PGDM: 2018-20

Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

1.Course Introduction

The course aims to build the knowledge, skills and global mindset to operate Business
Internationally.
2. Course Learning Outcome (CLO)
By the end of the course the student should be able to:
 Develop a global mindset and understand the dynamics of International Business.
 Identify and analyze EAF Framework for Country Analysis
 Identify key differences and similarities between nations
 Identify key strategies to be pursued by MNC’s and Indian companies
 Assess industry potential to go global (YIP) & country competitiveness (Porter’s
Diamond)
 Evolve entry strategies for businesses in international markets including country
selection and modes of international business
 Develop cross cultural sensitivity.
 Identify and mitigate various Risks like Political, Geopolitical, Country, Forex,
Payment
3. Pedagogy
• Class discussion with PPTs and videos
• Case discussion & analysis
• Groupwork by the students that support the class discussion
• End term group project presentation
4. Prescribed text
International Business: Competing in the Global Marketplace by Charles W L Hill, Arun
Kumar Jain, McGraw Hill, latest 11th edition
5. Suggested Readings
 International Business Environment and Operations: John D. Daniels, Lee H.
Radebaugh, Daniel P. Sullivan, Prashant Salwan,16 edition ,2018 ,Pub: Pearson
 Global & Transnational Business by George Stonehouse ,Wiley,2004
 Total Global Strategy by George S. Yip & G. Thomas M. Hult, Pearson, latest
edition
 Re-defining Global Strategy and World 3.0 by Pankaj Ghemawat, etc.
• International Business – Oded Shenkar + Yadong Luo, Wiley

Documents to be consulted for data:

• World Competitiveness Report: World Economic Forum
• Country Profiles/Industry Reports EIU
• Doing Business Report: World Bank
• World Development Indicator: World Bank
• World Investment Report: UNCTAD
• International Trade Statistics: WTO

Suggested Magazines / News Papers

• The Economist, London (Weekly)
• The Wall Street Journal, Asia Edition (Daily)
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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

• The Financial Times (Daily)

• The Economic Times (Daily)

6. Alignment of Program Learning Objectives & Course Learning outcomes

Teaching
Course Learning
LO Programme Learning Objectives Methodology
Outcomes (CLO)
(Pedagogy)
2.1 Awareness of key factors of Indian Y Class discussion
and Global Business Environment and Case analysis
2.2 Comparison of Indian and Y Class discussion
international environment and case analysis

7. Assessment Plan

End Term Exam: 40

Course Module

Presentation: 20

submission:20
Group Project

Case Analysis

Quizzes: 20
Objectives for
Learning Goal

LG 2: RECOGNITION OF THE DISTINCTIVENESS OF BUSINESSES IN INDIA

AND THEIR INTERCONNECTEDNESS WITH THE GLOBAL ENVIRONMENT
LO 2.1: Awareness of key factors of Indian and Global
Y Y
Business Environment
LO 2.2: Comparison of Indian and international
Y Y
environment

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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

Course Architecture

This course is summarized below. The details of these are on the following pages.

Theme Framework Sessions

Introduction & Globalization Overview 1, 2
Country Analysis EAF 3, 4
Country Selection UPPSALA Model, CAGE 5, 6
IB Strategy AAA 6
Country Competitiveness Porters Diamond Model 7
Global Institutions, Trade Blocks Country Selection 8
Risks in IB, Govt Relations 4 A’s Framework 9
Currency Risk Hedging 10
Cross Cultural Differences Hofstede cultural dimensions 11
Industry Globalization YIP’s Framework 12
Market Entry, Mode of Entry Which Mode of Entry 13
MNC & Globally Integrated
Enterprise OLI 14
Role of country manager Types of Country Manager 15
Application of multiple
Emerging Markets frameworks 16

8. Session Details

Readings & Reference

Session Theme/Topic/Coverage Activity in
Chapters from the Text book
the class
1 What are fundamentals of Class Text Book Chapter
International Business? Discussion: Ch.1. Globalization by Hill
Why do companies engage DG Reading-
in IB? a. “What you need to know about
Video Globalization’s radical new phase”
•Landscape of IB BCG Perspective, July 2016
•Global Flows of goods, Case Case 1: Netflix: How Netflix
services, finance, people, data Expanded to 190 countries in 7
years, HBR,12TH Oct 2018

Country Theme I: USA

2 What is Current state of Class Reading-
Globalization –World is Flat Discussion: a. “Globalization in the age of
vs Semi Global? DG Trump” by Pankaj Ghemawat,
HBR July-Aug 2017
 Major Global Events Video b. “Globalization 4.0” by Klaus
 Current Situation Case Schwab,WEF ,16TH Jan 2019
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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

 Globalists and nationalists c. The great political divide:

 USA-China Trade War Globalist & nationalists will slug it
 Future Scenario out around the world, Economist

Case 2: Infosys: Infosys Built

Its Global Machine with Indian
Workers. Can it adjust to Trump’s
“Hire American?”, NYT ,15TH Oct
2018

3 How to do Country Class Reading –

Analysis?
Carry out country analysis &
identify key differences and
similarities between nations
 Country Analysis
 Environment Analysis
Framework (EAF)
Discussion:
DG a.Ch 2 Environment Analysis
Framework from Austin Book
Video
Case Case 3 —“China Unbalanced” –
HBS case study 2012
Country Theme II:China

 PESTLE

4 How to do Business in a Class Reading –

Country?
 Current Trends in Chinese
market
 How to do business in
China
 New Silk Road (OBOR)
Groupwork 1: Country
Analysis of a specific
country
Discussion:
DG a.What can we expect in China in
2019?
Video
Case b.Where will China’s “One Belt
,One Road “ Initiative lead? From
Knowledge@Wharton
Case 4—OYO in China: India’s
$5bn no -frills hotel start up Oyo
rooms targets China, FT,15TH Oct
2018
Country Theme II:China

5 How to decide which Class Reading:

country to Discussion:
choose/prioritize for your DG a.Ch 3. Internationalization
business? Theories by Svend Hollensun
Critical decisions for Video
company to go Case b.How Amazon adopted its
International? business model to India,by Vijay
 IB Trade Theories Govindrajan ,HBS,20TH July
2016
 Stages of
Internationalization:
Case 5-” Walmart Around the
Understanding Export
Behavior Theories e.g. world” 3rd Jan 2017 ,HBS Case
Uppsala Model
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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

 Country Specific
Advantages (CSA) and
Firm Specific
Advantages (FSA)

 Born Global

Group Work 2: Start-up

company Globalization

6 Presence: Where to Class Reading. ---

compete? How to compete?
International Business
Strategy Frameworks
 CAGE (Cultural,
Administrative,
Geographic, Economic)
distance Framework
 AAA (Aggregation,
Arbitrage, Adaptation)
Strategy Framework
 International M&A
Groupwork 3:
“Bollywood/Sports/Medical
Tourism going
International”
Discussion:
DG a.Distance Still Matter by Pankaj
Ghemawat, HBR,Sept 2001
Video
Case
(Note for AAA Framework. Refer
to article in session 2 page 11
“Globalization in the age of
Trump” by Pankaj Ghemawat,
HBR July-Aug 2017)
Case 6—” Tesla:
Internationalization from
Singapore to China”, Ivy
Publishing ,2017

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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

7.
How do you evaluate Class Reading:
competitiveness of a Discussion:
a. Porter, Michael E., (1990).
Country? DG
“The Competitive Advantage of
 Porter Diamond Model Video Nations,” Harvard Business
 Cluster Review, March-April 1990.
Case
b. Country Competitiveness
Singapore: Happy 50th birthday,
Singapore, Economist

c. Silicon Valley Cluster, USA

“The geography of startups-
Something in the air”, Economist

Case 7-Hero Moto Corp:

International Business of Hero
Moto Corp by Prof Debraj
Ghosal, Pearson Book (IB by
Daniels)
Country Theme III:
Singapore
8. What are the Global Class Text Book Chapter
Institutions and trade Discussion: Ch 8 Cross National Cooperation
blocks? DG and Agreements
 WTO /IMF/WB/AIIB Video Reading—
 India’s FTA’s a.The future of European Union,
 Trade Blocks Economist, Mar 2017
 EU/ ASEAN/ NAFTA b.The Coalitions that could hold
the EU together,HBR,6TH DEC
Groupwork 4: Specific Trade 2018
block and Indian Companies c. ASEAN: Revive a millennial
doing business in that Trade partnership, Singapore has
Block played a major role in India’s
closer integration with
ASEAN,TOI,25th Jan 2018

Country Theme IV: Europe

Readings & Reference

Sessi Activity
Theme/Topic/Coverage Chapters from the Text
on in the book
class

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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

9. What are the Risks in International
Business?
• Political Environment
Political/Geopolitical Risks
• Managing Business / Govt.
Relations:4 A’s Framework
• Understanding how to analyze risks
associated with National Economic
Environment & its impact on
competitiveness.
Class Ch 3 The Political & Legal
Discussion Environment Facing Business
: DG
Reading
Video
a.” Managing 21st -Century
Political Risk” by Condoleeza
Rice and Amy Zegart, HBR
May-June 2018
b. Government Relations :4 A
Framework (Book Managing
in Developing Countries by
James Austin Page 166 to
172)

Case 8: Dangote Group in

Nigeria: Aliko Dangote,
Africa’s richest man, on his
crazy $12bn project, FT,11th
July 2018

Country Theme V: Africa

10 How do you Manage Currency

Risk? Ch 10 The Foreign Exchange
 Currency Risk Market

 Balance of Payments Hedging the currency

Class
 Risk of economic crisis Case 9 : Volkswagen’s Hedging
Discussi
on: PM Strategy
 Country Risk
Case
 International Finance

Groupwork 5: How do TCS and HPCL

manage currency risk?

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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

11 How do you Managing Cross Class Geert Hofstede https://geert-

Cultural Differences? Discussi hofstede.com/countries.html
• What is culture? on: PM
• Hofstede’s cultural dimensions Case https://geert-
• Edward T. Hall’s framework hofstede.com/national-
• Erin Meyers cross cultural culture.html
management
Case 10: Why did Walmart fail
in Germany?
Case 11:Brand failures due to
cultural differences
12 What are the globalization drivers Class Reading:
for industry? Discussi
• YIP’s Framework on: PM Chapter 2.4 Industry
Case Globalization Drivers in
Groupwork 6: The BPO industry Fundamentals of Global Strategy
by Andy Schmitz Pub: Saylor
Academy 2012

(Note. Refer to article in session

2 “Globalization in the age of
Trump” by Pankaj Ghemawat,
HBR July-Aug 2017)

Case 12:Impact of Donald

Trump Policies on BPO industry

13 How do business decide Market Class Reading:

entry strategy?
• Country Selection,
• Market Entry Mode
Discussi
on: PM Ch 15 Entry Strategy and
Case Strategic Alliances
Case 13: ‘Mahindra & Mahindra
in South Africa’ by R.
Chandrasekhar March 2012

14 How did MNC evolve to their Class Reading

current state of globally integrated Discussi ”The Globally Integrated
enterprises? on: PM Enterprise”By Samuel J
• MNCs Palmisano, Foreign Affairs
• OLI Framework

15 What is the role of country PM Reading-

manager? Panel
 Role of a country manager Discussi a.“The New Country Manager”
on by
Group work 7: Role of country experts
manager in the
field

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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

16 Emerging Markets & New topics Class Reading

• Emerging Market MNC’s Discussi
on: DG Mapping Frontier Economies by
• Integration and Application of Video Aldo Musacchio, HBR,Dec 2016
Concepts through case Case
Case 14: “Lenovo :Attack and
Groupwork 8: Emerging market Protect Strategy”,Economist
MNC’s (Choose a company) IB

Country Theme VI :
Emerging Markets

17-18  Summary of Key Frameworks in IB DG & PM

 Group project Presentation in class
as per time table

Group Project Assignment -Type 1—Group presentation in a class (20 marks)

The group has to work on a topic as per the course outline.The output expected is a
power point presentation of maximum 15 slides (Out of which only 5 slides to be
presented in class for 5 to 7 min). Also mention your name, Roll no, Division and email
id in the first slide.

Evaluation criteria—

1. Appropriate data collection and analysis (3 marks)

2. Application of framework or Define the issue/situation (5 marks)
3. Quality of your recommendation (10 marks)
4. Reference Material used and mentioned (detailed).(2 marks)

Instructions---1.Group of 5 members as per ACAD group (Odd number group)

Group Project Assignment Type 2—Group presentation in a class after 16

sessions (20 marks)

The project will involve detailed analysis of international business (expansion, strategy,
focus countries, modes of entry etc) of an Indian company going global. Compare it with
international business (expansion, strategy etc) of a MNC company (from outside India)
which is in the same/similar business going global. Eg.Tata Motors vs FAW,China or
Infosys vs IBM or IPL cricket vs Champions League Football.

The project will require you to do the following:

1.Identify an Indian company and analyze its international business in foreign markets.
Some of the sources of such international business strategies are announcements by
senior managers of organizations as reported in business news papers, business
magazines and annual financial reports of organizations. Apply various frameworks
studied in IB subject like Porter’s Diamond Model, YIP’s Globalization drivers, PESTEL ,
CAGE framework etc . Cross Cultural Management issues to be included.

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 PGDM: 2018-20
Semester II Cluster: II
SPJIMR
International Business
Prof. Debraj Ghosal
Credit: 1 Faculty Sessions 18 Group work 1
Dr. Pallavi Mody

2.Compare the similarities and differences between the international businesses of the
two companies identified. Analyse the global industry(eg Automobile, IT, Sports etc) to
which both these companies belong in terms of the global industry size, growth, trends,
lead countries, top players, major markets and production location etc.

3.Assume you are CEO of the Indian company and propose the next five years
International Business strategy for the Indian Company. You could propose the new
countries in which the company should do business; grow by international M&A or some
other means etc. Your recommendations and the reason for same will carry weightage in
the evaluation.

4.Extensive collection of secondary data and article reviews are expected and references
are to be mentioned. The output expected is a power point presentation of maximum 15
slides (Out of which only 5 slides to be presented in class for 5 to 7 min). Also mention
your name, Roll no, Division and email id in the first slide .

5.Deadline of submission of the soft copy of final project on ekosh by end of 14 th session.
(Also attach a zip file of all the reference articles, data ,videos etc used for the project)

6.You will submit a project report that identifies and outlines the key international
business strategy of the two companies, internationalization challenges and your
recommendations for a successful implementation of next 5 years International Business
strategy of the Indian company. (Not more than 15 slides of power point presentation
with references(extra slide is ok for reference or table/graph/map etc) at the end).

Evaluation criteria—

1. Appropriate data collection and analysis (3 marks)

2. Application of framework (5 marks)
3. Quality of recommendation of next five years International Business strategy for
the Indian Company (10 marks)
4. Reference Material used and mentioned (detailed).(2 marks)

Instructions---

1.Group of 5 members as per ACAD group (Even number group)

2.You can also attach link to video or/and reference material used

3.Each group should have unique set of both the companies. No repetition. Coco to
coordinate.

Contact Details of Faculty

Prof Debraj Ghosal, debraj.ghosal@spjimr.org, debghosal@yahoo.com

Cabin F1 ,2nd Floor, SPJIMR

Dr Pallavi Mody,pallavimody@spjimr.org

Cabin B12, Ground Floor, SPJIMR

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