Due to the social democratic nature of Austrian culture, employees

International Business


Due to the social democratic nature of Austrian culture, employees are much less motivated


Case Studies

CASE STUDY (20Marks)

Due to the social democratic nature of Austrian culture, employees are much less motivated by financial incentives than in more capitalist countries such as the United States. As such, alternative methods need to be utilized in order to change employee behavior. Historically, there are two proven ways to motivate employees in such circumstances: nonfinancial incentives and leveraging social status. Austrians generally emphasize family life and believe in “working to live” rather than “living to work.” As such, incentives that allow employees to spend more time with their families and improve their life/work balance are the most effective way to provide motivation. In addition to explicit incentive systems, Austrians are frequently intrinsically motivated by social status. By creating a social hierarchy that can be climbed through accomplishing specified goals and objectives, cultural change can be adopted over time. Establishing better external relationships with customers can be accomplished by focusing on leveraging an understanding of Austrian culture.

Answer the following question.

Q1. Give an overview of the case.

Q2. Why Austrians are less motivated by financial incentives?

Case (20 Marks)

Progressive Chemical Industries Ltd, is engaged in Manufacturing and export of specialty chemicals, having turnover of Rs 300 crores. The Company is growing and having good export orders. The CEO is in mood to expand the business and aiming to reach turnover of Rs 1000(thousand) crores in next 5 (five) yrs. The CEO is worried about the increase in input costs and workers demands. Union has threatened to go on strike indefinitely. Union has demanded 50% increase in salary and other benefits, But is not agreeing to link it to productivity. It has also raised issues like unsafe, hazardous working conditions, leakage of poisonous gases affecting the health of workers. The consultant has advised the CEO to be strict and take strict action against the erring employees and be ready to declare lockout if situation warrants.

Answer the following question.

Q1. Prepare a draft agreement for the above situation which could be acceptable for Management and Union.

Q2. As a HR Head how would you convince the Union and workers?

Q3. Do you feel management policies/practices are right?

Q4. What are the various laws which could be applicable in the above problems?

CASE STUDY (20Marks)

Family businesses typically have the luxury of passing the torch down to children after parents retire, but in some cases, there are no candidates, or the candidates may not be right for the role. This presents a challenge when it’s time to find a successor, especially if existing employees have assumed that top level promotions would come from within the family. So the Carlson companies had to put in great effort to find a replacement, looking both internally and outside of the company, ultimately finding an internal candidate who would work well with the family but also offered plenty of experience as an executive in different industries. According to Beverly Behan of Hay’s Group, Carlson should be commended for not only making the right decision in not hiring the heir apparent, but for handling the job search in a calm, effective way.

Answer the following question.

Q1. What strategy was adopted by Carlson in appointing the heir?

Q2. Why the decision of Carlson was right. Comment..

CASE STUDY (20 Marks)

The cases discusses, UK based home improvement retailer, B&Q’s foray into China. B&Q entered the Chinese market in the year 1999 by opening a store in Shanghai through a joint venture with Home Decorative Building Materials Limited, a Shanghai based

property developer. At that time, the DoitYourself (DIY) concept had not gained popularity in China. Overcoming the initial challenges, B&Q was able to establish itself firmly in the Chinese market. B&Q modified its stores to suit the Chinese consumers

and introduced the concept of ‘BuyitYourself.’ The company’s growth coincided with the rapid infrastructural development in the country, and increased activity in the housing sector. The rapid growth of the Chinese home improvement industry led several

leading international companies like IKEA to expand their operations in the country. By late 2006, B&Q faced stiff competition from foreign as well as local companies like Orient Home. The case examines the entry and expansion strategies of B&Q in China and how the company is positioned to face increasing competition in the Chinese home improvement industry.

Answer the following question.

Q1. Analyze the entry and expansion strategies of B&Q in China.


Due to the social democratic nature of Austrian culture, employees are much less motivated


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