NYU Stern School of Business

Undergraduate College

C50.0011.006: INTERNATIONAL STUDIES PROGRAM:

Spring 2011

Instructor Details

Narayanan, Sunder

snarayan@stern.nyu.edu

R 2-3

901 Tisch Hall

 

Course Meetings

MW, 4:55pm to 6:10pm

Tisch T-UC21


Final Exam:

Schedule exceptions
    Class will not meet on:
    Class will meet on:

 

Course Description and Learning Goals

The International Study Program (ISP) course is a complement to the Economics of Global Business (EGB) course.  The central objective of the EGB course was to introduce students to the causes and consequences of economic globalization.  Towards the end of the EGB course, however, the fact of wide differences in the institutional contexts, and resource bases within which business is conducted in different national settings was pointed out.  These differences are driven by historical, politico-legal, social, and cultural forces as well as economic realities, and can result in significant divergence in actual national goals, policies and economic achievements compared to what would be predicted by global economic reasoning alone.

The main objective of the ISP course is to enrich students’ understanding of variations in the institutional, and resource contexts of nations and the impact of these variations on national economic growth, globalization and the management of multinational firms. We will start by developing a framework for country analysis that can be applied to understanding the economic performance of any country in the world, and the challenges, opportunities and risks to multinational firms of doing business in any country in the world.   Classroom time will be spent applying this framework to several countries in Latin America.

Pursuit of the main objective of the course will then proceed with a visit to Buenos Aires, Argentina during which students will be able to observe directly how the institutions and resources there impact how business is done there compared to in other countries, particularly the U.S.  While in BA, students will participate in presentations and discussions with multinational company managers headquartered there.  In addition, students will have time on their own to explore the history, cultural sites, and local customs of Buenos Aires and Argentina.

The course will culminate in a school-wide competition among student teams from all sections of the International Study Program course.  The competition will require that each team prepare and present a report that diagnoses the major longer-term performance opportunities and challenges facing the company visited, and makes strategic recommendations to its management addressing those opportunities and challenges. 

 

Course Outline

MODULE 1: INTERNATIONAL BUSINESS CONCEPTS

Day

Date

Topic

Readings/Assignments

Mon

1/24

International Business:  Core Concepts

Verbeke:  Chapter 1

Wed

1/26

International Business:  Core Concepts

Verbeke:  Chapter 1

Mon

1/31

Country Differences:  The Political Economy

Hill:  Chapter 2

Reading: Colgate Max Fresh

Wed

2/2

Country Differences:  Country Competitiveness

Reading: The GCR Report (pp. 3-12; and pp. 31-37)

Reading: Colombia Competitiveness

Mon

2/7

Country Differences:  Culture and Consumption

Hill:  Chapter 3

Case:  Gallardo Mexico

Wed

2/9

Latin America:  The Political Economy

Case:  McDonald’s Argentina

Mon

2/14

Latin America:  Competition

Case:  Lan Airlines in 2008

Wed

2/16

Latin America:  Culture and Consumption

Case: Boca Juniors

Mon

2/21

NO CLASS – PRESIDENT’S DAY

 

Wed

2/23

Class Discussion:Group Reports

Due:  Industry Analysis

Mon

2/28

Strategy:  Concepts

Collis/Montgomery:  Chapter 2

Wed

3/2

International Strategy:  Formulation

Hill:  Chapters 12 and 14

Reading:  Emerging Giants

Mon

3/7

International Strategy:  Implementation

Case:  Coke in Brazil

Wed

3/9

Trip Preparation Day

Due: Country Comparison Report

MODULE 2: THE TRIP (ACTIVITIES IN BOLD LETTERS ARE MANDATORY)

Day

Date

Topic

Readings/Assignments

Fri

3/11

Depart NYC

Sat

3/12

Afternoon: Optional City Tour.  Evening: Group Dinner.  Dress Code is Business Casual (no jeans, shorts, T-shirts, tank tops, sneakers, or open-toed shoes).  Ties or jackets optional

Sun

3/13

Free Day (Optional Tour Arranged by Travel Agent)

Mon

3/14

Morning LecturesDress Code is Business Casual (see above).

Afternoon free.

Tue

3/15

Corporate Visits (All Day) – Dress Code is Business Casual and also factory-safe attire (no loose article of clothing or ties;  proper shoes – and no high heels)

Wed

3/16

Estancia Trip (All Day)

Thu

3/17

Morning free.  Leave for Airport in the Afternoon

Fri

3/18

Arrive NYC

 

 

MODULE 3: PROJECT WORK AND COMPETITION

Day

Date

Topic

Readings/Assignments

Mon

3/21

Project:  Introduction

Due:  5 Learning Report

Wed

3/23

Project:  Proposal Preparation

No class

Mon

3/28

Exam:  Closed book and notes

TF will announce presentation schedule

Wed

3/30

Project:  Proposal Preparation

No class

Mon

4/4

Project:  Proposal Discussions

1 page project proposal

Bring one CD per group with pictures for the slideshow

Wed

4/6

Project:  Proposal Discussions

1 page project proposal

Bring one CD per group with pictures for the slideshow

Mon

4/11

Guest lecture:  In Argentina on 3/14

No class

 

Wed

4/13

Guest lecture:  In Argentina on 3/14

No class

Mon

4/18

Project:  Presentation Preparation

No class

 

Wed

4/20

Project:  Presentation Preparation

No class

Sun

4/24

PRESENTATION SLIDES DUE BY 6PM (Upload to Blackboard – please do NOT email us the slides)

Mon

4/25

Project:  Presentations

Mandatory Attendance

Wed

4/27

Project:  Presentations

Mandatory Attendance

Mon

5/2

Project:  Work on Strategy Report

No class

Wed

5/4

Competition Semi-Finalist Announced

No class

Due: Final Strategy Report

Fri

5/6

FINAL COMPETITION (1-3 PM) – ATTENDANCE MANDATORY

Mon

5/9

Guest lecture:  In Argentina on 3/14

No class

 

 

Required Course Materials

1.      International Study Program – Latin America, a custom textbook, consisting of

a.       Chapters 2, 3, 12, and 14 from Hill, C.W.L., International Business 9E,

b.      Chapter 2 from Collis and Montgomery, Corporate Strategy: A Resource-Based Approach, 2E

c.       Chapter 1 from Verbeke, Alain, International Business Strategy, and

d.      HBS reading on Emerging Giants.

 (The above custom textbook can be purchased as a print version at the NYU Bookstore, or on-line as an ebook from- (https://ebooks.primisonline.com).

 

2.      The Global Competitiveness Report, 2009-2010,by the World Economic Forum (posted on Blackboard)

 

Additional Packet from Harvard Business School Publishingfor the following 7 readings – Colgate Max Fresh, Colombia Competitiveness, Gallardo Mexico, McDonald Argentina, Lan in 2008, Boca Juniors, and Coke Brazil – can be purchased and downloaded at: http://cb.hbsp.harvard.edu/cb/access/7396613

 

Assessment Components

EVALUATION

 
Individual
Class & trip participation                      15%
Country comparison report                   15%
Exam                                                    20%
Strategy report                                      15%
Total Individual                                    65%
 
Group
Industry Analysis                                  15%
Project Presentation                                              20%
Total Group                                          35%
 
 
INDIVIDUAL WORK
 
·         Class and Trip Participation
         Participation in class is a very important component of the learning process in the course.  Students are expected to contribute to class discussions.  Such participation is essential to individual and class learning from case analysis and discussion. Please go over the readings prior to class.  Lectures will not duplicate reading material: they will supplement and embellish the readings, and offer alternate viewpoints.  Attendance will be taken for each class session and will be a factor in determining your class participation points.  Laptops, cell phones, and other electronic devices are a disturbance to both students and professors.  All electronic devices must be turned off prior to the start of each class meeting.
         Participation in scheduled events and programs during the trip to Buenos Aires is also a very important component of the learning process in this course.  Those missing the trip will be given a make-up assignment whose weight will be equal to that of the trip participation grade.  Those traveling to Buenos Aires are required to adhere to the Stern Code of Conduct. Every session of the course will involve interaction in the form of class discussion. I expect each one of you to come to class on time and be prepared to contribute to all class sessions. 
 
 
 
·               Exam

The exams will take place in class on the date mentioned in the class schedule. More details will be provided in class.

Text Box: ISP Travel and the Stern Undergraduate Code of Conduct
		The ISP Faculty recognizes that the overwhelming majority of students are approaching 
the International Study Program week abroad with excitement, seriousness of purpose, and every intention of behaving appropriately throughout the program.  To protect the potentially outstanding experience of that majority of students on the ISP trip, which could be damaged by the actions of a few, and to protect the reputation of the school, we remind all students that they must act in a manner consistent with the Stern Undergraduate Code of Conduct and the special conditions of this travel opportunity.

Professional Conduct
Throughout the trip students are expected to perform in ways that (1) reflect favorably on themselves, their classmates, and the Stern School and (2) contribute to the educational environment and objectives of the course – in other words, to perform professionally.  Professional performance includes, but is not limited to, the following behaviors:
•	Actively participating in all formal sessions;
•	Attending all presentations and visits scheduled in conjunction with the course;
•	Being on time and prepared for all scheduled events;
•	Preparing for and engaging respectfully with presenters and other guests;
•	Being cooperative and helpful during the logistical activities of the trip;
•	Acting in a manner consistent with the nature and tone of each scheduled event;
•	Respecting local customs and values during the trip:
•	Follow the appropriate dress code for mandatory events.

Violations of the expected professionalism behaviors will result in direct penalty to the course grade.  Frequent failure to behave professionally could result in as much as a two letter reduction in the course grade.

Personal Conduct
While on the ISP trip, students will have a significant amount of time on their own to explore the history, cultural sites, and local customs of their destination.  During this unsupervised time, students are expected to behave in a manner consistent with those provisions of the Undergraduate Code of Conduct pertaining to personal conduct.  Personal conduct violations include, but are not limited to physical assault, harassment (including sexual and verbal), property damage, and excessive consumption of alcohol.
Accusations of such violations by hotel staff, local police, local citizens, or other students will be investigated by faculty and administrative staff accompanying the students on the trip, and may result in violators being immediately sent home to prevent further damage.  In all cases personal conduct violations will be reported to Dean Greenbaum, for determination of sanctions by the Honor Council.
It is the responsibility of each student to ask for clarification of any aspect of these Undergraduate Code of Conduct requirements as they apply to the ISP trip that is not understood or is considered ambiguous prior to the trip

·         Country Comparison Report
         A hard copyof this report (3-4 pages, excluding all appendices, single-spaced, 12-point font; please do NOT put the assignment into folders – just the stapled pages is all we need, and a cover page is optional) is due in class on the date indicated in the class schedule.  An electronic copy must be also uploaded on Blackboard before class on the day it is due (go to the Assignment tab).  Failure to upload on Blackboard before the deadline will result in a 3-point penalty on the assignment.  In addition, if for any reason we are unable to locate the hard copy of your assignment, then we will accept a duplicate copy only if we find a copy uploaded on Blackboard.
 
         Assignment:
1.                     Select ANOTHER country (other than Argentina or the United States).  In doing so, ensure that each member of your group selects a different country.
2.                     Select a company in the other country that operates in the same industry as your Argentine company.
3.                     Analyze BOTH companies separately using the Verbeke framework.  Identify the (1) internationally transferable FSAs and the MNE archetype that best describe the firms, (2) non-transferable FSAs that the firms enjoy, (3) location advantages for the firms, and (4) the recombination strategy that best describes the value creation activity of the firm.
4.                     Briefly summarize the differences between the two firms based on your analysis. Try to explain the differences based on country factors (historical, geographical, political, legal, and socio-cultural factors).
5.                     What are the unique advantages and disadvantages that your Argentine firm has in competing against a foreign entrant into Argentina in the same industry? What unique advantages and disadvantages does it have in competing globally against a multinational in the same industry?
6.                     Perform a SWOT analysis for your Argentine firm.
7.                     Present a list of questions in an appendix that you would like to ask the senior managers during your visit to the company, answers for which you were not able to find during your research. 
 
·         Learning Report: (ungraded, but penalty for not turning in)

Write 1-2 pages on the 5 lessons that you learnt from participating on the ISP trip. At least 2 of these lessons should be based on the talks that you attended on Monday. The learning from the company visit is not required since you’ll be incorporating them in your project proposal. However, at least one learning should be based on your observations about the business culture in Argentina/Latin America.

 

Write a report (4-6 pages single-spaced excluding appendices) on your company that 1) compares, contrasts, and critically evaluates the recommendations of all the other teams in your section in terms of their potential impact on firm performance, their impact on the firm’s competitive position and risks, their use of competitively valuable firm resources, and their “affordability” in terms of the cash flows and debt capacity of the firm, and 2) presents an integrated set of strategic recommendations that you would make to management based on the above comparison, contrast and evaluation.

An electronic copymust be also uploaded on Blackboard before class on the day it is due (go to the Assignment tab).  Failure to upload on Blackboard before the deadline will result in a 3-point penalty on the assignment.  In addition, if for any reason we are unable to locate the hard copy of your assignment, then we will accept a duplicate copy only if we find a copy uploaded on Blackboard.

 
GROUP WORK   
         Please form groups of 6 people.  If you are not able to find a group, you will be assigned to some group that has less than 6 members.  Since group activity is a big component of this course, it is recommended that you find group members with whom you share a good group dynamic and similar project interests.  It is also required that each group has no more than one person who is not going on the trip to Argentina.  Peer evaluations will be used to determine individual contributions to the group project.
 
·         Industry Analysis
         A hard copyof this report (3-4 pages, excluding all appendices, single-spaced, 12-point font; please do NOT put the assignment into folders – just the stapled pages is all we need, and a cover page is optional) is due in class on the date indicated in the class schedule.

 

Assignment.  Identify the main industry in which your ISP company competes.  Analyze this industry’s structure and attractiveness in Argentina using the suggested format given below:

  1. Market Analysis
    1. Perform a Porter’s 5 forces analysis.
    2. Analyze the economics of the industry.  Are there significant differences among firms in terms of their cost structures?
    3. How developed is the market?  What is the wealth level of the market?
    4. Is the market growing, mature or declining?
    5. How does advertising/marketing function in this market?  What does this mean for firms?
  2. Customer Analysis
    1. What are the different segments in the market?  How big are these segments?  What are the consumer motivations that drive consumption in these segments?
    2. What are the unmet needs in each of the segment?
    3. What are the actual and potential sizes of each segment and growth rates?
    4. Examine customer tastes and preferences.  Are the majority of consumers more price conscious or looking for unique value in the market for your goods?  Do most firms target a particular segment (may or may not be the case)?   Can you pass costs on to customers?
    5. What is the customer base like (many or few, dispersed or concentrated)?
  3. Competitor Analysis
    1. Identify the major competitors in this industry.
    2. Can you cluster the major competitors into Strategic Groups (i.e., groups of companies that have similar characteristics, similar competencies, follow similar strategies, compete more directly with each other, and are inhibited by mobility barriers to move into another strategic group – an example in the pharmaceutical industry would be the proprietary drug companies like Merck and Pfizer that have high R&D expenditures and high prices and the generic drug companies that have low R&D expenditures and low prices).  What are the common strengths and weaknesses of companies within each strategic group?
    3. Consider the top two major competitors in this industry?  What are the differences among them in terms of their characteristics and strategies?  What are their strengths and weaknesses?
  4. Key Success Factors
    1. Based on this analysis, identify the key success factors in your industry.

 

·         Project Proposal
         After returning from the trip, your group is required to submit a project proposal (1 page, double spaced) on the date indicated in the syllabus.  The proposal should outline the strategic issue(s) that you will be focusing on for your project.  We will schedule a meeting with the teams to evaluate this proposal.  The proposal will not be graded.  All group members are required to attend this meeting.  Failure to do so will result in loss of points in the project presentation scores.
 
·         Project Presentation
               Outline your company's strategic situation, i.e., its prospects for growth in earnings over the next 3-5 years, its strengths/advantages over competitors, and the major challenges and weaknesses it will have to overcome in the next few years.  Develop a strategic plan for the next 3-5 years to sustain and improve the firm's performance prospects.  Specifically, what significant changes in the firm’s geographic scope, product scope, product development policies, marketing policies, operations policies, finance policies, organization structure, and/or human resource management policies would you recommend?
               Each group will have to make a strategic plan presentation in class on their company (15 minutes, plus 2 minutes for Q&A).  These presentations will take place on the dates given in the class schedule.  Please time your presentations properly – going over time will count against you in the grading.  One team will be selected to represent your section in the Regional Finals.  More information on the presentation will be provided in class.
 
Slides Submission:   Please do NOT email slides to us.  Instead post them on Blackboard according to the following procedure (folders will close shortly after the deadline after which you will not be able to upload slides).  Your TF will download your slides in class for your presentation.
1.      Log on to Blackboard.
2.      Select the Assignment tab on the left.
3.      Select the folder corresponding to your presentation date (your TFs will be sending you your dates).
4.      Attach your presentation
 
Presentation Dates:  Your group will be randomly assigned to one of the two days allotted for the presentations.  Your TF will email you with your presentation dates.

 

Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.

 

Grading

At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges as a guide, the actual distribution for this course and your own grade will depend upon how well you actually perform in this course.

 

Re-Grading

The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.

 

Professional Responsibilities For This Course

Attendance

 

Participation

In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:

 

Assignments

 

Classroom Norms

 

Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 

 

Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 

 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.

 

Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.

 

Recording of Classes

Your class may be recorded for educational purposes

 

Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.

 

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