decision-making process operating at the country, industry, corporate, business, and subsidiary levels of analysis. Firms manage knowledge accumulation and transfer as they grow international through a mixture of planning and trial-and-error. Students will experience in the classroom the most important decisions that multinational firms face in the course of conducting business across borders.<br><br> 2 Course takeaways: " A set of conceptual tools to navigate through the often contradictory and ambiguous mass of information about how international competition takes place. " A set of criteria for evaluating exactly which global strategy will help enhance the firm 9s long-term profitability and value. " A clear understanding of how to evaluate and interpret the effects of economic, financial, political, and social factors on international management decisions.<br><br> REQUIREMENTS " Class participation (25%). " In-class midterm exam (15%), Monday, April 7th , 15 minutes. " Take-home final exam (60%).<br><br> The exam will be made available on Friday, May 2nd at 10 am and answers will be due on Monday, May 5 by 4.30 pm. A Note on Class Participation Each student will be graded based upon his or her contribution to class discussion. Effective participation is accomplished by focused comments or questions that demonstrate mastery of readings and cases and develop insights that are not immediately discernible from these materials.<br><br> We especially encourage class participation that applies conceptual frameworks to case materials and that enriches the learning experience of the class. We expect students both to attend class and to be prepared to participate in each and every discussion. Class participation includes three components: (a) class attendance; (b) frequency of class participation; and (c) quality of class participation.<br><br> Students are expected to attend all classes. Please inform the instructor in advance by email if you are going to miss a class. READING MATERIALS " All readings are available from Wharton Reprographics.<br><br> 3 ABOUT THE INSTRUCTOR Sea-Jin Chang is a Kumho Asiana Group Endowed Chair Professor of Business Administration at Korea University, and a Visiting Professor, Wharton School, during 2008-09. He received his BA and MA in economics from Seoul National University, and Ph.D. in strategic management from the Wharton School of the University of Pennsylvania, where he was a Dean 9s Fellow.<br><br> Prior to his return to Korea, he was a professor at the Stern School of Business of the New York University. He also had visiting appointments at Stanford Business School, INSEAD, London Business School and Hitotsubashi University. He used to work for large telecommunication companies in Korea and Japan.<br><br> Professor Chang is primarily interested in the management of diversified multinational firms. His current research focuses on understanding the process of creating operating synergies among diversified lines of business and building a strong local organization after foreign entry. His other research interests include organizational learning, corporate growth through joint ventures and acquisitions, foreign direct investment, and comparative management studies of Japan and Korea.<br><br> His research has been published in journals such as Strategic Management Journal, Academy of Management Journal, Organization Science, Journal of Business Venturing, Journal of Management Studies, Review of Economics and Statistics, and Journal of Industrial Economics . He is an Editor of Journal of International Business Studies , a premier academic journal in international business and sits on the editorial boards of several other leading journals such as Strategic Management Journal . His recent book, The Rise and Fall of Chaebols: Financial Crisis and Transformation of Korean Business Groups (Cambridge University Press, April 2003) explores the strategies Korean business groups have pursued, examines various aspects of their structures, and assesses their performance.<br><br> His edited volume, Business Groups in East Asia: Crisis, Restructuring and New Growth (Oxford University Press, 2006), examine the post-crisis restructuring activities of large business groups in eight East Asian countries. His forthcoming book, Sony vs. Samsung: The Inside Story of the Electronics 9 Giants Battle for Global Supremacy (Wiley, forthcoming) compares and contrasts these two firms 9 global strategy.<br><br> 4 1. Introduction to Global Strategic Management [Monday, March 17] F ORMULATING G LOBAL S TRATEGY 2. Industry Characteristics & Global Strategy [Wednesday, March 19] Reading: George S.<br><br> Yip, cGlobal Strategy& in a World of Nations? d Sloan Management Review (Fall 1989), pp. 29-41. Case: Haier: Taking a Chinese Company Global, HBS, 9-706-401 Questions: (1) What do the characteristics of the global large appliances industry tell you about the design of an effective competitive strategy?<br><br> (2) Was there a good rationale for Haier to make global expansion its top strategic priority? (3) How would you characterize Haier 9s current global strategy? Do you think it makes sense for the company or would you advise it to change it?<br><br> 3. Location & Global Strategy: Home-Country Effects [Monday, March 24] Reading: Michael E. Porter, cWhy Nations Triumph. d Fortune March 12, 1990), pp.<br><br> 94-108. Case: Sea-Jin Chang, Sony vs. Samsung: The Inside Story of the Electronics Giants 9 Battle for Global Supremacy (Wiley, forthcoming), Ch 2-3.<br><br> Questions: (1) How do you explain the rise of Samsung Electronics from nowhere and the fall of Sony, which once dominated the electronics industry? (2) Was it a good decision for Sony to enter the entertainment business with the acquisition of Columbia Pictures? What went wrong with the Idei 9s network strategy?<br><br> (3) Is there a possibility on the horizon that could cause the decline of the Samsung Electronics and the revival of Sony? 4. Distance & Global Strategy: How Far is Too Far?<br><br> [Wednesday, March 26] Reading: Pankaj Ghemawat, cDistance Still Matters: The Hard Reality of Global Expansion d Harvard Business Review Sept. (2001), pp. 137-147.<br><br> cAge of Giants, d Economist , February 2, 2006. Case: The Globalization of CEMEX, HBS 9-701-017 Questions: (1) Is cement a global industry? (2) What accounts for CEMEX 9s success to date?<br><br> In particular, what are the benefits that CEMEX has derived from expanding across borders? (3) How far can Cemex 9s competitive advantage travel? (4) What are the most important challenges that CEMEX is likely to confront in the future?<br><br> 5 D ESIGNING G LOBAL O RGANIZATION 5. Dispersion & Coordination of Activities [Monday, March 31] Readings: The readings below are for the next two sessions. Please read them in advance of Session 5.<br><br> Julian Birkinshaw, cThe Structures behind Global Companies, d Financial Times , 12/4/2000 Yves L. Doz, Christopher A. Bartlett, & C.<br><br> K. Prahalad, cGlobal Competitive Pressures and Host Country Demands: Managing Tensions in Multinational Corporations. d California Management Review 23(3) (Spring 1981), pp. 63-74.<br><br> Case: Acer Inc.: Taiwan 9s Rampaging Dragon. HBS 9-399-010. Questions: (1) Describe Acer 9s culture and organizational structure.<br><br> Can Acer 9s early culture and practices be sustained as the company grows? (2) How responsive is Acer to local environments? How coordinated or integrated is it?<br><br> (3) Analyze the advantages and disadvantages of allowing Acer America to design and market the Aspire. If you were Stan Shih, would you give the Aspire project the green light? Is the organizational structure appropriate?<br><br> 6. The Organization of the Multinational Enterprise [Wednesday, April 2] Readings: See Session 5 above. Case: Philips versus Matsushita: A New Century, A New Round.<br><br> HBS 9-302-049. Questions: (1) How did Philips become a leader in the industry? How did Matsushita overtake Philips?<br><br> What distinctive capabilities did each firm possess? (2) What are the major problems currently facing each firm? (3) What specific organizational changes would you say each firm should implement?<br><br> 7. Organizing for Global Innovation [Monday, April 7] In-class midterm exam. Reading: José Santos, Yvez Doz and Peter Williamson, cIs Your Innovation Process Global? d 45(4), pp.<br><br> 31-37 Case: P&G Japan: The SK-II Globalization Project, HBS 9-303-003 Questions: (1) Does SK-II have the potential to become a global brand within Procter & Gamble 9s worldwide operations? Why or why not? (2) Which of the three market options should Paulo DeCesare recommend to the GLT?<br><br> What benefits do you expect to gain? What risks do you see? (3) How should he implement your recommended option?<br><br> What are the implications for P&G 9s new post-O2005 organization? What support and/ or resistance do you expect? How will you manage it?<br><br> 6 E NTERING F OREIGN M ARKETS 8. Market Entry Strategies [Wednesday, April 9] Reading: Franklin R. Root, cDesigning Entry Strategies for International Markets. d In Entry Strategies for International Markets .<br><br> New York: Lexington Books, 1990, pp. 1- 23. Case: Lincoln Electric, HBS 9-707-445.<br><br> Questions: (1) Why has Lincoln Electric been so successful? (2) Should Lincoln Electric expand into India? (3) If it were to expand into India, should Lincoln Electric enter through acquisition, a greenfield site, or some type of joint venture?<br><br> 9. Sequence & Pace of International Expansion [Monday, April 14] Case: cWal-Mart Stores, Inc. d Credit Suisse, March 25, 2006. cSpecial Report: Wal-Mart. d The Economist , April 17, 2004, pp.<br><br> 67-69. cLeahy 9s lead: A mixture of understatement and quiet confidence has turned Tesco from a domestic grocery chain& d, The Economist , August 11, 2001. cTesco: Fresh, but far from easy d, The Economist , June 23, 2007.<br><br> Questions: (1) Do you think there is a good strategic rationale for Wal-Mart &/ or Tesco to expand internationally? (2) Explain what you believe to be the rationale for the sequence in which, and the pace at which, Wal-Mart & Tesco have entered different markets. (3) How would you evaluate Tesco 9s entry into the United States?<br><br> How should Wal- Mart respond? 7 N EW D EVELOPMENTS IN G LOBAL S TRATEGIC M ANAGEMENT 10. The Emergence of New Multinationals [Wednesday, April 16] Reading: Niraj Dawar and Tony Frost, Competing with Giants: Survival Strategies for Local Companies in Emerging Markets, Harvard Business Review , Mar/Apr99, Vol.<br><br> 77 Issue 2, p119-129. Case: Infosys Consulting in 2006: Leading the Next Generation of Business and Information Technology Consulting, Stanford Graduate School of Business, SM- 151, 05/16/06 Questions: (1) How well is Infosys Technologies doing? What is the company 9s strategic position in the IT industry and what are its distinctive competencies?<br><br> (2) How would you characterize and evaluate the most important strategic options confronting Infosys Technologies? (3) Does Infosys Technologies 9 move into the IT consulting market make strategic sense to you? (4) What organizational challenges confront Infosys in competing in the IT consulting market?<br><br> 11. Local Concerns for Multinational Companies [Monday, April 21] Case: Starbucks and Conservation International, HBS 9-303-055 Questions: (1) How would you explain Starbucks 9 success in the global coffee business? (2) Evaluate the strengths and weaknesses of the relationship between Starbucks and Conservation International?<br><br> (3) Should Starbucks give in to the demands of Global Exchange and TransFair to purchase more fair trade coffee? 12. Conclusion to Global Strategic Management [Wednesday, April 23] Course wrap-up, class evaluations, and discussion of final take-home exam.<br><br>

less