BUSINESS PRACTICES IN CENTRAL AND EASTERN EUROPE
(in the Global Business Environment)
4 credits
Mikuláš Pichanič
pichanic@vse.cz
Office Hours:
Tuesday 13.30- 14.30
Prerequisite: Economics, Management Basics
Course Objective:
This course is intended as a practical introduction to the nature of global
economy and the key forces that drive globalization. The students get a deeper
understanding of the global business practices and their influence on the
countries’ ability to compete, and become familiar with the basic classification
of the world’s economies commercial relations. The global business creates the
opportunities for participation on the global value added chain. The course
focuses on economic transformation of the countries, and specifically Czech
Republic, from the directive planning into a market economy. It also addresses
business outcomes of the EU membership and integration. The course seeks to
find answers to questions such as how to do effectively business in an open
economy of a small country as Czech Rep., what its current social and business
culture is, and how it managed to incorporate the particulars of the local
business etiquette. It discusses problems and challenges of the individual
economies in order to gain understanding of social, political, environmental,
cultural and ethical initiatives and obstacles to business growth in volatile and
rapidly changing global markets.
CONTENT:
(This is a draft; changes can be made based on current developments,
students’ requests etc. Some issues will be discussed in several sessions; some
will fit into one session. The issues at hand will overlap to some degree.)
1. The Challenge of Globalization
Defining Globalization
The Proactive Forces Supporting Globalization
Global Outsourcing
Economies of Scale
Movement towards Homogenous Demand
Lowered Transportation Costs
Telecommunications
Global Economic Institutions
Government Tariffs and Taxes
Anti- Globalization Forces
Case 1 – Nationality Problems
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2. Globalization and Environment
The Major Environmental Challenges
Climate Change
Clean Energy
Demographic Growth
World Health problems
The Global Waste
Poverty & Starvation
Case 2 – Countries and Cultural Issues
3. Globalization of Culture
What Is the Culture?
The Components of Global Culture
MNC and World Cultural Market
Religions Its Role
Case 3 - Joint Ventures Partners
4. Globalization of Economy
Commanding Heights in the Global Economy
The Global Players in World Economy
WTO, IMF, Economic Integrations
The Role of the New Emerging Giants China, India, Brazil, Russia
Enjoying the Fruits of Globalization- Have and Have- not Nations
The Globalization of Finance
The Role of FDI- Hanson’s Formula
The Social Problems of Outsourcing
The Role of MNC
Regional Integration and Economic Globalization
Global Tourism
Case 4 – Airbus- Boeing -Where Are the Czechs
5. Porter’s Diamond Model of Competitiveness
Factor Conditions
Demand Conditions
Related and Supporting Industries
Firm Strategy, Structure, and Rivalry
The Role of Chance
The Role of Governmental Policy
The measurement of the Competitiveness
The Czech Republic Evaluated by the Model
Case 5- Flexit International
6. Business Environment in the Czech Republic
About Czech Republic- Facts
Privatization
Entrepreneurship- Historical Development
Macroeconomic Conditions
Microeconomics
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Business Culture
Models of Corporate Governance
Why to invest in CR
Case: Bata- CSR
7. Small Business and Its Performance in the Czech Economy
The Definition of SMEs
Start ups
Support of SMEs by the EU
Small Business & E/commerce
Marketing Strategy for Competitiveness on the Global Scale
Case 6 – Business Plan for Czech Republic
8. Business Activities of MNC in the CR
Evolution and Changes of a MNC business activities
Positives and negatives of MNC for the small country
Corporate Governance
Culture and its Effects on Organizations
Influence of Culture and Management Styles around the World
Staffing Philosophies in the Host Countries
Case 7 – Selecting a Manager in the Host Country
9. The Corporate Social Responsibility of MNC
The Social Responsibility of Firms
Ethics in Business
Codes of Conduct
Corruption and Its Impact on the Business Culture
The Sustainable Development Theory
10. Other Dimensions of the EU Integration and Global Polices
International Flows of Humanity
Accelerating the Achievement of Social Agendas
Managing Transitions
Bibliography: Along with selections from primary texts, students will be
provided selections from other sources including:
Cullen John B, Parboteeah K. Praveen, Multinational Management a Strategic
Approach, Thomson South- Western, 2005,ISBN 978-0-324-54512-8,
Reader and handouts dealing with Czech Republic.
Course Evaluation:
Class presentations (2)
Quizzies, Participation and Homework Assignments:
Midterm Exam:
Final Exam:
Final Paper: Business Plan
10%
20%
25%
35%
10%
3
Attendance Policy: Attendance is obligatory. More than four hours of
unexcused absence from class will endanger an officially certified completion of
the course (grading + certificate). Medical absences are excused with the
prompt receipt of proper documentation. It is expected that students arrive to
class on time and that they return promptly to class after any given class
break. Tardiness is figured into the absence policy.
Class Protocol: Students are required to be involved in class activities. They
are expected to show their preparation by participating in discussions, by
asking relevant questions, being critical and analytical with the contents
presented in class as well as by sharing their ideas and opinions. In class the
student is required to maintain a polite demeanor always and under every
circumstance. Students are asked not to eat in class and to put their cell
phones on silence. With the exception being for class presentations, laptops
are not to be used in class.
ATTACHMENT
A.
ESSAY AND PRESENTATION
The essay is designed to help the student gain experience in how to conduct a
systematic and thorough analysis of a specific topic or issue related to
international management. The key requirement of the essay is that it covers a
global topic and improves the communication skills of students.
B. FORMAT;
Each student should present a presentation individually or as a part of a team.
It is required that each student or team submits a one-page typed topic
proposal by week three. The proposal should include the following:
a.
b.
c.
d.
Brief description of global problem.
Brief description of target region or country.
Proposed method of investigation.
Sources of literature.
The presentation should not exceed ten (10-15) typed doubled-spaced pages,
excluding tables, graphs, exhibits and appendices. The report is due on the 8th,
week Presentations will be graded on the basis of quality. Quality is achieved
when reports are clearly and interestingly presented for the students in an in
class session. Presentations should be well organized, creative, accurate, well
documented, and interesting. Reports are considered authoritative when they
are focused and supported by thoroughly documented information.
The format of the presentation will be left to the style and objective of the
authors, however, each paper must include the following:
a. Title page: authors, course name and section, date
b. Acknowledgements
c. Body of the report.
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d. Conclusions and recommendations.
e. Endnotes.
f. Bibliography
C. PRESENTATION:
Each student or team is required to prepare a fifteen- (15) minutes
presentation of their research. Presentations will be followed by a question and
answer session. All sessions will be peer reviewed.
GRADING:
The project and presentation will be evaluated with the score of 1-10 points.
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