The Ohio State University Emerging Markets Global Lab (EMGL) - Panama Business Administration 4798 Autumn Semester 2013 Professor: Mr. Tim Sword Class time: Mondays 5:30 to 7:00 p.m. Email: sword.3@osu.edu Phone: 614-563-1932 Office hours: By appointment only Class room: Schoenbaum 319 The Emerging Markets Focus This course aspires to be a challenging educational adventure to help prepare students for careers that involve international business by developing an enhanced understanding of emerging markets with an emphasis on Latin America, specifically focusing on Panama. The adventure begins in the classroom where the aim is to create a dynamic exchange of ideas through round tables to examine unique characteristics of emerging markets. We will focus on how to gather market intelligence to enhance a company’s ability to navigate in these new markets. Numerous invited guest professionals will enhance our discussions by bringing their real world experiences, insights and adventurous tales about doing business in Panama and other Latin American markets to our class. The experience culminates with the December study business mission to Panama where we will see, smell, taste and touch first-hand the unique characteristics of a fascinating emerging market. Beyond the interesting in-country company visits being planned, we will also witness the expansion of the Panama Canal, have the opportunity to ride in a Diablo Rojos, shop in local grocery stores and see the waters of both the Atlantic and Pacific oceans and much more! The Export Process Focus Increasingly more small and medium-sized U.S. companies are pursuing international exports to grow their business and sometimes to save their company. Many of these companies are discovering the fastest growing middle class populations and the best opportunities to find new customs are located in emerging markets. In order to compete and succeed in emerging markets, companies must develop new skills, capabilities and strategies in order to capture new markets. This also signals emerging and fascinating career opportunities for students and professionals who develop skills in order to offer companies solutions and knowledge of how to do business in emerging markets. . Course Objectives This course has several objectives including: 1) Demonstrate an understanding of Emerging Markets and the potential implications for U.S. exporters and local businesses. 2) Examine cultural differences of doing business within Latin America. 3) Assess how U.S. companies export products to international markets by studying the Global Entrepreneur text book and applying knowledge in a Panama market study and recommendation report to present to a real life local company. 4) Analyze a particular business in Panama. 5) Examine challenges companies face doing business in Panama while attempting to bridge the gap between theory and practice. Course Materials Required: The Global Entrepreneur: Taking Your Business International by James F. Foley; Jamric Press International- Second Edition The Supplementary Packet (SP) can be purchased from OSU Bookstore/ B&N Gateway location on High Street exclusively. The packet contains necessary supplemental readings for class room discussion. Recommended: The World is Flat by Thomas Friedman; New York: Farrar, Straus and Giroux, Expanded Edition c2006, ISBN 0-374-29279-5; Read Chapter 10- “The Virgin of Guadalupe” Latin American Business Cultures by Robert Crane & Carlos Rizowy; Pearson Prentice Hall; 2005; ISBN 0-13-067048-0 Other Resources: U. S. Department of Commerce. http://export.gov U. S. Department of State. http://www.countryreports.org/ Food Export Association of the Mid-West, “Exporting Primer”: http://www.foodexportalliance.org/eweb/DynamicPage.aspx?Site=MIATCO&WebKey=be50adc d-f78b-4b8a-b27d-a6dca70b9f95 Foreign Agricultural Service, U.S. Department of Agriculture, export section: http://www.fas.usda.gov/agx/exporter_assistance.asp Global Agricultural Trade System (GATS), Foreign Agricultural Service: http://www.fas.usda.gov/gats/default.aspx BICO (Bulk, Intermediate, and Consumer-Oriented) reports and trade statistics. Global Agricultural Information Network: (Includes reports from foreign ag’l attaches) http://gain.fas.usda.gov/Pages/Default.aspx The Study Mission to Panama “We do not take a trip; a trip takes us” –John Steinbeck from Travels with Charley: In Search of America This course includes a mandatory, one-week business study trip to Panama City from Friday, December 13 to Friday, December 20, 2013. Please make certain your calendar is clear as there is no flexibility on the dates. Since the trip is a fundamental part of the course, please understand that there will be assignments representing an important portion of your grade that follow this travel week. “Without new experiences, something inside of us sleeps. The sleeper must awaken.” – Frank Herbert The trip to Panama includes visits to up to five companies/organizations being studied. There will be additional activities involving sightseeing and additional time to pursue your personal interests. Each company visit will involve a plant tour, a presentation by business executives from the company and a Q & A session. The purpose of the field trip is to conduct first-hand research on the strategic management to balance the learning acquired during our classroom discussions. “To travel is to discover that everyone is wrong about other countries.” — Aldous Huxley An important lesson to learn is that whether you travel for business or school you no longer only represent yourself. On this study mission I consider you an ambassador of the USA and The Ohio State University. My expectation is that everyone will conduct themselves accordingly. This includes being on time for all scheduled activities and an engaged participant during all meetings, tours and visits. “A trip…is an entity, different from all other journeys. It has personality, temperament, individuality and uniqueness. A journey is a person in itself; no two are alike.” John Steinbeck from Travels with Charley: In Search of America I have traveled to 25 countries on behalf of the State of Ohio and have had the pleasure (and rare displeasure) of traveling with many individuals. The most pleasant travel companions are appreciative, on-time, courteous, respectful, patient, flexible, and thoughtful. The absolute most important travel trait in my experience is curiosity. People who are highly curious typically have the best travel experiences because they are interested in observing and experiencing everything. This allows them to go with the flow and expand their own personal experiences. “A journey is like a marriage. The certain way to be wrong is to think you control it” –John Steinbeck from Travel with Charley: In Search of America Grading A substantial portion of each student’s grade will be derived from activities and work performed as a group and team. These groups/teams of students will be organized by the instructor with an objective of achieving cultural, gender and educational diversity. DESCRIPTION PERCENTAGE (1) Participation and attendance * 30% (2) Tim’s Ten (Quizzes/Presentations) 20 % (3) Group Report- Scope of Work Proposal 10 % (4) Team presentation Panama Company briefing ** 10 % (5) Group/Individual Assignments 15 % (6) Final Group presentation 15 % ____ TOTAL 100% * Some portion of these elements will be earned in Panama ** Half of this score will be calculated from Peer Review evaluation. Points 100 to 93 92.99 to 90 89.99 to 87 86.99 to 83 82.99 to 80 79.99 to 77 76.99 to 73 72.99 to 70 69.99 to 67 66.99 to 60 59.99 and below Letter Grade A AB+ B BC+ C CD+ D E Attendance Due to the frequency of the class and the format of interdependent learning of all participants in this course, absences of class cannot be made up. If it is necessary for a student to miss class, the instructor should be notified at least 24 hours in advance. Students will be required to meet with the instructor prior to the next class meeting, but only a portion of the participation points can be made up. Students who leave class early or arrive late will also have participation points deducted from their grade. Students who miss two classes will be penalized one letter grade and an additional letter grade after each additional class missed. ACADEMIC MISCONDUCT Any material submitted for course credit must be: (1) ONLY your own work if it is an individual-based assignment; (2) ONLY the work of your team if it is a group-based assignment. Academic misconduct is a serious threat to the integrity and value of your degree. Such behavior will not be tolerated by your instructor or classmates. 1. Suspected cases of academic misconduct must be reported to the University Academic Misconduct Committee, per OSU guidelines. 2. Typical penalties include an E in the course and disciplinary probation for a first offense and dismissal from the University for a second offense. 3. Please review and refer to the Office of Academic Affairs website: http://oaa.osu.edu/coam/home.html ADDITIONAL CONSIDERATIONS If you need an accommodation based on the impact of a disability, please arrange an appointment with me as soon as possible. We need to discuss the course format and your individual needs. I rely on the Office for Disability Services for assistance in verifying need and in developing accommodation strategies. In addition, this course includes a one week trip to Panama City. If you require special arrangements for health or dietary considerations, please make these known as soon as possible. There are activities that require some physical exertion. Please feel free to meet with me at any time to discuss any concerns or issues about the course, travel arrangements, or your individual performance. LECTURE SCHEDULE “Readings” may be found in the Supplemental Packet (SP) or within Carmen CONTENT and are subject to change to make the course material more timely and relevant. I welcome any additional ideas for this list based on your own work during the course. Therefore, the following schedule is not a contract, only a guideline. Lectures may proceed faster or slower than indicated, but there will be NO CHANGE to ASSIGNMENT due dates. It is your responsibility to monitor the class progress and to prepare accordingly. Much of the classroom discussion and Tim’s Ten will be heavily based on assigned reading for that particular class. It is imperative that you read the assigned reading before they are introduced in class. Above all, keep up to date. Class Schedule (Tentative) Session 1 8/26 Who? Lecture: Welcome and introduction: Review syllabus; the role of CIBER; instructor and student introductions, schedule interview. INDIVIDUAL ASSIGNMENT 1: Schedule a thirty-minute one-on-one interview with Tim Sword for either the afternoon of Friday, August 30 or the afternoon of Monday, September 9. What is your current understanding of the term Emerging Markets? 9/2 NO CLASS- LABOR DAY HOLIDAY!! Session 2 9/9 Why? Lecture: Discussion about Why Export? And Why consider exporting to emerging markets?; Announce configuration of Company Project Groups. INDIVIDUAL ASSIGNMENT 2: Conduct independent research and prepare and present a 3-5 minute presentation titled “My Understanding of Emerging Markets: One Week Later” Read: Summary- Why Emerging Markets? Read: Foley, Ch. 1 “Why Go Global” and Ch. 3 “Harmonized Codes” Read: Ohio Export Statistics 2012 http://development.ohio.gov/research/documents/b2004.pdf Session 3 9/16 Where? Lecture: Researching New Markets and further defining Emerging Markets Invited Guest Speaker: TBD INDIVIDUAL ASSIGNMENT 3: Upload to Carmen by noon on Thursday, September 12 a current news article (published in the past nine months) that supports why U.S. exporters may want to consider expanding into Emerging Markets. Accompanying this article write a short justification about why you selected this article and how it applies to our studies of Emerging Markets. I will select one or two article to discuss in class. INDIVIDUAL ASSIGNMENT 4: Read all other student posted articles and justifications before class to be prepared to discuss each of them. Note: These articles will likely be source material for a Tim’s Ten. Read: “Exploring Export Options” Food Export Assoc. of the Mid-West: http://www.foodexportalliance.org/eweb/DynamicPage.aspx?Site=MIATCO&WebKey= be50adcd-f78b-4b8a-b27d-a6dca70b9f95 Read: Foley, Chapter’s 4, 5, and 6. “International Product Success, Selecting Foreign Markets, and Sources of Data” Session 4 9/23 What? Lecture: Defining ‘Emerging Markets’ Invited Guest Faculty: GROUP ASSIGNMENT 1: Develop and upload to Carmen by noon on Wednesday, September 18 a list of questions to ask companies during initial company interview. Be prepared to discuss each group’s questions in class. GROUP ASSIGNMENT 2: Prepare and present a five minute presentation about how your group is organizing and progressing on your company project. (Each team member should speak during the presentation.) INDIVIDUAL ASSIGNMENT 5: Bring all forms for CIBER office (copy of flight itinerary, copy of passport, copy of HTH form, copy of Health Form) Read: Summary- “Does Adversity in Emerging Markets..…” (SP) Read: “When are Emerging Markets no longer Emerging?” Wharton (SP) Read: “Five Myths about Emerging Markets” HBR (SP) Session 5 9/30 The Panama Canal Lecture: The Panama Canal; Assign Panama Company visit briefing presentations Video: “A Man, A Plan, A Canal” – a 50 minute PBS video narrated by David McCullough (author of JOHN ADAMS) that recounts the construction of the Panama Canal, including remarkable archive footage. Read: “The Wonder Story of the Panama Canal”, Popular Mechanics, 1913 (NOT a typo!) (SP) http://media.popularmechanics.com/documents/PopMechDecember1913.pdf Read: “A Man, A Plan, A Canal: Panama Rises”; Smithsonian, March, 2004 (SP) Session 6 10/7 Student Group Presentations Lecture: Student Presentations: Company overview and detailed proposed scope of work for company consulting projects. (Presentations should be between 15-20 minutes) (This presentation counts for 10% of each student’s grade.) Invited Guest Panel: TBA GROUP ASSIGNMENT 3: Prepare and present a presentation about your company, including product, export experience, your group meeting and proposed scope of work. Class will include time for instructor, guest panel and student feedback including the scope of work discussion. Session 7 Logistics 10/14 Lecture: The Panama Canal Expansion and what it means for Ohio and U.S. Invited Guest speaker: Mark Locker, Ohio Department of Transportation to discuss the potential impact of the 2014 expansion of Panama Canal on Ohio and U.S. trade. GROUP ASSIGNMENT 4: Upload on Carmen by noon Wednesday, October 3 the updated scope of work for the final project. Read: “Logistics and Physical Distribution” Food Export Assoc. of the Mid-West: http://www.foodexportalliance.org/eweb/DynamicPage.aspx?Site=MIATCO&WebKey= be50adcd-f78b-4b8a-b27d-a6dca70b9f95 Read: Foley, Ch. 14 “Logistics” Session 8 Legal 10/21 Lecture: Country Risk and Legal Considerations in Latin America Invited Guest speaker: Luis Alcalde, Kegler, Brown and Ritter, Columbus, Ohio Read: “Note on Country Risk & Competitive Advantage in Latin America”, Ivey (SP) Read: Foley, Ch’s 12 and 13 “Legal, Tax, and Accounting” Session 9 International Pricing 10/28 Lecture: Sales and pricing and Group update presentations Invited Guest speaker: TBD GROUP ASSIGNMENT 5: Prepare and present a 5-7 minute presentation on company project status. Read: Glitter and Graft”, The Economist (SP) Read: “The Poor Relation- Colon”, The Economist (SP) Read: Foley, Ch. 11 “International Pricing” Read: “The Export Marketing Mix” Food Export Assoc. of the Mid-West: http://www.foodexportalliance.org/eweb/DynamicPage.aspx?Site=MIATCO&WebKey= be50adcd-f78b-4b8a-b27d-a6dca70b9f95 Session 10 11/4 Culture Lecture: Business Culture in Latin America and the USA from the Latin Lens Invited Guest Panel: TBA Background Reading: Reading: Summary- Cultural Categories “Hofstede’s Cultural Dimensions & Geert Hofstede Analysis - Panama” (SP) Session 11 Panama 11/11 Lecture: Panama INDIVIDUAL ASSIGNMENT 6: Locate and post on Carmen by noon on Wednesday, November 6 a current news article (published in the past twelve months) that better informs and prepares our class to travel to Panama. Accompanying the article write a short justification about why you selected this article and how it applies to our trip. I will select one or two article to discuss in class. INDIVIDUAL ASSIGNMENT 7: Read all student posted articles and justifications before class and be prepared to discuss any of them. Note: These articles may be source material for a Tim’s Ten. Guest speaker: TBA Read: “Country Fact Sheet: Panama” (SP) Read: “The United States Contributes to Economic Prosperity in Panama” (SP) Session 12 Panama Company Visit Briefings 11/18 Lecture: Panama Overview Continued. Company Report Presentations PANAMA TEAM ASSIGNMENT 1: Upload to Carmen by noon on Monday, November 18 company research reports, INCLUDING a separate one-page summary for the travel packet PANAMA TEAM ASSIGNMENT 2: Prepare and present a 15-20 minute presentation to brief the rest of the class about the Panama company visit you were assigned. (Special Note: I encourage you to create professional, enthusiastic, creative and unique presentations. Challenge yourself to make it interesting!! Strive to make your fellow classmates to want to learn more. Visit ted.com for inspiration.) INDIVIDUAL ASSIGNMENT 8: Individual Peer Evaluations due (Form will be handed out to class) Comment- At the end of each presentation, we will reserve some time for a brief discussion or Q&A session to address: • Were any sections or facts confusing? • Was information missing that might be helpful? • What questions or additional information should be addressed during the actual visits? This is not designed as a critique but rather a way to use outside viewpoints to reinforce the clarity and completeness of your work. Session 13 Panama Company Visit Briefings 11/25 Company Report Presentations (continued from previous class). Session 14 12/2 CIBER Panama Travel Briefing Lecture: Review and Summary CIBER presentation on trip arrangements & travel packet handout Discussion: Trip expectations and recommended preparation Course Evaluation is online only 12/9 Final Due! 12/13 to 12/20 Panama Study Mission Panama Study Mission