International Business Strategy Hill

supranational line system rejoin 2010 Course delimit 1. motivation and definition of the course Companies straight off confront an change magnitude array of choices regarding markets, locations for key activities, outsourcing and ownership personal manners, and composition and professional personcesses for managing across transnational borders. This course boil downes on the planetary dimensions of dodging and organization, and provides a cloth for formulating strategies in an increasingly complex world. The terminus of this course is to provide the foundations for taking rough-and- get wordy action in the multi-faceted world of world(prenominal) clientele. 2. ourse structure The structure of this course conserves a logical sequence where first the world-wideist environment is analysed in relation to the world(prenominal) strategies of impregn ables. Next, we study the optimal stage setting of the fuddled across geographical markets, and whether a squ be s hould diversify or puff its scope across unlike geographic markets. such(prenominal) a scope economy drive out either be demand side, when the loyal give the axe restate a scheme that whole kit well domestically in a unpolished that was previously miss that product or service, or go forth side, when a house attainks to exploit a valuable resource from deep down a new market.In the first side, a firm arbitrages a product or a strategic capability into a new market whereas, in the piece case, it arbitrages the promoter cost advantage of a new market. We go forth also see that in order for the firm to turn tail the scope of activities under its own c atomic number 18 to a extraneous country, there has to be some market failure fork over preventing that firm from simply licensing or sell its valuable resource to an indigenous firm or buy it from an indigenous firm in the case of supply-side scope economies. As most cross-border expansion of signifi stinkpotce be fore long occurs through M&A or alliances, we look at the softenicular hallenges such trading operations entail for the firm. Finally, we examine how the off-shoring of activities whitethorn help firms to break off compete in the global economy. Method The course return key through a combination of lectures, renditions, and qualification use of the case method. You should wipe out absolute the set readings prior to a crystalise and be prepared to answer the case questions in layer. This means that you should form read the assigned case for a manikin and be prepared to answer the questions on that case. Some circlees have optional drills, which are simply listed in case you have particular interest in reading further on a topic. exercise abridgment involves an enhanced utilisation 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. depth psycho logy of international strategy issues is not over(p) through the routine application of formulas, only rather through reasoned analysis under conditions of limited information, uncertainty, by individuals and groups from opposite backgrounds and with particular schemas and ways and structures of organizing knowledge.With a case, you should be able to get a line the key issues, problems, and opportunities facing the central protagonists, to articulate and evaluate preference approaches to tackling the problems, and to describe the course of action that you urge on and the reasons for your recommendation. guinea pig selection criteria in part includes variation across circumstances and you should be able to port and apply the good examples, concepts and tools from one case, context and part of the course to anformer(a). Course instructions The jumper lead textbook for the Course isHill, Charles W. L. 2011. supranational product line Competing in the Global Marketplace. N Y McGraw-Hill external chance variable (Eighth Edition). cultivations from this textbook are supplemented by cases and opposite readings. 3. assessment Individual grades for this course have two components Class attendance + assignments(25%) scripted exam (75%) 4. course overview and materials 27 kinsfolk Introduction and course structure globalisation and regional integration learnedness Objectives pardon the phenomenon of globalisation justify wherefore managers today need a global location Describe the effects of globalization on markets and production apologise how technology and establishment support globalization Globalization versus regional stintingal integration business concern strategies and regional integration. development Hill, Chapter 1. Globalization Chapter 8. Regional sparing Integration. Optional Reading P. Dicken. 2007. Global budge mapping the changing contours of the World economy, fifth edition, London Sage Publications. October What molds countries and regions different? The role of burnish, institutions and political and stinting systems. instruction Objectives lay the business and economic implications of differences in culture infer differences in political and economic systems of countries Discuss the role of public policies in relation to the competitiveness of a country Explain how indicators of a countrys competitiveness can help firms watch where to locate production activities.Reading Hill, Chapter 2 study Differences in Political Economy. Chapter 3 Differences in Culture. Optional Reading E. Thompson, National Competitiveness A Question of terms Conditions or Institutional Circumstances, British ledger of Management, Vol. 15, 197218 (2004). 11 October internationalist guile theory, immaterial direct investment and competitiveness Learning Objectives Explain the evolution of different dish out theories Discuss the relevance of the New trade theory and Porters diamond Discuss the wide ness of foreign direct investment (FDI) in the world economy, and the changing patterns of FDI over period Present different theories that explain why a company would undertake an learning rather than a Greenfield investment Explain horizontal FDI, and suggest the conditions under which it whitethorn 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 transnational enterprise A neglected factor? (+ Comments). Journal of International championship Studies, vol. 40, no(prenominal) 1, 5-41 The Global Competitiveness Report, 2010-2011, World sparing Forum, Geneva 18 October Successful FDI advance how regions seek to influence merged FDI For corporeal FDI to be successful, it should pre-empt or be align with the FDI priorities of the host country and region.International businesses cannot accomplish durable advantages if it is out of sync with the aspirations of insurance insurance policy makers in the go-to locations. Hence decision makers should seek to generalize such aspirations and the colligated strategies. This module explores how policy makers seek to make their constituencies more enthralling for FDI. It addresses the challenges that some(prenominal) National Investment forwarding Agencies (IPAs) and Regional Development Agencies (RDAs) face to sustain successful strategies and to see these through to implementation.In this context, the module will cover some(prenominal) the offer that IPAs and RDAs can provide to corporate FDI finis makers, as well as the delivery thereof. Real life examples will be use to understand what works and what doesnt work today both for mature economies (e. g. Western Europe), transforming economies (e. g. Central Europe) and emerge economies (e. g. Asia). Lea rning Objectives regard the prevailing economic development concepts and FDI onward motion strategies Explore the pros and cons of the strategies meet the prevailing incentive schemes that regions use to thread corporate FDI Understand the EUs policies towards incentives Distil common pufflines 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 reward of Nations, Free Press 25 October The system of International Business Creating encourage from internationalization Learning Objectives Understand how internationalisation can create value Measure the parting of an internationalisation strategy Assess the business dumbfound 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 busines s, and identify the benefits from international strategies moorage CEMEX Reading Hill, Ch. 12, The Strategy of International Business, pp 419- 447 Extra note The value of a global strategy the ADDING framework. Extra note Adapting the business model to international markets. intelligence Questions 1) What benefits have CEMEX and the other global competitors in cement derived from globalization?Use the ADDING framework in reply this question. 2) What explains the better than average performance of CEMEX? How does this relate to exertion specific factors and the competition within the industry? 3) What makes CEMEXs internationalization answer so effective? What procedures and techniques are used? 4) In what other countries could CEMEX profitably smash its business? What are of the essence(predicate) factors to be considered for entering new markets. 1 November pass 8 November The Strategy of International Business Design and implementationLearning Objectives Outline the basic 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 strategy? 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 tame press, Cambridge, MA, 2007. Chapter 3 Global Value Creation. Case BRL Hardy Discussion Questions ) What are the thrust forces behind BRL Hardy to experience 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 launch Distinto? why or why not? 4) What recommendations would you make to the organization concerning the conflicting proposals for Kellys penalise and Banrock Station? What would you decide to do as Carson? As Millar? 15 November The physical composition of International Business Organizational architecture of the International firm. Learning Objectives Identify the different kinds of organizational structures and internal control 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 consolidation mechanisms available to multinational firms Show how the organizational architecture, control systems, integrating systems, and decision fashioning 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 brass of the multinational enterprise, Journ al 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 unneurotic 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 meekness 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 founding 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 study production facility there? 2. If yo u were to expand into India, would you enter through acquisition, a greenfield site, or some type of joint peril? Which factors would inform your decision among these entry mode choices? 3. In which countries is Lincoln Electric possible 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 meat incentive pay-for-performance management practices to local grind 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- ground 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 outright create value Present the phenomenon of outsourcing jobs from advance nations, such as the United States or Western Europe Understand that tour much attention 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 Serious About Offshoring in a Struggling Economy, Shared serve News (February) 19-23 Discussion Questions 1) What are corporate risks associated with outsourcing, and what can be done to rationalize these risks? 2) Are lucre arbitration based outsourcing tactics soon to become surplus as result of global wage cost escalations? 3 December backdrop up international strategic alliances Learning Objectives Discuss the role of strategic alliances, their advantages and disadvantages, shine up 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 session