05100014

7.Does your company give people a chance to get to know one another outside of their usual work situations? Provide specific examples. What are the benefits -does it make them feel more connected and result in stronger teams?

8.Does your company have a highly selective recruiting process? Does it attract verytalented people with whom it wants to build long-term relationships? Describe therecruiting process and how you were recruited. How could you improve the process?

9.Where is your corporate culture headed? Why? What are you doing to help determine the direction?

10.Have you ever heard one of your colleagues say, “I wish I'd spent more time at work”? Have you ever felt this way? Why or why not?

SOME SPECIAL WORDS

TO HELP YOU UNDERSTAND THE TEXT

patina – налет

duller and dingier – тусклее и сомнительнее monetary garn – нажива

applications – зд. курсы slump – экономический спад

venture-backed company – поддерживаемый коммерческой деятельностью

induce – склонять

hard and fast rule – твердое правило i’m very big on – я всегда за то, чтобы super-charged – наэлектризованный casual management – неформальное mind-numbering – ошеломляющие face the challenges – испытать getaway – вылазка

to nurture – взращивать, вскармливать comprising – в составе

pervade – пропитывает mentality – дух

to sport – щеголять shoot for – охотиться за

foot the bill – оплачивать счет

VOCABULARY EXTENSION (19)

1.During the economic crisis of 1998, which tactics did your company use to save the bottom line?

2.What strategies does your company have for dealing with the next economic slump?

3.Which employee practices are frowned upon at your company? Why?

4.How do you react when the crunch is on at work? What are your coping mechanisms? Give a specific example.

5.Do you work for a venture-backed company? Who are the principal investors?

If you had venture capital, what kinds of new businesses (locally) might you invest in? Why?

6.What is the most effective way of inducing consumers to buy your product / service? Why?

7.What changes in your company's reward system would recharge your staffs batteries? Why?

8.What are the hard and fast rules of getting promoted within your company?

9.What is vital to the long-term success of your career? Why?

10.Does your boss keep you under his / her protective gaze? Do you keep your subordinates under your protective gaze? Why or why not?

11.In your opinion, which management function is the most mind-numbing? Why?

12.Are any of the following figures growing exponentially: the number of your customers? Number of your suppliers? Number of your competitors? Number of your foreign partners? Number of new government regulations? Level of economic uncertainty / certainty? Why?

13.Which extracurricular activities/events does your company sponsor or organize for its employees?

14.How much time do you spend poring over management journals / magazines in search of new ideas? Why?

15.How does your company nurture its employees' skills over the long-term?

16.What mentality pervades your company? Why? Is this mentality the same as yours? What have you done to try to change either your company's mentality, your own mentality or both?

17.What are tangible expressions of your company's attitude toward its employees?

18.Would you describe the atmosphere at your company as laidback or uptight? Why?

19.How would you conclude a speech about the future of the Russian economy? (Your conclusion should summarize your main points.)

Recognizing a Bad Corporate Culture

By Laura Boswell

A company's corporate culture can be just as important as your paycheck when it comes to your career satisfaction.

No matter how detailed a job description or want ad is, you can't fully know what it will be like to work at a particular company without getting an understanding of its corporate culture. And no matter how great a job is, the culture (a company's day-to-day way of doing business and expectations of its employees) can make or break your per- formance-and your sanity.

A recent U.S. News and World Report article (“Why It Pays to Quit,” November 1, 1999) reported that this year, approximately 17 million workers will quit their jobs, up 6 million from five years ago.

In today's strong economy, better money is certainly a driving force here. But many experts argue that “better money” is a scapegoat used by departing employees and exasperated managers to mask deeper issues in a company's culture. Rather than “money,” it may be the things that are difficult for a company to admit-high profits that are not shared, low ethics, distrust and intolerance-that send an employee searching for greener pastures.

It is difficult to gauge a company's culture in a one or two-hour interview. At best, you might have a chance to sit privately with a current employee and ask questions. If you do, don't limit your questions to “What are the hours like?” and “How big is your cubicle?” You should be digging a little deeper.

“There are some key questions a job candidate should ask before accepting a position,” says San Diego-based Perim Consulting's Brian Lange. “If the candidate can ask interviewers – and ideally other company employees – the following questions, he or she may get some valuable insights:

• How would you describe the nature of the work environ-

ment?

•How do you think the managers within the company would describe their management philosophies or roles?

•Do you feel you know what is expected of you?

•Do you receive feedback on your performance?

•Are there opportunities for development / training?

Also, be certain to get an idea of how teams communicate and work together at your future job. Much of bad corporate culture can be traced to lack of communication. One company's survey of exiting employees found that 65 % noted that a lack of coaching or feedback was key in their decision to leave” (“Why Employees Leave,” Employment Management Today, Winter 2000).

“Usually, when a management team doesn't receive strong messages from senior management about the company's direction or values, they tend to implement multiple operating plans that are disconnected from each other,” says Lange. “If companies don't know what they don't stand for (and what they won't stand for!), where they're going and what makes them unique in the marketplace, they will never reach the level of corporate self-actualization.”

Perhaps you are already in a job where you dislike the corporate culture. What can you do?

“It is difficult for one person to overhaul an entire company's culture, but there are some things you can do,” says Lange.

•Do research and reading on improving current culture, and share it with someone in a more senior position to get the ball rolling for change.

•You might suggest hiring a consulting company to help craft and implement appropriate systems and training to contribute toward a better working environment.

•Finally, you may indeed need to look for another company that has a better corporate culture for you.

“I would also encourage people to read about companies that are well-respected and try to learn about some of the initiatives they undertake to maintain a strong corporate culture, and, again, share this with senior management.”

There are many Web sites that can help you in your corporate culture research. For example, WetFeet.com not only offers deep information on company's financial statistics, but also offers “inside information” from actual employees who can give the real scoop on what it's like to work on Wall Street or in a start-up.

“Life is too shorthand work is too time-consuming to accept being anything less than satisfied with our work environments,” says Lange. “We carry home too much baggage from unsatisfying work environments, and it is not fair to ourselves or our loved ones.”

Don't settle for a work environment in which you are unhappyyou deserve better. And in today's economy, you can afford to search for something more.

COMPREHENSION QUESTIONS

1.According to the article, what is corporate culture?

2.How many American workers were expected to quit their jobs

in 2000?

3.According to the article, why do employees quit their jobs?

4.What did one company's survey find to be the key reason for

quitting?

5.What happens when senior management doesn't send strong messages about the company's directions or values?

6.What are some things one can do to try to change his / her company's culture?

7.What kind of information can you find at WetFeet.com?

DISCUSSION QUESTIONS

l. How many Russian workers quit their jobs every year? What is the usual driving force (why do they quit)?

2.Which questions did you ask before accepting your current po-

sition?

3.Can you answer the following questions for your company:

• How would you describe the nature of the work environment?

•How do you think the managers within the company would describe their management philosophies or roles?

•Do you feel you know what is expected of you?

•Do you receive feedback on your performance? Are there opportunities for development/training?

4. Does your top management send strong messages about the company's direction or values? What does your company stand for? What won't it stand for? Where is it going? What makes it unique in the marketplace?

5. Are you satisfied with your work environment? What are you trying to do to change the corporate culture at your firm?

6. Which company's corporate culture do you admire? Why?

VOCABULARY EXTENSION

when it comes to can make or break sanity scapegoat exasperated shared searching for greener pastures gauge cubicle insights feedback traced to lack of overhaul to get the ball rolling to help craft scoop carry home too much baggage from settle for

1. When it comes to job satisfaction, what is most important to

you?

2.What actions can make or break a career at your company?

3.How do you make sure that your working environment does not have a negative impact on anyone's sanity?

4.If your boss made you the scapegoat whenever he / she made a mistake, what would you do?

5.Which management practices exasperate you?

6.Which work values do you share with your boss?

7.If you decided to search for greener pastures, what steps would you take to find a new position?

8.How does your company gauge its success?

9.Do you prefer a cubicle layout or an open-floor plan?

10.If someone told you he / she was considering applying for a job at your company, what insights would you offer him / her?

11.How much feedback do you get from your boss on a weekly basis? How much feedback do you give your managees on a weekly basis? What is the feedback usually about?

12.Complete this statement: My company's success can be traced to………………………………………………………………….

13.What does your company have a lack of?

14.What needs to be overhauled in your company? Why?

15.What recent projects did you help craft or get the ball rolling

on?

16.Who gave you the real scoop on what it was like to study in the PMTI program?

17.How much baggage do you carry home with you from the of-

fice?

18.What kind of position would you settle for in the future? (the minimum)

Types of Company Culture

Which type of culture describes your firm's culture? Why? (specific examples)

Richard Daft Management (4th edition. 1997. P. 94).

Baseball Team Culture: Emerges in an environmental situation with high-risk decision-making and fast feedback from the environment. Decision makers quickly learn whether their choice was right or wrong. Talent, innovation, and performance are valued and rewarded. Top performers see themselves as free agents and companies scramble for their services. Performers with low batting averages are quickly dropped from the lineup. Baseball team cultures are found in fast-paced, high-risk companies involved in areas such as movie production, advertising and software development where futures are bet on a new product or project.

Club Culture: Characterized by loyalty, commitment, and fitting into the group. This stable, secure environment values age and experience and rewards seniority. As in the case of career military personnel, individuals start young and stay. Club cultures promote from within, and members are expected to progress slowly, proving competence at each level. Individuals tend to be generalists and may have vast experience in a number of organizational functions. While many club qualities contribute to flexibility within the organization, they can also contribute to the perception of a closed company, reluctant to change.

87

Academy Culture: Hires young recruits interested in a long-term association and a slow, steady climb up the organization. Unlike the club culture, however, employees rarely cross from one division to another. Each person enters a specific track and gains a high level of expertise in that area. Job and technical mastery are the bases for reward and advancement. Many long-established organizations such as universities, Coca-Cola, Ford and GM maintain strong academy cultures. Although specialization provides job security, this culture may limit broad individual development and interdepartmental collaboration, but it works very well in a stable environment.

Fortress Culture: Emerges in an environmental survival situation, in former dominant industries now retrenching for survival. Offers little job security or opportunity for professional growth while companies restructure and downsize to fit the new environment. This culture is perilous for employees but also offers tremendous turnaround opportunities for individual managers with confidence and love of challenge. Those who succeed, such as Lee laccoca (Chrysler), earn recognition nationally or within the industry.

Corporate Culture Analysis

Environmentally Adaptive versus Unadaptive Corporate Culture*

* Source: Kotter, J.P., Heskett, J.L. Corporate Culture and Performance. N.Y.: The Free Press, 1992. P. 51.

88

– How would you describe your firm? Give specific examples.

Your Company Culture

Answer yes or no. Provide a specific example for each answer.

Do people dress formally?

Does everyone have lunch in the same place? Is there a high turnover of staff?

Do people use first names?

Are people consulted about policies affecting them? Is there a good relationship with management?

Do people socialize out of work? Are decisions made quickly? Are people forward-looking?

Are people (employees) aware of the market for your product or service?

Is everyone involved in the quality process? Do people work as a team?

Do people keep strict times? Do people make jokes?

– In your opinion, do these things matter? Does the right combination make employees more productive and the company more successful? Which and why?

Questions you should be able to answer fluently at an inter-

view:

1.Why is corporate culture important at your company? How does it impact the company's success?

2.Why are symbols important? What stories, heroes, slogans and ceremonies have symbolic value at your company?

3.Do the values of your company fit the needs of the external environment and of the employees? Is the existing culture right for your company?

4.How are you trying to change the corporate culture in a positive direction?

5.Are there any culture clashes within your company right now? How does the culture of your department / section / unit differ from the overall corporate culture?

6.Do your competitors have a similar corporate culture?

7.How would you describe the corporate culture of your PMTI

program?

8.What do you use to assess the corporate culture of other com-

panies?

9.How does your national culture influence the corporate cul-

ture?

Focus: How would you rate your company's corporate cul-

ture?

Rate each statement on a scale of 1 – 5.

1 = Strongly DISAGREE. 2 = Disagree. 3 = Neutral/Mixed. 4 =

=Agree. 5 = Strongly AGREE.

1.Virtually all managers and most employees can describe the company's values, purpose and customer importance.

2.There is clarity among organization members about how their jobs contribute to organizational goals.

3.It is very seldom that a manager will act in a way contrary to the company's espoused values.

4.Warmth and support of other employees is a valued norm, even across departments.

5.The company and its managers value what's best for the company over the long term more than short-term results.

6.Leaders make it a point to develop and mentor others.

7.Recruiting is taken very seriously, with multiple interviews in an effort to find traits that fit the culture.

8.Recruits are given negative as well as positive information about the company so they can freely choose whether to join.

9.Employees are expected to acquire real knowledge and mastery – not political alliancesbefore they can be promoted.

10.Company values emphasize what the company must do well to succeed in a changing environment.

11.Conformity to a company mission and values is more important than conformity to procedures and dress.

12.You have heard stories about the company's leaders or heroes who helped make the company great.

13.Ceremonies and special events are used to recognize and reward individuals who contribute to the company in significant ways.

Total: _______________________________________________

Compute your total score.

If your total score is 52 or above, your organization has a strong culture.

A score from 26 to 51 suggests a culture of medium strength, which is positive for the organization.

A score of 25 or below indicates a weak culture, which is probably not helping the company adapt to the external environment or meet the needs of organization members.

*What are the pros and cons of a strong culture?

**Does a strong culture mean that everyone has to be alike? Source: Richard Daft. Management, 4th edition, 1997. p. 100.

Executive Summary

Most important section.

Must entice reader / listener to want to know more about what makes the venture worthy of support.

Prepare it after you have prepared the rest of your plan.

Objective:

–To get the reader to keep on reading.

–To highlight the most significant points of each section clearly and concisely.

–To demonstrate clarity of management objectives.

–To show opportunity.

Concept:

–Why is this plan worth pursuing (first to introduce this product in Russia, customer demand being generated from market research, etc.)? What is so attention-grabbing about this plan? What is your edge?

–What is the nature of the business: type / industry, state of operation, goals reached and the results (sold x amount of...)?

–What is the business status? (start-up, takeover, expansion, cash flow shortage, etc.) What stage is your plan in (research & development, prototype, operational) How long has the business been operating (or been in development)?

–What will be the form of organization (sole proprietorship, partnership, limited partnership, non-profit / charity / NGO, corporation, etc.)?

–Where will the business be located?

–What is advantageous about this location? What type of venture (new idea) is this (merchandising, manufacturing, distribution, service)?

Product / Service:

–What products / services will it offer?

–Why are they unique?

–Do they solve a significant problem?

–Do they address a major opportunity?

Market:

–Who and what is the target market?

–What percent of the available market will you obtain?

–What is your plan and strategy for entering the market? Where and how will you sell your product (your own outlets, other outlets)?

–Who is the competition?

–What are their strengths and weaknesses?

–What is their market share?

Manufacturing / Operations

What are the processes involved in producing your product and getting into the marketplace? What areas of specialization and technology have you pioneered in the production of the product? Do you plan to subcontract or license manufacturing/operations? Under what arrangement and why is this advantageous?

Management

–Who is going to manage the business?

–What qualifications are needed to manage this business?

–What is the experience, education and background of the prin-

cipals?

–What are the time frames for accomplishing the goals? What support personnel will be needed as the company grows?

–How could you show that people involved are qualified and committed?

–Funding Request and Times of Investment

–How much money is needed to make this venture successful?

–How much money is needed for product improvement

–How much money is needed for marketing?

–How much money is needed for operations? What kind of financing are you looking for? (debt, equity)

–What are you offering in return? (ownership – how much?; share of profits)

What is the payback period?

What is the potential return on investment?

What are the earning projections for the next three to five years? Will any tax benefits result from investment?

How much money has been invested to date?

Goals and Time Frames:

What still needs to be done and when? What phases and time frames are expected?

What is your interest (financial and otherwise) and long-term objective?

What are the decisive strengths of the business (what will make it successful)? (management, skilled / experienced personnel, unique product / service, constant source of supply, low production / overhead, high margin, good service, emphasis on quality) What are the limitations on the business? (capital, management resources, personnel)

What are the venture's long-range growth and expansion objec-

tives?

Management and Ownership

Objective:

–To demonstrate that the management and leadership are capable, fairly compensated and given every incentive to be successful.

–To demonstrate proper balance and adequate expertise in all areas of marketing, management, technical finance, manufacturing, etc.

–To show the ownership distribution, who the owners are, and how much they own.

Management

Who are your key managers?

What is the personal history of each key manager / principal? (age, education, experience, skills, etc.)

What does each key manager bring to this venture (distinctive competence)? (years of direct experience in industry, track record, length of time with this project, business management background)

What is the position and role of each principal? (title, responsibilities, duties)

What is the compensation package of each principal? (salary, profit sharing, bonuses and other fringe benefits, terms of employment)

What is the ownership interest of each principal?

Has the loss of a key member of your team been considered from a knowledge, information and learning curve perspective? From a management succession point of view?

How will you minimize the negative impact of losing or having to fire key managers? How do you intend to attract and compensate additional key people as the company grows? Are English-language resumes and references available?

Board of Directors

Who is on the board of directors? How were they chosen? Why are they valuable to the business? What is their field of expertise? What are their other corporate affiliations? How are they compensated? How often do they meet? How much control and influence do they wield?

Ownership

Who owns what and how much?

What is the primary objective of the current owners and managers? (sell out in x number of years, buy out investors, license idea for royalties, franchise idea, etc.)

What is the amount of stock currently authorized and issued? Who are your current stockholders?

How many shares does each own? What are the warrants, rights, options?

Professional Support Resources

Who is on your outside professional consultant team? (legal, financial, marketing, public relations, technical/systems, accounting, etc.)

Who are the industry experts who give support to your management team?

How has each one assisted or will assist in the development and ongoing management of your company?

Product and Related Services

Objective: to describe the product and related services, special features, benefits, and future development plans in non-technical language.

Description of the Product / Service:

What is the purpose of the product/service? How does it work?

Was the product designed to solve a problem or address an opportunity?

Is it a luxury item or a necessary item? Who is it for? How does the product achieve this purpose?

What are its unique features (cost, design, quality, capabilities, benefits, etc.)? What is the life cycle of your product or service?

What is its technological life?

How does it compare with the state of the art? What is its susceptibility to obsolescence? To change in style or fashion?

What stage of development is the product in (idea, model, working prototype, small production runs, full manufacturing / production)?

If more than one product is involved, how will the manufacture and promotion of one affect the other? How does this product compare to similar products of competitors?

95

Do you have a third-party evaluation available? What are the related services you will provide?

How will they enhance and increase the profitability of the ven-

ture?

Description of the Facilities

How will the product be produced?

Is it capital-intensive? Is it labor-intensive? Is it materialintensive? What are any special manufacturing or technological considerations?

What are the maintenance / updating requirements? What equipment do you need?

What is its reliability factor?

What is its downtime? What inventory do you need?

Do you depend on special suppliers to successfully operate your business? What is the current production capacity in units of output?

Can your current facility handle future growth demands? Will all or some of the production be subcontracted? Will the current production philosophy change in future years? How? Is this an end-use item or a component of another product?

Does your company's survival depend on someone else? Why is the location advantageous?

Proprietary Features

Can your product be protected by patent, copyright, trademark or service mark?

What protection will be provided?

How do you plan to protect the integrity, confidentiality and competitive nature of your product and services? What are the regulatory or approval requirements from government agencies or other industry participants

Is there a lot of red tape to overcome? How will you do it?

Future Development Plans

What new products do you plan to develop to meet changing market needs?

How will you stay ahead of market needs (improvements, extension of current product / service line, plans for other product / services)?

96

What are the time frames for your plans? How will these plans increase profits or generate new profits?

Product liability

What are the liabilities this product may pose?

What are the insurance requirements? How do you plan to limit the company's liability? What kind of engineering studies, testing, and evaluating has the product undergone?

Market Analysis

Objective:

–To demonstrate that you understand the market, that you can penetrate it, and that you are in control of the critical success factors that will enable the company to reach its sales goals.

–To prove there is a real demand for your product / service.

Target Market and Characteristics:

Who or what is your target market? (individuals, companies –

small, medium, large, government agencies, etc.) What is the size of your target market?

Can this market be segmented (by geography, by industries, etc.)? How?

What is the profile of your targeted customers? (age, sex, profession, income, geographic location, etc.)

What are the major applications of your product or service?

For each major application, what are the requirements by customers?

What are the requirements of regulatory agencies? What are the current ways of filling these requirements?

What are the buying habits of the customers? What will be the impact on the customers who use your product or service?

How much will they save?

What is their return on investment (benefit to them)? Will they have to change their ways of doing things?

Will they have to purchase other goods and services to utilize yours?

Will they change their work habits?

How will you satisfy their need and wants better?

Analyst Summaries

What quotes and statements from reputable sources can you provide? How do they summarize significant market opportunities?

Market Share, Trends and Growth Potential What share of the market do you hope to capture?

What is the growth (historical and potential) of your market? What are the market trends? (industry-wide, regional, local) Is the market seasonal?

What factors will affect it (economic, government regulation, etc.)? What are your market share objectives for the total available market? What are your rationale and costs of achieving different levels of penetration? How will you maintain and increase your market share?

How will you satisfy current customer needs? How will you attract new customers?

How will you offer something new, better, or unique?

How will the segments and applications of your market change over the next 3–5 years? Are your products / services bought by others to service their customers?

How does their industry look?

What kind of business are they doing?

Sales, Distribution and Profits by Product / Service:

Are your sales expectations in line with the manufacturing ability to produce it?

Are your pricing, service, and warranty policies attractive and competitive in the marketplace?

What does each product / service cost you to sell?

What does each product / service cost you to produce? What have your profits been by product / service?

What will they be?

What are your current sales goals by product / service? What are your current goals by number of units? What is your sales volume in dollars / rubles?

How will you distribute your product? (direct, dealer network, wholesale, retail, manufacturer's representatives)

Will it be distributed under your name or someone else's?

If transportation is involved, what are the implications of exporting? Importing? Taxes? Tariffs? Duties? Barriers? Foreign exchange

and other concerns? Have you received reactions from prospective customers?

What was their reaction?

Have they tested a realistic prototype?

Service and Warranty Policies:

What is the normal practice in your industry? Are they needed? Will they help you sell your product?

Management

Home Improvements, Inc., was founded in 1991 by Michael X. Swann, who, after a careful study of the exterior siding industry, found a tremendous void of service and quality products.

This became the principal reason that Mr. Swann wanted to start his own distribution company in the industry. The opportunity to create an entity that offered superior service and products was reflected in his enthusiasm to begin Home Improvements, Inc.

The legal form of Home Improvements, Inc., is an Arizona Corporation.

Of the people who make up the development staff, there are several executives, who hold the following positions:

Michael X. Swann, President Mary V. Jonstone, Vice President – Finance Roger Armstrong, Director of Marketing John Herbert, Manager of Production

The founders and key managers of HII have combined experiences exceeding 25 years in the siding and distribution industry.

The strength of the HII management team stems from the combined expertise in both management and sales areas. This has produced outstanding results over the past year.

The leadership and alignment characteristics of HII's management team have resulted in broad and flexible goal setting to meet the ever-changing demands of the quickly moving marketplace requiring our products. This is evident when the team responds to situations requiring new and innovative capabilities.

Responsibilities

Michael X. Swann, President and General Manager.

Manage market planning, advertising, public relations, sales promotion, merchandising and facilitating staff services. Identifying new markets, maintaining corporate scope and market research. Researching and identifying foreign markets.

Mary V. Jonstone, Vice President – Finance.

Management of working capital including: receivables, inventory, cash, and marketable securities. Financial forecasting including: capital budget, cash budget, pro forma financial statements, external financing requirements, and financial condition requirements.

Roger Armstrong, Director of Marketing.

Manage field sales organization, territories, and quotas. Manage sales office activities, including customer/product support/service.

John Herbert, Manager of Production.

Service, manufacturing, raw materials management, and installa-

tion.

Outside Support

An outside Board of Directors, including highly qualified business and industry experts, will assist our management team to make appropriate decisions and take the most effective action; however, they will not be responsible for management decisions.

Management Team

Michael X. Swann, President.

Mr. Swarm's professional experience includes many different areas in the sales and distribution arena. He has been involved in sales, marketing, and distribution of several services and products for large corporations such as: Big Shoe Stores, Fresh Pine Inc., and Home Siding 4 You. His experience covers many diverse areas, and he has received several awards as the top sales representative for his efforts.

After learning the basic techniques of the siding industry, Mr. Swann worked with the development of sales and distribution for Home Siding 4 You (HSY).

While working for HSY, Mr. Swann was involved with the implementation of a sales and marketing program that increased the company's revenue by 45 percent.