Syllabus MGT 491/691
Global Strategic Management, Summer 2011
USAC – Bilbao Spain
Instructor:
Office Address:
Phone:
E-mail:
Class Website
Dr. Jim Sundali
MGRS Dept / MS 028
College of Business
University of Nevada, Reno
Reno, NV 89557
775-682-9176
jsundali@unr.edu
http://business.unr.edu/faculty/sundali/
Overview
This class has been designed specifically for the USAC Bilbao, Spain study abroad program. The class has
a similar structure to the required capstone business strategy course offered at most business schools.1
The primary learning objectives of this course are to develop in students the knowledge and skills
necessary to formulate and implement competitive strategies in global markets with an emphasis on
business in the European Union. The course will introduce a set of analytical tools and require students
to master and use these analytical tools in analyzing, evaluating, formulating, and implementing
competitive global strategies. The pedagogy of the class will be a combination of lectures, case
discussions, corporate tours and guest speakers, student presentations, tests and a term paper.
To take advantage of our site location in Spain, there are several unique aspects of this course. First, we
will take weekly field trips to organizations that provide examples of global and multinational business
strategy. Second, we use and develop case studies on the organizations we will visit so that the trips we
take will allow us to significantly deepen our understanding of the organizations global strategy and not
just be tourists on corporate visits. Third, we will take advantage of our location in Spain to study and
understand the differing cultural aspects of business in a foreign country.
Required Readings:
1. Global Strategy, Second Edition. Author: Mike Peng. Publisher: South-Western Cengage
Learning.Peng - ISBN-13: 9780324590999
 Marketing blurb about the book - GLOBAL STRATEGY is the first textbook of it's kind
specifically written for the Capstone Management course for International Business
programs and Strategic Management courses with a global emphasis. While the few
other available international strategy texts focus on how to manage larger,
multinational enterprises, Mike Peng's GLOBAL STRATEGY, Second Edition, offers several
new perspectives. These include a broadened definition of "global strategy";
comprehensive and innovative coverage; in-depth and consistent explanations of
1
Students should check with faculty advisors to ascertain whether this course can substitute for the capstone
strategy course. At UNR, we will allow students to count this class for MGT 496.
cutting-edge research; and an interesting and accessible way to engage students. The
text uses the "strategy tripod"--analyzing strategy from the industry-, institution-, and
resource-based views--to answer the question: What determines the success or failure
of firms around the globe?
2. Case Packet from Harvard Business School
I have created a set of course materials on the Harvard Business Education web site, and this message
explains how to get the materials you need for class.
Course link:
http://cb.hbsp.harvard.edu/cb/access/9552051
You need to register on the site to create a user name if you do not already have one. Once you have
registered, you can log in to see the course materials.
Some course materials are in PDF documents, and you can open them with Adobe Reader.
eLearning materials include a link you can use to gain access to them.
Some course materials may be listed as hard copy, and these will be shipped to you.
You will have access to these materials for 6 months.
After you register, you can get to the course again by doing the following:
1. Visit hbsp.harvard.edu and log in.
2. Click My Courses, and then click this course name: Global Strategy - Bilbao
I hope you find this a convenient way to access your course materials. If you have any questions about the
materials, please contact me at jsundali@unr.edu.
Thank you.
Outline of Course Content
Industries and companies are increasingly expanding their horizons from local to global markets and
resources. This course will equip students with an understanding of the challenges and opportunities
that these changes create for companies operating internationally with a special focus on companies
operating in the European Union. The emphasis is on those aspects of strategy that are particularly
salient in global or multinational competition. A combination of text and readings, corporate tours
and/or guest lectures, case studies, presentations, and class discussions will enable you to gain an
understanding of the strategic challenges confronting firms that compete in today’s global economy.
Some of specific learning objectives include:
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build your skills in strategic analyses by providing an understanding of the competitive
challenges of a global market environment;
understand the range of opportunities available for companies and managers to create value
worldwide;
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acquire tools and frameworks to craft strategies for international activity;
develop your capacity to analyze business models, how a firm can gain a sustainable competitive
advantage, and how such strategy can be successfully implemented;
know the resources, capabilities, and core competences that make a company earn aboveaverage returns;
appreciate the dynamics and complexities of industry competition;
become familiar with major countries, institutions, and industries;
deal with a company’s multiple external stakeholders and internal constituents;
integrate the concepts, principles, skills, and knowledge gained in functional courses;
Tentative Course Schedule:
Date
Topic
June 27
Chapter
(Peng)
1
Case Study
12
Ikea
3
Zara
CIE Automotive (no written case)
Introduction –
Ben & Jerry’s and Unilever
Vision and Mission
28
Industry Competition
2
Irizar
 http://www.irizar.com/index.php?s=&idi=EN
 http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pdf
29
30
July 1
4

5
6
7
8
11

12
13
14
15
Field Trip to Irizar
Corporate Social Responsibility
Catchup
Exam 1
Resources and Capabilities
CIE Automotive: http://www.cieautomotive.com/
Field Trip to CIE Automotive
Entering Foreign Markets
Managing Global Competitive
Dynamics
Catchup
Exam 2
Global Competitive Dynamics
6
Walmart in Germany
Ryanair
5
BRL Hardy
Gamesa (no written case)
8
Disney Hong Kong
11
Lincoln Electric: India
http://www.gamesa.es/en/
Field Trip to Gamesa
Diversifying, Acquiring,
Restructuring
Governing the Corporation Around
the World
Catchup
Exam 3
Grading and Assignments:
Assignment
Graduate
Students
40%
40%
20%
100%
Class Contributions Grade
Exams (3)
Strategic Audit Paper
Total
Typical performance standards in this class are:
% Required
Grades
92
A
90
A-
88
B+
83
B
80
B-
78
C+
73
C
70
C-
68
D+
63
D
60
D-
Final grades will assigned either using the above performance standards or on a class curve.
Class Contribution Grade
The structure of this class may be somewhat different from most of the other classes you have taken.
We will employ “case method” and engage in discussion. Briefly, “The philosophical approach taken in
discussion is one of inductive, autonomous, active, cooperative learning for the student. Students spend
most of their class time in interactive discussion of cases that they read and prepare for discussion
before class” (Corner & Corner, 2000). One theory of learning posits that learning is a process or cycle
with four steps: abstract conceptualization, active experimentation, concrete experience, and reflective
observation. Traditional teaching that is focused on lecturing generally helps a student with abstract
conceptualization. Discussion teaching attempts to bring all four steps into the classroom. “By
structuring, presenting, and sustaining arguments, students introduce ideas from which other students
draw by relating them to their own ideas thus further enhancing their own learning. Collective and
personal observation is then forthcoming. This advances the learning cycle in class” Corner and Corner,
2000).
Given all this, the following principles are fundamental to this class:
1. A discussion class is a partnership in which students and the instructor share the responsibilities and
power of teaching and the privilege of learning together.
2. A discussion group must evolve from a collection of individuals into a learning community with
shared values and common goals.
This means that we are all in this together. The success of the class will depend on the level of
involvement, preparedness, and enthusiasm each of us brings to class. A variety of classroom discussion
techniques will be used during the class to facilitate discussion. Sometimes you will contribute as an
individual and sometimes as part of a team. Sometimes you will be "cold-called" or "warm-called" and
asked to provide relevant commentary.
For this class to run successfully, you must come to class prepared. In addition to completing all
of the assigned reading prior to coming to class, you should be prepared to offer original and
thoughtful analysis in which your claims are supported by evidence, logic, and possible calculations.
For each reading, you should be able to summarize the reading, provide relevant commentary, and offer
insightful questions to extend discussion of the reading. For a case, you must do more than just read
the case during the last minute before class (see handout). A discussion with a few classmates prior to
class and/or a trip to the website of the company and related companies would typically be advised.
Since in order to contribute to the class you must be in class, attendance may be taken at the
beginning of each class. Any unexcused absence may result in a significant deduction to your class
contributions grade. While I recognize that we are in Spain and there are many other things to do
besides attend class, if you miss a discussion class the entire group suffers from your absence. If you do
not think you can make a commitment to attend class then you should be willing to accept the
consequences to your grade.
Overall Class Contributions Grade: The “case method” of teaching requires that you actively participate
in case discussions in class. Simply doing well on the case quiz/short answer questions is not enough to
earn an “A” on class contributions. Your class contribution grade will depend heavily on both the quality
and quantity of in-class contributions. "Persuasion" and "reasoned opinion" will be valued over simply
conversing and novel and creative ideas are always a plus. Individual contribution grades may be
assigned based on a class curve. Here is a rough guideline on the assignment of class contributions
grades:
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“A” Students – Earn above average grades on the case quiz/short answer questions AND
consistently enhance in-class case discussions with above average insights and creative
commentary, AND have few or no absences from class, AND deliver above average
individual presentation to the class.
“B” Students - Earn above to average grades on the case quiz/short answer questions,
AND/OR consistently are willing to participate in-class case discussions, AND have few or no
absences from class, AND deliver average individual presentation to the class.
“C and Below” Students - Earn below average grades on the before class case quiz/short
answer questions AND/OR rarely if ever contribute to case discussions AND/OR have
numerous absences from class AND/OR deliver a significantly below average individual
presentation to the class.
Exams:
The exams will consist of two parts.
 Part 1 will assess your knowledge and comprehension of the material assigned from the Peng
textbook for that particular week. Questions will include M/C, T/F, short answer, short essay
etc.
 Part 2 will assess your ability of application and analysis of theoretical material to the assigned
case studies. This part of the exam will assess your ability to analyze a case study and apply
relevant theory and course material. These questions will be essay and will be discussed or
given out in advance. You will be expected to utilize material from all the assigned readings in
the class.
Exams will only cover material from the week and will not be cumulative.
Strategic Audit
Students are required to complete a strategic audit of existing organization. In performing your analysis,
you should put yourself in the position of a consulting group. You have hired by the Board of Directors
to conduct this strategic audit. You are to determine whether the organization's multinational or global
strategy is effective, and to provide specific advice and implementation ideas on how to improve the
firm's multinational or global strategy going forward. Two key questions that should be addressed in
you audit include:
1. What are the most important global/multinational problems and opportunities that this
organization will face in the near future?
2. What should this organization do to handle these problems/opportunities?
There is no one right way to conduct a strategic audit. How you conduct the audit depends largely upon
the company, the industry, and the level of analysis. You should tailor your audit to your specific firm.
At a minimum your audit should consider the following questions:
1. How attractive is the primary industry this firm operates in? Has this industry generated
above average returns in the past and is it likely to generate above average returns in the
future?
2. What are the key success factors necessary for success in this industry? That is, what macro
variables largely determine which firms earn above average returns in this industry?
3. What has been the firm’s primary strategy, how well has it been working, and why has it
been performing such?
In addition to the specific industry and organizational issues facing this company, your analysis should
consider the following country factors where relevant:
4. Key industry clusters and sectors (e.g., Porter’s four “diamond” elements)
5. Political, regulatory, and legal environments (e.g., privatization, taxation, entry
requirements, preferential trade agreements, etc.)
6. Macroeconomic indicators (e.g., GNP, inflation, foreign debt, etc.)
7. Capital controls (e.g., repatriation, currency flows, etc.)
8. Risks (e.g., political stability, exchange rate exposure, etc.)
9. Social conditions (e.g., population density, wealth distribution, radicalism, etc.)
10. Social stability (e.g., conflicts, riots, demonstrations, crises, assassinations, guerrilla warfare,
internal security forces, ethnic tension)
11. Government (e.g., political parties/factions, relevant legislation, constitutional changes,
executive power)
12. Demographics and population characteristics (e.g., the age distribution and what effect
trends will have on such future needs as retirements and education, education level and
skills available vs. net exporter or intellectual capital, cost of living and wage structure, etc.)
13. Human, business, and environmental concerns of the local citizenry
14. Social cultures (e.g., business etiquette), value expectations, ethical norms, moral issues,
attitudes toward xenophobia, nationalism, corruption, nepotism
15. Market requirements (e.g., standardization vs. localization)
16. Relationships with non-governmental organizations (e.g., IMF, Transparency International,
UN, World Bank, etc.)
Page Guidelines - Your paper should adhere to the following maximum page guidelines:
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Executive Summary – 1 page
Introduction – 1 page
External Environment / Industry Analysis – 3 pages
Internal Environment Analysis – 3 pages
Strategic Recommendations and Action Plan – 4 pages
I reserve the right to may amend this syllabus with written notice.
Case Study Questions
Ben & Jerry’s
1. What do you think of Ben & Jerry’s mission statement? Is it an effective mission statement?
2. Is Ben & Jerry’s a socially responsible company? Why or why not?
3. Can the soul of Ben & Jerry’s be maintained within Unilever?
Irizar
1. Describe the business of Irizar.
2. How profitable is Irizar?
3. Describe the different forces of competition that Irizar must contend with.
IKEA’s Global Sourcing Challenge
1. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on
the upcoming broadcast of the German video program?
2. What actions should she take regarding the IKEA supply contract with Rangan Exports?
3. What long-term strategy would you suggest she take regardging IKEA’s continued operation in India?
Should the company stay or should it exit? (Be prepared to describe the impact of such a decision and
how you would manage it.)
4. For those recommending that IKEA continue to source carpets in India, would you suggest that she:
a. Continue IKEA’s own monitoring and control processes or sign-up to Rugmark?
b. Continue to focus only on eliminating the use of child labor in IKEA’s supply chain or engage in
broader action to address the root causes of child labor as Save the Children is urging?
CIE Automotive
1. Describe the business of CIE.
2. How profitable is CIE?
3. What are the key strengths and capabilities of CIE?
Walmart in Europe
1. Why is Wal-Mart’s German operation not yet profitable? Describe the key challenges that Wal-Mart
faces.
2. Would the German economy benefit from a more liberal retail environment?
3. What should Wal-Mart do now?
Ryanair
1.
2.
3.
4.
5.
Describe the structure of the airline industry. Is it an attractive industry?
Briefly describe the trends in the global airline industry.
What are the key strengths and capabilities accounting for Ryanair’s success?
How has Ryanair positioned itself relative to Porter’s five forces? Is it well positioned?
Will Ryanair be able to sustain their success given the current restructuring in the airline industry and
threats from new and existing competitors?
Zara: Fast Fashion
1. Compare Inditex’s financial results with those of its competitors (Gap, H&M, Benetton). What do the
comparisons indicate about Inditex’s relative operating economics and relative capital efficiency? Use
the Du Pont Identity in your analysis.
2. How do the distinctive features of Zara’s business model affect its operating economics? On what
dimensions of its operating economics (e.g gross and net margins) will Zara be at an
advantage/disadvantage to other retailers.
3. Does Zara have a sustainable competitive advantage? Will Zara be able to continue to earn superior
financial returns in the face of increasing competition and imitation?
BRL Hardy
1. What are the global strategy issues with the proposal to launch the D’istinto line? What do you think
Steve Millar should do in this situation?
2. What are the global strategy issues with the proposals regarding Kelly’s Revenge and Banrock Station?
What would you decide to do as Christopher Carson? What would you decide to do as Steve Millar?
Gamesa
1. Describe the business of Gamesa.
2. How profitable is CIE?
3. What global challenges/opportunities does Gamesa face?
The Walt Disney Company
1. What are the core capabilities of Disney? Have these capabilities been used wisely in developing a
clear and coherent strategy for the Disney organization?
2. Assess Disney’s use of vertical integration and corporate diversification. Which acquisitions have been
wise and which have been foolish? Is this a strong collection of businesses in their portfolio?
3. How well has Disney done in expanding geographically?
4. Should Disney acquire Pixar? Why? For how much?
Lincoln Electric
1. Put yourself in CEO John Stropki’s shoes. Should Lincoln expand into India by investing in a major
production facility there?
2. If you were to expand into India, would you enter through acquisition, a greenfield site, or some type
of joint venture? Which factors would inform your decision among these entry choices?
3. In which countries is Lincoln Electric likely to be most successful or least successful? Why? How
would this guide your own choice of where to place Lincoln Electric’s production facilities abroad?
4. When Lincoln goes to India and other countries, what factors should determine how much it adapts
its core incentive pay-for-performance management practices to local labor market norms? Should
Lincoln follow the adage “when in Rome, do as the Romans do,” or should it seek to always replicate
the recipe behind its success I the home plant in Cleveland?