International Business Development Management (IBDM)
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- Gyles Riley
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1 International Business Development Management (IBDM) Contact details Prof. Dr. Kai Alexander Saldsieder a) Introduction It is the aim of this lecture to offer its students a framework for understanding and successfully starting business within the field of international business development, covering the subjects of business strategy, marketing and sales. b) Course Objective Participants are to understand the basic course material and, with a deeper view, be able to know and differentiate different and conflicting schools of thought as well as diverse cross-cultural management approaches. In order to facilitate and support elementary management skills, participants are encouraged to apply course subjects to case studies as well as to real life examples conjointly with managers in class. In the end, successful participants learn how to simultaneously perform a number of elements requiring understanding of the entirety international business development management rather than an individual component. In order to achieve that goal, students, who enroll the seminar should deliver basic knowledge in business and management strategy as well as sound understanding of basic marketing and sales management techniques as, even more important, the ability and willingness to prepare analytically material in advance as well as participate within a culture of dialogue in class. c) Course Methodology The course is set up as a dialogue-based learning environment. Each session is enhanced by student activities in form of brief case study presentations. In addition to power point slides and flip chart notes, short videos and Internet-Sites are used to give a visual understanding and demonstration of state-of-the-art examples in the field of International Business Development Management. At the beginning of the class, students are asked to choose group assignments. The topics will be given then. d) Proposed course schedule d1) Overall Structure Part I The Decision whether to Internationalize Part II Deciding which Markets to Enter Part III Market Entry Strategies Part IV Designing the International Business Development Program Part V Implementing and Coordinating the International Business Development Program Syllabus page 1
2 d2) Session-by-session topics/activities with required readings and coursework Part I The Decision whether to Internationalize - Textbook: Hollensen (2011) 1 Text : Preface (pp. xvi xxii1) especially (03-19) the section: Outline and Chapter 1 Introduction: Global Marketing and the Initiation of Internationalization The different meanings of global marketing Globalization The meaning of the value chain in international marketing Motives for firms going international Triggers of export initiation Export barriers Build-A-Bear Workshop (Case 1.1) 2 (03-26) Part II 3 (04-09) 4 (04-16) Part III 5 (04-23) 6 (04-30) Internationalization Theories/Models Three theories explaining firms internationalization process Uppsala model Transaction cost theory The network model Born Globals and International competitiveness National competitiveness (the Porter diamond) Competition in an industry (Porter s five forces) Value chain analysis (the competitive triangle, competitive benchmarking) Deciding which Markets to Enter Global Marketing Research Relevant data types for assessment of market potential in a country Primary/ Secondary research Political, economic and sociocultural environment Political risk analysis Trade barriers Major trading blocks High- and low-context cultures National cultures (Hofstede) Market Selection and Entry Strategies International market selection Screening of potential markets global product/market portfolio International market selection Screening of potential markets Text : Chapter 2, 3, 4 Text : Chapter 5 Teepack Spezialmaschinen GmbH (Case 5.1) Text : Chapter 6 and 7 Text : Chapter 8 Tata Nano (case 8.1) 7 (05-07) 8 (05-28) International market selection global product/market portfolio Classification of market entry modes Choice of entry mode Export/Intermediate entry modes Text : Chapter 9, 10, 11 Linie Aquavit (case 10.1) Syllabus page 2
3 9 (06-11) Part IV 10 (06-18) 11 (06-25) Preparing the market enty Text : Chapter 18 International HRM: Staffing Training for IBDM Cross-Cultural Sales Negotiations Designing the Global Marketing Program Communication decisions Text : Chapter 17 The communication process Communication tools: Advertising, Public relations, Sales promotion, Direct marketing, Personal selling, Viral marketing Standardization versus adaptation strategies (examples Distribution decisions Text : Chapter 16 Structure of the channel (intensive, selective and exclusive) Managing and controlling distribution channels Most common export documents Internationalization of retailing Grey markets Part V Implementing and Coordinating the International Marketing Program (07-02) Organization and control of the Text : Chapter 19 international marketing program Different organization structures for different international activities Global Account Management Exam Case work in class The course International Business Development is seeking a strong mixture of lecturing as well as case work. Doing so, participants shall take away practical knowledge of how to tackle and solve the challenges of daily business in international marketing in general. Especially the way to solve cases, should help building methodological knowledge. In order to solve the case studies, please take into consideration, that there is no one right solution to a case, there is also no single correct way of preparing a case for class presentation. I recommend to include the following factors as you analyze a case: Step 1 - Situation Assessment: Read the case thoroughly with a view to understanding the key international marketing issue illustrated by the case. Discriminate between information which is relevant and that which is superfluous and/or ambiguous. Select and apply relevant theoretical marketing models. Syllabus page 3
4 Synopsis and evaluation of current situation is important. Be diagnostic, do not merely restate material in case. Assess relevant environmental information, market, and competitors. What are the firm s objectives? Are they financially sound? Provide quantitative assessments, if applicable. What are firm s strengths and weaknesses? Distinctive competency(ies)? Are assumptions and opinions held by management realistic? Step 2 - Defining Problem/Decision Area: Define clearly and concisely the basic problems in the case (some of the questions in this textbook s cases are already formulated, but these questions are only guiding and do not necessarily cover all basic problems). Identify main issues, for example, increased international competition, changes in underlying consumer tastes. Do not be confused with symptoms for example, declining market share, lower profitability. Think of problems as causes and symptoms as effects. Sales decline may be the result of low sales force morale, and thus high turnover rates. These may be due to an inadequate compensation plan, caused by low profit margins, in turn the result of incorrect pricing, and an outmoded distribution system. The decision area must address the cause and not the solution.identify the key decision to be made, for example, how to expand internationally, how to position the product, how to increase international competitiveness etc. Step 3 - Identification and Evaluation of Alternatives: Use the information and facts provided in the case to analyse the situation: The market, demand (buyer) competition, etc. Company strengths and weaknesses, external opportunities and threats (SWOT-analysis). Prepare a list of feasible alternatives. Refine the list. Is the alternative feasible, given financial, productive, marketing, and managerial constraints? Use information from the situation assessment. Will the alternative address the identified problem? Step 4 - Recommended Course of Action: Based on the analysis in 3, identify possible alternative strategy solutions to cope with the problem defined in 2. State the assumptions, which are made in order for the strategies to work. Evaluate the pros and cons of each alternative. This should form the main focus of your attention. Recommend steps to take to solve the problem. State the main reason(s) for your choice. Be specific in your recommendation. Your recommendations won t be complete unless you give some thought to how the proposed strategy should be implemented. This might also include details recommendations on the implementation of the solution, such as: Syllabus page 4
5 - What resources human, financial, or other will be required? - Who should be responsible for implementation? - What time frame should be established for the various actions proposed? - How should subsequent performance be measured? Edit your recommendations based on the latest web information that you can access by going to the company s website. If the case study is made as a written report: write clear, well-structured and convincing reports. Do not limit your analysis to answer the questions that come at the end of each case but take the questions as a guideline to start your analysis. There is no minimum or maximum length of your case analysis. It should be sufficient for an exhaustive analysis of the case and completely examine the sections above. If teams are built and are to present in class, however, try not to take more than 10 minutes for the presentation. Documents for download The Syllabus, the lecture script and the cases are ready for download on the E- learning-platform under Please sign in with your name and your password, and go to lecture International Business Development Management/IBDM (Prof. Dr. Kai Alexander Saldsieder) SS 2012 where you will find all the material. Assessment method The final grade will consist of the following: Exam at the end of the semester (90 minutes): 100% Please note that you have to pass the exam in order to pass the course! The exam will be held during lecture times in the assigned lecture room (if not given other notice beforehand). The exam will contain the theoretical background to International Marketing, but also the content of the case studies. Literature Key literature: Hollensen, S. (2011): Global Marketing : A Decision-Oriented Approach, Prentice Hall Financial Times, 5th edition. Further recommendations: Cateora, P./Gilly, M./Graham J. (2009): International marketing, McGraw-Hill, 14th international edition. Deresky, H. (2008): International Management. Managing Across Borders and Cultures, Pearson international edition, 6th edition. Syllabus page 5
6 Doole, I./Lowe, R. (2008): International Marketing Strategy. Analysis, Development and Implementation, South-Western, 5th edition. Griffin, R. W./Pustay, M. W. (2007): International Business, Pearson international edition., 5th edition. Johansson, J. K. (2010): Global Marketing. Foreign Entry, Local Marketing & Global Management, McGraw-Hill, 5th international edition. Keegan, W./Green, M. (2007): Global Marketing, Pearson international Edition, 5th edition. Mühlbacher, H./Leihs, H./Dahringer, L. (2006): International Marketing, Thomson Learning, 3rd edition Syllabus page 6
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