Managing a Global Business Transcript You work as a part of a team that is tasked with advising Belinda Lee, the CEO of Phone and Build. Phone and Build is a global telecommunications services provider in equipment manufacturing company incorporated in Delaware. Belinda Lee, an American citizen, has only been at Phone and Build for six months. She was hired in part because of her experience working in the United Kingdom and Australia. She has little background in Asia or Africa and needs the team's advice concerning issues related to international law, ethics, and culture. Belinda frequently faces legal, ethical, political, and cultural dilemmas arising from the firm's complex global business operations. At your weekly meeting with Belinda, she outlines the issues she's currently facing. Phone and Build is experiencing four problems, Belinda says. In one Central Asian country, we're faced with a pay-to-play scenario. We've submitted a bid for a contract, but we are beginning to doubt we will win it without giving cash or expensive gifts to the deputy minister of communications. Belinda continues: In the Middle East, the local nationals that are a subsidiary of Shinecall found out that they are paid less than the foreign employees. We've tried to bring in some new ex-pat staff to help, but we're having trouble getting their work permits approved. Meanwhile, some of our phones that were manufactured in South Africa and sold in US markets have overheated. Some have even burned users and damaged property. We ordered faux leather phone cases for distribution in several countries, where consumers don't like to use products made of pig leather. But the Chinese manufacturer delivered genuine leather cases instead. This could have a major impact on sales. I need your advice about how to think about these issues. I'll send you more information about each case over the next few weeks. I need specific recommendations on what actions to take in each case. Pay to Play Case Thomas Doright, the expatriate heading up Phone and Build’s operations in Growastan, a Central Asian country, has submitted a bid on behalf of Phone and Build for a US$5 million dollar contract to provide telecom services and products for Growastan's Ministry of Communications. Shortly after Thomas submitted the bid, Growastan’s deputy minister of communications asked Thomas to lunch. As they ate, the deputy minister made a proposal to Thomas: "If you can give me 100,000 US dollars in a bag within one week, the ministry will definitely be able to award the project to Phone and Build. Thomas paused when he heard this: He knew that his yearly bonus was tied to his success in Growastan. The deputy minister noticed the pause: "If you're uncomfortable paying me directly, you can give me a Maserati that I could use to pick up the winning contract. Or how about this? Why not donate $100,000 to my son’s political campaign?" Thomas looked away from the deputy minister and said nothing. The deputy minister continued, "Did my administrative assistant explain to you how it works when the contracts are announced? You can pay the $1,000 expedited service fee if you want to hear the results of the bid one hour before they're made public." After an awkward moment, the deputy minister continued, "Even if Phone and Build wins the bid, without being 'more cooperative' it might take a long time for the company's equipment to clear customs." Thomas wasn’t sure what to do. When he returned from lunch, he discussed the conversation with his manager of operations, who is a local national."You have to 'pay to play' in his country, that's just how it is," his manager explained.
What is the recommendation to Belina Lee in the Pay to Play Scenario.