Class Notes (1,100,000)
CA (650,000)
Carleton (20,000)
BUSI (700)
Lecture 6

BUSI 2301 Lecture Notes - Lecture 6: Amkor Technology, Business Insider, East Asian Studies

Course Code
BUSI 2301
Alan Cai

This preview shows pages 1-3. to view the full 10 pages of the document.
Manny%Singh%101035054% % November%6,%2017%
1. Every company creates its own unique environment through the norms and values that
the company believes in and sets forth. This creates certain expected demands as well as
constraints the various environments of the business. The cultural aspect of the environment at
Amkor is the employees abide by Confucian values such as embracing the importance of family.
For example, the company’s power distribution preferences are towards hiring family members
(President of Amkor is the eldest son of HBG’s founder). Initially, the company began an
adaptation global strategy, by adopting traditional Korean business policies. Norms and values in
the environment are formed off of American experiences intertwined with Korean experiences.
When looking at the organizational environment of Amkor, the factors that play a role are
the relationship with stakeholders, characteristics of local environment, as well as understanding
the organization strategies and structures. The company represents a transition from a family to
investor type of regional model of organizations. At first, the power distribution and trends
towards management selection was towards family membership. Later on, Davenport, VP of
Amkor operations, wants to transition the company towards a performance-based promotion
policy that does not allow for biased promotions, but rather on an individual's efforts and
effectiveness. This allows the emphasis of focus on annual reports to the primary beneficiaries
(e.g. stockholders and investors). The business environment in Korea places an importance on
building connections in the business community, in order to be successful. For example, Lee and
his father are part of elite business clubs that allows them to build useful networks in the
community. The country has experienced economic growth and political prosperity the past three
decades. For example, the standard of living has improved and prevails through the GPA per
capital was $2,300 in 1980 when compared to a $30,000 GDP per capital in 2010 (Trading
Economics, 2017). Amkor Technologies is a joint venture built on Korean-American values. The

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Manny%Singh%101035054% % November%6,%2017%
company needs to continue to work on their multicultural skills in order for Korean and
American employees to work in cohesiveness.
The situational environment of Amkor consists of problems on cross-cultural decision
making for different situations. This is due to everyone’s different preferences on approaches due
to their different experiences. For example, Davenport places an emphasis on effectiveness and
efficiency while Alan Bird places an emphasis on the culture of the region in which they operate
when making decisions. This can cause discrepancies when making decisions. Alan Bird is
closer with the employees and has built meaningful relationships with them, which lets him hear
other employee’s opinions. This can be the key reason as to why Bird opposes to many changes
because he feels that he is doing right by the employees, which in the end, he thinks he is doing
right by the business.
2. The nature of the conflict between Davenport and his subordinate, Alan Bird is that
Davenport believes Bird was not performing up to par with the standards of an executive
assistant with effectiveness, efficiency, and ‘lacked the fundamental American values that made
the company so successful’ (pg.7), due to him becoming too obsessed with the Korean.
Davenport is recognized by his no-nonsense approach through his previous corporate
streamlining strategies in assignments in other regions. In addition, Bird is recognized through
his knowledge of Korea and bringing fresh ideas and strategies to the table. Davenport believes
Bird is performing nonsense by focusing too much on the cultural aspect instead of focusing on
innovation and portraying the American company values. Thus, Davenport wants to recommend
a transfer for Bird back to the US to regain his American identity and core values. Whereas, Lee
believes that Bird is a huge asset to the Korean joint venture and does not agree with
Davenport’s decision to reassign Bird. Lee is upset that Davenport did not reconsider his

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Manny%Singh%101035054% % November%6,%2017%
decision, which left him no choice but to go over his head and message the ABI’s president to
overrule Davenport’s decision.
These problems have emerged because of the lack of communication and little concern
for improvement by higher management. Davenport could have discussed his issues with Bird
and they could’ve found a collective solution. There also shows a lack of effort shown my Bird’s
part, when he is becoming too culturally focused that does not allow him to innovate but rather
stay only by tradition. For example, Bird believes promoting females in male-dominant positions
is too much of a, ‘revolutionary’ change that could backfire. Instead, when asked other
employees in the company, they thought it was a good idea. Furthermore, Davenport follows a
competitive negotiation style, where he would want to eliminate the second inferior option and
choose the better choice. Whereas, Lee follows a problem-solving negotiation style that allows
him to look at problems as opportunities and to make the best of any situation given. In addition,
issues have risen due to their different upbringing and experiences. For example, Davenport
studied engineering and Bird studied East Asian studies. Which goes along with, when looked at
the employee’s behavior, Davenport is looking at the technical perspective in order to improve
efficiency. Whereas, Bird places a greater importance on culture and norms because he studied
the significance of culture in our lives. As well as his previous work in the Army, stationed in
Korea gave him the experience of making tactical decisions based on the cultural environment
and Bird continues that same mindset when working for Amkor.
3. When the ABI president supports either Davenport or Lee’s request, this brings potential
risks and benefits. If she chooses Davenport’s decision she can risk loosing Bird to a competitor
(e.g. Samsung), due to his culture expertise and experience in a technological division. If she
reassigns Bird the company would have to bring in a new junior executive to fill in the role,
You're Reading a Preview

Unlock to view full version