Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Mode of Entry Analysis (Question 3)
o Discussion of Yellowstone’s mode of entry strategy in Ukraine and France
o Benefits and risks stated in all cases for each mode in each country
§ Information for the case must be used to support the discussion
o Alternative strategy stated with justification from the case for entry into each
country

in Southern Mexico. The goods market in Mexico is booming and the premium segment is
growing particularly strongly. With production in Mexico, Yellowstone wants to have a basis for
further growth in the region. Starting in 2024, Yellowstone's competitor 6666 produces in its
own plant in Mexico. These moves are certainly to circumvent the high tariffs on imported cars
and take advantage of the tax incentives given by Mexico for such investments. Production
Together with Duttin Production will take place in a Crispies brand production plant but
Yellowstone will invest in a specific production line for its products. Yellowstone also intends to
buy locally. Up to 35% of the imputs for the A3 should come from Mexico. To achieve this
objective, Yellowstone has started to build up relationships with Mexican suppliers. Yellowstone:
Human Resource Management Strategy Yellowstone finally came up with a novel solution that
was consistent with Yellowstone's philosophy of building on its internal resources. Aware that
declining growth is often a signal of complacency that can go unnoticed by people close to the
situation, it decided to bring together a team of Asian managers who would visit and examine
Yellowstone's operations in the UK. As Yellowstone in-siders, they would be familiar with the
company's mission, values, processes, and procedures and thus would be able to feel at home in
the store context; as outsiders in the UK, they could see things differently from the British
managers, thereby bringing valuable home-country insights and sharing best practices that had
evolved in their local markets. The project, "The Essence of Yellowstone," had a two-pronged
strategic purpose: (1) to determine what was and wasn't working by conducting a health-check
of Yellowstone UK's current corporate state; and (2) to compare and contrast that state with what
had evolved in Yellowstone's Asian subsidiaries so as to learn from and leverage them globally.
Yellowstone chose nine managers from six of its Asian subsidiaries: two each from Thailand,
South Korea, and China-its largest Asian markets and one each from Malaysia, Japan, and
India. It brought this Asian project team to the UK; trained its members in skills needed to
observe and make sense of organizational behavior, values, and assumptions (a kind of corporate
ethnography); and deployed them for a three-month period to observe and work in 52 stores
across the UK and Ukraine. The task of helping Yellowstone reinvigorate home operations was
not easy; nor was it easy to find nine managers who could leave their jobs for an extended three-
month period. In the end, the main criteria stipulated that team members had to have worked for
Yellowstone for at least three years, have a working knowledge of English, and be store-level
employees rather than country-level managers. The team was also assessed on various cultural
adaptability skills needed to get by in a foreign environment, such as flexibility and openness,
emotional resilience, and personal autonomy. Three of the project team members were
completely bilingual, having lived extensively in English-speaking environments; in fact, one
had actually studied in England and thus had a deep cultural knowledge of the UK. These three
proved helpful to the team, especially with such practical things as opening bank accounts,
navigating the public transportation system, setting up mobile phone contacts, shopping, and the
like. The others had varying degrees of cross-cultural exposure and competencies in the English
language. All were from collectivist, high-context cultures, a fact that allowed teamwork to
emerge quite naturally and ensured that the team would pay attention to unarticulated details―
factors that proved invaluable for seeing things in the stores that others from low-context
countries might not notice. Team members' natural perceptual ability helped ensure that they
would be able to act as organizational bridges between their home subsidiaries and Yellowstone
UK. This journey of nine Asian Yellowstone managers across the United Kingdom took place at
a time when many British cities were shaken by riots and store looting. Still, the team compiled
many pages of observations to use in creating their analysis. Their exposure to British culture
was intense on many levels. Two of them were locked in a Liverpool store during a riot and,
though frightened, were impressed by the store managers' calm manner to handle the situation.
The day-to-day experiences, though less exciting, were also very informative and gave rise to
many comparisons and contrasts in implementing such core company values as customer focus
in the UK and the home countries.
3. Yellowstone utilized various international entry mode strategies in Ukraine and France. a. Discuss
each strategy used in each country. j. You are also required to discuss the benefits and risks of the
strategies included. b. What international entry mode would you suggest apart from the one (s) being
utilized in the Ukrainian and French market?
(Ctrl)▾
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Transcribed Image Text:in Southern Mexico. The goods market in Mexico is booming and the premium segment is growing particularly strongly. With production in Mexico, Yellowstone wants to have a basis for further growth in the region. Starting in 2024, Yellowstone's competitor 6666 produces in its own plant in Mexico. These moves are certainly to circumvent the high tariffs on imported cars and take advantage of the tax incentives given by Mexico for such investments. Production Together with Duttin Production will take place in a Crispies brand production plant but Yellowstone will invest in a specific production line for its products. Yellowstone also intends to buy locally. Up to 35% of the imputs for the A3 should come from Mexico. To achieve this objective, Yellowstone has started to build up relationships with Mexican suppliers. Yellowstone: Human Resource Management Strategy Yellowstone finally came up with a novel solution that was consistent with Yellowstone's philosophy of building on its internal resources. Aware that declining growth is often a signal of complacency that can go unnoticed by people close to the situation, it decided to bring together a team of Asian managers who would visit and examine Yellowstone's operations in the UK. As Yellowstone in-siders, they would be familiar with the company's mission, values, processes, and procedures and thus would be able to feel at home in the store context; as outsiders in the UK, they could see things differently from the British managers, thereby bringing valuable home-country insights and sharing best practices that had evolved in their local markets. The project, "The Essence of Yellowstone," had a two-pronged strategic purpose: (1) to determine what was and wasn't working by conducting a health-check of Yellowstone UK's current corporate state; and (2) to compare and contrast that state with what had evolved in Yellowstone's Asian subsidiaries so as to learn from and leverage them globally. Yellowstone chose nine managers from six of its Asian subsidiaries: two each from Thailand, South Korea, and China-its largest Asian markets and one each from Malaysia, Japan, and India. It brought this Asian project team to the UK; trained its members in skills needed to observe and make sense of organizational behavior, values, and assumptions (a kind of corporate ethnography); and deployed them for a three-month period to observe and work in 52 stores across the UK and Ukraine. The task of helping Yellowstone reinvigorate home operations was not easy; nor was it easy to find nine managers who could leave their jobs for an extended three- month period. In the end, the main criteria stipulated that team members had to have worked for Yellowstone for at least three years, have a working knowledge of English, and be store-level employees rather than country-level managers. The team was also assessed on various cultural adaptability skills needed to get by in a foreign environment, such as flexibility and openness, emotional resilience, and personal autonomy. Three of the project team members were completely bilingual, having lived extensively in English-speaking environments; in fact, one had actually studied in England and thus had a deep cultural knowledge of the UK. These three proved helpful to the team, especially with such practical things as opening bank accounts, navigating the public transportation system, setting up mobile phone contacts, shopping, and the like. The others had varying degrees of cross-cultural exposure and competencies in the English language. All were from collectivist, high-context cultures, a fact that allowed teamwork to emerge quite naturally and ensured that the team would pay attention to unarticulated details― factors that proved invaluable for seeing things in the stores that others from low-context countries might not notice. Team members' natural perceptual ability helped ensure that they would be able to act as organizational bridges between their home subsidiaries and Yellowstone UK. This journey of nine Asian Yellowstone managers across the United Kingdom took place at a time when many British cities were shaken by riots and store looting. Still, the team compiled many pages of observations to use in creating their analysis. Their exposure to British culture was intense on many levels. Two of them were locked in a Liverpool store during a riot and, though frightened, were impressed by the store managers' calm manner to handle the situation. The day-to-day experiences, though less exciting, were also very informative and gave rise to many comparisons and contrasts in implementing such core company values as customer focus in the UK and the home countries. 3. Yellowstone utilized various international entry mode strategies in Ukraine and France. a. Discuss each strategy used in each country. j. You are also required to discuss the benefits and risks of the strategies included. b. What international entry mode would you suggest apart from the one (s) being utilized in the Ukrainian and French market? (Ctrl)▾
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