Lappeenranta University of Technology
CS30A 7220 MANAGING IN THE GLOBAL ENVIRONMENT1
Intensive Course – Fall 2015. Academic Year 2015-16.
Instructor: Karol I. Pelc, Ph.D., Professor of Technology and Innovation Management
Michigan Technological University, E-mail: kipelc@mtu.edu, URL: www.sbea.mtu.edu/~kipelc
Course time and credits: September 28 – October 2, 2015. Total 20 hrs; Total academic credits: 3
Textbook (recommended but not required): Bartlett, C. A., Beamish, P. W. Transnational Management: Text,
Cases, and Readings in Cross-Border Management, 7th Edition, McGraw-Hill Irwin, New York 2014, ISBN 978-007-802939-4.
Prerequisites: Basic knowledge of management and economics.
Course summary: Course topics include the following: Identification of basic components of the global
environment. Management issues of global organizations, markets and intellectual capital. Impact of international
political, economic, technological, cultural and social environment on business management. Strategic challenges
for multinational companies. Creating and managing international joint ventures, alliances and projects. Effects of
digital economy and social media in the global business environment.
Course objectives: The students will gain knowledge of transnational organizations and their evolution under
conditions of business globalization. They will become familiar with the management issues and roles of managers
in global business networks, and will learn how to initiate, organize and evaluate collaborative operations. Review
of conditions for global business expansion and development of international alliances and ventures will include
case studies.
Method: The course consists of four lecture sessions (two lectures each) and a workshop session. In addition to
attending the lecture sessions, combined with participation in class discussions, the students will prepare reviews of
assigned case studies for discussion during the workshop session. The lecture materials and case study texts will be
made available to students in advance before the respective class sessions.
Grades and requirements:
General requirement: Attendance and participation in ALL CLASS SESSIONS is expected. 50% class
attendance and participation is required as an absolute minimum.
Grade for the course will be based on scores for the following elements accumulated during the whole time of the
course:
 Class discussion
10%
 Case study reviews (2)
10%
 Final exam
80%
Final (letter) grade for the course will be based on the accumulated numerical score according to the Table in
Appendix 1 (see p.4).
Class discussion Students are expected to participate actively in ALL class discussions related to lectures and to
case study reviews. Discussions will be held during lecture and workshop sessions. The discussion activity and
contributions will be monitored and graded.
Case study reviews Source materials for case study will be made available to the students in the early stage of the
course. List of cases and questions for each case study are included in the syllabus.
Each student is expected to sign-up for one case review. Those students will serve as assigned reviewers and will
receive grades for their short written review (one page) and for contribution to class discussion on the selected case.
The reviewers are expected to update information on the case company by using current information available
in the Internet. The written review should present replies to two questions chosen by student from those listed for
the selected case. The written review should be submitted in printed (hard) copy on the day of the workshop session
when the case study will be discussed in class.
All students are expected to read both case studies listed in the syllabus and to participate in discussion.
Examination Students are required to pass the final written exam. It will be given during the regular examination
session of the University. Date and place of the exam will be determined by the University.
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© Copyright K. I. Pelc 2015
COURSE OUTLINE:
TOPICS AND RELATED TEXTS
SESSION 1.
Introduction: The course objectives and teaching/learning method. Review of the syllabus requirements.
Class discussion, case review and research project procedures.
The fable of modern management.
Lecture 1. The process of globalization
Motivation and means for globalization of business. Evolutionary aspects of global
business growth. Cultural and organizational issues.
Lecture 2. Developing a global transnational organization
Managerial challenges: Integration vs Responsiveness.
Organizational structures.
SESSION 2.
Lecture 3. Digital economy – global aspects
Innovativeness, productivity, transformations of labor market and global mobility.
Mass-scale collaboration and crowdsourcing. Global digital divide.
Lecture 4. Creating global strategic alliances and managing joint ventures
Strategic alliances: forms, selection of partners, obligations.
Joint venture: evolution process, scope of activity, control systems.
SESSION 3.
Lecture 5. Building multinational capabilities
Personality of a global business manager. Leveraging corporate performance and
implementing strategies of global expansion. Building global capability of a corporation.
Lecture 6. Social media and networking in global business
Classification of social media (SM) and social networks in business management.
Business process support by social media/technologies. Innovation dynamics in social
networking. Penetration rates and interactivity levels in different countries.
SESSION 4.
Workshop: Review and discussion of case studies
Case review No. 1 Lincoln Electric (U.S./India) : Global Business Expansion
(Bartlett & Beamish textbook, 6th edition)
Case review No. 2. Levendary Café: The China Challenge – Strategic Confusion in Business
Globalization (Bartlett & Beamish textbook, 7th edition)
SESSION 5.
Lecture 7. Changing role of global companies
Multinational enterprise (MNE) reputation. Principles of the U. N. Global Compact.
MNE in emerging markets.
Lecture 8. Foresight and roadmapping in a global organization
Introduction to foresight methodology, roadmapping process for technologies, products
and markets in a global organization.
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LIST OF QUESTIONS FOR WRITTEN REVIEWS AND CASE DISCUSSION IN CLASS
Case No. 1. Lincoln Electric (U.S. / India) : Global Business Expansion
NOTE: It is recommended that you google the subject “Lincoln Electric. Company History” to find updated
information in addition to the case material
1. Should Lincoln Electric expand into India by investing in a major production facility there? Explain reasons for
expansion and list potential benefits and threats.
2. If Lincoln Electric decides to enter India, what mode of entry should the company choose (acquisition, wholly
owned operation, or joint venture)? Analyze each option.
3. Why profitability of Lincoln Electric may be different around the world? Identify potential barriers that might
inhibit Lincoln Electric from attaining high profitability in certain countries, and potentially favorable conditions
that might increase profitability in other countries.
4. What factors should determine how much Lincoln Electric adapts its core incentive “pay-for-performance”
management practices to local labor market norms? Should the company avoid going to countries that restrict
incentive “pay– for- performance” or should it take its management system with it wherever it goes? Discuss all
options and select one you believe to be optimal.
Case No.2: Levendary Café: The China Challenge – Strategic Confusion in Business Globalization
1. What are the main motives and expectations for expansion of Levendary Café (LC) into China? Please list them
in order of importance and assess chances of success.
2. Analyze the organizational chart of LC and discuss configuration and features of that structure. Is it suitable for
global expansion of LC business? Why or why not? Discuss potential problems and suggest improvements if
needed.
3. Identify problems and inconsistencies of Levendary China with the parent company’s policies and procedures
including such as financial reporting, design standards, service offerings etc.
4. What dimensions of global business apply to Levendary China’s assessment in the context of the company
strategy? Which of those dimensions dominate the local strategy of Mr. Chen?
5. What kind of adjustments would you recommend for the future operations of Levendary China? If needed,
propose actions and their sequence to be undertaken by the top management of the company. Justify each proposed
solution and assess chances of success.
List of Additional Literature (Not Required)
Additional literature may be studied according to individual interest of the student. Those books are not required
and there will be no required reading assignments from them.
Atkinson, R.D., McKay, A. S., Digital Prosperity: Understanding the Economic Benefits of the Information
Technology Revolution, Information Technology and Innovation Foundation, Washington, D.C. 2007.
Benkler, Y., The Wealth of Networks: How Social Production Transforms Markets and Freedom, Yale University
Press, New Haven and London 2006.
Conklin, D. W., The Global Environment of Business: New Paradigms for International Management, Sage Publ.,
Thousand Oakes 2011.
De Kare-Silver, M., E-Shock 2020: How Digital Technology Revolution is Changing Business and All Our Lives,
Palgrave Macmillan, Basingstoke, Hampshire, and New York 2011.
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Gerencser, M., Van Lee, R., Napolitano, F. , Kelly, C. , Megacommunities: How Leaders of Government, Business
and Non-Profits Can Tackle Today's Global Challenges Together , Palgrave Macmillan, New York 2008.
Hill, C. W. H., Global Business Today, McGraw-Hill/Irwin, New York 2010.
Malecki, E., Moriset, B., The Digital Economy: Business Organization, Production Processes, and Regional
Developments, Routledge, London and New York, 2008.
Nambisan, S., Sawhney, M., The Global Brain: Your Roadmap for Innovating Faster and Smarter in a Networked
World, Wharton School Publishing, Upper Saddle River, N.J., 2008.
Prahalad, C. K., Krishnan, M. S., The New Age of Innovation: Driving Co-created Value Through Global Networks,
McGraw-Hill, New York 2008.
Tapscott, D., Williams, A. D., Wikinomics:Rebooting Business and the World, Penguin Group, London, New York
2010.
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APPENDIX 1
TABLE OF COURSE GRADES
MAX.
Excellent
“5”
LOWEST SCORES
Very Good
Good
“4”
“3”
Satisfactory
“2”
Sufficient
“1”
Class discussion*)
10
9
8
7
6
5
Case study review
10
9
8
7
6
5
Final exam
80
72
64
56
48
40
Course (total)
100
90
80
70
60
50
*) Class discussion will be graded on basis of number and quality of statements made in class
discussion, including the discussion related to case reviews.
COURSE GRADE SCALE:
“1”= Sufficient
“2”= Satisfactory
“3”= Good
“4”= Very good
“5”= Excellent.
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