How women leadership & diversity helps better economy?

Leadership Article Review:                Franki Wong   All writings here are copyright (c) 2009 & all rights reserved.

How does goal interdependence function in foreign ventures in China?   

Article Citation: 

Yifeng, N., & Tjosvold, D. (2008). Goal interdependence and leader-member relationship for cross-cultural leadership in

       foreign ventures in China. Leadership & organization development Journal, 29 (2), pp. 144-166.


Summary:  The authors’ main objective in this article is to analyze and examine the effect and influence of goal interdependence and leader-member relationship on cross-cultural leadership in joint ventures in China (Yifeng & Tjosvold, 2008). As increasing of joint ventures, overseas productions, international subsidiaries, and trading in China with many other nations  (e.g., Japan, South Korea, U.S.A., Canada, Germany, France, United Kingdom, Australia, Russia, Brazil, Malaysia, Singapore, and India, etc.) in recent years, China becomes the world’s factory.  Many international companies are developing foreign productions or joint ventures in there not only want to increase profits or returns, lower costs, and also would like to capture the benefits of global trading or open up the new and giant of local Chinese market (e.g., General.Electric., General Motor, Home Depot, Best Buy, Wal-Mart, Toyota, Samsung, and IKEA, etc.).  At long last and about two centuries afterward, today China follows and practices the “open-door” policy in trading and business, and allows most of the countries in the world and their organizations set up joint ventures, productions or subsidiaries in there.
      For the issues: Why was the article written? As there are different cultures, dissimilar traditions, and different value and belief systems (e.g., individualism vs. collectivism) between China and the West that may build up many misunderstanding, misinterpretation, disagreement or distrust and could create poor cross-cultural leadership with employee frustration and lower job performance. The key research question in this leadership article is how to facilitate, communicate, assist or make easy and possible leader-member relationships involving overseas or foreign managers, executives, and supervisors with Chinese employees in joint ventures in China. Yifeng and Tjosvold (2008) claim their study directs and utilizes “the theory of cooperation and competition and the theory of LMX [Leader-Member Exchange model that describes how leaders develop mutual exchange relationships with their followers or employees] to develop responses to the research questions. Completed survey questionnaires were analyzed on a valid sample of 199 [from 55 firms, consisting of 100 copies concluded by employees who had Japanese managers and 99 copies completed by those who had American managers]” (p. 144). This study got great support by the top and middle management of joint ventures, and as the above figures showed, it focused mainly on Japanese managers and American managers with their Chinese employees and senior staffs in the organizations that located from various cities (e.g., Beijing, Shanghai, Qingdao, Fuzhou, and Xiamen) in China. The title of this article, therefore, should change and indicate that the study primarily examine and concentrate on Japanese and American managers and their Chinese employees in the issues of goal interdependence and leader-member relationship for cross-cultural leadership in joint ventures. 
         For all the employees that respond this study, Yifeng & Tjosvold (2008) stated, “112 [or 56.3%] were male; the average age is 34.2 years, and 136 [or 68.3%] of them have worked with their managers for more than one year; 124 [or 62.3%] of them have Bachelor's degrees and 39 [or 19.6%] of them have Master's degrees or doctorates” (p.150). The findings of the study supported and held the concept that “cooperative goals [but not competitive or independent] between managers and employees can strengthen their leader-member relationships, which in turn facilitate cross-cultural leadership. The results also extended this theorizing to cross-cultural settings. Although the theory of cooperation and competition and the theory of LMX were developed in the West, they could be useful in Chinese contexts for understanding cross-cultural leadership. Foreign managers working in joint ventures in China who develop strongly cooperative goals may be able to develop high quality relationships that in turn promote employee commitment and performance” (Yifeng & Tjosvold, p.144). It is very true. The results of this study suggest, as Yifeng and Tjosvold (2008) claim, “Chinese employees, despite their different cultures and unequal status, can develop cooperative goals with their foreign managers. These goals are a foundation on which Chinese employees can overcome their cultural distance and develop a strong leader-member relationship with foreign managers” (p.159). In North America, as it highlights on the individual, most people lean to accredit or recognize achievement or success to their own talents and efforts. In the Chinese belief and custom, on the other hand, “individuals are expected to give credit not only to themselves but also to their family, colleagues, or even the whole society for [personal] success. To the Chinese managers [or employees] in joint ventures, [personal satisfaction] may have a smack of selfishness or an unbecoming lack of modesty]” (Yifeng & Tjosvold, p.2).  At any rate, over 80% of all the respondents in this research in fact were university graduates (e.g., higher education may get better learning, logic, communication, knowledge, and perception with more open-minded or good judgment, and most of them were in the positions of senior or management levels in the joint ventures), these were reasons and causes why there were more cooperative goals with their  foreign managers, and better leader-member relationships that in turn help and assist cross-culture leadership.   
       Overall, for those Chinese employees, including staffs, supervisors, managers or leaders in joint ventures or overseas subsidiaries, they will do their best and take pride in their work with cooperative goals, especially in the cases of working with foreign managers. In many situations, they may feel that they are representing their culture, custom, society and the whole country (Confucianism plus collectivism and socialism or the CCS Theory), as they pride themselves on their great tradition, nationality, development and improvement or growth.

Critique:  The question: Explain how this article impacted your understanding of the research topic and how it compared to similar information gathered from your text.  Leadership, Northouse (2007) in our text examines, “is a process whereby an individual influences a group of individuals to achieve a common goal” (p.3). In style approach of leadership, Northouse (2007) claims, it is a useful way to understand the behaviors of leaders, and it “reminds leaders that their impact on others occurs through the tasks they perform as well as in the relationships they create” (p.78). In other words, it is a logical action and reaction; in fact we all impact by one and others, especially toward the same common goals and under the same organization, condition or environment. In the issues of cooperative objectives, Northouse (2007) analyzes human skills and argues, “allow a leader to assist group members in working cooperatively as a group to achieve common goals… [Leaders] create an atmosphere of trust where employees can feel comfortable and secure and where they can feel encouraged to become involved in the planning of things that will affect them” (p.41). All these approaches and actions not only can build up their leader-member relationships, but also make easy and assist cross-cultural leadership. Leadership skills are identified “as the ability to use one’s knowledge and competencies to accomplish a set of goals or objectives” (Northouse, p.40).  The above notions and situations correspond and go with the findings of Yifeng and Tjosvold (2008) that claim, “Foreign managers working in joint ventures in China who develop strongly cooperative goals [but not competitive or independent] may be able to develop high quality relationships that in turn promote employee commitment and performance” (p.144). With positive mindset and great leadership approach, foreign manager would build up supportive, collaborative, and cooperative objectives with excellent employee relationship and great job accomplishment. In practice, foreign managers that usually hold management and leadership functions in joint ventures (e.g., most foreign managers are those highly trained managers with great or distinguished management skills and experiences that selected from home management and offices) certainly would work together with their Chinese managers or employees to achieve the common goals of their organizations. Yifeng and Tjosvold (2008) assert the findings of the study supported and held the concept that “cooperative goals between managers and employees can strengthen their leader-member relationships, which in turn facilitate cross-cultural leadership” (p.144). It is very true. Both our text and this article were examining and evaluating the issues of leadership and leader-member relationships, and they both get the same findings: building up strongly cooperative goals would develop excellent employee relationship and improve job performance.
        As the whole survey questionnaires were examined on a compelling sample of 199 from 55 firms, consisting of 100 copies concluded by employees who had Japanese managers and 99 copies completed by those who had American managers (Yifeng & Tjosvold). This study got great support by the top and middle management of foreign-owned joint ventures that primarily managed by Japanese or American managers in different cities in China. The title of this article as we discuss earlier should change and indicate that the study mainly examined and focused on Japanese and American managers in joint ventures in China.  Moreover, for all the staffs or individuals that respond this study, Yifeng & Tjosvold (2008) reported, “124 [or 62.3%] of them have Bachelor's degrees and 39 [or 19.6%] of them have Master's degrees or doctorates” (p.150). This study therefore was focusing on senior employees or staffs, supervisors, managers, or middle to upper management levels with higher education (e.g., at least over 80% of all the participants graduated from university levels) and not general employees or workers in the production lines. The authors, however, did not clarify this control or limitation in their study.  In all, this article helps me understanding greatly the notions and subject matters of leadership, goal or objective interdependence and leader-member relation for cross-cultural leadership in joint venture in China. This article strengthened and supported the reading from the texts and discussion in the classes I have been exposed so far on this topic and the subject matters of leadership.

Application:  The questions: Is this an article that can be used in your own practice of leadership?  Do you think the article will change the way you approach a situation, project, or discussion related to this topic at work?  Could you share information in the article with your colleagues or supervisor?
       Absolutely, nowadays, as our labor force is so diversity with increasing cost of human resources, operations management and production in a highly competitive marketplace. The concepts of cooperation, leader-member relationship, and cross-cultural leadership or the theory of LMX (as in the article and the above examinations) are very important in our modern management and leadership.
        After study the article and examine the findings, it will certainly change the way I approach a situation, project, or discussion related to goal interdependence and leader-member relationship with cross-cultural leadership at work. I consider and agree that cooperative goals (but not competitive or independent) between managers and members of staffs, especially in a diversified labor force with different culture or value and belief systems, not only can support their leader-member relationship, but also make easy and smooth the progress of cross-cultural leadership.
         In order to increase cost effective and efficient, improve the values of stakeholders and advance customer services and management excellence, as in the role of an executive in a storefront and service company, I would share information and analysis in the article with my colleagues and managers immediately. In the business world, as people always state: survival of the fittest. The company must keep leadership and management approach up-to-date with opening communication and open-minded. Effective leadership is the key to success in the slow economy and competitive market.

Conclusion:  The article of “Goal interdependence and leader-member relationship for cross-cultural leadership in foreign ventures in China,” from Leadership & organization development Journal, and by Nancy Chen Yifeng, and Dean Tjosvold was relatively easy to understand, read, and informative with a lots of great research data, tables, diagrams and references.  The article did live up to its study and goal with my expectations; however, the title of the article should changed and indicated more specific that the study was focusing on Japanese and American managers and joint ventures (e.g., all 199 valid copies of questionnaires in this study were completed by those who had Japanese or American managers) in China. Last but not least, as the above examinations and discussions, in order to understand more in the issues of cooperation goals, better leader-member relationship and cross-culture leadership with the objectives of increasing cost effective and efficient, improving the values of stakeholders and advancing customer services and management excellence, I would recommend the article to all my colleagues and managers to help them understand the significant of diversity, different culture with modern management and leadership.

References

Northouse, P. (2007). Leadership (4th ed.). Thousand Oaks, CA: Sage.

Yifeng, N., & Tjosvold, D. (2008). Goal interdependence and leader-member relationship for cross-cultural leadership in

       foreign ventures in China.Leadership & organization development Journal, 29 (2), pp. 144-166. Retrieved May 13, 2009, from

          ProQuest database.

Can we train to have more wisdom and intelligence?    

 
Welcome to our business management school. I was in communication studies, and history, and would not think about business school. I glad that I make the right move; opening new opportunities and searching new challenges and experiences. Don’t worry about the score of conceptual skill or human skill, as Northouse (2007) examines and analyses skills approach, and argues, “Skills are competencies that people can learn or develop… The same is true with leadership. When leadership is framed as a set of skills, it becomes a process that people can study and practice to become better at performing their jobs” (p.54). This is exactly the American education system about—opening the door of learning; education, knowledge,  abilities, skills and leadership or intelligence and wisdom that people can learn or train and develop, and not born (or from classes, families, or connections). Yes, practice makes perfect, and yes, you can do it.

References

Northouse, P. G. (2007). Leadership (4th ed.). Thousand Oaks, CA: Sage.

Note: All the articles or writings are copyright (c) 2009 & all rights reserved.

Why P&G gets top ranking?

Procter & Gamble: A multi-national corporation (MNC)

    The questions: What is a MNC? How does it contribute or play a part in Procter & Gamble (P&G)? There are general three types of multi-national organizational structures: a) Horizontally integrated multi-national corporations—they manage business, manufacture, or production establishments (or set up stores or firms) located in various nations to make, the same or similar goods, products, or services (e.g., Starbucks, or McDonald’s); b) Vertically integrated multi-National corporations—they direct manufacture, or production establishments in certain nations to make goods that serve as input or contribution to its production establishments in other nations or home countries (e.g., Nike, or Magna auto parts);  and c) Diversified multi-national corporations—they run and manage business, or production establishments located in various nations that are not horizontally or vertically integrated, such as, Hilton hotel (Jones, 2007). The new development of so-called globally integrated enterprise or business, in which firm can locate tasks anywhere worldwide as long as offered right cost, talents, expertise, and abilities with supports of internal and external environments (e.g., Internet or high-tech firms) is still debating its affiliation with the notion of multi-national corporation as it lacks back-office supports (Jones, 2007). In the following sections, we are going to focus and examine the giant and multi-national corporation of Procter & Gamble.

     P&G is incorporated in 1890 (NYSE: PG); the company’s head office is located in Cincinnati, Ohio, and is the world’s number one producer and marketer of household products (health and well being, beauty, household care, pet food and water filters), with many billion-dollar brands, such as Tide, Fusion, Charmin, Crest, Pampers, Head & Shoulders, Olay, Wella, and Duracell. The company shed its coffee brands in 2008, and being the acquisitive style, P&G’s largest buy in company history was Gillette in 2005 (P&G-1, 2009). It has 138,000 employees worldwide with net sales $83,503.0 million; one year growth: 9.2%; net income: $12,075.0 million; and income growth: 16.8% for fiscal year ending June, 2008 (Procter & Gamble, 2009, p.1). The objective of P&G’s organizational structure is mainly based on the notion: “Think globally and act locally;” in fact, all the way through the twentieth century, P&G and many other U.S. corporations, such as GM, Heinz, IBM, and Campbell’s have shifted their domestic primary competencies out of the country to produce goods and services valued by abroad and global consumers (Jones, 2007). P&G developed a unique approach of the co-operative multidivisional system to sustain and carry its diversification strategies of products and marketplaces— a foundation and source of the company’s competitive advantage.  There are four pillars or major sectors of P&G organizational structures: (1) Global business units (GBUs), in which emphasize the concept of think globally, and include five major divisions: a) Baby and family care; b) Beauty and feminine care; c) Fabric and home care; d) Snacks and beverages; and e) Health care. The main role of GBU: “Create strong brand equities, robust strategies and ongoing innovation in production and marketing to build major global brands” (P&G, 2009, p.1). In fact, GBUs not only design and develop major global brands, but also build up strong and hearty business and marketing strategies; (2) Market development organizations (MDO), in which highlight the notion of act locally, and divide the international markets into seven regions: a) North America, b) Asia, India, and Australia, c) Northeast Asia, d) Greater China, e) Central-Eastern Europe, Middle East, and Africa, f) Western Europe, and g) Latin America.  The aims of MDOs: “Interface with customers to ensure that marketing plans fully capitalize on local understanding, to seek synergy across programs to leverage corporate scale, and to develop strong programs that change the game in… favor at point-of-purchase” (P&G, p.1). In other words, MDO construct local awareness, insight, and appreciation, and set up marketing strategy and planning; 3) Global business services (GBS) which consist three super centers: a) GBS Americas (located in Costa Rica), b) GBS Asia (placed in Manila, but will move to China next year), and c) GBS Europe, Middle East and Africa (situated in Newcastle, England). GBS’s general responsibility: “Provide services and solutions that enable the company to operate efficiently around the world, collaborate effectively with business partners, and help employees become more productive” (P&G, p.1). GBSs stress the beliefs and attitude of enabling the company to earn, succeed, and secure of customers and consumers; and last but not least, (4) Corporate functions (CF) in which including eleven divisions: a) Customer business development, b) External relations, c) Finance and accounting, d) Human resources, e) Information technology, f) Legal, g) Marketing, h) Consumer and market knowledge, i) Product supply, j) Research and development, and k) Workplace services. CF units “ensure that the functional capability integrated into the rest of the company remains on the cutting edge of the industry” (P&G, p.1). CF division emphasizes the motto: Be the smartest and the best, and provides the full foundation, support, care, assistance, confirmation, collaboration, and reinforcement to GBUs, MDOs, and GBSs (P&G). As a global company, P&G’s organizational structure maintains great coordination among products, functions and geographic areas. In all, P&G’s organizational configuration and corporate tradition is based on the assumptions and notions of personal integrity, acting and doing the best at what it does, and respect for all the employees or the individuals in the corporation. Next, let us examine the competitive landscapes and forecasting of P&G in its two major businesses of personal care products manufacturing, and soap and detergent manufacture.

 In the industry of personal care products, need or demand is determined by population expansion and consumer preferences. The profitability of P&G “depends on product or service innovation, effective sales and marketing, and efficient operations. Large companies (such as P&G) have scale advantages in purchasing, manufacturing, distribution, and marketing… The industry is capital-intensive: average annual revenue per worker is over $600,000” (P&G-1, 2009, p.1). In term of personal care products manufacturing industry forecast, according to Hoover’s/D & B subsidiary First Research (that based on INFORUM’s “interindustry-macro” system to modeling the economy captures the relations between industries and the aggregate economy), the production of US toiletries manufacturing “is forecast to decline at an annual compounded rate of 1 percent between 2008 and 2013” (P&G-1, 2009, p.1). It projects toiletries production growth drops from 5% in 2008 to -12% in 2009 and -1% in 2010, and then 4% in 2011, 3% in 2012 and finally recuperates to 5% in 2013—e.g., as slow economy limits spending on non-essentials, all these issues depend on consumer income as well (P&G-1, p.1). In the competitive environment of soap and detergent manufacture, as population increase specifically “among households with children, driver demand in the consumer sector, and economic growth drives demand in the commercial sector. The profitability of individual companies depends on efficient operations and effective sales and marketing. Large companies (such as P&G) have scale advantages in purchasing, manufacturing, distribution, and marketing… The industry is capital-intensive: average annual revenue per worker is more than $700,000… The output of US soap and cleaner manufacturing is forecast to grow at an annual compounded rate of 1 percent between 2008 and 2013” (P&G-1, p.1). As slow economy reduces laundry use (especially in commercial application) and demand is based on demographics, economies of scale give preferentiality to larger organizations or multi-national corporation of P&G. However, an alliance of environmental organizations has sued several top soap and detergent or cleaning products markers “to make them disclose the ingredients in their brands. The environmental coalition is using a 1976 New York law that banned phosphates as the basis for its lawsuit… The industry entranced a program in November 2008 that encourages companies to voluntarily provide information about their products to consumers” (P&G-1, P.1). In this case, it may become an issue and problem or financial dilemma for P&G in the long run. As shares of P&G have lost a third of their value since last year, A.G. Lafley (CEO) analyzes and claims,

We continue to invest in our core strengths. First, we don't skimp in understanding the consumer. Second is innovation. Our capital spending will go up in 2009 for new engineering and manufacturing technology. And third is branding…In our industry only 15% to 20% of new products succeed. P&G's success rate is a little over 50%.... We improved our batting average by clarifying and simplifying the innovation process. We set checkpoints with clear measures for each phase of the process from ideation through development and commercialization. If a project looks like it will not make it, we drop it. You learn more from failure than you do from success but the key is to fail early, fail cheaply, and don't make the same mistake twice (Crockett, 2009, p.1).

The need for innovation in business is very significant to the company, especially in this slow economy, and as a multi-national organization, you are either the leader of the industry, or just follow the leader. In all, increasing the cost effective and the values of its stakeholders, and improving the products, customer services, and management excellence are the major objectives and goals of P&G’s strategic management and business policy.

Part 2: Compute financial ratios for P&G in 2008

Financial Ratios: dollar amounts in millions; June 2008 (P&G 10-K, 2009).

1) Liquidity Ratios  

Current Ratio = Current assets/Current liabilities

 = $24,515/$30,958 = $0.79

Quick (acid test) ratio = Current assets – Inventory/Current liabilities

 = $24,515 - $8,416

 =$16,099/$30,958 = $0.52

Inventory to net working capital = Inventory/Current assets – Current liabilities

  = $8,416/$24,515 - $30,958

 = $8,416/$-6,443 =$-1.31

Cash ratio = Cash + Cash equivalents/Current liabilities

 =$3,313/$30,958 = $0.11

2)  Profitability Ratios

Net profit margin = Net profit after taxes/Net sales

 = $12,075/$83,503 =14.46%

Gross profit margin = Sales – Cost of goods sold/Net sales

 = $83,503 - $40,695/$83,503 =$42,808/$83,503

 =51.26% 

Return on investment = Net profit after taxes/Total assets

 = $12,075/$143,992 = 8.39%

Return on equity (ROE) = Net profit after taxes/Shareholders’ equity

   = $12,075 / 68,128 = 17.7%

Earnings per share (EPS) = Net profit after taxes – Preferred stock dividends / Average number  of common shares or 

=Earnings available for common stockholders / Number of shares of common stock outstanding

= $12,075 /4,001.8= $3.02 (or Basic net earnings per common share $3.86 in P&G10K’s Income statement)

3) Activity Ratios

Inventory Turnover = Net sales/Inventory

 = $83,503/$8,416 = 9.9

Days of inventory = Inventory/ (Cost of goods sold / 365)

 =$8,416 / $40,695/365 =8,416/111.49=75.49 Days 

Asset turnover = Sales/Total assets

 = $83,503/$143,992 = 0.58

Fixed asset turnover= Sales / fixed assets

  =$83,503/$20,640 =4.05

Average collection period=Accounts receivable/Sales for year/365

  =$6,761/ ($83,503/365) =6,761/228.78 =29.55 Days

Days of cash = Cash/Net sales for year divided by 365

 = $3,313/$83,503 divided by 365

 = 3,313/ 228.78=14.5 Days

4)  Leverage Ratios

Debt to asset ratio = Total debt/Total assets

 = $74,498/$143,992 = 51.7%

Debt to equity ratio = Total debt/Shareholders’ equity

 = $74,498/$69,494 = 107.2%

 Long-term debt to capital structure = Long-term debt / Shareholder’s equity

 =$23,581 / 69,494=33.9%

Current liabilities to equity = Current liabilities/Shareholders’ equity

  = $30,958 / $69,494 = 44.55%

5) Other Ratios

Price/earnings ratio = Market price per share/Earnings per share

 = $49.51/$3.86 = 12.83

 Divided payout ratio =Annual dividends per share / Annual earnings per share

=$1.45 / $3.86 =37.6%

Dividend yield on common stock = Annual dividends per share/Current market price per share

 = $1.45/$49.51 =2.93%

References

Crockett, R. (2009, April 13). How P&G plans to clean up. BusinessWeek, Issue 4126. Retrieved April 23, 2009, from EBSCO

       HOST: Business source elite database.

Jones, G. (2007). Organizational theory, design, and change (5^th edition). Upper Saddle River, NJ: Pearson Education.

P&G-1. (2009). Procter & Gamble company description. Retrieved April 23, 2009, from http://www.hoovers.com/procter&gamble

 P&G. (2009). Corporate info: structure. Retrieved April 23, 2009, from

Procter & Gamble Co (P&G10-K). (2009). Hoovers. Retrieved April 23, 2009, from

         http://www.hoovers.com/free/co/competition.xhtml?ID=rrtrr&FRIC=223&x=25&y=11

What effect will this subprime mortgage crisis in the U.S. have on national and international housing market?         Franki Wong                                  
The issues of subprime loans and tightening lending criterion that not only have
great effects (with harsh and strict rules) on new mortgages, lending or credit applications, refinances, and first time home buyers on the housing market, but also have major consequences on the values of existing home market, economy, employment, import and export markets, and social, political, or business developments. Gitman (2009) analyzes, subprime mortgages and loans “climbed from near 0 % in 1997 to about 20% of mortgage originations in 2006 (with some $300 billion worth of adjustable rate mortgage or ARM)… [And] the mortgage banker group reported in March 2007 that 13% of all subprime loans were in delinquency, more than 5 times the delinquency rate for home loans to borrowers with the best credit ratings” (p. 197).  What and where were the financial regulators, supervisory bodies, or government administrations or watchdogs doing during these years?  Where is the leadership or managerial finance? Do we need another new financial regulation or act?    
Hagerty (2009) analyzes and examines that according to Zillow.com (an online real estate data and research site) “more Americans are moving from denial to acceptance… [And] it found in a recent survey (taken by Harris Interactive between Jan. 6 and 8 and involved 2,271 adults, of whom 1,573 were homeowners, in which) 57% of participants believe their homes lost value during the past year. That was up from just 38% in a similar survey during last year’s second quarter (p.1).  As a matter of fact, the average prices of homes and buildings in all major cities (including London, Toronto, Shanghai, Hong Kong and Tokyo) are declining promptly. On the other hand, based on the market of supply and demand, good credit investors or home buyers with enough savings or cashes, nowadays, have more selections and bargaining power to buy their properties in this sluggish housing market condition.
References
Gitman, L. (2009). Principles of managerial finance (12th edition). Boston, MA:  Prentice-Hall.
Hagerty, J. (2009, February, 13). Zillow report shows homeowners facing reality, sort of. The Wall Street Journal online. Retrieved February 13, 2009, from http://blogs.wsj.com/developments/

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 What concerns might a CFO deal with when a firm expands into global markets?   Franki Wong
A chief financial officer (CFO) not only concerns about market, products or competitors, costs of production, financial and banking system, accounting standards, trade agreement or restrictions, employment and tax laws or regulations, currency exchange rates, and government trading policy, but also deals with language barriers, social, cultural, and political issues with different values and beliefs when a company expands into the international markets (Gitman, 2009).For instance, Procter & Gamble (P&G) which is incorporated in 1890 and is located in Cincinnati, Ohio—it is the world’s number one producer and marketer of household products with many billion-dollar brands (e.g., Tide, Gillette, Pampers, Head & Shoulders, Olay, Wella, or Duracell). As it expands into the international markets, the major objectives of its CFO and the organization are: “a) Interface with customers to ensure that marketing plans fully capitalize on local understanding, to seek synergy across programs to leverage corporate scale, and to develop strong programs that change the game in…favor at point-of-purchase; b) provide services and solutions that enable the company to operate efficiently around the world, collaborate effectively with business partners, and help employees become more productive; and c) Ensure that the functional capability integrated into the rest of the company remains on the cutting edge of the industry” (P&G, p.1). All these match the aim and motto of the company: “Think globally and act locally” (P&G, p.1).  In all, increasing the cost efficient and effective, and the values of its stakeholders, and improving the market shares, customer services, and the management and financial excellence are the concerns or apprehensions of a CFO might face as a firm expands into the international markets.
References
Gitman, L. (2009). Principles of managerial finance (12th edition). Boston, MA: 
        Pearson Prentice Hall
P & G. (2009). Corporate info: Structure. Retrieved January 07, 2009, from
       http://www.pg.com/jobs/corporate_structure/four_pillars.shtml

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Why McDonald's is a top international brand?                 Franki Wong

The issue: Think about the concept that a really effective brand is one which in a few words or briefly captures the merchandise, goods or service presenting in a way that responds a query or problem in the buyer’s mind. What questions or matter does the brand selected answer? Why McDonald’s is effective brand?
       McDonald’s answers questions, such as: Where can parents find a restaurant with playground and make their kids delighted?  Why kids enjoy so much and would like to collect McDonald’s toys and cards? Where can customers get a breakfast with coffee (plus refill) and newspaper, all at decent prices?  How do I get a quick lunch in my area before I drive on the highway? Where can people in our city buy their meals in drive-through after midnight?  Why McDonald’s is the “Best Place to Work for Minorities--according to Fortune Magazine 2005 (McDonald's, 2009 )? How Ronald McDonald Houses help seriously ill children and their families?  Superior brands are those that instantly think about when consumer has an issue to be worked out or a requisite to be implemented (Ferrell & Hartline, 2008).
       The question: Why is this effective brand?  McDonald’s is an effective brand as it gives what the customer is inquiring about and seeking out. It provides fast food, quick meals, or drive-through services and comfortable site (e.g., electronic fireplace) with relaxing and well-designed seats to customers on the run or continuously moving about.  It also offers families and their children a place to eat and play safely.  The brand name of McDonald’s is very easy to read and speak (e.g., it closes to children’s song: Old MacDonald had a farm), and the brand mark (or symbol, figure, and design) of McDonald’s-- such as: McDonald’s golden arches and the figure of Ronald McDonald—are  very well communicate the company brand and its representation and image without using spoken words—this is why McDonald’s not only the leading restaurant to eat and play for  kids in North America, but also the most favorable eating place for children in many countries in the world, including Eastern Europe, Middle East, Africa, and Asia/Pacific. In September of 2008, the company operated 960 restaurants in China since launched the first one in Shenzhen in 1990.  China is the top and fast growth market for McDonald’s that other than home market, and it will open 150 new locations in 2009 and 175 in 2010 across the nation (Liu, 2008).  McDonald’s is indeed an international restaurant, international brand (or global brand), and all the kids in the world and their parents that walk into the fast food chain share the same types of food, designs, playgrounds, games, toys, and ideas.  Whitelock and Fastoso (2007) analyze and argue, “International branding is a field within international marketing concerned with the challenges that companies face when their brands cross national borders. These challenges relate to the essence of the brand in terms of brand name, brand visual [e.g. logo, colors] and sound elements [e.g. jingles, music], and brand personality” (p. 266). In this case, McDonald’s not only is an effective local-brand in the United States and Canada, but also a successful international-brand in the world.

References
McDonald's corporation (McDonald's). (2009). McDonald's fact sheets. Retrieved January 15, 2009, from http://www.mcdonalds.com/corp/about/factsheets.html
Liu, J. (2009).  McDonald’s growing in China. China Daily. Retrieved January 15, 2009, from
 http://www.chinadaily.com.cn/bizchina/2008-09/08/content_7007412.htm
Whitelock, J., & Fastoso, F.  (2007). Understanding international branding: defining the domain and reviewing the literature. International Marketing Review, London, 24 (3), 252-270. Retrieved January 15, 2009, from ProQuest Database.
Ferrell, O.C., & Hartline, M. D. (2008). Marketing Strategy (4th edition). Mason, Ohio: Thompson South-Western.

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