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International Management: Culture, Strategy, and Behavior. Seventh Edition. Irwin McGraw-Hill Publishers. Cases and articles from the popular business press distributed by the instructor in class. In addition, students are expected to be familiar with current international business issues as reported in the Wall Street Journal, Financial Times and Business Week.
Objectives The mission of the Williams College of Business (WCB) appears below: “We educate students of business, enabling them to improve organizations and society, consistent with the Jesuit tradition. ” “The primary objective of this course is to provide you with a framework for understanding issues related to multinational management. Changes in the global business environment continue at an accelerated pace. The challenges for multinational management reflect this dynamism and the increasing unpredictability of global economic and political events.
The challenge in today’s uncertain geopolitical and economic environment is to learn and effectively practice multinational management. Past assumptions must always be tested and challenged, and best practices will continuously evolve in response to changing environmental and competitive conditions. Those with the knowledge and skills to apply the contents of this course multinational management will be taking a huge step toward gaining a competitive advantage over those who do not have such a perspective. They will be in a strong osition to gain a broad understanding and to take specific steps for implementation of effective managing across cultures. Of special importance is that students of multinational management understand what will be expected of them from the range of stakeholders with whom they interact. Classroom activities will include presentation and discussion of theories, case analyses and problem-solving activities. Extensive attention will be given topics related to doing business in foreign countries, based on personal experiences. Grading
Your evaluation is based upon the quality of your class participation, group presentations, project, exam and individual reports. The percentage weight given to each component is: Class Attendance & Participation14% Toyota data collection & presentation10% Group Case Presentation & Report15% Commentary5% Simulations10% Individual reports21% Final Team Project25% —— Total100% Class Attendance and Participation (Includes participation in in-class group activities) The course objectives and format are centered on your preparation for and participation in class.
Please treat this class as a workshop for honing your skills in issues concerning multinational management. Your class participation should demonstrate: (1) evidence of careful preparation of cases and readings; (2) clarity and conciseness of your recommendations; and (3) strong and convincing analysis to support your recommendations. Attendance is mandatory. Your attendance, preparation, and active involvement in class will be assessed. Adequate performance on individual assignments and case analyses will not be possible without regular class attendance and involvement. You are expected to read all ssignments and cases prior to class and to actively participate in class discussions. Attendance will be taken at the beginning of the class, and at the end of class. If you miss one class session, or part of a class session, your final course grade will be “round downward” by one letter grade. An absence of more than one class during the semester will result in an F grade for the course, unless approved by your instructor To maximize learning, each group will participate in three formal group presentations during the semester exclusive of the final group project. INDIVIDUAL REPORTS
During the semester, you will be required to submit three individual reports, each worth seven percentage points. Please refer to the topic outline for details on each exercise and the due dates. Each report should not exceed three word processed double-spaced pages. The border margins should be set at no less than one inch on all sides and the report should be numbered. The font should be 12 point (Times Normal preferred). Late submissions will not be accepted. Criteria for grading: Reports should be clear, concise, well organized, error-free and reflect an understanding and critical assessment of the major issues.
Specifically, the reports will be graded on the following dimensions: (1) Content: the breadth of analysis and the quality of the information (2) Skill: skill with which the relevant tools were employed and (3) Writing: clarity, conciseness, format (4) Extent to which key concepts from the book were integrated into the report. GROUP PROJECT #1: Toyota Group Presentation Recently, Toyota has received a lot of attention in the press. There were several causes for the rather negative press. The purpose of this assignment is for the group to research the background to the problems experienced by Toyota.
Each group needs to identify the root causes and any peripheral causes for the current problems. Are the problems purely technical in nature? Is there a communications issue? What about cultural differences between Japan and the US? Is there a political aspect? What is your groups’ recommendation for next steps Toyota should take to rebuild a reputation of quality and regain market share? Explain your reasoning in a 15 minute presentation not exceeding six PowerPoint slides: Hint: Carry out an Internet search and come up with 5-6 articles on the topic – Business Week, Forbes, Wall Street Journal Financial Times.
Next, read the first six chapters of the text. Finally, apply concepts from these chapters to the topic. Please use a large font size and ensure that you do not overload the slides with information. Please submit your power-point slides to me. A group report is not required for this case. GROUP PROJECT #2 (COUNTRY PROJECT) * Your team (about 5 members) represents a consulting group that has been retained by a large multinational corporation headquartered in the USA, Japan, or Europe.
Your assignment is to prepare a concise business plan that includes an environment and industry analysis and a plan of action for succeeding in that environment. The report should be professionally prepared as if for a real consulting project. The report should be double-spaced, and the body no more than 8 pages, exclusive of exhibits and references. The border margins should be set at no less than one inch on all sides. The font should be 12 point (I prefer Times Normal). The topics for the group project are listed below: 1. Theme park company in INDONESIA (e. g. , Disney, Paramount, etc. 2. Cosmetics company in SINGAPORE (e. g. , P&G, L’Oreal, Revlon, etc. ) 3. Home appliance company in CHILE (e. g. , Whirlpool, Electrolux, GE etc. ) 4. Automobile company in TURKEY (e. g. , GM, Honda, Ford, Nissan etc. ) I will decide the above topics for each group. For the foreign country, decide whether you will establish your own manufacturing facility, buy another company, create a joint venture, or create a distribution network in that country. COUNTRY PROJECT GUIDELINES DATA COLLECTION: PLEASE NOTE THE FOLLOWING REPRESENTS GUIDELINES FOR DATA COLLECTION ONLY AND NOT THE REPORT
PART 1: Collect the following information for your country Economic factors, Demographic factors, Technological factors, Political factors, legal factors, cultural factors, Infrastructure (Refer to chapters 1-2, 4, 5-7 in the text book). Basic description of the industry, major subcategories, the industry’s role in the world economy, major competitors, location and transportation issues, labor issues, technology issues and trends and lifecycle. PART 2: Collect information on the competition that currently exists for your industry in the foreign country.
Collect information on the industry, its role in the world economy, the subcategories, location and transportation issues and labor issues (refer to chapter 3 in the text book). Collect information for your company including most recent financial statements (refer to company annual reports). PART 3: For your COMPANY analysis, refer to chapters 8-15 in the text book. Corporate strategy: what are the long-term goals of the company? What are your long-term expansion plans for this country? What will be the composition of the top management team for this venture?
Who is going to finance this venture? Will you Joint-venture with a local company or will you have a wholly-owned subsidiary? SWOT or Value Chain analysis for the company Business Strategy: what strategies will you adopt for your company in the foreign country? Low-cost strategy? Differentiation strategy? Global strategy (standardized)? Multicountry strategy (strategy tailored to meet local needs in foreign markets) You need to understand PART 1 and PART 2 to decide the best business strategy. Functional strategy: Discuss production (where will production take place and why? Marketing, logistics, advertising, customer service (It is important to understand culture for this section) Implementation: Draw an organizational structure for your company incorporating the international dimension. Who will control the operations? Discuss leadership style and motivation techniques (Chapters 12, 13) Human resource management: What are the staffing policies for this country? Where are you going to find employees? (Chapter 14) What systems will you have in place to appraise the performance of your employees (Chapter 14) ——————————————————————————————————–
GUIDELINES FOR PROJECT PRESENTATION AND REPORT One page executive summary A description of the external environment (Integrate information from PARTS 1 AND 2 described above as it relates to your country) A description of the mission, objectives, strategic predispositions, SWOT, and intended corporate and business strategies for your company (PART 3 described above) A plan for implementation which includes: An organizational plan/structure for your company with an international dimension, Functional strategies, Leadership, motivation, human resource management and systems: PART 3 The project presentations will be held on May26, 2010.
The grade for the project will be determined using the following criteria: a. Group projects (content & structure of written report and oral presentation) b. Intra group peer evaluations (this is critical) SOURCES OF INFORMATION Information for the project may be obtained from the Xavier Library, University of Cincinnati Library, Public Library, the Greater Cincinnati Chamber of Commerce World Trade Division, and the U. S. Department of Commerce Regional Office. World Wide Web sources: 1. http://www. hoovers. com/features/industry/industries. html 2. http://web. lexis-nexis. com/universe 3. http://www. ahoo. com/Regional/countries/ 4. http://www. usitc. gov/ 5. http://www. wto. org/Welcome. html 6. http://www. businessweek. com/ 7. http://www. ft. com/ 8. http://www. pathfinder. com/fortune/ 9. http://www. wsj. com/ COMPREHENSIVE GROUP PROJECT #3 (PRESENTATION AND GROUP REPORT) The assignment: Each group (about 5 members) will prepare a report on a company of their choice which is not in the text book (and integrate it with a country of my choice). The groups will collect data on this company, collect data on this country, and integrate the data according to the format described in the syllabus.
The groups will then present this case during the final class of this semester. The groups will also turn in a written report on the day of the presentation. The grade for the project and for individual members will be based on the content and structure of the oral presentation and written report and peer evaluations. The Group Report: The report should be double-spaced, and the body no more than 10 pages, exclusive of exhibits and references. The border margins should be set at no less than one inch on all sides. The font should be 12 point (I prefer Times Normal). The final report should not exceed 20 pages ncluding the title page, body, and appendices. Sources: Information for the project may be obtained from the Xavier Library, University of Cincinnati Library, Public Library, the Greater Cincinnati Chamber of Commerce World Trade Division, and the U. S. Department of Commerce Regional Office. HONESTY All forms of cheating will result in an F for the course. In this class cheating includes plagiarism (using country write-ups and case reports from other students (previous or current)). GRADING CRITERIA A: Error free report or presentation. Excellent integration of course material and discussion. B+: Minimal errors in report or presentation.
Good integration of course material and discussion. B: Some errors in report or presentation. Good integration of course material and discussion. C: Several errors in report or presentation. Below average or minimal integration of course material and discussion. D: Several errors in report or presentation. Poor or no integration of course material and discussion GRADING SCALES Calculation of final course grade from test / group presentations / class participation points / individual assignments scores. A 91 points and above out of 100 points A- 89-90. 9 points B+ 85-88. 9 points B 80-84. 9 points B- 75-79. 9 points C 70-74. points About your instructor: Paul Berge is adjunct professor at Xavier University. He worked for many years in business and currently owns his own consulting business in international business development and M&A in Cincinnati. Most of his business experience comes from his work in the automatic identification industry. He was VP Business Strategy at Flextronics International, VP Business Development and Globalization at Kimball International, VP International Operations at Monarch Marking Systems (now Paxar), EVP at Olympus-Symbol in Tokyo – Japan and Managing Director Symbol Technologies International in Brussels, Belgium.
After growing up in the Netherlands and living in several countries in Europe, he settled in the US in 1990 and lived in Tokyo, Japan for three years. Paul Berge speaks four European languages fluently. He is the recipient of the Richard R. Dilling Award in 1989 for his work in the automatic identification industry. He currently serves a Chairman of AIDC100 an honorary association of individuals who have made a significant difference in the global adaptation of automatic identification technologies such as barcodes, biometrics and RFID.
Paul Berge has been guest lecturer in several undergraduate and graduate classes in International Management at Xavier University. He has also guest-lectured at UC, NKU and Thomas More College. Paul Berge obtained his MBA in International Business from Nyenrode University in the Netherlands. TOPIC AND ASSIGNMENT OUTLINE DATETOPIC AND ASSIGNMENT APRIL 21INTRODUCTION TO THE COURSE AND PARTICIPANTS APRIL 28CHAPTERS 1, 2 AND 3 Individual report # 1 due (Starbucks case handed out by me, questions 1 through 8) MAY 5CHAPTERS 4, 5, 6 Cross Cultural Conflicts Simulation: Corning-Vitro JV – Case on page 222 and Simulation on Page 564
MAY 10CHAPTERS 7, 8 Group presentations #1 (Coca-Cola in India, page 224 in book – Questions 1, 2, 3 and 4) MAY 12CHAPTERS 9, 10 Individual report # 2 due (HP-Compaq merger, Page 377 questions 1, 2, 3, 6 and 7) MAY17CHAPTERS 11, 12, 13 Individual report # 3 due (Meridco case handed out by me) MAY 19Group presentation # 2 Groups 1, 2: Studio Moderna- case handed out by me, Groups 1 and 2 will present and submit their reports. Groups 3 and 4 will serve as commentary groups Groups 3, 4: PepsiCo in Pakistan – case handed out by me Groups 3 and 4 will present and submit their reports.
Groups 1 and 2 will serve as commentary groups MAY 24CHAPTERS 14, 15 AND REVIEW Group Presentation # 3 A local case: Chiquita Global Turnaround, Page 530 Group 1: Exercise 2 on page 537 Group 2: Exercise 3 on page 537 Group 3: Exercise 4 on page 537 Group 4: Exercise 5 on Page 537 MAY 26 COUNTRY PROJECT presentations MAY 31MEMORIAL DAY – No Class JUNE 2US-EU Trade Dispute Simulation: Frankenfoods – Page 557 Group 1: Represents the US Government Group 2: Represents the European Union Group 3: Represents Manufacturers of GMO products
Group 4: Represents NGO’s opposing GMO products JUNE 7Open Discussion of Case “Solvay Group – International Mobility and Managing Expatriates JUNE 9COMPREHENSIVE GROUP PROJECT PRESENTATIONS OUTLINE FOR INDIVIDUAL REPORT #1: “Starbucks” By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee retailer’s yearly growth had declined by half, quarterly earnings had dropped as much as 97 percent, same-store sales were negative, and its stock price was languishing.
Factors such as a global economic downturn and increasing competition in the specialty coffee market from large players such as McDonald’s and Dunkin’ Donuts had driven this decline, resulting in the closings of hundreds of domestic stores already, with many more planned. Founder Howard Schultz, who had recently returned as CEO, and his executive team were convinced that Starbucks’s growth opportunities lay overseas, where the firm already had a strong foothold in markets like Japan and the United Kingdom and was preparing to open hundreds of new stores in a variety of locations.
But recent international challenges, including the closing of most Australian stores due to sluggish sales, made clear that Starbucks had more to learn about bringing its value proposition–a combination of premium coffee, superior service, and a “coffeehouse experience”–to foreign soil. The key question was not whether Starbucks could transport its value proposition overseas, but how the value proposition’s three elements would play in recently entered and new markets. And the stakes of making the right international moves rose with each U. S. store closure.
Schultz and his team also faced a broader question, one that applied to both their U. S. and foreign stores: Could they “grow big and stay small,” remaining a huge retailer that delivered both high-quality products and a consistently intimate and enjoyable experience to consumers worldwide? This case presents this challenge in the context of Starbucks’s history, well-established value proposition, and domestic and international growth and vision. The key objectives of the case focus on the successful growth of local city brand, to a country brand, to a global brand, leaving the questions: 1.
How much more can it grow? 2. Can it? 3. What is the impact of new competitors in a given market and/or the impact of the global economy on discretionary spending by a loyal customer base? 4. How important is it to sustain a brand’s core value(s) proposition when innovating for new audiences and customer preferences? OUTLINE FOR SIMULATION “Cross Cultural Conflicts in the Corning-Vitro JV” Before we start the simulation, make sure you prepare answers to the following questions: 1. Identify and discuss Corning’s strategic predisposition toward a joint venture with Vitro. . Cultural clashes among partners in joint ventures are not a new issue. Discuss why MNC’s like Corning would be interested in fully understanding the culture of a potential partner before deciding on an alliance. 3. If Corning and Vitro had decided to remain in the alliance, how could they have overcome their differences to make the partnership a success? 4. Discuss why both companies would continue to distribute each other’s products after the joint venture failed. What impact might the public statements about the failure have on this relationship?
The simulation is presented as a negotiation related to cross-cultural conflicts and the challenges of integration national and organizational cultures. The simulation wil help you understand the various issues associated with national and organizational culture, and the developing, implementing, and managing joint ventures and alliances. OUTLINE FOR GROUP PRESENTATIONS AND COMMENTARIES Group Presentation #1: Integrating National and Organizational Cultures: Coca-Cola in India 1. What aspects of U. S. and Indian culture may have been a cause of Coke’s difficulties in India? . How might Coca-Cola have responded differently when this situation first occurred, especially in terms of reacting to negative perceptions among Indians of Coke and other MNCs? 3. If Coca-Cola wants to obtain more of India’s soft drink market, what changes does it need to make? 4. How might companies like Coca-Cola and PepsiCo demonstrate their commitment to working with different cultures and to respecting the cultural and natural environment of those societies? OUTLINE FOR INDIVIDUAL REPORT #2: “HP-Compaq Merger” 1.
Do you believe the new HP has communicated its combined offering effectively in its international markets? What else needs to be done? 2. What are some of the entry and organizational challenges that HP faces? Group Presentation #2 for Group 3 and 4: PepsiCo in Pakistan In July, 1991, Irfan Mustafa, West Asia Area Vice President and Chief Executive Officer of Pepsi Cola Pakistan Incorporated (PCI), faced several dilemmas. First, as part of the 7-Up acquisition, Mustafa had to convince the remaining Pakistani 7-Up bottlers to sell their plants to PCI bottlers and oversee the resulting integration.
Second, Pepsi Cola International had shifted focus to its global brands, and since acquiring 7-Up International in 1986, had withdrawn all marketing and technical support for Pepsi’s local yet successful Pakistani brand, Teem. In light of the focus on global brands, Mustafa needed to determine the role of each brand in his portfolio (Pepsi, 7-Up, Teem, and Mirinda), with particular focus on 7-Up and Teem. Lastly, in an effort to distinguish 7-Up from Teem, formerly competitors, PCI had developed Cloudy Teem–a milky colored lemon-lime soft drink.
Mustafa had to assess whether Cloudy Teem had major growth potential and if so, figure out how to roll it out across Pakistan despite resistance from his bottlers. This case explores Mustafa’s dilemmas, also touching on urban versus rural marketing and distribution challenges. Key objective: To explore the issues of balancing a global brand with a local brand, managing an international franchise and franchise partners, and managing a product line. Group Presentation #2 for Group 1 and 2: Studio Moderna
Studio Moderna is the leading electronic retailer in 20 countries in and around Central and Eastern Europe, and use a multi-channel business strategy, organizational structure, and IT system. When management conflicts arise, Sandi Cesko, CEO and co-founder must decide whether to change his in-sourcing strategy to out-sourcing. Key objective: To illustrate the issues in building and managing a regional venture in Central and Eastern Europe. Group Presentation #3: Chiquita 1. How would you characterize Chiquita’s historic approach to global management? 2.
Describe Chiquita’s approach to human resource management in its global supply chain. What particular human resource challenges does Chiquita face as the purchaser, producer, and supplier of a commodity? 3. Does Chiquita’s global corporate responsibility program create a conflict between shareholders and other stakeholders? Who are Chiquita’s main stakeholders in the United States and around the world, and how are they affected by Chiquita’s CR program? 4. How would you characterize Chiquita’s past and present leadership? How does leadership affect a company’s overall reputation? . Do you believe Chiquita would have changed its policies without the presence of damaging stories in the media? If not, what does this say about Chiquita’s old management style? 6. What challenges does Chiquita’s new CEO face in continuing to turn the company around and balance the interests of competing stakeholders? OUTLINE FOR INDIVIDUAL REPORT #3: “Meridco” Meridco Magnesium is an international automotive parts supplier of magnesium die-cast components with manufacturing plants in Canada, the United States, and France.
The company has a strong market position in North America; however, two of the three plants are not performing well. The vice president of the company’s Global Technologies Organization division believes the weaker performance in the two plants is due to resistance to technological innovations. He must determine the reasons for this resistance and develop a plan to resolve the weak performance in the plants before the upcoming annual board meeting. Key objective: To highlight the difficulties in transferring technology across cultures and the mechanisms/actions by which knowledge can be transferred most effectively.
OUTLINE FOR SIMULATION “US-EU Trade Dispute: Frankenfoods” Over the past several years, genuine policy differences between the US and the EU have emerged over: trade issues such as the ‘banana war’; genetically modified foods; the American Federal Sales Corporation (FSC) tax and Europe’s refusal to substantially reform the Common Agricultural Policy (CAP). While US/EU trade has increased steadily since the 1950s, there has been serious conflict over the impact of genetically modified foods.
In August 2003, country members of the WTO met in Geneva to hear the US request for a full-blown dispute settlement proceeding regarding the European Union’s restrictions on import and sale of goods produced with or containing genetically modified organisms. Earlier in year, the EU passed legislation calling for explicit labeling of GMO food products; foods containing as little as 0. 9% of GM ingredients must be properly labeled as such. The US argued that this legislation is discriminatory against GMO products and in violation of WTO provisions. Moreover, the US has complained that the 0. % threshold is far too restrictive. Since the EU is the fourth largest market for US agricultural exports, the possible damage to the US economy is clear. In an attempt to gain world support, US officials have been quick to point out the benefits that GMOs can have on stimulating agricultural growth in developing nations. The EU contends that its citizens aren’t interested in consuming GMO products and this fact alone is reasons for their trade restrictions with the US. In preparation for the simulation try to answer these questions: 1. How does your solution compare to your expectation of the likely actual outcome?
What is different or similar in the two approaches? 2. How would you characterize the cultures of Europe (France and Germany) in terms of Hofstede’s scheme? In what ways are the cultures similar, and in what ways do they differ? How might the differences influence approaches to disputes like this? 3. Why would an approach emphasizing “substantial equivalence” result in an outcome different from the outcome of a policy driven by the “precautionary principle”? 4. How might the United States and EU resolve differences such as this in the future? Discussion points for Case: “Solvay Group”
Marcel Lorent, head of International Mobility at Brussels-based Solvay Group, faces decisions on the expatriation status of four of his firm’s talented executives. Each decision will impact the candidate’s professional and personal life, and will have implications for effective management and growth in Solvay’s global markets. The case explores these issues, with a close look at Solvay’s attempts to develop talent management and mobility processes that allow the firm to align its strategic needs with the complexities of its individual employees’ needs and lives.
Key objective: To examine and understand the many dimensions of international mobility, leadership development, human resources practices, and expatriate assignments in a global company. To consider these issues from employees and employer perspectives. GUIDELINES FOR VOICE MAILS LEFT FOR FACULTY Keep voice mails short and easy to understand. Call (513) 871 665 1. Identify yourself. To begin, speak slowly so your teacher can easily understand your name, the class title and class time, and when appropriate, your phone number. (For longer messages, include the contact information at the end of the message as well. 2. Make it easy for your teachers to understand specifically what you want them to do in response to your message. Describe What you want and Why Add Details, as needed, including follow-up. Clarify urgency, if any Guidelines for email to professors Subject line and greeting Send email to: pberge01@gmail. com. Include your name and the course number in the subject line, such as A request from Jim Smith, Mgmt 300. Content Compose email that fits neatly on one and no more than two screens. Write directly, indicating in the first paragraph why you are writing and what you want your reader to do in response.
Indicate when you need a response while refraining from insisting on an immediate timeframe for a reply. Sign with your full name, course number, and meeting time. Edit for polite tone. Proofread for grammar, punctuation and diction. Spell-check for accuracy. STUDENT INFORMATION SHEET NAME: PHONE NUMBER: (W) (H) E-MAIL ADDRESS: ANY INTERNATIONAL TRAVEL? IF YES, PLEASE LIST THE COUNTRIES: ANY INTERNATIONAL WORK EXPERIENCE? IF YES, PLEASE DESCRIBE: COURSES TAKEN IN INTERNATIONAL BUSINESS: EXPECTATIONS FROM THIS COURSE: THANK YOU!