Prof. Dr. Ahmad Sayed Mustafa

By:Karim HashemTamer BadawiTarek Abdel LatifWalid Helmy

Towards an Egyptian Global Manager an

Application on Coatings Industry

1. Introduction

2. Theoretical Framework

3. Literature Review

4. Research Problem

5. Research Objectives

6. Research Methodology

7. Conclusion

Table of Contents

Introduction

What is Globalization?

Globalization is the process of integration of cultures. It comes about from the interaction

of people from different cultures and societies. It is driven by the process of international

trade and investment. The information technology field also has a great hand in the

process. It has opened the way for greater and easier communication among people.

Technology has been the other principal driver of globalization. Advances in information

technology, in particular, have dramatically transformed economic life. Information

technologies have given all sorts of individual economic actors—consumers, investors,

businesses—valuable new tools for identifying and pursuing economic opportunities,

including faster and more informed analyses of economic trends around the world, easy

transfers of assets, and collaboration with far-flung partners.

Introduction cont

Who is a Global Manager?

A global manager is someone who knows how to conduct and manage business across

borders. The global dimensions of business and management, though pervasive, pose

many complications for a national or local organization to overcome.

Skills Required:

A global manager needs to have the skills to deal with expatriate work assignments.

Basically, s/he will have to undergo three phases of adjustment to the new country. First is

the tourist stage, in which s/he enjoys discovering the new culture; second is the

disillusionment stage, in which his or her mood is dampened as difficulties become more

evident.

Theoretical Framework

A business leader or manager needs to be strategic in his or her thinking. Strategic

leadership involves:

- The capacity to learn,

- The capacity to change,

- Managerial wisdom.

According to Rhinesmith (1992), a global manager needs: global mindset and be able to

trust organizational processes rather than structure to deal with the unexpected; value

diversity and multicultural teamwork; views change as an opportunity; and are

comfortable with surprises and ambiguity.

Theoretical Framework cont

Why Egypt need Global Managers?

- To meet the challenges of increasingly international operating environment, exploring

and developing global competencies of people throughout the organization becomes

essential for companies, whether the main market is at home or abroad.

- Export of the main objectives for Egypt to be able to:

1- Cover trade balance between balance of payments and balance of revenue.

2- Reduce Public Debt.

3- Reduce Unemployment Rate.

Literature Review

In his autobiography, former South African president Nelson Mandela recalls his dismay

when he boarded an airplane and found that the pilot was African. With shock, he realized

his reaction was exactly what he had been fighting against all his life. Mandela was

discussing racism, but the same involuntary reactions surface in commerce. Consider

labels such as "Made in Brazil" and "Made in Thailand." Someday they may be symbols of

high quality and value, but today many consumers expect products from those countries to

be inferior. Unfortunately, that perception is often shared by managers of the local

companies that are striving to become global players.

Literature Review cont

Disadvantages of Globalization:

- The main disadvantage of globalization is that rich countries become richer and the poor

ones remain poor, because the demand for the developing and underdeveloped countries is

very low. Hence entrepreneurs like to invest in those countries where they will be able to

make good profits.

- Another major damage of globalization is that some cultures are getting lost. The cultures

of the countries that have more economic power are more dominant than others. Because,

wealthy countries produce many things that can affect cultures, for example, clothes,

movies and technologic products.

Research Problem

How Egypt can raise global managers?

• Selection Criteria:

1- Technical expertise and knowledge are used as the most important selection criteria.

2. Leadership qualities.

3. Good organizational skills and adaptability.

Kealey’s model for overseas effectiveness.  

E (Effectiveness) = F (Professional expertise + Adaptation + Intercultural interaction +

Situational readiness)

Research Problem cont.

Explanation Kealey’s model:

- A successful international assignment, managerial effectiveness is the ability to live and

work effectively in the cross-cultural setting of an assignment.

- Effectiveness is a function of professional expertise, ability to adapt to one’s host

country, intercultural communication skill to interact with the locals, and situational

readiness such as having family that is willing, able, probably excited to take the

assignment.

Research Problem cont.

What parties should be involved?

Local Adaptation:

• International Strategy: appropriate when there is little foreign business –

knowledge transfer from the centre of headquarters. Coordination cost is low.

• Multinational Strategy: Cross-border advantages of standardization and

learning are low. Coordination-costs are lowest.

Global Integration:

• Global Strategy: Advantages of standardization of policies and practices.

Strong centralism. Coordination costs are high.

• Transnational Strategy: uses advantages form globalization, localization and

cross border learning simultaneously. Coordination cost is highest.

Research Objectives

- Research will study the impact of support Paints & Coatings industry in Egypt will help

Egypt to go global.

- Coatings industry in Egypt statistics confirm that no domestic or commercial arena

remains unaffected, with applications ranging from household and decorative paints, to

coatings used in the automotive industry.

- The paints and coatings industry consists of manufacturers of paints, varnishes,

lacquers, shellacs and stains. It includes two distinct sub sectors -- architectural and

industrial -- which are about equal in size in terms of value of shipments.

Research Objectives cont.

Research Objectives cont.

Total investment in Paints & Coatings sector in Egypt is 11.2 billion LE and the number

of employees is 12,000. Table below illustrate total export for paints & Coatings during

2005 – 2007 divided by region:

Research Methodology

Research Questions:

While Egypt building global manager, what will be obstacle will be face? and how Egypt

can overcome these obstacles? What will be the best business field can Egypt focus for

Globalization?

What are the expected obstacles?

Global Management techniques are needed in order to operate under these conditions.

Some of the problems with which a global manager deals may include:

- Obtaining appropriate permits to operate a business in another country.

- Securing the right to sell a product in another country, in compliance with that

country's laws .

Research Methodology cont.

What are the expected obstacles?

- Complying with the rules for foreigners working in other countries.

- Understanding the employment laws of other countries.

- Managing international tax consequences of importing , exporting goods & services.

- Understanding the business culture of other countries.

- Understanding the social customs of other countries.

- Determining international branding and advertising needs.

Research Methodology cont.

How to overcome these obstacles?

McCall and Hollenbeck’s (2002) interviewed 102 executives and identified 27 lessons of

international experience that were further categorized under six broader themes:

 

- learning to deal with cultural issues,

- learning to run a business,

- learning to lead and manage others,

- learning to deal with problematic relationships,

- learning about the personal qualities required of a leader,

- learning about self and career.

Research Methodology cont.

Hypothesis:

H0: will government support will help Egypt to increase export of Paints & Coatings?

Paint and Coating Exporters’ Population and Sample Size:

The general objective of the study aims mainly at promoting exports at sector level and the

specific objectives are to carry out:

1) an export support study for painting and coating industry

2) a simple industrial profile model with expected economic indicators for a

medium scale project for producing two types of paints and a type of resins.

Research Methodology cont.

The study depends on the direct interview with the key players of the sector and three

sources of secondary data:

1) statistics from reliable sources;

2) information from previous studies and reports;

3) information on international markets from reliable websites.

Research Methodology cont.

Research Methodology cont.

Research Methodology cont.

Research Methodology cont.

Research Methodology cont.

Conclusion

- Paints & Coatings sector may be one of sector can lead Egypt for globalization.

- Government support required to this sector to be able to face threats facing this sector.

- The financial return is not the only return of the export support; there is social impact as

well. The export support will improve the performance of the sector and attract new

investments as a result of increased production. These investments will increase the

direct and indirect employment.

- The new technologies in shifting into Low & Zero-VOC products, Green Chemistry,

Hybrid Paints, Energy-Efficient Coatings, Nanotechnology & other trends will require

extensive investment in R&D activities and manufacturing equipment development

Thanks