Global Strategic Management

2021/2022

Academic Year

ENG

Instruction in English

6

ECTS credits

Delivered at:

Department of Strategic and International Management

Course type:

Compulsory course

When:

1 year, 2 module

Instructor

Dikov, Desislav

Course Syllabus

Abstract

The course addresses a wide variety of environmental and organizational aspects which, when considered overall, help us to understand why some organizations thrive and others struggle in the global marketplace. The types of questions that we address are: • Why do firms go abroad? What motivates them? • What differentiates a global from a multi-domestic industry? • What potential roles can foreign subsidiaries play within MNCs? • Why and when do/should MNEs engage in cross-border alliances and acquisitions? • How do companies ensure coordination between the headquarters and its subsidiaries, and among subsidiaries? • How do companies manage strategic initiatives? • What is the role of subsidiary general managers (“country managers”)? • How can a market entry be planned?

Learning Objectives

• The course addresses a wide variety of environmental and organizational aspects which, when considered overall, help us to understand why some organizations thrive and others struggle in the global marketplace.

Expected Learning Outcomes

• An understanding of the application of these techniques in a global context;
• Experience in working in multi-cultural teams;
• Extensive knowledge of industry cases and major types of strategic decisions;
• Familiarity with many examples of successful and less successful strategies;
• Firsthand accounts of contemporary global management practice received from visiting speakers;
• Knowledge and understanding of global sourcing strategies, roles and responsibilities of different units within the MNC (e.g. headquarters and subsidiaries);
• Knowledge of strategic planning techniques and tools for strategic analysis including templates;
• Organizational abilities in relation to teamwork including presentation and report writing skills.
• The ability to analyze cases which approximates closely to the rapid analysis of global business situations;
• The ability to conduct a strategic analysis in a global stetting;
• The ability to rapidly structure ideas both as individuals and as members of a team;
• The ability to research material related to companies and business context under pressure of tight deadlines;
• The ability to take a holistic approach to the application of analytical templates and other techniques;
• The ability to think through cause-effect relationships and to assess critically common management principles;
• The know-how to obtain and analyze information which will aid decision-making;

Course Contents

• Industry-based view of strategy. A special focus on internet-imposed changes on industry dynamics
• Resources and Capabilities
• Global competitive dynamics
• Foreign market expansion
• Doing business in regulated industries: the case of global pharmaceutical industry
• Organizational structure
• Subsidiary-level strategy

Assessment Elements

• Negotiations simulation performance and report
  Cross-border Joint Venture negotiations simulation. o The case focuses on the continuing negotiations between two of the world's largest automobile manufacturers. At the time the case was written (spring 2001), the events were essentially real-time, as GM and Avto VAZ had yet to formalize their final joint venture agreement. The case is useful in debating the prospective risks and returns to a Western multinational entering the Russian marketplace, and the risks and returns to a major Russian power working with a Western firm that is highly suspicious of Russian capabilities. The deliverables of this simulation is a reflective team report about the strategy and performance during the negotiations.
• Cesim Simulation
  Cesim Global Challenge is an online business simulation game that develops participant understanding of the complexity of global business operations in a dynamic competitive environment. It integrates a range of concepts from various management related disciplines, including economical, political, and financial decision making, as well as accounting, production, logistics, research & innovation, and marketing. The task for the participant teams is to manage a global mobile telecommunications company through technological evolution in a fast-paced 21st century operating environment. The participants will develop and execute strategies for their simulated company operating in the USA, Asia, and Europe. The simulation is completely web based. There is no need to install any separate applications and the simulation can be accessed from any computer that has an internet connection. The simulation platform allows team members to work virtually if they wish. Each team member has her/his own account that enables them to make decisions and scenarios on their own and later combine the outcomes with the other team members on the [decision checklist] -page. The platform also includes a communications forum that can be used to communicate within teams and between all teams in one market.
• Peer review
  Peer Review: Since the group work is vulnerable to free riding, the peer review aims at limiting this risk. That is, you are given the opportunity to assess the contributions of your team members. In case of free riding, the review should show that the free rider’s performance was lower than the performance of the others. Peer Rating Procedure: Each group member is required to submit a peer rating form. This form is to contain an evaluation of each group member, with the exception of yourself. The form will be kept in strict confidence. Please enter the names of your team members and the respective peer rating (0-10) in the table below and send it to me with Re: Peer Rating Group X not later than December 1, 2020: desislava.dikova@wu.ac.at.
• Business cases analyses
  • HBS Business cases are analyzed in teams and submitted for evaluation, the proposed solutions are discussed online during scheduled course sessions. o Students are expected to read the cases thoroughly prior to the online class. o Students are expected to work in teams towards identifying a case problem and delivering a case solution. o The solutions to the cases have to be presented in a PPP format and submitted for grading 24 hours prior to the online discussion round.
• Individual Exam
  The exam is a semester-long assignment. Exam length should be max 3000 words of main text (tables, figures, other illustrations, and references excluded) and should demonstrate a good understanding and application of the course material. For the exam, please choose an industry (referred to as X) and perform a set of analyses, applying the respective course material and answering the following questions: 1. What challenges did industry X face during COVID-19 crises? How did the pandemic expose the vulnerabilities in the industry? 2. Which macro-economic forces are likely to impact industry X in the aftermath of the pandemic? Consider using PESTL framework to conduct the analysis. 3. Which competitive forces are likely to impact industry X and overall attractiveness in a post-COVID-19 world? Consider using Porter’s Forces to conduct the analysis. 4. Would the global pandemic affect global competitive dynamics? Consider mapping the pressure system among the key industry players and describe possible stabilizing mechanisms. How would local firms in emerging economies respond to MNEs pressures in industry X?

Interim Assessment

• 2021/2022 2nd module
  0.35 * Individual Exam + 0.2 * Business cases analyses + 0.1 * Negotiations simulation performance and report + 0.1 * Peer review + 0.25 * Cesim Simulation

Bibliography

Recommended Core Bibliography

• Beamish, P. W., & Lupton, N. C. (2009). Managing Joint Ventures. Academy of Management Perspectives, 23(2), 75–94. https://doi.org/10.5465/AMP.2009.39985542
• Birkinshaw, J., & Fry, N. (1998). Subsidiary Initiatives to Develop New Markets. Sloan Management Review, 39(3), 51–61.
• Collis, D. J., & Montgomery, C. A. (2008). Competing on Resources. Harvard Business Review, 86(7/8), 140–150. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=32709010
• D’Aveni, R. A. (2002). Competitive Pressure Systems. MIT Sloan Management Review, 44(1), 39–49.
• Dawar, N., & Frost, T. (1999). Competing with GIANTS. Harvard Business Review, 77(2), 119–129.
• Farrell, D. (2004). BEYOND OFFSHORING: Assess Your Company’s Global Potential. Harvard Business Review, 82(12), 82–90.
• Hamel, G., Doz, Y. L., & Prahalad, C. K. (1989). Collaborate with Your Competitors——and Win. Harvard Business Review, 67(1), 133–139.
• Östman, P. (2011). When Minor Ventures Matter : Aligning the strategies of a small business with the needs of humanitarian organizations on a global market.
• Parise, S., & Casher, A. (2003). Alliance portfolios: Designing and managing your network of business-partner relationships. Academy of Management Executive, 17(4), 25–39. https://doi.org/10.5465/AME.2003.11851824
• Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review, 79(3), 62–78.
• Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), 78–93. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=28000138

Recommended Additional Bibliography

• Mallette, F., & Goddard, J. (2018). Why Companies Are Using M&A to Transform Themselves, Not Just to Grow. Harvard Business Review Digital Articles, 2–5.
• MARTIN, R. L. (2016). M&A: The One Thing You Need to Get Right. Harvard Business Review, 94(6), 42–48.
• Oxman, J. A., & Smith, B. D. (2003). The Limits of Structural Change. MIT Sloan Management Review, 45(1), 77–82.