Case 16-1
Summary
Sand by Saya is a New York based brand that sells flip-flops in nine countries and online. The business
employs two full-time employees and two part-time employees. The CEO, Sayaka Fukuda, directs every
aspect of the business, and when the business grew, Fukuda decided to offshore the business to a Chinese
factory.
Fukuda now had to find a manufacturer that could be utilized to meet needs, however, because so much
time had already elapsed, she was forced to make an immediate decision on whether or not to go with the
one factory that could deliver the products on time in Bangladesh. She chose to go with this factory, even
though she knew the workmanship was not as good as the previous factory. However, the products were
now delivered directly to the consumer, and not to the company for a preproduction inspection. This led
to many customers returning the sandals, impacting their brand image.
Analysis
There are multiple layers to this case, including potential misrepresentation, and also barriers in
conducting international business. First, in relation to the specific content from this chapter, cross-cultural
barriers exist based on communication. Fukuda probably believed that the sandals would be delivered at
the same quality as the samples, however, that was not clearly stated. Also, the shipping directly to the
consumer was assumed and not explicitly stated.
Questions
1. Sand by Saya is a small five person New York based business yet has gone global. Describe their
global operation and the underlying reasoning behind going global. (3rd Ed., Chapter 16, pp. 6–9)
There are many reasons why business continue to globalize. They include the need to increase business,
2. What is the current stage of corporate globalization of Sand by Saya? (3rd Ed., Chapter 16, pp. 12–
14)
There are four stages of corporate globalization. (1) Domestic: Firms have a one-country market and
serve primarily one set of customers. (2) International: New firms enter the company’s markets, causing
the firm to also search for new markets. Generally, the company will enter only a few other countries’
3. How might international ethics apply in this case between the Sayaka and her employees? Between
Sayaka and her Bangladesh supplier? (3rd Ed., Chapter 16, p. 19)
Ethics are based on societal values, principles, and beliefs. This creates some issues for businesses
operating in multiple countries. Different countries’ cultures have different values and beliefs and
therefore will have different ethics—at least to some extent—as what is considered ethical in one country
may not be considered ethical in another country. Whose ethical perception should be followed in
situations where the values in conflict? The answer to the above question should be found in the company
4. How might cultural differences apply in this case between the Sayaka and her employees? Between
Sayaka and her Bangladesh supplier? (3rd Ed., Chapter 16, pp. 19–25)
Employees from different countries do not see the world in quite the same way because they come from
different national cultures. Understanding national culture is important because it affects nearly every
aspect of human behavior, making cultural sensitivity, and important skill. For the MNC, all the
5. Explain Sayuka’s choice of staff using home, host of third country employees. Does her choice seem
to be polycentric, geocentric, or ethnocentric? (3rd Ed., Chapter 16, p. 29)
Source of staff are derived from three generic options, each of which may be the best in some
circumstances. Parent- (home-) country nationals are people who work for the organization in the country
6. Sayuka used to import sandals and embellishments from factories in China and assembled them in its
New York office yet later on offshored manufacturing first to China and later to Bangladesh. What
are the pros and cons of offshoring this type of work? (3rd Ed., Chapter 16, p. 30)
Outsourcing is one way in which organizations can manage work without creating a direct international
subsidiary and therefore hiring new employees. Outsourcing is the process of hiring another organization
7. What type of training might you recommend for Sayaka and her staff and why?
With increasing globalization and workforce mobility, it is not surprising that Sayaka’s staff is comprised
of expatriates. An expatriate is an employee who leaves their home country to go work in another
8. What are some global trends that may impact Sand by Saya’s human resources policies and
operations? (3rd Ed., Chapter 16, pp. 45–46)
Globalization of production of both goods and services continues to move forward, despite current
rhetoric by country governments to restrict trade and move more toward protectionist trade policies.
Evidence is also strong that some developed countries are retrenching a bit when it comes to international
Case 16-2
Summary
Jurong Point Shopping Centre (known mostly as “Jurong Point”) in Singapore, is located in the Western
part of Singapore, housing about 450 retailers and is considered the largest retailer in Singapore. Jointly
owned by Guthrie GTS Limited and Lee Kim Tah Limited, Jurong Point is preparing to expand to remain
one of the largest shopping malls, as Singapore is planning to expand and develop as many as 13 new
malls between 2014 and 2017. Jurong Point must continue to grow and develop to remain the leader in
Singapore.
Analysis
The Jurong Point case study explains their competitive strategy in the face of massive growth and
development in Singapore. Jurong Point takes a very proactive approach in creating their organizational
culture and ensuring that employees are not only appropriately trained and developed but also culturally
competent.
Questions
1. Taubman Centers Inc. (TCO) is the owner, manager, and/or leaser of regional, superregional, and
outlet shopping centers in the United States and Asia. They are looking to extend their expertise to
booming markets in China and South Korea. Assuming they wanted to break into the Singapore
market, what international expansion strategies might they have relative to Jurong Point?
There are many strategies that Taubman can use to saturate the Singapore Market. One choice for
becoming involved internationally is to engage in licensing agreements. Here, a domestic firm will
2. Assuming Taubman was to purchase Jurong Point, what legal and cultural issues must they address in
order to facilitate a smooth ownership transition?
Taubman has to understand the legal issues of the company in order to make sure they are complying with
the laws of Singapore. First of all, there are many employment laws that may be in effect for that country.
3. Given your answer to Question 2, what global staffing issues would Taubman have to immediately
address? Longer term issues?
Global staffing issues deal with:
a. whether to use home or host employees
b. developing a recruitment and selection process that fits the host country
4. Human Resources play a critical role in Jurong Point’s competitive strategy. What HR functions does
the small HR staff focus on? Why?
The case implies that Jurong Point’s competitive strategy is to provide a quality shopping experience—a
differentiation strategy. A differentiation strategy adds value to the product or service; for Jurong and its
5. Jurong Point’s HR staff outsources some of its functions to its tenants. What are those functions and
how does this HR strategy fit Jurong Point’s generic strategy?
Outsourcing allows organizations to access either lower costs goods and services or greater expertise that
adds value to the firm’s product or service. Jurong Point, in order to provide quality training to its mall
6. Organizational culture seems to be a distinctive competency for Jurong Point. What is their culture
and what HR policies nurture that culture? How might this culture change if acquired by Taubman?
Jurong Point’s wants to provide a WOW experience for their shoppers and therefore has developed an
organizational culture that parallels that experience for their employees as well. Through integration and