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Global Multi-Products Chile. Innovation Strategies Cross-Border Implications. What is Multi-products' strategy ? What specific systems or programs is it using to implement this strategy? What environmental changes have taken place in Chile ?
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Global Multi-Products Chile Innovation Strategies Cross-Border Implications
What is Multi-products' strategy? • What specific systems or programs is it using to implement this strategy? • What environmental changes have taken place in Chile? • What internal changes have been made at Multi-products Chile? • What were the barriers to change? How did they operate as barriers?
A strategy is the specific means by which an organization will meet its objectives. What is the innovation strategy being implemented at GMP Chile? STRATEGY?
New Market Conditions? Old Market Conditions? Internal changes? Multi Products Chile: Changes
Changes in Chile: • New competition • New ways of operating • Increased sophistication of customers • Distributor changes Organizational changes: • Empowerment councils • Teams & teamwork • Reward system • Sales rep roles & skills • New positions (IS managers, key account leaders) Barriers: • Product groups • Distributor based selling • Hierarchy • Management attitudes • Rewards • Culture, politics, isolation Desired State: • Key Accounts • Integrated Solutions • Increased Profit Change Process WHY SO DIFFICULT?
FOREIGN DIVISION HQ Replicate or Adapt? Don’t change & train Adapt & learn Putting global strategies into practice is difficult! Must understand company’s (home country) strategy and management systems AND history and culture of host country if strategy and systems are to be implemented. GLOBALIZATION
A Brief History of Human Rights Violations in Chile Professor Harry Lane Northeastern University, Boston
1970 wins election and forms a left wing “Marxist’ government • “Reforms” • Banking, insurance, communications, textiles and copper were nationalized • Hostility by local business groups and USA • Capital flight • Inflation was 300% in 1973; cost of living increased 647% in 1972 • Anti-government strikes in 1972 and 1973 Salvadore Allende
Coup d’etat Sept. 11, 1973 • Military rule 1973–1990 • 130,000 arrests • 7,000 people held in national football stadium • torture • 30,000 exiles in Western Europe • 3000 people killed or missing (los desaparecidos) • Economic stability • 1990 – civilian government followed by a period of peace and prosperity Augusto Pinochet
Pros Returned property Economic stability Peaceful transition to civilian government Model economy of Latin America Cons Human rights record 3,000+ dead or missing “We live in a strong, safe Chile. I think if you look at the result of what my father did, you will understand that he did what had to be done.” Lucia Pinochet “The damage he has done to this country is too great for his retirement to heal. Our scars are too great. Luisa Toledo, mother of 3 victims of execution Pinochet’s legacy
Chile: Tradition of Democracy • Effects of Pinochet’s Dictatorship • Chile’s New Democracy The Evolution of Chile: Prosperity for Some
Cultural DifferencesCanada and Chile Implications for team work, bonus systems, and empowerment?