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International Business

notes attitudes towards fundamentals of life such as time, money, productivity and achievement, all of
which can differ widely across countries and lead to situations of differing expectations between
the management in the home office and local employees of subsidiaries and affiliates.
While some socio-cultural differences are obvious, others are relatively subtle, though equally
important. It is often difficult for an international manager to catch on these subtle differences if
he or she has not lived or worked in cultures other than that of the home country.
MNCs have realised, sometimes through costly blunders, that socio-cultural factors are vital
ingredients that make up the overall business environment and that it is essential to appreciate
these differences and how they influence the business before an attempt is made to set up an
operation in a host country.

Notes Society and culture influence every aspect of overseas business of an MNC
and successful MNC operations – whether it is marketing, finance, production, or person-
nel – have to be acutely aware of the predominant attitudes, feelings and opinions in the
local environment.



Case Study seventh Heaven

f there is one thing William H. Pinckney, Managing Director and CEO, Amway India,
has mastered during his seven year stay in India, it’s the art of breaking the coconut
Iin one go. He has had enough practice at the opening of every new branch office and
during the annual Diwali puja in office, which is an Indian tradition followed religiously
at Amway.

From wearing a kurta pyjama, to eating local food, Pinckney has taken to India and things
Indian. Even his office has shades of Indian influences, including a bronze Ganesh statue.
“My wife and I had always talked about an adventure and to us, India was the ultimate
adventure,” says Pinckney.
The Pinckney affair with 1ndia started in late 1997, when Amway sent them for a typical
look-see, to decide whether they could contemplate living here for some two-odd years.
They spent a week in Delhi just ‘getting a feel for living in the capital city’. “Before I came
here, I had heard a lot of stories, and none of them were good.” What didn’t help matters,
was the number of vaccinations he had to take before coming to India. “I had never had
as many shots in my life before,” says the only expatriate on the rolls of ` 600-crore Indian
operations of Amway.
Cleanliness and health were two issues; the Pinckney’s were concerned about. But, to their
immense relief, it turned out to be far better. “We have not taken any malaria pills in the last
five years.” People were the first thing Pinckney noticed on his arrival to India. “In Sydney,
you don’t find people on the roads, just outside the city. Here, they are everywhere.”
What has impressed him most about Indians, is the level of education, dedication and
commitment, which he says, is ‘the best and the highest in the world’.
Professionally, the HR aspect of working in India has been most interesting, ‘a learning
curve’ for him. “Coming out of the West, one was used to giving direct feedback. But in
India, you have to be very careful about that. Constructive criticism has to be applied very
carefully.”
Contd...

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