International Management
Essay Preview: International Management
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We started the course with a debate whether the world is global or not – it is not global but moving towards globalizationWe 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 etcNext we learnt about how the world is different and how we create value in it, CAGE and Adding Value FrameworkNext- Entering Foreign markets – Entry Modes Global Capital markets etc.CasesAviation Industry – Airbus vs Boeing – How government steps in and supports industriesTelecomSector – Finland and Nokia Case  – Government support for a firm to do wellFast 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 SubsidaryOil Industry – Difference between up stream and down stream business, which part is profitable why there is so much concentration, veritical integration and monopoly powersPhillips and Panasonic and EMI CT Scanner Case case – Strategy structure and power debate between HQ and subsidiaryManagement of R&D in the GE health CareCAGE framework through the Bear industryAmorapacific – shift from developing to developed countries – success factors etcSteel industry and its consolidationSantender case – banking industry – how banking is becoming globalMedia 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 marketIT 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 caseFinal 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 countriesMarket institutions are either missing or inefficient and are in the stage of evolving in the developing countriesThis 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 liberalizationStrategic 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 factorsOther kinds of trade barriers like export subsidy, import quota, license raj of india, Anti dumping policies.  Effect on different stake holdersBasically 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 marketIn NutshellCompetitive 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 tomorrowPolitical 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 inefficientPorter’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 gettingWe are placing the competitive advantage and strategies that we studied in the core course into international context by using the porter’s diamond frameworkTheory of competitive advantage wrt international trade and investment theory – porter framework – bridge between competitive advantage theory and the International trade theoryStrategy 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