INTERNATIONAL BUSINESS STRATEGY
國際企業經營策略
National Taiwan University
College of Management
Graduate Institute of International Business
Spring 2010
Instructors: Hwang Jan-Hong, Peter
Time: 14:20-17:20, every Wednesday
Classroom: BLDG. 2 COLLEGE OF MANAG (管二 206)
Office Hours: by appointment
Contact: Tel.: 02-33669769 e-mail:
COURSE DESCRIPTION:
This course attempts to develop an understanding of international business strategy and
the business environment in the Asia-Pacific region.
The first part of the course covers firm level strategies including global expansion,
international alliance, international mergers and acquisitions, foreign direct investment
and outsourcing. The second part of the class introduces socio-cultural, economic, and
political underpinnings of growth and development in the Asia-Pacific region. The
economic, political and social institutions that evolved in the region are emphasized. The
course is expected to be interactive and student participation will be an integral part of
the class.
EVALUATION:
Your grade will be determined based on the following criteria
•
•
•
•
Class Participation
20%
Class activities
40%
(including case presentation and class exercise)
Group Project
20%
End of term EXAM
20%
GENERAL GUIDELINES:
Students are expected to be familiar with the basic concepts of strategic management and
international business. It is hoped that all of you have taken functional courses and,
hopefully, corporate strategy as well.
This is a discussion-oriented class where all students are expected to participate. The text
and the readings cover many of the issues and challenges in depth and provide structure
for the discussion in class. You are expected to read all of the assigned materials before
class and to be prepared to discuss them. Please also inform me if you must be absent,
leave the class early, or arrive late for professional reasons. Please turn off your mobile
phones while you are in class. Unless it is absolutely essential, please refrain from
leaving the class in the middle of a discussion.
Case: see below
Class Exercise: see below
Group Project: will be addressed in the introduction of the course.
COURSE SCHEDULE AND READINGS
Topic
W1
• Introduction
• Asia Rising
• Cultural differences:
East and West
W2
• Global Expansion:
Motivation and
Mindset
W3
Reading
1. Asia's Reemergence' Steven Radelet, Jeffrey Sachs,
Foreign Affairs, New York, Nov/Dec, 1997, Vol. 76,
Iss. 6.
2. The Myth of Asia’s Miracle”, Paul Krugman
(http://web.mit.edu/krugman/www/myth.html )
3.“The challengers” (Emerging market
multinationals), The Economist, 12 January 2008.
Class activities:
Forming Groups
1. Bartlett, Ghoshal, and Birkinshaw, Expanding
Abroad: Motivations, Means, and Mentalities in
Transnational Management, Chapter 1
2. Bartlett, Ghoshal, and Birkinshaw, 1-1, The
Tortuous Evolution of the Multinational
Corporation.
Case discussion:
Acer Inc.: Taiwan’s Rampaging Dragon (Harvard
Business School, 9-399-010)
1. What motivated Acer to enter the US market?
2. Did Acer have a strategic intent (long-term)?
What was it? Does it make sense to you?
3. How do you assess the risk of entering US?
(Could Acer bear the losses if it fails?)
4. Do you think Acer could have successfully
integrated Altos at the time?
5. Should Mr. Shih go for the Aspire project?
6. How to improve Acer’s strategic move of
going global in hindsight?
Class Exercise
1. Compare and contrast Asia with other major
economic entity(ies) in terms of the economic
prospect.
• Global Expansion:
identifying, Building
and Leveraging
Capabilities
1. Bartlett, Ghoshal, and Birkinshaw, Developing
Strategic Capabilities: Building Layers of
Competitive Advantage, Chapter 3
Case discussion:
Komatsu Limited (BGB, Case 3-2)
1. What are Komatsu’s core competences?
2. How Komatsu develop its capabilities over time?
3. How should Komatsu compete in the future?
W4
Class Exercise–Global Expansion: Motivations
and Mindset
Find a company that has expanded
internationally.
1. Elaborate and assess the motivation of this
company’s global expansion.
2. Do you think this company is ready for global
expansion?
• Global gamesmanship
and market entry
1. McMillian, I., Ven Puten, A. and McGrath, R.
2003. Global Gamesmanship. Harvard Business
Review.
Case discussion:
W5
Dell Computer Corp.: Investment in Malaysia as a Global
Strategic Tool
1. Why should Dell go global? What is Dell’s
strategy in globalization?
2. How does the global strategy work for the interest
of Dell?
3. Why did Dell choose Malaysia?
Class Exercise–Global Expansion: Identifying and
Building Capabilities
Find a company that has expanded
internationally.
1. What are the capabilities that are necessary in
order to make the global expansion a success?
2. In your opinion, how did this company developed
its capabilities over time?
3. How their capabilities facilitated globalization
and how globalization enhanced their
capabilities?
• International Alliance
1. Engaging in cross border collaboration: managing
across corporate boundaries BGB, Chapter 6 (pp.
559-573)
2. Hamel, G., Doz, Y.L. and Prahalad C.K.,
Collaborate with your competitors and win (BGB,
pp. 640-647).
Case discussion:
Eli Lilly in India: Rethinking the Joint Venture
Strategy
1. Did Eli Lilly pursue the right strategy to enter
the Indian market?
2. How would you assess the overall performance
of the JV?
3. What did the partners learn from the JV?
W6
Class Exercise-Global gamesmanship and market
entry
Find a company that has expanded
internationally.
1. Identifying the market entry strategy of this
company.
2. Do you think the company has chosen the
best route to expand into international
markets?
W7
Holiday
• M&A
(Cross-Border M&A)
W8
1. Goold, M & and Campbell, A.1998. Desperately
seeking synergy. Harvard Business Review.
Case discussion:
HSBC Holdings
Class Exercise– Analyzing an International
Alliance
Find an example of a company that has
successfully pursued an alliance strategy in
recent years and identify the potential benefits
and costs from this alliance.
1. Assessing the potential for the company to create
2.
3.
4.
5.
W9
value through this alliance.
How is the alliance structured?
What roles do the partners play in managing the
alliance?
What problems do you expect to occur in
managing the alliance? What mechanisms could
be adopted to prevent these problems?
What criteria would you use to evaluate the
alliance?
Mid-term
• FDI, Outsourcing and
globalization
1. “Gravity's pull” (Information Technology in
India), The Economist, 15 December 2007
Case discussion:
Infosys Consulting in 2006: Leading the Next
Generation of Business and Information
Technology Consulting, (Stanford, SM-151,
05/16/06)
1. How well is Infosys Technologies doing?
What is the company’s strategic position in the
IT industry and what are its distinctive
competencies?
2. How would you characterize and evaluate the
most important strategic options confronting
Infosys Technologies?
3. Does Infosys Technologies’ move into the IT
consulting market make strategic sense to
you?
W10
Class Exercise– Analyzing a Cross-Border M&A
Find an M&A case that you are interested in.
1. What motivates the M&A?
2. What are the costs involved in integrating the two
companies?
3. In your opinion, do you think the M&A make
sense? If not, what should have been the correct
strategy for the acquirer?
W11
W12
• Regional Integration:
ASEAN
Survey of Southeast Asia (Economist, February 12,
2000)
China and Taiwan
Survey: China, The Economist. March 23, 2006
W13
Japan
Survey: Japan, The Economist. Oct 6th 2005
W14
India
Survey: Business in India. The Economist. June 1st
2006
W15
Korea
Survey: South Korea, The Economist, April 19th,
2003
W16
Group Presentations
W17
Group Presentations
W18
Final