National University of Singapore s1

National University of Singapore

Global Strategy (BMA 5104)

Semester 2, spring 2013

Class Meetings: Wednesdays, 6-9pm Location: BIZ1/3-1

Instructor: Wang Lihua, Ph.D. Office: MRB #6-28 E-Mail: [email protected] Course slides, reading assignments, and announcements: IVLE

Course Description

Globalization has provided opportunities for firms to sell their products beyond their national boundary and to locate their productive activities to the optional locations in the world. However, coming with these opportunities are the immense challenges resulting from country differences and global competition. To create a successful global strategy, managers must understand the nature of global industries and the dynamics of global competition.

This course is about how firms build and sustain competitive advantage in their quest for global presence and domination. It involves understanding globalization and its impact on the firm; the selection of specific strategies for foreign market entry, while retaining the strongest aspects of the firm’s business model; the development of organizational competencies in ways that leverage advantage through a commitment to worldwide customers; selective partnership and alliances; creative use of sourcing and supply chains; and the restructuring of an organizational culture by way of responsive structures, processes. In summary, this course is about how to design and implement a successful global strategy.

This class is structured in a lecture-discussion format. There is an emphasis on using case analysis as a way of developing students’ conceptual, analytical, decision-making, and evaluative skills.

Course Objectives  Understand the basic knowledge and concepts of strategic management and applications in global context;  Understand how external environmental issues can have an influence on firm businesses;  Apply and integrate various strategic management concepts and analytical methods to real- life management situations in a corporation;  Develop critical and integrative thinking abilities;  Develop problem-solving and decision-making skills;

1  Develop oral and written communication skills;  Develop teamwork skills;  Develop global and ethical perspectives in international business

Textbook Gerardo R. Ungson and Yim-Yu Wong. (2008). “Global Strategic Management.” M E Sharpe Inc. ISBN0765616882 / 9780765616883 / 0-7656-1688-2

Course Evaluation Attendance and Participation 20 points Midterm Exam 20 points Final Exam 25 points Individual Case Report (1 × 5) 5 points

Group “What’s in the News” 5 points Group Case Discussion 5 points Company Project Paper 15 points Presentation evaluation 5 points Total Possible Points 100 points

Attendance Regular class attendance at all class sessions is an essential part of this course. An attendance sheet will be circulated in each class session except for holidays and exam dates. Each student must ensure that he or she signs the sheet. Students who fail to do so will NOT receive credits for attending the class. Signing for a student who is not present will result in an “F” in the course for the student who signs the false signature and an “F” for the person for whom the signature is signed if that person is party to requesting the false signature. We have 14 sessions in total (excluding final exam session). The total attendance points are 13 points for attendance. In other words, I will give you one “free” absence for any emergent issues. If you expect an extended period of legitimate absences at the beginning of the semester, I suggest that you take the class in another semester. If something unexpected happens during the semester which requires extended period of absence, please discuss it with me prior to your absence. Legitimate absences include university functions or serious illness. However, flat tires, car breakdowns, late buses, oversleeping, or other personal issues will not be accepted as legitimate excuses. Please note that if your cumulative minutes of being absent in one class session exceed 15 minutes, attendance points may NOT be granted.

Class participation is highly encouraged in both the lecture and the case discussion sections of the class. Quality of class contributions will be weighted more heavily than quantity. Up to 7 points will be allocated to each student on class participation. To help me learn each student’s name and grade participation and contribution as fairly as possible, you are encouraged to bring a “name plate” to each class. I have the sole authority in assigning participation grades.

2 Please note attendance score and participation score are closely related. If you don’t attend the class, it is unlikely you will have a high participation score.

Exams There will be two exams. The exams will cover your class lectures, discussions, reading assignments, and case study analysis. You are expected to take the exams at the designated time. Should you have a compelling legitimate reason, illness with a doctor’s note or death of a close family member that precludes you from being able to take the exam at the scheduled time, it must be approved by the instructor PRIOR to the exam date via a documented means, such as emails. Makeup exams will be established at the instructor’s convenience and will be essay questions only. The highest possible grade for make-up exams is 90% of total possible score.

Individual Case Report You can choose five cases to write an individual report (except the one your group will lead the discussion). YOU DON’T NEED TO WRITE AN INDIVIDUAL REPORT WHEN YOUR GROUP IS LEADING THE CASE DISCUSSION. Each reasonable case will worth 1 point in total. You are expected to write an analysis based on the case discussion questions posted on IVLE and attached at the end of this syllabus. Note I may adapt some of the discussion questions in the textbook to better suit our discussion. Please use the discussion questions I listed at the end of this syllabus and post on IVLE rather than the ones in the textbook.

Each case analysis report should be at least 600 words. Reports less than 600 words will receive 0 points. The paper is expected to be submitted on IVLE before the deadline (6pm on the day we discuss the case). Assessment of the case reports are based on the effort and understanding of the topic, rather than accuracy of the answers. Late online submission will NOT be accepted and will result in a score of zero. Note that these are strict rules with no exceptions.

Please also note that the case reports that copy extensively from other sources (such as previous student papers, online sources, etc.) will not gain any points.

You can earn .5 extra point for each additional report (beyond 5 reports).

Group Case Discussion Each group will be chosen to lead a case discussion (I will lead the first case discussion). You typically need to search outside the case to look for more information. A good discussion should provide your peers with background information and updated information (after what happened in the case), if applicable. They should be thorough, accurate, clear, insightful, and apply the principles and tools learned in the course. You must take a role as discussion leaders and encourage your classmates’ participation. Each group member can be in charge of one or two discussion questions, or providing background and updated information. It is up to your group to decide how to proceed and divide the job. Feel free to use games, videos, and other means to engage your peers. The total allocated time is about 1 hour. I will use the rest of time to conclude the case. You can also use PowerPoint Slides or write on board if necessary. Please try not to include too many slides and please try to make the discussion as interactive as possible. The pure presentation will not give you a good score.

3 Case discussions Some classes are designated to case discussions only. Much of the learning will take place in our collective discussion of the business cases. I expect that every student will arrive prepared and willing to participate in the discussion. You are expected to be able to respond when cold-called to make any effort to engage in classroom debate. Case discussions work best when students are prepared; actively listen to other people; make logical and extensive arguments rather than short, offhand remarks; and when students are willing to engage in debate with one another. Disagreement is neither a sign of disrespect nor a violation of norms, but a process of interactively arriving at more accurate understandings. It is perfectly acceptable to argue with one another, provided the tools of engagement are logic. You will quickly find that your peers appreciate your interventions and that together we get more rapidly to a correct answer. Remember this is an excellent opportunity for you to practice your oral presentation skills and don’t miss this opportunity.

Company group project Please refer to the group project guideline for details (will be posted on IVLE).

What is in the news? Each group will present one latest piece of news of global strategy for any chosen company. The date of presentation will be assigned at the beginning of the semester. The presentation should be about 15-20 minutes and use a short PowerPoint (3-5 slides). You should email me a copy of the news right before the presentation. You can use sources such as company websites, Business Week, Fortune, The Wall Street Journal, and other news sources, such as Factiva database subscribed by our university library. The news should be important enough that you think students in class should know. The purpose of this assignment is to enrich your knowledge of current global issues and improve your oral presentation skills. This can be very helpful for you to prepare your final presentation for the group project.

Groups Each group will consist of 4-5 students (the group size may change depending on the total enrollment of the class). The group will present one “what’s in the news” session, lead one case discussion, and conduct one group project. Although I will allow you to form your own groups, I reserve the right to change/modify groups. To prevent “free-riding,” each group will name a group leader. Group leaders will be the group-professor liaison and will also be responsible for calling to my attention any problems within the group, such as non-participation of members. With the support of at least half of the group, every member has the right to request the instructor to remove a non-participative member from the group. The removed party will have to work on your own or find another group yourself that will adopt you. The final decision rests with the instructor. With a simple majority, the group can impeach the group leader, with final decision made by the instructor. The instructor reserves the right to deduct points (for the company analysis project) to students who did not or make little contribution to the group project based the feedback of the team members. Team members who fail to show up on the date of team presentations will receive zero for the project, unless some severe circumstances happen during the time. It is important if there is a problem, that you do not wait until the end to discuss it with me.

4 Course Communication Your NUS e-mail address will be used as the means of communication throughout the course, so please make sure your email works. It is assumed that the student checks his/her email daily. If the student has any question or concerns, email is the best way to contact me besides regular office hours.

This course will use IVLE as the access to the learning materials. On this site you will find PowerPoint slides for each class lecture, other necessary class materials, assignments and announcements. All written assignments must be turned in electronically on IVLE before the deadline. It will be your responsibility to access IVLE to keep track of class activities. It is also your responsibility to check the scores posted on IVLE and inform the instructor if there is any mistake within ONE WEEK after scores posted via documented means, such as emails. If you disagree with my grading, you need to email me with your detailed justification (one-page, single space) before the scheduled meeting time in my office. No discussion of grade will be allowed in class. I am also not going to talk about other people’s grades with you for privacy reasons.

Professionalism The quality of your future career depends on the degree of professionalism that you exhibit. It is expected that students conduct themselves in a mature and professional manner in each class session. Professionalism include attendance at every class session, constructive participation in course activities, timely completion of assignments, the manner in which you act, courtesy towards classmates, etc. Please do not hold side conversations when others are speaking and do not read unrelated materials, such as newspapers, in class. Presentations require professional dress (such as business casual). Please turn off your pagers, cell phone, personal digital devices (palm pilots), and laptop computers while in class.

Student’s final grade will depend on the degree of professionalism that you demonstrate in this course. If you consistently act in an unprofessional manner, your final grade will be reduced.

It is considered an honor code violation to consult any material (e.g. class notes, case analysis paper, project papers) from past sections of this course. It will similarly be considered an honor code violation to share class materials with future students.

Electronic Device Policy All electronic devices must be turned off and stored out of sight in a backpack or other storage container. This includes but is not limited to cell phones, pagers, PDA's, electronic dictionaries, etc.

Statement on Cheating and Plagiarism Cheating is the actual or attempted practice of fraudulent or deceptive acts for the purpose of improving one’s grade or obtaining course credit; such acts also include assisting another student to do so. Typically, such acts occur in relation to examinations. However, it is the intent of this definition that the term “cheating” not be limited to examination situation only, but that is include any and all actions by a student that are intended to gain an unearned academic advantage by fraudulent or deceptive means. Plagiarism is a specific form of cheating which

5 consists of the misuse of the published and/or unpublished works of others by misrepresenting the material (i.e., their intellectual property) so used as one’s own work. Penalties for cheating and plagiarism range from 0 or F on a particular assignment, through an F for the course, to expulsion from the university.

Syllabus is Subject to Change The syllabus and schedule are subject to change. You will be notified of any changes in class or on IVLE. If you are absent from class, it is your responsibility to check on announcements made while you were absent.

See the Next Page for the Detailed Schedule

6 Course Schedule (Please refer to this schedule for important deadlines and course progress)

Session Date Topics 1 16 Jan Syllabus; Chapter 1: Global Strategic Management: An Introduction

23 Jan Ch. 2: Analyzing the External Environment Case 1: The semiconductor industry: Historical origins and competition in the 1990s (I will 2 lead the discussion) Deadline for submitting group members Assigning group numbers at the end of the class 30 Jan Ch. 3 Strategic Choices and Positioning 3 Case 2: Disney around the world (to be discussed by Group 1) 6 Feb What is in the news? (Group 1) 4 Chapter 4: Positioning Strategic Choice in a Global Context Case 3: Store wars: Wal-mart takes on Japan (to be discussed by Group 2) 13 Feb What’s in the news (Group 2) 5 Chapter 5: Leverage Competitive Advantage through Global Marketing Strategy Case 4: Unilever raises its India game (to be discussed by Group 3) 20 Feb Midterm Exam (covers Chapter 1, 2, 3, 4, 5) Second half of the class: GROUP TIME 6 Pick your company, develop a plan and timeline, and divide the task; start to collect information and develop an outline. 27 Feb RECESS WEEK 6 Mar What is in the news? (Group 3) 7 Chapter 6: Managing Global Sourcing Opportunities Case 5: Huawei’s generation – the next global supplier? (to be discussed by Group 4) 13 Mar What’s in the news (Group 4) Chapter 7: Strategic Alliances 8 Case 6: Alliance dynamics within NUMMI (to be discussed by Group 5) Company analysis group project outline due at the beginning of the class 20 Mar What’s in the News? (Group 5) 9 Chapter 8: Innovation Case 7: Samsung (to be discussed by Group 6) 27 Mar Case 8: Business Ethics Case (sweatshops) (to be discussed by Group 7) 10 Group project introduction and a video: China or Bust? 3 April What is in the news? (Group 6) Chapter 9: Implementing strategy using structure and process 11 What is in the news? (Group 7) Chapter 11: Financial Statements and Business Strategy 10 Apr What’s in the News? (Group 8) 12 Chapter 12: Integrating global strategic management (to be discussed by Group 8) 17 Apr Group Presentation(Group 1-4) 13 Company analysis group report due at the beginning of the class 14 24 Apr Group presentations (Group 5-8) 15 1 May Final Exam

See next page for Case Analysis Discussion Questions Case Analysis Discussion Questions

7 Chapter 2 Case 1: The Semiconductor Industry – Historical Origins and Competition in the 1990s

1. Use Porter’s five forces model to analyze the industry forces in the 1990s. 2. What are some significant changes since the 1990s in the industry and how that may affect the five forces? 3. Use George Yip’s globalization drivers to analyze the industry.

Chapter 3 Case 2: Disney around the World

1. What is Disney’s business model in the theme park business? 2. Is this business model transferable? Use Disney’s experience around the world to illustrate. 3. Is the amusement park a global industry? Why or why not? 4. What strategy should Disney adopt in Shanghai?

Chapter 4 Case 3: Store Wars: Wal-Mart Takes on Japan

1. Analyze the retail industry in Japan. Discuss the favorable and unfavorable factors that influence the retail sector in Japan (use PEST and five-force industry analysis for guidance). 2. What type of entry strategy did Wal-Mart pursue in Japan? Discuss the pros and cons of the entry strategy. What are the advantages and disadvantages of waiting? 3. Analyze the strategies adopted by Wal-Mart in Japan. Do you think it is going to be successful soon? Why?

Chapter 5 Case 4: Unilever Raises Its India Game

1. Analyze Unilever’s external environment in India using PEST and five-force framework. 2. Discuss HLL’s approach in regard to the following: a) product policy, (b) promotions, (c) positioning; and (d) pricing. 3. Can HLL continue its successful marketing activities in the future? What needs to be changed?

Chapter 6 Case 5: Huawei’s Generation – The Next Global Supplier?

1. Evaluate the steps Huawei has taken to establish itself as a major global source for NGN and 3G. 2. Do you consider Huawei’s current relationship with the Chinese government to be an advantage or a disadvantage in their aspiration to be a global source? Discuss. 3. If you are a telecom company looking for a vendor, would you like to have Huawei as your supplier? Why or why not?

8 4. If you are one of Huawei's competitors, e.g., Ericsson, or Cisco, do you think Huawei is a threat to you now and in the future? Why or why not?

Chapter 7 Case 6: Alliance Dynamics within NUMMI

1. What are the potential problems of cross-border joint ventures? 2. How did NUMMI overcome the problems that potentially arise from a partnership between firms from two cultures? 3. Evaluate NUMMI from the standpoint of the following topics discussed in the chapter: (a) selection of partners, (b) designing appropriate structures and processes, (c) enhancing learning and transparency, and (d) designing control and coordination mechanisms. 4. Check the websites of Toyota and General Motors regarding their current financial profiles. Which company appears to have learned more from this joint venture? Why? What recommendations would you make for Toyota? For General Motors?

Chapter 8 Case 7: The Seoul of Design

1. What are Samsung’s achievements in the design area? 2. How did Samsung accomplish this level of success? Discuss a set of activities that Samsung has done in this area. 3. What is gaiatsu? How does it help Samsung? 4. Is the innovative design model carried out by Samsung transferable to other companies in Korea, in other countries? Why and why not?

Case 8: Business Ethics Case The discussion questions and the detailed instructions will be on IVLE.