LOYOLA MARYMOUNT UNIVERSITY
College of Business Administration
MBAB/MBAG 641
INTERNATIONAL MANAGEMENT
SUMMER I 2003
Tuesday 4:00 p.m.- 7:00 p.m., Hilton 109
Instructor: Dr. Yongsun Paik
Office: Hilton 215
Phone: (310) 338-7402
E-mail: ypaik@lmu.edu
Office Hours:
T 11:30 a.m. - 12:30 p.m.
R 11:30 p.m. - 12:30 p.m.
Course Goal and Objectives
U.S. business is intertwined with the world as never before. Competition is increasingly global, and
firms have become international in their sales, production, investment, financing and sourcing. Foreign
competition has seriously affected some industries (turbine generators, shoes, sewing machines),
fundamentally changed others (automobiles) and seriously challenged even the "best" (semiconductors,
computers, aircraft).
Different economic, political and socio-cultural environments around the world challenge managers
with opportunities and risks. The goal of this course is to help you achieve understanding of the international
business environment and evaluate the agenda facing managers operating in international business contexts.
Specifically, the course has the following learning objectives:
1. To familiarize students with the major concepts and paradigms in international management.
2. To enhance an awareness of the impact of internationalization on firms
3. To develop the ability to analyze MNC’s strategies and behaviors.
The course will build on concepts developed in the MBA core courses, but no previous international
coursework is required.
The basic pedagogical approach of the course will be case discussion. Short lectures and discussions
of reading assignments will supplement the case analysis. Reading assignments are your responsibility and
they will in many cases not be discussed specifically in class.
Course Materials
Two publications are required:
TEXT
Beamish, et al., International Management: Text and Cases, 5th ed. (hereafter abbreviated IM), Irwin
McGraw-Hill, 2003
READING
A collected set of readings and cases (hereafter abbreviated RR) is available in class.
1
Grading and Requirements
The course grade will be based on:
Individual Work:
* Class participation
* Midterm Exam
* Final Exam
Group Work:
* Group written report
* Group oral presentation
40 pts
40 pts
40 pts
50 pts
30 pts
(20points each)
200 pts
(100%)
The following is the grading scales for this course. It is generally assumed that every student will
make his/her best effort and therefore will seldom fall below a B-.
Grading Scales
186 & above: A
175 - 185: A166 - 174: B+
158 - 165: B
150 - 157: BClass participation will be graded based on the quality of contributions to class discussion, including useful
questions addressed to the instructor or to students making presentations. Preparation is criticalreading
assignments are expected to be completed prior to the class meeting. Students are strongly encouraged to
participate in class discussion. With regard to quality, some of the criteria normally applied are;
1. Are the points that have been made relevant to the discussion?
2. Are the points simple recitations of case facts or have implications been drawn?
3. Is there evidence of analysis rather than expressions of opinions?
4. Are the comments linked to those of others?
5. Did the contribution further the class' understanding of the issues?
Each student will begin the course with 21 points in class participation, and can lose points by repeated
absence from class or complete lack of class participation.
Two exams will be given in class. The final exam will NOT be cumulative. The exams will consist
of essay questions. Material for the exams will come from the following sources: 1) class lecture 2) assigned
readings, 3) class discussion, 4) in-class video, and 5) any in-class exercises and handouts. Lectures are
primarily designed to address the major points from the readings. Consequently, students who keep up with
readings are expected not only to understand lectures better but also to earn a better grade. Please bring a blue
book to each exam.
The group written report is a team project that studies a specific topic related to the subjects
covered in class. For example, you may research corporate and/or business strategies of an MNC in the U.S.
consumer electronics market. As the top competitors in the U.S. consumer electronics market are all foreign
2
companies (e.g., Sony, Matsushita, Philips, Samsung), it would be interesting to study their foreign market
entry and expansion strategies. Specifically, how do they design and manage international joint ventures with
a U.S. firm? How do they acquire the services of the domestic distributors to market their products? Another
example would be to study a U.S. firm operating overseas. How does NAFTA or a recent financial crisis in
East Asia affect business strategies (e.g. outsourcing) of the firm operating in Mexico or Indonesia?
Followings are some more examples you may choose from:
Entry mode strategies of U.S. firms
Expatriate management - training and development
Comparative study on performance appraisal and compensation
Ethical issues facing an MNC
All supporting documentation and data analyses should be included in the appendices. The written report
should be typed, double spaced, and no more than 20 pages (excluding any appendices). The sources for all
material used in your report should be cited along with a bibliography. Each group should submit a one-page
memo by May 29 which summarizes its research plan, including the title of the topic, the name of a company,
a target region, etc. I will be glad to discuss your group project before you turn it in if you any have questions.
Group oral presentations will be based on the assigned cases and will be part of the class
discussion. Each group will make a one presentation on its selected case. You will have maximum of 30
minutes to present and discuss the assigned case for the class, with supporting analysis and evidence from the
case. Please choose one of the five cases numbered on this syllabus starting from May 29. Each group needs
to get an approval from the instructor before it proceeds with the project so that every group can work on a
different project. A guideline for group presentations on the case is attached to the end of this syllabus.
Groups presenting will be given group grades. Groups will be formed in the first class.
A Guideline for Success in the Course: This course is designed for MBA students who are fully
motivated to take an elective course of their choice. Please keep up with your reading so that you can avoid
excessive overnight reading right before an exam. A general rule of thumb is that study and preparation time
should take between two and three hours for every class meeting. Understanding the main points of each
article and integrating these points with your notes from my lecture is critical to your success in this course.
Please divide your work wisely throughout the semester, and start on your group project as early as possible.
Finally, to control free riders, peer evaluations will be given using a standard form at the end of the semester.
A negative evaluation from your group members may lower your course grade.
3
Date
5/20
5/22
CLASS SCHEDULE AND ASSIGNMENTS
Topic
Introduction Discussion of recent developments in the global environment and
key issues in the management of internationally-oriented corporations.
Readings: IM, Chapters 1, 2 & 3; Business Week, Is Your Job Next?; Greenspan,
International Trade: Globalization vs. Protectionism; Moller, Growing Challenge
to Internationalism.
Video: Globalization – Winners and Losers
Cultural Clash in International Management Who are we? Who are they?
How can we minimize the risks of miscommunication and misinterpretation by
understanding different cultures?
Readings: IM, Chapter 15, Hampden-Turner, The Boundaries of Business: The
Cross-Cultural Quagmire; Markoczy, Us and Them.
Video: Managing the Overseas Assignment Valuing Diversity - Communicating
across Cultures
5/27
Internationalization and Overseas Manufacturing
The case provides information related to factors that Ted Telford and other
members of Intel site selection team considered in their visit to each of four
countries in Latin America. The case demonstrates the importance of operating in
a country with predictable, transparent rules of the game.
Class Case (Chapter 24): “Intel’s Site Selection Decision in Lain America” in
IM (pp.402-420)
Questions:
ƒ Why is Intel interested in investing overseas? Why does the company want to
invest in Lain America?
ƒ What characteristics does the company seek in a country where it will locate
its investment?
ƒ What are the pros and cons of each country on Intel’s short list?
Readings: IM, Chapter 5 & 10; Ferdows, Making the Most of Foreign Factories:
Kotabe, Efficiency vs. Effectiveness Orientation of Global Sourcing Strategy.
5/29
Foreign Market Entry and Expansion
The case presents the internationalization issue facing a U.S.-based fast food chain
in the mid-1990s. Issues involve whether or not the company should enter China,
if so when, and through which joint venture partner.
Case 1 (in RR): “Kenny Rogers Roasters in China (A)”
Questions:
ƒ Has Tony Wang made a valid assumption that China is a high potential
market for KRR?
ƒ Evaluate the timing of Wang’s decision to find a joint venture partner.
ƒ At what point in this process should a partner be selected?
ƒ Of the companies identified as potential partners-East City, China Great Wall
Trading, and D&Dwhich would be the best joint venture partner for KRR?
Readings: IM, Chapter 7, pp. 120-129; Hill et al., An Eclectic Theory of the
Choice of International Entry Mode; Vanhonacker, Entering China: An
unconventional Approach.
Video: Interview with Tony Wang
4
A one-page group project memo is due.
6/3
6/5
6/10
6/12
Management of International Joint Venture: International Negotiation
The case presents the perspective of a Malaysian company, Nora Holdings Sdn
Bhd (Nora), which was in the process of trying to establish a joint venture
company with a Finnish company, Sakari Oy (Sakari). The formation of a joint
venture seemed feasible since it would serve the needs of the two parent
companies that would offer complementary contributions to the joint ventures.
Despite parent companies' efforts, the negotiations had broken down.
Class Case (Chapter 28): “Nora-Sakari: A Proposed Joint Venture in Malaysia”
in IM (pp.469-484).
Questions:
ƒ How important is the joint venture to Nora and Sakari?
ƒ If the joint venture was important, why have the negotiations failed to this
point?
ƒ Should Nora and Sakari renegotiate?
ƒ If yes, how should they restructure the deal to reach a win-win situation?
Readings: IM, Chapter 7, pp. 129-139; Yan, Structural Stability and
Reconfiguration of International Joint Ventures; International Negotiating Styles.
MIDTERM
Ethics in International Business
The case deals with the ethical dilemmas managers often face in international
business. It focuses on the challenges of building a business in a depressed, postdevaluation economy as a young American manager contemplates how to respond
to a questionable request by a potential customer.
Case 2 (Chapter 45): “DSL de Mexico S.A.de C.V.” in IM (pp.693-703)
Questions:
ƒ What criteria will likely be used to judge Lane Cook’s performance in
Mexico?
ƒ What Strategic options does Lance Cook have in turning DSL de Mexico
around?
ƒ In evaluating Hernandez’s proposal, how important is it that Cook adhere to
U.S. standards?
ƒ What action would you recommend for Lane Cook?
Readings: IM, Chapter 14, Kohls, Resolving Cross-cultural Ethical Conflict:
Exploring Alternative Strategies; Sethi, Standards for Corporate Conduct in the
International Arena: Challenges and Opportunities for Multinational
Corporations. Andelman, Bribery: the New Global Outlaw.
Video: Ethics in International Business
MNC Strategy and Organizational Structure
This case involves the efforts of a president and CEO of an MNC as she struggles
with a major reorganization that does not seem to be working. Students are asked
to evaluate the role of headquarters in determining and coordinating business level
strategy as well as an optimal organizational structure.
Case 3 (Chapter 42): “GLOBAL Enterprises, Inc.” in IM (pp. 669-680)
Questions:
ƒ How would you describe GLOBAL’s strategy?
ƒ How would you describe GLOBAL’s formal and informal organization?
ƒ What are the strengths and weaknesses of GLOBAL’s organization?
5
6/17
ƒ What action would you recommend for Jennifer Copperman-Williams?
Readings: IM, Chapters 8 & 9; Ashkenas, Creating the Boundaryless
Organization; Lehrer & Asakawa, Unbundling European Operations: Regional
Management and Corporate Flexibility in American and Japanese MNCs
The Global Manager: How to Manage Political Risk
The case involves the decision on whether to continue to operate or abandon the
company's Nigerian joint venture. It also focuses on the role of the subsidiary
managers who is handling an LDC-based joint venture.
Case 4 (Chapter 38): “Larson in Nigeria – 1994” in IM (pp. 615-620)
Questions:
ƒ What are the three major issues confronting David Larson?
ƒ How would you recommend each of these issues be handled?
ƒ How do the roles of a subsidiary general manager differ between a joint
venture in a developed country and one in a developing country?
Readings: IM, Chapters & 12; Conklin, Analyzing and Managing Country Risks;
Akhter & Choudry, Forced Withdrawal from a Country Market: Managing
Political Risk; Frayne and Geringer, Challenges Facing General Managers of
International Joint Ventures.
6/19
6/24
No Class (Professor Out of Town)
Expatriate Management: Overseas Assignment and Training
The case focuses on the efforts of the President of the Asia-Pacific region, and his
Management Committee, as they try to increase the quality and quantity of
managers in the region. The region represents a huge, largely untapped market and
the lack of talented local managers has threatened Bristol Compressors’ position
there.
Case 5 (Chapter 37): “Bristol Compressors, Asia-Pacific” in IM (p.602-614)
Questions:
ƒ How important is the Asia-Pacific region to the future of Bristol
Compressors?
ƒ To what do you attribute Bristol Compressors’ performance problems in
the Asia-Pacific region?
ƒ Which option should Woods pursue?
ƒ What criteria are most important in making this decision?
Readings: IM, Chapter 11; Black & Gregersen, The Right Way to Manage Expats;
Paul, Creating a Global Mindset.
Video: Beyond Culture Shock
6/26
FINAL EXAM
6
Guidelines for Group Presentation on an Assigned Case Analysis
Each Group presentation in class will be limited to maximum 30 minutes. Each student in your group should
be involved in making presentation. They are expected to have well-organized, logical and persuasive oral
reports. The content of the reportanalysis and conclusionsare the most important, but the content will
lack punch without attention to the form of the presentation.
In evaluating presentation, I consider the following:
Persuasiveness - was the presentation logical and convincing? Was evidence marshaled to support the
conclusions and to anticipate counterarguments?
Analysis - did the group show evidence of digging into the case and doing analysis beyond what was already
explicit in the case? (This does not mean looking for outside information, but rather using case information in
perceptive ways.)
Creativity - did the group go beyond the case in identifying important issues, alternatives, considerations?
Response to Questions - did the group seem confident and convincing in handling questions?
Completeness - were the key aspects (key issues, alternatives, positive and negative points, etc.) covered?
Organization - was the presentation well-organized and did the report flow smoothly? Exceeding the time
limit will be penalized.
Enthusiasm - was the group able to show enough enthusiasm and interest to draw attention from the audience
throughout the presentation?
7