mgt505 international business

Unit title: International Business

Unit code: MGT505

Credit points: 8cp

Unit description: There are substantive strategic and organisational challenges experienced by firms as a result of global market integration. This course examines the international dimensions of managerial decision making in business. The several environments, cultures, and other factors which, naturally, continue to affect the firms engaged in international business, compel us to study the interaction between people and firms in international work settings.

Unit objectives: This unit is designed to enable students to:

Knowledge

1. Understand the current trends in international business

2. Examine alternative modes for participating in international markets as well as variables associated with the selection and implementation of these market participation modes.

3. Have a recognition for the environmental factors, which shape international strategy and operations, including the political, economic, technological, and behavioural factors

4. Characterise the “what”, “why” and “how” of international business management

5. Understand how international involvement influences management in the functional areas

Skills

1. Have increased effective managerial functionality in the dynamic milieu of international business

2. Sharpen their ability to analyse international environments, choose, and implement appropriate strategies for entry

3. Evidence fluency in the theories and concepts that align firms with their systems in the international arena

4. Develop criteria and evaluate new opportunities for internationalisation

5. Model the ethics of social responsibility in corporate practise

Values/Attitudes

1. Value strategic foresight for macro and micro international business management

2. Value creative and critical evaluation of multiculturalism

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3. Value the need for a tolerance of ambiguity by developing a global mindset

4. Value ethical practice in the international arena

Unit outcomes: 1. Formulate and manage the process of internationalisation competently

2. Demonstrate the ability to “continue learning” in the field of international business

3. Display a sensitivity to the unique risks and opportunities in international business

4. Show sensitivity to the unique ethical issues that arise in the conduct of international business

Readings: Recommended texts

1. Deresky, H. (2002), International management: Managing across borders and cultures, 4th edn., Upper Saddle River, NJ: Prentice-Hall.

2. Hodgetts, R. M. & Luthans, F. (2002), International management: Culture, strategy, and behavior with world map, 5th edn., New York: McGraw-Hill.

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Supplementary readings

1. Thomas, D.C. (2002), Essentials of International Management: A cross-cultural perspective, Thousand Oaks, CA: Sage.

2. Lane, H.W., Distefano, J.J., & Maznevski, M.L. (2000), International management behaviour, 4th edn. Oxford: Blackwell.

3. Academy of Management Journal

4. Asia Pacific Journal of Management5. Business Week

6. Far Eastern Economic Review7. Forbes8. Fortune9. Harvard Business Review10. Journal of Cross-cultural Management

11. Journal of International Business Studies

12. Journal of Marketing13. Newsweek14. Sloan Management Review15. The Economist

16. The Financial Times

17. Time

Unit contents: TOPICS

1. The global business environment—political, economic, legal, and technological assessment

This is the introductory module and it focuses on the peculiarities of the environment of international business. It assesses the political, legal, economic and technological environments including an understanding of the tools necessary for their assessment.

Breakout session/discussion

Doing business in the People’s Republic of China

Comparative country risk rankings and their usefulness

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Case application / mini case

Footwear international by Gordon Blake.

Short assignments/Tests

Do a political risk assessment of Malaysia/Singapore/Indonesia

Readings:

Deresky (chapter 1)

Kobrin, S. (1979), Political risk: A review and reconsideration, Journal of International Business Studies, Spring-Summer

Toyne, B. & Nigh, D. (1997), Foundations of an emerging paradigm, In: B. Toyne and D. Nigh (eds.), International Business: An Emerging Vision. Columbia, SC: USC Press.

2. Comparative management—Dialectics of differentiation

This module looks at the strategic concept of interdependence in international business in terms of its inevitability and the choices firms have regarding its application.

Group discussion/Breakout sessions

Case applications / mini cases

George Burgess by Gary Ferraro

Parris-Rogers International (PRI) by Hough and Neuland (2000).


Doing stakeholder analysis

Readings

Deresky (chapter 2)

Adler, G. (1995), The case of the floundering expatriate, Harvard Business Review, July, 24-40

Zaheer, S. (2000), Time-zone economies and managerial work in a global world in P. C. Earley and H. Singh (eds.), Innovations in International and Cross-Cultural Management, Thousand Oaks, CA:

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Sage.

3. Managing interdependence: Social responsibility in the international business environment

As firms operate across different social and economic circumstances, they are often called to be social responsive and ethical to their environments. This module looks at the issues of social responsibility as they uniquely affect international business and their practices.

Experiential exercise/discussion

Rigged bids and bribery, based on Delaney, J., & Sockell, (1991), “Ethics in trenches,” Across the Board. 10, 17.

Aids: Nestle’s New Moral Dilemma in Africa


Aung Sein: An entrepreneur in Myanmar, by Robert W. Hornaday


Using the Carroll’s three-dimensional model of corporate social responsibility

Readings

Deresky (chapter 2)

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4. The role of culture in international business

This module examines the meaning and relevance of culture to international business. The module also discusses the measurements and tools of analysis available to international business managers and their records of culturally sensitive management overseas as documented by research.

Discussion

Personal experience overseas



Critical incidents selected from Singelis, T. M. (ed.). (1998). Teaching about culture, ethnicity & diversity: Exercises and planned activities. Thousand Oaks, CA: Sage Publications.

Readings

Deresky (chapter 3)

Triandis, H. (1989), The self and social behavior in differing cultural

contexts. Psychological Review, 96 (3): 506-520.

Adler, N. (1983), Cross-cultural management research: The Ostrich

and the trend. Academy of Management Review, 8: 226-232.

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5. Communicating across cultures

The module examines the communication process and the importance of cultural noise in the process. The module also discusses the technology-communication link as well as the management of cross-cultural communication.

Action learning

Negotiation simulation—Setting: Malaysia/Japan


Selected mini cases from Chaney & Martin (2000)

Snippets and vignettes

Group discussions

Oriental poker face: Eastern deception or Western inscrutability In Deresky (2002)

Readings

Deresky (chapter 4)

Chaney, L. H. & Martin, J. S. (2000), Intercultural business

communication. Upper-Saddle River, New Jersey: Prentice-Hall.

Ruben, B.D. & Kealey, D.J. (1979), Behavioral assessment of communication competency and the prediction of cross-cultural adaptation International Journal of Intercultural Relations, 3: 15-47.

6. Comparative management—Profiling cultures

This module looks at the process, methods and analytic methods of culture profiling and the effects it has on the business and

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management strategy of firms. Managerial styles around the world are studied as expressions of their cultures.

Experiential exercise

Measuring culture: Individualism and collectivism

Script for Juan Perillo and Jean Moore In Deresky (2002)


Rough Times at Nomura

Trouble at Computex Corporation In Deresky (2002)

Readings

Deresky (Chapters 3 & 4)

Bhagat, R. S. and McQuaid, S. J. (1982), Role of subjective culture in organizations: A review and directions for future research," Journal of Applied Psychology Monograph, 67(5) :653-685. (For emic versus etic approaches)

Bartlett, C.A., & Ghoshal, S. (1992), Transnational management: Text, cases, and readings in cross-border management. Homewood, IL: Irwin.

7. Cross-Cultural negotiation

Since firms operate in conditions in which their resources are not unlimited, they sometimes need to triage their resources, be it human capital, capital assets, or technological know-how. Negotiation is discussed in a cultural context with a focus on the techniques and patterns often adopted by different cultural elements.


Guanxi in Jeopardy: Joint Venture Negotiation in China

Mr Chan and Mrs Robertson

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Simulation exercise

Multicultural Negotiations

Readings

Deresky (Chapter 7)

Fagre, N. & Wells, L. (1982), Bargaining power of multinationals and host governments, Journal of International Business Studies. Fall

Lecraw, D. (1984), Bargaining power, ownership, and profitability of subsidiaries of transnational corporations in developing countries, Journal of International Business Studies, Spring-Summer

Contractor, F. (1985), A generalized theorem for joint venture and licensing negotiations, Journal of International Business Studies.

8. Comparative management—Decision making

Decision making being one of the cardinal functions of management is examined in the international arena. Focus is directed at the processes and models of decision making that help managers in the important skills they need to negotiate


Moto: Coming to America

Simulation

TelSys International: A marriage of two cultures in Deresky

Readings

Deresky (Chapter 7)

Black, J. S., & Porter, L. W. (1991), Managerial performance and job performance: A successful manager in Los Angeles may not succeed in Hong Kong, Journal of International Business Studies, First Quarter: 99-113.

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Zaheer, S. (1999), Time-zone economies and managerial work in a global world in P. C. Earley and H. Singh (eds.), Innovations in International and Cross-Cultural Management, Thousand Oaks, CA: Sage.

9. Strategy formulation for international and global operations

Decisions are important for strategy formulation. In this module, the pull and push reasons that compel firms to go international are examined. The processes involved in formulating strategies as well as the strategic initiatives in practise are discussed. The module will allow the learning of the skills that managers would need to formulate and implement strategic initiatives.

Breakout Session

Examine the “pull” and “push” reasons why your company may want to go to Nigeria/Russia/Brazil/Indonesia

Mini case

Cola Wars: The Venezuelan Coup


Present a strategic analysis report to the class justifying the internationalisation plans of your company to Nigeria/Russia/Brazil/Indonesia

Readings

Deresky (Chapter 6)

Schneider, S. C. (1989), Strategy formulation: The impact of national culture, Organization Studies (10) 2, 157-176.

Kohn, M. (1987), Cross-national research as an analytic strategy,

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American Sociologigal Review, 52:713-731

Hamel, G. & Prahalad C. K. (1985), Do you really have a global strategy? Harvard Business Review, July/August.

10. Implementing strategy in international business

The specific types of strategic alliances firms enter into are discussed in this module. Global alliances including joint ventures and unusual alliance practises are discussed.

Discussion

Wal-Mart’s Implementation Problems in North America In Deresky

Case application

Ben & Jerrys and Iceverks: Alliance Meltdown in Russia In Deresky


Partner Selection in an International Context In Deresky

Readings

Deresky (Chapters 6 & 7)

Habib, M.M. & Victor, B. (1991), Strategy, structure, and performance of U.S. manufacturing and service MNCs: A comparative analysis, Strategic Management Journal, 12: 589-606.

Ghoshal, S. (1987), Global Strategy: An Organizing Framework, Strategic Management Journal, 8, 425-440.

Kobrin, S. J. (1991), An Empirical Analysis of the Determinants of Global Integration, Strategic Management Journal, 12, Summer.

Yip, G. S. (1989). Global strategy in a world of nations? Sloan Management Review, 31(1): 29-41.

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11. Structuring and controlling international business firms

This module examines how to plan the structure and control systems in international business. The important issues regarding centralising control and decentralising control, the role of information systems, reporting systems and monitoring systems are examined and discussed.

Breakout session

How can an international company structure itself for global operations, yet retain the local flavour in its various spheres of operations


Flexit International In Deresky

Short assignments

Do some research on likely reporting issues facing a Malaysian multinational with subsidiaries in Haiti and the U.S.A.

Readings

Deresky (Chapter 8)

Habib, M. M. & Victor, B. (1991), Strategy, structure, and performance of U.S. manufacturing and service MNCs: A comparative analysis. Strategic Management Journal, 12: 589-606.

Gupta, A. & Govindarajan, V. (1991), Knowledge flows and the structure of control within the multinational corporation, Academy of Management Review, 16(4): 768-792.

Doz, Y. & Prahalad, C. K. (1984), “atterns of strategic control within multinational corporations, Journal of International Business Studies, Fall: 151-167.

Gomes-Casseres, B. (1989), Ownership structures of foreign subsidiaries: Theory and evidence, Journal of Economic Behavior and Organization 11.

Nohria, N. & Garcia-Pont, C. (1991), Global strategic linkages and industry structure, Strategic Management Journal, 12:105-124

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12. Recruiting and training global managers

International human resource management is a peculiar area in which international business managers are very concerned. Because of the many nations, cultures, practices, beliefs, and values through which international business managers must operate, it is a challenge to attract, motivate and retain international talent. Issues relating to staffing and training are discussed here exhaustively

Breakout session

Why is the human resource role of selection so complex, yet, intricate in international assignments

Case application

Fred Bailey in Japan: An Innocent Abroad In Deresky

Readings

Deresky (Chapter 9)

Hannigan, T. P. (1990), Traits, attitudes, and skills that are related to intercultural effectiveness and their implications for cross-cultural training: A review of the literature, International Journal of Intercultural Relations, 14:89-111.

Mendenhall, M., Dunbar, E., & Oddou, G. (1987), Expatriate selection, training, and career pathing: A review and critique, Human Resource Management, 26: 331-345.

Earley, P.C. (1987), Intercultural training for managers: A comparison of documentary and interpersonal methods, Academy of Management Journal, 30: 685-698.

Mendenhall, M., Punnett, B., & Ricks, D. (1995), Global management, Blackwell Publishers, Oxford, UK.

13. Developing a global managerial cadre

This module examines the preparation, adaptation, and repatriation of expatriate staff. The new developments in the international arena

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are also considered, for example, the role of women, diversity, in general terms, and union management relations.

Discussion

What are some of the reasons why there are so few women expatriates around the globe compared to their male counterparts

Case application

A First-Time Expatriate’s Experience in a Joint Venture in China in Deresky

Short assignments

Make a list of reasons why a would-be expatriate would choose to accept a foreign posting and a list of reasons he or she would opt not to; assuming he or she were given a choice.

Readings

Deresky (Chapter 10)

Bennett, M.J. (1986), A developmental approach to training for intercultural sensitivity, International Journal of Intercultural Relations, 10, 179-196.

Dunbar, E., & Katcher, A. (1990), Preparing managers for foreign assigments. Training and Development Journal, September, 45-47.

Harrison, J.K. (1994), Developing successful expatriate managers: A framework for the structural design and strategic alignment of cross-cultural training programs. Human Resource Planning, 17: 17-35.

Mendenhall, M., Punnett, B., Ricks, D. (1995), Global management, Blackwell Publishers, Oxford, UK.

Black, J.S., & Mendenhall, M. (1990) Cross-cultural training effectiveness: A review and a theoretical framework for future research. Academy of Management Review, 15, 113-136.

14. Cross-cultural leadership and motivation

This module looks at how to develop an international managerial cadre. However, it is obvious that work has different meanings to different individuals. Other considerations include the intrinsic versus extrinsic dichotomy of motivating workers, the reward systems, and the contingency driven perspective of the need for leadership in the international context.

Group discussion

Leadership experience in Malaysian companies.

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Biographies of accomplished leaders, e.g., Welch, Ghoshal, Reagan, Ghandi, etc.

Case applications

AT & T consumer products

Toyota’s Tough Boss in Deresky

Readings

Deresky (Chapter 11)

Derr, C. B., Roussilon, S., & Bournois, F. (eds.) (2002), Cross- cultural approaches to leadership development. Westport, CT: Quorum

Dorfman, P.W., Howell, J.P., Hibino. S., Lee, J.K., Tate, U., & Bautista, A. (1997), Leadership in Western and Asian countries: Commonalities and differences in effective leadership processes across cultures, Leadership Quarterly, 8: 233-274.

Gerstner, C.R. (1994), Cross cultural comparisons of leadership prototypes, Leadership Quarterly. 5(2): 121-134.

Black, J.S., & Gregersen, H.B. (1990), Expectations, satisfaction, and intention to leave of American expatriate managers in Japan. International Journal of Intercultural Relations, 14: 485-506.

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mgt505 international business

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