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CASE ANALYSIS: SAP

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This 3-page paper studies SAP and its problems with globalization. Bibliography lists 1 source.

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3 pages (~225 words per page)

File: AS43_MTsapcasan.doc

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Unformatted sample text from the term paper:

from a local or regional focus to an international one) creates another problem (resentment among staff at headquarters). The initial problem was that, at SAP headquarters, the global perspective wasnt easily embraced. Thats still the main problem - despite the activities Sap has undergone to become "global" (i.e., outsourcing, making English the official language for corporate meetings and hiring foreign managers), the global perspective continues to not be easily embraced. The issue here isnt necessarily globalization or not as much as its change and convincing the staff that such change is necessary (which is especially a problem in SAPs insular culture). In other words, the surface problem here is resistance to globalization. The underlying problem is resistance to the entire change which, in turn, is creating resentment and anger among the original staff. Analysis How do we know that the underlying issue of resistance to change is the main problem here? Certainly interviews with employees have been one way to find this out - when employees complain about loss of autonomy and the fact that they no longer feel as though theyre in charge, there are issues. But there are other, more subtle ways to determine resentment and anger, one of which is lost productivity. When employee morale drops, so does efficiency and productivity. No one really cares any more about the job at hand and quality suffers. This is a serious issue. SAP is in a very competitive industry (a service industry) and loss in quality could erode any competitive advantage the company might have. Other ways to determine problems and resentment are through absenteeism. Resentment leads to stress, ...

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