Read the attached case study, “From Regional Star to Global Leader,” by Nohria (reprinted from Harvard Business Review with permission of Harvard Business Publishing, Copyright 2009), to complete this assignment.
Write a paper that discusses the following questions through your research and analysis of the case study:

Discuss the company objective. Describe the objectives of Yang Jianguo, Alain Deronde, Yves Saurac, Antoine Lambert, and Elise Bernier.
Using a specific cultural framework (Hofstede, Hall, Trompenaars, Kluckhohn, and Strodtbeck) explain two major cultural values and two major societal values that influenced the negotiations between the French and Chinese representatives demonstrated within the case study. Select one of the three countries identified in the Topic 2 The Origin of Impact of Globalization Presentation assignment and provide a comparison of how the values are similar or dissimilar between the French and Chinese representatives in the case study with the previously selected country.
Provide two examples of verbal communication evident in the case. Explain how verbal communication differs between Jingauo and the French team during the negotiations. Compare the verbal communication styles in the case study with the country you selected in #2 (above).
Provide two examples of nonverbal communication evident in the case. Explain how nonverbal communication differs between Jingauo and the French team during the negotiations. Compare the nonverbal communication cues in the case study with the country you selected in #2 (above).

During negotiations, what was the predominant cultural tendency of the French and Chinese to utilize a distributive or integrative style? Compare the predominant cultural negotiation styles in the case study with the country you selected in #2 (above).
Explain the differences in the negotiation tactics and bargaining behaviors between the French and Chinese. Compare the predominant cultural negotiation tactics and bargaining behaviors in the case study with the country you selected in #2 (above).
Explain the leadership competencies and characteristics that Yang Jianguo, Alain Deronde, Yves Saurac, Antoine Lambert, and Elise Bernier would need for a successful negotiation.
HBR Case Study
BY NITIN NOHRIA
COMMENTARY BY KATHERINE TSANG
MANSOUR JAVIDAN
JAMES CHAMPY
From Regional Star
to Global Leader
Yang Jianguo was promoted from country manager for China to global head
of product development at a staid French perfume maker. How to shed
some biases and win over his Western, tradition-bound colleagues – while
still breathing new life into an aging product line?
Daniel Vasconcellos
“PARISIANS may be famous for their
food,” thought Yang Jianguo, as he
picked at his rice, “but they should
leave Peking duck to us.” To welcome
him in his new position as senior vice
president of global product development at Deronde International, the
management team had convened
at La Mer de Chine, a local favorite
among foodies. The executives convivially traded opinions about which
wine might pair best with the duck
and the soft-shell crab.
Yang Jianguo – whose given name
meant “build the country” – couldn’t
help feeling a nationalistic pride in
his promotion. He had been country
manager for the fragrance maker’s China operations, having
been promoted from his job running a lab that had produced
two hit scents in the Asian market. Within 18 months, his Chinese subsidiary had become Deronde’s fastest-growing division
among emerging markets. The company’s CEO, Alain Deronde,
had chosen Jianguo over three other rising stars, betting on his
technical wizardry and, perhaps more important, his intimate
knowledge of Asian markets. (See www.regionalstarprequel.hbr.
org for details of the candidates’ strengths and weaknesses.)
Jianguo had no doubt that he
would come up with winning ideas;
he was less con?dent, however, that
his tradition-bound colleagues
would muster much enthusiasm for
them. But Jianguo couldn’t pass up
this chance: As yet, no global or local company had gained a dominant
share of the Asian fragrance market, so the race was on. Jianguo was
the ?rst Chinese national chosen to
head product development in the
global cosmetics industry. He was determined to live up to the hype his
appointment had generated in the
Chinese newspapers.
The CEO’s voice disrupted Jianguo’s reverie. He looked up at Alain’s smiling face. “We’re all
delighted to have you with us, and we can’t wait to see where
your ideas take us! I hope you and your family are enjoying
the pleasures of Paris.” Jianguo frowned slightly and said –
a bit abruptly, it seemed to Alain – that they were doing ?ne,
but he’d like to share some thoughts with the CEO before next
HBR’s cases, which are ?ctional, present common managerial
dilemmas and offer concrete solutions from experts.
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HBR Case Study From Regional Star to Global Leader
hbr.org
He had whiled away his
week’s executive committee
Offer your solution
share of summer weekends
meeting.
to the dilemma in
this ?ctional case
at the Deronde country
“Bien sur, I’ll have Caroline
study at regional
home in Beynac – canoeing
set something up,” said Alain,
star.hbr.org.
the Dordogne with Alain’s
remembering a typical comdaughter, Jasmine. The two
ment from Jianguo’s 360 reother candidates for the
views: “He’s a little hard to
read. He holds his cards close to the vest.” job – Elise Bernier, the marketing VP for
skin care, and Antoine Lambert, general
Before Jianguo had been chosen, Alain
manager of the company’s spa products
had tried to picture the scientist and
line – had also been invited to the famhis wife – what was her name? – sitting
ily estate. Jianguo wondered if he’d ever
on the terrace at the Deronde country
make the guest list.
home, nibbling walnuts and foie gras.
“I’m thinking we could add an Asian
The image seemed even more improb?avor to our ambient fragrances,” began
able now.
Yves, who had championed the development of Deronde’s successful new line of
Vive la Différence
air
fresheners. “I’m thinking a red candle
The next day, Jianguo was in his corner
on a beautifully lacquered base painted
office, feeling the pressure. After decades of double-digit growth, Deronde’s
market share was sliding. The loyal
buyers of its signature scent, Insouciance, were getting older. Worse, across
the board, Deronde’s labels re?ected the
sensibilities of North America and Europe, where growth was stagnating. The
company’s best prospects were in emerging markets, yet consumers in China and
with red Chinese designs. Call the line
many other Asian markets found West‘Chinoise.’ Would your wife buy that?”
ern scents unpleasantly strong. Sales
“That would depend on how it smells,
were weak in Latin America as well.
but probably not,” said Jianguo. “She
Deronde had opened a lab in São Paulo,
doesn’t care for air fresheners, and as
but Brazilian consumers, despite their
you know, we haven’t isolated scents
fast-growing economy, still favored mass
that might be appealing in China.
brands.
American women might ?nd it exotic,
Deronde was a family business with
but I don’t really see Chinese women
unmistakable pride in its French idenbuying a French candle that’s supposed
tity. Insouciance’s bottle, with its multito evoke their own culture. Would your
faceted crystal stopper and elegant upwife buy a candle shaped like a Chamward ?are, had been designed to capture
pagne bottle called ‘France?’”
the spirit of Paris. Jianguo doubted that
“I don’t have a wife.”
a bottle modeled after the Oriental Pearl
“Your sister, then.”
Tower in Shanghai would hold much ap“She might – it would depend on the
peal for this crowd.
scent. Point taken.”
He looked up with some irritation as
Jianguo raised an eyebrow at Yves,
a sharp knock interrupted his thoughts.
who sensed he was being dismissed and
It was Yves Saurac, vice president for
rose to leave. He was somewhat miffed
developed markets. Many of their colthat Jianguo had made no effort to soleagues had assumed that Yves would
licit his ideas about Deronde’s existing
get the SVP job – even, until virtually
Western customers – still the majority of
the last minute, Alain. Yves was a selfthe market – or even to offer any ideas
assured, genial guy; loyal and efficient;
of his own.
a strong leader; and thoroughly French.
“I really should call my niece,” Jianguo
thought as Yves closed the door behind
him. Lin, a young business school graduate in a junior management position
at a high-tech ?rm in Beijing, seemed
fairly representative of Deronde’s target
market. Since Jianguo had been promoted, Lin had pressed her friends into
experimenting with various Western
scents, but few brands stood out. Jianguo checked his watch; Lin would probably be just getting home. He picked up
the phone and started dialing.
When Jianguo asked her – in various
ways – what she and her peers were
looking for in a perfume, she answered
“light and clean” again and again. As for
Yves’s idea: “Right, and then they’re going to make a candle that smells like
Yves was miffed that Jianguo hadn’t
tried to solicit his ideas about Deronde’s
existing Western customers.
tandoori chicken, call it ‘Punjab,’ and try
to sell it in India?” she asked with a sniff.
“It’s insulting.”
The next week, the day before the executive committee meeting, Alain convened Jianguo and his erstwhile competitors at lunch for a preview of their
new product ideas. Over the cheese
course, the CEO quizzed Antoine about
a cobranding opportunity – which could
include moisturizer, sunscreen, and antiaging treatments – with a well-regarded
Parisian dermatologist.
“That’s reasonable, if not radical,” Jianguo chimed in. “But will anyone outside
France know or care who this fellow is?”
His colleagues stared at him blankly. As
the conversation progressed, Jianguo
learned that Alain was seeking to sign
Catherine Deneuve as a spokesmodel to
revive the sales of Insousiance and perhaps even extend the line to a perfume
named after her.
“‘Deneuve,’” Alain said. “An instant
classic.”
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Jianguo suppressed a sigh. Since his
arrival he’d received endless suggestions
from all corners, and the vast majority
reflected French imagery. “Tuileries,”
a lush line of green shower products.
“Ravissant,” a foray into the cosmetics
business: smoldering makeup that the
company would introduce with a stealth
campaign, an online soap opera starring
two glamorous young models – European, of course. And now, Catherine
Deneuve?
He took a deep breath and said, “I
have some other ideas.” Jianguo started
with what he suspected was his most
palatable proposal: to create an appetite
for ambient fragrances among Chinese
youth. The new offerings would need to
be subtle – light and ?oral. “I’ve found
some chemical compounds that could
help produce mild puri?ers that mask
pollutive odor,” he said. Jianguo also suggested a line of products to evoke the
peony – a mainstay of the Beijing Botanical Gardens and a traditional symbol
of prosperity in Japan. He explained
that he was researching compounds that
could dilute the ?ower’s scent to retain
its essence without overwhelming the
senses, given the novelty of fragrance in
many parts of Asia.
“We can call it ‘Jardin’!” Yves said.
Jianguo shook his head. He was thinking along the lines of the Japanese transliteration of peony, “Botan.”
“Lovely,” said Antoine.
“Sounds like ‘Botox,’” said Yves. “How
about ‘Fleur’?”
Elise, observing the exchange, noted
Alain’s wary expression as Jianguo made
his pitches. But she couldn’t tell if Jianguo had registered his boss’s unease.
Clash of Cultures
Early the next morning, Jianguo readied himself to face the entire executive
committee for the ?rst time since his
promotion. In the hallway, he spotted
Antoine, Alain, and Yves chatting quietly.
They stopped when they saw him, but
their faces gave away nothing as Jianguo headed into the conference room.
Elise was already seated, along with a
few others. She glanced up from her
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HBR Case Study From Regional Star to Global Leader
notes with a smile and said, “It’s kind
of a closed club, isn’t it?” Nodding awkwardly, Jianguo took his place and went
over his notes.
Fifteen minutes later, everyone was
settled at the table. Alain delivered an
elaborate welcome to Jianguo, citing
his technical brilliance and reminding
the team of the opportunities to be had
in emerging markets. Although sales in
China and other developing economies
were but a tiny percentage of overall
revenues, the prospects for growth were
nothing short of glorious.
Alain exchanged a quick look with
Yves. “We brought him in to help us sell
into those markets, so let’s be open to
new ideas.” With that, he turned the
?oor over to his new SVP of global product development.
Jianguo began with a quick review of
the ideas he had pitched at lunch the
day before and then launched into his
proposal for a line of skin care products
aimed at young men. He thought he had
the perfect spokesman: Olympic hurdler
Liu Xiang. Yes, he had dropped out due
to an injury and had broken the hearts
of more than a billion fans, but he was
making a comeback. He would be a symbol of hope, of opportunity. The Chinese
economy was exploding on the world
stage, reaching heights his grandparents
couldn’t have imagined, and Liu Xiang
was proof that China could produce a
track-and-?eld superstar.
“Will people know who he is?” Yves
asked. “Outside China, I mean?” He
looked around the room. “Yes, China
matters, but let’s not forget that most
of our customers aren’t in third world
countries.”
Jianguo moved on without comment.
“Before we can even start talking about
new products for these markets,” he
said, “we have to make some acquisitions. Our Beijing and São Paulo labs
aren’t adequately staffed. I’ve found a
small lab in Brazil that’s working on
chemical compounds to lengthen the
life of a fragrance and a market research
?rm in Singapore that has done a lot of
work on the male consumer.” He then
asserted that Deronde needed to ?nd
a Brazilian footballer to represent the
brand – actually, to ?nd a sports hero in
each emerging market. Indian cricket
star Yuvraj Singh, for instance, and a
Russian hockey star.
Elise pointed out that Brazil would be
hosting the World Cup in 2014. Deronde
could be a major sponsor, making a
splash with the proposed line of men’s
products.
“Aren’t we getting a little ahead of ourselves?” Yves said, looking at Alain, who
nodded thoughtfully. “Let’s not stray
too far from the core – at least for now.
Maybe we need some new faces for our
brands, but we don’t even know if there’s
a market for Deronde among men.”
Jianguo stiffened. He was getting
nowhere. The conversation turned to
?nancials until Alain checked his watch
and called the meeting to a premature
close. He was off to Davos for a week and
planned to tack on a few extra days for
skiing. He thanked the team members
for their ideas and asked that they take
advantage of his absence to collaborate
and come up with concrete plans for
two or three product launches within
the next 10 days. With that, he turned
his attention to Antoine, who was eager
to close the partnership with the dermatologist he’d been pursuing.
“I thought he had to leave,” Jianguo
muttered to himself, as the meeting
seemed to continue despite having
been formally adjourned. After a few
moments, Jianguo gathered his papers
and walked out of the room. Nobody
seemed to notice. “Why would Antoine
take this issue to Alain, rather than to
me?” Jianguo wondered. “Am I not responsible for new products worldwide?”
Yves watched Jianguo disappear and
made eye contact with Antoine and
Elise. They were competitors, but he’d
known them for years and as a result,
they also shared a degree of trust. Later,
when the three of them had a moment
to connect privately, Yves expressed earnest concern over the company’s future.
“Jianguo’s been with us for three weeks,”
he said. “I think I understand why he
got the job, and I’m trying to be a good
sport. I don’t think I’m being too traditional when I say we can’t give up on our
base. Jianguo and I haven’t had a single
conversation about Western markets.
I’ve even tried to ?nd ways to connect
East and West. Every time, he changes
the subject to one or another marginal
market.”
Left Out
A week later, Jianguo remained frustrated and confused – and uninvolved
in strategic decisions. In passing, he
thought he’d heard words like “marginal”
and “unsophisticated.” There’d even
been rumors of a gathering in Beynac,
but no invitation had come his way. On
the other hand, he’d seen nothing but
congenial smiles when he’d tried to promote his ideas.
Elise had told him in con?dence that
she loved his ideas but that he should
consider the politics. “You have to compromise,” she’d said. “I’m on the outside,
too. You have to deal on their terms because you can’t change them. Make nice.”
Jianguo remained skeptical. He was trying as hard as he could. What would it
take to get these people on board? Why
had Alain chosen him if he didn’t want
to listen to him?
Re?ecting on his predicament, he
wondered if it had been a mistake to
take this job. Perhaps he’d been better off when he was running Deronde
in China, free to do as he chose. Plenty
of competitors would be glad to have
him. He could probably make more
money – and get the credibility he’d
earned – somewhere else.
Can Jianguo make the transition?
Three commentators offer expert
advice.
Nitin Nohria is the Richard P. Chapman
Professor of Business Administration at
Harvard Business School in Boston. He
is the author of numerous HBR articles,
most recently “It’s Time to Make Management a True Profession” (October 2008),
written with Rakesh Khurana.
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