MANAGING & MARKETING IN THE GLOBAL
ARENA
FALL SEMESTER 2010
MAN 385.33 – UNIQUE #04705
Professor
Class Times
Class Room
Office
Office Hours
Phone
E-Mail
Course Web Page
Teaching Assistant
John N. Doggett
Mondays from 5:00 to 8:00 pm
UTC 1.118
CBA 5.124k
Mondays from 3:30 to 4:30 pm or by appointment
(512) 232-7671
[email protected]
via Blackboard
Tylor Seaman
[email protected]
Course Objectives
The emergence of China, India, Brazil, and other emerging economies has fundamentally
changed how we think about global business. This course is designed to help you understand
the sea change in global competition that we are experiencing. It will help you understand
how managers anticipate and respond to competitive pressures in a rapidly changing global
marketplace. It will help you enhance your analytical, decision-making, and implementation
skills in an intense, highly competitive classroom environment. It will also help you
understand and apply analytical tools used by managers and management consultants to
exploit competitive opportunities and effectively respond to competitive threats.
This course will focus on significant international marketing, managerial, and operational
challenges and opportunities from the perspective of managers with decision-making
responsibility in many parts of the world. We will pay significant attention to the impact the
growth of the Chinese and Indian economies are having on the rest of the world. We will also
explore the impact that Globalization and Sustainability are having on how people manage,
work, and live.
Leadership and this Course
Each of you must participate in a group case analysis competition during the semester. The
goal of this case competition is to give you experience working together under tremendous
Doggett
Managing and Marketing in the Global Arena Course —Fall 2010
page 2
pressure with a short time frame when the choice of strategies to pursue is not clear. Each of
you will be "energetically" questioned by me during the in class case competition.
This case competition will help you develop your leadership skills in a number of ways. First,
you will learn how to manage groups of peers where each student cannot be the group leader.
Second, you will learn to manage a decision making process with inadequate information and
time. Finally, by observing and reflecting on the dynamics of your team and your interaction
with me during the class room competition, you will develop a deeper understanding of what
leadership requires.
Materials
Books: I have assigned two books that will help you understand the dynamics of what is
happening in China and India. While I have not assigned specific pages for you to read each
week, you cannot pass the midterm without reading both books. I have also recommended
several other books that will help you deepen your understanding of India, China, Brazil and
competition in general.
Materials
Case Packet: You must purchase your case packet from www.hbsp.edu
Books: Purchase on-line or at a bookstore. They are not in the Co-op.
Required Books
Getting India and China Right: Strategies for Leveraging the World's Fastest Growing
Economies for Global Advantage by Anil K. Gupta and Haiyan Wang, Jossey-Bass, 2009.
When China Rules the World: The End of the Western World and the Birth of a New Global
Order by Martin Jacques, Penguin Press HC, 2009.
Recommended Books
Imagining India: The Idea of a Renewed Nation by Nandan Nilekani, Penguin, 2010.
Brazil on the Rise: The Story of a Country Transformed by Larry Rohter, Palgrave Macmillan,
August 31, 2010.
The Party: The Secret World of China's Communist Rulers by Richard McGregor, Harper,
2010.
The Innovator’s Solution: Creating and Sustaining Successful Growth by Clayton M.
Christensen and Michael E. Raynor, HBS Press, 2003.
Doggett
Managing and Marketing in the Global Arena Course —Fall 2010
page 3
Course Requirements and Grading
Class Participation = 50%
This course will require a minimum of 14 hours of work per class. You must spend at least 3
hours analyzing each case and at least 1 hour preparing an action plan that is supported by
rigorous analysis for each case prior to class.
Each student must also join a study group of fellow students and spend a minimum of one
hour discussing each case prior to class. During our class sessions, each student must be
prepared to actively participate in the discussion of every case.
Your class participation grade will be based primarily on the quality of your comments, not on
the quantity. Comments that demonstrate a thorough analysis of the issues presented by
each case, an awareness and appreciation of the comments made by fellow students,
implementation of the frameworks from the readings that add to the learning process of the
class will receive high grades. Comments that ignore the content and flow of the discussion or
that reflect inadequate preparation will receive low grades.
Group Presentations = 20%
During the semester, each of you will participate in a group presentation of cases that are
assigned. The group presentations will be held three weeks prior to the last week of class.
The group presentation process will require the active participation of each group member in
the analysis of the group case, in the development of an action plan, and in the development
of materials to assist the group in making an effective forty minute presentation to the entire
class.
Group presentation grades will be based upon the quality of analysis, the "do ability" of the
action plan, the quality of the presentation, and the ability of the group to respond effectively
on their feet to the questions posed by members of the class and the instructor. Each group
member must actively participate in the presentations. Your classmates will grade each
presentation.
We will have a full day of presentations. The class will self-divide into six groups. Three
groups will present one case and the other three will present the second case. The groups not
presenting will grade the groups presenting. One group for each case will receive an A, one
will receive a B and one will receive a C. Your individual grade for group presentations will be
the grade that your group receives.
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
page 4
Mid-term Exam = 30%
Each of you will have the opportunity to spend four hours for reading, analyzing and
developing an action plan for a case for a mid-term exam. Examination grades will reflect
your success in identifying key challenges faced by the manager, developing a realistic plan of
action to respond to the managerial challenges presented by the exam Case, and performing
in-depth quantitative and qualitative analysis to support your action plan.
Missing Class Policy
I know that one of your priorities may be to get a job in the midst of the worst recession since
WW II. My policy on missing classes is as follows.
You must submit a 10-page write up for every case that we covered when you missed a class.
This 10-page write up must be submitted to the class TA by the beginning of the next class. If
you do not submit one paper per missed case to the TA by the beginning of the next class,
your maximum potential grade for the semester will be reduced by ½ of a letter grade.
If you miss more than one class, your maximum potential grade for the semester will be
reduced by ½ of a letter grade for each additional class that you miss, if you submit the 10page paper by the beginning of the next class. If you miss more than one class and do not
submit the 10-page paper by the beginning of the next class, your maximum potential grade
for the semester will be reduced by 1 full letter grade. I will waive the ½ or 1 grade penalty
for exceptional circumstances that are related to the health or safety of yourself, your spouse,
your children, your family, or your significant other.
Schedule
1.
2.
Monday, August 30, 2010
a.
Case:
b.
Lecture:
Where Have You Been? An Exercise to Assess Your
Exposure to the Rest of the World’s Peoples.
Global Management in the 21st Century
Monday, September 13, 2010
a.
b.
Note:
Case:
Note on Low-tech Marketing Math
Republic Flour
Study Questions for Republic Flour Mills Case
1.
2.
What business does Republic think it is in?
Who are Republic's customers? What are they buying?
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
3.
4.
5.
6.
page 5
What business do you believe Republic Flour is really in?
What are the Key Factors for Success in the business that they should be
in?
What are their most pressing problems and how much are these problems
costing them?
What does your break-even analysis (# of bags they need to sell per
month to cover their costs) tell you about Republic Flour's condition?
Your Breakeven Analysis must be turned in at the beginning of class.
Make sure that you keep a copy for yourself!
7.
8.
9.
10.
3.
Should they open their second plant? If not, what should they do with it
and how much will your recommendation cost?
What are the most realistic options to solve Republic's problems, how
much do each of them cost and how much money will each of them make
Republic?
Do you think this company will be successful? Would you invest your
money in it?
Prepare an Action Plan that tells me:
a.
How long can they last before they go bankrupt?
b.
What should they do and why should they do it?
c.
What options you considered and abandoned?
d.
When should they take action?
e.
How much will it cost and where will the money come from?
f.
Who will do what to whom when?
g.
When will results start to show?
h.
How much money will your strategy make Republic Flour and when
will their cash flow turn positive?
i.
What happens if you are wrong?
Monday, September 20, 2010
a.
Note:
b.
c.
Case:
Case:
The Competitive Advantage of Nations
In the Spotlight: The Market for Iron Ore
Vale: Global Expansion in the Challenging World of Mining
The Dabbawala System: On-Time Delivery, Every Time
Study Questions for Vale
1.
2.
3.
4.
How important is the growing Chinese market to Vale?
What challenges does moving from “negotiated prices” to spot market
prices create for Vale?
What are the challenges that Vale’s senior management faces given that
Brazil’s president is a former labor union leader?
What should Agnelli do to deal with political pressures at home?
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
page 6
5.
Did it make sense for Vale to purchase large vessels to ship iron ore to
Asia at a time when the shipping industry had excess capacity?
Study Questions for the Dabbawala System
1.
As more and more Indian women enter the workforce, will there still be a
need for Dabbawalas?
What is the greatest competitive threat to the Dabbawala business model?
How can this system work without computers and software?
Will cell phones, computers and software give the Dabbawala’s a
competitive advantage or will they be the end of their system?
2.
3.
4.
4. Monday, September 27, 2010
a.
b.
c.
d.
Note:
Note:
Case:
Case:
An Introduction to Islamic Finance
Strategies that Fit Developing Countries
The International Investor
Arcapita – 2002
Study Questions for the International Investor
1.
2.
3.
4.
5.
6.
7.
Is Equate an attractive investment opportunity for the sponsors? What
are the expected internal rates of return for equity investors? For
subordinated debt holders?
Are the returns commensurate with the risks? What are the major
operating and financial risks? What is the minimum debt service ratio
(DSCR) for the term loans only (for total debt including subordinated
debt)? When does it occur and why? What is the average DSCR and
what does it tell you?
DSCR = Cash Available for Debt Service (CADS) / Principle and Interest
Average DSCR = # years * DSCR/# years
Should the sponsors use a tranche of Islamic finance? If so, how big
should it be and what form should it take?
How would the inclusion of an Islamic tranche affect the deal? How
would you address these complications?
How much of the Islamic tranche should TII underwrite?
Study Questions for Arcapita - 2002
1.
2.
3.
4.
5.
Assess Arcapita’s business model before and after 9/11.
What changes, if any, should Arcapita make to its business model?
Why is Arcapita facing a cash flow crunch?
What should Atif Abdulmalik do to solve the current cash flow problem?
What structural changes should he make in the future to prevent this
problem from reoccurring?
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
page 7
5. Monday, October 4, 2010
a.
b.
c.
Note:
Case:
Case:
Blue Ocean Strategy
HTC Corp in 2009
Re-THINK-ing THINK: The Electric Car Company
Study Questions for HTC Corp in 2009
1.
2.
3.
4.
5.
Would you want to work for HTC? If so, in America, Taiwan or Europe?
What was Peter Chou’s secret to breaking HTC out of its OEM role so it
could become the producer of branded products?
Can the HTC brand ever reach the iconic stature of Apple, Motorola, RIM,
or Nokia?
Should HTC create its own App Store or just rely upon Google to manage
that part of its business?
What should be HTC’s next four products?
Study Questions for Re-THINK-ing THINK
1.
2.
3.
4.
5.
6.
Should Canny launch this US entry plan? Why or why not?
In the US, who is your top choice for the long-term (5 years) customer
group? Why will they choose THINK City?
In the US, who is your top choice for the initial customer group? Why will
they choose THINK City?
What should be Canny’s “minimum objectives” five years after market
entry?
To drive adoption, who are the top three strategic partners that Canny
needs to recruit and what, specifically, would you want these partners to
do?
How should THINK’s European strategy and experience relate to its North
American strategy?
6. Monday, October 11, 2010
a.
Note:
b. Case:
c. Case:
Emerging Giants: Building World Class Companies in
Developing Countries
TeamLease: Putting India to Work (I1) Legally
Shanzai! MediaTek and the "White Box" Handset Market
Study Questions for TeamLease
1.
2.
3.
4.
How important is growth for TeamLease’s future?
What are the biggest challenges that TeamLease faces going forward?
Which competitors worry you the most?
What should TeamLease do?
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
page 8
Study Questions for Shanzai! MediaTek and the "White Box" Handset Market
1.
2.
3.
4.
5.
Is it time for MediaTek to go after Tier 1 handset makers and try to secure
design wins?
Why does the Chinese mobile handset market have so many
undifferentiated players?
What “job” did MediaTek do for its customers?
Can you explain why MediaTek was so successful?
What do you predict will happen next? If you were the general manager
of Nokia China, what would you do?
7. Monday, October 18, 2010
In Class Midterm
8. Monday, October 25, 2010
a.
b.
c.
d.
Discuss Midterm
Note:
Strategy as Active Waiting
Note:
Russia: Revolution and Reform
Case:
Enel: Power, Russia, and Global Markets
Study Questions for Enel: Power, Russia, and Global Markets
1.
2.
3.
4.
Why would Enel think doing business in Russia made sense given
the crackdown on Russia’s oligarchs?
What are the biggest political and business risks for Enel in Russia?
What should they do to mitigate those risks?
What impact has the global recession had on the viability of Enel’s
investment in Russia?
9. Monday, November 1, 2010
a.
b.
c.
Note:
Case:
Case:
Clusters and the New Economics of Competition
Metro Cash and Carry
Mirae Asset: Korea's Mutual Fund Pioneer
Study Questions for Metro Cash and Carry
1.
2.
3.
What have been MCC's key competitive advantages as it has moved into
emerging markets?
What role did institutional context play in challenging MCC's efforts to
prove the value proposition of its unique wholesaling format and establish
itself as an accepted corporate citizen in Russia, India, and China?
How would you rethink MCC's approach to strategic expansion and public
relations in India going forward?
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
page 9
Study Questions for Mirae Asset
1.
2.
3.
4.
5.
What is Mirae Asset selling? What customers really need their products
and services?
Why have they been so successful in Korea, India and Brazil?
How attractive is the Chinese market for Mirae Asset?
Should Park Hyeon-Joo build on his emerging market expertise and focus
his business expansion in developing countries? If so, where should he
concentrate his efforts -- India, Brazil, China, or other countries?
Or should he instead focus on expanding into developed markets through
operations in New York and London?
10. Monday, November 8, 2010
a. Case:
b. Case:
Unsafe for Children: Mattel’s Toy Recalls and Supply Chain
Management
Ma Jun and the IPE: Using Information to Improve China’s
Environment
Study Questions for Unsafe for Children
1.
2.
3.
4.
5.
Why do companies outsource?
What were the primary causes of Mattel’s recall problems? Were these
the results of outsourcing?
What actions were taken by the principals in the case to address the recall
problems? Were these the right actions?
What should Mattel do now? What should China do?
How can accountability be better managed in long, global supply chains?
Study Questions for Ma Jun and the IPE
1.
2.
3.
4.
What are the key accomplishments of Ma Jun and the IPE so far? What
were the drivers of success?
How can Ma Jun increase the impact of his non-profit organization?
Will your proposal require Ma Jun to raise more funding and, if so, from
whom?
What, if any, changes should Ma Jun advocate in China’s legal and
regulatory systems?
11. Monday, November 15, 2010
a.
Case:
b.
Case:
GROUP PRESENTATION CASES
HNA Group: Moving China’s Air Transport Industry in a
Different Direction
Tata Nano: The People’s Car
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
page 10
Study Questions for HNA Group
1.
2.
3.
What is HNA’s product? What “job” is HNA helping its customers do?
Who are its most important customers and why do they need HNA?
What is the most viable substitute for HNA’s product and who are its most
important competitors?
What should the HNA Group do?
4.
Study Questions for Tata Nano
1.
2.
What is Tata’s product? What “job” is the Nano helping its customers do?
Who are the Nano’s most important customers and why do they need the
Nano?
What is the most viable substitute for the Tata Nano and who are its most
important competitors?
What should Tata do with the Nano?
3.
4.
12. Monday, November 22, 2010
a.
Case:
b.
Case:
Baring Private Equity Partners India Limited: Banking
Services for the Poor in Bangladesh
Jiamei Dental: Private Health Care in China
Study Questions for Baring Private Equity Partners
1.
2.
3.
4.
5.
6.
7.
How do you measure the success of a social entrepreneurship venture?
Is microfinance beneficial or does it just make poor people a little more
comfortable in their poverty?
Why was the Grameen Bank successful?
What challenges does the Grameen Bank face going forward?
Why was SafeSave successful?
Is SafeSave replicable, and if so, to what extent?
What type of microfinance model should Subramaniam target for
investment in India?
Study Questions for Jiamei Dental: Private Health Care in China
1.
2.
3.
4.
Is the Chinese government’s expansion of China’s healthcare system good
or bad for Jiamei?
What are the biggest challenges that Jiamei faces? How important are its
private equity investors?
Who are the competitors that represent the biggest threat to Jiamei?
Should they continue growing or focus on improving the competitive
position of their current locations?
Managing and Marketing in the Global Arena Course —Fall 2010
Doggett
page 11
13. Monday, November 29, 2010
a.
b.
Case:
Case:
Codevasf
ITC e-Choupal: Corporate Social Responsibility in Rural
India
Study Question for Codevasf
1.
2.
3.
4.
Why have previous irrigation efforts failed, and how is the current
proposal circumventing those problems?
Will investors find the proposal attractive?
Specifically, what companies might be (should be) willing to participate?
How should the offer be modified, if at all?
Study Questions for ITC e-Choupal
1.
2.
3.
4.
How does ITC manage the dilemma of balancing its profit objectives with
its social objectives and expectations in implementing CSR? Does the ITC
e-Choupal initiative really respond to the development needs, concerns
and priorities of rural India?
How can ITC take e-Choupal to the next level in leveraging information
technology(“IT”) to deliver business and social benefits?
Poor people at the BOP represent a very attractive market opportunity.
The BOP model argues “that selling to the poor can simultaneously be
profitable and help eradicate poverty”. Do you agree with this statement
in reference to India and ITC’s e-Choupal?
Discuss the accomplishments, prospects and challenges for the managers
of the modern supply chain of e-Choupal.