代写 UNSW MGMT5602 - Cross-Cultural Mngt

代写 UNSW MGMT5602 - Cross-Cultural Mngt

Dynamics of International Business: Asia-Pacific Business Cases – Ravinaki 11/01/2013 2:26 PM  Page 1 of 7 Losing touch with the context: The story of Ravinaki Resort in Fiji Sally Anne Gaunt Dan V. Caprar Australian School of Business, University of New South Wales The sun was setting opposite Ravinaki Resort on the island of Batiki situated in the centre of Fiji’s volcanic Lomaiviti Island group. Caroline Childs and her husband, Gerald, had just arrived from Sydney and were soaking up the atmosphere after a day and a half of travelling. Caroline was no stranger to Fiji, or to Ravinaki Resort. Eight years prior (in 2001), she had been the water sports manager at Ravinaki. The resort is home to an impressive Marine Eco System cherished by Scuba Divers and Snorkelers. It also offered Game fishing, seasonal surfing and kayaking. It was Caroline’s responsibility to ensure that tourists were able to take full advantage of the many wonders that the nearby reef offered, as well as ensuring the safety of visitors and staff whilst out on the water. Caroline had loved her time at Lomaiviti, hence she wished to show her husband the delights of Ravinaki, albeit now under new management. The Ravinaki Resort and its founders Ravinaki was the only resort on the island of Batiki. It was set up in 2000 by James Brennan and his wife Sarah, who started working on the island as part of a marine based NGO project. James, a marine biologist from the US, was responsible, along with a number of other marine biologists, for evaluating the health of the local Batiki reefs. Sarah, originally from England, had a background in hospitality, and was responsible for the project’s overall management including catering, logistics and sanitation. They were well suited to their roles but also developed other interests in the area. Given his background, James had been particularly impressed with the pristine coral reefs that surrounded the island of Batiki. The couple had dreamed of being able to combine their careers so they could both stay in the tropical paradise of Batiki, so when the NGO project ended in 1999, James and Sarah seized the opportunity to open Batiki’s first and only resort. They decided to target the more intrepid tourist who would not mind making the day and half trip from the closest international airport in Fiji’s capital, Suva, to reach their unspoilt paradise island. Moreover, due to both James and Sarah’s limited financial resources and the environmental issues presented by the island and its community, Ravinaki was unable to offer the luxury accommodation found in Fiji’s high traffic tourist destinations. Therefore, it had been important that, while emphasising the delights of Ravinaki’s unspoilt marine life, the resort’s marketing material also managed guests expectations, pointing out that Ravinaki was an 'eco resort' with no air-conditioning and limited electricity usage. Dynamics of International Business: Asia-Pacific Business Cases – Ravinaki 11/01/2013 2:26 PM  Page 2 of 7 The Ravinaki Resort under new management On her return to the resort, Caroline was curious about her experience as a tourist in a place she knew so well. Gerald, Caroline’s husband, was awe-struck by the spectacular sunset and the beauty of the surroundings and could see why Caroline had loved her time working in Fiji. Whilst admiring the spectacular sunset, the couple started chatting with Ross Griffiths, the resort’s new owner, and Gerald commented on the half finished deck at the entrance to the resort. Ross sighed and told Gerald how disappointed he was at the slow progress being made by the contracted Fijian workers, most of them coming from the local villages. “They go at two speeds, dead slow and stop. I don’t know when we are ever going to get it finished,” said Ross. This struck Caroline as a very inappropriate conversation to be having with a customer. Ross continued to complain: “I’ve brought over an ex-colleague of mine who is a civil engineer, he’s been helping me upgrade the resort but he’s really struggling with these Fijian workers. Mike and I write detailed instructions for the foreman, but half the time I don’t know why we bother as the instructions are never followed. I now have Mike watch over these Fijian guys so he can spot when they’re about to make a mistake. And everything takes so much time to achieve - we miss deadline after deadline, it’s really frustrating. We have tried increasing their pay and offering individual targets with an accompanying bonus, in the hope that they achieve them. We even offered promotion prospects, but none of these incentives work”. As she listened to the conversation, Caroline began to feel a wave of unease. The Fijians Ross was describing had been her colleagues, who were part of the effective and fun working team that had made her time at Ravinaki so rewarding. After the conversation ended, Caroline began to wonder what had happened. When did her former Fijian colleagues become problem workers? And why was working with them such a struggle? When Caroline had been working at the resort, the former owners James and Sarah were well respected by their Fijian staff. James had always allowed for ‘Fiji Time’ and did not expect projects to be completed as quickly as in other contexts; there was rarely been a problem with the staff meeting James’ expectations. Caroline wondered if Ross was not being realistic in his expectations or whether the workers simply did not respect him enough to work towards his expectations. Ross had visited Fiji for the first time 5 years ago, in 2004. At the time he owned a chain of electrical stores and was based in Toronto. It was Ross’s first trip outside North America and he fell in love with the Fiji island lifestyle. He had stayed on the Yasawa islands in Fiji’s north and decided that he would sell up his business in Canada and buy a resort in Fiji. This coincided with James and Sarah’s decision to return to the UK for family reasons. Ross felt Ravinaki had plenty of potential, especially as the currently challenging logistics involved in getting to Batiki were likely to improve, given continued improvements in Fiji’s infrastructure. Therefore, there was the potential for more flights between Levuka, the closest airport to Batiki, and the international airport based just outside Fiji’s Capitol Suva. Ross was unimpressed by the basic accommodation and immediately upgraded the resort’s rooms by including air conditioning from six in the evening onwards. He also doubled the rates of the rooms with ocean views. Dynamics of International Business: Asia-Pacific Business Cases – Ravinaki 11/01/2013 2:26 PM  Page 3 of 7 Prices continued to increase, as he made further upgrades to the resort, which clearly created a shift in the type of clients the resort could attract. Staff and culture at Ravinaki Resort over time After the conversation with Ross about his perception of the local workers, Caroline could not help but feel sense of unease. However, she was determined to enjoy her holiday. The next morning, when Caroline and her husband arrived for breakfast, Caroline was delighted to see that Malcolm, a previous colleague who had been in charge of Food and Beverage, was still working at the resort. Malcolm came from VitiLevu, Fiji’s main and largest island, and had worked in a couple of other large resorts in Fiji’s popular Denarau region. During Caroline’s time at the resort, James and Sarah had actively recruited as many Fijian staff as possible, including in management positions. However, it has proved extremely difficult to promote employees who had been recruited from the three most local villages. Lomaiviti’s remoteness meant that the communities still strongly adhered to a structured hierarchy, where the ruling Chief of each Fijian village had ultimate power, and employees felt uncomfortable giving directions to other staff from the same village, especially if they had strong connections to the Chief and his family. The Ravinaki resort owners soon realized that one way to combat this was to recruit well trained Fijian staff from the international resorts found in the high tourist traffic regions of Fiji, such as the Coral Coast and the Mamanuca Islands. These staff members could demand a higher salary, but the advantage was that they generally worked well with the local Fijian employees and caused relatively little friction. Malcolm was one such employee. Caroline, being from Australia, was an exception to James and Sarah’s recruitment strategy. It was nearly impossible to find a Fijian to manage the water sports division as the manager needed to be a qualified diving instructor, which required a certain level of education and training. Of course, there were many Fijians with the necessary level of education for becoming a diving instructor, but they lacked the professional training. Few would choose a profession in water sports, opting instead for careers in recognized professions such as banking, nursing, or I.T. Caroline had been selected on the basis of both her qualifications and experience. She held a Professional Association of Diving Instructors (PADI) certificate, had been working on an NGO project in the Mamanuca Islands, and had other similar positions in a number of South East Asian countries. She had developed an admiration for the country and its people. Whilst Caroline had been at the resort, Malcolm had always been a favourite with the guests. People loved his friendly and amusing style. However, having known him so well in her previous role, she soon sensed that Malcolm’s enthusiasm for his job had waned. Furthermore, as she looked around, she realized that many of Malcolm’s previous team members were no longer around. Caroline also observed that many of the new staff members now employed were quite obviously not Fijian. After breakfast, Caroline chatted with Malcolm, and asked him how he liked working with the new Canadian owners. Malcolm looked towards the floor and shook his head. “I’m no longer Manager of Food and Beverage” he said. Apparently, there was a need to upgrade the restaurant to cater for a more upmarket clientele, so the management brought in a new chef from Brazil. Dynamics of International Business: Asia-Pacific Business Cases – Ravinaki 11/01/2013 2:26 PM  Page 4 of 7 “Fernando is a brilliant chef but he has upset everyone. Nothing we do is good enough. He is always shouting at us. He says we don’t even know the basics of cooking. But you know that this is not true, it’s just that we have not been taught in the same way as he has. He gives us an order but doesn’t tell us how to do things, and then yells at us when we don’t do things the way he wants them done. It’s as if he thinks we’re telepathic and can read his mind, but we cannot. Everyone is unhappy and looking for new jobs.” Malcolm left to get back to the kitchen, concerned that, if he stayed any longer, he would be reprimanded by Fernando for loitering. Caroline sighed, and could not help but reflect on how Ravinaki had changed from being a well run and successful resort eight years previously, to the current situation where even the guests seemed less relaxed, as if they could sense the stern atmosphere of discontent. When she had been recruited, her new employers (James and Sarah Brennan) had told her that this was a ‘hands on’ organization. “We can’t afford to carry anyone and everyone needs to be flexible and, at times, share in the mundane tasks such as carrying and fetching supplies.” James would often say “you have to lead from the front, and do your fair share of the physical work”. Caroline distinctly remembered that every time supplies needed to be unloaded after their weekly arrival from Suva, it was always James, who, despite being the owner, had been at the front of the unloading chain. It was James who set the pace to ensure everything was unloaded as quickly as possible and it was Sarah who spent time in the kitchen both helping and advising on the menu and food preparation. Caroline herself had always made sure she actively helped to pack the boat each morning which included loading diving equipment and tanks. It really was a 'hands on' organisation! After the conversation with Malcolm, Caroline and her husband ambled down to the water sports centre to decide when they would venture out to the reef. The manager was Ross’s nephew, Sam, who was 25 years old and this was his first time overseas. He started the procedure for the day, making sure that all the guests signed the various forms required by the resort, before they could set out for the day’s activities. Caroline looked at the list of diving and snorkelling locations and quickly realised that some of the most popular sites during her time at Ravinaki were no longer available. She asked Sam why this was the case. “Oh, we are in the process of suing some of the local Chiefs because they have told us that we cannot go to these spots unless we pay them for the privilege” he said. “My uncle says that he does not do business in this way and has brought in a lawyer. In the meantime it’s too problematic to go there,” Sam commented. He then added “I’m relieved quite frankly, as some of the sites are quite treacherous and I’m still trying to become familiar with the place.” Caroline asked Sam why he didn’t use the local Fijian guides who knew these waters so well. “My Uncle says the guests prefer to deal with expats when it comes to water activities, as they feel safer,” came the reply. Caroline found this to be a very strange decision as she would never dream of taking guests out without the expert experience of the local Fijian guides who knew the reefs so well. She certainly couldn’t recall any guest complaining about this before. She also thought it was absurd to try and sue a local Lomaiviti Chief and could not see what this would ever achieve. Lomaiviti’s remoteness meant the local Chiefs had tremendous power. Whilst Caroline had Dynamics of International Business: Asia-Pacific Business Cases – Ravinaki 11/01/2013 2:26 PM  Page 5 of 7 been at Ravinaki, she, and the resort owners, had spent many evenings drinking Kava with the Chiefs to ensure relationships were strong. Lessons of the past and struggles of the present at Ravinaki Resort After the conversation with Sam Caroline stared at the ocean and once again found herself reflecting on James and Sarah's approach to dealing with the local employees. Both James and Sarah motivated the staff by maintaining good relationships. They had found that trying to engage the staff from the local villages with individual rewards and bonuses was pointless. Employees were uncomfortable with competitiveness within their close-knit communities. Recognising this, Ravinaki, under James and Sarah, set simple group targets, such as increasing the number of people going on snorkelling tours, or increasing the guest list overall. If these targets were achieved, Ravinaki would pay for development projects in the villages, such as the upgrade of the school, church or community centre. Ravinaki was careful when implementing these incentives, as it was easy for money to disappear, leaving a project unfinished. Ultimately, Ravinaki’s directors would buy the materials and expertise rather than giving bulk sums of money. Such projects were not only a more successful way of incentivising Ravinaki’s local staff but it also helped cement relationships with the local Chiefs. Without the co-operation of the local communities, especially the Chiefs, the functional running of the resort would have become very challenging. If the Chiefs where unhappy with the resort, the employees from these local villages would have torn loyalties and often the loyalty to the Chief would come before their job at Ravinaki. Caroline felt that suing a local Chief was burning a bridge with a vital resort stakeholder, and wondered how the relationship could ever be restored. Even if the resort won, given the legal context of Fiji, there could be no forgone conclusion, and it would be impossible to monitor the outcome. Caroline found herself reflecting on other aspects of her former time as a staff member at Ravinaki. It was evident that the resort was now far from full and, although guests were paying more for their accommodation, the number of visitors taking diving, kayaking and snorkelling tours had dropped significantly. Caroline, in her time at the resort, had actively encouraged guests who did not dive to try a ‘Discover Scuba’ session, which often lead them to want to take a full diving course. According to the records, there had not been one ‘Discover Scuba’ offered in the last twelve months. Caroline was astonished to see such a decline in what had once been an important revenue stream. The future of Ravinaki Resort: What next? It seemed to Caroline that increasing guest numbers and guest spending whilst at the resort, were fundamental to the future survival of Ravinaki, and Caroline was concerned that both these vital elements were quickly diminishing. She felt it was important not to romanticize her previous experience, as there had been problems, but the solutions had been found through dialogue, relationships and negotiation, and not through suing, especially given Fiji’s rather fragile legal system. She was wondering why the new management made such choices that were clearly not helpful (and destroying what was the good standing of the resort within the community). She understood the resort was keen to attract a more lucrative upmarket clientele, Dynamics of International Business: Asia-Pacific Business Cases – Ravinaki 11/01/2013 2:26 PM  Page 6 of 7 which has the potential for greater profitability and therefore they needed to change. However, she was struggling with the decisions the new owners were making and was wondering what could be done in order to address the current situation. Figure 1. Map of Fiji and Lomaiviti Group area Questions 1. What are the key differences in the leadership of the resort under previous and current ownership? How is this impacting on the motivation of the employees, and the business in general? 2. Who are the key stakeholders of Ravinaki Resort? Compare approaches undertaken by the previous and current owners in managing relationships with these key stakeholders. How important an issue is this in doing business across cultures? 3. What is your opinion of the practice of making payments to local Chiefs in order to obtain access to certain reef spots? What are the implications of making, or not making, such payments? 4. What recommendations would you make to the owner of the resort in order to address the current situation at Ravinaki Resort? Draft strategies that you think might turn the business around to be a success.

代写 UNSW MGMT5602 - Cross-Cultural Mngt

  References Dynamics of International Business: Asia-Pacific Business Cases – Ravinaki 11/01/2013 2:26 PM  Page 7 of 7  Chen, M., & Miller, D. (2011). The Relational Perspective as a Business Mindset: Managerial Implications for East and West. Academy of Management Perspectives, 25(3), 6-18.  de Vries, R. E., Pathak, R. D., & Paquin, A. R. (2011). The paradox of power sharing: Participative charismatic leaders have subordinates with more instead of less need for leadership. European Journal of Work & Organizational Psychology, 20(6), 779-804.  Farrelly, T. (2011). Indigenous and democratic decision-making: issues from community-based ecotourism in the Bouma National Heritage Park, Fiji. Journal of Sustainable Tourism, 19(7), 817-835.  Javidan, M., Dorfman, P. W., De Luque, M., & House, R. J. (2006). In the Eye of the Beholder: Cross Cultural Lessons in Leadership from Project GLOBE. Academy Of Management Perspectives, 20(1), 67-90.  Earley, P., & Mosakowski, E. (2004). Cultural Intelligence. Harvard Business Review, 82(10), 139-146.  Sanchez, J. I., Spector, P. E., & Cooper, C. L. (2000). Adapting to a boundaryless world: A developmental expatriate model. Academy of Management Executive, 14(2), 96-106. Biography Sally Anne Gaunt has a Masters Degree in Asian Studies from the University of New South Wales, (UNSW) Australia. She lectures in the undergraduate Cross Cultural Management course in the Australian School of Business at UNSW. Although born in the UK, Sally Anne spent many years working in Asia and has extensive insight into and practical experience of working with different cultures. She runs a successful training company in Australia, offering cultural awareness programs to both Australian government and private organizations. Dan V. Caprar obtained his MBA and PhD from the University of Iowa. He is a Lecturer at the Australian School of Business, University of New South Wales. Dan’s research focuses on the interplay between self-leadership, identity, and culture. He teaches cross-cultural management at UNSW and leadership for the Australian Graduate School of Management in Hong Kong. Dan was born in Romania, spent several years in the US, and lives now in Australia. He has extensive experience in working across many cultures.

代写 UNSW MGMT5602 - Cross-Cultural Mngt