Cultures and Organizations

Sep 10

One of the assigned texts for my current course in global management is Cultures and Organizations, which carries the catchy subtitle Software of the Mind. As they setup the book they naturally provide details about the quantitative methods used to analyze the data presented. This includes both the methods and the models, as well as the evolution of the same throughout the research. What’s more interesting is their take on nurture vs. nature, which is to say that they explore the relationship between genetics and social influence. At the foundation they place values, which they argue are learned extremely young. Building on this foundation of values are practices and objects such as rituals, heroes and symbols. The research focuses primarily on the statistical trend, leaving analysis of deviations to a minimum. Diluted Values & Cultural Relativism In the introductory chapter, The Concept of Culture, they highlight some of the ways in which culture change, both over time and with respect to other cultures. One concept they identify is Moral Circles, going further to define some common boundary markers for moral circles. A moral circle is a peer group within which all members have a common moral agreement. Typical demarcations for a moral circle are religion or philosophy. A very interesting observation they put forth about moral circles is that they have a tendency to expand to include more and more people, or even non-people as members. They caution that such vast circles dilute the rights and duties of all members, concluding that “Most empires have disintegrated from the inside.” In contrast to this warning about overly inclusive moral circles, they argue in favor of cultural relativism quoting Claude Lévi-Strauss as saying: “Cultural relativism affirms that one culture has no absolute criteria for judging the activities of another culture as “low” or “noble”. However, every culture can and should apply such judgment to its own activities, because its members are actors as well as observers.” In this they mean to suggest simply that while within a culture or moral circle, a group may be subjectively critical of itself, it is not as easy to be objectively critical of another group or culture. Comparison of values and norms across cultural boundaries, if it’s...

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Brazil, the World Cup & the Olympics

Sep 07

Brazil will host two global events in the next few years. The first is the FIFA World Cup in 2014. The second is the summer Olympics in 2016. Geographically and economically, Brazil is the most impactful country in South America. In terms of population, currently over 200 million, and land area of 8.5 million square kilometers, it ranks number 5 globally. Economically, Brazil is a participant in the G20, with a GDP placing it eighth in the world overall. There are a few reasons it makes sense for Brazil to host these events. Brazil’s well developed agricultural, mining, manufacturing and service sectors, combined with a thoughtful approach to national debt and macroeconomic stability, make it an attractive location for both events. Both events will draw crowds in the millions, which will require and investment in infrastructure to accommodate and secure the venues used for these events. Football (American Soccer) is a national pastime, which means that most major cities already have very large stadiums to host World Cup. FIFA World Cup The FIFA World Cup, often referred to as simply World Cup, is a competition of men’s football teams from around the world. It is organized by Fédération Internationale de Football Association, the sport’s governing body. The competition last for about a month and involves 32 teams. All games take place in stadiums located in the host country. Since its founding in 1904 there have been 19 tournaments. The 2014 event in Brazil will be the 20th international tournament. Of the 19 tournaments held to date, Brazil has won five times. The 2014 World Cup will also represent the second time Brazil has hosted the event, the previous time was in 1950, following World War II. 2016 Summer Olympics The Summer Olympics, first held in 1896, have occurred every four years, except in times of war. From a starting point of 42 official events and under 300 male athletes, the games have grown to include 300 events and over 10,000 athletes from all over the world. The 2016 Summer Olympics will be the 31st time the games have been held. The City of Rio de Janeiro was selected to host this summer games. Brazil is using their preparation for the...

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Chavez and Castro are Dead

Sep 02

When considering the last four decades of American politics (speaking broadly of the American continent(s)), two extraordinarily influential figures are Hugo Chavez and Fidel Castro. Ideologically, many of their political inclinations were formed by the very country which they spent much of their lives, and political fortunes, attempting to undermine, namely, the United States of America (USA). Their dislike for what they perceived as United States imperialism shaped not only their personal convictions, but through them it influenced an entire region and generation. Political The preeminence of the United States economy over the past century has had an understandably profound influence on the political landscape both domestically and abroad. From this position of leverage, the US economic engine has extended its influence outward to shape many developing and emerging economies. Objectively, it would be difficult to assign a definite positive or negative to the shape the US influence has promoted, but subjectively, it has occasioned both. In the case of Fidel Castro of Cuba, he adopted a very strong anti-imperialist posture, which drove him at an early age to fight against United States involvement in Cuba. Though this initial attempt was unsuccessful, he spent the following years organizing a group that would overthrow the Cuban government, allow him to assume political and military power and align with the communist Soviet Union. His socialist agenda was a further departure from western influence and encompassed health care, education and the press. Hugo Chavez experienced similar early setbacks in his initial attempts to seize power, but eventually he succeeded in introducing a new political party referred to as the United Socialist Party of Venezuela. His political focus was more decidedly socialist, though he did align himself with the Castro regime in Cuba and Evo Morales in Bolivia. Social Socially, one possible motivation for a dislike of US influence may have to do with perceived inequality economically. Poverty, when contrasted with great power and wealth, can have an appearance of unfairness. It’s conceivable that the seemingly disparate economic circumstances of the US and Cuba, or other Central and South American countries, could promote a socialist viewpoint. It must be tempting as a leader to want to solve problems for the people rather than direct...

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Country Risk Analysis for Pakistan

Aug 31

The frontier market of Pakistan has experienced some setbacks in growth in recent years due to both political instability and economic uncertainty. In 2008, Pakistan agreed to an International Monetary Fund standby arrangement due to a crisis in its balance of payments. Economic issues have been exacerbated somewhat by the depreciation of the Pakistani rupee coupled with high inflation. Despite some recent stabilization of the economy, outside investment remains sluggish. Textiles represent the primary export and agriculture either directly or indirectly employs up to two fifths of the population. Regional conflict and ongoing tension with neighbors Afghanistan, Iran and India add political complications to growth and investment opportunities in the region. Pakistan was 143rd in the world for education expenditure as of 2009, investing roughly 2.7% of GDP. The average male will complete about seven years of education, which is slightly more than females. Despite these low education statistics, investments in communication infrastructure have placed them #9 in the world for mobile phone availability and #20 for internet users. This connectivity outside of Pakistan has produced some employment opportunity for the more educated workers. Economic Risk The country’s lack of growth has made it difficult in the past to pay on it’s moderate debts. In one case this lead to an intervention by the IMF, as stated above. The flagging economy and reticence on the part of foreign investors have reduced liquidity, which further dampens growth opportunities. The relatively weak position of the economy has also reduced leverage, which further limits growth opportunities, both domestically and internationally. Without the needed leverage or liquidity, entrepreneurship and growth for existing companies is severely limited. Political Risk A significant driver preventing growth in Pakistan is found in its relationship to its neighbors. External conflicts, such as the ongoing border dispute with India regarding the Kashmir territory in the north, have resulted in three wars. This ongoing conflict peaked when the two nations began carrying out nuclear weapons testing in the late 1990’s. Domestic insurgents, primarily in the tribal regions on the border with Afghanistan, are a continuing struggle for both political and military leaders. This domestic issue is further complicated by political instability in Afghanistan and the withdrawal of US troops from...

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A Symbol of our Cultural Decay?

Aug 10

The story of Joshua Bell playing in the Washington Metro during rush hour, only to be ignored by sores of uncultured commuters, has almost become cliché by the ever growing count of “me too” articles that highlight the same conclusions originally drawn by the Washington Post journalist and his art curator friend. Some attempt to map it on to some broader cultural decay, which they argue also affects them. Why is it that so many articles are being written about the same 60 minutes in a subway? Some feel they haven’t framed themselves properly for the world to appreciate their innate brilliance. Some feel they are the victims of an uncultured world where others aren’t sophisticated enough to recognize their great ideas. Some acknowledge that, within their current context, it is unlikely they will find opportunity to develop and showcase their talent. 1,000,000 Hours of Practice What I haven’t heard is any discussion of how that morning in MAY was no different than the many thousands of unapplauded hours of practice he devoted to making that musical selection part of his repertoire. Of the years in school, and community programs playing sub-standard fodder for musicals and concerts. It’s fun to repeat the contrast of a sold out and sophisticated concert hall to the low and earthy subway station and to conveniently skip past the hundreds of lesser venues, half full or nearly empty, in which every musician must play as a right of passage while working his way to the top. I suspect this event has become a mistaken symbol, an unfortunate snapshot of the one man’s ignored greatness, feeding an ever more entitled society who believe that somehow, without sufficient investment, they’re great, but unappreciated. Oh how I wish that we would see it as a clarion call to become uncelebrated heroes, unreimbursed contributors to the world we all dream about. No doubt we’ll all have our concert hall moments, filled with applause, but I would love to see a world where unapplauded practice was as prized individually as it is in montages in today’s popular movies. I would love to think that maybe those scores of people said in themselves as they walked by “good for you. That...

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Bullying and Corporate Takeovers

Aug 03

Politics in the workplace are brought about by “interdependence, divergent interests, scarcity, and power relations inevitably spawn political activity”, according to at least one author. Most references to politics in the workplace relate to intra-corporate affairs involving managers and employees. It’s important to recognize that when ownership in a company is divided, such as a publicly traded corporation, these same characteristics can promote political posturing in extra-corporate affairs. While politics drive interactions both internal and external to a company, there are some unique conflicts that arise when ownership is divided. Some owners may have little interest in the long term prospects of a company, or its relationship to the environment or a community or even its employees. In this case, they view their ownership interest as little more than an investment, and any measure available to increase the immediate value of that investment is in their best interest. Naturally this can be in direct conflict with the interests of the managers, employees, communities and even the broader economic interest of a region or a country. It can even be at odds with the interests of other owners. The overarching aim of a company is no longer to provide long term, healthy growth, but rather short term gains, even if those gains come at the expense of the long term interests of other interested parties. Dell Takeover One situation that can become very charged politically is that of a corporate takeover. Corporate takeovers occur when a majority interest in a company changes from one entity or group to another. In this case, the conflicts of interest mentioned above can become critical. What changes would the new majority owner(s) make to the company? Recently in the news we’ve seen many articles related to Michael Dell’s efforts to take his company private. Obviously there are scarce resources at play, and not all investments can be pursued. There is clearly a power play between Carl Icahn and Michael Dell. There are questions about the future of the computing industry. All these issues lead to uncertainty of future, pressure to change and even a lack of flexibility to set a meaningful vision for the company. Stock price has a significant impact on financing decisions, which...

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