University of Southern California
Marshall School of Business
MOR 592 (Global) Business Field Research
Cuba Business Field Research Program 2014
Professor:
Office:
Phones:
Email:
Carl W. Voigt, Ph.D.
Management & Organization
Bridge Hall 303-F
(213) 740-0764 Office
(213) 446-1753 Mobile
cvoigt@marshall.usc.edu
Staff Coordinator: Jeanette Villanueva Padilla
Global Programs and Partnerships
Office:
Bridge Hall 400-G
Phone:
(213) 740-3289
Email:
jeanettv@marshall.usc.edu
Office Hours:
By appointment – call or email and we will schedule a time to meet
Class Time:
Trip Dates:
Sunday, Nov 10th and Sunday, December 8th - See Course Schedule for details
December 29, 2013 - January 11, 2014
COURSE DESCRIPTION
Global Business Field Research Program: USC Marshall School of Business has made global business
education a priority. From PRIME, GLOBE, and ExPORT for MBAs, to GLP, LINC, TIE, and ExCEL for
undergraduates, USC Marshall has created multiple structured programs which are designed to provide our MBAs
and undergraduate business students with deep insights into business practices, opportunities, and challenges outside
of the United States. Combine that global focus with the purpose of the 592 Business Field Research course which
is to get students outside the classroom for in-the-field learning, and you have the impetus for truly outstanding
learning experience. The MOR 592 (Global) Business Field Research program focuses on “getting students out of
the classroom” and into the “real world of business” where learning is achieved by personal observation,
participation, interaction, and experiencing. The best learning is achieved by taking students to economies where the
“distance” is greatest, and they are truly out of their comfort zones. By this we mean, intentionally placing students
in business environments, that at least initially, are difficult to understand, require comprehensive analysis, and
demand careful and thoughtful application of theoretical frameworks and models in order to make sense out of the
economy and business environment. This the overarching objective of this course
Cuba Business Field Research Program: The primary goal of the Cuba Business Field Research program is
to visit one of the most unique economies in the world. Cuba provides a “business learning laboratory” that is
unequalled anywhere else. Cuba remains one of the world’s few economies that are still based on the principles of
government central planning. While Cuba is slowly transitioning away from a fully planned economy, and is
experimenting with free enterprise sectors, Cuba’s government institutions continue to play very important roles in
all aspects of Cuban society and its economy.
While most focus on the 1959 Cuban revolution of beginnings of adversarial relations between the US and Cuba, the
roots of this adversarial relationship go back to the late 1800s. At the end of the Spanish-American war, the US
gained control of several overseas territories, including Cuba. While the US pledged that it would not establish
permanent control over Cuba, its behavior toward Cuba said otherwise. The Platt Amendment in 1903 effectively
made Cuba a protectorate of the US, and gave the US to right to intervene in domestic Cuban issues, and to lease or
MOR 592
Cuba Business Field Research Program – December 2013/January 2014
1
buy land for the purpose of establishing Naval bases. It was not until 1934 that amid raising Cuban nationalism and
widespread criticism of the Platt Amendment did the US repeal it.
Cuba experienced a social, political, and economic revolution in 1959. With it came a “Cuban social and political”
experiment to create a new nation based on different political and economic principles. A major tenet of the Cuban
experiment was the appropriation of all large personal property holdings by the state. This drove many wealthy
Cubans and foreign enterprises from the country. The failed Bay of Pigs invasion in April, 1962 by Cuban
expatriates, backed by the CIA, set the US and Cuba on a path to become political antagonists. The planned
installation of Soviet missiles in Cuba in 1961 brought the world close to a nuclear war. In 1961 the US imposed a
punitive economic embargo on Cuba. The US embargo had extra-territorial intentions; seeking to prevent all other
world economies from doing business with Cuba. Its purpose was and continues to be explicit regime change in
Cuba. The US embargo on Cuba has been tightened and relaxed, re-tightened and re-relaxed, over the past 50
decades.
Located only 90 miles from the Florida Keys, geography places the US and Cuba within each other’s sphere of
influence. Based on size and global economic impact Cuba should not be as globally relevant as it has made itself.
Cuba remains, today, very much a topic of US political debate. The Cubans of Florida, many of whom have
amassed large wealth, continue to have undue political influence. Cuba was once the largest supplier of sugar to the
US. It was also one of the favored US vacation locations within the Caribbean. Recent discoveries of oil close to
Cuba make its resources of strategic interest to the US. Cuba has emphasized education as a social policy. The
result is a highly educated population and labor force. Cuba has more doctors per capita than any other economy in
the world. It has developed a global leading biotechnology cluster which has produced several breakthrough cancer
drugs and diabetes therapeutics.
The US embargo has severely limited the business investments in Cuba by most global enterprises. (Note: Firms
doing business with Cuba are not permitted to do business in the US.) The result has been limited economic growth
in Cuba. More recently, Cuba has become a place of economic interest for China.
COURSE OBJECTIVES
The primary objective for this global business field research program is to help students learn the challenges a
company faces in doing business in a global economy. Cuba offers us an opportunity to learn about doing business
in an environment where political influence on business is strong, where business investment opportunities are
constrained by Cuban government policies, and where the essential institutions and economic infrastructure
necessary for market-based enterprise is lacking. We have learned that the best way for our students to learn, really
learn, is to get them on airplanes and to take them to foreign economies and have them learn first-hand by observing
companies and speaking with executives in those economies. We cannot replicate the “magic” of being in a foreign
market in a sterile classroom in Los Angeles. More specifically, we are interested in the unique challenges Cuban
companies face competing globally, and what challenges multinational companies encounter doing business in
Cuba. The broad learning objectives are:









MOR 592
Enhance expand students' knowledge and understanding of international business.
Develop students’ appreciation of cultural differences.
Expose students to foreign business practices.
Examine the interplay between politics, economic systems, and business
Analyze and appreciate the impact of foreign policies of nations on other nations
Identify institutional voids and their impact of commercial activities
Synthetize their learning via the undertaking of a research project focused on Cuba and its business
practices.
Project the effect of the removal of the US economic embargo on the Cuban economy and business
Identify future opportunities for trade and investment with Cuba
Cuba Business Field Research Program – December 2013/January 2014
2
ORGANIZATION OF THE COURSE
There are three parts of the course:
Part I – Pre-Trip Preparation
Two intensive seminars are scheduled before the international field study trip to Cuba. These sessions will
introduce you to a) important political and economic issues in Cuba, b) the business, economic, political,
cultural, and institutional environment of Cuba, and c) business and managerial practices Cuba. Sessions will
be held on November 10 and December 8.
During this Pre-trip Preparation, you will be required to do background reading, watch videos and movies about
Cuba. Students, in teams, will be required to make brief presentations to the class during the second of our two
pre-trip seminars. (See descriptions of these assignments later in the syllabus). Attendance and active
participation at all of the pre-trip class sessions is mandatory.
Part II – International Cuba Field Study Trip
You will spend12 nights and 13 days in a Cuba gaining first-hand information about the government, business,
economic/financial, political/regulatory, cultural/social, and institutional environment of that country. During
this time period, you will attend plenary sessions with the Cuban government, and the US Interests Section, visit
companies to learn about how business is conducted in Cuba. You will also visit sights to learn about the
cultural, historic, economic, and institutional environment in which business takes place in Cuba.
During the Cuba field study trip you will be required to complete a research survey instrument that will assist
you in analyzing the institutional voids within Cuba. The survey research will require you to gain a
comprehensive understanding of impact that the presence and/or absence of supporting institutions has on the
success and failure and growth potential of businesses in Cuba. Attendance and active participation at all of
these visits and experiential exercises is mandatory.
Part III – Integration Report of Learning from the Cuba Business Field Research Program
At the end of the field study trip, as an individual, or in small groups, prepare a final project integrating the
learning from all of the components of the program. Contribution to the final report is mandatory.
Final Report Due: Tuesday, January 14th, 12 noon
COURSE EVALUATION
This program is graded on a Credit/No Credit basis.
Class Participation and Attendance (Individual)
Comparative Institutional Voids Research Survey (Individual)
Post Cuba Trip Report (Group)
Credit/No Credit
Credit/No Credit
Credit/No Credit
Failure to receive credit in any single component of this course will result in No Credit for the entire course.
Students may be required to resubmit work that is considered substandard.
Reasons for Receiving No Credit for the Course
Attendance and Participation
1) Missing either of the pre-trip class sessions will result in receiving no credit for the course. If you need to
miss one of the pre-trip class sessions, you must be excused by your professor, and you must submit makeup work for your absence.
2) Missing any of the visits/activities during the international field study trip will result in receiving no credit
for the course.
3) Students who consistently come to class unprepared will receive no credit for the course.
MOR 592
Cuba Business Field Research Program – December 2013/January 2014
3
Failure to Submit Course Deliverables
1) Failing to complete the comparative institutional voids survey with sufficient quality of analysis, and
submit it on time
2) Failing to participate in the final group integration report
Behavior
As part of this trip, you are a representative of the USC Marshall School of Business and your behavior during
the trip affects the reputation of USC and the Marshall School. Therefore, you are expected to behave
professionally during the trip. Inappropriate behavior during the trip (e.g., rude behavior during company visits,
drunkenness, etc.) will result in receiving no credit for the course and additional financial penalties may also
apply. In addition, violations of the University Student Conduct Code will be referred to the Office of Student
Judicial Affairs and Community Standards (see http://www.usc.edu/student-affairs/SJACS/).
CUBA BUSINESS FIELD RESEARCH TRIP
We will be making an exciting trip to Cuba during Winter Break (December 29 – January 11). Our field research
trip will include both time in Havana, Cuba’s capital, and the rural country side of Cuba. In order to fully appreciate
the extent of the resources (natural, human, industrial, and scientific), Cuba’s comparative advantages and
disadvantages, the quality of its institutions and infrastructure, and the culture and attitudes of its people, we need to
move across as much of Cuba as we can in 12 days. We need time in rural communities and in the capital. We will
do this by visiting Cienfuegos and Trinidad, and by spending time in Havana. Two important plenary sessions are
planned. We need to research both the official positions of the Cuban and US governments, and the reality on the
“street.” We will attend a plenary session with Cuban government officials from different Cuban ministries
(Ministry of Trade, Ministry of Economy, and Ministry of Foreign Relations) and a final briefing from an official at
the US Interests Section in Cuba. In addition, you will be visiting Cuban joint ventures, and multinational
corporations in Cuba. You will also have the opportunities during you own free time to investigate different forms
of retailing and the emerging new private business sector in Cuba. Several cultural visits including a visit to Old
Havana, Havana Club Rum museum, Partagas Cigar Factory, and local tourist attractions will be arranged during the
trip. We will spend our weekend examining the tourism potential of Cuba.
COURSE MATERIALS AND CLASS WEBSITE
COURSE WEBSITE: On Blackboard at http://blackboard.usc.edu
There is no assigned textbook or course reader for this course. Articles and links to articles will be posted to
Blackboard. You should make it a habit of checking Blackboard regularly to look for newly posted materials.
ACADEMIC INTEGRITY
The following information on academic integrity, dishonesty, and the grading standard are placed here at the
recommendation of the School of Business Administration Faculty and are taken from the Faculty Handbook.
“The University, as an instrument of learning, is predicated on the existence of an environment of integrity. As
members of the academic community, faculty, students, and administrative officials share the responsibility for
maintaining this environment. Faculty have the primary responsibility for establishing and maintaining an
atmosphere and attitude of academic integrity such that the enterprise may flourish in an open and honest way.
Students share this responsibility for maintaining standards of academic performance and classroom behavior
conducive to the learning process. Administrative officials are responsible for the establishment and maintenance of
procedures to support and enforce those academic standards. Thus, the entire University community bears the
responsibility for maintaining an environment of integrity and for taking appropriate action to sanction individuals
involved in any violation. When there is a clear indication that such individuals are unwilling or unable to support
these standards, they should not be allowed to remain in the University.” (Faculty Handbook, 1994: 20)
Academic dishonesty includes: (Faculty Handbook, 1994: 21-22)
MOR 592
Cuba Business Field Research Program – December 2013/January 2014
4
1.
2.
3.
4.
Examination behavior - any use of external assistance during an examination shall be considered academically
dishonest unless expressly permitted by the teacher.
Fabrication - any intentional falsification or invention of data or citation in an academic exercise will be
considered a violation of academic integrity.
Plagiarism - the appropriation and subsequent passing off of another’s ideas or words as one’s own. If the
words or ideas of another are used, acknowledgment of the original source must be made through recognized
referencing practices.
Other Types of Academic Dishonesty - submitting a paper written by or obtained from another, using a paper or
essay in more than one class without the teacher’s express permission, obtaining a copy of an examination in
advance without the knowledge and consent of the teacher, changing academic records outside of normal
procedures and/or petitions, using another person to complete homework assignments or take-home exams
without the knowledge or consent of the teacher.
The use of unauthorized material, communication with fellow students for course assignments, or during a mid-term
examination, attempting to benefit from work of another student, past or present, and similar behavior that defeats
the intent of an assignment or mid-term examination is unacceptable to the University. It is often difficult to
distinguish between a culpable act and inadvertent behavior resulting from the nervous tensions accompanying
examinations. Where a clear violation has occurred, however, the instructor may disqualify the student’s work as
unacceptable and assign a failing mark on the paper.
MOR 592
Cuba Business Field Research Program – December 2013/January 2014
5
COURSE OUTLINE AND SCHEDULE (tentative)
Session Date
Topic
Deliverables & Attire
1
11/10 Course Introduction and Overview
Student Casual Attire
4-8 pm History, Politics, and Economy of Cuba
Watch: 13 Days (Cuban Missile Crisis)
Read: CIA World Fact Book - Cuba
Cuba: Country Report, Economist Intelligence Unit
“Cuba – Late Colony, First Socialist State” in Modern Latin America (1997),
Chapter 8, Oxford University Press, pp. 263-293.
2
12/8
Business Environment in Cuba
Student Casual Attire
4-8 pm Read: “Note on Economic Sanctions on Cuba,” Harvard Business School Case (2002)
“Rescuing Old Havana” in Phillip Peters (2001), Lexington Institute, pp. 1-16.
Selected articles by Philip Peters (http://www.lexingtoninstitute.org/us-policy)
12/29-1/211
MOR 592
Cuba Trip: Global Business Field Research Program
1/11
Comparative Institutional Voids Research Survey
1/14
Final Integration Report Due at 12 noon
Cuba Business Field Research Program – December 2013/January 2014
Business Attire
Research Survey due
Cuba Report due
6