COURSE SYLLABUS INTERNATIONAL BUSINESS STRATEGY. Master in International Business Year

Transcription

1 MASTER PROGRAMS Fall Semester 2008/2009 COURSE SYLLABUS INTERNATIONAL BUSINESS STRATEGY Instructor: Panibratov Andrei Yurievich, PhD, MBA, Associate Professor Organization of the course Program Master in International Business Year 2nd year Course status Core Workload 6 ECTS, 45 hours of classes Prerequisites International economics, International marketing, International trade Teaching methods Lectures, case studies, group projects, individual reports, home assignments Course objectives The aim of the course is to provide students with understanding of the following issues: why companies compete internationally and how the MNC is interpreted theoretically as an economic organization; how companies organize their resources and capabilities to achieve competitive success in international context; what are specific strategies for MNCs in entering and organizing activities in transition economies (the Russian Federation as a core example). Course content Part 1. Internationalization of the firm Topic 1. Internationalization process. Topic 2. The MNE as an economic organization. Topic 3. Foreign direct investments. Part 2. Strategic capabilities of MNC Topic 4. Globalization and the global firm: theory and practice. Topic 5. Building strategic capabilities. Topic 6. International business environment: transition economies. Part 3. Managing MNC Topic 7. Developing coordination and control. Topic 8. Organization of the MNC activities in transition economies. Topic 9. MNC strategies for the Russian market.

2 Plan of classes Introduction A.Yu.Panibratov September 2 # Pre-Course Reading Assignment for Class 1: Cumberland, F. Theory Development within International Market Entry Mode An Assessment // The Marketing Review, 2006, 6, ; Kogut, B. International Management and Strategy / Handbook of Strategy and Management, ed. by A. Pettigrew, H. Thomas and R. Whittington, 2002, pp Topic 1. Internationalization process Class 1 A.Yu.Panibratov September 9 Approaches to internationalization. International decision process. Market entry mode. Multinational enterprises and the global economy. Learning outcomes: After this session you should be able to understand the international market entry decision process. Assignment for Class 2: Caves, R.E. Multinational enterprise and economic analysis, 2 nd edition, Cambridge University Press, 1996, Chapter 1; Teece, D.J. Multinational Enterprise, Internal Governance, and Industrial Organization // AEA Papers and Proceedings, 2001, # Tasks and exercises: MNEs and factors of their success evident practices and hidden influences. IBM case study; Scanning reading recommended for the preparation of individual reports and start topic selection. Topic 2. The MNE as an economic organization Class 2 A.Yu.Panibratov September 16 The economic analysis of multinational enterprise. The determinants of MNE activity. Factors of MNC s success. Learning outcomes: After this session you should be able to understand the economic, organizational and managerial essence of MNC, and to know about the most significant factors of MNC s success. Assignment for Class 3:

3 Jensen, C. Foreign Direct Investment and Economic Transition: Panacea or Pain Killer? // Europe-Asia Studies, 2006, Vol.58, No.6, ; Tsang, E., Yip, P. Economic Distance and The Survival of Foreign Direct Investments // Academy of Management Journal, 2007, Vol.50, No.5, # Tasks and exercises: To submit the final topics of individual reports; To prepare small cases on the investment activity of MNC # Project Assignment: Define the list of MNCs that can be considered as the source of group project data. Topic 3. Foreign direct investments Class 3 A.Yu.Panibratov September 23 Concepts of FDI. OLI-paradigm. Greenfield vs. brownfield strategy. Learning outcomes: After this session you should be able to know about contemporary theories of FDI, particularly J. Dunning ideas, and to understand motives, weaknesses and perspectives of main investment strategies when entering new oversea locations. Assignment for Class 4: Kim, W.Ch., Mauborgne, R.A. Making Global Strategies Work, in Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), pp ; Yip, G.S. Global Strategy in a World of Nations? in Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), pp # Tasks and exercises: Examples of globalization of the firms. Why global? # Project Assignment: To submit the final topics and the developed plan of group projects. Topic 4. Globalization and the global firm: theory and practice Class 4 A.Yu.Panibratov September 30 Approaches to globalization. Globalization of markets. Japanese theories of internationalization.

4 Learning outcomes: After this session you should be able to know terminology and concepts of globalization, to understand the difference between global and multinational approaches to the internationalization. Assignment for Class 5: Birkinshaw, J., Hood, N. Unleash Innovation in Foreign Subsidiaries, in Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross- Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), pp ; Sapienza, H.J., et al. A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth // Academy of Management Review, 2006, Vol.31, No.4, ; Yu, T., Cannella, A. Rivalry Between Multinational Enterprises: An Event History Approach // Academy of Management Journal, 2007, Vol.50, No.3, # Tasks and exercises: Knauf international strategy. Case study # Project Assignment: To demonstrate printed copy of the project data sources (first page is enough) articles, websites, statistical information. Topic 5. Building strategic capabilities Class 5 A.Yu.Panibratov MNC and its strategies. Environmental analysis and strategy implementation. Multimarket competition among multinational corporations. October 7 Learning outcomes: After this session you should be able to know about strategic choices of MNC when internationalizing operations, and to carry out the analysis the MNC environment. Assignment for Class 6: Bitzenis, A., Marangos, J. Globalization and the Integration- Assisted Tratsition In Central and Eastern European Economies // Journal of Economic Issues, June 2007, Vol. XLI, No.2, ; Virvilaite, R., Seinauskiene, B., Matulioniene, L. Internalization of Company Activity: The Conception of Psychological Distance // Ekonomika ir Vadyba (Economics and Management), 2007, 12, # Tasks and exercises: Otis in Russia. Case study. # Project Assignment: to prepare to the project development discussion.

5 International Workshop 1 J.P.Larcon October October # Lectures: Strategy in Emerging Markets; Globalization: the WTO impact. # Group work: Case: Guangzhou Honda Entry Strategy into China; Mini-case: Skoda auto Rebirth. # Reading assignment: Pankaj Ghemawat, Distance Still Matters, Harvard Business Review, September Topic 6. International business environment: transition economies Class 6 A.Yu.Panibratov October 21 The evolution of the organizational landscape in transforming economies. Entry into transitional economy markets. Building successful partnerships. Learning outcomes: After this session you should be able to reveal features of transitional economies, and to know about peculiarities of the entry to the newly emerging markets. Assignment for Class 7: Egelhoff, W. The Importance of the Strategy-Structure Relationship in MNCs / The Blackwell handbook of crosscultural management / ed. by Gannon, M. And Newman, K., Blackwell, 2002; Rangan, S., Sengul, M. ICT Influence on the Internationalization-Internalization Coupling // Academy of Management Best Conference Papers, 2006 IM, B1-B6; # Tasks and exercises: To formulate the questions and problems related to the concept of the group project. # Project Assignment: To submit the first draft of the project Intermediate test October 28 Topic 7. Developing coordination and control Class 7 A.Yu.Panibratov

6 November 4 Configurations of strategy and structure in MNC subsidiaries. Partnerships and strategic alliances. Knowledge flows within multinational corporations. The geographic sources of foreign subsidiaries innovation. Learning outcomes: After this session you should be able to know about the process of building the structure and strategy of internationalizing firm, and to understand the boundaries of MNC. Assignment for Class 8: # Reading assignment: Micklethwait, J., Wooldridge, A. The Globalization Backlash // Foreign Policy, Sep/Oct 2001, Issue 126, 16-23; White III, G.O., Joplin, J.R.W., Salama, M.F. Contracts and Conflict Resolution Strategies in Foreign Ventures: A Transaction Cost Perspective // International Journal of Conflict Management, 2007, Vol.18, No.4, ; Tasks and exercises: Nokian Tyres. Case study. # Project Assignment: To submit the final copy of the group project. Topic 8. Organization of the MNC activities in transition economies Class 8 A.Yu.Panibratov November 11 Business strategies in transition economies. Opportunities and roadblocks for foreign investors in Eastern Europe. Strategic investment flexibility for MNC success. Learning outcomes: After this session you should be able to understand the most important principles of strategic behavior of MNC in transitional economies, studying the empirical data on their activity. Assignment for Class 9: Panibratov, A.Yu. Internationalization of the Russian Construction Industry; Panibratov, A.Yu. Konecranes Russia. # Tasks and exercises: Prepare to present group projects. # Project Assignment: To submit the PP presentations. International Workshop 2 J.P.Larcon November November # Lectures: Coordination and Control in Multinationals; The Multinationals of BRIC Countries. # Group work: Case: Waking the Bear: Danonizing the Bolshevik Biscuit Factory;

7 Mini-case: Danone New Frontiers. # Reading assignment: Tarun Khanna and Krishna G. Palepu. Emerging Giants: Building World-Class Companies in Developing Countries, Harvard Business Review, October Topic 9. MNC strategies for the Russian market Class 9 A.Yu.Panibratov November 25 Doing business in Russia: lessons from early entrants. The MNC choice for the Russian market: to be global or multinational? Competitive strategies for Russian industries: best MNCs experience and issues. The format of the last session is the group project presentations. After this session you should be able to draw conclusions related to the MNC strategies in Russia on the basis of experience studying, and to estimate prospects of the Russian market for multinationals. Office hours for individual consultations: # Panibratov Andrei Yurievich # Wednesday, , Room 420, per. Dekabristov. Calendar plan of current and final evaluation Submission of the topics of individual reports September 23 Submission of the topics of group projects September 30 Mid-term test October 28 Intermediate attestation November 4 Submission of the final draft of the group projects November 11 Group project presentations November 25 Written exam January 2009 Evaluation system Current evaluation of students results is based on the assessment of their in-class activity. Individual report (in the form of the PowerPoint presentation) should cover the main theoretical approaches studied during the first part of the course. The mid-term attestation supposes the positive assessment of the intermediate written test. Final evaluation of students results is based on their in-class activity, mid-term results, group project reports and written exam. The group project report must contain an explicit relation between the defined MNCs' business strategies and the selected theoretical approaches. The final exam is based on all course issues and materials. Grading system: Activity Approximate weight

8 Individual reports 10 % Group activity 10 % Midterm test 10 % Course project in study group 10 % Written exam at the end of the course 60 % Reading Basic reading Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), Cases Gaspar, G.E., Katkalo, V.S., Panibratov, A.Yu. Otis Russia, Case Study and Teaching Notes, Texas A&M University, Panibratov A.Yu. Knauf International s Strategy: Does Russia Need German Brick? (Case) / The European Case Clearing House (ECCH) Panibratov, A.Yu. Internationalization of the Russian Construction Industry. Panibratov, A.Yu. Konecranes Russia. Panibratov, A.Yu. Nokian Tyres in Russia. The Globalization of CEMEX, in Bartlett C.A., Ghoshal S., Beamish, P. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw- Hill, p Renault/Nissan: The Making of a Global Alliance, in Bartlett C.A., Ghoshal S., Beamish, P. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw-Hill, p Other required reading (included in the compendium): Andersen, O. Internationalization and Market Entry Mode: A Review of Theories and Conceptual Frameworks. // MIR (Management International Review), vol.37, Special Issue, 1997/2, p Birkinshaw, J., Hood, N. Unleash Innovation in Foreign Subsidiaries, in Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Bitzenis, A., Marangos, J. Globalization and the Integration-Assisted Tratsition In Central and Eastern European Economies // Journal of Economic Issues, June 2007, Vol. XLI, No.2, Blomstermo, A., Eriksson, K., Sharma, D.D. Domestic Activity and Knowledge Development in the Internationalization Process of Firms // Journal of International Entrepreneurship, 2004, 2, Casson, M. Multinational Enterprises: Their Private and Social Benefits and Costs // The World Economy, 2007, Journal compilation, Blackwell, Caves, R.E. Multinational enterprise and economic analysis, 2 nd edition, Cambridge University Press, 1996, Chapter 1. Cumberland, F. Theory Development within International Market Entry Mode An Assessment // The Marketing Review, 2006, 6, Dacin, M.T., Oliver, C., Roy, J.-P. The Legitimacy of Strategic Alliances: An Institutional Perspective // Strategic Management Journal, 2007, 28,

9 Dong, B., Zou, Sh., Taylor, Ch.R. Factors That Influence Multinational Corporations Control of Their Operations in Foreign Markets: An Empirical Investigation // Journal of International Marketing, 2008, Vol.16, No.1, Doz, Y., Santos, J., Williamson, P.J. The New Global Game: How Company Can Win in the Knowledge Economy, in Bartlett C.A., Ghoshal S., Birkinshaw, J. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 4 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Egelhoff, W. The Importance of the Strategy-Structure Relationship in MNCs / The Blackwell handbook of cross-cultural management / ed. by Gannon, M. And Newman, K., Blackwell, Ghoshal, S., Gratton, L. Integrating the Enterprise, in Bartlett C.A., Ghoshal S., Birkinshaw, J. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 4 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Grichnik, K., Winkler, C., Hochberg, P. Manufacturing Myopia // Strategy & Business, Spring Jensen, C. Foreign Direct Investment and Economic Transition: Panacea or Pain Killer? // Europe-Asia Studies, 2006, Vol.58, No.6, Kim, W.Ch., Mauborgne, R.A. Making Global Strategies Work, in Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Kogut, B. International Management and Strategy / Handbook of Strategy and Management, ed. by A. Pettigrew, H. Thomas and R. Whittington, 2002, pp Levitt, T. The Globalization of Markets, in Bartlett C.A., Ghoshal S., Birkinshaw, J. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 4 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Merino, F. Firm s Productivity and Internationalization: A Statistical Dominance Test // Applied Economics Letters, 2004, 11, Micklethwait, J., Wooldridge, A. The Globalization Backlash // Foreign Policy, Sep/Oct 2001, Issue 126, Nonaka, I. The Knowledge-Creating Company, in Bartlett C.A., Ghoshal S., Birkinshaw, J. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 4 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Ohmae, K. Managing in a Borderless World, in Bartlett C.A., Ghoshal S., Birkinshaw, J. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 4 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Ohmae, K. The Global Logic of Strategic Alliances, in Bartlett C.A., Ghoshal S., Birkinshaw, J. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 4 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Palich, Leslie E., Gomez-Mejia, Luis R. A Theory of Global Strategy and Firm Efficiencies: Considering the Effects of Cultural Diversity // Journal of Management, Vol. 25, No.4, 1999, pp.592. Porter, M.E. Competition in Global Industries: A Conceptual Framework, in Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross- Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Rangan, S., Sengul, M. ICT Influence on the Internationalization-Internalization Coupling // Academy of Management Best Conference Papers, 2006 IM, B1-B6.

10 Sapienza, H.J., Autio, E., George, G., Zahra, S.A. A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth // Academy of Management Review, 2006, Vol.31, No.4, Shi Fen S. Chen. Extending internalization theory: a new perspective on international technology transfer and its generalization // Journal of International Business Studies, Teece, D.J. Multinational Enterprise, Internal Governance, and Industrial Organization // AEA Papers and Proceedings, 2001, Tsang, E., Yip, P. Economic Distance and The Survival of Foreign Direct Investments // Academy of Management Journal, 2007, Vol.50, No.5, Virvilaite, R., Seinauskiene, B., Matulioniene, L. Internalization of Company Activity: The Conception of Psychological Distance // Ekonomika ir Vadyba (Economics and Management), 2007, 12, White III, G.O., Joplin, J.R.W., Salama, M.F. Contracts and Conflict Resolution Strategies in Foreign Ventures: A Transaction Cost Perspective // International Journal of Conflict Management, 2007, Vol.18, No.4, Yip, G.S. Global Strategy in a World of Nations? in Bartlett C.A., Ghoshal S., Beamish P.W. Transnational Management: Text, Cases, and Readings in Cross-Border Management, 5 th ed., Irwin / McGraw-Hill, Boston (Mass), pp Yu, T., Cannella, A. Rivalry Between Multinational Enterprises: An Event History Approach // Academy of Management Journal, 2007, Vol.50, No.3,