Question: Do you think requiring everyone in a multinational firm (MNC) to carry around a card with the firm’s core values on it can change a company’s culture? Why or why not? Trying to Change the CorporateCulture of a MultinationalEnterprise: General SemiconductorClosing CaseWThe first step Ostertag took toward changing GeneralSemiconductor's corporate culture was to replace nearlyevery member of the company's senior managementteam. Job insecurity rapidly spread throughout the ranks."I realized we needed to do something to develop a senseof teamwork," says Ostertag suggesting that laying peopleoff was not enough. "We needed to develop a culture ofmutual respect that fostered cooperation and innovation."When Ronald Ostertag took over themanagement of General Semiconduc-tor, he realized quickly that he wouldhave to change the $500 million com-pany's culture for the firm to survive.However, changing General Semiconductor's culturewas a significant challenge because the New York-basedmanufacturer of electronics parts had 60,000 workersaround the world who spoke five different languages.Only 200 of those workers were employed in the UnitedStates. Its facilities outside the United States were inChina, France, Germany, Ireland, and Taiwan.After taking over as CEO, Ostertag decided to sched-ule a team-building meeting in which the newmanagement team would decide on the company's guid-ing principles. "Our task," he says in retrospect, "was toput down on paper what our core values were and thenmake sure everyone was on the same page." A cohesivemission statement and a list of eight company values,which are called General Semiconductor's "culturepoints," came out of that meeting and were centeredaround goals like "quality," "integrity," "good customerservice," and "on-time delivery."Soon, everyone in the company knew the culturepoints and even carried them around on small cards. "Theyknew when they saw me coming, whether it was in thefactory in Taiwan or Ireland or here, that I might come up toanyone and ask them to rattle off four or five of those val-ues," says Ostertag. "I didn't mean it as a test, but more toshow that that is what everyone here is striving for."Unfortunately, Ostertag's changes did not occurquickly enough for General Semiconductor to fend off ahostile takeover. Believing that more improvementscould be made and greater value extracted from GeneralSemiconductor, Vishay Intertechnology purchased thecompany in 2001. Today, General Semiconductor is asubsidiary of the Pennsylvania-based firm. Vishay Inter-technology has grown considerably and broadened itsproduct line through acquisitions. It also has a globalpresence with manufacturing facilities in six Asian coun-tries, including China; Europe; Israel; and the UnitedStates; and sales offices in many other countries aroundthe globe. Vishay uses the international expertise indeveloping new technologies. This is exemplified in thecontinued success of the subsidiary now named VishayGeneral Semiconductor LLC which had two patentsissued in May. These new technologies were developedby researchers working in the unit's R&D labs in Tianjin,China and Taipei, Taiwan.Questions1. In your opinion, what actions taken by Ostertagstood the most chance of changing GeneralSemiconductor's culture?2. Do you think requiring everyone in a multinationalfirm to carry around a card with the firm's core val-ues on it can change a company's culture? Why orwhy not?3. In your opinion, was Ostertag managing the cross-cultural operations effectively in the process of try-ing to change the firm's culture? Explain.4. Did Ostertag appear to have a global mind-set?Why or why not?Sources: S. Chin, "Vishay Finally Gets General Semi," EBN,August 6, 2001, le; C. L. Cole, "Optimas 2001-Global OutlookEight Values Bring Unity to a Worldwide Company," Workforce,March 2001, 44-45; Company Web site, http://www.vishay.com,accessed May 20, 2010; "Patent No. 7,719,096 Issued on May 18,Assigned to Vishay General Semiconductor for SemiconductorDevice, Manufacturing Method," U.S. Federal News Service, May20, 2010, http://www.highbeam.com; "Patent No. D616,387 Issuedon May 25, Assigned to Vishay General Semiconductor,Ornamental Design for Bridge Rectifier Package," U.S. FederalNews Service, May 26, 2010, http://www.highbeam.com.

Question

Question: Do you think requiring everyone in a multinational firm (MNC) to carry around a card with the firm’s core values on it can change a company’s culture? Why or why not? Trying to Change the CorporateCulture of a MultinationalEnterprise: General SemiconductorClosing CaseWThe first step Ostertag took toward changing GeneralSemiconductor's corporate culture was to replace nearlyevery member of the company's senior managementteam. Job insecurity rapidly spread throughout the ranks.&#34;I realized we needed to do something to develop a senseof teamwork,&#34; says Ostertag suggesting that laying peopleoff was not enough. &#34;We needed to develop a culture ofmutual respect that fostered cooperation and innovation.&#34;When Ronald Ostertag took over themanagement of General Semiconduc-tor, he realized quickly that he wouldhave to change the $500 million com-pany's culture for the firm to survive.However, changing General Semiconductor's culturewas a significant challenge because the New York-basedmanufacturer of electronics parts had 60,000 workersaround the world who spoke five different languages.Only 200 of those workers were employed in the UnitedStates. Its facilities outside the United States were inChina, France, Germany, Ireland, and Taiwan.After taking over as CEO, Ostertag decided to sched-ule a team-building meeting in which the newmanagement team would decide on the company's guid-ing principles. &#34;Our task,&#34; he says in retrospect, &#34;was toput down on paper what our core values were and thenmake sure everyone was on the same page.&#34; A cohesivemission statement and a list of eight company values,which are called General Semiconductor's &#34;culturepoints,&#34; came out of that meeting and were centeredaround goals like &#34;quality,&#34; &#34;integrity,&#34; &#34;good customerservice,&#34; and &#34;on-time delivery.&#34;Soon, everyone in the company knew the culturepoints and even carried them around on small cards. &#34;Theyknew when they saw me coming, whether it was in thefactory in Taiwan or Ireland or here, that I might come up toanyone and ask them to rattle off four or five of those val-ues,&#34; says Ostertag. &#34;I didn't mean it as a test, but more toshow that that is what everyone here is striving for.&#34;Unfortunately, Ostertag's changes did not occurquickly enough for General Semiconductor to fend off ahostile takeover. Believing that more improvementscould be made and greater value extracted from GeneralSemiconductor, Vishay Intertechnology purchased thecompany in 2001. Today, General Semiconductor is asubsidiary of the Pennsylvania-based firm. Vishay Inter-technology has grown considerably and broadened itsproduct line through acquisitions. It also has a globalpresence with manufacturing facilities in six Asian coun-tries, including China; Europe; Israel; and the UnitedStates; and sales offices in many other countries aroundthe globe. Vishay uses the international expertise indeveloping new technologies. This is exemplified in thecontinued success of the subsidiary now named VishayGeneral Semiconductor LLC which had two patentsissued in May. These new technologies were developedby researchers working in the unit's R&D labs in Tianjin,China and Taipei, Taiwan.Questions1. In your opinion, what actions taken by Ostertagstood the most chance of changing GeneralSemiconductor's culture?2. Do you think requiring everyone in a multinationalfirm to carry around a card with the firm's core val-ues on it can change a company's culture? Why orwhy not?3. In your opinion, was Ostertag managing the cross-cultural operations effectively in the process of try-ing to change the firm's culture? Explain.4. Did Ostertag appear to have a global mind-set?Why or why not?Sources: S. Chin, &#34;Vishay Finally Gets General Semi,&#34; EBN,August 6, 2001, le; C. L. Cole, &#34;Optimas 2001-Global OutlookEight Values Bring Unity to a Worldwide Company,&#34; Workforce,March 2001, 44-45; Company Web site, http://www.vishay.com,accessed May 20, 2010; &#34;Patent No. 7,719,096 Issued on May 18,Assigned to Vishay General Semiconductor for SemiconductorDevice, Manufacturing Method,&#34; U.S. Federal News Service, May20, 2010, http://www.highbeam.com; &#34;Patent No. D616,387 Issuedon May 25, Assigned to Vishay General Semiconductor,Ornamental Design for Bridge Rectifier Package,&#34; U.S. FederalNews Service, May 26, 2010, http://www.highbeam.com.

Accepted Answer

Core values are essential ideas and concepts that govern and influence the behaviour, decisions, and…