BUS 420 LON GLOBAL STRATEGY Undergraduate Program

Spring 2015

INSTRUCTOR

Alessandro Lanteri

CLASS TIME Wed & Fri @ 2pm – 5.50pm

CLASSROOM

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EMAIL alessandro.lanteri@faculty.hult.edu

OTHER CONTACT INFORMATION

OFFICE HOURS ROOM:

MON TUE WED THU FRI 1pm - 2pm 1pm - 2pm 1pm - 2pm

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CONTENT This course, the required final-year course for all students, builds on and integrates previous coursework in the functional areas of business decision making. Rather than focusing on day-to-day management problems, it emphasizes long-range policy formation and the implementation of global strategy, approached from the perspective of top management in different types of firms: international profit-making corporations, public corporations, and not-for-profit organizations. To build students’ appreciation of the global environment in which businesses operate, the course develops a general model for the analysis of global business situations, and gives students the opportunity to practice the skills of analysis and decision making. The topics covered may encompass a wide range of issues, including internationalization and globalization; the challenges of multi-national enterprises; market entry strategies; sources of national competitive advantage; national cultures and cross-cultural management; and strategy implementation issues in a global context.

OBJECTIVES In this course, we seek to expand your global mind-set and provide you with theories, knowledge and practical tools that you can use to achieve success in the global business environment. We explore global business analysis, objectives and strategies of global businesses. The first section of the subject discusses motivations and models for international expansion. After reviewing the concept and impact of globalization on company performance, we look into the motivations for internationalization and how a company exploits its home base or the world for advantage and superior performance. In parallel, we explore the process of internationalization, recognize its many challenges and the specific choices available to management to overcome such challenges, and how these have evolved over time. The second section of the subject focuses on company-level strategy and related organizational capabilities. First, we examine how firms may shape different global business models. We then consider the choices posed by global integration, local adaptation and worldwide learning and how these choices impact local and global performance. We end with the topic of innovation in multinational companies, in particular by observing the added value of global innovation.

SPECIFIC LEARNING OUTCOMES On completion of this course, students should understand and be able to do the following:

1. Build your knowledge and skills related to managing in a global context. This implies gaining an understanding and appreciation of global strategic issues that are relative to managing global contexts.

2. Demonstrate mastery of specific course concepts and apply them in exercises in realistic organizational situations. The study of global strategy involves learning many concepts which you are expected to master and being able to apply and relate to global contextual settings. Case studies covering global strategy issues and group presentations will provide students the opportunities to apply learned concepts.

3. Practice critical and creative thinking, problem solving, team work and communication skills in a global context. Students are expected to be able to analyse, critique and recommend and justify recommendations and strategies through individual and group presentations’ relative to global strategic issues.

TEACHING AND LEARNING The teaching and learning strategy is intended to promote sound understanding of theory and how it can be applied in practice. The course will provide a holistic view of strategy in a global context. Key concepts will be introduced and a range of live examples and business cases will be used to demonstrate the application of the theoretical concepts.

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Class exercises will consist of both individual and group work based on problem solving and self assessment questions. Tasks will provide students with the opportunity to develop critical and practical problem solving skills. Case Studies will provide the stimulus for discussion of entrepreneurship and innovation issues. Guest lecturers will provide live case studies and awareness of future opportunities for the future. Students will be required to play an active role in discussing the concepts and examples presented in class. Attendance and participation is a major component of the final grade (see below). Therefore, active and meaningful participation is expected and will be rewarded.

METHOD AND WEIGHTING OF ASSESSMENT

In-class Tests – 40%

Group assignment – 40%

Attendance and participation – 20%

Assignment: In-class Tests (Closed Book) Due Date: Week 3 and Week 4 Weighting (% of final grade): 40% (20% each) Learning Outcome(s) Assessed: 1, 2 & 3 Description of Assignment: a mix of multiple choice questions and short, open questions, covering the entire material of the course (Including the material covered in the in-class tests). These tests effectively replace the final exam and will be managed accordingly. Grading Criteria (what constitutes a good assignment?): MCQ will test knowledge and open questions will test understanding and application. MCQ: correct answers OQ: correct answers, structure, argument Assignment: Group project Due Date: Exam Week (TBC) Weighting (% of final grade): 40% Learning Outcome(s) Assessed: 1, 2 & 3. Description of Assignment: We have a corporate client (Ca’puccino, http://www.ca-puccino.com), which will present some of its current global strategic challenges. Students will be assigned to teams and asked to prepare a report (25% of the grade) and a presentation (15%) that addresses such challenges and proposes solutions. During the exam week, students will present their case studies to the representatives of Ca’puccino. Grading Criteria (what constitutes a good assignment?): The grade will depend mostly on how clearly and thoroughly the challenge is analysed and a solution devised and proposed. Reference to the concepts and theories discussed in class is required.

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Assignment: Attendance and Participation Due Date: n/a Weighting (% of final grade): 20% Learning Outcome(s) Assessed: all. Description of Assignment: Please refer to ‘teaching and learning’ above. Grading Criteria (what constitutes a good assignment?): frequency and quality of contributions to class discussions, case studies and other activities (70%); professionalism and conduct (20%); attendance and timeliness (10%).

Evaluation Criteria

Description Letter Grade Outstanding A

A-

Good B+ B B-

Acceptable C+ C

Inadequate C- D+ D

Failing F

SPECIAL POLICIES FOR THIS COURSE Attendance Rule Please be informed that the instructor is required to take attendance in accordance with the United Kingdom’s immigration legislation as well as with Hult academic policies. The instructor is therefore required to record who is or is not present in each class - without regard to whether the absence is justified or not. For issues such as justifying absences, please contact the Deanery or the Registrar. Please be also informed that the instructor will take attendance - at least once - within the first ten minutes of each class. Students who arrive ten (or more) minutes late will be counted absent for the entire class. Sometimes the instructor will also take attendance at a later time during a class. Please be reminded that, if a student is absent at any moment of taking attendance, she or he will count absent for the entire class.

Meeting with the instructor If you need to talk to me, come meet me at the beginning or at the end of a class (or send me an email) and we’ll agree on a mutually convenient meeting time. Otherwise, just come to my desk during my office hours.

ESSENTIAL READING Philippe Lasserre (2012), Global Strategic Management, 3rd Edition. Paglrave

RECOMMENDED READING

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Sumantra Ghoshal, “Global Strategy: an organizing framework.” Strategic Management Journal (1987), pp. 425-440. Guillén, M. 2006. Understanding and Managing the Multinational Firm Ghemawat & Hout (2008) Tomorrow's Global Giants? Not the Usual Suspects, HBR “Winning the Globalization Game” HBR 2003. Michael E. Porter, “The Competitive Advantage of Nations” HBR, 1990. Ghemawat, Pankaj (2007). Redefining Global Strategy: crossing borders in a world where difference still matters. Cambridge, MA: Harvard Business Review Press. Peng, Mike (2008). Global Strategy. Cincinnati, OH: Thomson South Western. Tallman, Stephen (2008). A New Generation in International Strategic Management. Northampton, MA: Edward Elgar. Luthans, Fred and Jonathan Doh (2009). International Management: culture, strategy and behavior. New York: McGraw-Hill. Finkelstein, Sydney, Charles Harvey and Thomas Lawton (2007) Breakout Strategy: meeting the challenge of double-digit growth. New York: McGraw-Hill

OTHER SOURCES OF INFORMATION http://knowledge.insead.fr The database of INSEAD Knowledge under the category of Globalization http://www.businessweek.com/mediacenter Business Week – Globalization http://www.mckinseyquarterly.com McKinsey Quarterly – Globalization http://www.nato.int Provides information on the North Atlantic Treaty Organization (NATO), including its 19 member countries, its organization and values. http://www.wto.org Provides information about the WTO http://www.imf.org Provides statistics and papers from the International Monetary Fund (IMF) http://data.worldbank.org World Bank data online http://www.unctad.org UNCTAD data, particularly the World Investment Report section http://www.oecd.org OECD resources http://epp.eurostat.ec.europa.eu European Union data http://www.forbes.com/forbesglobal Forbes Global Magazine online, with a section on companies and strategies http://harvardbusinessonline.hbsp.harvard.edu Harvard cases and Harvard Business review reprints http://www.atkearney.com A. T. Kearney consulting http://www.euromonitor.com Provides industries data http://www.strategic-alliances.org Association of Strategic Alliance Professionals http://banker.thomsonib.com Provides statistics on M&As http://www.bain.com/publications/capability-insights/mergers-and-acquisitions.aspx Bain & Company publications

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http://www.doingbusiness.org/rankings Ease of doing business from the World Bank http://www.weforum.org/issues/global-competitiveness Global competitiveness ranking http://www.business-insights.com Provides industries and countries data http://www.prsgroup.com Country risks reports online http://www.ihs.com/products/global-insight/index.aspx Country risk classification http://www.coface.com/CofacePortal/COM_en_EN/pages/home/risks_home/country_risks From the French export insurance company http://www.datamonitor.com Market research http://www.gartner.com/technology/home.jsp IT data information http://www.forrester.com/rb/research Technology research http://www.nsf.gov/statistics/seind06/c4/c4s6.htm National Sciences Foundation http://www.international-business-center.com/international_culture.html Not-for-profit http://www.cyborlink.com On business etiquette http://www.globalnegotiationresources.com List of books on negotiations http://www.ipma-hr.org A link to the International Personnel Management Association http://www.expatriates.com Community website created for and by expatriates http://www.internations.org International online network for people who live and work abroad http://www.euromoney.com Global financial information http://www.euroweek.com/Default.aspx Euroweek provides information on the global capital markets spanning Asia, the Middle East, Europe, Africa and the Americas http://www.securities.com Business information on emerging markets http://www.emergingmarkets.com List of websites devoted to emerging markets http://www.corpwatch.org Corpwatch’s Globalization and Corporate Rule website, which covers the institutions that are the agents of globalization http://www.unmillenniumproject.org/ The Millennium Project website https://www.cia.gov/ The Central Intelligence Agency website

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COURSE SCHEDULE WEEK ONE March 30 - April 3 Class 1 The Globalization of Markets and Competition

• Drivers for globalization and localization • Effects of globalization • Costs of globalization • Ant-globalization movement

Ch. 1 of the textbook, Additional Readings, Case Studies

Note: No class on Good Friday WEEK TWO April 6 – April 10 Class 1 Fundamentals of global strategy

• Approaches to strategy development • International, Multinational and Global strategy • Benefits and costs of global strategy • Resources in developing a global strategy • Introduction to sustainable competitive advantage • TOWS Matrix analysis • Porter’s 5 Forces analysis • Value proposition and strategic fit • Activity system analysis • Resource-Base View approach to strategy development (RBV) • Basis for competitive advantage

Ch. 2 (and parts of Ch. 3 & 4) of the textbook, Additional Readings, Case Studies

Class 2 Assessing the attractiveness of countries and markets

• Key considerations in analyzing markets • Porter’s diamond model • PESTLE Analysis • Country specific information requirements

Ch. 6 of the textbook Additional Readings, Case Studies

• This week we will have the client presentation for team projects

WEEK THREE April 13 – April 17 Class 1 In-class Test and Group work

• Teams will be able to sit together and work on their group projects. • First In-class Test (Ch. 1, 2, 3 & 4 – Ch. 6 is covered in the second test)

Class 2 Entry strategies

• Why enter a foreign market? • When to enter a foreign market? – first mover, follower, acquirer • How to enter a foreign market? – exporting, licensing, mergers, joint ventures,

strategic alliances, acquisitions • Key considerations in choosing entry method: Paliwood’s 6 Factors

Ch. 7 (and parts of Ch. 4 & 5) of the textbook Additional Readings, Case Studies

WEEK FOUR April 20 – April 24

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Class 1 In-class Test and Group work

• Teams will be able to sit together and work on their group projects. • Second In-class Test

Class 2 Global Marketing

• Consumer behavior and global segmentation • Product standardization • Global branding • Global market positioning

Ch. 8 of the textbook Additional Readings, Case Studies

WEEK FIVE April 27 – May 1 Class 1 Global Operations and Innovation

• Global value chain • Porter’s Value Chain • Sourcing, outsourcing, offshoring • Global logistics • Global product life cycle • R&D and Innovation

Class 2 Make up, Revision and Field Trip

• At some point during a short and condensed course like this, we will most likely experience a slowdown or a delay. This class is designed to catch up. Should this not be necessary, we will have a revision for the final exam and a field trip to one of the stores of our client.

EXAMS May 4 – May 8 TO BE SCHEDULED

• Group presentations with the client

ATTENDANCE, PARTICIPATION

AND STUDENT RESPONSIBILITIES ATTENDANCE Classroom attendance is a vital ingredient in the School’s mission to foster an effective learning environment for its students. Any time a student is absent from class, for whatever reason, the instructor is required to record the absence, both for Immigration purposes and for School regulations. Here are the rules regarding attendance in undergraduate classes: Classes timetabled 4 x 2 hours A student must attend at least 70% of all scheduled class sessions. If attendance drops below this percentage because of excused or unexcused absences, the student will be withdrawn from the course. In practice, this means that in our Spring Term with 20 class sessions (total of 40 hours) across five weeks, a student must be withdrawn as soon as the total number of absences reaches 7 sessions. Note that absences during add/drop period nevertheless count towards the 70% calculation once a class is joined. Classes timetabled 2 x 4 hours A student must attend at least 70% of all scheduled class sessions. If attendance drops below this percentage because of excused or unexcused absences, the student will be withdrawn from the course. In practice, this means in our that Spring Term with 10 class sessions (total of 40 hours) across five weeks, a student must be withdrawn as soon as the total number of absences reaches 4 sessions. Note that absences during add/drop period nevertheless count

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towards the 70% calculation once a class is joined. The Withdrawal Deadline No withdrawals will be permitted, by either the student or the Instructor, after the Withdrawal Deadline. The Withdrawal Deadline is at the end of Week 4 of teaching in each term of 5 weeks. (For the Spring term this is April 24th.) Where Absence Results in Missed Deliverables Where an absence results in a missed exam, test, presentation, essay, or any other assignment, the assignment will receive a grade of zero (F) unless the absence is defined as ‘excused’. (See below.) Definition of Excused Absence An excused absence is given in cases of verifiable illness or documented personal distress, such as the death of a close family member. The Program Team must approve all excused absences. The student must complete the cover form online at http://my.hult.edu/en/campuses/london-bachelors/forms/excused-absence-request/. If possible, s/he should also notify the instructor of the absence. Upon returning to School, the student must bring supporting documentation (eg. medical document) to the Deanery on the second floor. If the excused absence is authorized, and if the absence has resulted in a missed assignment, it is the student’s responsibility to contact the instructor to find out how s/he can make up that missed work. 10 Consecutive Days Rule For students on a UK student visa the United Kingdom’s immigration legislation states that, unless the student has communicated genuine mitigating circumstances to his or her place of study, if a student misses 10 consecutive working days of classes, Hult must inform the United Kingdom Border Agency (UKBA) that the student is breaching the terms of his or her visa. For this reason Hult requires students to ensure that they notify us of any mitigating circumstances if they anticipate being away from class for 10 consecutive days or more, so that they are not reported to the UKBA.

MAINTAINING THE LEARNING ENVIRONMENT Certain behaviors disrupt class, such as a student arriving late, a phone ringing, a student leaving in the middle of class, etc. Instructors have the authority to decide policies for their classroom regarding these and similar behaviors that may disrupt the learning environment. All members of the class are expected to respect the learning environment and the instructor’s efforts to maintain it. Repeat offenders will be reported to the Dean and may be withdrawn from the course.

PARTICIPATION Students are expected to participate orally in seminars and online in forums and discussions on myCourses in a critical and evaluative manner; to approach instructors and fellow students with respect and tolerance; and to actively engage in debate, while avoiding derogatory or inflammatory comments on the cultures or attitudes of others in the class.

WORKLOAD FOR EACH COURSE In line with US Department of Education regulations on credit hours, the syllabus is based on a total time commitment of 135 hours per 3-credit course. At Hult this breaks down into 40-45 hours of formal class contact, and 90-95 hours of out-of-class work (reading, studying, preparation, writing). At different times of the term, the workload will naturally vary to some extent, and students are responsible for managing their changing workload accordingly.

ACADEMIC INTEGRITY Any work submitted by a student in this course for academic credit must be the student's own work. If you present, as your own idea, any material copied, paraphrased, or extensively drawn upon, you are plagiarizing—unless you give full citations for your sources. Of course, you may make full use of ideas, arguments and information obtained from books etc. but you

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must make clear in a footnote or other appropriate documentation format whose work you are drawing on. Every case of plagiarism will be reported to the Academic Standards Committee. The student may fail the course or, in extreme cases, be dismissed from Hult. See the section entitled “Academic Integrity” in the Student Handbook for full information about the process.

You are responsible for ensuring that you have read and understood the section entitled “Academic Integrity” in the Student Handbook. If you have any questions about that material, please speak to your instructor.

Helpful Resources 1. You quote it, you note it! An interactive tutorial guide on how to avoid plagiarism and how to cite sources: http://library.acadiau.ca/tutorials/plagiarism/ 2. PlagiarismdotOrg. An anti-plagiarism resource for both students and educators: http://www.plagiarism.org/

ACCOMMODATING SPECIAL NEEDS The School promotes equal opportunity for all its students, and strives to deliver reasonable academic accommodations to students with special needs. A reasonable accommodation is a modification or adjustment to a course that enables a student with a disability to obtain the same access as experienced by students without disabilities. An accommodation is considered reasonable only if it does not significantly alter the essential components of a course. In order to receive disability-related academic accommodations, students must provide the Registry, before the start of the term or during orientation, with medical evidence authorizing special accommodations and indicating the type of disability and types of accommodation requested. These accommodations should then be discussed and agreed upon with the Registry and Program Team (Associate Dean), who will review syllabi for the current term, and communicate approved accommodations to the instructor of each course. Students must complete the Reasonable Accommodation Request From and hand it to the Registry accompanied by their medical evidence. The form can be found at http://my.hult.edu/en/campuses/london-bachelors/forms/reasonable-accommodation-request-form/ Accommodations are not provided retroactively; therefore, planning for accommodations at the beginning of the term is required.