LOYOLA MARYMOUNT UNIVERSITY
College of Business Administration
MBAB/MBAG 641
INTERNATIONAL MANAGEMENT
SPRING 2008
M. 4:25 - 7:05 p.m., Hilton 107
Instructor: Dr. Yongsun Paik
Office: Hilton 215
Phone: (310) 338-7402
E-mail: yspaik@lmu.edu
Office Hours:
M, 8:50 a.m. - 9:50 a.m., 11:00 a.m. – 11:45 a.m.,
3:30 p.m. – 4:15 p.m.
W, F, 8:50 a.m. - 9:50 a.m., 11:00 a.m. – 11:45 a.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, textiles, sewing machines),
fundamentally changed others (automobiles) and seriously challenged even the "best" (semiconductors,
biotech, 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 most cases not be discussed specifically in class.
Course Materials
Two publications are required:
TEXT
Barlett et al., Transnational Management: Text and Cases, and Readings in Cross-Border Management, 5th
ed. (hereafter abbreviated TM), McGraw-Hill/Irwin, 2008.
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READING
A collected set of readings and cases (hereafter abbreviated RR) is available on Eres and in class.
Grading and Requirements
The course grade will be based on:
Individual Work:
* Class participation
* Midterm Exam
* Final Exam
30 pts
40 pts
40 pts
Group Work:
* Group written report
* Two group oral presentations
50 pts
40 pts (20pts each)
Total
200 pts
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I
expect you to complete the reading assignments 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 30 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.
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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 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 China’s entry into
the WTO affect business strategies (e.g. outsourcing) of the firm operating in East Asia? 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
Cross-cultural negotiation
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 onepage memo by February 11th which summarizes its research plan, including the title of the topic, the name of
a company, a target region, method, etc. I will be glad to discuss your group project before you turn it in if
you any have questions.
Group oral presentation will be based on the assigned cases and will be part of the class
discussion. Each group will make two presentations: one on its selected case and the other on its group
written report. First, each group 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 next to the dates on this syllabus starting from February 11. 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. Second, the other
presentation will be made on major findings of your group project. Presentation time will be restricted to 20
minutes, with another 5 minutes for questions and answers. A more specific guideline on your final
presentation will be distributed later in class. Groups presenting will be given group grades.
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 three and four 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.
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Date
1/14
CLASS SCHEDULE AND ASSIGNMENTS
Topic
Introduction What are the recent developments in the global environment and
key issues in the management of MNEs?
Readings: TM, Chapters 1,Reading 1-2; RR, Business Week, The Real Cost of
Offshoring, The Future of Outsourcing; Shaking Up Trade Theory; Fortune,
America’s Growing Trade Deficit Is Selling the Nation Out from Under Us
Video: Video: Globalization – Winners and Losers; Outsourcing: White Collar Exodus
1/21
University Holiday – Martin Luther King, Jr. Day
1/28
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: TM, Chapter 2, Readings 2-1, RR, Hampden-Turner, The Boundaries
of Business: The Cross-Cultural Quagmire; Markoczy, Us and Them (in-class
handout).
Video: Managing the Overseas Assignment
2/4
Understanding the International Context
What are the external business environments? What are the economic, sociopolitical pressures? How do MNCs adapt to opportunities and threats in
international business environments?
Readings: TM, Chapter 2, Readings 2-3, RR, Kohls, Resolving Cross-cultural
Ethical Conflict: Exploring Alternative Strategies; Carroll, Managing Ethically
with Global Stakeholders: A Present and Future Challenge.
Case 2-1: Hitting the Wall: Nike and International Labor Practices
Questions:
 Does Jeff Ballinger have a convincing argument about Nike? Does Nike
have a convincing response?
 How well has Nike handled the publicity surrounding its labor practices?
Could or should the company have done anything differently?
 What is a “fair” wage in Vietnam? How should Nike think about it?
Video: Nike, Ethics in International Business.
2/11 (Case 1)
Developing Transnational Strategies
How do MNEs balance strategic means and ends to build the three required
dimensional capabilities? What are the competitive strategies MNCs pursue?
Readings: TM, Chapter 2, Readings 3-2, 3-3
Case 3-4: General Electrical Medical Systems, 2002
Questions:
 What is the underlying logic behind the Global Product Company idea?
 Should the Global Product Company philosophy be altered to suit the needs
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of the medical diagnostics market in China?
 Should GMES be pursuing genomics and health care-IT opportunities
aggressively in addition to, or instead of, the China opportunity?
Video: General Electrical Medical Systems
A one-page group project memo is due.
2/18
University Holiday – Washington’s Birthday
2/25 (Case 2)
Developing a Transnational Organization
How do MNEs develop organizations that effectively support their competitive
strategies? How do MNEs build transnational organizations that reflect their
need for multidimensional and flexible capabilities?
Readings: TM, Chapter 4, Readings 4-1, 4-3; RR, Ashkenas, Creating the
Boundaryless Organization
Case 4-1: Philips versus Matsushita: A New Century, a New Round
Questions:
 How did Philips become the leading consumer electronics company in the
world in the postwar era? What distinctive competence did they build? What
distinctive incompetencies?
 How did Matsushita succeed in displacing Philips as No. 1? What were its
distinctive competences and incompetencies?
 What do you think of the change each company has made to date-the
objectives, the implementation, and the impact? Why is the change so hard
for both of them?
 What recommendations would you make to Gerald Kleisterlee? To Kunio
Nakamura?
Video: Philips and Matsushita 2001
3/3 – 3/7
SPRING BREAK
3/10
MIDTERM
3/17 (Case 3)
Creating Worldwide Innovation and Learning
How do MNEs create and disseminate knowledge across borders? Specifically,
how do they develop and rapidly diffuse innovations around the world?
Readings: TM, Chapter 5; Readings 5-1, 5-3; RR, Paik & Choi, The
Shortcomings of a Standardized Global Knowledge Management System: The
Case Study of Accenture.
Case: 5-3, McKinsey & Company: Managing Knowledge and Learning
Questions:
 How was this obscure little firm of “accounting and engineering advisors”
able to grow into the world’s most prestigious consulting firm fifty years
later?
 How effective was Ron Daniel in leading McKinsey to respond to challenges
identified in the Commission on Firm Aims and Goals? What contribution
did Fred Gluck make to the required changes?
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 What is your evaluation of Rajat Gupta’s four-pronged “approach to
knowledge development and application within McKinsey? As a senior
partner, what specific advice would you give him?
Video: McKinsey & Company
3/24
Engaging in Cross-border Collaboration: Managing across Corporate
Boundaries
Why do MNEs form alliances? What are the benefits and costs of inter-firm
collaboration? How do you negotiate international business deals?
Readings: TM, Chapter 6, Reading 6-1, 6-2; RR, Hill et al., An Eclectic Theory
of the Choice of International Entry Mode; Paik & Tung, Negotiating with East
Asians.
Case 6-1: Nora-Sakari: A Proposed Joint Venture in Malaysia
Questions:
 Why have the negotiations so far failed to this point? Is the formation of the
JV between Nora and Sakari the best option for both companies to achieve
their respective objectives?
 As Zainal, what would you do to ensure that Nora fulfills the TMB contract?
If Zainal decides to renegotiate (and assuming that Kuusisto agreed), how should
they restructure the terms of the deal to reach a win-win situation?
3/31
University Holiday – Cesar Chavez Day
4/7 (Case 4)
Implementing the Strategy
What are the roles of managers at headquarters and overseas subsidiaries in
managing MNEs? How do you manage country risks?
Readings: TM, Chapter 7; RR, 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 (in-class handout).
Case 7-1: “Larson in Nigeria (Revised)
Questions:
 What are the three major issues confronting David Larson?
 How would you recommend each of these issues be handled?
 How do the roles of a subsidiary general manager differ between a joint
venture in a developed country and one in a developing country?
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4/14 (Case 5)
Expatriate Management (1) : Overseas Assignment and Training
How do staff overseas subsidiaries of MNEs to effectively manage their
operations? What are the most important criteria in selecting expatriates?
Readings: RR, Black & Gregersen, The Right Way to Manage Expats; Collings
et al., Changing Patterns of Global Staffing in the Multinational Enterprise.
Case (in-class handout) : “Bristol Compressors, Asia-Pacific”
Questions:
 How important is the Asia-Pacific region to the future of Bristol
Compressors?
 To what do you attribute Bristol Compressors’ performance problems in
the Asia-Pacific region?
 Which option should Woods pursue?
 What criteria are most important in making this decision?
Video: Beyond Culture Shock
4/21
Expatriate Management (2): Repatriation
The case centers on Japanese executive’s personal and family problems after
returning from a successful international assignment in the U.S. Students are
asked to investigate why Yutaka and his family are having such repatriation
adjustment difficulties.
Case (in-class handout): “Yutaka Nakamura: A Foreigner in His Native Land”
in RR.
Questions:
 Why is Yutaka Nakamura having such repatriation adjustment difficulties?
 Why is his family having trouble re-adjusting?
 What could the Nakamura's or the company have done differently?
 How generalizable are these problems beyond Japan and the Japanese?
Readings: Stroh et al., Closing the Gap: Expectations Versus Reality among
Repatriates; Paik et al., How to improve repatriation management
Video: Welcome Home, Stranger
4/28
Students Presentations (Group written reports are due.)
5/5
FINAL EXAM
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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?
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