International Management

We started the course with a debate whether the world is global or not – it is not global but moving towards globalization

We looked at the role of institutions – domestic and international -  How institutions can influence globalization (IMF, WTO, World Bank etc)

Next we looked into the organization of MNCs  - strategy structure and how powers are to be allocated how R&D should be managed etc

Next we learnt about how the world is different and how we create value in it, CAGE and Adding Value Framework

Next- Entering Foreign markets – Entry Modes Global Capital markets etc.

Cases

Aviation Industry – Airbus vs Boeing – How government steps in and supports industries

TelecomSector – Finland and Nokia Case  - Government support for a firm to do well

Fast food industry – which was more of a cultural arbitrage – how foreign company can charge a premium in the developing market and the struggle of power between the HQ and Subsidary

Oil Industry – Difference between up stream and down stream business, which part is profitable why there is so much concentration, veritical integration and monopoly powers

Phillips and Panasonic and EMI CT Scanner Case case – Strategy structure and power debate between HQ and subsidiary

Management of R&D in the GE health Care

CAGE framework through the Bear industry

Amorapacific – shift from developing to developed countries – success factors etc

Steel industry and its consolidation

Santender case – banking industry – how banking is becoming global

Media Sector – Zee Tv and Star how the sector evolved and link to economic reforms and how indian media house are adapting to the competition from the international market

IT sector – TCS how we are moving from body shopping to offshoring and near shoring

Zara case – Power struggle between up stream and down stream, li Fund case

Final take away – Growth opportunities are moving towards developing countries, State policies, infrastructure and cultures are  to be kept in mind Rules of the game are different across countries

Market institutions are either missing or inefficient and are in the stage of evolving in the developing countries

This course explores the different facets of complexities that the top management of a multi business firm faces in a global world

Here we looked into difference from core strategy course,

Difference in product diversification vs geographic diversification, How impact of crisis if different in trade liberalization and capital market liberalization

Strategic trade theoy:

Basics of international trade theories, zero sum game, Adam smith’s absolute advantage, recurring Competitive advantage, strategic trade theory of

Effects of tariffs, impact on consumers, producers and the government, whether tarrif is good or bad is a complex question to answer and it depends on so many other factors

Other kinds of trade barriers like export subsidy, import quota, license raj of india, Anti dumping policies.  Effect on different stake holders

Basically trade barriers and trade theories we studied the impact on different stakeholders, Any kind of trade barriers is good for the producers but not good for the consumers , we also looked at the political and economical side of the story, We also studied how US keep on shifting from Keynesian (When they do well) and  to free market ideologies (when they are not doing well)

How government subsidy can help an industry to become competitive in the global market

In Nutshell

Competitive advantage talks about structure, if I am not efficient then I should not produce but strategic trade theory talks about I might not be efficient today but if I get a support from government in terms of subsidy and production I can be efficient tomorrow

Political economic policies - WTO – Controversial decisions, Multi Fiber agreement, export subsidy in agriculture etc.  life saving drugs, ebola vaccines, aids.

Preferential trading agreement -  It is good in an efficient country but not good in inefficient country, effect on domestic companies can be bad if the partner is inefficient

Porter’s diamond framework – How it evolved, 10 countries and 100 industries, Why is it important-  he talked about competitive advantage as a function of resources in the boundary of firms, when we compare two firms across countries we have to not only look at firm level resource but also the institution level funding that each firm is getting

We are placing the competitive advantage and strategies that we studied in the core course into international context by using the porter’s diamond framework

Theory of competitive advantage wrt international trade and investment theory – porter framework – bridge between competitive advantage theory and the International trade theory

Strategy and structure of the company – where we should locate power hQ or subisdary – work od Stephen hiemer how international org evolved from U form to M form,  we looked at Phillips and Panasonic cases, To succeed shift the power where the growth is