Indian Institute of Management Calcutta CEMS MIM · PDF filebusiness strategies and programs...

Prof. Sougata Ray Page 1

Indian Institute of Management Calcutta

CEMS MIM Program

Term V (2016-17)

Course: Global Strategic Management

1. Introduction

The world of business has been witnessing two major shifts in the new millennium. First, with

the saturation of developed economies and the emergence of burgeoning middle class in

developing economies the battle place for global leadership in business has been rapidly shifting

towards emerging markets. This has also given rise to an acute need for global managers from

developed economies with requisite knowledge and skills and most importantly with a global

outlook and mindset to provide leadership in integrating businesses across developed and

emerging economies. Second, with the emergence of a vast pool of talented and educated

knowledge workers riding on the demographic shifts towards more young population,

internationalizing firms from the emerging economies like China and India (often called the

emerging multinationals or EMNCs) show immense potential to be at the fore front of global

business leadership in the foreseeable future. This has also given rise to an acute need for global

managers from these economies with requisite knowledge and skills and most importantly with a

global aspiration, outlook and mindset to provide leadership in managing cross border

operations.

2. Objectives

This course derives its logic from the increasing globalization of business and seeks to develop

concepts and tools for designing and implementing effective strategies in the rapidly changing

global business environment. The course will build on the concepts and issues raised in the core

strategic management course. Firms need to manage the tension between two opposing forces in

cross border-strategy: On the one hand, as globalization has been increasing over time, strategic

opportunities and challenges are no longer isolated within national borders. On the other hand,

important differences still persist across countries – in terms of business systems, local market

opportunities and challenges, locational advantages/disadvantages for competing globally, etc.

Recognizing this tension, the course will focus on the geographic element of a company‟s

strategy. We will study MNCs in the context of both developed markets and emerging

economies.

Global Strategic Management Course Outline


Our emphasis will be on understanding strategic issues that managers of MNCs face, and on

applying tools and frameworks that help address these issues. In particular, the course objectives

are as follows:

To challenge you to think critically about various facets of globalization of business and

dynamics of global competition.

To familiarize you with the problems and perspectives of doing business across national

boundaries.

To develop an understanding of conceptual and managerial motives, issues and intricacies in

foreign market entry and management of cross border operations;

To familiarize you with some unique organizational challenges in a multinational corporation

and how strategy gets formed in such settings;

To foster an appreciation of the external forces, ethical concerns and human values that

influence and shape the business manager‟s job in the global context.

To assist you in acquiring the skills necessary to analyze, assess, design and implement

business strategies and programs that transcend national boundaries.

3. Course Pedagogy

To capture the pragmatic, action-oriented nature of a manager‟s job involved in international

business, we shall primarily use the case method of teaching, and supplement the case

discussions with readings, lectures, role plays or other inter-active exercises, as necessary. The

skills this course seeks to develop can be sharpened only through practice. This calls for

exposing you to the "real world" in the classroom! The case method has been found to be the

most suitable pedagogical device in this regard. It enables one to simulate, as closely as is

feasible, the "real world" in the class room. The simulation is complete and importantly effective

only when you come fully prepared to the class. Case and reading material are assigned for each

day. It is mandatory that all participants will read and thoroughly analyse the case/reading before

coming to the class. If a trade off has to be made for some reasons, it has to be made in favour of

the case assigned. Thus the onus for deriving maximum value from this course lies as much with

you as with the instructor! Your central goal should be to develop your own personal synthesis

and approach for identifying and addressing key strategic issues facing a company in

international business.

The participants are not unfamiliar with the case method. Nevertheless it will be worthwhile to

reemphasize here "what goes into a case preparation." Good Case preparation requires you to



mentally "get inside" the case. Do not approach a case as you would an article in a magazine.

You are not an observer. You are a participant in the decision process. Put yourselves in the

shoes of the decision maker. Feel the excitement/the challenges/the frustrations he/she feels with

respect of data limitations, trade-offs, limited resources, political conflicts or whatever. While in

class share your ideas with others as we work jointly to resolve the issues. Argue your case

cogently. Seek support for your arguments from the case facts and where data is missing make

reasonable assumptions (please do inform the rest of us in the class about the assumptions you

have made!). Do note that a real business environment does not generally pose clear questions or

answers. Managers rarely know whether they have made the “right” strategic decisions. Strategy

cases simulate this ambiguity. As such, there are no correct solutions to the cases that you will

undertake to analyze and the instructor will offer none, although he may provide his opinion

about your logic. Therefore, the most important aspect of this course is the quality of your

questions and answers, and the quality of your thought processes. Also, your ability to

communicate your logic and respond to questions about your analyses and recommendations is

important.

For effective learning it is strongly recommended that you discuss each day‟s case in small study

group and come to the class prepared with your own specific recommendations/conclusions. The

pre-class group discussion would provide you the opportunities to debate the issues and sharpen

your arguments even before you step into the class. Also, discussion in your group after the class

for consolidating the learning of the day would be very useful.

4. Instructor

Prof. Sougata Ray is the primary instructor for the course. His Office (B – 307) is located at the

Second Floor of the B Block. He is available on call at EXT. 797 (O) / 290 (R), +919830045882

and on e-mail at [email protected]. For helping you further your learning, he would be

available for discussions with prior appointment. Please send a copy of all your electronic

submissions to his mail id.

5. Evaluation Scheme

The overall grade in the course will be much influenced by how much a participant has learned

through daily preparation for the class, from the class room discussions and post class reflection.

Individual assignments, class participation, presentations, and an end term examination will be

mailto:[email protected]



the elements used for evaluating the student‟s performance in the course. The course grade will

be based on the following:

Component Weightage

Class Presence & Participation 20%

Group Assignment, Project & Presentations 45%

End Term Examination 35%

5.1 Class Presence & Participation

Your presence in the class is vital to the course learning. Accordingly I shall reward attendance

by a maximum of 10 points. Ability to present one's ideas concisely and persuasively and to

respond effectively to those of others is a key success factor in any managerial and leadership

position. One of the goals of this course is to help you sharpen that ability. Accordingly, I expect

you to effectively participate in the class – analyze, comment, question, discuss. Please

remember that we are all learners as well as facilitators to one another‟s learning. Participation

enables you to learn from your colleagues and to help them learn from you - that is what the

discussion based pedagogy is all about. I trust that you will come with an open mind to learn and

to accept new perspectives. Irrespective of our experience, there are always new things to learn. I

strongly encourage, value and reward effective participation. I have observed that students

typically tend to under-estimate, rather than overestimate, the worth of what they have to say. If

you are ever in doubt, please speak up instead of keeping quiet. I also expect the class to help

deal with people who monopolize the discussion without contributing to the learning process of

others. Please remember that at the end of the course individually all of you have to provide

me a consolidated letter grade (A+ to F) evaluating the contribution made by each of your

fellow students in the course. The grade for class participation should be based on both quality

and frequency of contribution to the class.

If for some reason you are not fully prepared on a particular day, let me know before class so that

we do not embarrass you inadvertently. If you must miss a class, please let us know in advance

so that your absence will not be unexplained.



5.2 Group Assignment, Project and Presentations

Group work is of utmost importance in the course, which gets reflected in the weightage given to

this component in the course evaluation. You will be a part of a self-assigned learning team,

comprising 3-4 students with more than one nationality and adequately diverse in terms of

demographics, skills and experiences. Each group will name a group leader who will be the

group-professor liaison and will also be responsible for calling to my attention any problems

within the group. As a part of the group assignment each group has to maintain a class journal

and submit it electronically at the end of every week. The journal should carry a commentary on

every session (not more than 5 pages) that must include a pre class decision sheet providing the

analysis of the discussion questions given for the case to be discussed in class, the salient

concepts and issues discussed in the class and the key learning from the session. The final

submission should also have a concluding section on the overall learning (conceptual, analytical

and experiential) from the entire course. Each student group will be asked to make presentation

on at least one pre-assigned case / reading for a session. The presentations should be no more

than 20 minutes duration. The guideline questions given in the detailed session plan later would

help you prepare for the case presentation. For preparing for the presentation of the assigned

reading please read through the article critically with a view to answer the following four

questions:

• What are the core ideas presented in the article?

• What is your assessment of the validity and relevance of these ideas?

• What is the implication of these ideas – to a business professional?

Group Project

The group project will involve detailed analysis of international expansion of an emerging

economy company going global or any other multinational company‟s business in emerging

markets. Alternatively, the project can involve evaluation of opportunities and challenges in

doing business in a promising foreign market. The project will require you to do the following:

1. Identify and pick international expansion of a company OR strategic responses of an

important subsidiary of an MNC facing a significant challenge OR a promising foreign

market that your group finds most interesting. Some of the sources of such international

expansion strategies or subsidiary strategies are announcements by senior managers of

organizations as reported in business news papers, business magazines, electronic media and

annual financial reports of organizations. You can refer to Ruchir Sharma‟s Breakout Nations

for identifying promising foreign markets.



2. Once your group has identified the topic and/or the company, submit a one-page project

proposal by the end of the second week.

3. Brief feedback shall be given to you on your project proposal, after which you can freeze the

plan and start working on the project.

4. Extensive collection of secondary data is expected and primary data collection is encouraged.

Even if you do not have access to managers of the organization, you will be able to obtain

information from other stakeholders such as dealers, customers, shareholders, analysts,

industry experts, etc.

5. You will submit a project report that identifies and outlines the key internationalization

challenges (for promising foreign market project – business issues and challenges likely to be

faced by a company of your choice for doing business in that market) and your

recommendations for a successful implementation (Not more than 20 pages of double spaced

text and 10 pages of supportive documentation).

We will be happy to assist you in any way possible to help maximize your learning from the

project and encourage you to interact with me on your projects as often as you like.

6. Course Feedback

I give a lot of importance to feedback from students. Instead of waiting for one feedback at the end

of the course, I would rather prefer feedback on every session. This feedback should ideally cover

at least (a) content, (b) mode of class proceedings, and (c) overall effectiveness / learning

value. Other comments on the session are also welcome. Please e-mail your feedback to me.

7. Reference Books & Journals

Cases and Readings:

The course pack will include all cases and reading materials for the course. In addition, short

videos may be used in the class to illustrate or strengthen some of the conceptual ideas discussed.

Recommended Reference Books:

Following are some of the books available in our library that you may refer for additional

knowledge and understanding other than the readings and cases given in the course package.



Collis, D. (2014). International Strategy. Willey.

Ghemawat, P. (2008). Redefining Global Strategy – Crossing Borders in a World Where

Differences Still Matter, Harvard Business School Press, Boston.

Ghemawat, P. (2013). World 3.0 - Global Prosperity and How to Achieve It. Harvard Business

School Press, Boston.

Hill, Charles, W.L. (2008). Global Business Today, McGraw-Hill Irwin, New York.

Hill, C.W.L. (2010). International Business Tata McGraw-Hill (14th

Edition).

Christopher A. Bartlett and Sumantra Ghoshal. Transnational Management : Text, Cases, and

Readings in Cross-border Management (4th ed.) / Boston : Irwin/McGraw Hill, 2005

Sharma, Ruchir (2012). Breakout Nations: In Search of the Next Economic Miracles, Penguin.

Tarun Khanna and Krishna Palepu, (2010). Winning in Emerging Markets: A Road Map for

Strategy and Execution. Harvard Business School Press.

From time to time you should also refer to various issues of some of the popular management

journals such as Academy of Management Executive, Business Horizon, Columbia Journal of

World Business, European Journal of Management, Far Eastern Economic Review, Harvard

Business Review, California Management Review, Multinational Business Review, and Sloan

Management Review.



Sessions Plan

Session Duration: 1.5 hours

Module 1: Logic & Theoretical Foundation of International Business

Session 1 (September 12)

Topic: Introduction to the Course & Recap of the Basic Concepts of Strategy

Readings:

1. Course Outline


Topic: Strategic Management & Leadership in an MNC Context

Case: Clayton Industries: Peter Arnell, Country Manager for Italy

Readings:

1. „Putting Leadership Back Into Strategy‟, Montgomery, Harvard Business Review, 2008.

Discussion Questions:

1. Evaluate Peter Arnell‟s first two months as general manager of Clayton SpA. What are the main

challenges he faces? How well is he dealing with them?

2. Review the three possible courses of action on the last page of the case. As Arnell, which plan would

you recommend to Dan Briggs and Simone Buis next week?

3. Was Arnell the right choice to be country manager for Clayton SpA?


Topic: Changing Global Landscape and Implications to Firms

Readings:

1. Challenging World of International Business (Chapter 1)

2. Friedman, T.L. (2005). “It‟s a Flat World, After All”, The New York Times.

3. Ghemawat, P. (2007). “Why the World‟s Isn‟t Flat”, Foreign Policy, pp.54-60.

4. Friedman‟s Response to Ghemawat, Foreign Policy

5. Ghemwat‟s Response to Freidman, Foreign Policy

Discussion Question:

1. How do you view Friedman vs Ghemawat debate? What‟s your point of view (POV) in this regard?




Topic: Why Do Firms Go Global?

Case: Go Global or No?

Reading: 1. Chapter 2 of David Collis (2014)

2. Alexander, Markus and Harry Korine (2008). “When You Shouldn‟t Go Global?”

Harvard Business Review, December.


Topic: Globalization & Strategy: Foundational Concepts

Case: 1. Marcopolo: Making of a Global Latina

Reading: 1. Monti, J. A., and Yip, G. S. (2000) “Taking the high road when going international,”

Business Horizons.



Topic: Globalization & Strategy: Foundational Concepts, Frameworks & Theories

Case: Asian Paints Ltd.: International Business Division

Reading:

1. Yip (1994). “Industry drivers of global strategy and organization” Thunderbird International

Business Review.


1. What accounts for APL‟s success in India?

2. Why did APL internationalize?

3. Given its track record on the home market, why are IB division‟s returns low?

4. What are the key issues facing Jalaj Dani?

5. What should be Jalaj Dani‟s priorities?



Case: Can Bollywood Go Global? HBS 9-806-040.

Reading:

1. 1. Porter, Michael E., (1990). “The Competitive Advantage of Nations,” Harvard Business

Review, March-April 1990.




1. How can Bollywood benefit by going global? What are critical success factors in movie business?

Which advantages of Bollywood are transferable to global market? What new competencies are to be

developed / acquired for going global?

2. Why did the US movie makers dominate the industry? Why did players from other countries such as

France and UK fail to convert occasional successes into a sustained leadership of the global movie

industry?



Case: Can Bollywood Go Global? HBS 9-806-040. (Continued…)

Reading:

1. De Kluyver, Cornelis A. (2010), “The Globalization of Companies and Industries,”

Fundamentals of Global Strategy, HBSP, (Chapter 2)

2. Ghemawat, P. (2008). "Arbitrage - Exploiting Differences." Chapter 6.


3. What are some key differences between film markets in India and the US? What kind of opportunities

does Bollywood present for American studios? Can Hollywood successfully tap into Indian market

and pose a major threat to Bollywood in its backyard?

4. Would Indian cinema pose a major global challenge to Hollywood films?

Module 2: Strategy Development for Global Expansion


Topic: Understanding and Analyzing Global Business Environment

Reading:

1. Ghemawat, Pankaj. “Distance Still Matters.” Harvard Business Review, 2001.

2. Bremer, Ian. “Managing Risk in an Unstable World.” Harvard Business Review, 2005.

3. Westney, D. Eleanor “Global strategy and global business environment: changing models of

the global business environment” Global Strategy Journal, 2011.

Note: One page proposal for the Group Project idea is due on September 30

Session 10 (October 5)

Topic: Developing Global Expansion Strategy



Case: Resuming Internationalization at Starbucks

Reading:

1. Govindarajan & Gupta “Managing Global Expansion: A Conceptual Framework” Business

Horizon, 2002.


1. Please evaluate the internationalization strategy and its impact on performance of Starbucks.

2. How should Starbucks approach internationalization going forward?


Topic: Planning Market Entry Strategy

Case: Citibank: Launching the Credit Card in Asia Pacific (A)

Reading:

1. Target Markets and Modes of Entry, Fundamentals of Global Strategy, Chapter 5

2. Nielsen, C. (2005). “The Global Chess Game...Or Is It Go? Market Entry Strategies for

Emerging Markets.” Thunderbird International Business Review. 47(4), 397-427.

3. Horn, J.T., Lovallo, D.P. and Viguerie, S.P. (2005). “Beating the Odds in Market Entry”, The

McKinsey Quarterly, No. 4, 2005.


1. Should Citibank launch the card product in Asia Pacific?

2. How should Citibank position its card, if it decides to launch?

3. Which countries should Citibank enter first? Which countries should it avoid?

4. If you chose not to introduce the card what would you do to achieve the $100 million earnings target

by 1990? What kind of branch banking products should the bank offer?


Topic: Executing Market Entry Strategy – Cross-Border Mergers and Acquisitions

Case: Havells India: The Acquisition of Sylvania

Reading:

1. Kale, Singh and Raman “Don‟t integrate your acquisitions, partner with them”, Harvard

Business Review, 2009.


1. What is driving the internationalization of Havells?

2. Should Havells proceed with the acquisition? What are the value propositions for the acquisition?

What are the risks?

3. How would the globalization of Havells affect its performance? Revenue? Profits? Capabilities?



4. Would you recommend the acquisition? Why or why not?

5. What do you see as the next set of challenges for Havells? What would be your recommendations for

building the organizational capacity?


Topic: Executing Market Entry Strategy – Joint Ventures

Case: Blue Ridge Spain

Reading:

1. Killing, J. P. “How to Make a Global Joint Venture Work,” Harvard Business Review, 2007.


1. In Blue Ridge Spain what led the joint venture partners to this impasse? What were the major

difficulties between the JV partners over the years?

2. Identify yourself with one of the key decision makers in Blue Ridge Spain case and develop an action

plan on his behalf.


Topic: Global Expansion Strategy: Winning the Local Battle & Local Adaptation

Case: Euro Disney: From Dream to Nightmare

Reading:

1. Ghemwat, Pankaj “Adaptation: Adjusting to Differences,” Chapter 4, Redefining Global

Strategy

2. “All Strategies are Local”, Harvard Business Review. 2005.


1. Evaluate Disney‟s decision to build a theme park in Europe.

2. Explain why Disney chose to enter Europe through a combination of equity ownership, a licensing

contract, and a management contract, as compared with the relationship with its UStheme parks

(100% ownership) or with Tokyo Disneyland (pure licensing)?

3. In what ways did Disney adapt to a French and European context? How effective was this adaptation?

Should Disney have adapted more or less?

4. Advise (a) Philippe Bourguignon on what further actions he should take to improve the financial

viability of Euro Disney and realize its potential for shareholder return, and (b) Michael Eisner on

how Disney‟s interests in Euro Disney can best be protected and furthered.


Topic: Global Expansion Strategy: Winning the Local Battle in Emerging Markets

Cases: Coffee Wars in India: Starbucks and Coffee Café Day



Session 16 & 17 (November 9 & 11)

Group Project Work

Note: Preliminary Report on the Group Project due on November 14

Session 18 (November 16)

Topic: Global Integration: Strategy for Creating Global Competitive Advantages

Case: The Globalization of CEMEX

Reading:

1. Ghemawat, Pankaj. “Managing Differences: The central challenge of global strategy” Harvard

Business Review.

2. Gupta & Govindarajan, “Converting Global Presence into Global Competitive Advantage”

Academy of Management Perspective, 2001.


1. Is cement a global industry?

2. What benefits have CEMEX and the other global competitors in cement have derived from expanding

across borders?

3. Analyze how CEMEX has outperformed its global competitors in the cement industry, keeping

Holderbank as a reference.

4. How far can Cemex‟s competitive advantage travel?

5. What are the most important challenges that CEMEX is likely to confront in the future?

Module 3: Managing Global Expansion


Topic: Executing Global Strategy: Subsidiary Formation and Being a Country Manager

Case: Silvio Napoli at Schindler India

Reading:

1. Gregersen, Morrison, Black (1998), “Developing Leaders for the Global Frontier,” Sloan

Management Review, 40-1: 21-32.

2. Baruch, Y. (2002), “No Such Thing as a Global Manager,” Business Horizons, 45 (1), 36-42


1. Was Silvio the right choice for general manager of Schindler‟s India operations? What are the

strategic, organizational, and political challenges facing Napoli as a new country manager setting up a

subsidiary in India for Schindler?



2. As Luc Bonnard how would you evaluate Silvio‟s first seven months as general manager of the

Indian company? What advice would you offer?

3. What advice would you give to Silvio regarding his decision on the nonstandard glass wall elevator

that has been ordered?

4. How should he deal with the challenges he is facing over transfer prices and limited technical

cooperation from the European plants?


Topic: Being a Global Manager – Roles, Responsibilities, Challenges and Opportunities

Case: From Regional Star to Global Leader (HBR Case study)

Reading:

1. Gupta & Govindarajan “Cultivating a Global Mindset” Academy of Management Executive.

2. Bartlett, Christopher A., and Sumantra Ghoshal. "What is a Global Manager?" Harvard Business

Review, August 2003. HBR Reprint # 92502;


1. Can Jianguo make the transition?


Topic: Managing Business in Emerging Markets & Emerging Multinationals

Case: 1. LG Electronics: Global Strategy in Emerging Markets

2. Haier - Taking a Chinese Company Global

Reading:

1. Khanna,T. & Palepu, K. “Emerging Giants” Harvard Business Review, 2009.

2. Bartlett, C.A., and Ghoshal, S. (2000). “Going Global: Lessons from Late Movers”, Harvard

Business Review, March-April 2000.

3. Mathews, J.A. (2006). “Dragon Multinationals: New Players in 21st Century Globalization”, Asia

Pacific Journal of Management, 23, pp.5-27.

4. Ghemawat, P. and Hout, T. (2008) “Tomorrow‟s Global Giants: Not the Usual Suspects”,

Harvard Business Review, November 2008.


1. What are the key strengths of the Korean electronics industry during the formative years? How did

firms leverage these advantages to enter developed markets?



2. Trace the strategic growth of LG Electronics. Were there any discernible patterns in their approaches to

business in emerging markets? What are the commonalities in strategies in the BRIC countries?

3. What have been the sources of competitive advantages in the emerging markets? Can these advantages

be leveraged to compete in the developed markets? Are these advantages transferable?


Topic: Reverse Innovation - Learning from Emerging Markets

Case: GE Healthcare (A): Innovating for Emerging Markets

Readings:

1. Prahalad, C.K., Lieberthal, K. (2003). “The End of Corporate Imperialism”, Harvard Business

Review, August 2003.

2. Immelt, J.R., Govindarajan, V. and Trible, C. (2009). “How GE is Disrupting Itself”, Harvard

Business Review, October 2009.


1. Why would it take so long for a company like GE to innovate for markets such as India or China?

2. Is the "MAC 400" or the "MAC 800" a case of "local innovation" or of "global innovation"? Why?

Does it matter?

3. How likely is a "reverse innovation" to succeed? Why?

4. Do you consider that "reverse innovation" is "an approach critical to the very survival of Western

MNCs as they prepare to fight the threat of emerging market companies going global"? Why?


Topic: Responsible Globalization

Cases: Short cases on ethical issues in international business

Reading:

1. “Triple Bottom Line,” The Economist, November 17, 2009.

2. Porter, M. E., & Kramer, M. R. (2011). “Creating Shared Value”. Harvard Business Review, 62–

77.

Session 24 (December 1)

Topic: Responsible Globalization (Continued)

Reading:

1. Amory B Lowins, L Hunter Lowins, and Paul Hawken. “A Roadmap for Natural Capitalism”,

Harvard Business Review

http://www.insead.edu/facultyresearch/research/details_cases.cfm?id=28722



Session 25 (December 2)

Integration & Review

Note: Final Report on the Group Project due on December 12

Best of Luck!!!

Date post:	01-Mar-2018
Category:	Documents
Upload:	lamdang
View:	214 times
Download:	2 times

Indian Institute of Management Calcutta CEMS MIM · PDF filebusiness strategies and programs...

Documents