Mgmt 338: Global Marketing (MBA)
Peter F. Drucker and Masatoshi Ito Graduate School of Management
Fall 2008, Module 1, 2 credits, Monday Evening
Professor:
Cornelis A. “Kees” de Kluyver
Office:
Burkle 216
Office Hours:
By appointment
Office Phone: 607-3356
E-mail:
cornelis.dekluyver@cgu.edu
Course Description & Objectives:
The objective of this course is to provide you with concepts useful for analyzing world markets and
their respective consumers and environments, and to equip you with the tools needed to develop marketing
strategies for an ever-changing global market. We will accomplish this objective through lecture and
discussion of relevant concepts, readings from the business press, and case analyses of actual global
marketing issues.
Upon successful completion of this course, you should have developed the following global
competencies:
(1)
(2)
(3)
(4)
(5)
Environmental Competence – an understanding of the key environmental and cultural
differences across global markets
Analytic Competence - an understanding of how these environmental and cultural factors
influence marketing decisions (i.e. which products and marketing strategies to pursue in which
markets)
Strategic Competence – the ability to develop global strategies designed to define the long term
interests of the firm
Functional Competence – the ability to implement the marketing mix across countries
Managerial Competence – an understanding of the planning, personnel and corporate
organizational structure necessary to implement a successful global strategy
Method of Instruction:
My teaching philosophy is that learning is best done actively, not passively. It is something that you
do, not something that is done to you. For my part, instruction in the course will rely primarily on discussion,
lectures, readings and cases. But the learning that occurs – what you eventually take away from the course – is
a function of what you put into the course. Active involvement through participation in case and lecture
discussions is essential for you and your colleagues to derive maximum benefit from this course. My goal in
this course is to challenge you to learn as much as you possibly can about the global marketing environment.
Course Materials:
(1)
Text: The Global Market: Developing a Strategy to Manage Across Borders, John A.
Quelch (Editor), Rohit Deshpande (Editor), ISBN: 978-0-7879-6857-1, Hardcover, 432 pages, May
2004, Jossey-Bass
(2)
Course packet of cases (available from the bookstore)
Course Requirements/Grading
Grades will be determined by the following criteria.
(1)
(2)
(3)
Class Participation
1 Case Write-Up (3 pages each max., Dbl. space, 12 pt font)
Final Exam (case)
40%
25%
35%
Class Participation:
1. Preparation and participation are critical to your success in the course. You will be graded on the quality
(not necessarily quantity) of your contribution.
2. Preparation: My expectation is that you will come to the class having read the assigned background
reading(s) and already thought through and analyzed the case study. This way, we can devote the bulk
of the class time to thinking about and responding to each other's analyses of the cases and only the necessary
minimum to getting the facts out.
3. Absences: As a matter of courtesy, if you are unable to attend, you must email or phone me before class. If
you miss more than one class, you will be marked as absent for the entire course (NO EXCEPTIONS)
4. Classroom etiquette: Please arrive on time to class. When in class, mobile phones and pagers must be
switched off. The use of laptops is permitted for note taking but discouraged for checking emails and surfing
the Internet as you are expected to remain attentive and contribute to class discussion.
5. Class participation: I encourage active student participation in class and take class participation into
account in determining course grades. If you are inadequately prepared to lead off the discussion of a
particular reading or case, you may: (1) ask before class not to be called on, (2) pass when you are called, (3)
"wing it.", or (4) faint. These actions are listed in decreasing order of attractiveness.
6. The Instructor’s role: My role in the class is to facilitate discussion. In part, I serve as a clarifier and
sometimes an intensive questioner in order to help you present and develop your ideas. One of my primary
roles is to manage the class process and to assure that we collectively reach a clear understanding of the issue
at hand.
7. Cases: Clearly, there is no single correct solution to most cases. There are, however, wrong solutions and
many lessons to be learned. There also is such a thing as weak analysis. Finally, there are solutions and
analyses which are ineffective because they are not presented in an orderly and persuasive fashion. We should
work together to see to it that each class session is a lively, stimulating, and intellectually rewarding venture
in group learning. We are individually and collectively responsible for achieving that end.
8. Approaching a case: Each case stands on its own. Generally, I am not concerned with what was the
actual outcome of the case. Such an approach would imply that there is a "right answer". The actual outcome
of a situation may or may not reflect a good solution. In those instances where there was a particularly
interesting outcome, it will be shared with the class.
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Case Write-up:
You are required to hand in one three-page case write-up during the course (You choose which case).
Cases are due at the beginning of the class period during which the case will be presented. Hard copies only
are acceptable; electronic versions of analyses are not. Absolutely no late cases will be accepted for any
reason. Your write-up will be graded on the quality of your analysis and of your recommendations.
Questions to be considered when writing up each case are provided at the end of this syllabus. Formatting
requirements: 3 pages maximum, double spaced, 12 point font
Academic Honesty
You should be familiar with the University policy regarding academic honesty. The policy can be found at
http://www.cgu.edu/handbook/Academic%20Honesty.doc. You should also consult the Writing Center’s
guidelines as to what constitutes plagiarism (http://writecenter.cgu.edu/students/plagiarism.html).
I do not tolerate academic dishonesty and will actively monitor students’ work to ensure dishonesty
does not occur. A student who violates the University policy on academic honesty will get a minimum of
zero for the piece of assessment for which dishonesty is established and I will ask the MBA Director to
put a note on that student’s file.
Late assignments and extensions
Not accepted/applicable.
Grading
I give only a few A’s and A+’s. The course average is typically in the B-B+ range. If you perform below
expectation, I give grades of C and below.
My standards:
A) For written work and final course grades
A+
Truly exceptional performance, rarely given.
A
Performance significantly above expected levels.
A-
Performance moderately above expected levels.
B+
Expected level of performance.
B
Performance moderately below the expected level.
B-
Performance significantly below the expected level.
C+
Passing but marginally acceptable performance.
C
Unacceptably poor performance.
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C-
Very poor performance.
B) For Class Participation
A and A-
Comes to class prepared. Contributes readily to the conversation but
does not dominate it. Makes thoughtful contributions that advance
the conversation. Shows interest in and respect for others’ points of
view. Participates actively in small groups. Makes a genuine effort
to assist colleague presenters by being engaged and involved in
presentations.
B+ and B
Comes to class prepared and makes thoughtful comments when
called upon. Contributes occasionally without prompting. Shows
interest in and respect for others’ points of views. Participates
actively in small groups.
B- and C+
Participates in discussion but in a problematic way. Such students
may talk too much, make rambling or tangential contributions, bluff
there way unprepared or otherwise dominate discussions, not
acknowledging cues of annoyance from other students or the
professor.
C and C-
F
Comes to class prepared but does not voluntarily contribute to
discussions and gives only minimal answers when called upon.
However, does show interest in the discussion, listens attentively
and takes notes.
Seems on the margin in class and may have a negative impact on the
participation of others. Often does not participate because has not
read the material in advance. May be disruptive or radiate negative
energy via hostile or bored body language. May be overtly rude.
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Global Marketing Course
COURSE SCHEDULE
Session
Topic
Assignment
1
Course Introduction: What
is Global Marketing?
2
Analyzing Global Market
Opportunities
Book: Introduction and Part I (Ch 1-3)
Reading: International Marketing Research: A Global Project
Management Perspective
Book: Part II (Ch 4-5)
Case: L’Oréal and the Globalization of American Beauty
3
Generic Global Marketing
Strategies
Book: Part III (Ch 6-7)
Case: BRL Hardy: Globalizing an Australian Wine Company
4
The Global Marketing Mix
1 (Product)
Book: Part IV (Ch 8-9)
Case: Dr. Ing. h.c. F. Porsche AG (A) and (B)
5
The Global Marketing Mix
2 (Positioning, Branding,
Advertising and Promotion
The Global Marketing Mix
3 (Distribution and Pricing)
Book: Part V (Ch 10-11)
Case: Lenovo: Building A Global Brand
Organizing Global
Marketing Activity
Book: Part VII (Ch 14-15)
Case: Samsung Electronics Company: Global Marketing
Operations
6
7
Book: Part VI (Ch 12-13)
Case: Marketing Château Margaux
5
BOOK: The Global Market: Developing a Strategy to Manage Across Borders
John A. Quelch (Editor), Rohit Deshpande (Editor), ISBN: 978-0-7879-6857-1, Hardcover, 432 pages,
May 2004, Jossey-Bass
Introduction
Part One: Developing the Global Mind-Set.
1. Theodore Levitt’s “The Globalization of Markets”: An Evaluation After Two Decades (Richard S.
Tedlow, Rawi Abdelal).
2. “The Globalization of Markets”: A Retrospective with Theodore Levitt (Stephen A. Greyser).
3. “The Globalization of Markets” Revisited: Japan After Twenty Years (Hirotaka Takeuchi).
Part Two: Managing the Global Business.
4. Rooting Marketing Strategy in Human Universals (Luc Wathieu, Yu Liu, Gerald Zaltman).
5. Organizing Multinational Companies for Collaborative Advantage (Morten T. Hansen, Nitin Nohria).
Part Three: Managing Global Products.
6. Global Standardization versus Localization: A Case Study and a Model (Pankaj Ghemawat).
7. It’s a Small World After All . . . or Is It? The State of Globalization in the Worldwide Automotive
Industry (Nick Scheele).
Part Four: Managing Global Brands.
8. Strategies for Managing Brand and Product in International Markets (Hans-Willi Schroiff, David J.
Arnold).
9. Managing the Global Brand: A Typology of Consumer Perceptions (Douglas B. Holt, John A. Quelch, Earl
L. Taylor).
Part Five: Managing Global Services.
10. The Globalization of Marketing Services (Martin Sorrell).
11. Cost Economies in the Global Advertising and Marketing Services Business (Alvin J. Silk, Ernst
Berndt).
Part Six: Managing Global Supply and Distribution.
12. Managing Global Supply Chains (Ananth Raman, Noel Watson).
13. Globalization of Retailing (David E. Bell, Rajiv Lal, Walter Salmon).
Part Seven: Setting the Global Agenda.
14. The Empire Strikes Flak: Powerful Companies and Political Backlash (Daniel Litvin).
15. Globalization and the Poor (V. Kasturi Rangan, Arthur McCaffrey).
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R.
CASES AND QUESTIONS
International Marketing Research: A Global Project Management Perspective (Business Horizons
(2007) 50, 113–122; www.sciencedirect.com or HBS)
As organizations continue to pursue more global strategies, the need to be able to understand consumers in far
away places is increasing. Marketing research is the primary mechanism through which companies understand
their current, as well as potential, customers. As companies contemplate the global marketplace, they must
consider how domestic market research differs when conducted in international markets. In an effort to help
internal client side marketing, research managers design and implement improved international research
studies. Briefly discusses the context for international market research and provides a framework for
conducting international market research projects. Additionally, presents several factors that should be
considered by marketers who engage in global market research studies. These factors represent the variety of
challenges that must be addressed in order to conduct research across national borders. Particular attention is
paid to the nuances related to primary data collection and questionnaire construction.
L’Oréal and the Globalization of American Beauty (9-805-086)
Examines L'Oreal's acquisition of leading U.S. cosmetics brands, including Maybelline, Redken, and Kiehl's,
and their subsequent renewal and globalization. Reviews the history of L'Oreal, now the world's largest
cosmetics company, from its origins in France in 1907. The company entered the United States in 1953, and
from 1990, expanded rapidly with the acquisition of U.S. brands, which were renewed and then taken
international. Focuses on Kiehl's--since 1851, a quirky New York luxury brand--which L'Oreal acquired in
2000 and is now expanding globally. Shows how L'Oreal developed a portfolio of U.S. and European brands
that are now sold globally. Explores the corporate strategy and marketing challenges facing consumer
products firms as they globalize and how acquisitions can facilitate globalization.
1.
How did L’Oréal become the world’s largest beauty company? What was the role of
acquisitions
in this growth?
2.
L’Oréal offers consumers worldwide “American” and “French” concepts of beauty. Are there
any limits to the national beauty images it can globalize?
3.
What are the global opportunities for Kiehl’s? What are the limits, if any?
BRL Hardy: Globalizing an Australian Wine Company (HBS 9-300-018)
Two new product launch decisions face Christopher Carson, managing director of BRL Hardy, Europe.
Responsible for the European operations of a major Australian wine company, Carson has begun to globalize
his strategy beyond selling the parent company's wines. After a difficult joint venture with a Chilean wine
source, he is proposing to launch an Italian line of wines. His local team has also developed a new Australian
brand that would compete directly with a parent company's global brand rollout.
1.
2.
3.
4.
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’istinto? Why/why not?
What recommendation would you make to the organization concerning the conflicting
proposals for Kelly’s Revenge and Banrock Station? What would you decide to do as
Carson? As
Millar?
Dr. Ing. h.c. F. Porsche AG (A) and (B) (9-706-018) (9-706-019)
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Examines one of the most important entrepreneurial decisions made in the history of Porsche, made in early
1998: to build a sport utility vehicle (SUV)--the Cayenne. After decades of relying on one or two sports car
models and nearly going bankrupt and losing its independence in 1993, Porsche had to diversify its product
lines. Also examines the branding implications of the internationalization of production.
(A) 1. Should Porsche move into the sport-utility market? Did it have other options? What would
you have recommended at this time?
(A) 2. Because of the success of the Boxster, its main production plant in Stuttgart-Zuffenhausen
near its headquarters worked at near capacity. Where should it locate its new plant to build
new SUV? How important was it for the new model to be "made in Germany"?
(A) 3. By moving into the SUV market, did Porsche remain true to its brand? What does that mean
in 1998?
the
For the (B) case, please read the “Introduction,” “Product and Partner,” and
“Family Matters,” skim the rest.
(B) 1. Is the Cayenne a “real Porsche?” In what ways, do you mean it is or is not?
(B) 2. Would you continue to invest in Porsche and CEO Wendelin Wiedeking after it became the
largest shareholder in VW after October 2005?
Lenovo: Building A Global Brand (HBS 9-507-014)
Announced in December 2004, the $1.75 billion acquisition of IBM's PC division by Lenovo, China's largest
PC maker, made headlines around the world. A relative upstart in the business, Lenovo acquired the division
of IBM that invented the PC in 1981. While Lenovo was arguably the best-known brand in China, it was
virtually unknown in the rest of the world. In 2004, over 90% of Lenovo's revenues came from China, but
with this major deal, Lenovo aimed to become a global technology giant. As a new multinational with 20,000
employees operating in 138 countries, Lenovo needed a global marketing and branding strategy to extend its
global reach. This meant determining what Lenovo stood for and designing products that supported that
claim. In January 2006, 13 months after the deal was announced and eight months after it closed, Lenovo is
preparing for the intense limelight that would come with its sponsorship of the February 2006 Turin Winter
Olympics. There, it plans to introduce a Lenovo-branded product line designed from the bottom up for the
small to medium enterprise space--a move considered very bold and risky by many observers.
1.
2.
3.
4.
5.
Why did IBM want to sell its PC business? Why did IBM sell to Lenovo?
What explains Lenovo’s success prior to the acquisition?
What challenges did Lenovo face after the acquisition?
How should Lenovo handle the brand management challenges associated with the
acquisition?
In trying to become a global brand, does Lenovo have a problem coming from China?
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Marketing Château Margaux (9-507-033)
Chateau Margaux, luxury brand or connoisseur brand? Although France is awash with unsold wine, demand
has never been stronger for the very finest Bordeaux. How should Margaux sustain and grow its business?
The Chateau management team is wondering if it can take more control of distribution instead of leaving it to
the Bordeaux wine merchants. Also, can the Chateau build marketing and sales capabilities on its own? Who
is the target market, wine connoisseurs or the newly rich? Corinne Mentzelopoulous, who took over the estate
from her father in 1980, wonders whether a new lower-priced wine should be added to the portfolio.
1.
2.
3.
How should Margaux sustain and grow its business?
Should distribution be revised?
What about the rest of the Marketing Mix?
Samsung Electronics Company: Global Marketing Operations (9-504-051)
Samsung's global marketing director is assessing how to build the global brand reputation of the company
further and upgrade the company's worldwide brand image.
1.
2.
3.
What are the ingredients of SEC’s corporate turnaround strategy?
How strong is the Samsung brand? Can it pass Sony in terms of recognition/ranking?
As Chief marketing officer, what are Kim’s role and responsibilities? How has he built his
influence?
About the Instructor
Cornelis A. “Kees” de Kluyver is the Masatoshi Ito Professor of Management and former Dean at the Peter F.
Drucker and Masatoshi Ito Graduate School of Management at Claremont Graduate University.
His professional experience includes over thirty years in academe and management consulting. Prior to
coming to Claremont Graduate University, he was Dean and Professor of Management at the School of
Management at George Mason University, in Fairfax, Virginia. Earlier in his career, he was a partner with
Cresap Management Consultants, a Towers Perrin Company, in the firm’s strategy and organizational
effectiveness practice. In this position, he served a wide range of clients in the high technology and service
industries on a range of strategy issues including the globalization of multinational operations.
His academic career includes several other academic appointments; as Professor of Business Administration
as the Colgate Darden Graduate School of Management at the University of Virginia; as Associate Professor
of Management at the Krannert Graduate School of Management at Purdue University; and as Senior Lecturer
in Operations Research at the University of Canterbury, Christchurch, New Zealand.
Dr. de Kluyver’s areas of research include global strategy and corporate governance. He has published
extensively in the areas of Operations Research, Marketing, and Strategic Management and his writings can
be found in such journals as Management Science, the Journal of Marketing Research, the European Journal
of Operational Research, the Sloan Management Review, and Long Range Planning. His third book STRATEGY: A VIEW FROM THE TOP (with John A. Pearce II, published by Prentice Hall) - is in its third
edition and was translated in Spanish, Portuguese, Japanese, Korean, and Chinese.
Dr. de Kluyver was a member of the first Blue Ribbon Commission on Executive Compensation convened by
NASD, which focused on developing standards for stock option grants, and a senior advisor to Institutional
Investor, Inc., which deals with governance issues in the Asset Management Industry.
9
Dr. de Kluyver has served on a number of corporate and philanthropic boards. He has held visiting
appointments at Oxford University (U.K.) and the University of Stellenbosch (S.A.). He is a frequent speaker
to professional audiences, and holds a Ph.D. in Operations Research from Case Western Reserve, an MBA for
the University of Oregon and undergraduate degrees from the University of Oregon and from Nijenrode, the
Netherlands School of Business.
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