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THE UNIVERSITY OF NORTH CAROLINA AT GREENSBORO Joseph M. Bryan School of Business and Economics

MANAGING IN A GLOBAL ENVIRONMENT MBA 616-11

SPRING 2009

Wed 6:30-9:20 PM Bryan 206

1 GENERAL INFORMATION 1.1 Contact Information

Professor: Dr. Riikka M. Sarala Office: 348 Bryan Phone: 334-5457 (e-mail preferred) Office Hours: Wed 5:00-6:00 PM and by appointment E-mail: rmsarala@uncg.edu

1.2 Pre-requisites Pre-requisites: MBA 604 (Organizational Behavior), MBA 605 (Financial Management), MBA 606 (Marketing Management), MBA 607 Operations Function) Co-requisite: MBA 613 (Economic Policy and the Global Environment) 1.3 Course Material

Textbook: Fatehi, K. (2008) Managing internationally: Succeeding in a culturally diverse world. Sage Publications. ISBN: 978-1-4129-3690-3

Additional cases: Distributed in class

Additional readings: Distributed in class 1.4 Course Description This course examines the environmental, cultural, political, legal and operational challenges facing managers in doing effective business across international borders.

1.5 Learning Objectives LO1: Describe the structure of the global economy “players” in the economy LO2: Identify the key ethical and environmental issues with international business. LO3: Indicate the cultural factors of management styles and HRM policies. LO4: Describe the public policy and political factors and operating in a foreign country. LO5: Describe the legal and opportunities or barriers for multinational companies. LO7: Describe the pros and cons of various (Session 6) 1.6 Course Structure

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structure of the global economy and the perspectives of the various economy. (Session 2)

key ethical and environmental issues that are typically connected international business. (Session 3)

cultural factors that should be taken into account in the determination styles and HRM policies. (Session 4)

public policy and political factors that can affect the risks of entering operating in a foreign country. (Session 5)

legal and technological environmental factors that creaopportunities or barriers for multinational companies. (Session 5)

LO7: Describe the pros and cons of various methods for entering national markets

and the perspectives of the various

that are typically connected

that should be taken into account in the determination

that can affect the risks of entering

environmental factors that create

methods for entering national markets.

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1.6 Weight of the Grading Items

1. Written analysis of current events 10% 2. Group case presentation 20% 3. Class participation 20% 4. Brief written case analyses 30% 5. Exam 20%

1.7 Grading Scale

Score Grade Score Grade Score Grade 93-100 A 80-82 B- 60-69 D 90 - 92 A- 78-79 C+ Below 600 F 88- 89 B+ 73- 77 C 83- 87 B 70-72 C-

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2 GRADING ITEMS DESCRIPTION 2.1 Written analysis of current events (10%)

You can work individually or in pairs . Choose an article that discusses one of the course topics. The article should be published after March 1st 2009 in Wall Street Journal or in the Economist. You can access both publications on the UNCG library website. Write an analysis of the article that includes:

1. An introduction -In the introduction, discuss how the article relates to the course topics. Make sure to provide an explicit link to at least one of the course topics. 2. An analysis -Critically analyze the article. Be careful to provide more than a summary of the article. Discuss the implications of the issues discussed in the article on international management and discuss similar cases that you have encountered in other contexts (e.g. other countries, previous incidents). 3. An appendix -Include a copy of the original article as an appendix.

The recommended length of the written report is 2-3 pages (not including appendices). Submit a hard copy of your analysis in the beginning of any of the class sessions. No assignments will be accepted after April 22, 2009.

If you want, you can submit more than one current event analysis. The highest grade that you receive will be your current events analysis grade.

The evaluation criteria for the analysis of current events are as follows:

-Structure -The use of subtitles and/or topic sentences -Quality of writing -Flow, clarity, and conciseness -Grammatical correctness and style -Relevance of the article to international management -Link to the course topics -Quality of the analysis -The writer goes beyond summarizing the original article -Additional references used that link to the topic

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2.2 Group Case Presentation 20%

Students have been pre-assigned to groups as indicated on page 10 of the syllabus. The group will lead the case discussion by presenting their analysis to the class. The presentation time per group is 20 minutes. An additional 15 minutes will then be allotted for questions and general class discussions by other students in the course. Each group is required to e-mail the final presentation to the instructor (rmsarala@uncg.edu) no later than 24h before the presentation. You will lose points equal to 10% of the group case presentation if you fail to e-mail the final presentation before the deadline. The presentation should include the following parts: -Outline of the presentation -Analysis -Answers to the case discussion questions -Conclusion Each group will be graded based on the criteria illustrated on the group presentation grading sheet on page 13. Familiarize yourself with the grading criteria before you begin working on your group presentation. The schedule for group case presentations is provided on page 10 of the syllabus.

2.3 Class Participation 20%

In this course I place a special premium on active class participation. Your participation in class is essential to your own learning and that of your peers. Please come to class having read the assigned readings and case(s), and having thought about the assignment questions. Considering the amount of material that we are covering, our class periods are short – hence, please be concise and to the point in making your comments. In evaluating class participation, I will be asking the following questions: 1. Is the participant a good listener? Do the comments link previous contributions and with the overall direction of the discussion? 2. Do the comments reflect careful analysis? 3. Do the comments add to our understanding of the situation? 4. Is there a willingness to try new ideas or are all comments “safe”? 5. Is the participant considerate of other class members? (For example, in making economical use of “airtime”.)

Students begin the course with a course participation mark of 90 and adjustments are made upward for exceeding expectations, downward for falling below expectations and are unchanged for meeting expectations. Expectations are that the student attends classes (one absence is allowed), is respectful of the peer learning environment and voluntarily participates verbally in in-class activities such as case discussions,

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lecture discussions and class exercises. A student who does not participate verbally but satisfies all the other expectations will obtain a maximum mark of 70.

2.4 Brief written case analyses (30%)

You can work individually or in pairs . Answer each of the case discussion questions indicated in the syllabus. Use the question numbers to structure your answer. You can use bullet points. The recommended length of each case analysis is 1-2 pages. Your goal is to show that you have read the case and carefully reflected on each of the case questions. Each case analysis is due in hard copy in the beginning of the session during which the case is being discussed. Late submissions will not be graded. Each case analysis is graded “pass” or “fail”. Grading: 100% : 7 brief case analyses submitted

95% : 6 brief case analyses submitted 90% : 5 brief case analyses submitted 85% : 4 brief case analyses submitted 80% : 3 brief case analyses submitted 70% : 2 brief case analyses submitted Note that each case analysis has to receive a “pass” grade in order to count toward your case analysis grade.

2.5 Final Exam (20%)

There will be a final examination on the last day of class. The exam will be based on a case similar to those covered during the course.

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3 COURSE POLICIES 3.1 Absence

One class absence is allowed. Any further class absence, regardless of the validity of the excuse, will negatively affect your class participation grade. There are no make-up assignments for missed classes. If you miss a class, you should contact your group members to find out what was discussed in class. Read the assigned material and familiarize yourself with the session slides.

3.2 Academic Integrity

Participants are expected to recognize their responsibility to uphold the Academic Integrity Policies of UNCG: http://academicintegrity.uncg.edu/complete/

3.3 Blackboard The lecture slides are available for download through Blackboard before each session. The participant is responsible for checking Blackboard regularly for course material and announcements.

3.4 E-mail Communication For purposes of this course I will assume that you check your UNCG e-mail daily. Thus, I assume that you will be aware of any communications or requests sent at least 24 hours prior to our class meetings. If you have any questions about UNCG email you can obtain assistance by calling 256-tech during normal business hours or by asking assistance in the Bryan School computer labs.

3.5 Classroom Conduct

The course subscribes to the UNCG professional standards. Please arrive on time for class with uninterrupted attendance for the duration of the class. Please maintain a professional atmosphere: using respectful comments and humor, employing appropriate manners and decorum, utilizing computers and technology suitably (e.g. silencing wireless devices, no web-browsing or emailing), and refraining from distracting or disrespectful activities (e.g. avoiding side conversations and games). Refer to the following for more details on school policies and procedures: http://www.uncg.edu/bae/faculty_student_guidelines.pdf

3.6 Grading Policy Grades are non-negotiable and final grades can only be changed due to incorrect calculation or input errors. If you have questions as to the validity of a grade this must

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be brought to my attention in writing within one (1) week of the day/date the grade is announced.

3.7 Inclement Weather The course follows the directions of the institution. The UNCG will remain open during

adverse weather conditions unless the Chancellor makes the administrative decision to make a schedule change. Students can obtain details on those decisions from the Adverse Weather Line at (336) 224-4400 or the web address:

http://www.uncg.edu/iss/weather.htm

3.8 Laptop Policy Computer use is not necessary in class unless otherwise indicated. Therefore, I strongly suggest no open laptops in class. If you use your laptop for efficiency in taking notes, you must restrict use to this activity only. Surfing, IM and other unrelated use of your laptop is not permitted in class.

3.9 Important Remarks

Please note that the pace of this course is intensive. It covers in 7 weeks what is covered in a typical 16 week semester. Therefore, it is important to dedicate enough time for completing the assignments and reviewing the course reading material. Preparing for a class session takes approximately 3 hours.

The instructor reserves the right to make changes to this document as needed. Changes in the schedule of the course, or in the assignments, are announced during class. Also, materials such as current newspaper articles may be added to increase your knowledge and efficiency in a particular subject area. It is your responsibility to connect with your classmates to ensure that you have received all of the changes, handouts, etc.

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4 CLASS SCHEDULE

Session

Date

Topics

Readings

6:30-7:45

8:00-9:20

Session 1

Mar 18

-Introduction to the course -What is international management?

-CH 1

-Course overview

-Article 1

Session 2

Mar 25

-Globalization

-Article 2 -Article 3 -Special report on globalization

-Theory

-Article 2 & 3 -Special report on globalization

Session 3

Apr 1

-Ethics and social responsibility

-CH 2

-Theory

-Case Bhopal

Session 4

Apr 8

-National cultural environment

-CH 3 -Article 4

-Theory

-Case Euro Disney (Group 1) -Case Kiwi Samurai (Group 2)

Session 5

Apr 15

-Political, legal, and technological environment

-CH 6 (pp. 323-352) -Article 5

-Theory

-Case Air Asia (Group 3) -Case Frank Davis goes to Madagascar (Group 4)

Session 6

Apr 22

-International entry modes -Course evaluations (Bring your laptop!)

-Lecture slides

-Theory

-Case BP (Group 5) -Case Daimler Chrysler (Group 6)

Session 7

Apr 29

-Conclusion of the course -Final exam

-Conclusion of the course

-Final exam

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5 PRESENTATION SCHEDULE Date Case presentations

April 8 Group 1: Case Euro Disney

Group 2: Kiwi Samurai April 15 Group 3: Case Air Asia

Group 4: Case Frank Davis April 22 Group 5: Case BP

Group 6: Case Daimler Chrysler 6 STUDENT GROUPS Note: The instructor reserves the right make changes to the student groups. GROUP 1 GROUP 2 Beerhorst, Martin Cooke, Carroll Yoo, Sun il Wang, You-Hsin GROUP 3 GROUP 4 Nguyen, Chi Phuong Juengel, Meredith Thomas, Sheila Sherwood, Greg GROUP 5 GROUP 6 Lhermet, Sarah Morris, Melanie Narita, Karen Reynolds, James

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7 CASE DISCUSSION QUESTIONS Session 3 Case discussion topic: Ethics and social responsibility of MNCs Case: Bhopal 1. In your opinion, what corporate actions or government policies could have prevented the Bhopal disaster? 2. In your opinion, should global firms have a universal global policy regarding their business operations (including universal safety, labor, and environmental standards)? 3. “Use of hazardous technology in developing countries requires pluralistic involvement by the parties concerned, namely, the corporations, governments, and communities. The three parties are mutually dependent for resources, finances, and information.” Explain this statement, indicating the role of the three parties involved. 4. In your opinion, can developing countries, which are striving to raise the general standard of living of the population, pay attention to the environment to the same extent as developed countries? Should they? Session 4 Case discussion topic: National cultural differences Case: EuroDisney 1. Using Hofstede’s four cultural dimensions as a point of reference, discuss the main cultural differences between the United States and France. 2. Discuss the problems that the company faced in France. Can you explain any of these problems with cultural differences by using Hofstede’s framework? 3. In managing its Euro Disneyland operations, what are the main mistakes that the company made? Explain. 4. Based on its experience, what are three lessons the company should have learned about how to deal with national cultural differences? Describe each. Case discussion topic: National cultural differences Case: Kiwi Samurai 1. Using Hofstede’s four cultural dimensions as a point of reference, discuss the main cultural differences between the United States and Japan. 2. How do the business practices in Japan, as described in the case, compare with those in the United States? Can you explain the differences by using Hofstede’s framework of cultural differences? 3. Why do you think that SecureFit Industries and its chairman, Eion Williams, have been so successful in Japan?? 4. What will Mark Blyth have to do to maintain the business relationships in Japan? How might this differ from what Eion Williams would do?

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Session 5 Case discussion topic: Political environment Case: Air Asia 1. Discuss the opportunities that exist in the Asia-Pacific region for the entrance of new low-cost airlines. How might demand for low-cost service differ in the Asia-Pacific region and in North-America and Europe? 2. Discuss why and how governments could pose an obstacle to the expansion of low-cost airlines in Asia. 3. Compare AirAsia’s strategy with the strategies of Southwest and Ryanair. 4. Did Tony Fernandes weigh the range of political, economic, and operational risks when he took over AirAsia? Are there risks that he may have overlooked? Case discussion topic: International business environment in developing countries Case: Frank Davis comes to Madagascar 1. Illustrate issues which must be dealt with in conducting international business, particularly in developing countries. 2. How would you describe the various skills needed to conduct international business? Explain why these skills are valuable. 3. Jean-Paul has been very helpful in sharing his experiences. How much should Frank rely on

Jean-Paul’s impressions of the country? Why? 4. If Summit Foods decides to go ahead, what should they watch out for?

Session 6 Case discussion topic: International joint ventures Case: BP 1. Discuss the pros and cons of BP’s joint venture strategy in Russia, both short-term and long-term. What challenges has BP faced in its effort to become a major player in Russia? 2. Are there other entry modes that BP could have used to enter Russia? Discuss. 3. Update the case by analyzing recent press coverage on TNK-BP joint venture. Use Wall Street Journal and the Economist as your sources. What problems is BP currently facing in the joint venture? 4. Would you recommend BP to stay put in the joint venture? Case discussion topic: International acquisitions Case: DaimlerChrysler 1. Discuss the operational/strategic problems faced in the DaimlerChrysler merger. Could any of these problems have been predicted and/or prevented? 2. Discuss the human resource related problems faced in the DaimlerChrysler merger. Could any of these problems have been predicted and/or prevented? 3. Discuss the cultural problems faced in the DaimlerChrysler merger. Could any of these problems have been predicted and/or prevented? 4. Update the DaimlerChrysler case: What happened to the merger? What is the current ownership structure of Chrysler? Use The Economist and/or Wall Street Journal as your sources.

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MBA 616 Spring 2009

Group Presentation Grading Sheet

Names ___________________________________________________________________________ Content (max. 60 points)

Clarity (1- 20 points) ________ of language and expression of explanations--easy to follow; make sense business terminology/jargon explained and/or used appropriately Organization (1-20 points) ________ Logical/relevant easy to follow flow Adequacy of coverage (1-20 points) ________ coverage of background information coverage of each of the case question balance between brevity and comprehensiveness sufficient context provided Delivery (max. 30 points) Professional tone (1- 10 points) _______ verbal language and body language composure expression Use of visual aids (1-10 points) _______ suitable quality integrated into presentation convey useful information in a clear and coherent fashion Team effort (1-10 points) equal participation of each group member transitions between parts Ability to handle questions_(max. 10 points) Adequate response (1- 5 points) ________ Appropriate tone (1 - 5 points) ________

Grade ________

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University of North Carolina at Greensboro

Bryan School of Business and Economics MBA 616: Managing in a Global Environment

SPRING 2009 Course Participant Information Form

Please hand-in a hard copy when you come to class on March 18, 2009

1. Your full name

2. The name you prefer to be called

3. Your hometown and country (originally)

4. The program you are in at UNCG

5. Your work experience (company, function, position)

6. Your international experience

7. Your language skills

8. Your motivation and learning goal for this course (other than: “This is a compulsory course.”)

9. Your career goal

10. Your hobbies/interests

11. A little known fact about you Other information that you would like me to know