College of Administrative & Financial Sciences

Salmabad, Kingdom of Bahrain

Instructions:
1 Conduct a research based on the topic given to you. Submit your narrative report at
least one week before your presentation.
2 Prepare your presentation once the narrative report is approved. NO APPROVED
NARRATIVE REPORT, NO PRESENTATION, ZERO GRADE IN THE FINAL PROJECT.
3 Presentation is 15 minutes per group. Mastery of the topic is important. No reading
of the slides. Make a smooth transition of your report.
4 You will report on the scheduled date and time. No changes will be allowed. No
presentation, ZERO GRADE for the FINAL PROJECT.
5 Complete this cover sheet and attach it to your activity output.
Students’ Declaration:
I declare that:
I understand what is meant by plagiarism (illegal copying of one’s work)
The implication of plagiarism is tantamount to cheating
This project/activity is all my own work and I have acknowledged any use of the published and unpublished
works of other people.
Total number of pages including this cover page

Program Course Section Due Date Date Submitted

Time/Days
BSIB BSIB421
Course Title Principles of International Management
1.
Students’ Full Name 2.
& Signatures 3.

Professor’s Name DR. MARIA CECILIA P. LAGARAS, CPA

FOR OFFICIAL USE ONLY
Marking Scheme
Raw Scores
The students must be able to:
Scores
PART 1 – 5 50
PRESENTATION 10
TEAMWORK 10
70
Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA L. URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain

FINAL PROJECT PRESENTATION

MARKING RUBRICS
10-9 8-6 5-3 2-0
 knowledge of issue is  issue is accurately  issue is explained  issue needs to use
exceptionally accurate explained and uses with some accuracy more accurate
and is explained clearly many details and but need more information and
and effectively during various sources in details and more details or
explanation using presentation with variety in sources examples
Analysis of the details and little reliance some reliance on and less reliance on heavy reliance on
Case on notes note notes notes during
 exceptional critical  proficient critical  some critical presentation
comments and analysis comments and comments given  lack of critical or
of issue / analysis of issue to issue and analytical thought
interpretations /interpretations and effects in comments and
/ impact / effect / using impact using many  more details, little to no insight
details, insight, evidence details and evidence insight and critical used
from comprehensive and some insight thought needed
thought
Organization &  Report is exceptionally  Report is detailed,  Report is somewhat  Report needs to
Writing detailed, organized, organized, logical organized and be more organized
logical and includes and includes images, includes some and logical
images, clear and large clear and large font images
font

10-9 8-6 5-3 2-0

Presentation of  exceptional delivery  proficient  -elivery and timing of  poor delivery and
Report and timing of delivery and information needs to timing of
(10 Marks) information timing of be more smooth (too information
 exceptional discussion information much reading)  discussion needs
initiated and  proficient discussion  more active to be more
maintained to further started and interaction controlled and
student learning maintained and dynamic
discussion
COMMENTS:
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain

IN-COURSE PROJECT

General Instructions:
1. Form a group with 3 members.
2. Conduct a Research on:

Title: Chinese Flavors for American Snacks

Learning Objectives
The purpose of this case is to help you:
1. Explore cultural differences across markets.
2. Identify how national culture influences firm strategy.
3. Recognize the impact of foreign companies on the host country.

Synopsis

The brands in the busy supermarket in Beijing may be recognizable to most

Americans, but the flavors certainly are not. Lays potato chips sold in Beijing are
blueberry flavored rather than sour cream and onion. Cheetos come in strawberry
and milk, and Minute Maid sells aloe juice instead of orange juice. American
companies hoping to capitalize on China’s $186 billion fast food and processed food
market have entered the country en masse. However, while they are selling the
same brands they sell in the United States, they have developed much different
flavors in the hopes of better attracting Chinese buyers.

Frito Lay recognized early on that Chinese taste buds were quite different from
American taste buds. Popular flavors in the United States did not appeal to Chinese
consumers prompting Frito Lay and other U.S. companies to research Chinese
preferences and develop products specifically for the local market. Accordingly,
Tropicana sells cantaloupe juice, Chips Ahoy cookies are orange flavored, and
Wrigley’s sells Chinese herbal medicine gum. Even toothpaste companies are
selling products designed to tempt Chinese consumers. Crest sells a lotus flower
flavored product, while Colgate offers salt flavored toothpaste. U.S. companies
focused on the Chinese culture as a starting point for developing new product
flavors. Product researchers inspired by traditional Chinese cooking came up new
flavors like Szechuan spicy, sweet and sour tomato, and mango. Pepsi Co’s Harry
Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain
Hill points out

Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain
that because the market is so competitive, new products are being launched on a
regular basis.

The same trend is changing the strategies of fast food companies in China.
McDonald’s has introduced purple taro pie, Starbucks sells drinks with jelly cubes
on the bottom, and spicy squid on a stick is available at Kentucky Fried Chicken.
Analysts note that while the flavor game may seem a bit outrageous to some, in
China it is serious business. The country will soon be if not the largest, the second
largest consumer market in the world. Companies need to ensure they are doing
everything they can to capture a share of the market.

The following are your guide questions in making a report

1. Discuss the implications of globalization on the food industry in China.
2. What makes China so attractive to U.S. food companies? Discuss why it
is important to gain market share in the country. How has Frito Lay
approached the market?
3. How is Western culture influencing China’s culture?
4. Discuss how companies like Frito Lay and McDonald’s are contributing to
this change. What are the implications of this trend?
5. Assuming that you the Head of Human Resource Department of one the
international companies, and you are in the process of training managers
for overseas assignments. Would a global leadership program be a useful
approach? Why, or why not?

Part of the Report: (10 marks each part)

Part 1. Globalization of Food Industry in China and its Implication
Part 2. Consumer Market in China
Part 3. Influences of Western Culture on China’s Culture
Part 4. Managerial Decisions
Part 5. Global Leadership Program

3. Write proper citation and referencing in your report.

4. Write your report in A4 paper and the font is COURIER NEW.
Side left margin is 1.25 and the right side margin is 1.0
5. Upload your narrative report to the Moodle.
6. Present your research output within 10-15 minutes.
7. Your Final Project marks will be based on the given rubrics.
Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain
8. The group has to write their own project.
9. Maximum similarity index is 20% (Plagiarism Report)
COPIED PROJECT will be mark ZERO for all the groups.

Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain
Part1:

China is establishing itself as a major player in the global food chain. The nation has become a major outbound capital
investor, enabling agribusiness mergers and acquisitions as well as new agri-food trade flows from East to South and East
to North.
The present reconfiguration of the global food system, as well as its social, political, and economic dimensions, is
important for understanding the current global economy's wider change.

There has been a broad re-centering of the world economy on East Asia, and within East Asia, on China, in recent times.
The Chinese government, for example, is pursuing the Belt and Road Initiative as well as creating new post-Bretton
Woods financial governance structures. The Asian Infrastructure and Investment Bank, headed by China, and the New
Development Bank are two examples.
The global food system is in a moment of change as a result of this larger restructuring of the global economy.
Multipolarity, China's reemergence, and new mercantilist agriculture policies have all played a role in this period of
environmental change.
The Chinese government's export-led economic development strategy has allowed them to amass enormous foreign
currency reserves. China's foreign currency reserves were about $30 billion in 1990, accounting for 8% of GDP. Reserves
have risen to $3.2 trillion, or 44 percent of GDP, by 2011.
Despite occasional dips, China's government retains the world's biggest foreign currency reserves and continues to
diversify its reserve holdings. The Chinese government had about $3.1 trillion in foreign currency reserves in January
2020.
This is significant because some academics have found connections between the acquisition of huge sums of foreign
capital reserves and China's new mercantilist practices. These are having a significant effect on key industries including
food, energy, and finance, as well as the global agricultural and food industry.
The expansion of state-owned businesses and sovereign wealth funds, as well as their increasingly strong roles in global
value chains for food, feed, money, and fuel, is another significant element of this transitional phase in the global food
system.
Finally, China's largest state-owned food company, China Oil and Foodstuffs Corporation (COFCO), has recently
completed a series of mergers and acquisitions and is now in a market position in the global economy to compete with the
big four Western grain giants, Archer Daniel Midlands, Bunge, Cargill, and Louis Dreyfus, which have historically
dominated the global grain trade.
The worldwide food price crisis of 2008, as well as the following volatility in food prices, provided as a sharp reminder to
policymakers of the intricate interconnections between food prices, energy costs, and food poverty. It also showed that
policies relying only on food imports from global agri-food markets are insufficient to provide national, regional, or global
food security. Many nations in the Global South that import food are particularly susceptible to global food price increases
and volatility.

Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain

Part2

Attractive for US Food  Investors

Chinese consumers are increasingly adopting healthy lifestyle habits and buying organic foods.
The focus on wellness is changing their purchasing behavior and creating new opportunities and challenges for foreign
investors in China's food and beverages industry.
Foreign firms selling to China should note that there are distinct regional variations in the country's markets, which influence
the size and scope of the health foods segment.
China imposes its own national standards and does not recognize international accreditation; foreign manufacturers and
suppliers need to comply with local standards or face legal risks.
However, foreign firms that want to sell health food products in China need to pay special attention to its legal and regulatory
provisions. At present, China refuses to recognize international standards for organic food products and imposes its own
national standards.
To legally sell health products in China, businesses need to obtain the Health Food Approval Certificate issued by the China
Food and Drug Administration (CFDA) for every functional food and nutritional supplement.
 

Frito-Lay had to establish its own farms in order to grow potatoes acceptable to company standards. Early adaptation to local
markets required Frito-Lay to make significant changes. For example, Frito-Lay's Cheetos sold in China do not contain any
cheese due to the propensity of the Chinese to be lactose intolerant.
 

Frito-Lay has maintained its status the largest global distributor of snack foods through not only its strategic acquisitions of
now iconic food brands like Smartfood, but also its ability to anticipate changes in consumers preferences with its evolving
product portfolio

Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain
Part3

In China, American products and ideas have flourished in the past 10 years.

Western culture is huge in China, from clothing to coffee, cuisine, and movies, and it's just growing larger. For example, KFC is
the most popular food chain in the nation, while Buick is the most popular automobile.

The Chinese government, on the other hand, is currently resisting this influence. China's culture is being invaded by hostile
Western forces, according to President Hu Jintao.

The Chinese government has imposed additional restrictions on the media in the country. First, they ordered the cancellation
of many racy and popular TV programs, as well as the removal of others from prime time viewing periods.

On this topic, however, not everyone agrees with the Chinese government.

Wang Tingting, a Beijing-based insurance executive, is certain that Western culture will not take over China.

“I think both cultures are excellent. They should complement one other rather than compete,” he added.

Part4

Frito-Lay has long dominated the snack-food business by relentlessly focusing on the middle swath of America that eats chips
and pretzels and party mix without regard to the effect on the waistline.
Now, though, Frito-Lay, a unit of PepsiCo, is building a “company within a company” to pursue what might be called a 1
percent-99 percent strategy: creating high-end snacks as well as those that appeal to what it diplomatically calls “value”
customers.
The effort is all about what Tom Greco, president of Frito-Lay North America, has called the “bifurcation” of American
snackaholics.
By that, he meant that “the rich are getting richer and the poor are getting poorer,” said Ann Mukherjee, chief marketing
officer at Frito-Lay North America.
“Demographics, the aging population and changing ethnic mix, and bifurcating income are the trends reshaping the way
people are eating,” Ms. Mukherjee said. “We’re snacking more often during the day, and we’re looking for snacks that are more
satisfying physically and healthier.”

Mr. Naor’s unit is instead cultivating grocery store deli managers and brokers who sell niche snacks and using warehouses to
supply them, relying on relationships that Frito-Lay has already established with outlets like schools and vending machine
operators.

Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain
That, Ms. Hong said, “will allow them to nurture these brands with more patience as they grow.”

Some new premium products are already being sold in Citarella, a high-end food market with stores in New York City, for
instance, as well as in the deli sections and so-called natural aisles of major grocery chains. Later this summer, Taqueroswill
go on sale in dollar stores,bodegas and other discount outlets.

Referring to Taqueros, Mr. Naor said, “It will have different packaging than our mainstream brands and be heavily aimed at
the Hispanic market, where we are targeting it more as part of a meal occasion than a snack.”

Mr. Balzer said it was not just Hispanic families who were adding chips to their meals as side dishes.

“They are the easiest side dish to serve with the No. 1 dinner tonight, which will be the sandwich,” he said. “Snacks aren’t just
snacks anymore.”

Part5:

Companies that have a strong track record with expats put a candidate’s openness to new cultures on an equal footing with
the person’s technical know-how. After all, successfully navigating within your own business environment and culture does
not guarantee that you can maneuver successfully in another one. We know, for instance, of a senior manager at a U.S.
carmaker who was an expert at negotiating contracts with his company’s steel suppliers. When transferred to Korea to
conduct similar deals, the man’s confrontational style did nothing but offend the consensus-minded Koreans—to the point
where suppliers would not even speak to him directly. What was worse, the man was unwilling to change his way of doing
business. He was soon called back to the company’s home office, and his replacement spent a year undoing the damage he left
in his wake.
How do you weed out people like the man who failed in Korea? The companies that manage expats successfully use a variety
of tools to assess cultural sensitivity, from casual observation to formal testing. Interestingly, however, almost all evaluate
people early in their careers in order to eliminate some from the potential pool of expats and help others build cross-cultural
skills.
Although the companies differ in how they conduct their assessments, our research shows that they seek the following similar
characteristics in their expats:

A Drive to Communicate.
Most expats will try to communicate with local people in their new country, but people who end up being successful in their
jobs are those that don’t give up after early attempts either fail or embarrass them. To identify such people, the most effective
companies in our research scanned their ranks for employees who were both enthusiastic and extroverted in conversation,
and not afraid to try out their fractured French or talk with someone whose English was weak.

Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :
 College of Administrative & Financial Sciences
Salmabad, Kingdom of Bahrain

Broad-Based Sociability.
The tendency for many people posted overseas is to stick with a small circle of fellow expats. By contrast, successful global
managers establish social ties to the local residents, from shopkeepers to government officials. There is no better source for
insights into a local market and no better way to adjust to strange surroundings.

Cultural Flexibility.
It is human nature to gravitate toward the familiar—that’s why many Americans overseas find themselves eating lunch at
McDonald’s. But the expats who add the most value to their companies—by staying for the duration and being open to local
market trends—are those who willingly experiment with different customs. In India, such people eat dal and chapatis for
lunch; in Brazil, they follow the fortunes of the local jai alai team.

Cosmopolitan Orientation.
Expats with a cosmopolitan mind-set intuitively understand that different cultural norms have value and meaning to those
who practice them. Companies that send the right people abroad have identified individuals who respect diverse viewpoints;
they live and let live.

A Collaborative Negotiation Style.

When expats negotiate with foreigners, the potential for conflict is much higher than it is when they are dealing with
compatriots. Different cultures can hold radically different expectations about the way negotiations should be conducted.
Thus a collaborative negotiation style, which can be important enough in business at home, becomes absolutely critical
abroad.

Conclusion:

As a result, those companies are poised to capture tomorrow’s global market opportunities by making their international
assignments—the largest single investments in executive development that they will make—financially successful today.

As a result of Companies integrated approach, nearly all of its expats consistently perform at or above expectations, and the
turnover rate for returning employees is less than 5%. Most important, its expats consistently attain the key strategic
objectives established at the beginning of each assignment.
Companies like Honda, GE, and Nokia have learned how to reap the full value of international assignments. Their CEOs share a
conviction that sustained global growth rests on the shoulders of key individuals, particularly those with international
experience

Prepared by : Reviewed / Checked: Verified by: Approved by:

DR. MA. CECILIA LAGARAS DR. MA. CECILIA LAGARAS DR. VINODH NATARAJAN DR. MARLUNA URUBIO
Course Coordinator Dept. Head, BSIB Associate Dean, CAFS Dean, CAFS
Date: : Date: : Date: : Date: :