International Business Management

Syllabus 2016 2017

MITB 36, 37 & 38

Profesor Luis Marijuan, PhD.

luis.marijuan@esic.edu

ESIC BUSINESS & MARKETING SCHOOL

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 I. Course Description Comentado [JBB1]: Please, build the Course Description based
on the guidelines provided by EFM.
Comentado [lm2R1]: I have modified accordingly
This seminar looks for the student to understand the differential aspects of Business
Management in International environment compared with purely domestic approach. Now
days the global interlinks are a fact. The companies must deal with these links and they
must to create competitive advantages based on them.
The focus of the course is for the student to learn how to define an International Business
Strategy for a geographical area in particular sectors, based on the understanding of
international markets acquired in the previous modules. Once this strategy is defined, how
to implement it from and operational point of view and how to monitor this
implementation. A generic approach will be used in order to be applicable for discussion
in the Executive Committee of a big Corporation or in a SME.

II. Learning objectives Comentado [JBB3]: Same comment as above.

Comentado [lm4R3]: Modified accordingly

At the end of the course, the participants should acquire the basic concepts needed for
defining strategically and international business, operating it, and analyzing and
monitoring its implementation. By completion of, it this module, the students should have
acquired the following skills:
> International Business and Strategy. The role of the Executive Committee. To
understand the importance of the coordination between the main functions in the
company
> Learn how the International Institutions and the international environment
condition international strategy definition
> International Strategy: develop the expertise for the selection of a particular
strategy for creating value in international environments.
> Develop a critical and well-reasoned criteria for stablishing International Strategic
Alliances
> Acquire the basic criteria for defining operational aspects of International Business
> Acquire the basic knowledge of international contracting
> Build robust criteria for the application of tools and skills to analyze suitable
competitive advantages.
> International business accounting: to acquire the expertise for taking decisions
considering cost analysis

III. Teaching strategies Comentado [JBB5]: Please, mention the teaching techniques (i.e.
lectures, case studies, group discussions, simulations ) youll be
utilizing and they match your ILOs.

The methodology aims at developing in the students their critical thinking and independent Comentado [lm6R5]: I have followed that I have included in my
Operations Management Sylalbus in the IMBA
learning under a professional and academic guidance. A combination of class lectures,
dissemination of current articles and case studies will be used.
The unit is organized for active learning, so the class contribution is fundamental. The
students should assess things from various perspectives; they will be pushed to form a
view of their own.
In order to achieve final learning objectives reading materials must be deeply analyzed in
advance (critical reading of relevant literature, understanding of key concepts, analyses of
case studies) to optimize the effectiveness of the model.

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Page 3 of 15
IV. Teaching Schedule
IV.1. Weekend Sessions MIT& B36

There will be six sessions of five hours, in which we will be developing the topics shown
here below. Classes will start at 5:00 pm finishing at 10:00 pm on Friday and at 9:00 and
finishing at 14:00 on Saturdays. In order to facilitate a fluent teaching experience and
help students to keep an adequate level of attention, there will be a short break (10
minutes) per hour whenever possible and if this break does not interfere with the normal
development of the lecture.

Session Main topic Content and case studies

Session Introduction. History, recent developments, and current trends.

1 Institutions and the Globalisation, global companies, and global
international production networks. Institutions. Anglo-Saxon
April
business environments. The business environment in
21st
environment. emerging markets. Formal and informal
institutions.
Readings: Emerging markets, the markets of the
future (Fornes 2012)

Session The nature of Characteristics, the internationalisation process,

2 multinational why firms become international (agency,
enterprises transaction costs, resource-based theories). Entry
April
modes, configuration of activities, control
22nd
systems, and strategy. Differences between
advanced and emerging economies-based firms.
Readings: Fornes book. Chapter 5 / Verbeke book.
Part III
Discussion based on newspaper articles.

Session Value-creation in Strategies, structures, and learning networks.

3 international Acquisition of foreign/strategic assets,
contexts internalisation of transaction costs, liability of
May 5th
origin, liability of foreignness, process innovation
to expand internationally, OLI model, networks
and learning (LLL model), international strategic
alliances, international contracts
Readings: Fornes book. Chapter 6 / Verbeke book.
Chapter 3
Discussion based on newspaper articles.

Session Operational aspects Basics of analytical accounting for International

of International business
4
Business
Class exercise: Germanio case
May 6th
Discussions based on Newspaper

Session Case study analysis Microsoft in the PRC

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 5 developed in class Haier: taking a Chinese company global
May Sany going global
12th

Session Presentations Group 1.

6 Group 2.
May Group 3.
13th
Group 4.
Group 5.
Conclusions Emerging trends
Readings: Fornes book. Chapter 8 / Verbeke book.
Chapter 12

IV.2. Week Sessions MIT&B 37

There will be ten sessions of 3 hours, in which we will be developing the topics shown
here below. Classes will start at 7:00 pm finishing at 10:00 pm.

In order to facilitate a fluent teaching experience and help students to keep an adequate
level of attention, there will be a short break (10 minutes) per hour whenever possible and
if this break does not interfere with the normal development of the lecture.

Session Main topic Content and case studies

Session Introduction. History, recent developments, and current trends.

1 Institutions and the Globalisation, global companies, and global
international production networks.
April
business
17th Readings: Emerging markets, the markets of the
environment.
future (Fornes 2012)

Session Introduction. Institutions. Anglo-Saxon environments. The

Institutions and the business environment in emerging markets.
2
international Formal and informal institutions.
April business
18th environment II

Session The nature of Characteristics, the internationalisation process,

multinational why firms become international (agency,
3
enterprises transaction costs, resource-based theories). Entry
April modes, configuration of activities, control
19th systems, and strategy. Differences between
advanced and emerging economies-based firms.
Readings: Fornes book. Chapter 5 / Verbeke book.
Part III
Discussion based on newspaper articles.

Session The nature of Entry modes, configuration of activities, control

multinational systems, and strategy. Differences between

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 4 enterprises II advanced and emerging economies-based firms.
April Discussion based on newspaper articles
20th

Session Value-creation in Strategies, structures, and learning networks.

5 international Acquisition of foreign/strategic assets,
contexts internalisation of transaction costs, liability of
April
origin, liability of foreignness, process innovation
24th
to expand internationally, OLI model, networks
and learning (LLL model), international strategic
alliances, international contracts
Readings: Fornes book. Chapter 6 / Verbeke book.
Chapter 3
Discussion based on newspaper articles.

Session Operational aspects Basics of analytical accounting for International

of International business
6
Business
Class exercise: Germanio case
April
25th Discussions based on Newspaper

Session Case study analysis Microsoft in the PRC

7 developed in class
Haier: taking a Chinese company global
April
Sany going global
27th

Session Case study analysis Microsoft in the PRC

8 developed in class II
Haier: taking a Chinese company global
May 5th
Sany going global

Session Presentations Group 1

9
Group 2
May 8th
Group 3

Session Presentations II Group 4

10 Group 5
May 9th Conclusions Group 6
Emerging trends. Readings: Fornes book. Chapter
8 / Verbeke book. Chapter 12

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IV. 3. Teaching Schedule MIT&B 38

There will be six sessions of five hours, in which we will be developing the topics shown
here below. Classes will start at 9:30 am finishing at 14:30 am from Monday to Thursday.
In order to facilitate a fluent teaching experience and help students to keep an adequate
level of attention, there will be a short break (10 minutes) per hour whenever possible and
if this break does not interfere with the normal development of the lecture.

Session Main topic Content and case studies

Session Introduction. History, recent developments, and current trends.

1 Institutions and the Globalisation, global companies, and global
international production networks. Institutions. Anglo-Saxon
business environments. The business environment in
environment. emerging markets. Formal and informal
institutions.
Readings: Emerging markets, the markets of the
future (Fornes 2012)

Session The nature of Characteristics, the internationalisation process,

2 multinational
enterprises
why firms become international (agency,
transaction costs, resource-based theories). Entry
modes, configuration of activities, control
systems, and strategy. Differences between
advanced and emerging economies-based firms.
Readings: Fornes book. Chapter 5 / Verbeek book.
Part III
Discussion based on newspaper articles.

Session Value-creation in Strategies, structures, and learning networks.

3 international Acquisition of foreign/strategic assets,
contexts internalisation of transaction costs, liability of
origin, liability of foreignness, process innovation
to expand internationally, OLI model, networks
and learning (LLL model), international strategic
alliances, international contracts
Readings: Fornes book. Chapter 6 / Verbeke book.
Chapter 3
Discussion based on newspaper articles.

Session Operational aspects Basics of analytical accounting for International

of International business
4
Business
Class exercise: Germanio case
Discussions based on Newspaper

Session Case study analysis Microsoft in the PRC

5 developed in class
Haier: taking a Chinese company global
Sany going global

Session Presentations Group 1.

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 6 Group 2.
Group 3.
Group 4.
Group 5.
Conclusions Emerging trends
Readings: Fornes book. Chapter 8 / Verbeke book.
Chapter 12

STUDENT WARNING: This course syllabus and contents are a preliminary draft and
serves only as a reference. Please note that this morning program may be taught in
China, with local faculty or in Spain. Further details will be given once the groups for
China had been established.

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 V. Assessment
1. Individual report: 55%
This part of the assessment will take the form of a written 3,000-word essay (excluding
references, citations, footnotes, endnotes, and appendices). Submission date and time will
be communicated in the platform. The report will be a critical assessment of the
internationalisation strategy of a company you will chose. This company should have at
least 50% of sales from international markets (i.e. outside its home market) and operate
in a competitive industry (i.e. not regulated public services like telecommunications, etc.);
it should not participate in natural resources (i.e. mining, oil, etc.). The assessment criteria
will be based on:
> The strengths of the recommendations.
> The appropriate use of the tools/techniques/models on which the recommendations
are based.
> The ability to communicate effectively a complex strategy.
> The results-oriented nature of the work.
These essays are expected to be grounded on both academic literature and the candidates
own opinion; therefore, they should go beyond common sense arguments and should be
written as if they were to be presented to a multinational company. Penalties will be applied
to over-length essays, five marks will be deducted for every 100 words or part thereof
over the word limit.

2. Case studies analysis developed in class (previously analysed in

groups): 10%
The main objective of this exercise is to set the framework for the group presentations
(point 3 below) using Microsoft and Haier as benchmarks. Groups will get marks for the
quality of their participation; 10 points are available to gain, each positive contribution will
receive 2 points for the group. See point VII below for guidelines.

3. Presentations developed in groups: 35%

The analyses of the companies will be carried out by the groups the class is divided into
and will be presented during the seminars according to the schedule presented in section
IV. See point VII below for guidelines.
Presentations should aim at giving the groups analysis and opinion on the allocated
company. The focus should be to offer the audience relevant information to make informed
decisions and to give the possibility to assess different alternatives. Presentations are
expected to be analytical and keep descriptions to a minimum (mainly to frame the
analysis); they should resemble a board meeting at an international firm and should be
performed as if the organisation was the primary audience.
Proposals should be based on the groups members own experience, opinion, and
knowledge as well as on relevant conceptual frameworks developed in the fields of
marketing/international business/economics. In this sense, conclusions and
recommendations should have MIT&B level and therefore go beyond the common sense.
Due to the imperfect nature of information, assumptions should be made and properly
explained.
As the main objective of this exercise is critical analytical thinking, there will not be right
or wrong answers/proposals. Actually, I encourage you to make mistakes and learn from
them; they are more costly in a company than in the classroom! After the presentations,
we will have a class discussion on how to deal with the specific challenges shown in the
presentations. The assessment criteria for presentations follow:
> Clarity of objectives / Definition of the problem
> Consistency and coherence of the argument

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 > Ability to sell the idea
> Correct use of tools and techniques
> Strength, creativity, and feasibility of solutions/proposals
> Appropriate and explicit links between theory and practice

4. Peer assessment (10%)

There will be an additional 10 per cent of peer assessment over the final grade.
4. Guidelines for assignments
4.1. Individual report
For the individual report, you need to choose an international company and apply the
knowledge and tools analysed during the unit. A suggested structure follows:
> Make a short description of the company, identifying the key milestones since the
start of its internationalisation. 15%
> Critically analyse the companys value-creation strategy in international markets,
identifying its underlying assumptions. 25%
> Identify 3-5 positive and 3-5 negative elements of this strategy. Which has been
the balance now of the analysis? 25%
> What would you recommend the company to do in the next five years to
strengthen its value creation? Make a list of five actions, and support them. How
do you think these recommendations will affect the financial performance of the
company? 35%
Please note that this is a suggested weighting, as you will need to adapt this structure to
the needs of your work. However, be sure that your essay covers at least the 4 points
mentioned above.

4.2. Case study analysis developed in class (previously analysed in

groups). The teacher will choose for the Group Case between
Microsoft/Haier and Sany going global.
Microsoft in the Peoples Republic of China (read also the Fortunes article How
Microsoft conquered China.)

> Make a short description of the company in China, identifying the key milestones
since its arrival into the country.
> Critically analyse Microsofts value-creation strategy to enter the Chinese market,
identifying its underlying assumptions.
> Identify 3-5 positive and 3-5 negative elements of this strategy. Which has been
the balance now of the case study? Now?
> What would you recommend Microsoft to do in the next five years to strengthen
its value creation? Make a list of five actions, and support them. How do you
think these recommendations will affect the financial performance of the Chinese
subsidiary?

Haier: taking a Chinese company global

> Make a short description of the company, identifying the key milestones since the
start of its internationalisation.
> Identify how Haier internalise the transaction costs in China.
> Critically analyse Haiers internationalisation strategy from the value-creation
perspective, identifying its underlying assumptions.
> Identify 3-5 positive and 3-5 negative elements of this strategy. Which has been
the balance now of the case study? Now?

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 > What would you recommend Haier to do in the next five years to strengthen its
value creation? Make a list of five actions, and support them. How do you think
these recommendations will affect the financial performance of the company?

Sany going global

> Make a short description of the company in China, identifying the key milestones
since they started their internationalization process
> Critically analyse Sanys value-creation strategy to become global
> Investigate the current situation of Sany, using its web and press releases
> Identify 3-5 positive and 3-5 negative elements of Sany strategy. Which has been
the balance now of the case study? Now?
> Make a short analysis of the internationalization process of main Sany
competitors
> What would you recommend Sany to do in the next five years to strengthen its
value creation? Make a list of five actions, and support them.

4.3. Presentations developed in groups

The objective of each presentation should be the analysis of the internationalisation
strategy of the company. On top of the readings for the unit, each group will receive a
document (in the form of a case study or research article) to frame its presentation. Please
note (i) data in these documents are not necessarily up-to-date, each group is expected
to get the latest available data (see useful websites above), and (ii) the presentations
should not be the summary of the documents, they should go beyond the document and
in particular answer the questions listed below. Please refrain from using unreliable
internet sources. Presentations should last no more than 15 minutes.
All groups have to answer the common set of questions listed below:
> Make a short description of the company, identifying the key milestones since the
start of its international expansion.
> Critically analyse the companys value-creation strategy in host markets,
identifying its underlying assumptions.
> Identify 3-5 positive and 3-5 negative elements of this strategy. Which has been
the balance now of the case study? Now?
> What would you recommend the company to do in the next five years to
strengthen its value creation? Make a list of five actions, and support them. How
do you think these recommendations will affect the financial performance of the
company?

In addition, each group should find between one and three more areas of analysis based
on the specific characteristics of its company. These areas should be explicitly related to
the main topics of the unit like acquisition of foreign/strategic assets, internalisation of
transaction costs, liability of origin (made in China for example), process innovation to
expand internationally, location (OLI model), entry mode, use of networks (LLL model),
etc. The identification and explanation of these areas count for 50% of the mark for the
presentations.

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VI. References Comentado [lm7]: Removed in alphabetical order as suggested
by you
Textbooks:
Fornes, G. & Butt Philip, A., 2012. The China-Latin America Axis. Emerging markets and
the future of globalisation Basingstoke: Palgrave Macmillan.
Verbeke, A., 2013. International Business Strategy Cambridge and New York: Cambridge
University Press.
Additional recommended reading:

Beugelsdijk, S., Brakman, S., Garretsen, H. & Van Marrewijk, C., 2013. International
Economics and Business Cambridge and New York: Cambridge University Press.
Fornes, G., 2009. Foreign Exchange Exposure in Emerging Markets. How Companies Can
Minimize It Basingstoke: Palgrave Macmillan.
Ghemawat, P (2008). Semi globalization. HBS Cambridge Press.
Gooderham, P., Grgaard, B. & Nordhaug, O., 2013. International Management. Theory
and Practice Cheltenham and Northampton: Edward Elgar.
Guillen, M. & Ontiveros, E., 2013. Global Turning Points. Understanding the challenges for
business in the 21st Century Cambridge and New York: Cambridge University Press.
Khanna, T. & Palepu, K., 2010. Winning in Emerging Markets: A road map for strategy and
execution Boston: Harvard Business School Publishing Corporation.
North, D., 1990. Institutions, institutional change, and economic performance New York:
Cambridge University Press.
Porter, M., 1990. The Competitive Advantage of Nations New York: Free Press.
Williamson, P., Ramamurti, R., Fleury, A. & Leme Fleury, M.T. eds. 2013. The Competitive
Advantage of Emerging Market Multinationals, Cambridge: Cambridge University Press.
Journal Articles
Armony, A. & Strauss, J., 2012. From Going Out (zou chuqu) to Arriving In (desembarco):
Constructing a New Field of Inquiry in ChinaLatin America Interactions. The China
Quarterly, 209, 1-17.
Buckley, P., Clegg, J., Cross, A., Liu, X., Voss, H. & Zheng, P., 2007. The determinants of
Chinese outward foreign direct investment. Journal of International Business Studies, 38
(4), 499-518.
Cardoza, G., Fornes, G., Li, P., Xu, N., & Xu, S. 2014. China goes global: public policies
influence on Small and Medium-size Enterprises international expansion Asia Pacific
Business Review, DOI: 10.1080/13602381.2013.876183.
Child, J. & Tse, D., 2001. Chinas transition and its implications for international business.
Journal of International Business Studies, 32, 5-21.
Cuervo-Cazurra, ., 2008. The multinationalization of developing country MNEs. The case
of multinationals. Journal of International Management, 14 (2), 138-154.
Destrin, S. & Prevezer, M., 2011. The role of informal institutions in corporate governance:
Brazil, Russia, India, and China compared. Asia Pacific Journal of Management, 28 (1), 41-
67.
Fornes, GE & Butt Philip, A 2014, 'The China-Latin America Axis: Following the Path of the
Manila Galleon' AIB Insights, vol 14, no. 1, pp. 7-10.
Fornes, G. & Butt Philip, A. 2014. Chinese outward investments to emerging markets.
Evidence from Latin America. European Business Review, 56, 6.
Hoskisson, R.E., Eden, L., Lau, C.M. & Wright, M., 2000. Strategy in Emerging Economies.

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Academy of Management Journal, 43 (3), 249-267.
Mathews, J., 2006. Dragon Multinationals: new players in 21st century globalization. Asia
Pacific Journal of Management, 23 (1), 5-27.
Peng, M., Wang, D. & Jiang, Y., 2008. An Institution-based view of international business
strategy: a focus on emerging economies. Journal of International Business Studies, 39,
920-936.
Sundaram, A. & Black, S., 1992. The environment and internal organization of
multinational enterprises. Academy of Management Review, 17, 729 -757.
Wang, L. & Juslin, H., 2009. The impact of Chinese culture on Corporate Social
Responsibility: the harmony approach. Journal of Business Ethics, 88, 433-451.
Wright, M., Filatotchev, I., Hoskisson, R.E. & Peng, M.W., 2005. Strategy Research in
Emerging Economies: Challenging the Conventional Wisdom. Journal of Management
Studies, 42 (1), 1-33
Useful websites (in alphabetical order):

Dry Baltic index http://www.bloomberg.com/quote/BDIY:IND

Commodities index http://www.bloomberg.com/quote/CRY:IND

Tech market intelligence platform https://www.cbinsights.com/

Chinese champions http://www.chinese-

champions.com/downloads/ChineseChampionsEN.pdf

World Bank Doing business in http://www.doingbusiness.org/

Gapminder Foundation http://www.gapminder.org/

Global Competitiveness

http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf

Global Information Technology

http://www3.weforum.org/docs/WEF_GlobalInformationTechnology_Report_2014.pdf

Human development reports http://hdr.undp.org/en/data-explorer

National statistics http://www.nationmaster.com/

World freights http://worldfreightrates.com/

National Bureau of Statistics of China http://www.stats.gov.cn/english/statisticaldata/

The World Factbook https://www.cia.gov/library/publications/the-world-factbook/
United Nations Conference on Trade and Development (UNCTAD) Statistics
http://unctadstat.unctad.org/ReportFolders/reportFolders.aspx?sCS_referer=&sCS_Chos
enLang=en
World Economic Forum Global Competitiveness Report
http://www.weforum.org/issues/global-competitiveness

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World Trade Organization Trade Statistics
http://www.wto.org/english/res_e/statis_e/statis_e.htm

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VII. Lecturers short bio

Dr. Luis Marijun de Santiago (luisantonio.marijuan@esic.edu)

Managing Director and founder of Corporacion Patiberica, consultancy company specialized
in Marketing, Strategy, Innovation and Newcoms. Advisor for different private companies
and official organizations in Spain and Latino America. He has visited for work, so far, 127
countries.

Education:
PhD in Chemistry, by Chemical Engineering Department of Madrid Complutense
University.
Executive MBA, by Madrid Instituto de Empresa.
Certificate in Executive Management by Seville Instituto Internacional San Telmo
ANECA Certified Dr. Teacher and Private University Teacher

Work Experience:
Independent advisor for FMC Foret, Ferroduo Gmbh, Aspeagro, Medifer Group,
Wakonigg, The Papaya Group, Compagnie des Engrais de Longueil.
Vice-president of Foundation Esteban G Vigil, Mediacin Solidaria
Corporate Development Manager at Barrabes Business Solutions.
General Manager of Oligo SA fertilizers
Global Business Manager for Iron Salts en Huntsman Tioxide PLC, multinational
chemical company.
Commercial Manager of Vetiquima. Chemicals distribution.
Iberia Sales Manager Exxon Chemicals Paramins, Lubes and fuels additives

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