Global
Product
Launch
Simulation
Kick-Off Agenda
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Overview of simulation
Key issues
Potential negotiation relationships
Assignment / discussion of roles
Negotiation process
Graded assignments
Intro to international joint ventures
Simulation Schedule
Simulation Schedule
TIME
Now
In Class
TASK
Simulation Kick-Off
Throughout
Today
Pre-Sim Memo (Due by 11:00
Negotiations
Later Today
Negotiations Conclude
Post-Sim Debriefing Presentations
FEB 14
Post-Sim Report due by 5:00 p.m.
---- 12:30
2:00 p.m. Morning Cohort
3:30 p.m. Afternoon Cohort
TEAM ASSIGNMENTS
Local Firms
 TropiDent
 Chewicalia
 ParaSonic
 ElectroEnamel
MNCs
 MegaMouth
 EuroSound
 TanakaTooth
Governments
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Tropicalia
Paradiso
Mandibular Sonic Transducer
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Modifications
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Tooth whitening
Candy-tipped head
BlueTooth enabled
Other uses:
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Voicemail
Prayers, chants
Sports scores
Honey-Do lists
Inspirational sayings
MNCs:
MegaMouth, TanakaTooth, EuroSound
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Role of country, local firms, region, etc. in global
supply chain?
 Invest in emerging markets?
 New product/international strategy
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Standardization vs. adaptation of Mandibular Sonic
Transducer
Entry mode: Risk, resource, control trade-offs
Type of plant, finished product vs. components
Bargaining power vs. local firms and/or Govt.
LOCAL FIRMS:
Chewicalia, ElectroEnamel
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Enter/become player in global supply chain?
 “Entry mode” – Alone, JV, SOE?
How to facilitate MNCs’ entry into country
 How to facilitate MNC’s implementation of
international strategy into country
Access to technology
Government support
Bargaining power vs. MNCs, Govt.
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GOVERNMENTs:
Paradiso & Tropicalia
 Policies for technical standards, product use, industry
structure, access to local market, global
connectedness, technology, etc.
 Trade policies
 Economic integration – Free Trade Area
 Policies to increase Favorable aspects of FDI
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Labor
High technology
Taxes
Imports vs. exports
 Policies to reduce Unfavorable aspects of FDI
 Dependence
 Low technology
Intl. Strategy and Entry Mode
North America
Paradiso
TanakaTooth
Tropicalia
ParaSonic
Chewicalia
ElectroEnamel
TropiDent
Europe
Strategic Importance
of Country
Entry Mode Decision Matrix
Hi
Lo
Lo
Hi
Stand-alone Attractiveness
of Country
Entry Mode Decision Framework
Control
Resources
Risk
Dissem.
Low
Low
Low
High
High
High
High
Low
Licensing
Exporting
Intermediaries
Direct
Joint Venture
Wholly-owned
Subsidiary
Potential Negotiation Relationships
Step into role…self interest
MNC1
Local Firma
GovernmentY
MNC2
Local Firmb
GovernmentX
Information Channels
Public
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Meetings
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Classroom, Starbuck’s, …anywhere, anytime.
E-mail to entire class
Public: Team Contacts
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Identify your team’s Chief Information Officer
(CIO)
Establish your team G-mail address
 megamouth@gmail.com
 Send team G-mail to everyone else
Information Channels
 Private
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Direct contact between teams, specific individuals
 Meetings (secret location?)
 Phone calls
 G-mail
Prof. Ferrier for Consultation, Rulings, Disputes, etc.
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G-mail = walter.ferrier@gmail.com
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Mobile = 859-361-2128
Assignments
Pre-Simulation Memo
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3-4 pages
Due today by 11:00 (a.m.) – 12:30 (p.m.)
Submit via e-mail – walter.ferrier@gmail.com
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Post-Simulation Memo
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7-8 pages
Due Feb. 14 by 5:00 p.m.
Submit via e-mail – walter.ferrier@gmail.com
See sample memos at MBA 618 website
International Joint Ventures
Pre-Simulation Memo
Sketch out intentions for…strategy or govt. policy
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Entry mode
International strategy
Policy/economic objectives and policy specifics
Role of Joint Venture [or other entry mode] in achieving
desired strategy or policy objectives
Sketch out intentions for…negotiation game plan
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Key parties that you need to talk to
Key issues and priorities
The negotiation process…which strategies/tactics
Alternatives, “Plan B”, etc.
Post-Simulation Memo
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Entry Mode & Strategy section
Transaction [or Non-transaction] section
Attach copy of JV agreement or contract
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Negotiation Process & Outcome section
Conclusions
Post-Simulation Memo
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Details of “current” and future situations and
actions regarding:
 Entry mode
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International strategy and operations
Organizational structure
(Government: Future policies package)
Make explicit use of these frameworks
Agreements/Contracts
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Each multi-party “agreement”
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Type and purpose of project
Partners, ownership, structure, control, etc.
Agreements on other key issues
Non-Agreement Explanation
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Why no agreement?
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Process and substantive barriers to agreement
Future process and/or substantive alternatives
Negotiation Process
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Which parties?
How frequently?
Multilateral vs. Bilateral
Log-timeline
Press releases
Negotiation Issues/Points
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What were they?
Link to entry mode and/or international strategy
Negotiation strengths vs. weaknesses
Negotiation issues won vs. lost
Conclusions – What to do differently?
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Governments
 Influence of policy package on entry mode and
strategy?
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MNCs
 ‘Intended’ versus ‘realized’ entry mode/strategy?
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Local Firms
 ‘Intended’ versus ‘realized’ role in facilitating MNCs
local entry mode and their overall international
strategy?
Simulation Schedule
TIME
Now
In Class
TASK
Simulation Kick-Off
Throughout
Today
Pre-Sim Memo (Due by 11:00
Negotiations
Later Today
Negotiations Conclude
Post-Sim Debriefing Presentations
FEB 14
Post-Sim Report due by 5:00 p.m.
---- 12:30
2:00 p.m. Morning Cohort
3:30 p.m. Afternoon Cohort