Comparative Business Systems (mini-case bundle) - House of Cards – Daewoo (B)

Published 01 Jan 2003
Reference 5082
Topic Strategy
Region Global
Summary

This bundle of mini-cases illustrates the features of institutional theory: regulative processes, enforced obligations and expectations, and cultural values. The authors see the extreme conservatism of potential Japanese investors, relationship building in the Korean chaebol, the placement of Japanese societal needs over breakthrough innovation, and job security in Germany and Japan.

Teaching objectives

Have students recognize the need for more than financial analysis and the need to include institutional due diligence. Without an appreciation of local values, a foreign entry can stumble badly (Merrill Lynch). Knowledge of relationships helps understand the strategy of potential partners or competitors (House of Cards). Reward systems reflect potential innovation/competitiveness (Pain without Gain) and employment policies reveal potential labor problems (Keeping Busy).

Keywords
  • Business Systems
  • Comparative
  • Institutions
  • Economic Culture
  • Innovation
  • Market Entry
  • Employment Competitiveness
  • Employment
  • International Marketing