New Product Development: Design and Manufacturing

Leaders in New Product Development

Ringland and Young (2009) recommend that organizations develop marketing scenarios to be prepared for the future.  In addition, predictions of the future indicate that consumers will control NPD from the standpoint of how marketing should handle the shift from one-way communication, which has historically been from the marketing department to the consumer (Ringland & Young, 2009).  Manufacturing organizations will need to ensure that NPD is a streamlined process and time-to-market is decreased to improve profitability (Ringland & Young, 2009).  This paper will address tips for design and manufacturing that leads to improved new product development (NPD) and cost effectiveness.

One tip is to have someone in charge of NPD teams, who understands accountability and timelines, such as a Project Manager (PM).   According to the Harvard Management Update (2001), PM should have people skills, as well as understand organizational politics.  In addition, the PM develops charters for the managers of each NPD team, ensures that each team member is on board for the NPD process from ideation to launch by communicating the scope of the project to the team.  PMs utilize GANTT charts and/or PERT charts to track stages of the project and develop a timeline that is shared with the team, and devise a communication medium between the PM and organizational shareholders (What You Can Learn from Professional Project Managers, 2001).   The goal of the PM in NPD is to decrease the time-to-market of successful products and kill the unsuccessful ones.

Belay (2009) conducted case studies that showed decreasing time-to-market is the key to the profitability of the new product.  In addition, the studies show that accurate concept testing is the control that will ensure the project is killed before needed resources have been extended to produce non-producing new products.  Consumers want products and services faster than ever before and mistakes can occur with rapid production (Belay, 2009).  Belay's studies also show that continuous improvement processes are essential to decrease time-to-market, and shows that getting the product design right the first time is also an important key to improving time-to-market (2009).  Furthermore, cost can be cut in the time-to-market if the manufacturing organization utilizes concurrent projects (Belay, 2009).

The last tip is to have multiple projects running concurrently in NPD—this is called concurrent engineering (CE).  Belay (2009) states that by the time a product has been completely designed that eighty percent of the cost is determined and Toyota's model proves that cost is set in the design and planning phase of NPD.  Belay continues to say that organizations that can make large investment on the planning and design by having multiple projects will improve profitability in the long term, but may not see these profits for many years (2009).

Overall tips that will lead to improved NPD and cost effectiveness is to have multiple projects for NPD, have a PM that has people-skills and understands concept testing.  Last, decrease the time-to-market and the profits will flow.

References

Belay, A. (2009). Design for manufacturability and concurrent engineering for product development. Proceedings of World Academy of Science: Engineering & Technology, 37240-246. Retrieved from Academic Search Complete database.

Ringland, G. & Young, L. (2006). Scenarios in marketing: From vision to decision. Hoboken:

John Wiley & Sons.

What You Can Learn From Professional Project Managers (2001). Harvard Working Knowledge Article.  Retrieved from http://hbswk.hbs.edu/item.jhtml?id=2284&t=leadership

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Legal Issues in International Cyberspace Marketing

The Sky and the Internet seem limitless...

Boundaries do not exist on the Internet. The Internet is an unregulated environment that was developed over thirty years ago for military applications.  Since the development, the Internet has changed the world in many ways; business and marketing now have no boundaries or do they?  Questions have arisen regarding laws—there are no Internet cops; the Internet is unregulated, which creates a plethora of privacy issues for marketers and multinational companies interacting on the world wide web with customers, vendors, and associates (Eid & Trueman, 2002; Gong, Li, & Stump, 2007; Usunier & Lee, 2005; Zugelder, Flaherty, & Johnson, 2000).

Privacy Issues

            Privacy can include a range of issues from trademark and copyright laws to private and personal information of customers, suppliers, vendors, employees—the list is quite long and unfortunately affects every individual and company that utilizes the Internet as a medium for communication and commerce.  Special interest do not enter into any Internet transaction—the government is not able to regulate or protect; however, the country where the money is tendered may offer some control of business on the Internet regarding financial transactions (Charters, 2002; Dixon, 2005; Javalgi, Radulovich, Pendleton, & Scherer, 2005).

Importance of Privacy

            How important is privacy to you?  As a customer, an expectation that the company will not share personal and financial information has been promised and broaching this trust presents problems and lawsuits for multinational companies.  Most of the search engines have been in lawsuits regarding privacy laws, especially trademark laws.  Google pioneered the search engine platforms and thus has the competitive advantage amongst search engines—advertisers utilizing this tool would most likely get better results.  Now, here is the question in this scenario—should Google be allowed to keep the search engine technology proprietary or should it be made public because it is on the Internet and could in theory control the traffic flow of most Internet searches (Troxclair, 2005)? 

Privacy and International Regulation

            Traditionally copyright laws have protected those that design and create, whether an idea or product; however, in an unregulated environment like the Internet is proving to be a more difficult task than one might imagine.  Even though websites are encrypted, have secure servers and take recommended precautions, security on the Internet is an ever changing and growing environment. Multinational companies have privacy issues that affect the security of the entire supply chain and control of information is primarily up to the organization (Dixon, 2005; Javalgi, et al., 2005; Kirca et al., 2011; Witkowski, 2005).

Multinational Companies and Privacy Strategies—Outcomes and Options

            Each country in the world is going to have its own unique issues with privacy laws and multinational companies doing business online, just as can be noted in the differences of Hofstede's cultural dimensions of countries and organizations (Usunier & Lee, 2005).  Some considerations for multinational companies and implementing cyberspace commerce internationally include: each country can and most likely will have legal issues regarding privacy regarding customs and ethics, social responsibility, online contracts, liabilities, torts, taxes, breach remedies, piracy—copyright and trademarks.  The more Internet traffic increases so does the chance that privacy laws will be abused or broken.  Based on research, the outcome of successful international e-commerce is subjective to culture and each countries laws.  Privacy strategies should be designed and implemented by corporate social responsibility policies and procedures—accounting practices and privacy should be ensured by legislations similar to the United States Sarbanes-Oxley accounting laws of 2002 (Taylor, 2000; Troxclair, 2005; Zugelder, et al., 2000).

            Google and other search engine companies are in litigation regarding privacy laws, such as trademark infringement.  Litigation is an expensive option for companies and other more common sense options would be to abide by the law of the land with regard to doing business and marketing as long as the law is ethical and culturally acceptable (Gong, et al., 2007; Javalgi, et al., 2005).

Recommendations with Justifications

            Recommendations are to know the culture of the country in which you are marketing and have e-commerce websites, rely on historical research to ensure privacy laws are not broken internationally.  This control and regulation must be the responsibility of the company.  Multinational companies should not rely on the governments of any country regarding the Internet and privacy laws; instead, they must rely on their own corporate responsibility policies and procedures.  Justification comes from the following fact regarding copyright infringement,

Among the most notorious offenders are China, India, Brazil, and Taiwan, where copyright protection ranges from weak to almost non-existent. This presents a potential problem for the future development of international e-commerce, since these countries represent a potentially huge online market in the next decade (Zugelder, et al., 2000).

References

Charters, D. (2002). Electronic monitoring and privacy issues in business-marketing: The ethics of the DoubleClick experience. Journal of Business Ethics, 35(4), 243–254.

Dixon, J. H. (2005). Privacy laws and doing business online. Intellectual Property & Technology Law Journal, 17(2), 11–20.

Eid, R., & Trueman, M. (2002). The Internet: New international marketing issues: MRN. Management Research Review, 25(12), 54.

Gong, W., Li, Z. G., & Stump, R. L. (2007). Global internet use and access: cultural considerations. Asia Pacific Journal of Marketing and Logistics, 19(1), 57.

Javalgi, R. G., Radulovich, L. P., Pendleton, G., & Scherer, R. F. (2005). Sustainable competitive advantage of internet firms: A strategic framework and implications for global marketers. International Marketing Review, 22(6), 658.

Kirca, A. H., Hult, G. T. M., Roth, K., Cavusgil, S. T., Perryy, M. Z., Akdeniz, M. B., . . . White, R. C. (2011). Firm-Specific Assets, Multinationality, and Financial Performance: A Meta-Analytic Review and Theoretical Integration. [Article]. Academy of Management Journal, 54(1), 47-72.

Taylor, C. R. (2000). Emerging issues in marketing. Psychology & Marketing, 17(6), 441.

Troxclair, L. (2005). Search engines and Internet advertisers: Just one click away from trademark infringement? Washington and Lee Law Review, 63(2), 1365–1407.

Usunier, J. C., & Lee, J. A. (2005). Marketing Across Cultures (4th ed.). New Jersey: Printice Hall.

Witkowski, T. H. (2005). FAIR TRADE MARKETING: AN ALTERNATIVE SYSTEM FOR GLOBALIZATION AND DEVELOPMENT. [Article]. Journal of Marketing Theory & Practice, 13(4), 22-33.

Zugelder, M. T., Flaherty, T. B., & Johnson, J. P. (2000). Legal issues associated with international Internet marketing. International Marketing Review, 17(3), 253-271.

Culture of Society and Managers from Japan, Germany and the United States

The culture of society is the many facets of shared characteristics that make each society of the world unique.  It is important for multinational companies to understand the culture of a society.  This report will present an analysis of Hofstede's cultural dimensions for Japan, Germany and the United States, specifically how the cultural dimensions relate to behaviors of managers in each country emphasizing differences as related to operational change, and the meaning of culture of a society.

Analysis of Managers

Japan

            Japanese managers view subordinates as being able to succeed if they work hard and based on a score of 54 will ensure that all their decisions are approved and blessed by each layer of upper management due to their hierarchical society model.  They tend to have a collective nature and are reserved and private—with a score of 46 on Individualism the Japanese manager will be more individualist than most other Asian cultures.  The Japanese manager is predominantly male, has a high work ethic, hold high expectations of their workers, and require perfection in the products produced and services delivered.  Japan scores higher than most other Masculine societies with a 95.  Managers in this society will not be open to change and will require many details and fact-finding measures.  Japan scores 92 on Hofstede's Uncertainty Avoidance—everything must be planned and scrutinized to determine the level of risk.  Japanese people do not believe in God and see themselves as a very small part of the universe.  They score 80 on Long Term Orientation, which means they look at the value of long-term growth verses short profit cycles.  The organization is viewed as not making money for shareholders, but as serving the betterment of society and the stakeholders for future generations (See Figure 1)(Bing, 2012; Firoz & Taghi, 2004; Griffith, Myers, & Harvey, 2006; Hofstede, 2012; House, Hanges, Javidan, Dorfman, & Gupta, 2004; Minkov & Hofstede, 2011; Usunier & Lee, 2005; Williamson, 2004).

Germany

            In Germany, an effective leader or manager must be expert and direct in communication with subordinates based on the Power Distance score of 35 on Hofstede's culture map.  Managers in Germany are honest and must present contractual agreements between themselves and workers as is noted by the score of 67 on Hofstede's dimension scorecard. Germany is one of most Individualist cultures in the world.  They are also a highly Masculine society with a score of 66; their managers will be predominately male, status driven, assertive, and decisive.  Managers believe people are made to work—managers will hold hard workers in high regard.  German managers usually approach most task with deductive instead of inductive reasoning due to the high score of 65 on Uncertainty Avoidance.  The managers tend to rely on their own expertise instead of relying on their superior or their subordinates.  Germany scores low on short-term orientation—people live in the now.  Managers are impatience and expect quick results; traditions important and truth is paramount (See Figure 1)(Bing, 2012; Firoz & Taghi, 2004; Griffith, et al., 2006; Hofstede, 2012; House, et al., 2004; Minkov & Hofstede, 2011; Usunier & Lee, 2005; Williamson, 2004).

United States

            In the United States, managers are informal with communication and interaction with subordinates.  With Power Distance, score of 40, managers strive to treat everyone equally and maintain an open door policy for consulting at all times.  The manager depends on employees and teams to accomplish their goal.  The United States is a highly individualistic culture with a score of 91 and the manager expects self-motivation and high levels of production from employees.  Most promotions will be performance based.  The United States is a masculine society with a score of 62.  Mangers want to win and are usually driven by competition and success.  Americans tend to accept uncertainty and score 40 in Uncertainty Avoidance, which produce managers that are open to ideas, encourage innovation, and allow freedom of expression from employees to a greater extent than high scoring Uncertainty Avoidance countries.  With a score of 29 on Long-term orientation—American managers review immediate results, such as quarterly profit and loss statements.  They expect the truth from employees, instant results and hold traditions and social responsibility in high regard (See Figure 1)(Bing, 2012; Firoz & Taghi, 2004; Griffith, et al., 2006; Hofstede, 2012; House, et al., 2004; Minkov & Hofstede, 2011; Usunier & Lee, 2005; Williamson, 2004).

Hofstede's Cultural Dimensions for Japan, Germany, and the United States

	Power distance Large small	Uncertainty avoidance large small	Individualism collectivism	Masculinity femininity	Long or short orientation
Japan	54	92	46	95	80
Germany	35	65	67	66	31
United States	40	46	91	62	29

Figure 1 (Hofstede, 2012; Usunier & Lee, 2005)

Operational Change

            Bing 2012 opined that MNC must embrace change to become successful in the global business arena and should use Hofstede's cultural dimensions as a guideline.  In addition, communication is the corner stone of effective operational change—most people do not like change and will usually resist.  Bing defines four characteristics of change that are effective when aligned with Hofstede's culture map.

1.      Most people are inspired by their own self-interest and will follow if they understand what the expectations are, thus communications and incentives are critical to successful change and relates to Hofstede's Individualism dimension.  The old adage what is in it for me or us works?  Japanese managers would focus on how change would be good for the group, whereas, German and American mangers would focus on what is best for individuals. 

2.      Generally, most people will do what they are requested or made to do as employees and align with Hofstede's Power Distance dimension.  Deliver the message based on low or high Power Distance and preference of Hierarchical or Participant Orientation.  Managers from Japan would have superior's present change or present the change with authority.  Managers from the United States and Germany would present the change through discussion and persuasion.

3.      Most people do not like interruptions and loss; however, most people adapt well to new situations or circumstances and relates to Hofstede's Certainty dimension.  For example, meet the needs of specificity for those that have a Need for Certainty and reward and teach those that have a Tolerance for Ambiguity.  Japanese mangers would need to present many facts; the Americans and Germans would need open communication and learning exercises that show improvement through expertise.

4.      Most people being social in nature stick to culture values and norms.  Throughout history, culture values and norms are being redefined by organizations, war and economic and political instability.  This happens by redefining what the acceptable culture norms and values are and relates to Hofstede's Masculinity dimension.  For example, present the change through rewarding performance and results for the cultures that prefer Achievement Orientation and for those that prefer Quality of Life Orientation emphasis service interdependence, and solidity.  The manager from Japan, Germany and the United States must be decisive and intuitive, as well as ensure the change will be achieved through hard work (Bing, 2012; Hofstede, 2012; Minkov & Hofstede, 2011; Williamson, 2004). 

The Meaning of Culture of a Society

            Culture of a society means the shared beliefs, customs, values, and other characteristics of a specific group or society (House, et al., 2004; Minkov & Hofstede, 2011; Usunier & Lee, 2005). “Culture is the collective programming of the mind distinguishing the members of one group or category of people from others” (Hofstede, 2012).  House, 2006 indicates cultures are clustered or broken down by most scholars as intercultural societies based on geographical regions, modernization and ethnicity, and language and religion.  Each of these groups share commonalties of regions in the world, historical background, language, religion, values, ethics, traditions, and many other traits that make up the society of culture.  In the GLOBE study House (2006) developed societies of culture with the aforementioned scholarly guidelines—the society clusters are Anglo, Latin Europe, Nordic Europe, Germanic Europe, Eastern Europe, Latin America, Sub-Saharan Africa, Middle East, Southern Asia, and Confucian Asia.  House and Hofestede's studies indicate that societal clusters can be determined by shared climates (Hofstede, 2012; House, et al., 2004; Minkov & Hofstede, 2011; Williamson, 2004). 

Conclusion

Throughout the world cultures of societies exist—there are differing methodologies on how to group people; however, as the world becomes more globalized though technology and business the societies of culture will become more and more melted together and yet, there will remain societal units that exhibit deeply rooted cultural influence of their ancestors.  Managers from Japan, Germany and the United States have cultural differences; they manage people based on their inherent cultures.  However, research indicates that managers from all three countries using excellent communications skills and Hofstede's cultural dimensions can implement effective change strategies and understand the societies of culture that make up their work force even though they belong to unique cultures of society.

          

References

Bing, J. W. (2012). ITAP International, from http://www.itapintl.com/facultyandresources/articlelibrarymain/hofstedes-consequences-the-impact-of-his-work-on-consulting-and-business-practices.html

Firoz, N. M., & Taghi, R. (2004). Understanding Cultural Variables is Critical to Success in International Business. International Journal of Management, 21(3), 307-323.

Griffith, D. A., Myers, M. B., & Harvey, M. G. (2006). An Investigation of National Culture's Influence on Relationship and Knowledge Resources in Interorganizational Relationships Between Japan and the United States. [Article]. Journal of International Marketing, 14(3), 1-32.

Hofstede, G. (2012), from http://geert-hofstede.com

House, R., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (2004). Culture, leadership, and organizations-The GLOBE study of 62 societies. Thousand Oaks, CA: Sage Publications.

Minkov, M., & Hofstede, G. (2011). The evolution of Hofstede's doctrine. Cross Cultural Management, 18(1), 10-20. doi: 10.1108/13527601111104269

Usunier, J. C., & Lee, J. A. (2005). Marketing Across Cultures (4th ed.). New Jersey: Printice Hall.

Williamson, C. D. (2004). The development of stewardship relationships between managers and their principals: A study of the effect of three organizational/cultural variables. Ph.D. 3117958, Regent University, United States -- Virginia. Retrieved from https://login.libproxy.edmc.edu/login?url=http://search.proquest.com/docview/305054976?accountid=34899

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