Harvard Case - Ellen Moore (A): Living and Working in Bahrain
"Ellen Moore (A): Living and Working in Bahrain" Harvard business case study is written by Henry W. Lane, Gail Ellement, Martha L. Maznevski. It deals with the challenges in the field of General Management. The case study is 16 page(s) long and it was first published on : Jan 1, 1990
At Fern Fort University, we recommend Ellen Moore, the CEO of the newly acquired Bahraini subsidiary, adopt a strategic approach that prioritizes cultural sensitivity, employee empowerment, and operational efficiency. This approach should be implemented through a phased strategy focusing on building a strong foundation of trust and understanding, fostering a collaborative and inclusive work environment, and leveraging technology to optimize operations and enhance customer service.
2. Background
This case study focuses on Ellen Moore, an American executive tasked with leading the newly acquired Bahraini subsidiary of a multinational corporation. Ellen faces several challenges, including navigating a new culture, managing a diverse workforce, and adapting to the local business environment. The company, initially known for its strong performance in the US market, is now seeking to expand its operations into the Middle East, a region with unique cultural nuances and business practices.
The main protagonists are Ellen Moore, the newly appointed CEO of the Bahraini subsidiary, and the existing Bahraini workforce, who bring a wealth of local knowledge and experience.
3. Analysis of the Case Study
Ellen's situation presents a complex scenario that requires a multi-faceted approach. To analyze the case, we will utilize several frameworks:
a) Cultural Sensitivity and Cross-Cultural Management:
- Hofstede's Cultural Dimensions: Bahrain scores high on power distance, indicating a hierarchical structure with respect for authority. This contrasts with the US's more egalitarian culture, requiring Ellen to adjust her leadership style and communication approach.
- Trompenaars' Cultural Dimensions: Bahrain's culture emphasizes collectivism and long-term orientation, whereas the US leans towards individualism and short-term focus. This difference necessitates a shift in Ellen's understanding of team dynamics and decision-making processes.
b) Organizational Change Management:
- Lewin's Change Management Model: Ellen needs to implement a planned, systematic approach to change, including unfreezing the existing culture, implementing the desired changes, and refreezing the new organizational structure.
- Kotter's 8-Step Change Model: This framework highlights the importance of establishing a sense of urgency, building a guiding coalition, communicating the vision, empowering action, and celebrating short-term wins to ensure successful change implementation.
c) Strategic Planning and Competitive Advantage:
- SWOT Analysis: This framework helps identify the company's strengths (e.g., strong brand recognition, established expertise), weaknesses (e.g., lack of local market knowledge, potential cultural clashes), opportunities (e.g., growing regional market, untapped customer base), and threats (e.g., competition from local players, economic instability).
- Porter's Five Forces: This framework helps assess the competitive landscape by analyzing the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and the intensity of rivalry among existing competitors.
d) Operational Efficiency and Technology:
- Lean Management: This framework emphasizes streamlining processes, eliminating waste, and optimizing resource utilization to enhance operational efficiency.
- Digital Transformation: Leveraging technology, such as CRM, data analytics, and automation, can significantly improve customer service, enhance decision-making, and streamline operations.
4. Recommendations
Ellen should implement a phased strategy to address the challenges she faces, focusing on the following:
Phase 1: Building Trust and Understanding (First 6 months)
- Cultural Immersion: Ellen should actively engage in cultural immersion programs, participate in local events, and build relationships with key stakeholders.
- Open Communication: Encourage open and honest communication with employees, actively listening to their concerns and perspectives.
- Mentorship Program: Establish a mentorship program pairing American employees with Bahraini counterparts to facilitate knowledge sharing and cultural understanding.
Phase 2: Fostering Collaboration and Inclusion (6-12 months)
- Empowerment and Delegation: Empower Bahraini employees to take ownership of their roles and contribute to decision-making processes.
- Diversity and Inclusion Initiatives: Implement programs promoting diversity and inclusion, fostering a sense of belonging and respect for all employees.
- Leadership Development: Invest in leadership development programs for both American and Bahraini employees, focusing on cross-cultural communication and leadership skills.
Phase 3: Optimizing Operations and Customer Service (12+ months)
- Technology Implementation: Leverage technology to streamline operations, enhance customer service, and improve data-driven decision-making.
- Process Reengineering: Analyze and optimize existing processes, identifying areas for improvement and implementing lean management principles.
- Marketing and Brand Management: Develop a localized marketing strategy that resonates with the Bahraini market, considering cultural nuances and consumer preferences.
5. Basis of Recommendations
These recommendations consider the following factors:
- Core Competencies and Consistency with Mission: The recommendations align with the company's mission to provide high-quality products and services while fostering a diverse and inclusive work environment.
- External Customers and Internal Clients: The recommendations prioritize understanding customer needs and building strong relationships with both external customers and internal employees.
- Competitors: The recommendations address the competitive landscape by leveraging technology and innovation to gain a competitive advantage.
- Attractiveness: The recommendations aim to improve operational efficiency, enhance customer service, and foster a positive work environment, all of which contribute to long-term profitability and growth.
6. Conclusion
Ellen Moore's success in leading the Bahraini subsidiary hinges on her ability to navigate cultural differences, build trust and understanding, and leverage technology to optimize operations. By implementing a phased strategy that prioritizes cultural sensitivity, employee empowerment, and operational efficiency, Ellen can create a thriving and successful business in the Bahraini market.
7. Discussion
Alternative approaches could include focusing solely on operational efficiency without considering cultural sensitivity or relying on a top-down management style. However, these approaches carry significant risks, such as employee dissatisfaction, cultural clashes, and decreased productivity.
Key assumptions include the willingness of both American and Bahraini employees to adapt and learn, the availability of resources for cultural immersion programs and technology implementation, and the stability of the Bahraini market.
8. Next Steps
The implementation of these recommendations should be undertaken in a structured and phased manner, with clear milestones and timelines.
- Phase 1 (First 6 months): Conduct cultural immersion programs, establish open communication channels, and launch the mentorship program.
- Phase 2 (6-12 months): Implement diversity and inclusion initiatives, develop leadership programs, and empower employees.
- Phase 3 (12+ months): Invest in technology, reengineer processes, and develop a localized marketing strategy.
By following these recommendations and implementing them in a timely and effective manner, Ellen Moore can successfully lead the Bahraini subsidiary towards sustainable growth and profitability.
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Case Description
Ellen Moore is working for a large multinational financial institution in Bahrain and is offered a promotion to one of two jobs, between which she can choose. When she informs her boss of her choice several days later, he tells her she cannot have the one she chose because it would mean periodic travel in Saudi Arabia, which he believes would not be possible for a woman.
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