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Copy General:

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on 24 September 2013

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Transcript of Copy General:

Copy General:
A Copy Shop Goes Global

Jiayi Hong
Disi An
Yufei Wang

Question 2:
How important was Paul Panitz's vision to the decision to go into Hungary? How would you characterize his leadership and management style and his commitment to "doing well by doing good"?
Question 3:
Compare the recollections of Ken Chaletsky, a US manager with Copy General, and Erno Duda, Copy General's initial country manager in Hungary. How do their perspectives differ, and how do they reflect the cultural values of their respective countries?
Before 1989
Continued to expand
Eight retail copy centers in Hungary
Seven in Czech Republic
Four in Warsaw Poland
New retails in Moscow, Russia; Riga, Latvia; Shanghai, China
Corporate with large corporations, organizations and governments.
Communist states led by Soviet Union
Revolution of 1989 began from Poland (Aug.), Hungary (Oct.) and Czechoslovakia (Nov.)

Hungary started privatization;
German reunification

the Soviet Union collapsed
Early 1990: prepared to open a copy center
Paul Panitz
43 years old American businessman
Found business opportunities after the Revolution of 1989
Had both time and money
Wanted to help people by creating business that created jobs and giving opportunity to share information
Initiator of establishing Copy General in Eastern Europe

Paul's College friends
Created and operated a successful chain of copy centers in Washington -- Copy General
Signed on the venture to Eastern Europe with Paul

Hired as translator and aide at first
Natural-born wheeler-dealer
Hired as Hungarian country manager
Successful manager and businessman after he learned working with Paul and Copy General

Ken Chaletzky &
Dirck Holscher
Erno Duda
First store opened in Budapest, Hungary
General Challenges
Formal institution
Communism & Capitalism
Question 1.1:
what are some of the general challenges of starting a new business in another country?
Informal institution
Economic environment

Political risks

Legal systems
Cultural different

Codes of conduct

Society environment
Centrally planned economy
The community or society solely owns all resources and means of production
Profits of any enterprise is equally shared by all the people
Society is above individuals
strong censorship with restrictions on what could be said or written
Government controls most aspects of people’s live
Marketplace economic system
Private ownership of resources and means of production
Profits belong to the private owner only
Individual freedom is above the state or society
Freedom of speech and movement
Limits on government’s interference of people’s live
Question 1.2:
What specific challenges did Copy General face in Eastern and Central Europe?
Cultural different
When hiring Erno Duda, Paul and Dirk did not consider his social status or age, bust only his qualification
Language and communication
Finding a location
No organized real estate market and no commercial real estate agents
All retail space was owned and controlled by the government
Frequently potential landlords wanted equity positions in the business or share space
No rational legal system or property laws
Finding a business partners
Market research
Paul paid $5000, but limit information
Erno used less than 100, and got rich information
Find business partners
Most of banks refuse Copy General, due to their limit capital
Only Budapest Bank through they can work together,after banking system improved over time, they finally became business partners.
Not achievement, but who you are and relationships are important if you want to do business
Circumstance of the situation matter, “every time an American showed up the prices suddenly quadrupled”
Paul and Dirk tried to do business as they do in the US
Specific challenges for Copy General
Cultural different
Language and communication
Finding a location
Finding a business partners
Finding supplier
Compare these countries, USA has lower uncertainty avoidance.
“Even they had some skeptical about the concept, they singed on.”
“The banks did not want to deal with company only had 1 million forints as based capital.”
Cultural different
They use different languages
Need local people as a translator and interpreter
Different communication style
direct, personal, instrumental

“Paul clearly states what he wants and isn’t willing to compromise, he is direct and focused”

Indirect, contextual, affective

Negotiate rather than say no
Respond politely and formally in order to preserve the dignity of the situation
Finding suppliers
Need Copy General pay 100% cash up front
Cannot provide the new models
Lease equipment on very favorable terms
To showcase Kodak’s equipment
An free backup equipment
Copy General as a backup for Kodak machines in government office in Hungary
What did Paul do?
Has the ability to find business opportunities
Willing to help people
creating business that created jobs
giving local people opportunity to share information
Concerned about local staff
Know and trust subordinates
Do you think Paul is a leader or manager?

9,9 Team Management Style
Interdependence through a "common stake" organization purpose leads relationships of trust and respect.
leaders typically encourage their people to play an active role in assuming control of their work, and authority usually is highly decentralized.

are visionary agents with a sense of mission who are capable of motivating their followers to accept new goals and new ways of doing things. One recent variant on transformational leadership focuses on the individual’s charming traits and abilities.
Doing well by
doing good?
Important to go
into Hungary?
Ken Chaletzky Vs Erno Duda(USA Vs Hungary)
Uncertainty Avoidance
Ken Chaletzky
Immunined to ambiguous situations and risks
Ready for innovation
“We signed on”

Erno Duda
Weak to unclear situations
“What a lousy idea”

Both were masculine, but Erno Duda scored higher
Ken Chaletzky
Loved successes and achievements
Erno Duda
Get things done at a lower cost
Worked and faced with higher stress than Ken Chaletzky
Became investment banker and founded his own biotechnology company

Ken Chaletzky

scored a little higher
Had effects on attitude toward working, work process, and decision making
Erno Duda
Usually take care of himself
Understand the country and culture well
Then Copy General was benefited by Erno Duda’s individualistic

Both were highly individualistic
Power Distance
they have different perspective
Ken Chaletzky
expand the business
Wanted the company to be successful
Erno Duda
MAS is higher
Valued more on individual goals and success

Both had low PDI; this similarity was helpful to the business
Long-term Orientation
Ken Chaletzky
In short-term oriented culture
Focus on traditions and fulfilling social obligations

Erno Duda
In long-term oriented culture
Adapt traditions to a modern context
Is not shown much in the case, but with different positions:
Ken Chaletzky: Top level manager
Erno Duda: Operational manager
Question 4:
What lessons (if any) can you derive from Copy General's successful experience in Eastern Europe and beyond?
Cultural Knowledge
Cultural Dimension
Leadership and management
Response to Opportunities
Cultural Knowledge
Build Relationship
- communication
Custom and manner
- way of life
- attitude from different cultural
Leadership and management
Ways to solve problems
- hire translators
Role in business
- strategy
- work as a team
Response to Opportunities
Partner and employees
Cultural Dimension
"Independence Reborn and the Demons of the Velvet Revolution" in Between Past and Future: The Revolutions of 1989 and Their Aftermath, Central European University Press. ISBN 963-9116-71-8. p.85
Luthans & Jonathan P. Doh, (2012), International Management: Culture, Strategy and Behavior, 8ed, p456-487
Thank you !
Different between Managers and Leaders
Full transcript