March 9, 2011
The Charles Martin in Uganda story shows how companies can often be at odds with a manager who is managing operations in a distant land. The values and normal tendencies of a company can sometimes be interpreted much differently by the manager on the ground. In this example, we will look at how Charles Martin dealt with cultural differences of Uganda and the U.S.-based Hydro Generation (HG) Company.
On the surface, the diverse culture could be seen as a turnoff to foreign companies, but HG, with the help of Charles Martin’s life experiences and scholastic knowledge of the region saw an opportunity to grow in Uganda. But at first glance this may prove to be difficult for HG. This was HG’s first pursuit of business in Africa, so growing pains were almost certainly to be felt.
Like many African countries, Uganda has a tumultuous history. With the dictatorship of Idi Amin ruling with an iron fist, life in Uganda was difficult (Daniels, Radebaugh, & Sullivan, 2011). A diverse country in terms of religious sects, Christianity is the majority, though there is a large number of Muslims among many other religions (Daniels, Radebaugh, & Sullivan, 2011). In terms of language spoken, English is the official language, however many speak only an indigenous language such as Bantu or Nilotic (Daniels, Radebaugh, & Sullivan, 2011). In addition the history, language, and religion, HG Company had to also take into consideration the tribal normalcies as well as the business normalcies of the Uganda culture.
With the pending displacement of 700 villagers (Daniels, Radebaugh, & Sullivan, 2011), HG was now faced with its first major hurdle that most companies will face when expanding globally. This hurdle is best described in how to best coexist with the cultural norms of a country. Instead of trying to simply impose the will of HG Company, they assembled a package that they felt would best benefit those being displaced.
References: Daniels, J., Radebaugh, L., & Sullivan, D. (2011). International business: enviroments and operation, thirteenth edition. Upper Sadlle River, NJ: Pearson.