1. nexus
The magazine of the Warwick Business School Alumni Association Winter 2002
a
THE DYNAMICS OF CHANGE
MERGERS AND ACQUISITIONS
NEWEST MEMBER OF THE CLUB: CHINA
EUROCREEP OR EUROMARCH?
E
R R SEA
5 S TA
RC
H
R
AN
u
G
KIN

2. WBSINTHENEWS
WBS competes globally Ford collaboration
with the best with University
HE LATEST FT rankings of Executive MBAs, published in October, THE FINANCIAL TIMES, 7th November,
T
placed WBS’s Executive MBA 14th globally (Cranfield was 33rd, and the Sunday Times, 4th November,
Ashridge 43rd and Henley 48th). reported that Ford’s Premier Automotive
The rankings of leading Doctoral programmes placed WBS’s PhD Group had announced a deal with the
programme second in the world to Wharton and top in Europe. University of Warwick to create
The prestigious FT ratings placed the Warwick MBA 40th in the collaboration on training, research and
world, with only a handful of other European schools ahead of us (Cranfield was development, and supply chain.
41st) and our post-experience management training 4th. Most of WBS’s Specialist “We have ambitious plans,“ said Dr
Master’s programmes are acknowledged as being pre-eminent in their respective Wolfgang Reitzle, President of the
fields. WBS was the first UK school to gain acceptance by all of the key eminent Premier Automotive group, “the
bodies internationally. University of Warwick is one of the
The latest Virgin guide describes the school’s UG programmes as ‘must apply to’, country’s finest centres of excellence and
and The Times Good University Guide rated them narrowly second to UMIST’s. Our new as such we look forward to sharing
undergrads have arrived with the highest A-Level points of anywhere in the UK: innovative technology and building on
they’re the best! the achievements of both parties.” g
The message is clear: the reputation of WBS is to be envied. As many of the same
employers seek undergrads, MBAs and those with Specialist Master’s degrees, there is
little doubt that our student body benefits
Recession and
from the School’s successful ratings in so
many spheres of management education. We
hope such sentiments encourage you to speak
‘the message is clear: unemployment
highly of your former business school. WBS is
heading in the right direction! g
the reputation of WBS PROFESSOR ANDREW OSWALD,
Lyndon Simkin Economics Department, was interviewed
Academic Director
MBA by Full-time Study is to be envied’ for the Financial Times on 8 November
about the threat of recession and the
level of unemployment. He noted that
the events of September 11th had made
future events less predictable. g
MBA applauded
by Brazilian press
A POSITIVE REVIEW of the MBA,
Swissair grounded interviewing two WBS Alumni
appeared on October 24th in
Valor Economico, a newspaper
equivalent to the Financial Times
RAM VENUPRASAD, (MBA 1999) PhD student in e-business, had an article published in Brazil. Two alumni were
in the Birmingham Post on 12th October on Swissair’s problems. Ram suggested that interviewed for the article, which
Swissair got it wrong by sticking with an outmoded business model, diversifying into particularly noted WBS’s
airline related businesses and too many hubs. This led to “abnormally” high International MBA refresher,
operating costs. To cover these costs Swissair was forced to distress sell its assets such which commences January 21,
as the Swissotel chain. Ram wrote that Swissair should have concentrated on B-Nets 2002. The article came out at the
(business networks). He explained that true economic value, measured by sustained beginning of the British Council
profits, is the arbiter of business success. g Exhibition. g
2

3. Nexus | Winter 2002
ALUMNINEWS
Val Gooding presents to diary dates
Women’s Alumnae Group
HE WBS WOMEN’S Fancy an MBA part-time?
T
Group met on 4th Open Day
September at the 13 February (and again 13 April)
Industrial Society in Warwick Business School
London to hear a University of Warwick
terrific presentation
from Val Gooding, CEO of BUPA, Women’s Group Seminar:
on being a non-executive director. Leadership
Val, a Warwick graduate herself, 19 February
addressed forty WBS Alumnae and The Home Office, London
staff. Val (French, 1971) talked Mrs Lesley James
about what to look for in a Vice President of the Institute of
Appreciative members of the audience.
directorship, what is expected from Personnel and Development
a non-executive director and how to break into your first directorship.
“It was an excellent evening,” commented Iona Thomson (MBA 2000) who attended the
Accountability Programme
event. She continued, “Val Gooding was a forthright and practical speaker. As I had sat on an SME
13 to 17 March
AIM listed Board, I have always been interested in the role of the Non-Executive Director.”
Warwick Business School
Val gave practical advice - suggesting 5 key things: Educate yourself, have a specialist skill e.g.
University of Warwick
Finance, Stocks & Shares, Marketing, M&A, or IT, consider smaller subsidiary boards of PLC’s,
Adrian Henriques
Public Sector Boards or SME’s, pick your company wisely - you will have a minimum 3 year
Dr Malcolm Macintosh
commitment, plus at least another 3 years and choose a sector you are interested in where you
can make a difference, respect and like the CEO and be sure the company is financially robust.
“It was a practical, informative, and interesting presentation, from a woman for whom one felt Global Business Forum
instant admiration and respect,” concluded Iona. 16 May
The event was sponsored by the Industrial Society. g London
Summer Ball
12 July
The Belfry
Having a ball! WBS is a star -
official
Warwickshire
WGA Events
It was announced on 14 Law Event
December that Warwick 29 January
Business School was awarded
London
the top five star rating, one of
only 3 business schools to
receive such an award, in the Media Networking Event
UK Research Assessment 7 March
Exercise (RAE). London
"The RAE is a measure of the
excellence of our research and is Reunions
the best measure of the quality 1971: 13 April
of a higher education
1976: 18 May
establishment. This five star
1966: 15 June
rating is the highest possible
award and all Warwick
Business School alumni can be Details
sure that it will enhance the W www.wbs.ac.uk
value of their MBA," said E alumni@wbs.warwick.ac.uk
NEARLY TWO HUNDRED MBA Alumni celebrated their Professor Howard Thomas,
T (024) 7652 4396
graduation with staff at the Summer Ball held in July 2001. Dean of Warwick Business
School.
Summer Ball 2002 will be held on July 12th, at The Belfry,
venue for the Ryder Cup, so mark your diary now. g
3

4. EDITOR’SVIEW
W
HAT A SURPRISE! You were probably not
expecting Nexus until March but we have
moved the mailing forward to try to ensure
that you receive roughly quarterly mailings
from the University of Warwick.
We are continually working to improve
the service you receive and would welcome your Emily Fay, Editor
feedback. Over the next six months you can look
forward to a variety of events designed to update and
refresh you academically. We are also hoping to offer
all of you, especially those living far away, a reading
list and hot topics leaflets on specific issues.
Do try to attend the Summer Ball in July. Helping Vice Chancellor’s
to organise this event are MBA
view
‘We are trying to students who will graduate on
12th July and they are all eager
to see many returning Alumni
invigorate the joining them to celebrate their
achievement. You can book a
table for you and your friends.
“I AM IMPRESSED with the quality of the staff - the teaching
and research,” said Vice Chancellor David VandeLinde when he
visited the Business School in early September, soon after
Want to know more about
alumni network’
taking up his new post at the University of Warwick.
what is going on? Why not “I think the School’s greatest strength,” he went on, “is in
subscribe to the WBS E- being part of a top university. This allows the researchers in the
Newsletter? We will send you updates every month. Business School to draw on the expertise of other University
We are trying to invigorate the Alumni Network researchers. Students benefit from being able to take courses in
and assist you in meeting each other. Your part in this other top departments and from the strong University
is to mention WBS whenever the opportunity presents infrastructure.”
itself and to let us know if you run across fellow David feels that the most important thing is to build the
Alumni who do not receive Nexus. g School’s reputation, within the reputation of the University, in
particular overseas.
Best wishes. He concluded, the University and the Business School need
Emily Fay to develop their external funding sources in order to be able to
Editor compete internationally, and Alumni support is integral to
this. g
IN OCTOBER WARWICK Business School
launched a Fund for Academic Excellence
specifically to build the School’s reputation and
success by attracting and retaining top
academic staff, offering scholarships, and
supporting research. Other business schools
currently hold an advantage over WBS, for
example last year INSEAD raised in excess of a
million euros in gifts from Alumni. However,
with the launch of this fund we will move back
towards a level playing field. In just three
months nearly £6,000 has been pledged to the
WBS Fund by nine generous Alumni. All WBS
Alumni will be given an opportunity to Vice-Chancellor David VandeLinde talks with Sally Dibb, MSM, and
participate over the coming years. g Phil Stern, MSM.
in this issue
Dynamics of Change 6 Eurocreep or euromarch? 8 The Italian job 10 Hot Off the Press 11 China Focus 12
Cultural differences in cross-border mergers and acquisitions 16 Alumni Careers 17 Alumni Response 18
4

5. Nexus | Winter 2002
Globalisation Harnessing the
- problem or market for the
good of society
opportunity?
H M
OWARD THOMAS, DEAN of WBS, joined Anita ICHAEL KING (MBA 2001) was runner-up in the
Roddick OBE, founder of the Body Shop, Sandra Ashridge 2001 MBA essay competition. His essay on
MacLeod, Chief Executive of Echo Research, and Mark sustainability caught the judge’s eye. “The decision
Goyder, Director of the Centre for Tomorrow’s between your essay and the eventual winner was an
Company, in a debate on Globalisation held during the extremely difficult one,” Adam Faruk, Ashridge Centre
CBI conference in Birmingham on 5th November. The for Business and Society, wrote to Michael. The Journal
debate was opened by Professor David VandeLinde, Vice of Corporate Citizenship published a longer version of the essay
Chancellor, and was chaired by James Harding, Media Editor of earlier this year. Michael summarises his essay as follows:
the Financial Times. Arguably, market-based liberal democracy has become the
The debate started with a question from the Bishop of dominant model of political and economic organisation
Aston, who asked how the panel felt the events of September around the world. The role of business in society is changing
11th had changed the question of globalisation. From this significantly.
beginning, debate ranged over a series of issues from how the Some see large multi-national enterprises as more powerful
media had affected business to the ethics of British military than governments and accountable to no-one. Others argue
uniforms being purchased from factories overseas. that accountability is there, through the processes of
Comments and questions came from the floor, which competition and free choice - ‘no-one forces you to buy a Big
included delegates from the CBI conference, WBS students, Mac’. The vigour
Alumni, staff and invited guests. Participants shared their of the debate
ˇ
personal experiences as business people or policy-makers spans the anti-
‘The role of business
working on the front line of globalisation. After the debate, globalisation
speakers and attendees mingled at the bar and discussed the protests against
issues informally. g the WTO as well
as against specific
companies.
For me this in society is changing
debate comes
significantly’
down to, how do
you harness the
fantastic
motivational
powers of the
market and the corporate actors therein to the good of society?
Some would argue that business can, and should, only concern
itself with profits - all other goals are secondary and some are
more secondary than others! Others argue that profits are an
output measure based upon wider goals - for example, Johnson
& Johnson has delivered excellent financial returns for
investors and it exists “to alleviate pain” according to Collins &
Poras.
My article attempts to analyse the question, can you take
on wider goals or are you disadvantaged? I use “sustainability”
as an example of wider goals, as this states that company
performance should be considered across a triple bottom line of
social, environmental and economic factors. I take an investor’s
perspective and seek to find if organisations appear to be
From left: Sandra MacLeod, Anita Roddick, Howard Thomas and James disadvantaged if they are ‘more sustainable’ relative to their
Harding at the Warwick Debate. peers. This study finds that they are not disadvantaged. g
5

6. NEXUSVIEW
Keith Bedell-Pearce
(MSc, Industrial and Business Studies, 1970)
Executive Director Prudential plc
The dynamics of change
in the global economy
O
VER THE ENTIRE span of history, people have probably
thought at any point of time they were going through
a period of unprecedented change, even when, as in
the Dark Ages, things in fact were pretty static. At the
risk of appearing to engage in special pleading, where
we now stand in the first years of the third millennium
does appear to be a major inflection point in the global
economy and by extension in the social and cultural
environment of the developed world.
Even before the events of 11 September, I was arguing
strongly that there were four drivers for change which taken
individually would have a significant effect, but whose
confluence would change the shape and nature of our world.
Then in the space of a few hours, transmitted to a stunned
world in real time, the attacks on the World Trade Centre and
the Pentagon added a fifth driver for change – a fundamental
shift in the world geo-political map.
The four original drivers for change were demographics,
‘In 1952 the Queen sent out globalisation, the network economy, and fundamental
behavioural shifts.
In most developed countries, the number of people at or
255 telegrams to people above retirement age will continue to grow over the next 40
years. With many of the world’s major economies funding
retirement provision on a pay as you go basis (the UK is a
fortunate exception), this means that a diminishing number of
reaching their hundredth those working will have to support a growing number of those
who are not.
The sums just do not add up. Something will have to give
birthday. Now more than 6000 and the most likely impact will be the progressive migration
from the pay as you go arrangements to what is known as
‘funded’ schemes. These are where people build-up a pot of
assets in their working lifetime and then convert this pot into
congratulatory telegrams are an income stream from retirement through to death.
The catch is that during the transition period, one or two
working generations have to pay twice. They have to pay once
sent out each year’ for the existing group of retired people and again to build up
their own retirement fund.
6

7. Nexus | Winter 2002
This by itself will have profound economic consequences, There are many in business, I suspect, who breathed a sigh
but just to add to the dynamic, not only will there be more old of relief when the dot com bubble burst. But the reality is that
people but they will also live longer. In 1952, the year of her those who intend surviving the next 10 years have redoubled
accession, the Queen sent out 255 telegrams to people reaching their efforts to harness the power of the Network Economy.
their hundredth birthday. The Buckingham Palace telegram bill The changes are nothing short of being the third industrial
has grown somewhat since then - now more than 6000 revolution, the only difference being that the impact of the
congratulatory telegrams are sent out each year. first two took decades to take effect whereas with the Network
“Globalisation is no more,” wrote Martin Wolf in the Economy revolution, the timespan will be measured in just a
Financial Times of 3 October, “than an (admittedly ugly) name few years, if not months.
for the process of integration across frontiers of liberalising Behavioural shifts are often only observed after the event.
market economies at a time of rapidly falling costs of transport In 1999, however, the UK Government published a report,
and communications.” The reason why globalisation is such a Britain towards 2010: the changing business environment. Within
powerful driver of change is that it accelerates the process of this report Bob Worcester (of MORI) suggested that the next
commoditisation which itself changes the shape of the decade would see a rise in conflict between poor and rich,
industrial and commercial landscape. globalised against globalisers.
One of the most significant precursors to the Since the publication of that report, we have had 11
commoditisation process is that of “unbundling” whereby September and all that has already followed from it. As terrible
hitherto vertically integrated supply arrangements are broken as these events were, it does not necessarily follow that the
down into separate links of a value longer-term outcomes will be bad. In
chain, where a variety of players are fact, there is a strong historical
free to compete for a slice of the
action within each link.
The most powerful competitive
‘The downward curve into precedent for saying that the
resilience and adaptability of
mankind coupled with an ability to
response to commoditisation is learn from mistakes has meant that
innovation, a lesson well understood
in the IT industry. But even with the
recession will steepen but both man made and natural
catastrophes have been the drivers of
protection of intellectual property change for the better.
rights, the advantages of innovation
are becoming increasingly short
lived.
the duration will be short Whilst it is impossible to predict
what the longer term outcomes of
11 September might be, in the short
In the future, innovation will and medium term, I would place
have to apply with equal force to
business models as well as to the
and the recovery rapid’ bets on the following:
The forces driving globalisation
underlying products and services. will be strengthened leading to its
There has probably been more acceleration.
focus on the third driver for change, the network economy, The downward curve into recession will steepen but the
than any of the others. Most of the commentary, however, duration will be short and the recovery rapid. There is strong
misses the point, particularly with references to the “New evidence that the current period of discontinuity is
Economy.” There is no New Economy. Indeed, the irony is encouraging tough measures to be taken sooner and more
that, probably for the first time in economic history since vigorously that might otherwise have been the case.
Adam Smith published The Wealth of Nations in 1776, there is a As the synchronised industrial recessions within the
possibility that the economic theory you find in the first few developed nations are not being matched to the same degree
chapters of a basic textbook on economics could actually (and in some cases, not at all) with equivalent consumer
become reality. recessions, the threat of short term inflation has increased.
A good deal of business activity is designed to distort the New business methodologies will rapidly emerge: there is
basic dynamics of supply and demand by creating imperfect already a recognition that travelling half way round the world
markets. Branding is an example of this. or across a continent for a two hour meeting may not be the
For the first time, through the Web, there is ubiquitous (at best way.
least in developed countries) access to copious amounts of There will be a redefinition of the role of the USA on the
information (often too copious) coupled with interactive world stage. More importantly, the inward focus of a major
communication either at a business-to-consumer or business- part of the population of the USA may start to turn outwards.
to-business level. The result is that the economics of business The cultural, political, economic, and social changes arising
interaction and therefore communication have been turned on from 11 September will be profound. Whilst not wanting to
their head. take a materialistic view at this stage, the high degree of
In business communications, until very recently, there had Western solidarity in the aftermath may translate into
been a linear trade off between content and reach and increased and more effective commercial activity between the
communication cost and reach. A TV ad could be broadcast to developed economies.
millions but could only deliver a broad message. For Gazing into a crystal ball is a dangerous occupation at the
personalised messages, you needed one to one contact, which best of times but even more so now. But being right is not
was very costly per message. The Web now enables almost what this activity is about. That would be an added bonus.
universal reach and content that can be personalised within a What is important is to recognise the forces for change and
couple of mouse clicks. In an unbundled world, cost of contact decide on individual business strategies which accommodate
and communication is no longer the insuperable hurdle in the drivers of change even though their final results may as yet
competing. be unpredictable. g
7

8. Eurocreep or euromarch?
IKE IT OR not, the euro is finally here. Most of the effect of loss of control of monetary policy, in particular
L
Europe’s 290 million people woke up on the means of setting of interest rates. Coupled with the high
January 1st to see their national currency labour immobility of workers in Europe, this could pose
replaced by the euro. For the UK, which is questions about the sustainability of the euro. Quintessentially,
outside this momentous change, the question for those against the euro, the issue is more of the heart rather
is what impact will it have on business? than the head: no monetary union has ever proved successful
Francis Greene of the WBS SME Centre has researched and without political union,” he concludes.
co-authored a series of government case studies on the Such debates do not help UK businesses that have been
subject and also published a paper. faced with the need to make some adaptation to the euro.
“Until January of this year, we had what I would describe as Francis Greene has co-authored eighteen case studies of how
a phoney situation across the European Union,” suggests businesses are preparing for the euro - in business sectors
Francis Greene. “Until then, people in business had only been ranging from vegetable oil importers, transport, medical
able to transact electronically in euros. That is not the same as software, audio equipment and many others.
having the notes and coins in your hand. Now, not only do Commissioned by HM Treasury and co-sponsored by
euros exist, people in Barclays Bank and Sage, each case study provides an in-depth
‘Joining the euro is an
Europe know that their example of the preparation work carried out by the SMEs.
national currency will They include a summary of best practice prior to euro
no longer exist in a few introduction and the real live issues faced by business
months. That’s as much managers as they address the issues in their euro-sensitive
irrevocable decision’ a psychological as a
physical change,” he
business. These case studies are freely available from the
government’s euro website.
says. Reflecting on this practical research, Francis believes that
“For the UK - along with the other two ‘outs’, Sweden and businesses that are well managed will continue to remain
Denmark - it is hard to see how much of an impact the competitive in the European market place. Over time, however,
introduction of euro notes and coins will have,” he continues. he believes that UK businesses - in particular, the smaller sized
“As consumers, it is likely that the first time we will notice any ones - will be at a disadvantage. This is because they are likely
change is when we go on holiday to Europe. The single to have higher transaction costs and, of course, they will
currency across the EU may encourage us to travel more freely continue to face exchange rate risk. UK businesses -already
across national borders. For the first time, we won’t have the unable to compete on a level playing field - will find the
cost or the hassle of changing French francs into Spanish differences exacerbated by the euro.
pesetas. We may also notice that prices are becoming more Based upon his academic research, Francis believes that
transparent - particularly if we use the internet to order goods there are already signs that a phenomenon known as ‘euro
from mainland Europe.” creep’ is occurring. He has found evidence that certain types of
What about business? “The introduction of euro notes and traders - inter-regional ones in particular - are beginning to see
coins brings with it many challenges. The UK currently imports the network advantages of using the euro as a substitute
half of its trade in goods from the EU and exports three-fifths currency for sterling. Although the new currency is designed as
of its goods to the EU. Those businesses with trading links with an institutional solution, such traders are using it as a market
the EU - whether they like the new currency or not - have to solution.
make some form of adaptation to the euro,” he says. The unanswered
Francis Greene suggests, though, “that it is fair to say that question, however, is
Further reference:
the political uncertainty about any UK adoption of the euro how far this surrogate
Preparations for the euro by UK
makes it difficult for UK businesses to plan effectively. Joining adoption of the euro
SMEs with trading links with the
the euro is an irrevocable decision - it is hard to see a situation cascades through British euro currency area.
whereby the UK would join it and then subsequently try to business. Dr. Francis Greene, SME Centre,
reverse it. People who are both for the euro and against it have With an economy as Warwick Business School.
good grounds for holding their respective opinions.” open as that of the UK, Euro information case studies
He continues, “For those who support it, the euro in the longer term it Published by HM Treasury
represents an opportunity for the further liberalisation of the may be that the euro w www.euro.gov.uk
EU single market by removing exchange rate risk and transac- marches into British life e francis.greene@warwick.ac.uk
tion costs in the euro currency area. For those who are opposed almost independently of
to the euro, concerns remain about the effect of loss of control any conscious political
of monetary policy, in particular the means of setting of decision about entry
interest rates. transaction costs in the euro currency area. For into the euro currency area. Does this mean that ‘eurocreep’
those who are opposed to the euro, concerns remain about will become ‘euromarch’? g
8

9. Flags waving outside the European
Parliament Building. Photo courtesy of the
Messenger Group of Newspapers (Newsquest).
9

10. Passion, colour, and class are values that WBS graduate, Juan Diaz Ruiz, will use to
boost the brand in his new role as Sales and Marketing Director for the Fiat Group.
The I
N JULY 2001, Fiat Auto announced a management
reorganisation as part of their globalisation strategy, taking
advantage of their new alliance with General Motors.
Following his move to Fiat in September 2000 from Toyota
Europe where he was an Executive Vice President, Juan Diaz
Italian
Ruiz would now report directly to the CEO, Roberto Testore.
“Fiat Auto comprises three brands,” explains Juan from his
new base in Turin, “Fiat, Alfa Romeo and Lancia. We have
defined clear brand experiences we want our customers to
enjoy.”
Job
These are based on brand values and are: Fiat - ‘life in
primary colours’, Alfa Romeo - ‘passion’ or ‘cuore sportivo’,
Lancia - ‘a touch of Italian class’.
“To develop these brands we have created a brand
management structure for each brand,” says Juan. The brand
managers are each responsible for a Brand Virtual Business
Unit (BVBU). “Each BVBU is, in turn, responsible for
establishing the Brand’s product strategy, marketing plan,
network, after sales, and distribution strategy,” states Juan.
Fiat has just launched the first of 19 new models - the Stilo.
“We intend to use each of the new models to demonstrate the
values of the brands,” Juan declares. “With the Stilo, we aim to
change the centre of gravity of the Fiat brand from being
associated mainly with small cars, to one that offers a highly
sophisticated medium sized vehicle.” In February, the 156 GTA
will go on the market to show off Alfa Romeo’s ‘cuore
sportivo’, to be followed by the new Lancia Thesis which
shows ‘the art of Italian living’.
10

11. HOTOFFTHEPRESS
According to Juan, cutting edge brand marketing must Value-based Marketing, by Professor Peter Doyle, was ranked
develop an integrated marketing strategy with product, number one in the 2001 best seller marketing list. The
communication, service and distribution following a results were in the December issue of the magazine
consistently clear brand profile. Marketing Business published by the Chartered Institute of
Juan has the background to succeed; he graduated from Marketing.
WBS in 1974 with an MSc in Management and Business
Marketing: Concepts and Strategies, by Sally Dibb and Lyndon
Studies. “It was the early stages of systems engineering applied
Simkin, from the Marketing & Strategic Management
to management,” he explains, which helped him to structure
Group, now in its 4th edition (Houghton Mifflin), has
his work and systemise his approach to problem solving.
cemented its position as the best selling marketing text in
“My memories of Warwick Business School are very warm
the UK, with significant sales also in Benelux, Scandinavia,
indeed. It was the early stage of the Faculty and we constituted
Portugal, Australasia and the Middle East.
a group of very close fellow students.”
After leaving Warwick Juan worked for Ford UK and Ford Global IT Outsourcing: In Search of Business Advantage by
Spain. In 1986 he was working for Seat in Spain, his native Professor Leslie Willcocks was published by Wiley in
country, when VW bought the company. He was put in charge January 2001. Leslie Willcocks,
of the Audi brand for five years, during which time Audi’s sales Arthur Andersen Chair of
overtook BMW’s for the first time. Toyota wooed him away to e-business, is co-author of 19
oversee their European expansion and he was able to raise sales books. Leslie has also published
by 50% in two years. He speaks a over 130 papers in journals such as
number of languages and has
worked extensively in five
countries.
‘A global market Harvard Business Review, MIT
Sloan Management and MIS
Quarterly. His recent advisory work
“A global market needs includes several major Australian
global managers,” emphasises
Juan, “capable of applying global needs global corporations as well as advising US
and UK government committees.
strategies in a local
The all-new 2nd edition of The
environment. My experience of
working in many countries,
living in their cultures and
managers’ Marketing Casebook appeared earlier
this year (Thomson Learning), now containing 25 ‘real’
cases and 17 theory overviews to provide an all-inclusive
learning their languages has helped me perform effectively in
self-learning resource. It is written by Sally Dibb and
all my assignments.”
Lyndon Simkin.
The Fiat Group is at a turning point with tremendous
investment in marketing and new models. This happens just as The Politics of Regulations, Privatised Utilities in Britain, by
they have formed an alliance with General Motors, providing Alison Young, then a Research Fellow in CMUR, was
them with the opportunity to reduce costs through two Power published in March.
Train and Purchasing joint ventures, while remaining
Marketing Briefs: a Revision and Study Guide, endorsed by the
competitors in the market place.
Chartered Institute of Marketing (CIM), again by Sally Dibb
“We expect that the emerging markets will contribute 80%
and Lyndon Simkin, has just been published. It is targeted
of the growth in vehicle sales worldwide before 2010,” claims
at any business school and CIM students taking marketing
Juan, “Therefore our global strategy is to establish a strong
examinations (Butterworth-Heinemann) and contains 50
foothold in China, India, South America, and Central Europe.”
theory notes that address everything from value-based
Juan is undaunted by the prospect of facing tough
marketing, CRM to one-to-one marketing in a manner
competition in Europe, while trying to change the culture of
designed to remove the fear from examinations. This text
the company. If his past is a guide to his future, Fiat’s success is
also aims to provide executives with topical, punchy
assured. g
overviews of the
leading concepts.
The reading list is available
Reading List through the Alumni website. if
In response to you need a reading list on a
Alumni requests, we specific topic made up for
are going to produce yourself or your company, at a
reading lists on bespoke price, contact the
specific topics Alumni Office
bi-annually. The first w www.wbs.ac.uk
of these is on e alumni@wbs.warwick.ac.uk
Entrepreneurship.
11

12. CHINAFOCUS
China~
A
MILESTONE WAS REACHED in November, with
China’s effective entry into the World Trade
Organisation (WTO). What will be the effect of the
commercial liberalisation of such a vast potential
market of 1.2 billion people? Dr. Simon Collinson
newest takes a snapshot overview, supported by an ‘on the
ground’ report by Darren Morgan, who has just completed
the Warwick MBA while based in Hong Kong.
member of
Flows of foreign direct investment (FDI) between countries
around the world are an indicator of regional attractiveness.
Multinational corporations have always extended their
activities across national borders to gain access to growing
markets, scarce physical resources, cheap and/or more capable
the global labour or new technologies. Countries are normally keen to
attract FDI from multinationals because it brings capital,
employment and often technology and training, to improve
indigenous capabilities.
economic In some cases, though, countries have refused to allow
overseas investors inside their borders. This was certainly true
of China. What has pulled this vast country firmly into the
world economic system is liberalisation and deregulation - the
club
dismantling of barriers to global trade. The implications for us
all are significant.
Milestone
China’s entry into the WTO on November 10th is a
culmination of the ‘open door’ policy that began in 1980 and
prompted increased flows of FDI, making China consistently
the leading recipient of FDI in the developing world.
In 2000, $41 billion of
‘Nearly 400 of the
investment flowed into China
and, in the first ten months of
2001, FDI inflows were up by
almost twenty percent
Fortune 500 firms compared with the previous
year. In this time, China’s
GDP growth rate has slipped
have invested’ only slightly, from eight to
seven percent. A further $64
billion flowed into Hong
Kong (China) in 2000, making it the largest recipient in Asia.
This is due both to increased outflows from Chinese firms
through Hong Kong and the growing number of firms ‘parking’
investment funds in Hong Kong ready to invest in mainland
China.
Investment patterns
The growing volume of investment in China is one
important indicator. Another is the kind of investments being
made. In the last five years, there has been a significant shift
towards the capital-intensive and high-technology sectors.
Nearly four hundred of the Fortune 500 firms have invested in
over two thousand projects and, significantly, these have
become increasingly higher in the value-chain, confirming the
move away from cheap-labour operations.
Over one hundred R&D centres have been established by
firms like Microsoft, GM, GE, Nortel, IBM, DuPont, Nokia,
Mitsubishi and Siemens. Motorola has invested $200 million
and employs 650 research personnel in China.
12

13. Nexus | Winter 2002
The effects of this shift are reflected in the export pattern - Special difficulties in China:
from which the growing dependence of China on g Despite new legislation being introduced as central-planning
multinational investment is also evident. However, the flows of gives way to a market economy, a huge amount of ambiguity
technology, training and management capabilities into China exists in terms of interpreting and enforcing the evolving
via investment and joint ventures is helping to move the regulations, rules and governance structures. This means
overall economy into higher value-added sectors, to compete greater uncertainty and red tape and a commensurate need to
more directly with Western economies. spend more time interacting with officialdom.
g Business disputes are hard to settle by legal means because of
the difficulty in enforcement of judgement within the Chinese
Export trend of high technology products from China,
by production ownership legal system.
g Guanxi - networking or connections - is the way that
Year Total ($m) State-owned Foreign business is done in China. Personal networks are normally
enterprises % affiliates % maintained through exchanges of favours. A critical problem
1996 7,681 39 59 for foreign executives is not whether to participate, but how to
1997 16,310 - - participate skilfully and effectively in the ‘art’ of guanxi.
1998 20,251 25 74 g Differences in
1999
2000
24,704
37,040
23
18
76
81
language and culture
amongst mainland ‘Trade with the rest of
Source: UNCTAD, World Investment Report 2001, United Nations, Chinese, as well as
the world will increase’
Geneva (http://www.unctad.org) differences compared
to Westerners,
including incentive
China does present special difficulties for foreign investors - and reward expectations, workplace behaviour, values and
despite the obvious attractions of a relatively cheap labour beliefs and broader organisational practices, create
force, a huge market and highly-developed scientific and complications for management in China.
technological capabilities. The following case study, prepared g Where there is a poor fit strategically and/or organisationally
by Warwick MBA, Darren Morgan, while based in Hong Kong, between JV partners - as in any market - problems occur. Some
gives an excellent local insight into the views of local firms found it difficult to judge this potential fit before
multinationals on the likely changes resulting from China’s committing to the partnership.
entry into the WTO. g Other commonly-noted problems: these include the
depreciation of fixed assets, defaulting customers, the
Local knowledge escalating costs of doing business and violations of intellectual
The case study focuses on eight multinationals in different property rights.
industry sectors, based in Hong Kong, which are either
attempting to enter the Chinese market or are looking to The Impact of WTO-entry
expand existing mainland activities. Interviews with senior There was no complete consensus among interviewees
managers reveal their views regarding market-entry strategies, regarding the impact of WTO entry, but most respondents were
the key difficulties of growing businesses in China, how firms confident it would benefit their business. Key predictions
should adapt products or services, strategy and organisation for include:
China and the future threats and opportunities stemming from g Trade and exchange with the rest of the World and FDI in
the liberalisation process. Its main findings are: both directions will increase.
g Successful entrants are those that have clearly identifiable g The regulatory environment will improve.
capabilities or assets (financial muscle, technologies, brands) g The renewed threat from new foreign entrants is likely to
which they can leverage in the China market. lead to a shake-out of weaker domestic Chinese competitors.
g Entry into China tends to occur via the key cities of Beijing, g Distribution channels
Shanghai and Guangzhou, followed by inland expansion via are likely to improve
the ‘second tier’ cities. and restrictions on
Dr Simon Collinson is Senior
g Equity joint ventures are the most common entry vehicle. advertising are likely to Lecturer in International Business
Although there was a preference for wholly-owned subsidiaries, be lifted. and Associate Dean, MBAs.
these were not allowed in China in most key sectors. g International industry e s.collinson@wbs.warwick.ac.uk
g The case study firms, although representing a small sample, standards will be
Darren Morgan
were amongst the first in their respective sectors to access introduced and e dwmorgan@attglobal.net
mainland markets and appear to have gained significant first- gradually enforced.
mover advantages. Remaining fears are
g Overall, the firms were generally optimistic about the future that the importance of
for China within the WTO. There was some scepticism guanxi will remain unchanged, although for businesses already
regarding the timescale for implementing the changes required some way along the learning curve, this may be advantageous.
for full accession and most felt it would be a long-term Corporate options for market-entry and foreign equity holdings
challenge to get local authorities to comply and for domestic may not change in the short or medium-term, countering
industry protection to be removed. other liberalisation pressures. g
13

14. CHINAFOCUS
T
HE ACCESSION OF China to the WTO in November
this year marks the coming of a new era for foreign
private equity investors. China promises to lift or
moderate a number of restrictions limiting foreigners
from investing in industries like retailing, distribution,
insurance, and banking. These industries are getting
more significant as this populous economy, with the
determination of its government to modernise the nation, is
expanding at the quickest pace in the world.
Nevertheless, China has proven to be a difficult place for
investors. One of the reasons is the ‘China Inc’ mentality on
the part of the Chinese government. The lack of transparency
in the administrative structures makes business life less
predictable. Also, the defective legal system is unable to serve
as an effective means to settle business disputes. Although the
Chinese government has promised to be more transparent,
bureaucracy is unlikely to go away in the short run because the
government will do everything to ensure an orderly
transformation of the economy under the WTO by
administrative measures.
Jack Ng (right) on a golf course in Guangdong, China, with a Chinese
In the new era, China will be undergoing a deep structural
business partner. Golf courses are becoming increasingly important
reform in many facets of its economy. In particular, the venues for business discussions in China.
existing labour intensive mode of farming will not stand the
impact of foreign products. Dramatic consolidation in the
A new era
sector will drive many farmers, who make up the majority of
the population, to factories in the cities and promote
urbanisation in the country. Protected industries like banking,
insurance, petrochemicals and telecommunication are
currently dominated by the state owned enterprises. Although
competition has been introduced in these markets, it is still
mainly among the less efficient SOEs. Foreign rivals will
accelerate the consolidation and privatisation process.
Equity investors, under the existing rules before the WTO
of investing
in China
agreement becomes effective, can only invest in most
manufacturing or production types of business. Investors have
to go through a risky type of trust arrangement to invest in
restricted sectors. In the new era, on the other hand, foreign
capital can participate freely in the retail sector within three
Jack Ng (MBA 1992), Assistant Director
years and will not be subject to any form of geographical,
First Eastern Investment Group
quantitative or ownership restriction. China also promises to
Vice President of China Canton Management (HK) Ltd.
open up its asset management business allowing foreign
capital to own up to 49% of equity in a portfolio management
company.
The big retailers, insurance companies and banks in the
developed world will likely set up their own branches in China
with their own corporate strategies and marketing objectives in
mind. However, private equity investors may bet on the
‘In the new era, China will be
emerging private entrepreneurs in China who, for various
reasons, will eventually make up the major part of the
economy. Since the capital market in China is still immature,
undergoing a deep structural reform in
venture capital is a major source of funding for private
business, and investment through private equity is the logical
choice.
To summarise, private equity investors in general welcome
many facets of its economy’
China’s accession to the WTO as more investment
opportunities will arise, particularly in the private services
sector. g
14

15. Nexus | Winter 2002
An invitation to join
Warwick Business School
Alumni in Hong Kong
I FT
CHOSE TO STUDY at Warwick because of its scenic &
modern campus, and also because Warwick Business School
enjoys a high reputation. Although I graduated over 10
years ago, I still feel very connected to the University
through my involvement in the Warwick Graduate
Association in Hong Kong.
WGA (Hong Kong) currently has about 250 members,
Expat
including graduates from as early as the 1970s. I have been WBS ALUMNI LIVING overseas will receive three free issues
serving as Membership Administrator since the establishment of the Financial Times’s publication, FT Expat, this Spring.
of the Association in 1994. The driving force is the elected The magazine will be sent out free of charge. If Alumni
executive committee, which itself is a good illustration of the decide they like the magazine, they will have the
diversity of our members’ backgrounds, with graduates from opportunity to order a subscription at a preferential rate. If
faculties including Economics, Computer Science, anyone prefers not to receive the free issues, please contact
Mathematics, Education, Law, Engineering, and last but not the Alumni Office g
least, WBS of course!
Besides me, WBS graduates in the executive committee
include Anna Cheung (Accy/Fin), and 5 MBA graduates:
Johnny Li, Clarence Chung, Becky Mak, John Ng and
Catherine Fung. Johnny is also the WGA International International MBA
Representative for China (Hong Kong).
Please e-mail us at johnny.li@warwick.org.hk. Alternatively, exchange
come to our monthly happy hour gathering held on the first
Thursday of each month 6:30pm - 8:00pm at Madison’s Bar &
N
Restaurant, Pacific Place. See you there! g
EARLY ONE THIRD of students taking the MBA
course full-time at Warwick Business School now do
Yvonne Leung
a portion of their study at an overseas university. “I
(BSc in Management Sciences, 1987)
wanted the experience of an American Business
Associate Director, Towry Law (Asia) Hong Kong Limited
School,” explains Phil White who completed his
(Wholly owned by the AMP Group listed in Australia)
MBA at WBS in September 2001. He chose Duke
University for his period of overseas study, which can range
from six weeks to three months.
“I chose Duke because it had a great reputation and
rankings,” says Phil, “and it offered an opportunity to see
more technology based courses. I could also take advantage
of its connections with the Research Triangle in North
Carolina, a leading IT/telecommunications research cluster
in the US.”
Employers say they look for MBA students not only for
their creativity and ability to instigate change, but for their
specialist knowledge and contacts. A study experience
overseas can enhance the range of contacts and detailed
information gained on an MBA.
“The weekend forum speaker series was the most valuable
for me,” Phil decides, because of the unique access to
specialist knowledge. “It was a great opportunity to learn
where the internet and telecoms are going.” He continues,
“it also showed me the high calibre of MBA students that
WBS enjoys and made me appreciate my return to WBS
during the final term.”
Phil is now an Associate at PRTM, a specialised
management consultancy focused on technology based
Yvonne (front: 1st from right), Johnny (front: 1st from left), Clarence
(back: middle) and other executive committee members met Professor companies. PRTM saw the value of such an exchange
VandeLinde for dinner during the Vice-Chancellor’s visit to Hong Kong in within the WBS MBA experience, and the contacts Phil
November. would make. g
15

16. Cultural differences in cross-border
mergers and acquisitions
T
HE NUMBER OF European cross-border mergers and “We may now appear to trade in the international language
acquisitions (M&As) is growing rapidly. Fragmented of business - English - but we can mean different things by it,”
evidence exists that national cultural differences may suggests Duncan. “People still bring their own ‘takes’ to it.
affect their post-deal management. But, do these Some say this is bad, but is individualism necessarily wrong?
national characteristics also affect pre-deal issues? Few would question that total harmonisation can dampen
Duncan Angwin, WBS Lecturer in Strategic creativity - or that individual culture can add value. So
Management, has published an diversity can be good - but there is a need
exploratory study on the subject - the for balance.”
conclusion of which suggests that culture In his report, Duncan suggests that there
variance does play a greater role than is is considerable empirical evidence to suggest
generally accepted. that top management decisions are affected
In 2000, the global value of all M&As was by national culture. Strategic decisions and
a staggering $3.5 trillion. Of this, a rising actions, for example, may be influenced by
proportion (33%) were cross-border deals, of differences of opportunism and trust in
which the vast bulk (76%) was by Western other societies.
European organisations. There are, of course, significant
This increase, coupled with the growing differences within national boundaries and
popularity of value-based bidding, has sent across industries, but it is amongst Europe’s
due diligence fees soaring. Due diligence rich tapestry of diverse national cultures
plays a critical role in M&A and is assumed that we can also find discernible differences
to be an objective and independent in management styles. Duncan points to the
examination of the target company. In cross- largest study of its kind - spanning 66
border deals, this assumption may not countries and 88,000 subjects (Hofstede and
always be well founded. Different national Trompenaars) - which empirically tested
cultures may give rise to variations in the these national differences. The study found
expectations that acquirers and merger partners have of the that they are explained by five independent dimensions -
value and role of due diligence. Power Distance, Individualism, Masculinity, Uncertainty
Due diligence is largely an examination of any factors that Avoidance and Long Termism.
could potentially derail negotiations or even lead to the early Duncan’s report defines these characteristics in detail and
failure of the acquisition process itself. But it is also important then goes on to relate them by ‘scoring’ the five dimensions to
for the post-acquisition stage to the national business cultures of six European countries -
‘The global value
be a unified process - unfettered Germany, France, Holland, Sweden, Switzerland and the United
by cultural differences. Kingdom.
But how do you quantify The report goes on to relate each of these national
cultural differences? “Invariably, characteristics to specific aspects of M&A due diligence. These
of all M&As was top management will deny any
differences because culture is
hard to define and even harder
and other findings suggest that cultural differences do play an
important role in affecting acquirers’ perceptions of target
companies and that this may have important consequences for
a staggering
to measure,” says Duncan. “In the negotiation of deals and the subsequent management of
M&A deals, management the post-acquisition phase. g
largely uses codified statistical
information. By the denial of
$3.5 trillion’ the existence of cultural effects,
a perceived intangible risk is Further references:
removed.” Article, Mergers and Acquisitions across European Borders:
Cross-border deals in Europe add a new layer of complexity National Perspectives on Pre-acquisition Perspectives, Due
- that of national identity. Homogenisation of laws and Diligence and the use of Professional Advisers, Duncan Angwin -
currency there may be, but, as a diverse group of 260 million Journal of World Business, Spring, 2001.
people, are we really moving towards harmonisation? Is pan- Book, Implementing Successful Post-acquisition Management,
Duncan Angwin - published by Financial Times/Prentice Hall,
Europeanism real?
2000.
At the very top, the European Commission has tried and
WBS Hot Topics briefing, The Acquisition Challenge, January
failed to establish a standard on mergers and acquisitions. The 1997.
resistance surely came, in part, because business is still viewed e Duncan.Angwin@warwick.ac.uk
in very different ways in different countries - union or no
union.
16

17. Nexus | Winter 2002
ALUMNICAREERS
Find your perfect mentor WBS MBA Alumni outearn competitors
At whatever stage of your career you may find yourself, a bit of In a recent survey, the average salary of WBS MBA Alumni was
advice or the sharing of expertise can always help. Sixty higher than the average of the salaries of the combined Alumni
Alumni have already volunteered as mentors. To access a of other leading European business schools. The survey was
mentor or to volunteer yourself simply follow links from the compiled from the CV’s WBS Alumni submitted when signing
Alumni website to Mentors. up with MBA Direct, a recruitment agency.
Vacancies The other leading schools include: LBS, INSEAD, Cranfield,
Companies and recruitment consultants contact the Alumni Manchester, Rotterdam, SDA Bocconi, IESE, ESADE, IMD, City,
Office regularly with vacancies. These are circulated to Alumni Imperial, Ashridge, Bradford, Edinburgh, EM Lyon, ENPC,
monthly in the e-newsletter and displayed in summary on the ESCP-EAP, HEC, Henley, IEP, Instituto de Empresa, Judge,
website. The jobs range from graduate trainee positions to Lancaster, LSE, Nijenrode, NIMBAS, Said and Strathclyde.
employers seeking a PhD qualification and ten years expertise. Almost every graduate who registered with MBA Direct had
If your company is seeking an employee do let us know. over 15 years experience and an MBA. The average salary was
Executive Coaching just under ¤ 100k p/a in the UK, rising to ¤ 160k in North
America. The average salary increase from taking an MBA at
Increasingly individuals are becoming more responsible for
WBS was ¤ 30k.
their career progression and development needs. While good
education and training are clearly important, they may not be Career Management Workshops
sufficient for people “I have to say I did get a lot of useful tips and advice on
‘Companies contact WBS
to maximise their Monday,” wrote a recent attendee of a WBS Alumni workshop
potential. The aim of on career management. He went on to explain, “not just from
executive coaching the workshop leader but also from the other attendees.”
is to facilitate an
with vacancies’ individual in
becoming more
“This was certainly one of the most useful events I have
attended. For me, it’s always great to return to Warwick and I
found it especially interesting on this occasion seeing all the
effective in their
role. Coaching is a tool for releasing potential, improving students during term
performance, enhancing staff relationships, clarifying work/life time,” he continued, “I
balance and as it supports new thinking, enabling a continuous will have to start For more information on Career
change process. It does this by introducing processes to clarify making immediate use Management Workshops
of what I have learnt!” contact the Alumni office or visit
the client’s understanding of the issues facing her/him and
our website
developing a framework to improve behavioural flexibility and
The Alumni Office w www.warwick.ac.uk/alumni
enhance interpersonal effectiveness.
arranges career e alumni@warwick.ac.uk
The coaching style is non-directive, involving questioning, management workshops
listening and clarifying. WBS is considering offering this service twice annually for
if there is sufficient demand. Please do let the Alumni Office Alumni - these are for those who want to change jobs mid-
know if you are interested. career or who find themselves forced to change jobs. g
17

18. ALUMNIRESPONSE
Debunking the myth of
the headhunter
S A HEADHUNTER of twelve year’s standing,
A
Sean Quinn (MBA 93/94) read last month’s article
“Don’t lose your head to the hunters” with
interest. As an industry insider he agreed with
much of the advice given but found the mythical
view of headhunters somewhat outdated.
Many old school headhunters love to perpetuate the myth. Teams not leaders - lessons
However, in simple MBA speak executive recruitment is the
provision of an intangible service where few patents exist on from General Motors
process, where barriers to entry are low, and where the only
competitive advantage is the experience, professionalism and HE QUESTION ON leadership and performance
T
expertise of the individual consultants working in each discussed by Andrew Pettigrew is, as he correctly
recruitment organisation. points out, a complex one. While one can agree
In that context it is true that, until the early 1990’s, the with the general conclusions such as ‘people tend
market was largely polarised between the ‘mythical to look at single leaders’, there are some
headhunters’ and ‘mere’ agencies. However these players’ additional aspects that I found in my study of
supernormal profits combined with increasing dissatisfaction teams at General Motors in Germany (Opel) and England
resulted in a number of new entrants. (Vauxhall).1
Today’s recruitment market can be characterised by three On the question of leadership 2, I would like to point out
overlapping types of organisation, rather than the two three issues: Teams are better than leaders. In other words, a
caricatured in last issue’s article. The bigger and more strong management team enables firms to manage not only
professional headhunters continue to thrive and remain the leadership changes but also provides the necessary flexibility to
primary means of recruiting the most senior ‘captains of enhance a firm’s competitive advantage far beyond the
industry’. singularity of a leader.
They are increasingly competing with a ‘new generation’ of Secondly, teams with a
Search and Selection consultancies, including my own, which
seek to provide a more flexible and customer orientated service,
strong leader did less well
than teams with a leader who
‘teams are better
utilising traditional headhunting, advertised selection, and coordinated and facilitated.
than leaders’
even database services. The pure agency end of the market also Lastly, teams with
persists and competent individuals do exist. The advice in last teamleaders did less well than
issue’s article on the perils of poor approaches, and the teams with democratic
suggestion to get written documentation before committing to structures where a teachspeaker speaks on behalf of the team
an interview was particularly useful. but does not lead.
Having said all the above, I share the disappointment in the Consequently, top management needs a strong
article at the standards that persist within the recruitment management team, not a leader, to allow what David Barry and
industry. I still come across too many senior candidates who Michael Elmes have termed a polyphonic discourse 3. Only
are grateful for the most basic courtesy and complain at the when their idea of many voices in a domination free
aloofness of some ‘traditional head hunters’. environment 4 comes into play, will firms be able to master the
I also remain disappointed at the poor quality and untargeted complexity of the post-Fordist business world.
approaches that pass for
headhunting in parts of the 1 Murakami, T. 1996. Teamwork & the Structure of Representation at
Vauxhall & Opel, Warwick: Warwick Business School, PhD-Thesis.
Search and Selection Contact:
2 Murakami, T. 1997. The Autonomy of Teams in the Car Industry: A
industry as well as the low e squinn@prismrec.co.uk Cross National Comparison, Work, Employment & Society, vol. 11, no. 4, 1997,
standards that exist in much w www.prismrec.co.uk p. 749-758.
of the database end of the 3 David Barry & Michael Elmes (1997). Toward a narrative view of
market. strategic discourse, Academy of Management Review, Vol. 22, No. 2,
For candidates or headhunt targets the advice has to be to P. 429-452.
judge each approach individually and to put some of the 4 Habermas, J. 1997. The Theory of Communicative Action: Reason and the
Rationalisation of Society, Oxford: Polity Press.
quality checks mentioned above in place. g
Thomas Klikauer
Sean Quinn (PhD, Industrial and Business Studies, 1996)
(MBA, 1994) College of Law and Business
Managing Consultant, Prism University of Western Sydney, Australia
18