LOYOLA MARYMOUNT UNIVERSITY
College of Business Administration
MBAB/MBAG 641
INTERNATIONAL MANAGEMENT
SUMMER II 2010
Tu & Th 7:10 - 10:10 p.m., Hilton 035
Instructor: Dr. Yongsun Paik
Office: Hilton 215
Phone: (310) 338-7402
E-mail: yspaik@lmu.edu
Office Hours:
T, R 5:00 - 6:00 p.m.
Course Goal and Objectives
U.S. business is intertwined with the world as never before. Competition is increasingly global, and
firms have become international in their sales, production, investment, financing and sourcing. Foreign
competition has seriously affected some industries (turbine generators, textiles, sewing machines),
fundamentally changed others (automobiles) and seriously challenged even the "best" (semiconductors,
biotech, aircraft).
Different economic, political and socio-cultural environments around the world challenge managers
with opportunities and risks. The goal of this course is to help you achieve understanding of the
international business environment and evaluate the agenda facing managers operating in international
business contexts.
Specifically, the course has the following learning objectives:
1. To familiarize students with the major concepts and paradigms in international management.
2. To enhance an awareness of the impact of internationalization on firms
3. To develop the ability to analyze MNC’s strategies and behaviors.
The course will build on the concepts developed in the MBA core courses, but no previous international
coursework is required.
The basic pedagogical approach of the course will be case discussion. Short lectures and
discussions of reading assignments will supplement the case analysis. Reading assignments are your
responsibility and they will in most cases not be discussed specifically in class.
Course Materials
TEXT
Barlett et al., Transnational Management: Text and Cases, and Readings in Cross-Border Management, 6th
ed. (hereafter abbreviated TM), McGraw-Hill/Irwin, 2011.
READING
A collected set of readings and cases (hereafter abbreviated RR) will be either posted on MYLMU Connect
or will be distributed in class.
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Grading and Requirements
The course grade will be based on:
Individual Work:
* Class participation
* Midterm exam
* Final exam
40 pts
40 pts
40 pts
Group Work:
* Group written report
* Oral presentation
50 pts
30 pts
* Total
200 pts
The following is the grading scales for this course. It is generally assumed that every student will
make his/her best effort and therefore will seldom fall below a B-.
Grading Scales
186 & above: A
175 - 185: A166 - 174: B+
158 - 165: B
150 - 157: BClass participation will be graded based on the quality of contributions to class discussion, including
useful questions addressed to the instructor or to students making presentations. Preparation is criticalI
expect you to complete the reading assignments prior to the class meeting. Students are strongly
encouraged to participate in class discussion. With regard to quality, some of the criteria normally applied
are;
1. Are the points that have been made relevant to the discussion?
2. Are the points simple recitations of case facts or have implications been drawn?
3. Is there evidence of analysis rather than expressions of opinions?
4. Are the comments linked to those of others?
5. Did the contribution further the class' understanding of the issues?
Each student will begin the course with 30 points in class participation, and can lose points by repeated
absence from class or complete lack of class participation.
Two exams will be given in class. The final exam will NOT be cumulative. The exams will consist of
essay questions. Material for the exams will come from the following sources: 1) class lecture 2) assigned
readings, 3) class discussion, 4) in-class video, and 5) any in-class exercises and handouts. Lectures are
primarily designed to address the major points from the readings. Consequently, students who keep up with
readings are expected not only to understand lectures better but also to earn a better grade. Please bring a
blue/green book to each exam.
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The group written report is a team project that studies a specific topic related to the subjects covered in
class. For example, you may research corporate and/or business strategies of an MNC in the U.S. consumer
electronics market. As the top competitors in the U.S. consumer electronics market are all foreign
companies (e.g., Sony, Matsushita, Philips, Samsung), it would be interesting to study their foreign market
entry and expansion strategies. For example, how do they design and manage international joint ventures?
How do they acquire the services of the domestic distributors to market their products? Another example
would be to study key issues involving cross-border mergers and acquisitions (M&As) among MNCs. How
do they successfully integrate organizations after completing M&As? Followings are some more examples
you may choose from:
Entry mode strategies of U.S. firms
Expatriate management - training and development
Comparative study on performance appraisal and compensation
Ethical issues facing an MNC
Cross-cultural negotiation
All supporting documentation and data analyses should be included in the appendices. The written report
should be typed, double-spaced, and no more than 15 pages (excluding any appendices). The sources for all
material used in your report should be cited along with a bibliography. Each group should submit a onepage memo by July 6th that summarizes its research plan, including the title of the topic, the name of a
company, a target region, method, etc. I will be glad to discuss your group project before you turn it in if
you any have questions.
Oral presentation will be based on the assigned cases and will be part of the class discussion. You will be
asked to choose one of the six cases numbered on this syllabus and make a presentation on your analysis of
the case. You will have maximum of 25 minutes to discuss the assigned case for the class, with supporting
analysis and evidence from the case. A guideline for the presentation on the case is attached to the end of
this syllabus.
A Guideline for Success in the Course: This course is designed for MBA students who are fully motivated
to take an elective course of their choice. Please keep up with your reading so that you can avoid excessive
overnight reading right before an exam. A general rule of thumb is that study and preparation time should
take between three and four hours for every class meeting. Understanding the main points of each article
and integrating these points with your notes from my lecture is critical to your success in this course.
Please divide your work wisely throughout the semester, and start on your group project as early as possible.
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CLASS SCHEDULE AND ASSIGNMENTS
Date
6/29
Topic
Introduction
What are the recent developments in the global environment and key issues in
the management of MNCs?
Readings: TM, Chapters 1, Reading 1-2; RR, Economist, Turning Their Backs
on the World; Onshoring; Outsourcing’s Third Wave Fortune, America’s
Growing Trade Deficit Is Selling the Nation Out from Under Us
Video: Video: Globalization – Winners and Losers, Outsourcing: White Collar Exodus
7/1
Cultural Clash in International Management
Who are we? Who are they? How can we minimize the risks of
miscommunication and misinterpretation by understanding different cultures?
Readings: TM, Chapter 2, Readings 2-1, RR, Hampden-Turner, The Boundaries
of Business: The Cross-Cultural Quagmire; Markoczy, Us and Them (in-class
handout).
Video: Managing the Overseas Assignment
7/6
Understanding the International Context
What are the external business environments? What are the economic, sociopolitical pressures? How do MNCs adapt to opportunities and threats in
international business environments?
Readings: TM, RR, Bapuji & Beamish, How to avoid hazardous design flaws:
Beamish & Bapuji, Toy Recalls and China: Emotion vs. Evidence; Johnson,
Learning from Toys.
Case 2-3: Mattel and the Toy Recalls (A)
Questions:
 What are the characteristics of the toy industry and how do they affect toy
making?
 What challenge do toy companies face in managing offshoring?
 What is the nature of the product quality problem faced by Mattel? What
organizational practices of Mattel contributed to the problem?
 What can Mattel do to enhance product quality? What should the recall
strategy be?
Video: Interview to CNN on toy recalls.
7/8 (Case 1)
Developing Transnational Strategies
How do MNCs balance strategic means and ends to build the three required
dimensional capabilities? What are the competitive strategies MNCs pursue?
Readings: TM, Chapter 3, Readings 3-1, 3-2
Case 3-3: GE’s Imagination Breakthroughs: The Evo Project
Questions:
 What is your evaluation of Immelt’s new organic growth strategy? Why does
GE want to change the existing successful strategy?
 Is Immelt betting on the right things to drive growth in GE? Can he hope to
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change a company whose growth was driven by acquisitions and
productivity improvement into an organic growth company dependent on
innovation, entrepreneurship, and risk-taking?
 How have the Locomotive IBs been able to survive in the wake of the failure
of the AC 6000, the initial difficulty in obtaining orders for Evo and the
failure to make Hybrid commercially viable?
 What action should the Transportation business take regarding the Hybrid
locomotive?
Video: GE’s Imagination Breakthrough: The Evo Project
7/13(Case 2)
Developing a Transnational Organization
How do MNCs develop organizations that effectively support their competitive
strategies? How do MNCs build transnational organizations that reflect their
need for multidimensional and flexible capabilities?
Readings: TM, Chapter 4, Readings 4-1, 4-3; RR, Ashkenas, Creating the
Boundaryless Organization
Case 4-1: Philips versus Matsushita: Competing Strategic and Organizational
Choices
Questions:
 How did Philips become the leading consumer electronics company in the
world in the postwar era? What distinctive competence did they build? What
distinctive incompetencies?
 How did Matsushita succeed in displacing Philips as No.1? What were its
distinctive competences and incompetencies?
 What do you think of the change each company has made to date-the
objectives, the implementation, and the impact? Why is the change so hard
for both of them?
 What recommendations would you make to Gerald Kleisterlee? To Eumio
Ohtsubo?
Video: Philips and Matsushita 2001
7/15
MIDTERM
7/20 (Case 3)
Creating Worldwide Innovation and Learning
How do MNCs create and disseminate knowledge across borders? Specifically,
how do they develop and rapidly diffuse innovations around the world?
Readings: TM, Chapter 5; Readings 5-1, 5-3; RR, Paik & Choi, The
Shortcomings of a Standardized Global Knowledge Management System: The
Case Study of Accenture.
Case: 5-3, McKinsey & Company: Managing Knowledge and Learning
Questions:
 How was this obscure little firm of “accounting and engineering advisors”
able to grow into the world’s most prestigious consulting firm fifty years
later?
 How effective was Ron Daniel in leading McKinsey to respond to challenges
identified in the Commission on Firm Aims and Goals? What contribution
did Fred Gluck make to the required changes?
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 Judging by the evidence in the three mini-cases of front-line activities in the
mid-1990s, how effective has the firm been in its two-decade long change
process?
 What is your evaluation of Rajat Gupta’s four-pronged “approach to
knowledge development and application within McKinsey? As a senior
partner, what specific advice would you give him?
Video: McKinsey & Company
7/22
Engaging in Cross-border Collaboration: Managing across Corporate
Boundaries
Why do MNCs form alliances? What are the benefits and costs of inter-firm
collaboration? How do you negotiate international business deals?
Readings: TM, Chapter 6, Reading 6-1, 6-2; RR, Hill et al., An Eclectic Theory
of the Choice of International Entry Mode, Paik & Tung, Negotiating with East
Asians.
Case 6-1: Nora-Sakari: A Proposed Joint Venture in Malaysia (Revised)
Questions:
 Why have the negotiations so far failed to this point? Is the formation of the
JV between Nora and Sakari the best option for both companies to achieve
their respective objectives?
 As Zainal, what would you do to ensure that Nora fulfills the TMB contract?
 If Zainal decides to renegotiate (and assuming that Kuusisto agreed), how
should they restructure the terms of the deal to reach a win-win situation?
7/27 (Case 4)
Implementing the Strategy: Building Multidimensional Capabilities
What are the roles of managers at headquarters and overseas subsidiaries in
managing MNCs? They can play three different roles: the global business
manager, the worldwide functional manager, and the national subsidiary
manager.
Readings: TM, Chapter 7; RR, Reading 7-1, 7-2; RR, Andersson & Forsgren, In
search of centre of excellence: Network embeddedness and subsidiary roles in
multinational corporations
Case 7-2: “BRL Hardy: Globalizing an Australian Wine Company
Questions:
 How do you account for BRL Hardy’s remarkable post merger success?
 What is the source of the tension between Stephen Davies and Christopher
Carson? How effectively has Steve Millar handled their differences?
 Should Millar approve Carson’s proposal to launch D’stinto? Why/Why
not?
 What recommendation would you make to the organization concerning the
conflicting proposals for Kelly’s Revenge and Banrock Station?
7/29 (Case 5)
The Future of the Transnational: An Evolving Global Role
How will the role and responsibility of the MNC evolve in the global political
economy in the 21st century? MNCs have adopted four different postures ranging
from the exploitative and the transnational, to the responsive and the
transformational.
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Readings: TM, Chapter 8, Readings 8-1, RR, Kohls, Resolving Cross-cultural
Ethical Conflict: Exploring Alternative Strategies; Carroll, Managing Ethically
with Global Stakeholders: A Present and Future Challenge.
Case 8-1: Hitting the Wall: Nike and International Labor Practices
Questions:
 Does Jeff Ballinger have a convincing argument about Nike? Does Nike
have a convincing response?
 How well has Nike handled the publicity surrounding its labor practices?
Could or should the company have done anything differently?
 What is a “fair” wage in Vietnam? How should Nike think about it?
 What would you recommend for this company going forward?
8/3 (Case 6)
Video: Nike, Ethics in International Business
Expatriate Management: Overseas Assignment and Training
How do staff overseas subsidiaries of MNCs to effectively manage their
operations? What are the most important criteria in selecting expatriates?
Readings: RR, Black & Gregersen, The Right Way to Manage Expats; Collings
et al., Changing Patterns of Global Staffing in the Multinational Enterprise;
Paik et al., How to improve repatriation management.
Case (in-class handout): “Bristol Compressors, Asia-Pacific”
Questions:
 How important is the Asia-Pacific region to the future of Bristol
Compressors?
 To what do you attribute Bristol Compressors’ performance problems in
the Asia-Pacific region?
 Which option should Woods pursue?
 What criteria are most important in making this decision?
Video: Beyond Culture Shock
8/5
FINAL EXAM
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Guidelines for Group Presentation on an Assigned Case Analysis
Each student presentation in class will be limited to maximum 25 minutes. He/she is expected to have wellorganized, logical and persuasive oral reports. The content of the reportanalysis and conclusionsare the
most important, but the content will lack punch without attention to the form of the presentation.
In evaluating presentation, I will consider the following:
Persuasiveness - was the presentation logical and convincing? Was evidence marshaled to support the
conclusions and to anticipate counterarguments?
Analysis - did you show evidence of digging into the case and doing analysis beyond what was already
explicit in the case?
Creativity - did you go beyond the case in identifying important issues, alternatives?
Completeness - were the key aspects (key issues, alternatives, positive and negative points, etc.) covered?
Organization - was the presentation well-organized and did the report flow smoothly? Exceeding the time
limit will be penalized.
Enthusiasm – were you able to show enough enthusiasm and interest to draw attention from the audience
throughout the presentation?
Response to Questions - did the group seem confident and convincing in handling questions?
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