This week’s focus is on the critical role of emotional intelligence (EI) in effective strategic leadership. EI refers to an individual’s capacity for recognizing one’s emotions and those of others.

Emotional Intelligence is a Key Leadership Trait In previous weeks, we focused on “what leaders do and how they do it.” This week, we address “who leaders are.” That is, we focus on individual attributes instead of leader behavior. It is important to point out that these two issues are highly related because successful leaders possess valuable traits that enable them to engage effectively in activities to create value for their organization.

Although there have been countless studies of leader traits (e.g., integrity, maturity, energy, intelligence), we address one that has really garnered a lot of attention in both the academic and business presses: Emotional Intelligence (EI). This concept has been popularized by Daniel Goleman who has published best-selling books. Goleman defines EI as the capacity for recognizing one’s own emotions and those of others.

Recent studies have found that effective leaders have a high level of EI and that EI is a better predictor of life and career success than IQ (intelligence quotient). The five components of EI are:

Self-Awareness, Self-Regulation, Motivation, Empathy, and, Social Skill

These five components are briefly summarized in EXHIBIT 11.3 in your text.

Globalization is another reason for the increasing importance of empathy (one of the five elements of EI) for business leaders. Cross-cultural dialogue can often result in miscues and misunderstandings. Empathy is a valuable antidote. Managers who have it are attuned to subtleties in body language. They can hear messages beneath the words being spoken. Further, they have a deep understanding of the existence and importance of cultural and ethnic differences.

For example, consider the case of an American consultant whose team has just presented a proposal to a Japanese client. When dealing with fellow Americans, the team was accustomed to being bombarded with questions after such a proposal. However, this time it was greeted with a long silence. Most of the members of the team interpreted the silence as disapproval and were ready to leave. However, the lead consultant gestured them to stop. Although he was not very familiar with Japanese culture, he was able to read the client’s face and posture and sensed not rejection but interest – even deep consideration. He was correct. When the client finally spoke, it was to award the consulting firm with the job.

Reference Goleman, D. 1998. What makes a leader? Harvard Business Review, 76(6): 93-102.

There are some potential drawbacks of EI; don’t confuse the role of each trait.   Below are a few flipsides of the benefits of its essential components if taken in the wrong context.

1. Effective leaders have empathy for others (leaders may confuse empathy with sympathy and fail to make “hard decisions”) 2. Effective leaders are astute judges of people (leaders may rely too much on their judgment and dismiss others’ insights) 3. Effective leaders are passionate about what they do, and they show it (passion may prevent leaders from other possibilities and ignore realities that others see) 4. Effective leaders create personal connections with their people (if there are too many unannounced visits, it may lead to fear of micromanagement.)

Corporate entrepreneurship (CE) refers to building entrepreneurial businesses within existing corporations. It has two primary aims: the creation of new venture opportunities and strategic renewal. In this section, we address corporate growth and renewal via internal venture development.

All the factors that influence the strategy implementation process – corporate culture, leadership, features of organizational structure, and rewards and learning systems – will affect how corporations engage in internal corporate venturing.

In some large corporations, the spirit of entrepreneurship permeates every part of the organization. It is found in companies where the strategic leaders and the culture together generate a strong impetus to innovate, take risks, and seek out new venture opportunities.

Firms using a focused approach typically separate the corporate venturing activity from the other ongoing operations of the firm. That is, CE is usually the domain of autonomous work groups that pursue entrepreneurial aims independent of the rest of the firm.

Two forms – new venture groups (NVGs) and business incubators – are among the most common types of focused approaches.

1.Welcome your fellow classmates by posing as the Director of International Business in any foreign country of your choice.

Introduce yourself and then welcome them by telling them a few things you feel they should know about the culture or customs of the business sector in that country. These should be things that would require them to make some adjustments from what they are used to in the U.S.

This will require you to do some research into the culture and customs of the country you chose.

2.Doing Business With Other Cultures

China

Very few outside firms have yet to make a profit in China. One primary reason is that Western-based MNCs do not appreciate the important role and impact of Chinese culture. When dealing with the Chinese, one must realize they are a collective society in which people pride themselves on being members of a group.

France

Many in the United States believe that it is more difficult to get along with the French than with other Europeans. This feeling probably reflects the French culture, which is markedly different from that in the United States.

Russia

The Russian economy has experienced severe problems, and the risks of doing business there cannot be overstated. At the same time, however, by following certain guidelines, MNCscan begin to tap the potential opportunities.

Discussion

1. Post a few cultural highlights described from each country above listed.

3.read the case:  Saudi Arabia International Spotlight span

1. answer the two questions at the end of the case, using knowledge learned from the chapter.

Saudi Arabia International Spotlight span :

Saudi Araljia is a large country in the Middle East cover- ing 856,000 square miles. The country borders the PersianGulf to the north and the Red Sea to the south. About one-fifth the size,of the United Statos, its natural resouraesinclude petroleum and natural gas (among the largest inthe world), iron ore, gold, and copper. The two major holycities of Islam are in Saudi Aratria: Mecca and Medina.l?5

With just ovar 2’l million people, Saudi Arabia isalmost entirely Arab Muslim (approximately 90 percentSunni and 10 percent Shia). The county’s population growth rate is estimated at 1.46 percent. Additionally, thecounfy’s population is overwhelrningly (approximately90 percent) yourger than 55 years of age. According toU.N. reports, 30 percent of the country’s population con- sists of immigrants.r26

The country’s GDP in 2014 was tlS$746 bi11ion.127From 2011 through 2013, annual GDP growth plummetedfrom 1″0 percent to 2.7 percent. With low oil prices world- wide, Saudi Arabia’s GDP growth remains stunted atabout 3.5 perceni.128

Saudi Arabia operates its government as a monarchy, wherein the king makes all important official decisions. The king appoints ministers who act as his advisers. In2011, women were granted the right to vote and run forseats in municipal elections, though gender oppression isstill commonplace and integrated into the legal system.The country’s laws are based on Islamic 1aw with someWestern elements incorporated. For many years, SaudiArabia has enjoyed favorable relationships with many Western nations. As it is a large exporter of fossil fuel, Western natioRs are somewhat dependent on maintainingcivility with the Saudis despite alleged human rights vio-Jations. In recent years, however, the Saudi monarchy androyal family have been suspected of aiding terrorismefforts, leading ,to somewhat strained relations withcountries in Europe and the U.S.12e

The government maintains strong conffols over the coun-try’s economy, which is highly reliant on extraction andproduction of oil and gas. It is the largest exporter of petro- leum, is the leada of the Organization of Petroleum Export-ing Countries (OPEC), and accounts for approximately

16 percent of prwen petroleum r€serves. Forergn workers play a vital role in the economy, with more than 6 millionexpatriates empioyed in a variety of industries, especial$ construction afid manufacturing. The govemment is making efforts to diversify its economy by growing ihe private sec-tor and by seeking to employ more nationals, balancing theworkforce.l3o

As oi1 prices have plummeted, in recent years due to avariety of factors, Saudi Arabia and ihe other OPEC coun-tries have been keeping outprt levels relatively high,resulting in’huge losses. While the country can cover thedeticits for the time being, a prolonged period of low oildemand could have devastati*g effects on the economic health of the country.lsl

You Be the lnternatianal Management Consultant

As oil prices ,continue to drop, Saudi Arabia is actively seeking foreign investors to come into the country, espe-cially in sectors such as kansportation, health care, tour-ism, and building materials. The country has also opened the retail sector to companies seeking complete ownershipof their business, negating the need forjoint venture part-nerships. The Saudi officials courting foreign lnvestorssay that, despite falling oil prices, the countryls other sec-tors are still growing and provide excellent investment opportunities. Moreover, officials have said they are will-ing to discuss modifying any rule or regulation that mightimpede investment by a major fcreign company.l32 .

• Your reflection discussion should be submitted online as a threaded reply.
• Your discussion should be at last 250 words (about 1 page double spaced with 12 font) and spell-checked with minimal grammatical errors. I am happy to read more if you have more to share.
• You will have to make your initial post before seeing others’.
• The grading of this assignment is based on the attached rubric.

Reflection question:

Using United Airlines as an example, identify each of the different levels of product (e.g., core value, expected product, etc.) as defined by Theodor Levitt.

• Your reflection discussion should be submitted online as a threaded reply.
• Your discussion should be at last 250 words (about 1 page double spaced with 12 font) and spell-checked with minimal grammatical errors. I am happy to read more if you have more to share.
• You will have to make your initial post before seeing others’.
• The grading of this assignment is based on the attached rubric.

Reflection question:

Using United Airlines as an example, identify each of the different levels of product (e.g., core value, expected product, etc.) as defined by Theodor Levitt.

Discuss W4 Analysis

Your answers should show familiarity with the text and topics being covered in the unit.

• Use the text, lecture notes, and/or PowerPoint as references
• Each question response should consist of at least 150 words.
• Responses should be free of typographical, spelling, and grammar errors
• Your answers should show familiarity with the text and topics being covered in the unit.
• Use the text, lecture notes, and/or PowerPoint as references
• Each question response should consist of at least 150 words.
• Responses should be free of typographical, spelling, and grammar errorsDiscuss W4 Analysis

  Your answers should show familiarity with the text and topics being covered in the unit.

  • Use the text, lecture notes, and/or PowerPoint as references
  • Each question response should consist of at least 150 words.
  • Responses should be free of typographical, spelling, and grammar errors
  • Your answers should show familiarity with the text and topics being covered in the unit.
  • Use the text, lecture notes, and/or PowerPoint as references
  • Each question response should consist of at least 150 words.
  • Responses should be free of typographical, spelling, and grammar errors