Description
Directions
Select a foreign subsidiary of American multinationals (STARBUCKS) and assess with documented evidence the subsidiary’s operational environment. Your project should clearly identify the host country of the foreign subsidiary. The final draft of your project must contain a synopsis; an introduction and be able to justify the choice of your subsidiary by assessing the entire business practices and environment of the host country. I. Equity Sharing
Discuss and document the subsidiary’s initiation of joint ventures with nationals. If joint ventures do not exist, give the full details of the subsidiary’s devised successful strategy in the host country. Your input must always document the evidence
II. Participative management
Demonstrate and document that the subsidiary is actively involving nationals, including those in labor organizations or government, in the management of the subsidiary. Give benchmarks to illustrate your ideas. For instance report the number of nationals who are involved in the middle or upper management of the subsidiary and the advantages of such leadership strategy.
Explanation & Answer
Attached.
Ethos Water
Thesis Statement: Ethos Water applies the principles of equity sharing and participative
management.
I.
Equity sharing
A. Ethos Water has engaged in several projects in South Africa that have primarily
sought to assist people who lack access to clean water
B. The company produces and sells water within South Africa and at the same time
exports water to other countries such as the United States and Canada.
C. For any bottled water that is imported to the United States, 5 cents is sent to the
fund while if the water product is sold to Canada, 10 cents is sent to the fund
D. In 2008, the company partnered with other non-governmental organizations
known as Project Concern International and CARE with each foundation raising
approximately $1million over a period of three years
E. Support was also provided by Starbucks and close to 54,000 people who never
had access to clean water enjoyed this amenity for the first time
II.
Participative management
A. Ethos Water has engaged with various labor movements across South Africa.
Most labor unions in South Africa have advocated for access of some of the
essential amenities that lack in the current population especially in the slum areas
B. In other cases, they also deal with the other institutions such as non-governmental
organizations that address and support the above initiative.
C. The management of the company also hires some of the local natives in the top
management of the company in the process increases the number of locals present
within the organization
D. By employing people from the local community, the company was establishing a
framework for the company to be accepted by all parties and in the process
enshrining the name of the company in the country
Running head: ETHOS WATER
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Ethos Water
Name
Institution
ETHOS WATER
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Ethos Water
Introduction
Starbucks International is an American multinational coffee company founded in 1971.
The company has several different subsidiary companies under its names located across various
parts of the continent. One of the subsidiary companies is Ethos Water, a company that
specializes in the production of clean bottled water in South Africa. The company was
established in South Africa after it emerged that some children lacked access to safe drinking
water in one of the largest slums in the African continent. The growth of this unit was primarily
supported by McKinsey and Company which carried out awareness campaigns on the need to
have clean water for the children population (Starbucks, 2013). Considering that South Africa
remains one of the most developed countries in Africa with an ever-increasing population, it was
necessary for the company to establish a unit that could provide one of the essential amenities.
Other bottled water companies do exist in South Africa though the price of bottled water in these
businesses is quite high making it unaffordable for the local population in particular for people
living in the slum area due to the poor living conditions that these people find themselves. ...
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