
dealt with if the students become
bilingual and can speak/communicate in
two or more languages. WE MUST
ENCOURAGE MULTIPLE
LANGUAGES TO BE LEARNED AND
UTILIZED BY OUR STUDENTS!
Challenge #4: The country’s political
structure impacts global marketing.
 South Africa
President Nelson Mandela
was imprisoned for 18 years at Robbin
Island in this small cell. Once Apartheid
occurred, then he was asked to be the
country’s leader! What a change!
South Africa is a democracy!
 But,
there are still visible signs of other
political structures. Two very visible
communist party signs are shown as
follows:
Education/Training varies
between countries!
 South Africa
only has compulsory
attendance for Grades 1-9 (grade 0 or
reception year and Grades 10-12 are
not required).
 Educational philosophy of service
delivery varies greatly between
countries!
Asian vs. American Education:
– Supply does not match
demand for school slots in China or
Japan. Therefore, students who get to
attend school are very motivated and
want to be there!
 Rote Learning vs. education
incorporating higher level creative
thinking skills
 Competition
Asian vs. US Education (cont.)
 School
length: Asian schools have 5-6
hours class per day on weekdays and
then 3 hour classes on Saturday.
 Much homework for Math and
Language but only 5 main subjects in
Asian schools plus PE, Art, Music, etc.
 Memorization of textbook works for
most Asian school exams.
Asian vs. US Education (cont.)
 If
you make a bad grade at Asian
school, you have SHAMED YOUR
ENTIRE FAMILY (everyone with your
Last Name).
 Asian children have less distractions,
families are tightly knit, and value
education more than Americans.
Top Performing Countries in
Science:
 Top
5 in descending order (according to
the Organization for Economic
Cooperation and Development –
Education at a Glance 2009) are:
Finland, Canada, Estonia, New
Zealand, and Australia. The United
States is #22!
South Africa Initiative to Train
Difficult to Employ People
ACTION-Training for Blind and Disabled
Children in Johannesburg, S.A. trains
blind and disabled people to use
computers and computer software
needed to write the Microsoft Accredited
examinations and obtain gainful
employment!
South Africa Has Online
Career Information Service
 Zenzele
Training and Development
Centre at Cape Town, S.A. developed
Career Planet web-based tool found at
http://www.careerplanet.co.za that
includes free information for schools
and communities similar to Kansas
Career Pipeline. Further collaboration
should strengthen both web tools in
U.S. and South Africa!
South Africa is rich in many
natural resources!

Such as platinum, coal, and DIAMONDS
recovered from the mines!
 South Africa’s rich platinum reserves could
make it a key player in a major future energy
source – fuel cell technology! The global
market for fuel cells and hydrogen
technologies is forecast to be worth US$46
billion by 2011.
South Africa is focused upon
renewable energy!
 The
Cahora Bassa Hydroelectric Plant
built in Mozambique, by the apartheidera government, provides electricity to
Mozambique, Zimbabwe, and South
Africa!
South Africa Commercial Wind
Farm
 South Africa
is actively targeting the
greater use of renewable and zero or
low-carbon sources of energy. Four
Danish-supplied wind turbines with a
total of about 5.2 megawatts make up
this wind farm northwest of Darling, S.A.
on the west coast!
American Source to Learn
More About Wind for Schools!

Spirit Lake Community School, Spirit Lake, IA
powers its schools with renewable energy
sources!
 Website: http://www.spirit-lake.k12.ia.us
 Contact Person: Jim Tirevold, school facility
director, 712-336-1370 ext 3500
 Sterling USD#376 took a study trip there
under the direction of Mr. Dan Whisler
[email protected] !
 Sterling, along with other schools, have
become chosen Wind For Schools sites.
Global Marketing Text:
 Peng,
Mike W. GLOBAL BUSINESS:
South-Western Cengage Learning,
5191 Natorp Boulevard, Mason, OH
45040 USA (published 2009 ISBN# for
student text: ISBN-10: 0-324-36073-8
 Most chapters have specific strategies
to utilize (sample strategies will follow).
Capabilities With a VRIO
Framework:
 VRIO
Framework: The resource-based
framework that focuses on the value
(V), rarity (R) , imitability (I), and
organizational (O) aspects of resources
and capabilities.
(V) The Question of Value:
 Do
firm resources and capabilities add
value? Only value-adding resources
can possibly lead to competitive
advantage, whereas nonvalue-adding
capabilities may lead to competitive
disadvantage.
(R ) The Question of Rarity:

Simply possessing valuable resources and
capabilities may not be enough. The next
question asks: How rare are valuable
resources and capabilities? At best, valuable
but common resources and capabilities will
lead to competitive parity but not to an
advantage. Only valuable and rare resources
and capabilities have the potential some
temporary competitive advantage.
(I) The Question of Imitability

Valuable and rare resources and capabilities
can be a source of competitive advantage
only if competitors have a difficult time
imitating them. It is relatively easy to imitate
a firm’s TANGIBLE resources (such as plant),
but it is a lot more challenging and often
impossible to imitate INTANGIBLE
capabilities (such as tacit knowledge,
superior motivation, and managerial talents).
(O) The Question of
Organization:

Even valuable, rare, and hard-to-imitate
resources and capabilities may not give a firm
sustained competitive advantage if the firm is
not properly organized. Often, it is their
invisible relationships that add value. Overall,
only valuable, rare, and hard-to-imitate
resources and capabilities that are
organizationally embedded and exploited can
possibly lead to sustained competitive
advantage and persistently above-average
performance.
VRIO Framework In Summary
 Because
resources and capabilities
cannot be evaluated in isolation, the
VRIO framework presents four
interconnected and increasingly difficult
hurdles for them to become a source of
sustainable competitive advantage. In
other words, these four aspects come
together as one “package”.
Implications for Action:

Managers need to build firm strengths based
upon the VRIO framework.
 Relentless imitation or benchmarking, while
important, is not likely to be a successful
strategy.
 Managers need to develop strategic foresight
for future competition.
 Students need to make themselves
“untouchables” whose jobs cannot be easily
outsourced.
Ethics Is Paramount!!!!!!
 Strategic
responses to ethical
challenges include (1) reactive, (2)
defensive, (3) accommodative and
(4)proactive responses. Challenge your
staff to analyze their responses as they
consider the following examples:
1. Reactive response

You deny responsibility and do less than
required (Historical business incident
example: Ford marketed the Pinto car Iin the
1970’s knowing that its gas tank had a fatal
design flaw that could make the car
susceptible to exploding in rear-end
collisions. Sure enough, accidents happened
and people were killed and burned in Pintos.
But, Ford refused to recall the Pintos for
several years!)
2. Defensive response

You admit responsibility but fight it; do the
least that is required (Historical business
example: In the 1990’s, Nike was charged
for running “sweatshops”, although these
incidents took place in its contractors’
factories in Indonesia and Vietnam. Although
Nike did not own or manage these factories,
its initial statement, “We don’t make shoes,”
failed to convey any ethical responsibility.)
3. Accommodative response

Accept responsibility; do all that is
required (Historical business example: In
2000, when Ford Explorer vehicles equipped
with Firestone tires had a large number of
fatal rollover accidents, Ford aggressively
initiated a speedy recall, launched a media
campaign featuring its CEO, and
discontinued its 100-year relationship with
Firestone. Ford became a better corporate
citizen in 2000 than what it was in 1975.)
4. Proactive response

Proactive firms anticipate institutional
changes and do more than is required.
(Historical business example: In 1990, BMW
anticipated its emerging responsibility
associated with the German government’s
proposed “take-back” policy, requiring
automakers to design cars whose
components can be taken back by the same
manufacturers for recycling. BMW not only
designed easier-to-dissemble cars but also
signed up the few high-quality dismantler
firms as part of an exclusive recycling
infrastructure.)
Which Response Fits YOU?
 Hopefully,
this presentation has been
thought-provoking and will get you
started in thinking from a global
marketing perspective!
 Mrs.
Clelia McCrory, ESSDACK
Grants/CTE [email protected] or Cell:
620-694-9289