Case study

Charles Martin in
Uganda
Submitted by:Navdeep Sharma(B36)
Naasir Ahmad Sheikh(B38)
Pooja Choudhary(B37)
Jagdeep Kaur(B39)

Section Q1525

Contents.
About Uganda
Case Background
Concept of the Case
Hydro-Generation
Character's in the case
Charles Martin
Charles Martins Assignments
Charles Martin Practices
Problems with Charles Martin
Recommendation's
Learnings

Uganda
Country of economic, political and cultural complexity
25 million inhibitants,of nearly 50% have excess to clean water
Official language is English but Bantu or Nilotic languages are very common and 2/3 of
population is Christian and other 1/3 is mainly Muslim or follower of animistic religions
Different lifestyles and values
Average life expectancy is about 45 years, average population age is 15
Conquered independence from British colonial rule in 1962
severe dictatorship
Several refugees from neighboring countries
One of the most corrupt countries in the world and nepotism is norm
Entry of foreign countries in not heavily regulated

Case Background
Hydro Generation (HG) is a U.S. based company that specializes in power plant. It has built power
plants in 16 countries where they maintained an ownership in about half of them.
The company has targeted a construction of large dam in Uganda Africa.
HG put Charles Martin in this project to facilitate the preliminary construction and in case up to
the construction phase to get an operating structure and facility start-up activities that includes
obtaining licenses, installing telephones and utilities and securing the initial staff that would hire
the full range of local personnel.
But Vice president James Green pondered whether to continue employing Martin for the
construction phase of the project.
In particular, Green was concerned about Martins lifestyle, some of his business practices, and his
participation in Ugandan tribal rituals. Green worried that Martins practices were counter to both
HGs corporate culture and methods of operating elsewhere, that some of his actions bordered on
the unethical, and that some might be illegal under U.S. law

The Concept of the Case

This case shows how important it is for a foreign company to understand and adjust to ever
changing operating environments.
This case we have found HG companys culture and also the problems the company has faced
because of cultural differences and legal facilities.
All people have ingrained responses to given situation
Gives a concept that an internationally company must be sensitive to the cultural difference in
order to protect and control its relationship and operations
It should realize that its accustomed way of doing business might not be the only on best way
When doing business in abroad a company should first determine what business practices in a
foreign country differ from those it's used to.
Management then must decide what if any adjustment necessary to operate efficiently in the
foreign company

Hydro-Generation
HG,US based company, specialist in power plants(dams)
Values strongly built on Christian culture

Employees have a high degree of empowerment, being fully responsible for their actions
First time it is building in Africa
No code of conduct concerning expatriates lifestyle but its corporate culture was one thet reflected the life
style of a prosperous international company

Characters in the case

Lawrence Lovell
HGs founder and CEO
A devout Christian and very influential in shaping the companys management culture
Believed that business activities should embody strong Christian values and that subordinates should be
given full responsibility in making and implementing decisions but they should be held accountable for their
results.

James Green
HGs vice president
Concerned about business practices and lifestyle

Charles Martin
26 yrs. Old
Knowledgeable in developmental issue wherein he was able at disarming critics of the power plant
Joined University of Wisconsin-Madison taking a course about Africas pre-colonial history
After graduation he joined Peace Corps and served in Kenya
He believed in the creed Dont draw attention to yourself, and above all, learn and respect the
culture.
Earned an MBA at the University of Maryland
Took job at HG
Devotee of the philosophy of integrating the African society not drawing attention to oneself ,but
learning and respecting its culture.

Charles Martins
Assignments(Duties)
Working with Ugandan governmental authorities in the capital, Kampala and with villagers in the
area where the dam was to be built to gain support and necessary permissions for the construction
Establish an office and hiring people who would be responsible for local purchases, clearance of
incoming goods through customs, immigration permissions for foreigners coming in to work on
the project, logistics materials going from the airport in Kampala to the dam site and keeping
records of supplies and expenditures
Help foreign visitors mainly engineers become accommodated and oriented when visiting Uganda

Charles Martins Practices

Lives among middle class- Ugandans and not in up-scale neighborhoods where most international
managers live
Doesn't integrate himself with in the expatriates community
Makes extra money to local people to get things moving faster
Hires staff closely related to Government officials
Participated in the tribal rituals to get support from villagers affected by the dam construction
,although being employed in in a company embedded in Christian values

Problems With Charles Martin

Independent lifestyle.
Participation in tribal rituals,
Way of achieving results,
Unethical practices,
Payment which might be illegal under US law ,

Recommended Solutions
To change custom is a difficult thing, so in doing business around the globe major problems will be face as
culture collides with business operations, these are when company implements practices that work less than
intended and companys employees encounter distress because of an inability to accept or adjust to foreign
behavior. It is best if company strictly observe the following:
International company must be sensitive to cultural differences in order to predict and control its
relationships and operations and it should first determine what business practices in a foreign country
differ from those its used to.

It must also adhere sufficiently to local culture lest they fail. However companies whether local or
foreign cannot always anticipate the reactions to their practices so it is necessary to sought advice from
experts.

Learning's
After studying the case, weve found out that when doing business aboard, company should first
determine the different business practices in a foreign country.
It is also important for the foreign company to understand and adjust to their operating countries
because we believe that the existence of cross-country differs.
Operating countries environments may vary from time to time and also their operating sites, thus;
it is an integral part to learned attitudes, values and beliefs.
The concept of international business has been clearly illustrated, the sensitivity of the cultural
aspect in order to predict and control its relationship and operation.
And management then must decide what are the necessary adjustments needed to be able to
operate efficiently in the foreign country. But all actions should be taken in control.

Q1:-Describe Ugandan cultural attributes that might affect the operations of a foreign company
doing business there?

Language barrier
Religious concerns
Violent political history, political instability and Nepotism
Different types of communication language
Higher and lower class communication
Nepotism is a norm for employment staff
People are involve with corruption
Lack of legal opportunity
People of Ugandans are too much devout to their religion and beliefs and culture

Q2:-How would you describe the respective attitudes of Martin and

Green: ethnocentric, polycentric, or geocentric? What factors do you
suspect of having influenced their respective attitudes?
Martin exhibited more Polycentric(autonomous) attitude,
Green seemed to be more Geocentric in his approach
While martin was more concerned about his effectiveness with respect to his assignment in
Uganda, Green was more concerned with corporate level issues

Q3:-Who was right, Green or Martin, about Martins more controversial

actions in facilitating the project? How might things have turned out if
Martin had not been a member of the project team?
We can say that Martins actions were right though it is already beyond the companys norms and
against the US law. If Martin have not done it and had not been a member of the project team, the
project would be very hard to proceed or impossible to happen.
For example, language as mentioned before is a big problem HG should hire a translator to make
the communication run smoothly. They need to train staff that would probably take a long period
of time to study and understand the culture, belief and behavior of Uganda to be able to plot the
dos and donts in doing the business project. It would be a waste of time and money for HG and
worst the project will only be on scratch
Hiring people or staffs will be difficult because Nepotism is a norm in Uganda
Without hiring a specialist in African religions and participation in the ceremony by Martin.HG
would not continue its operation and displace the villagers where the will be built

Q4:-In the next phase of the project-running the power plant-should HG employ someone
whose main function is that of liaison between its corporate culture and the culture of its host
country? If so, is Martin the right person for the job?
We think Martin is the right person for this project. If HG hires another person, he will face almost
the same problem. The hired person should also realize the culture and religion of Africa,
especially Uganda. And now HG has the person suited this, he is Martin.
He knew African culture and religion well. As he worked there before, Martin also knew how
things could be well done in Africa under their culture and religion. He seems to do some
controversial actions there, but his purpose is to help HG finish this project successfully. So Martin
must be the right person for this project. HG does not need to hire someone else in this case.