THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT
(ESTD 1973)
HYDERABAD
GLOBAL OPPORTUNITIES
AND
THREAT ANALYSIS
REPORT
SUBMITTED BY:
NAME: THONDURU PRASANTH REDDY
BATCH: PGP/FW/10-12/IIPM
COUNTRY VISITED: TEXAS, US
ACKNOWLEDGMENT
This report could not have been accomplished without the splendid support of
my friends & colleagues. I would like to Thank IIPM, in giving me an
international experience & learning by taking me to USA. I would like to thank
PROF. GANESH SHUKLA who led us all through the GOTA & in giving me an
opportunity to make a report on the GOTA we had. Special thanks to my
friends who helped me to complete this report. Last but not least I would like
to thank god for helping & aiding me to make this report a success.
INDEX
ABSTRACT
INTRODUCTION
USA- AN OVERVIEW
TEXAS – AN OVERVIEW
MC COMBS BSCHOOL – AN OVERVIEW
STRATEGIC MANAGEMENT
NEGOTIATIONS
ADVERTISING AND NEW MEDIA
LEADING INNOVATION
ACCOUNTING AND FINANCE
LEADING HIGH PERFORMANCE TEAMS
ENTREPRENEURSHIP
BUILDING YOUR LEADERSHIP BRAND
CONCLUSION
BIBILIOGRAPHY
ABSTRACT
As a part of our GOTA program we visited Texas, US. The GOTA organized by
IIPM provided us with an opportunity of visiting Texas, through which we
learned about the foreign education & work culture.
This report gives an overview of the importance of GOTA
program and information about the different topics which were discussed in
the seminars. The report gives an insight about the learning and experience of
the sessions and the stay in Texas, US.
GLOBAL OPPOURTUNITY AND THREAT ANALYSIS
The Global Opportunities & Threat Analysis (GOTA) Program brings awareness
of how a truly global economy works and also offers a different perspective to
the participants making them receptive to entrepreneurial learning.
The trip was not totally academically oriented and also involved a couple of
days of sightseeing with visits to the popular tourists’ hot spots and major
cities in US. We had a learning experience of immigration, food adjustment,
crossing language and cultural barriers, weather extremities, etc.
GOTA is designed to give students a firsthand exposure to International
Faculty, organizations & economies. The idea to make the students aware of
how a truly global economy works and also to bring a fresh outlook to life
conductive to entrepreneurial learning.
INTRODUCTION
USA- AN OVERVIEW:
The United States of America (also referred to as the United States, the U.S.,
the USA, or America) is a federal constitutional republic comprising fifty
states and a federal district. The country is situated mostly in central North
America, where its forty-eight contiguous states and Washington, D.C.,
the capital district, lie between the Pacific and Atlantic Oceans, bordered
by Canada to the north and Mexico to the south. The state of Alaska is in the
northwest of the continent, with Canada to the east and Russia to the west
across the Bering Strait. The state of Hawaii is an archipelago in the mid-
Pacific. The country also possesses several territories in the Caribbean and
Pacific. At 3.79 million square miles (9.83 million km2) and with over 310
million people, the United States is the third or fourth largest country by total
area, and the third largest both by land area and population. It is one of the
world's most ethnically diverse and multicultural nations, the product of large-
scale immigration from many countries. The U.S. economy is the world's
largest national economy, with an estimated 2010 GDP of $14.780 trillion
(23% of nominal global GDP and 20% of global GDP at purchasing power
parity).
The United States is a federal union of fifty states. The original thirteen states
were the successors of the thirteen colonies that rebelled against British rule.
Early in the country's history, three new states were organized on territory
separated from the claims of the existing states: Kentucky from Virginia;
Tennessee from North Carolina; and Maine from Massachusetts.
Most of the other states have been carved from territories obtained through
war or purchase by the U.S. government. One set of exceptions
comprises Vermont, Texas, and Hawaii: each was an independent republic
before joining the union. During the American Civil War, West Virginia broke
away from Virginia. The most recent state—Hawaii—achieved statehood on
August 21, 1959. The states do not have the right to secede from the union.
The United States leads the world in scientific research papers
and impact factor. The country is the primary developer and grower
of genetically modified food, representing half of the world's biotech crops.
The United States is also a leader in medical innovation. In 2004, the
nonindustrial sector spent three times as much as Europe per capita on
biomedical research. Today, the bulk of research and development funding –
64% – comes from the private sector.
Americans possess high levels of technological consumer goods, and almost
half of U.S. households have broadband Internet access.
American public education is operated by state and local
governments, regulated by the United States Department of
Education through restrictions on federal grants. Children are required in most
states to attend school from the age of six or seven
(generally, kindergarten or first grade) until they turn eighteen (generally
bringing them through twelfth grade, the end of high school); some states
allow students to leave school at sixteen or seventeen. About 12% of children
are enrolled in parochial or non-sectarian private schools. Just over 2% of
children are homeschooled.
The United States has many competitive private and
public institutions of higher education.
According to prominent international rankings, 13 or 15 American colleges and
universities are ranked among the top 20 in the world. There are also
local community colleges with generally more open admission policies, shorter
academic programs, and lower tuition.
Of Americans twenty-five and older, 84.6% graduated from high school, 52.6%
attended some college, 27.2% earned a bachelor's degree, and 9.6% earned
graduate degrees. The basic literacy rate is approximately 99%. The United
Nations assigns the United States an Education Index of 0.97, tying it for 12th
in the world.
The United States is a multicultural nation, home to a wide
variety of ethnic groups, traditions, and values. Aside from the now
small Native American and Native Hawaiian populations, nearly all Americans
or their ancestors immigrated within the past five centuries. The culture held
in common by most Americans—mainstream American culture—is a Western
culture largely derived from the traditions of European immigrants with
influences from many other sources, such as traditions brought by slaves from
Africa.
More recent immigration from Asia and especially Latin America has added to
a cultural mix that has been described as both a homogenizing melting pot and
a heterogeneous salad bowl in which immigrants and their descendants retain
distinctive cultural characteristics.
AUSTIN, TEXAS
Austin is the capital city of the U.S. state of Texas and
the seat of Travis County. Located in Central Texas on the eastern edge of
the American Southwest, it is the fourth-largest city in Texas and the 14th most
populous city in the United States. It was the third-fastest-growing large city in
the nation from 2000 to 2006. Austin has a population of 790,390 (2010 U.S.
Census). The city is the cultural and economic centre of the Austin–Round
Rock–San Marcos metropolitan area, with a population of over 1,716,291
(2010 U.S. Census), making it the 35th-largest metropolitan area in the United
States.
"Keep Austin Weird" has become a local motto in recent years, featured
on bumper stickers and t-shirts. This motto has not only been used in
promoting Austin's eccentricity and diversity, but is also meant to bolster
support of local independent businesses. According to the 2010 book, Weird
City, the phrase was begun by a local Austin Community College librarian, Red
Wassenich, and his wife, Karen Pavelka, who were concerned about Austin's
"rapid descent into commercialism and over-development." The slogan has
been interpreted many ways since its inception, but remains an important
symbol for many Austinites who wish to voice concerns over rapid growth and
irresponsible development. Austin has a long history of vocal resistance to
development projects that degrade the environment and threaten the local
cultural landscape.
According to the Nielsen Company, adults in Austin read and contribute to
blogs more than those in any other U.S. metropolitan area. Austin residents
have the highest internet usage in all of Texas.
Austin was selected as the No. 2 Best Big City in "Best Places to Live"
by Money magazine in 2006, and No. 3 in 2009, and also the "Greenest City in
America" by MSN.
According to Travel & Leisure magazine, Austin ranks No. 1 on the list
of cities with the best people, referring to the personalities and attributes of
the citizens.
SoCo is a shopping district stretching down South Congress Avenue from
Downtown. This area is home to coffee shops, eccentric stores, restaurants
and festivals. It prides itself on "Keeping Austin Weird", despite development
surrounding the area.
Museums in Austin include the Texas Memorial Museum, the Blanton
Museum of Art (reopened in 2006), the Bob Bullock Texas State History
Museum across the street (which opened in 2000), the Austin Museum of
Art (AMOA), and the galleries at the Harry Ransom Center. The Texas State
Capitol itself is also a major tourist attraction. The Driskill Hotel built in 1886,
and located at 6th and Brazos, was finished just before the construction of the
Capitol building. Sixth Street is a musical hub for the city. The Enchanted
Forest, a multi-acre outdoor music, art, and performance art space in South
Austin hosts events such as fire-dancing and circus-like-acts. Austin is also
home to the Lyndon Baines Johnson Library and Museum, which houses
documents and artifacts related to the Johnson administration, including LBJ's
limousine and a recreation of the Oval Office.
Researchers at Central Connecticut State University ranked Austin
the 16th most literate city in the United States for 2008. The Austin Public
Library operates the John Henry Faulk Library and various library branches.
In addition, the University of Texas at Austin operates the seventh-largest
academic library in the nation.
Austin was voted "America's No.1 College Town" by the Travel Channel. Over
43 percent of Austin residents age 25 and over hold a bachelor's degree, while
16 percent hold a graduate degree. As of 2009, greater Austin ranks eighth
among metropolitan areas in the United States for bachelor's degree
attainment with nearly 39 percent of area residents over 25 holding a
bachelor's degree.
Austin is home to The University of Texas at Austin, the flagship
institution of the The University of Texas System with over 38,000
undergraduate students and 12,000 graduate students. In 2010, the university
was ranked 45th among "National Universities" (13th among public
universities) by U.S. News and World Report. UT has annual research
expenditures of over $640 million and has the highest-ranked business,
engineering, and law programs of any university in the state of Texas.
McCombs School of Business
The McCombs School of Business also referred to as the McCombs School or
simply McCombs, is a business school at The University of Texas at Austin. In
addition to the main Austin campus, McCombs offers classes outside Central
Texas in Dallas, Houston and internationally in Mexico City. The McCombs
School of Business offers undergraduate, masters, and doctoral programs for
their average 6,000 students each year, adding to its 85,000 member alumni
base from a variety of business fields. In addition to traditional classroom
degree programs, McCombs is home to 14 collaborative research centers, the
international business plan competition MOOT Corp, and executive
education programs. The McCombs School of Business consistently ranks
among the top business schools in the nation, the majority in the top 10 and is
the oldest public business school in Texas.
The University of Texas at Austin (UT Austin) was
founded in 1883, and the university's School of Business Administration was
established a few decades later in 1922. The school quickly grew, establishing
a Master of Professional Accounting program in 1948 and offering its first
executive education programs in 1955.
Effects of the 1990s technology boom and dot-com bubble were
palpable in Austin, leaving the nickname "Silicon Hills" on the city. One
McCombs School program that has capitalized on this is the Moot Corp, which
is now the oldest operating inter-business school new-venture competition in
the world. Begun in 1984, it has been dubbed the "Super Bowl of world
business plan competitions."
Also opportunistic was the creation of the school's first Management
Information Systems degree in 1990. The MBA Investment Fund, LLC was also
founded in 1994, becoming the first legally constituted investment fund run by
Master of Business Administration (MBA) students and proving quite
successful, with a 17.5 percent annual return to date. Additionally, in 1995 the
college became the first to require students have an e-mail address.
On May 11, 2000, businessman Red McCombs announced
a $50 million donation to UT Austin. In his honour, the College of Business
Administration and the Graduate School of Business were merged under the
newly created Red McCombs School of Business.
The McCombs School of Business is located in the heart
of The University of Texas at Austin campus. The majority of the McCombs
School is housed in a three-building complex called the George Kozmetsky
Centre for Business Education named after, philanthropist and former College
of Business Administration dean, Dr. George Kozmetsky at the intersection of
21st and Speedway Streets. The McCombs School is bordered by Waggener
Hall (the former home of the College of Business Administration) to the
North, Gregory Gymnasium, and E. P. Schoch Building (one of the last overseen
by campus master planner Paul Cret) to the East and is adjacent to Perry-
Castañeda Library to the South.
In March 1976, Graduate School of Business Building
opened next to the existing building facing 21st Street. Since its inception, the
addition to the College of Business Administration Building houses the
separate graduate MBA program. The addition was constructed in a rhombus
shape to protect a grove of trees on the north side of the building.
Located on the southwest corner of the UT campus, the AT&T Executive
Education and Conference Centre are a multi-function complex and hotel. The
facility has multiple sized classrooms and breakout rooms, a 300-seat
amphitheatre, ballroom, three restaurants, and 297 hotel rooms. The centre
hosts all of the executive education programs for the McCombs School,
including the Texas Executive Education and evening MBA programs. It's the
first building to be built to the U.S. Green Building Council’s LEED Silver
certification standards on campus.
McCombs is made up of a total of 5,984 students,
4,318 undergraduates, 1,569 postgraduate, and 97 doctoral students. All
undergraduates classes are at the main campus in Austin while almost a
quarter of postgraduate student classes are held outside of Central
Texas in Dallas, Houston, and Mexico City.
In addition to traditional graduation routes,
McCombs offers a five year program where students earn their BBA
and Master in Professional Accounting (MPA) degrees concurrently. The Texas
Business Foundations Program (Texas BFP) offers non-business majors the
opportunity to grasp the fundamentals of business operations and minor in
business while pursuing any undergraduate program at the University of Texas
at Austin.
Students in the Business Foundations Program take seven
business courses (two lower-divisions and five upper-divisions) in addition to
their existing undergraduate course work. Students who complete the program
are capable of integrating their major into future their career.
The McCombs School of Business awards the degrees of Bachelor of Business
Administration (BBA), Master of Business Administration (MBA), Master in
Professional Accounting (MPA), Master of Science in Technology
Commercialization (MSTC), Doctorate of Philosophy (PhD), as well as
certificates upon completion of non-degree Executive Education programs.
Programs awarding doctoral degrees at the McCombs School of Business are
divided in five academic departments, Accounting, Finance, Information, Risk,
and Operations Management (IROM), Management, and Marketing. A sixth
department, Business, Government and Society, was created in 2010 and does
not award a doctoral degree.
STRATEGIC MANAGEMENT
-Dr. Jim Fredrickson
Chair, Department of Management
Tom E. Nelson Regents Professor of Business
STATEMENTS OF STRATEGY:
1) Our strategy is to be the low cost provider.
2) Our strategy is to provide unrivalled customer service.
STRATEGY:
Central connect of how we will achieve our objectives
Recognition of an opportunity and plan for seizing it
FIVE MAJOR ELEMENSTS OF STRATEGY:
1) Arenas
2) Vehicles
3) Differentiators
4) Staging
5) Economic logic
DELLS DIAMOND STRATEGY:
Arenas: Desktop Pcs (64%), Laptops (23%), Servers/Storage (13%)
Lca, Pad, Hsb... Etc
Vehicles: Primary internal growth.
Partner with technology providers.
Differentiators: Customer service
Staging: Develop us small business market.
Expand to large us corporate market.
Expand globally.
Economic logic: Price leverage
Cost leverage
CONCLUSIONS FROM DELL IN CHINA:
1) Org strategy is not anything us wants it to be.
2) To think about and communicate a strategy constructively, to identify,
develop or evaluate it, we need an operational framework.
3) The Diamond Strategy is one such framework.
NEGOTIATIONS
- JOHN W. BURROWS
Director, Texas Executive MBA Program
Faculty, Department of Management
Negotiation:
It’s a decision making process by which two or more people agree how to
allocate scarce resources.
Dangerous approaches:
The born negotiator
The expert negotiator
The intuitive negotiator
NEGOTIATION SKILLS:
Planning
Claiming gains
Creating value
John’s top 5 pithy tips
1. Plan., plan, plan systematically
2. Develop your BATNA
3. Ask and listen more, talk less
4. Search for quality agreements
5. Move up the learning curve.
ADVERTISING AND NEW MEDIA
-Dr. MATTHEW S. EASTIN
(Associate Professor)
PhD, Michigan State University
MA, University Of Nebraska-Lincoln
BA, University Of Michigan, 1961
Advertising:
Advertising is a major tool in the marketing of products, services and ideas.
Advertising and communication:
Through media - to many
Through media - one
Consumer - consumer
5 AREAS OF EMPHASIS:
Markets
Media
Messages
Money
Measurement
Media Outlets:
Traditional Media
Newer Media
Search engine optimization
Social Networking
Mobile Advertising
Gaming
All media represent tools for advertisers
Media Powers:
Gate-keeping and Agenda-Setting
Barriers to Entry
Regulation and Economics
Content for Mass Audiences
Limited Consumer Power
Content Creation
Consumption
LEADING INNOVATION
-Dr. Luis Martins
PHP, New York University, 1997
MPhil, New York University, 1995
Innovation:
Innovation as an outcome: A novel, useful and implemented idea
Innovation as a process: Generation, adoption, development, and
implementation of a new idea.
Types of innovation:
Product v/s process
Racial v/s incremental
Architectural v/s component
Disruptive
The Innovation process: Divergence and Convergence
Divergence: Expanding the surface area for innovation
Convergence: Integrating ideas into focused themes
Innovation through Design Thinking: Take-Aways
- Need to understand the customer, product, product, process etc
- Pay attention to divergence and convergence
- Effective brainstorming is an acquired skill
- Design thinking can be applied broadly- to products, processes, services, etc.
ACCOUNTING & FINANCE
-Prof. Jim Nolen
Distinguished Senior Lecturer
Department of Finance
Accounting’s Role:
- To provide internal and external information about the past performance to
company executives and investors
- This information is communicated in financial statements
Balance sheet
Statement of shareholders equity
Income statement
Statement of cash flows
Accountants are responsible for reporting, controlling and budgeting
activities.
Finance’s Role:
To analyse information about the past to make investment, financing and
operating decisions that make company performance in the future
Investment decisions to maximize return and includes: make v/s buy
decisions, working capital management, treasury operations and asset
acquisitions and diversities
Financing decisions to minimize the cost of capital and includes: debt v/s
equity financing and dividend policy
Operating decisions that improve efficiencies and includes: pricing and
product mix, purchasing and supply chain decisions, controlling expenses and
risk management.
LEADING HIGH PERFORMANCE TEAMS
- Dr. ETHAN BURRIS
Assistant Professor of Management
Team:
Essential discipline
Small group with complementary skills
Summated to shared purpose and performance goals and common
approach
Hold each other accountable
Key lessons:
Behavioural
Cognitive
Motivational and emotional
Advantages of group decision making:
More knowledge
Increased "buy in" - commitment to decision
Increased understanding of decision
Disadvantages of group decision making:
Pressure to confirm
Dominant members
Push toward extreme views
Time and effort
ENTREPRENUERSHIP
-JOHN N. DOGGETT
Senior Lecturer
Department of Management
How venture capital works?
VC companies raise $ from pension funds, insurance companies, institutional
investors and wealthy individuals
General and limited partners
Venture funds have 10 yr life
All funds invested in 3-5 years
ROI = $10 for every $1 invested
Must exit investments in 3-6 years
Deals that excite VC's:
Massive customer pain
Large growing market > 1,000,000,000.
Revolutionary or evolutionary solution
10 market share by year 5
Team of industry experts
Cash flow positive by year 2
10x return on $1 of cash by year 5
How VC’s make $:
VC's firms live on 2% management fee
VC firms must return 100% of original investment before sharing in profit
VC partners get rich on their "carry" or "carried interest"
Carry= 20% of profit above original investment
VC firms have very few partners & staff
Funding Stages & Terms:
These Terms are the same
Stage
Series
Round
Raise
Business Idea and No Plan
Seed Stage
Early Stage
Stages, continued
Business plan
Functioning company and prototype
Growing company and preparing for IPO
Signs of trouble
BUILDING YOUR LEADERSHIP BRAND
-Dr. JOHN DALY
University Distinguished Teaching Professor
Understanding the Brand Name:
What is a Brand?
Familiar: We immediately recognize the brand
Attention: We pay more attention to the brand
Preferable: Given a choice we select the brand
Cachet: They give us status
Quality: We perceive the brand to be high quality
Dependable: We trust products using the brand
Valued: We willingly pay more for the brand
Extendable: we accept and buy new products us that fit the brand name
CHALLENGES IN GLOBAL MARKETING:
Changing socio-politics
Changing demographics
Changing economics
Changing environment
Building Affinity:
Always Deliver More than Others Expect
The Key Formula:
Delivered
Effectiveness = _______________
Expected
Possible Ranges: < 1.0
= 1.0
> 1.0
Social Effectiveness:
Stay Attentive and Responsive
A. Act Attentive
B. Show Responsiveness
CONCLUSION
The United States is a multicultural nation, home to a wide
variety of ethnic groups, traditions, and values. Aside from the now
small Native American and Native Hawaiian populations, nearly all Americans
or their ancestors immigrated within the past five centuries. The culture held
in common by most Americans—mainstream American culture—is a Western
culture largely derived from the traditions of European immigrants with
influences from many other sources, such as traditions brought by slaves from
Africa.
The McCombs School of Business is located in the heart of The University
of Texas at Austin campus. The McCombs School of Business also referred to as
the McCombs School or simply McCombs, is a business school at The
University of Texas at Austin. In addition to the main Austin campus, McCombs
offers classes outside Central Texas in Dallas, Houston and internationally
in Mexico City.
The McCombs School of Business awards the degrees
of Bachelor of Business Administration (BBA), Master of Business
Administration (MBA), Master in Professional Accounting (MPA), Master of
Science in Technology Commercialization (MSTC), Doctorate of
Philosophy (PhD), as well as certificates upon completion of non-
degree Executive Education programs.
BIBILIOGRAPHY
GOTA Handbook
http://en.wikipedia.org/wiki/United_States
http://en.wikipedia.org/wiki/Texas
http://en.wikipedia.org/wiki/McCombs_School_of_Business