MGT 695 – GLOBAL STRATEGY (spring)
Professor Walter Ferrier
Spring 2012
JANUARY 2
What is Globalization?
Framing questions: What are alternative conceptualizations and perspectives of the phenomenon known as
globalization? What are its effects and consequences?
Topics:
● Globalization
● The institutions and effects of globalization
● Overview of Exporting Project (due Jan 13-14)
Web:
Web:
Web:
Article:
Article:
Article:
Globalization: A complex and multifaceted force (Globalization101.com)
Globalization with a Human Face (Reason.com)
National measures and rankings of globalization (Swiss Institute of Technology)
Honda boosts exports from U.S. (Google Drive or DropBox)
Apple’s shift to U.S. manufacturing (Google Drive or DropBox)
Cinnabon finds sweet success in Russia (Google Drive or DropBox)
Auto Industry Global Supply Chain
Framing questions: How do automotive manufacturers configure their global supply chains for major
components and final assembly?
Task: Go with your teammates to visit a Lexington-area auto dealer. [In an effort to minimize redundancy, please
send a quick note to walter.ferrier@uky.edu when your team chooses a particular dealership.]
● Examine the window stickers of a variety of models. Take note of the country of final assembly and the
countries (and percent) of manufacture for the engine, transmission, and other components.
● If you are harassed by a salesperson, tell him/her that you are shopping for a car for Harvie
● Teams will map out and discuss their findings in class on JAN 3.
JANUARY 3
The Context of Global Strategy
Framing questions: What are the relevant elements of the international political economy and scope of national
trade and investment policies that impact a firm’s global strategy and operations? What are the intended and
unintended effects on nations, companies and people?
Topics:
● Comparative advantage
● Trade and foreign investment policy
● The institutions and effects of globalization
Tasks:
● Present and discuss auto manufacturers’ global supply chain configuration maps
○ Country Analysis Memo Due by 9:00 p.m. JAN 4.
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Web:
Web:
Web:
Web:
Web:
Web:
Comparative Advantage (NetMBA.com)
The Big Mac F/X Index (wikipedia.org)
What's So Scary About Trade and the WTO? (University of Wisconsin)
NAFTA Myths vs. Facts (U.S.T.R.)
Anti-NAFTA Fact Sheet (Public Citizen)
The Outsourcing Bogeyman (Foreign Affairs)
JANUARY 4
Country Selection and Foreign Market Entry Modes
Framing questions: Given all the complexities and risk, why/how should companies take advantage of
opportunities in the global economy? How do companies decide which mode of entry to use to penetrate foreign
markets?
Topics:
● Country/market selection and foreign market entry modes
Task:
● Compile, discuss, and analyze data/info for your team’s assigned country
Web:
Resources:
Article:
Article:
Foreign Market Entry Modes (QuickMBA.com)
Country Analysis Resources (Google Drive or DropBox)
Eclectic Theory Entry Mode (Google Drive or DropBox)
Alpha-Romeo plots return to America (Google Drive or DropBox)
FEBRUARY 5-6
International Strategy
Framing questions: What are the different types of international strategies and their key dimensions and
characteristics? How do companies know when to standardize products and supporting value-creating activities?
How do they know when to adapt them in accordance with differences in national tastes/preferences and other
globalization drivers? Given a company’s need to choose and implement both a foreign market entry mode and a
particular type of international strategy, under which conditions will an international joint venture or alliance be
the optimal?
Topics:
● Globalization drivers
● International strategy alternatives
● Global value chain configuration and integration
Web:
Article:
Article:
Article:
Article:
Global Strategic Management (QuickMBA.com)
Global Strategy…In a World of Nations? (Google Drive or DropBox)
KFC’s Radical Approach to China (Google Drive or DropBox)
McDonald’s first-ever vegetarian restaurant (Google Drive or DropBox)
Starbuck’s plays to local Chinese tastes (Google Drive or DropBox)
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Task:
● Develop and present (5 min.) a general plan for your Project Connect company to internationalize:
○
Which aspects of the organization’s operations can be shifted to other locations? Why?
○
Which aspects must be standardized vs. localized? Why?
○
How does the organization integrate international operations?
○
What type of international strategy is this?
FEBRUARY 7-8
International Joint Ventures
Framing questions: Given a company’s need to choose and implement both a foreign market entry mode and
a particular type of international strategy, under which conditions will an international joint venture or alliance
be the optimal? How does national culture influence both the preferred structure of and negotiation process for
international joint ventures?
Topics:
● International joint ventures/alliances as strategic vehicles
● The role of culture in international business
Case Study:
Nora-Sakari: A Proposed Joint Venture in Malaysia (Google Drive or DropBox)
Task: Put yourself in a consultant’s shoes and provide either Nora or Sakari with your specific
recommendations as to the motivations, structure, and modes of cooperation for the proposed joint
venture. Your recommendations should explicitly consider:
● What is Sakari’s overall international/regional strategy? What does it want?
● What is Nora’s overall international/regional strategy? What does it want?
● What role should the joint venture play in facilitating each company’s intended
strategy?
● Which are really the most important strategy-level issues related to:
○ Firm capabilities,
○ entry mode choice,
○ international strategy and implementation,
○ timing
FEBRUARY 20
Global New Product Launch Simulation (cont.)
Negotiations
● see schedule below
Post-Simulation Briefings and Report
● Oral (5 minutes) and written (5-8 pages) about:
○ Joint venture deal(s) in which your team will participate or helped facilitate:
■ Participants, structure, roles & responsibilities, contributions of partners, etc.
■ Contracts (if any – may be a single/common contract to be included by JV
partners and governments in team report; does not count against text or
diagram page counts)
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Morning
Cohort
How JV will facilitate your team’s international strategy, entry mode, government
objectives, etc.
Negotiation process
■ Log/timeline of negotiations: Which teams, issues discussed, agreements,
differences, issues won/lost, reasons, conclusions, etc.
What would you do differently, if given the chance?
Special note to teams that were not party to any JV deals
■ Describe why you were not part of a deal:
● Strategic reasons, negotiation process reasons, etc.
8:00-9:00 a.m.
■ Simulation Kick-off
9:00-2:30 a.m.
● Negotiations
2:30-3:45 p.m.
■ Post-Simulation Oral Briefing
Afternoon
Cohort
Post Negotiation Memo – DUE: FEB 25, 5:00 p.m.
9:30-10:30 a.m.
■ Simulation Kick-off
10:30-3:45 p.m.
● Negotiations
3:45-5:00 p.m.
■ Post-Simulation Oral Briefing
Post Negotiation Memo – DUE: FEB 25, 5:00 p.m.
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