ibm handbook

Business School

Course Study Guide

2010–11

International Business Management

BUSI 1346

Contents

1. WELCOME ........................................................................................................................................ 3

2. INTRODUCTION TO THE COURSE................................................................................................. 4

2.1 AIMS ........................................................................................................................................... 4

2.2 LEARNING OUTCOMES ................................................................................................................. 4

2.2.1 Knowledge and understanding of: ........................................................................................ 4

2.2.2 Intellectual Skills: .................................................................................................................. 4

2.2.3 Subject practical skills: ..................................................................................................... 5

2.2.4 Transferable skills: ................................................................................................................ 5

2.3 LEARNING AND TEACHING ACTIVITIES ............................................................................................ 5

3. CONTACT DETAILS ......................................................................................................................... 6

4. MODULE DETAILS ........................................................................................................................... 7

4.1 SESSION READING..................................................................................................................... 18

5. ASSESSMENT DETAILS ................................................................................................................ 19

5.1 SUMMARY OF ASSESSMENT ........................................................................................................ 19

5.2 DETAILED DESCRIPTION OF ASSESSMENT .................................................................................... 19

6. OTHER DETAILS ............................................................................................................................ 20

1. Welcome

Welcome to the exciting world of International Business Management! In this era of globalization, there are very few companies that can say that they are not part of a global network. Every firm has to think of itself as a global company, if for no other reason than because it has to meet competition from global companies. This changes the entire strategy of the firm. In the future, we expect that all of you will be involved in managerial decision making that will take you beyond the realms of your geographical territory. This course on International Business Management will have the focus on helping you make better international decisions. Aside from the opportunities offered by globalisation, there are also many risks in entering into the global market. This course will attempt to address, in a structured format, the ways and possibilities of addressing these risks. The basic philosophy behind this course is to develop a holistic understanding of international business, appreciating the risks, and developing competence in using tools to mitigate that risk. In order to extract the most benefit from this course you will need to be actively engaged. You will gain marks, up to 10% of the total score for the course, by attending and participating in tutorials. In lectures, you will be encouraged to join in lively conversations. Like the old adage has it: “the more you put into it, the more you will get out of it!” Dr Michael Wynn-Williams [email protected]

2. Introduction to the Course This course has been designed to draw on many of the business techniques you have learned

elsewhere and apply them in a variety of international contexts. You will learn how to handle the

complexities of international business and develop appropriate strategies.

We will start by looking at the opportunities for business offered by the international economic

environment. We will then evaluate the risks of entering the international arena, using theories that

have been developed to help formulate corporate internationalisation strategies. We will explore the

the structures that firms may opt for as they expand into unfamiliar territories.

At the end of this course you will have gained an international perspective on the challenges facing

business managers. You will then be equipped to take your place alongside them.

2.1 Aims To give students a clear insight into the major external environmental factors governing international

business management. To provide an understanding of various management functions in an

international context at both a conceptual and a practical level.

2.2 Learning Outcomes

2.2.1 Knowledge and understanding of:

The rationale for 'going international'.

Measuring and managing environmental risk.

The rise of Foreign Direct Investment (FDI) – horizontal and vertical FDI, managing host

regulation of FDI.

Managing strategic dilemmas.

Relationship between modes of entry, environment and strategy.

Managing international strategic alliances.

Organisational structure and culture.

Control systems and incentives in an international context.

National and international accounting standards and the consequences of differing standards.

Investment decisions and financing decisions.

Techniques for global money management, managing foreign exchange risk.

Human resource considerations in internationally-oriented companies.

Managing international operations

2.2.2 Intellectual Skills:

Breadth of Outlook: Students will be able to address management issues from an international

perspective. Students will develop self-awareness, openness and sensitivity to cultural

diversity in dealing with international business issues and people from different cultural

backgrounds.

Wisdom: Ability to present well balanced arguments in the context of management and

international business theories. Appreciation of the impact of ambiguity on managerial

decisions.

Personal Effectiveness: Effective self-management in terms of time, planning, motivation,

individual initiative and enter-prise. Effective performance within a team environment

including leadership, team building, influencing and project management skills.

2.2.3 Subject practical skills:

Abilities to conduct research into international business issues for a presentation and a review

report.

Familiarity with a range of research sources and ability to apply international business and

management related theoretical frameworks.

2.2.4 Transferable skills:

Critical Thinking: Be able to think globally and strategically in terms of identifying and solving

business problems. The ability to create, evaluate and assess a range of options together with

the capacity to apply ideas and knowledge to a range of situations.

Information Management: Be able to search for, select and process relevant information

guided by relevant theoretical frameworks.

Communication Skills: Communicate effectively within group work and team activities. Be able

to present concise and coherent ideas, oral or in writing, in a professional manner.

2.3 Learning and teaching activities The course will be delivered through a weekly lecture and a tutorial. Lectures will provide a

comprehensive conceptual framework of the all key areas of international management. Tutorials will

focus on the discussion of case studies, the exploration of issues, and student presentations and will

involve tutor led discussions, group work and role play. Directed and self managed learning and

research will take place outside lectures and tutorials. Students will work in groups of 4-5 for

preparation and presentations.

3. Contact Details

Room Email address Phone number

Course Leader

Dr Michael Wynn-Williams QM 163 [email protected] 0208 331 8920

Tutors

Mr Farzam Bonabi [email protected] 0208 331 9167

Dr Colin Butler [email protected] [email protected]

0208 331 9167

Mr Imad Guenane [email protected] 0208 331 9167

Admin Programme Coordinator

Alex Kubit-Hope QM245 [email protected] 0208 331 9840

Please see your programme handbook for more detail

4. Module Details

TOPIC 1: Foundations of International Business

LEARNING OUTCOME for this module:

Student will be able to:

Analyse the opportunities offered by international trade

Identify the risks related to globalisation

EVIDENCE:

Problem based learning tasks during the lecture

Tutorial activities:

o The opportunities and risks of globalisation for countries

o The application of Porter’s Diamond

o Export options and the role of banks

ACTIVITY:

Week

beginning

Wk Session Title and Description Staff member

associated

20-Sep-10 1 Welcome back

27-Sep-10 2 Lecture Course Introduction Lecturer

Seminar Initial meetings, tutorial allocation, globalisation Tutors

Self-Study

Reading introductory chapter of Set Text: DRS Chapter 1

4-Oct-10 3 Lecture Foundations of International Business: Trade Lecturer

Seminar Porter’s Diamond Tutors

Self-Study

DRS Chapter 6

11-Oct-10 4 Lecture Foundations of International Business: Finance Lecturer

Seminar Export options Tutors

Self-Study

DRS Chapter 6

RESOURCES:

Course Handbook – distributed in seminar groups and on the WebCT site

Chapter 6 of Daniels, Radebaugh and Sullivan (DRS) International Business.

Tutorial materials: download from WebCT

DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 2: Country Risk Analysis (CRA)



Discuss the most important factors of balance of payments for investment purposes

Analyse political risk factors

Calculate the IMF memo ratios

EVIDENCE:



o Calculation of IMF memo ratios

o Analysis of political risk factors

o The application of Porter’s Five Forces model

ACTIVITY:

Week

beginning


associated

18-Oct-10 5

Lecture Understanding the BOP system Lecturer

Seminar Classification and country risk analysis (CRA) Tutors

Self-Study

DRS Chapter 6

25-Oct-10 6 Lecture CRA 1: Political Risk Analysis Lecturer

Seminar Political risk analysis for Switzerland and Afghanistan Tutors

Self-Study

DRS Chapter 3

1-Nov-10 7 Lecture CRA 2: Economic Risk Analysis Lecturer

Seminar Calculating BOP and IMF memo ratios Tutors

Self-Study

DRS Chapters 3 and 4

8- Nov -10 8 Lecture CRA 4: Positioning Risk Analysis Lecturer

Seminar Case Study: Porters 5 Forces model Tutors

Self-Study

Porter (2008) journal article (WebCT download)

RESOURCES:

Chapter 6, 3 and 5 of Daniels, Radebaugh and Sullivan (DRS) International Business.

Porter (2008) The five competitive forces that shape strategy (WebCT download)

Tutorial materials: download from WebCT

DISCOURSE:


TOPIC 3: Regulations and Responsibilities



Critically analyse the steps to free trade

Evaluate the necessity for corporate social responsibility

EVIDENCE:



o Discussion steps to free trade

o Critically analyse the limits of corporate social responsibility

ACTIVITY:

Week

beginning

Session Title and Description Staff member

associated

15- Nov -10 9 Lecture The Regulatory Framework for Business Lecturer

Seminar Case study: two countries progress to FTA Tutors

Self-Study

Free trade: ViamInvest (internet download)

22- Nov -10 10 Lecture Corporate Social Responsibility Lecturer

Seminar Fairtrade Tutors

Self-Study

Nicholls and Opal – Fair Trade (Google Books download)

RESOURCES:

Free Trade (ViamInvest) -

http://e.viaminvest.com/B10CompetitionInProductMarkets/App10PerfectMarketMode

l/Exhi_Perf_market_econ.asp

Nicholls A & Opal C – Fair Trade (Google Books)

<http://books.google.co.uk/books?hl=en&lr=&id=Hmj6UlKhVDcC&oi=fnd&pg=PP10&dq=a

lex+nicholls+fair+trade&ots=5WbGN9Xkd1&sig=85eiXD_LeD3XfFsxZmp573_0j5A#v

=onepage&q=&f=false>

DISCOURSE:


TOPIC 4: Growth Strategies



Apply Ansoff’s Matrix to a specific industry

Critically analyse a diversification strategy

Evaluate a foreign market entry decision

EVIDENCE:



o Application of Ansoff’s Matrix

o Discussion of diversification strategies

o Evaluation of a foreign market entry

ACTIVITY:

Week

beginning


associated

29-Nov-10 11 Lecture Growth Strategy (1): Ansoff’s Matrix Lecturer

Seminar Application of Ansoff’s Matrix to steel and insurance industries

Tutors

Self-Study

DRS Chapter 13 Research case studies for tutorial

6- Dec -10 12 Lecture Revision topics for report submission Lecturer

Seminar Revision topics for report submission Tutors

Self-Study

Report preparation

12- Dec -10 13 Lecture Growth Strategy (2): Diversification Lecturer

Seminar Case study: Cray Research future direction Tutors

Self-Study

Read case study material (WebCT download)

Winter Break 20 December – 7 January

RESOURCES:

Chapters 12 and 13 of Daniels, Radebaugh and Sullivan (DRS) International Business

Morrison J (2006) The international business environment: global and local marketplaces in a

changing world. Basingstoke: Palgrave

Cray Research case study material (WebCT download)

Vietnam market entry (WebCT download)

DISCOURSE:


TOPIC 5: International Operations



Critically analyse different internationalisation strategies

Deconstruct industry supply chains

Apply Kotler’s 4 Ps model

EVIDENCE:



o Discuss the merits of various internationalisation strategies

o Draw up industry supply chains

o Us Kotler’s 4 Ps model as a conceptual framework

ACTIVITY:

Week

beginning


associated

10-Jan-11 17

Lecture Market Entry Decisions Lecturer

Seminar Case study: Vietnam market entry Tutors

Self-Study

DRS Chapter 12 Read case study material (WebCT download)

17- Jan -11 18

Lecture International Business Strategies Lecturer

Seminar Critical discussion: internationalisation strategies Tutors

Self-Study

DRS Chapter 11

24- Jan -11 19 Lecture International Supply Chain Lecturer

Seminar Examination of industry supply chains Tutors

Self-Study

DRS Chapter 17

31- Jan -11 20

Lecture International Marketing Lecturer

Seminar Application of Kotler’s 4 Ps model Tutors

Self-Study

DRS Chapter 16

RESOURCES:

Chapters 11, 17 and 16 of Daniels, Radebaugh and Sullivan (DRS) International Business

Management And Accounting Web (MAAW)

<http://maaw.info/LearningCurveSummary.htm>

Download Route <http://www.downloadroute.com/VALUE-CHAIN-ANALYSIS-MEGA-

SOFTWARE-sqaki-com-16-VALUE-CHAIN-ANALYSIS-MEGA/image.html>

Williamson O E (1981) The economics of organization: the transaction cost approach in

The American Journal of Sociology 87, 3, November 1981 pp548-577

DISCOURSE:


TOPIC 6: International Finance



Complete a Balanced Score Card

Critically analyse different financial evaluation tools

Discuss the impact of currency devaluation

EVIDENCE:



o Complete a Balanced Score Card for the University of Greenwich

o Discuss the merits of NPV, IRR, pay-back period and cost-benefit analysis

o Identify the main factors involved in currency devaluation

ACTIVITY:

Week

beginning


associated

7-Feb-11 21

Lecture International Accounting Lecturer

Seminar Balanced score card Tutors

Self-Study

DRS Chapter 18

14-Feb-11 22 Lecture International Finance Lecturer

Seminar Financial evaluation tools Tutors

Self-Study

DRS Chapter 19

21-Feb -11 23 Lecture Foreign Exchange Markets Lecturer

Seminar Case study: currency devaluation (WebCT download) Tutors

Self-Study

DRS Chapter 9

RESOURCES:

Chapters 18, 19 and 9 of Daniels, Radebaugh and Sullivan (DRS) International Business

Balance Scorecard (Kaplan & Norton):

<http://www.quickmba.com/accounting/mgmt/balanced-scorecard/>

Foreign exchange risk <http://www.exinfm.com/board/foreign_exchange_risk.htm>

Bank of International Settlements <http://www.bis.org/>

BIS Triennial Review 2004-2007

<http://www.bis.org/publ/rpfxf07t.pdf>

Bank of Korea <http://eng.bok.or.kr/>

Big Mac Index

<http://www.economist.com/daily/chartgallery/displaystory.cfm?story_id=15210330>

DISCOURSE:


TOPIC 7: International Partnerships



Develop arguments concerning FDI from the point of view of corporations and

governments

Critically analyse the alliance strategy of Mitsubishi Motors

EVIDENCE:



o FDI by Unilever in Lesotho

o Mitsubishi Motors network of alliances and licence agreements

ACTIVITY:

Week

beginning


associated

28-Feb-11 24 Lecture Foreign Direct Investment Lecturer

Seminar Tripartite FDI decisions Tutors

Self-Study

DRS Chapter 5

7-Mar-11 25 Lecture Global Strategic Alliances Lecturer

Seminar Strategic alliances in the automotive industry Tutors

Self-Study

Case study material: Mitsubishi

RESOURCES:

Chapter 5 of Daniels, Radebaugh and Sullivan (DRS) International Business

Strategic Alliances

<http://www.iveybusinessjournal.com/view_article.asp?intArticle_ID=417>

OECD definition of FDI <http://www.oecd.org/dataoecd/10/16/2090148.pdf>

UNCTAD

http://www.unctad.org/Templates/webflyer.asp?docid=11917&intItemID=1465&lang=1

Strategic Alliances

<http://www.iveybusinessjournal.com/view_article.asp?intArticle_ID=417>

Qiu L D (2001) Cross border strategic alliances and foreign market entry

<http://www.gsm.pku.edu.cn/store/object/2007128225440607-9.pdf>

Association of Strategic Alliance Professionals <http://www.strategic-alliances.org/>

Humphries A S and Wilding RD: Long Term Collaborative Business Relationships: The

Impact of Trust and C3 Behaviour

<http://www.ingentaconnect.com/content/westburn/jmm/2004/00000020/F0020009

/art00011>

DISCOURSE:


TOPIC 8: International Culture



Categorise national characteristics by cultural dimensions

Analyse an MNE structure at the local level

EVIDENCE:



o Selection of a case study country and presentation of two indicative cultural

dimensions

o Analysis of a chosen case study company that illustrates structural adaptation

to the local conditions, and the impact on the rest of the organisational

structure

ACTIVITY:

Week

beginning


associated

14-Mar-11 26 Lecture International Culture and Dimensions

Seminar Student presentation: two cultural dimensions

Self-Study

DRS Chapter 2

21-Mar-11 27 Lecture Organisational Issues

Seminar Student case study: MNE structure and adaptation

Self-Study

DRS Chapter 15

28-Mar-11 28 Lecture Course conclusions

Seminar Topics for revision

Self-Study

Revision for exam

Spring Break 4 April – 25 April

RESOURCES:

Chapters 2 and 15 of Daniels, Radebaugh and Sullivan (DRS) International Business

Ailon G (2008) Mirror, Mirror on the Wall: Culture's Consequences in A Value test of

Its Own Design in The Academy of Management Review Vol. 33, No 4 / 2008 pp.885 -

904

McSweeney, Brendan (January 2002). Hofstede's Model Of National Cultural

Differences And Their Consequences: A Triumph Of Faith - A Failure Of Analysis in

Human Relations 55 (1): pp.89–118.

DISCOURSE:


TOPIC 9: Revision



Request revision assistance and actively engage in the topics

EVIDENCE:

Student feedback

ACTIVITY:

Week

beginning


associated

26-Apr-11 29 Lecture Revision Lecturer

Seminar Revision Tutor

Self-Study

Revision

3-May-11 30 Lecture Revision Lecturer

Seminar Revision Tutor

Self-Study

Revision

9 May – 27 May Exam period

RESOURCES:

Module resources

Course reading list

DISCOURSE:

Prepare questions and request revision focus.

4.1 Session Reading Reference Key aspects to consider Daniels, Radebaugh & Sullivan (DRS) International Business. London: Pearson

Core text. In particular Chapters 1, 3, 4, 6, 11 to 13 and 15 to 19

Porter (2008) The five competitive forces that shape strategy

Download from WebCT

Morrison J (2006) The international business environment: global and local marketplaces in a changing world. Basingstoke: Palgrave

Recommended alternative to DRS.

Wynn-Williams M (2009) Surfing the Global Tide. London: Palgrave

Available in the library. Overview of globalisation and alliances in the automobile industry.

Other reading material as listed under the Resources section of each topic (see section above)

5. Assessment Details Individual Report - 30% 3,000 words (+/- 10%). A report in response to a topic chosen from a given list

(see below).

Exam - 60% 3 hours. A closed book exam consisting of a case study and some essay type questions.

Attendance - 10%. Attendance and participation is required at every tutorial.

Minimum course pass mark - 40%.

5.1 Summary of assessment

Assessment Title Weight towards final grade

Pass Mark

Length Due Date Return Date

Header Sheet #

Tutorials 10% 40% overall

NA Every week NA NA

Report 30% 3,000 15.12.10 3PM 10.01.11 170975

Examination 60% 3 Hours May 2011 NA NA

5.2 Detailed description of assessment

1. Performance in tutorials: tutorials and seminars are an important part of your understanding

of the course. Your performance will be assessed by your tutor both in terms of physical

attendance, participation and preparedness.

2. Project Report: all students are to write a report as part of the course assessment. The report

topics and evaluation criteria are listed below. Students are required to submit their report

electronically by 15th December 2010 (3pm).

3. Examination: the examination, held in May 2011, will be a comprehensive 3 hour closed-book

examination aimed at evaluating the students understanding of the entire course. Students

may refer to the past years’ examination papers as a guide to preparation. Copies of previous

examination papers can be found on the Student Portal.

5.2.1 Report Topics

Choose ONE of the following topics for your report. The report should be no longer than 3,000 words

(+/- 10%) and submitted, with a header sheet, by 15th December 2010 (3pm). Each response should

demonstrate understanding of the relevant theory, with application to examples.

Topics:

1. Free trade offers many opportunities for a growing business. As a management consultant,

how would you advise a company, representing an industry of your choice, to fully exploit

these opportunities when looking to expand into foreign markets for the first time?

2. Globalisation can be very threatening for smaller firms. How can governments and other

supranational authorities support these firms?

3. When entering a foreign market for the first time, a firm will be faced with many unknowns.

Distinguish between the concepts of “risk” and “uncertainty” when a firm is entering a market

of your choice. Give examples of types of risk.

4. Examine the different export strategies that are available to a firm internationalising for the

first time. With reference to specific examples, analyse the advantages and disadvantages of

an export strategy.

5. Globalisation allows companies to explore opportunities in new or established markets, with

new or existing products. Discuss the strategic options and provide examples.

6. What is the purpose of the Fairtrade movement, and how effective can it be? Refer to an

industry and country of your choice.

Marks allocated to criteria:

Criteria

20% Focus Does the report address the central problem? Does the essay stay within the topic parameters?

30% Synthesis Does the essay bring together the literature in a significant manner that addresses an essay question? Is the relevant theory critically addressed?

30% Comprehension Does the essay indicate a comprehensive understanding of the topic area and literature discussed?

10% Report structure Is the essay well organised and logically constructed?

10% Style Is the essay clearly written, spell checked and grammatically sound and referenced appropriately?

6. Other Details The majority of information relevant to you while you study at the University has been brought

together into your programme handbook. Please refer to your programme handbook for any further

information you might require including methods of submitting assignments, advice and

administrative procedures.

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