Read the case given below and answer the questions given at the end.

CASE STUDY -2
Local Colour - Challenges at Global Operations

"We are not an American company. We are a Thai company." This is what C. William Carey, Chairman and CEO of Town and Country Corporation, the largest U.S. jewellery manufacturer and whole seller, said about his Thailand subsidiary, Essex International Company Ltd. Carey has built a successful business and on the basis of respect for native customs and cultural traditions. Carey proclaims, "I don't believe in Americanizing them. You have to go to a place and understand its strengths and massage them." He goes on to say that people "don't want outside influences coming in that distort their values and work ethics.""If you take a cookie-cutter approach and stay open on a Buddhist Holiday workers will be resentful and feel you are disrespectful of their culture. They don't care if you are closed on the Fourth of July, but they do care if you're closed on the Queen's birthday in April." Carey's views are shared by a majority of CEO's, who feel that adapting to the local culture is the biggest problem of globalization. Carey has apparently accomplished the goal of cultural awareness to its fullest extent. When Town and Country established a subsidiary in Hong Kong, he spent $15,000 on fortune-tellers to tell the workers the fate of the company. Carey also gave all public holidays after his purchase of Little Switzerland, based in the Caribbean.Thailand is where Carey has proved to be most culturally sensitive. Essex enjoys being ranked in the top 5 of over 800 jewellery manufacturers in Thailand, with net annual sales of $19.4 in U.S. dollars. Carey chose Thailand which ranks second in the world in jewellery exports, because of the people's tradition in stone cutting, the low labour cost and the work ethics. Also, Thailand's probusiness attitude gave Essex a four-year tax holiday and permission to build a warehouse free of restrictions and duties. Carey's original goal was to make it acceptable to the people of Thailand, who are motivated by security and respect from their employer. Carey had to do many things to gain their confidence, including sitting cross-legged for a three and a half hour ceremony, inviting nine Buddhist monks to bless their seven-storey factory, and building a Buddhist spirit house at the factory for daily prayers and offerings.After using 115 expatriates to set up the company in the first year, Carey sent them all back and used a polycentric recruitment policy to fill all positions. Essex's initial 200 workers were between the ages of 17 and 22 and had previously worked rice fields. Essex lured women from 500 miles with rent-free dormitories and the opportunity to learn a trade and increase their standard of living. The women received on-site medical care and exams, three meals a day, and uniforms. Courses for high school equivalent diplomas are offered, as are classes in home economics and self-improvement. There is a library and a number of recreational facilities. These benefits are intended to both help the workers develop and keep them occupied. "We wanted to give them spirit de corps...to mould them in what we wanted by getting them to excel," Carey stated.These women, who at one time had nothing, were able to send money home, open bank accounts, and join the profit-sharing programmes. They were offered company stock in 1991, and these workers now own approximately 10% of the 30% publicly held stock. The total cost is hard to figure, but Carey estimates that these benefits add around $250 a month per employee.Recognition is another factor in Essex's success. There are both team and individual incentives. While at first people were reluctant about individual incentives, the recognition is now welcome. As their performance improves people can move up the line and earn even more money, relocate to semi-private dormitory, be named employee of the month, or receive a pat on the back in a public ceremony. Carey's cultural sensitivity knows no bounds. In the beginning stages of Essex, he allowed a work schedule that started much later than in the western world. After employees were comfortable with the company, he was able to slowly move up the time to 8 A.M.To sum up, 95% of the employees have stayed, unlike the Thai average. There is a low level of absenteeism and a waiting list of job applicants. When there is a large order, Essex has no problem getting the workers to stay late. "The workers feel proud of the company," says Carey. "They are proud and appreciative of working in a company where they are recognized."

Answer these questions:
1. What are the challenges one can face in managing a cross-cultural workforce/organization?

2. What was the strategy of Carey for building a successful operation in Thailand?