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Monday, March 4, 2019

International Business Strategy Hill

multinationalist Business strategy FALL 2010 Course Outline 1. need and description of the shape Companies today confront an increasing array of prime(prenominal)s regarding markets, locations for observe activities, outsourcing and ownership vogues, and system of rules and processes for managing across internationalist borders. This wrinkle focuses on the international dimensions of scheme and organization, and provides a framework for formulating strategies in an increasingly complex manhood. The design of this course is to provide the foundations for taking effective action in the multi-faceted world of international business. 2. ourse structure The structure of this course follows a logical chronological succession where first the international environment is analysed in relation to the international strategies of wholes. Next, we aim the optimal scope of the firm across geographic markets, and whether a firm should diversify or stretch forth its scope across diametrical geographic markets. Such a scope economy provide either be demand side, when the firm can replicate a strategy that works substantially domestically in a country that was previously lacking(p) that product or service, or supply side, when a firm seeks to go a valuable re witness from within a new market.In the first reference, a firm arbitrages a product or a strategic capability into a new market whereas, in the aid case, it arbitrages the cistron cost advantage of a new market. We will likewise see that in order for the firm to extend the scope of activities beneath its own management to a outside country, there has to be or so market failure present preventing that firm from simply licensing or merchandising its valuable resource to an autochthonic firm or buy it from an indigenous firm in the case of supply-side scope economies. As most cross-border elaborateness of significance currently occurs through M&A or alliances, we witness at the particular hallenges such operations entail for the firm. Finally, we examine how the off-shoring of activities whitethorn help firms to better compete in the spherical economy. Method The course proceeds through a combination of lectures, indicateings, and making use of the case method. You should hand completed the set readings prior to a sieve and be prep ard to reception the case questions in class. This means that you should have read the assigned case for a class and be prepared to answer the questions on that case. Some classes have facultative learnings, which are simply listed in case you have particular interest in reading make headway on a topic. shield analysis involves an enhanced role for class discussion, supplemented by lecture material. Generally, the goal of class discussion is to arrive at a collective analysis of the issues presented by the materials. Analysis of international strategy issues is not accomplished through the routine application of formulas, but quit e an through reasoned analysis infra conditions of limited information, uncertainty, by individuals and groups from divergent backgrounds and with particular schemas and ways and structures of organizing knowledge.With a case, you should be able to identify the list issues, problems, and opportunities facing the central protagonists, to articulate and evaluate alternative approaches to tackling the problems, and to describe the course of action that you recommend and the reasons for your recommendation. reason selection criteria in part includes division across conditions and you should be able to port and apply the frameworks, concepts and tools from one case, context and part of the course to an separate. Course breedings The principal textbook for the Course isHill, Charles W. L. 2011. global Business Competing in the orbicular Marketplace. NY McGraw-Hill International Edition (Eighth Edition). Readings from this textbook are supplemented by cases and other readings. 3. assessment Individual grades for this course have deuce components Class attendance + assignments(25%) Written exam (75%) 4. course overview and materials 27 kinsfolk Introduction and course structure Globalization and regional integration cultivation Objectives beg off the phenomenon of globalization Explain wherefore managers today need a global perspective Describe the effects of globalization on markets and output Explain how technology and innovation support globalization Globalization versus regional frugal integration Business strategies and regional integration. Reading Hill, Chapter 1. Globalization Chapter 8. regional Economic Integration. Optional Reading P. Dicken. 2007. Global Shift mapping the ever-changing contours of the universe economy, 5th edition, London Sage Publications. October What makes countries and regions contrasting? The role of glossiness, institutions and governmental and economic systems. training Objectives Identify the business an d economic implications of differences in culture take in differences in political and economic systems of countries question the role of globe policies in relation to the competitiveness of a country Explain how indicators of a countrys competitiveness can help firms decide where to make up production activities.Reading Hill, Chapter 2 theme Differences in political Economy. Chapter 3 Differences in Culture. Optional Reading E. Thompson, National Competitiveness A promontory of Cost Conditions or Institutional Circumstances, British Journal of Management, Vol. 15, 197218 (2004). 11 October International allot theory, foreign direct investiture and competitiveness Learning Objectives Explain the evolution of different trade theories dissertate the relevance of the new-fashioned trade theory and Porters diamond Discuss the importance of foreign direct investment (FDI) in the world economy, and the changing patterns of FDI over time Present different theories that expla in why a company would undertake an acquisition sort of than a Greenfield investment Explain horizontal FDI, and suggest the conditions under which it may be most applicable Explain vertical FDI, and suggest the conditions under which it may be most applicable. Reading Hill, Ch. 5, International Trade Theory,Ch. 6. The Political Economy of International Trade Ch. 7. Foreign Direct Investment . Optional Reading Dunning, John. 2009. Location and the multinational enterprise A neglected factor? (+ Comments). Journal of International Business Studies, vol. 40, No. 1, 5-41 The Global Competitiveness Report, 2010-2011, World Economic Forum, Geneva 18 October Successful FDI forwarding how regions seek to entrance corporate FDI For corporate FDI to be in(predicate), it should pre-empt or be aligned with the FDI priorities of the host country and region.International businesses cannot achieve durable advantages if it is out of sync with the aspirations of polity makers in the go-to locations. Hence executives should seek to understand such aspirations and the related strategies. This staff explores how policy makers seek to make their constituencies more attractive for FDI. It addresses the challenges that both(prenominal) National Investment Promotion Agencies (IPAs) and Regional Development Agencies (RDAs) face to develop victorious strategies and to see these through to implementation.In this context, the module will cover both the offer that IPAs and RDAs can provide to corporate FDI decision makers, as well as the delivery thereof. Real life examples will be use to understand what works and what doesnt work today both for jump on economies (e. g. Western Europe), transforming economies (e. g. Central Europe) and emerging economies (e. g. Asia). Learning Objectives get wind the prevailing economic development concepts and FDI promotion strategies Explore the pros and cons of the strategies Understand the prevailing incentive schemes that regions u se to attract corporate FDI Understand the EUs policies towards incentives Distil common guidelines for policy makers Understand what corporations can and should do to capitalize on local anaesthetic economic development concepts and FDI promotion strategies. Optional Reading Michael E. Porter, 1990. The Competitive Advantage of Nations, Free Press 25 October The Strategy of International Business Creating value from internationalization Learning Objectives Understand how internationalisation can create value Measure the contribution of an internationalisation strategy Assess the business baffle of the firm in an international context. Discuss how firms should handle the complex international environment Suggest the reasons why firms may decide to enter international business, and identify the benefits from international strategies Case CEMEX Reading Hill, Ch. 12, The Strategy of International Business, pp 419- 447 Extra note The value of a global strategy the ADDING framewo rk. Extra note Adapting the business model to international markets. interchange Questions 1) What benefits have CEMEX and the other global competitors in cement derived from globalization?Use the ADDING framework in answering this question. 2) What explains the better than median(a) performance of CEMEX? How does this relate to industriousness specific factors and the competition within the industry? 3) What makes CEMEXs internationalization process so effective? What procedures and techniques are apply? 4) In what other countries could CEMEX profitably expand its business? What are serious factors to be considered for entering new markets. 1 November Holiday 8 November The Strategy of International Business Design and implementationLearning Objectives Outline the staple fiber strategies undertaken by MNEs, and specifically focus on how they relate to the needs for local responsiveness and cost minimization What are the advantages and disadvantages of using a global strateg y? Discuss how firms should handle the complex international environment. Reading Ghemawat ,P. redefining Global Strategy, Chrossing Borders in a World Where Differences Matter, Harvard Business School press, Cambridge, MA, 2007. Chapter 3 Global Value Creation. Case BRL Hardy Discussion Questions ) What are the driving force forces stinker BRL Hardy to suit a global company? 2) What is the source of tension between Stephen Davies and Christopher Carson? How effectively has Steve Millar handled the differences? 3) Should Millar approve Carsons proposal to rig Distinto? Why or why not? 4) What recommendations would you make to the organization concerning the conflicting proposals for Kellys revenge and Banrock Station? What would you decide to do as Carson? As Millar? 15 November The Organization of International Business Organizational computer architecture of the International firm. Learning Objectives Identify the different kinds of organizational structures and internal vi ew as mechanisms that international businesses can use to manage global operations Discuss the advantages and disadvantages of centralized and decentralized decision systems Present the basic types of organizational forms that multinational firms use Describe the control systems and integrating mechanisms available to multinational firms evince how the organizational architecture, control systems, integrating systems, and decision making choices multinational firms have available must be consistent with their strategy and industry environment.Case BRL Hardy Reading Hill, chapter 13, The Organization of International Business, pp 449-484. Optional Reading Verbeke, Alain, Kenworthy,. Thomas. 2008 . Multidivisional vs metanational face of the multinational enterprise, Journal of International Business Studies, 39( 6) 940-956 22 November Growing internationally to become a world leader. The case of AB InBev. Invited lecture by Mr. Beni Roos, former executive director Interbrew 29 November Entering foreign marketsLearning Objectives Present the advantages and disadvantages of six different modes of entering new countries and markets Bring together the issues of FDI theory and the issues of strategy and organization to better understand why different firms may make different decisions regarding the best modes of entry Case capital of Nebraska Electric Reading Hill, chapter 14, Entry Strategy and Strategic Alliances, pp. 487-518 Optional Reading Kim, W. Cha, Hwang, peter. 1992.Global Strategy and Multinationals entry mode, Journal of International Business Studies, 23, 29-53. Discussion Questions 1. Put yourself in CEO John Stropkis shoes. Should Lincoln Electric expand into India by investing in a major production celerity there? 2. If you were to expand into India, would you enter through acquisition, a greenfield site, or several(prenominal) type of joint venture? Which factors would inform your decision among these entry mode choices? 3. In which coun tries is Lincoln Electric likely to be most successful or least successful? Why?How would this guide your own choice of where to place Lincoln Electrics production facilities abroad? 4. When Lincoln Electric goes to India and other countries, what factors should determine how much it adapts its core incentive pay-for-performance management practices to local motor market norms? Should Lincoln Electric follow the adage when in Rome, do as the Romans do, or should it seek to always replicate the recipe behind its success in the home plant in Cleveland? 6 celestial latitude Cross-Border Arbitrage and Outsourcing Learning Objectives Understand cost, resource, and market-based advantages of on-shore, near-shore and off-shore locations and their implications for roles of operating units, and how to exploit differences across countries to at one time create value Present the phenomenon of outsourcing jobs from advanced nations, such as the united States or Western Europe Understand th at while much heed is paid to the economic differences across countries such as through offshoring and outsourcing there may be important arbitrage differences based on cultural, administrative, and geographic differences.Reading Hill, chapter 16, Global Production, Outsourcing and Logistics, pp 562-586 Optional Reading Ferdows, Kasra, 1997. Making the most of foreign factories. Harvard Business Review (March) 73-88. AT Kearney, 2009. The shifting geography of offshoring Lewin, Arie Y. e. a. , 2009. Getting dangerous About Offshoring in a Struggling Economy, Shared Services word (February) 19-23 Discussion Questions 1) What are corporate risks associated with outsourcing, and what can be done to rationalise these risks? 2) Are wage arbitration based outsourcing tactics soon to become redundant as result of global wage cost escalations? 3 December Setting up international strategic alliances Learning Objectives Discuss the role of strategic alliances, their advantages and disa dvantages, Highlight the factors critical to making alliances work Reading Hill, chapter 14, Entry, Strategy and Strategic alliances, pp 487-518 Optional Reading Reuer, Jeffrey. (2004). Strategic alliances Theory and evidence. New York Oxford University Press. Case Lasserre, P. Flament, A. Fujimura, S. Nilles, P. , Renault and Nissan A marriage of reason. INSEAD (2001) 20 December Review sitting

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