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Michigan State University
Center for International Business Education and Research
C I B E R     N E W S

March, 1997 Volume 7, Number 6


CHRYSLER
  • Doubled its international business in the last three years.
  • Plans to double it again by 2000, and again by 2010.
  • Quadrupled its international revenue since 1990.
  • Chrysler VP speaks to MBA class

    Thomas Gale, Executive Vice President for Product Development at Chrysler Corporation, addressed a class of MBA students on March 24, 1997. Gale received his B.S., M.S. and MBA from MSU.

    Gale highlighted Chrysler's turnaround from a company that almost went bankrupt twice during the 1980s to a Forbes Magazine "Company of the Year," posting record sales and profit numbers in 1996. Among other topics, Gale also outlined Chrysler's business strategy for the next decade and its planned expansion into world markets.

    According to Gale, Chrysler was forced to reinvent itself during the 1980s and took the opportunity to finally retool itself for long term profitability. In the 1980s Chrysler finally realized that it could no longer coninue to use the archaic corporate structures of its past. Plagued by the oil shocks of the 1970s and dinosaur designs of its "less than stunning products," Chrysler completely revamped its approach to business.

    Chrysler radically rethought its product development cycle. Previously, it had been using a sequential component-based process for development. This process completely segregated the various functions of a product's development. The new system provided for teams of designers, engineers, procurement specialists, manufacturing experts and sales managers to work concurrently toward designing an automobile. The design functions are thus dictated by and adaptable to the product, instead of the other way around.

    According to Gale, the Dodge Viper was a monumental automobile in Chrysler's history because its development process was the prototype for Chrysler's new design strategy.

    Chrysler has also aggressively pursued expansion in Japan, Brazil, Indonesia and China. Its strategy for these markets is to export North American products whenever possible, while only building overseas facilities when it is required to meet capacity or market entry requirements. Chrysler plans to exploit its key product strengths in foreign markets, which it perceives as the demand for Jeeps, trucks and minivans, and to add distinctive passenger cars to its marketable assets overseas.

    According to Gale, Chrysler has doubled its international business in the last three years and plans to double it again by 2000. When probed about Chrysler's role in China, Gale admitted some disappointment. While Chrysler believes China to be a very important market, Gale said the attitude and expectations of Chinese officials have not been very conducive for investment. For example, despite having to make large infrastructural investments and pay high start-up costs, China has not yet allowed foreign companies to own a majority interest in their ventures. Furthermore, they have not provided the necessary assurances regarding intellectual property.

    "When you're fronting all the money, this simply is not acceptable" said Gale. But he also noted that the Chinese market was too large to ignore, and that the timing now was just not right for Chrysler. "These things will disappear as economic pressure mounts."

    Gale attributed Chrysler's success to its ability and willingness to take risks. Its recent restructuring now allows Chrysler to concentrate on building "cars that people can feel passionate about," said Gale. "Because the only alternative to growth is decline."


    Speaking in tongues...
    Universities should encourage more language training outreach

    The seventh annual CIBER Language Conference was held February 13-15 in San Diego, California. Patricia Paulsell, Director of Business Language Initiatives for MSU CIBER, and Patrick McConeghy, Associate Dean for Graduate Studies and Research for the MSU College of Arts and Letters, directed a panel analyzing the needs and direction of modern language training.

    Among other top concerns for language educators, Paulsell expressed the need for greater outreach to high school teachers and more projects aimed at connecting educators with the business community. According to Paulsell, there is a growing interest on the part of high school foreign language teachers to incorporate business language and culture into their classes, but very few materials and expertise are yet available to them.

    To bridge this gap, Pausell urged participants to plan more events aimed at expanding their knowledge of foreign language pedagogy and spurring the development of new teaching materials.

    Towards this effort, MSU CIBER is among several institutions sponsoring the Taos Institute for Language Teachers (TILT). This two-week program will host approximately 60 teachers of French, German, Spanish and Russian to teach them about new developments in language acquisition research, business language pedagogy, methodology and teaching material development. The program will run from July 20 to August 1, 1997 and will be held in Taos, New Mexico.

    A lack of support and recognition within the academic environment has traditionally limited the effectiveness and popularity for similar programs. According to McConeghy, many younger faculty members have been reluctant to embrace these development programs because they do not significantly contribute to their dossiers for promotion and tenure.

    A new outreach document developed by Michigan State University, however, hopes to reverse this trend. "Points of Distinction: Planning and Evaluating Outreach" and its companion document "Matrix: Four Dimensions of Quality Outreach" was developed to assist faculty leaders plan, evaluate and reward community outreach efforts as part of a tenure building activity. The University hopes such efforts will help encourage the development of more such programs as TILT and fulfill its mission of serving its surrounding communities.

    Recognizing the importance of foreign language training in preparing American students for the future, MSU CIBER hopes to reaffirm its commitment to language acquisition through sponsoring additional workshops for foreign language educators.


    Taos Institute for Language Training
  • July 20 - August 1, 1997
  • For French, German, Spanish and Russian language instructors
  • Will cover business language pedagogy, methodology and materials development
  • Program organization based on ACTFL National Foreign Language Standards
  • 517) 432-2286 for more information
    JCMU offers executive training seminar in Japan

    The Japan Center for Michigan Universities (JCMU), a joint venture between the State of Michigan, Shiga Prefecture in Japan and Michigan public universities, is launching a new program designed for business executives entitled Management for the Japanese Market.

    The first of these seminars will be held June 15-22, 1997 at the JCMU facility in Shiga Prefecture, Japan. The $3,900 program fee includes lodging in a luxury hotel, local transportation, excursions to the Kansai and Tokyo areas and most meals.

    Primarily aimed at executives currently doing business with or expanding operations in Japan, the program expects participants from all three NAFTA countries. Guest speakers will include high ranking officials from the Bank of Japan and the Ministry of International Trade and Industry, as well as experts in business, education and government.

    According to MSU professor Dennis Patterson, much of the information available regarding doing business in Japan misleadingly offers a "magical formula" for success. The JCMU program will try to dispel this myth.

    "We want to help executives discover the available information and networking resources which will empower them to make independent, informed business decisions about their Japanese operations," said Patterson. He is one of several faculty members leading the seminar. For more information regarding this program, please call the JCMU office at 355-4654.


    CIBER team studies SME processes

    Peter Liesch, visiting professor from the University of Tasmania, and doctoral student Gary Knight are collaborating on a research project that seeks to better understand how successful small- and medium-sized enterprises (SMEs) utilize their resources and internalize information to access overseas markets.

    The study notes that many SMEs have achieved a high level of internationalization that was once thought to be possible only through large-firm internalization of external markets. Understanding how these firms achieved this is important because SMEs are usually the dominant contributors to national prosperity. For example, in the APEC region, small- and medium-sized enterprises make up 90 percent of all enterprises and account for 32-84 percent of all employment. Additionally, these firms also represent 30-60 percent of the GDP in these countries and 30 percent of all exports.

    The process in which SMEs internalize information on internationalization has not yet been well understood. Eventually, Liesch and Knight hope their study will help other firms access overseas markets. For more information regarding this project, please call Gary Knight at 353-4336.



    The Eli Broad Graduate School of Management

    International Business Center
    Michigan State University
    Eppley Center
    645 N. Shaw Ln Rm 7
    East Lansing, MI 48824-1121
    USA

    Exec Director's Office
    N356 North Business Complex
    Tel (517) 432-4320
    FAX (517) 432-4222

    IBC Office
    Eppley Center
    645 N. Shaw Ln Rm 7
    East Lansing, MI 48824-1121
    Tel (517) 353-4336 FAX (517) 423-1009
    http://ciber.bus.msu.edu
    UPCOMING EVENTS

    SPEAKER: "Becoming a Great Global Company," Geoffrey B. Bloom, Chairman and CEO, Wolvering World Wide, Inc.
    27 March, 1997 at Michigan State University. 12:40 p.m. in 117 Eppley. Coffee reception at 2:00 p.m. in N520 North Business Complex.
    SPEAKER: "The Do's and Dont's of Publishing in Scholary Journals," Professor Robert Lusch, University of Oklahoma.
    28 March, 1997 at Michigan State University. 9:30 a.m. in N520 North Business Complex.
    International Business Institute for Community College Faculty
    18-23 May, 1997 at Michigan State University. For more information, contact MSU CIBER at (517) 432-4320.

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    Document last modified on April 4, 1997