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BADM 633 – Wk 10

International Business Culture

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Cadbury Sneers at Kraft's Hostile Bid

By DANA CIMILLUCA, CECILIE ROHWEDDER And JEFFREY MCCRACKEN

Kraft Foods Inc. launched a £9.8 billion ($16.28 billion) hostile takeover bid for Cadbury PLC, but refused to budge from the amount offered in its initial overture, leaving the two sides to dig in for what could be a lengthy and bitter battle for control of the British confectioner.As expected, Cadbury swiftly rejected the hostile offer, calling it "derisory."Kraft held steady on its price because, from its standpoint, nothing has transpired to warrant an increase since its first informal overture in September.Kraft made no effort over the last two months to reach a friendly deal with Cadbury's board and management, led by Chief Executive Todd Stitzer, according to people familiar with the matter. That, and Kraft's refusal to sweeten the offer, suggests the odds of a friendly deal are growing longer. The response from Cadbury reflected the increasing acrimony. "The repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive," Cadbury Chairman Roger Carr said in a statement. Kraft had faced a U.K.-imposed deadline of Monday to make its proposal official or walk away. Many analysts had expected Kraft would boost the offer modestly. But the board of the U.S. food giant voted Friday to hold the offer at 300 pence in cash and 0.26 new Kraft share for each Cadbury share, according to a person familiar with the matter.

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The Big Mac's Currency Lesson

McDonald's departure from Iceland is a suggestive economic indicator.As cultural calamities go, there are worse fates than that of Iceland, which is losing all three of its McDonald's franchises, effective next weekend. But the Big Mac's departure from Iceland, a victim of the financial crisis that sent the currency into a tailspin, is nonetheless a suggestive economic indicator.McDonald's Icelandic franchisee noted, in explaining his decision to throw in the patty, that unlike his local competitors, McDonald's imports most of its raw ingredients, from beef to special sauce, lettuce, cheese, pickles, onions and, we assume, sesame seed buns. This reliance on imports has undercut McDonald's margins in the island nation, which saw the krona plummet by more than 80% after the financial panic took down the country's major banks.But the lesson here is not about the dangers of globalization or the virtues of buying local. Since Iceland's banks collapsed last fall, and its currency with them, the cost in local currency of all imports, and not just fast food, has soared. This has done nothing to "cushion" the blow to Iceland's economy from what amounted to an international run on its banks. What it has done is added a currency panic to a financial panic, and made Iceland's prospects bleaker than they otherwise might have been.In countries such as Ireland, some critics of the euro have claimed that membership in the currency bloc has made its economic woes that much more painful, and that Ireland would have been better off if it could have depreciated its way out of trouble. In the U.S., too, there's a chorus arguing that we can devalue our way toward prosperity. But debasing one's currency makes a country poorer, not richer. Just ask the residents of Reykjavik, who now must travel 900 miles to get their Big Mac—in Dublin.

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Tri-Term Exam #2Essay Questions

I A vs I BII A vs II BIII A ~ III B

M-C/T-F

•Two Sessions to GooScotlandoSaudi Arabia

•What topics do YOU want to explore ???

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Cultural Landmines for Women

It ain’t fair, but . . . In many other cultures – and not just Asian, African and

Islamic ones – men are not used to working with women. Nonetheless, in the business environment, a woman can

usually expect to be treated fairlyNonetheless (Part 2), this does not guarantee safety or

immunity from bias when out in public (shopping, etc.) Planning Ahead

Research the country’s perception of statusAnticipate (work twice as hard to be accepted)Be tolerantPrepare your team

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Cultural Landmines for Women

Women in Business North America Middle East Asia Latin America Europe Eastern Europe/Russia Africa

Maintaining Dignity and Stature

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ETIQUETTE

Proper Etiquette

When in Rome . . .

The Name Game

Research before you depart

Know are the conventions• Family name first• Double surnames (Hispanic)• Pre- or Suffixes

Be cognizant of hierarchies

Conversational Taboos

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ETIQUETTE

SocializingWork hard, play hardDining Adventures

Social Drinking ProtocolToastingChallengesLunchesTricks of the trade

Global Dress CodesKeep it simpleColoursAnticipate weather

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ETIQUETTE

International StylesUS casual can be very confusing

oObama styleoEntertainment and sports

France and Italy – style, style, style India – no leatherJapan – conservative, but high quality (labels)

Cultural QuirksWhere is the number 13 unlucky?How ‘bout #4?Family owned businesses (nepotism)Mumbai vs Bombay; Eire vs. Ireland

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ETIQUETTE

Dining Etiquette RulesIt’s always good to follow US protocols, which have mostly been adopted

from European models (esp. UK)Napkins

Place on lap only after all are seatedPlace on chair when one excuses him/herself

Wait for all to be served before starting to eatResist the urge to season food before testingForearms but not elbows on tableDon’t use knives or chopsticks as pointersSalads are oft served after the main course(s)Coffee is rarely served with the meal, but after dessert (or the cheese

course)

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ETIQUETTE

Dining Etiquette RulesA typical seven-course formal dinner

(Pre-meal drinks served in a separate room)Appetizer or “Starter” accompanied by light wine (rose’)Soup or bisqueFirst Course or Entrée (usually fish) w/white wineSecond Course or Entrée (usually meat or poultry) w/ redSalad CourseDesserts (selection) w/dessert wine (sweet)Cheese and fruit with coffee/tea and liqueurs

(followed by toasts and in some cases, smoking)

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And, when you’re through . . .

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