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Detailed Course Outlines of Term-V

(2016-17)
1. ORGANISATIONAL STRUCTURE & DESIGN (BS-219)

Organisation Structure and Design


Term V BS Group Elective
Instructor: Nimruji Prasad J
Room. No. K 402, Extn. 721, Nimruji@iimcal.ac.in
Course Objective
This course will consider the various approaches to designing organizational structures. Rooted in the various
economic and sociological theories of structuring of organizations, the course aims at providing a broad
overview of these theories and the specific implications they have for managers seeking to organize work and
design organizational structural arrangements. The course will involve both lectures and case discussions.
Evaluation:
Assignment: 20%
Project: 20%
End Term 40%
Class Participation: 20%

Session Topic
1-2. Bureaucracy Readings:
1.Weber, Max. (1997) “Legitimate Authority and Bureaucracy” in Pugh,
D.S. (ed.) Organization Theory: Selected Readings (1997) Penguin:
London, 3-15.
2. Hall, Richard (1963) “The Concept of Bureaucracy: An Empirical
Assessment” American Journal of Sociology, 69, 32-40
3. Pugh, D.S. (1997) “Does Context Determine Form?” in in Pugh, D.S.
(ed.) Organization Theory: Selected Readings (1997) Penguin: London, 16-
35.
4.Gouldner, A.W. (1955) “Metaphysical Pathos and the Theory of
Bureaucracy” American Political Science Review, 49, 496-507.
3-5 Theory of the Firm Readings:
Transaction Cost and 1. Chapter 2. “Transaction Costs” from Ricketts, Martin (2002) The
Resource- Economics of Business Enterprise, Edward Elgar: Cheltanham
Dependence
2. Coase, R.H. (1937) “The Nature of the Firm” Economics, 4, 386-
Perspectives
405.
3. Chapter 8: “The Modern Corporation: Origins, Evolution,
Attributes from Williamson, O.E. (…) Economic Organization:
Firms, Markets and Policy Control.
4. Simon, H.A. (1991) Organizations and Markets, Journal of
Economic Perspectives, 5, 2, 25-44.
5. Pfeffer, J. &Salancik, G.R. (1978) “The Design of Externally
Controlled Organizations” in Pugh, D.S. (ed.) Organization
Theory: Selected Readings (1997) Penguin: London, 130-161.
6 Case Discussion: ECCO A/S. Global Value Chain Mangement

7-8 Strategy and Readings:


Structure 1. Miles, R.E. & Snow, C.C. (1984) Organizational Fit in Pugh,
D.S. (ed.) Organization Theory: Selected Readings (1997)

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Penguin: London, 162-183.
2. Chandler, A. (1981) “Historical Determinants of Managerial
Hierarchies: A Response to Perrow” in Perspectives on
Organisation Change and Behaviour, (ed.) Andrew Van de
Van, John Wiley, Canada
3. Mintzberg, Henry (1981) Organization Design: Fashion or
Fit?, HBR, January-February.
4. Kim, C. &Mauborgne, R (2009) How Strategy shapes
Structure” HBR, September.
9 Case Discussion: American Heart Association
10 Case Discussion: Andersen Consulting: EMEAI Reorganizing for
Revitalization
11 Power and Control Readings:
1. Perrow, C. (1981) Markets, Hierarchies and Hegemon
2. y in Perspectives on Organisation Change and Behaviour,
(ed.) Andrew Van de Van, John Wiley, Canada

12 Ownership and Readings:


Growth Greiner, L (1998) Evolution and Revolution as Organizations Grow, HBR,
June
Churchill, N & Lewis, V (1983) The Five Stages of Small Business
Growth, HBR, June
Adler, P, Heckscher, C &Prusak, L (2011) Building a Collaborative
Enterprise, HBR, August
The Organisation Design of Owner Managed Companies
13 Case: Organising From Scratch
14 Case: Johnsonville Sausage Co. (A) and (B)
15-16 Institutional and 1. Meyer, John & Rowan, Brian (1977) “Institutionalized Organizations:
Ecological Formal Structure as Myth and Ceremony” American journal of
Perspective Sociology 83,2.
2. DiMaggio, Paul & Powell, Walter (1983) “The Iron Cage Revisited:
Institutional Isomorphism and Collective Rationality in Organizational
Fields” American Sociological Review, 48, 2.
3. Scott, Richard & Meyer, John (1983) “The Organization of Societal
Sectors: Propositions and Early Evidence” in John W. Meyer and W.
Richard Scott (eds.), Organizational Environments: Ritual and
Rationality, Beverly Hills, CA: Sage.

17 Case: To be announced
18 Networks Readings:
1. Powell, W (1996) Trust-based Forms of Governance, in
Kramer, R 7 Tyler, T (Eds.) Trust in Organisations, Sage:
California.
2. Powell, w (1990) Neither Market nor Hierarchy:Network
Forms of Organization
3. Miles, R & Snow, C (1992) Causes of Failure in Network
Organizations, California Mangement Review, 34,4.
19 Case: Rainforest Alliance
20 Review and Readings:
Integration Tensions of Organisation Design
Do You have a Well Designed Organization
Case : ABB Poland
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2. MANAGEMENT OF SELF IN ORGANIZATIONS (BS-233)

MANAGEMENT OF SELF IN ORGANIZATIONS


INSTRUCTOR: PROF LEENA CHATTERJEE

Course Objective: The course aims at helping students to develop better insights and understanding
of themselves and their interaction with others in the environment. The course is based on the premise that an
understanding of the "Self" will lead to a more effective management of oneself and one's interaction in the
various roles one may take up in Organizations and other settings.

Methodology: In addition to a discussion of various theories and frameworks through which the
participant can examine "Self", the course also offers opportunities to examine and clarify one's styles, needs
and assumptions through participation in case discussions, experiential exercises, role plays and
administration of questionnaires. These exercises offer the student scope to gain insights into themselves and
to give and receive feedback from fellow participants.

As a part of this course, each student is expected to write his/her autobiography and to write an analysis of
himself/herself at the end. The assignment aims at facilitating the process of self- exploration and self-
analysis and encourages the student to examine various themes in his/her life and their causes and
consequences. In addition students will be expected to choose some novel/movie/poem/lyric that has made an
impact on them, and present their analysis of the same in an assigned session towards the end of the course.

The course outline is given below:

MODULE 1: UNDERSTANDING SELF


THEORIES
 Carl Gustav Jung
 Karen Horney
 George Kelly

EXPERIENTIAL EXERCISES
Structured personality questionnaire (FIRO B)
Unstructured personality test (TAT)
Team role styles (Self Perception Inventory)

PROJECT
Autobiography and Analysis

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MODULE 2: SELF AND OTHER: MANAGING
RELATIONSHIPS

THEORIES/ CONCEPTUAL FRAMEWORKS


 R.D. Laing
 E. Goffman
 Carl Rogers

EXPERIENTIAL EXERCISES
Managing Differences (group exercise)
Listening and Responding styles questionnaire
Giving and Receiving feedback (JOHARI WINDOW)
Interpersonal Communication (case discussion)
Employee Counselling (role play)

MANAGING INTERACTION IN GROUPS


THEORY/ CONCEPTUAL FRAMEWORK
 M. Kets de Vries& D. Miller

EXPERIENTIAL EXERCISES
On managing conflict and competition (group exercise)
Managing group meetings (role play)

PROJECT
Class Presentation (Novel/Poem/Lyrics/Movie)

EVALUATION: Students will be evaluated on the basis of the following three components:
1. Analysis of the Autobiography
2. Class Presentation
3. End Term Examination

SESSION PLAN

SESSION DATE TOPIC READINGS

1 Introduction to the Course: Introduction/expectation Reading 1,2


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clarification
2 Administration of FIRO B

3 Introduction To Managing Self Reading 3, 4

4 Theory of C. J. Jung Reading 5

5 Theory of C. J. Jung continued Reading 5

6 Theory of Karen Horney Reading 6 & 7

7 Exercise on Managing Differences

8 Administration of TAT and feedback

9 Introduction To Managing People Reading 9,


Case: Bob Knowlton

10 Transactional Analysis Questionnaire & Feedback

11 Exercise on the JOHARI Window

12 Theory of R. D. Laing & Reading 10,11


Theory of George Kelly
13 Role play on Employee Counselling Reading 12, 13, 14

14 Theory of Erving Goffman- Impression management Reading 15


15 Carl Rogers Exercise on Persuasion Reading 16
Listening & Responding Styles
Questionnaire
16 Managing Team Meeting: A Role Play

17 Understanding Group Dynamics Reading 17

18 Inter Group exercise

19 Team Role Styles Questionnaire

20 Discussion on work-life balance Reading 18, 19 20


Life and career planning exercise

Dates for submission of Write-up – 12/01/2015

Contacts:
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Course Instructor- Prof. Leena Chatterjee, lc@iimcal.ac.in

Teaching Assistant- Ankita Singh, ankitas12@email.iimcal.ac.in

MANAGEMENT OF SELF IN ORGANIZATIONS


INSTRUCTOR: PROF LEENA CHATTERJEE

Reading List

1. Poem " Ithaka" by C.P. Cavafy

2. The Importance of Self-Management by Leena Chatterjee

3. The Power To See Ourselves by P.J. Brouwer

4. What Makes A Leaderby Daniel Goleman, HBR, Jan 2004 (reprint)

5. On C.G. Jung's theory from "The I and the Not I" -M. Esther Harding (Chapters 3,4 &5)
Chap. 3- “Participation Mystique” and Identification with the Family
Chap. 4- Projections to Persons of the Same Sex: The Shadow
Chap. 5- Projections to Persons of the Opposite Sex: Anima and Animus

6. Karen Horneyfrom Theories of Personalityby Hall, Lindsey & Campbell (Chapter 6)

7. Neurosis and Human Growth : The Struggle Towards Self Realization by Karen Horney
(Chapter1,2)
Chap.1- The Search for Glory
Chap. 2- The Tyranny of the Should

8. Poem: In Broken Images

9. Managing Your Bossby John Gabarro& John Kotter

10. Personal Construct Theory: George Kelly from “The Evaluation of Personal Constructs" by D.
Bannister and J.M. Mair.

11. Interpersonal Perception (Chapters 1-3) by R.D. Laing, H. Phillipson and A.R. Lee

Chap. 1- Self and Other


Chap. 2- Interaction and Interexperience in Dyads

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Chap. 3- The Spiral of Reciprocal Perspectives

12. Choosing strategies for change by J.P Kotter & L.A. Schlesinger

13. Poem: Stronger Lessons

14. Giving and receiving feedback by John Anderson

15. On Facework: The Analysis of Ritual elements in Social Interactionby Erving Gofffman

16. The Necessary Art of Persuasion by Conger, J.A. (1998) HBR, May/June: 84-85

17. Group fantasies and Organizational Functioning by M. Kets de Vries& D. Miller

18. The Business Graduation Speech: Reflections On Happiness by M. Kets de Vries

19. On happiness….. Meaningful work…. Work-life balance …and other such impossibilities! By
Leena Chatterjee

20. Shooting of an Elephant by George Orwell

3. MANAGEMENT OF CREATIVITY (BS-230)

Instructor: Prof. Vidyanand Jha, BS Group

This is a second year course, being offered in the fifth term. There are no prerequisites for
this course apart from a high state of mindfulness, a good deal of enthusiasm and
willingness to work with oneself and in group settings.

The course has broadly four objectives:

1. To understand creative process

2. To help the participant recognize and develop her creative potential

3 To help recognize, encourage and support the creativity in others with whom the
participant must work or live

4. To help the participant understand the structure and functioning of creative


collectivities, specifically formal organizations.

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This course requires a high degree of participation from the participants who are required to
make presentations, conduct discussions and exercises and do a project.

It uses a number of pedagogies like group discussions, exercises, tests, talks by creative
persons and a project work which is accomplishing a creative work with the output and a
description of the creative process as being the part of the submission.

Mode of evaluation

Class Participation and Presentations 20 %


Creative Project 40%
Small Assignments: Creative Person 20%
Small Assignments: Creative Company 20%

This course would consist of 20 contact sessions, totaling 30 hours.

A number of readings and cases, as shown in the session wise schedule, would be used.

Session 1

An introduction to creativity

Warm up exercises

Expectations clarification and course announcements

Session 2

Understanding Creativity

Psychometric Tests

Exercises on Metaphors

Sessions 3 and 4

Creative Process

The Creating Mind, Gardener, Howard, HBS Press

The Magic Lantern, Ingmar Bergman, in Barron, Frank, et al (Eds.), Creators on Creating,
1997, New York: Penguin Books.
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Letters to Merline, Rainer Maria Rilke, in Barron, Frank, et al (Eds.), Creators on Creating,
1997, New York: Penguin Books.

Miscellany, Fellini, Federico, in Barron, Frank, et al (Eds.), Creators on Creating, 1997,


New York: Penguin Books.

The Symbolism of Poetry, Yeats, William Butler in Barron, Frank, et al (Eds.), Creators on
Creating, 1997, New York: Penguin Books.

The Dignified Professor, Feynman, Richard, in Barron, Frank, et al (Eds.), Creators on


Creating, 1997, New York: Penguin Books.

Visibility, Calvino, Italo in Barron, Frank, et al (Eds.), Creators on Creating, 1997, New
York: Penguin Books.

How to Manage an Advertising Agency, Ogilvy, David, in Barron, Frank, et al (Eds.),


Creators on Creating, 1997, New York: Penguin Books.

Anatomy, Da Vinci, Leonardo, in Barron, Frank, et al (Eds.), Creators on Creating, 1997,


New York: Penguin Books.

Session 5, 6, 7 and 8

Creative Personality

Introduction, Barron, Frank, in Barron, Frank, et al (Eds.), Creators on Creating, 1997, New
York: Penguin Books.

The Anatomy of Creative Courage, in Johnson, Paul, Creators, 2006, New York: Harper
Collins Publishers.

Balenciaga and Dior: The Aesthetics of a Buttonhole, in Johnson, Paul, Creators, 2006,
New York: Harper Collins Publishers.

Picasso and Walt Disney: Room for Nature in the Natural World, in Johnson, Paul, Creators,
2006, New York: Harper Collins Publishers.

Metaphors in a laboratory, in Johnson, Paul, Creators, 2006, New York: Harper Collins
Publishers.

Presentations by Students on Creative Personalities.

Feedback on psychometric tests

Session 9 and 10
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Creative Intelligence and abilities

Exercises on creative intelligence and thinking abilities like Fluency, Flexibility, and
Elaboration etc.

Session 11 & 12

Techniques of creativity

Brainstorming, attribute listing, checklist of questions, Synectics, morphological analysis,


and lateral thinking

Exercises

Session 13&14

Organizational & Managerial creativity and innovations

How to kill creativity? (cover story); By: Amabile, Teresa M.., Harvard Business
Review, Sep/Oct98, Vol. 76 Issue 5, p76, 12p, 1 diagram, 3c

Creativity under the Gun, Amabile, Teresa, M., Harvard Business Review, Aug 2002.

Managing innovation: When less is more. Nemeth, Charlan Jeanne. California Management
Review, Fall97, Vol. 40 Issue 1, p59, 16p, 1 chart

Weird Ideas that Spark Innovation, Sutton, Robert, Sloan Management Review, Winter
2002, 83-87.

Cases:

3M: Profile of an Innovative Company, Harvard Business School Press Case, 1996.
Corporate New Ventures at Procter & Gamble, Harvard Business School Press Case,
1997.

Session 15,16,17 &18

Tentatively Guest Lectures

Session 19 & 20

Presentation of Projects, Course Review & Feedback

4.ETHICS AND VALUES IN INTERNATIONAL BUSINESS (BC-202)


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INDIAN INSTITUTE OF MANAGEMENT CALCUTTA
ELECTIVE COURSE OUTLINE FOR PGP II, TERM V, (2016-17)

1. COURSE NAME : ETHICS AND VALUES IN INTERNATIONAL BUSINESS

2. TERM :V

3. COURSE CODE : BC 202

4. CONTACT HOURS : 30

5. CREDIT POINT :3

6. COURSE COORDINATOR : Prof. Nisigandha Bhuyan

7. COURSE INSTRUCTORS : Prof. Nisigandha Bhuyan

8. COURSE PREREQUISITES (IF ANY) : None

9. MAXIMUM REGISTRATION : 50

COURSE OBJECTIVE

In this era of globalization, opportunities for International Business come with its own set
of challenges. One of the greatest challenges of International operations of Business comes
from multicultural values. These challenges are as acute as there are diverse cultural
traditions, disparate levels of human development, incompatible legal systems and so on.
Hence ethical decision making in such varied environments, is an extremely complex
process that requires both: respect for universal human values; and sensitivity to cultural
perspectives. The central aim of the course is threefold: (1) provide students with wide
exposure to ethical problems that business managers encounter while operating in
international markets; (2) recommend implementation of value judgements in managerial
decision making process; (3) facilitate the ability to generate and practice tactics and
approaches for voicing and delivering values-driven positions that reflects on the cultural
values while reinforcing the fundamental human values.

The other aspect the course covers is the opportunities that International business generates
for the world community that reshapes not only the political, economic but also socio-
cultural values. Though such involvements by business are not only helpful in providing
solutions to the pressing local issues but also generate good business opportunities,
however, these are not free from ethical critiques. Students will have opportunity to
critically examine the modern-day business roles and practices that have gone beyond the

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traditional roles and helps improve social political and environmental conditions (such as
human rights, labour practices) while doing business.

COURSE METHODOLOGY
Pedagogy will involve class discussion, class assignments, case discussion, relevant
portions of text reading and analysis, videos and film shows.
Through international business cases the course will help students to recognize, examine,
and reinforce the importance of ethical decision making. Students will have the opportunity
to examine cases that present reasoned ethical arguments supporting different course of
action and select their best choice in different situations that would further help reinforce
their values.
The focuses is learning from the insights derived from the analysis of literary, mythological,
philosophical, and contemporary critical texts in managerial situations that will help
provide classroom experience through cases and exercises to identify, define, enact and
practice ethical judgements in International business scenarios.

 Literary texts like Things Fall Apart (Chinua Achebe), Trifles: A Play in One Act
(Susan Glaspell), A Man for all Seasons (Robert Bolt), The Remains of the Day
(Kazuo Ishiguro) and others would provide the scope to reflect creatively on the
complex aspects of decision-making within the larger subjective/local and objective
considerations.

 Mythological texts (for example, Mahabharata in Indian context) would provide


scope for debates concerning the cultural foundations of human values.

 Philosophical texts like The Republic (Plato), The Ground work for the Metaphysics
of Morals (Kant), Nichomachean Ethics (Aristotle), A Theory of Justice (Rawls) and
others provide scope for introspection on the nature of the fundamental values.

 Contemporary critical texts in Management like The Idea of Justice (Amartya Sen),
Justice (Michael J. Sandel) What Money Can’t Buy (Michael J. Sandel), The
Fortune at the Bottom of the Pyramid (C. K. Prahalad) Conscious Capitalism (John
Mackey, and Raj Sisodia) and others will provide opportunity for critical thinking
when discussing ethics, international business and world politics.

Note: The philosophical texts would be integrated into case discussions through use of
applied summaries, wherever required.

EVALUATION

Evaluation will include continuous class assessments through class assignments and class
participation. By the end of the course students will have to make a commitment to
themselves, and potentially to each other, about their future actions by sharing short
presentations from their final project. The final project assignment is to present a case
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scenario describing specific workplace value-conflict from their own experience, and/or
from a chosen case to share the analysis and action plan and “script” for voicing and acting
on their values.

Case publication potential for students


The best of these final project submissions can be used as case materials for future versions
of the course, and/or submitted for review and possible inclusion in the GVV Case
Collection.

EVALUATION WEIGHTAGE

 Quality of Class Participation (individual): 20% [Grading Template will be


given]
 Case analysis/writing (Individual): 20 % [the case must present and attempt to
address ethical issues]
 Class Assignments (individual/Group): 30% [class assignments may not be
announced in advance]
 Team Projects and Presentations (Individual/group): 30% [topics are varied and
can be either text analysis, or situation analysis, or examining how a specific
company manages the ethical issues in global operations and so on]

DISCUSSION TOPICS
 Moral Challenges, Moral Reasoning and Moral Judgement and Moral Decision Making
in Business
 Universal ethical principles and business practices across the world
 (Ethics of) Justice, Equality, Rights
 Cultural values and business context
 International labor standards
 The incredible goal of social Justice
 Trade in hazardous goods
 Women and equality
 Human rights: Global Standards
 Human rights and Asian Values
 Foreign companies & domestic political process, religious freedoms, indigenous
peoples rights and so on
 Cultures and the Human Environment
 Marketing and Advertising Issues
 Environmental issues
 Enlightened Self-Interest of business: Conscious capitalism
 Ethics and Multinational Corporations
 Doing business in less developed nations

READING MATERIALS
Kline, John M., (2005). Ethics for International Business: Decision-Making in A
Global Political Economy, Routledge.
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Donaldson, Thomas (1991). The Ethics of International Business, Oxford University
Press .

Reference Texts:

Achebe, C. Things Fall Apart, New York: Anchor Books, 1994.

Bolt, Robert A Man for all Seasons, London: Heinemann, 1960.

Glaspell, S. Trifles: A Play in One Act Boston: Walter H Baker Co, 1951

Ishiguro, K. The Remains of the Day, New York: Vintage International, 1988.

Badrinath, C. The Mahabharata: An Inquiry in the Human Condition, New Delhi: Orient
Longman Private Limited, 2007.

Aristotle, Nichomachean Ethics, Wordsworth Editions Limited, 1996.

Kant, Immanuel. The Critique of Practical reason, Cambridge: Cambridge University


Press, 1997.

Rawls, John. A Theory of Justice, Delhi: Universal Law Publishing Co. Pvt. Ltd. 1971

Sandel, Michael J. Justice: What’s the right things to do?, London: Penguin, 2009.

Sandel, Michael J. What Money Can’t Buy: The Moral Limits of Markets, London: Penguin,
2012.

Prahalad, C. K. The Fortune at the Bottom of the Pyramid: Eradicating Poverty through
Profits, New Jersey: Prentice Hall, 2010.

Mackey, John & Sisodia, Raj Conscious Capitalism: Liberating the Heroic Spirit of
Business, Watertown: Harvard Business School Publishing, 2014.

Other Readings
Donaldson, T. “Values in Tension: Ethics away from Home” Harvard Business
Review, 1996, pp. 48-62.
Donaldson, and Dunfee, “When Ethics Travel: The Promise and Peril of Global
Business Ethics,” California Management Review, Vol. 41, No. 4, 1999, pp. 45-63.

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Singer, P. “How do the Japanese live: The Corporation as an Ethical Community” in
How Are We to Live? Ethics in the Age of Self-interest, Oxford, Oxford University Press,
1977. pp. 121-141
Provis, C. “Guanxi and Conflicts of Interest” Journal of Business Ethics, 2008.
79:57–68
Hwang, D. B. et al “Guanxi and Business Ethics in Confucian Society Today: An
Empirical Case Study in Taiwan” Journal of Business Ethics, 2009. 89:235–250
Amartya Sen, “Human Rights and Asian Values”’ The New Republic, July 14-July
21, 1997.
Daniel (Daniel A.) Bell “The East Asian Challenge to Human Rights: Reflections on
an East West Dialogue” Human Rights Quarterly, Volume 18, Number 3, August 1996, pp.
641-667
Manan, Wan A. “A Nation in Distress: Human Rights, Authoritarianism, and Asian
Values in Malaysia” SOJOURN, Vol. 14, No. 2 (1999). Pp. 359-81.
Li, Xiaorong “ “Asian Values” and the Universality of Human Rights” Business and
Society Review, 102/103: 81-87.
Anderson, Elizabeth, 1999, "What Is the Point of Equality?", Ethics 109, pp. 287-
337.
Cohen, G. A., 1989, "On the Currency of Egalitarian Justice, Ethics 99, pp. 906-944.

5. ENTREPRENEURSHIP IN NGOS (BC-217)

INDIAN INSTITUTE OF MANAGEMENT CALCUTTA

1. Course name : Entrepreneurship in NGOs

2. Course Code : PGP – TERM- V BC 217

3. Course Coordinator : Prof. Nisigandha Bhuyan

4. Course Instructors : Prof. Ranjan Mitter (PTVF)

5. Course Prerequisites : None

6. Criteria for Registration : Credit only

7. Registrations : a) Minimum 10
b) Maximum 40 in a section

8. Course Objectives:
India has always been a country where social innovations have happened alongside technical or
business innovations. India’s philosophy, social and cultural heritage has nurtured a different society.
The Buddhist Sangha, the Ramakrishna Mission, Missionaries of Charity etc. all bear a footprint of
what is quintessentially Indian. In modern times, the Tatas pioneered industry without losing track of
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society. Today, many budding MBAs are investing their dreams in social innovation, not just business
growth. Education, health care, addressing the needs of the socially or economically backward, fair
trade- today’s global manager needs to be highly sensitized to these issues and concerns. In a radically
different world, NGOs are being asked to address the challenges facing civil society. At stake is not
academic debates and discussions, or the fate of prescriptive do-good theories, but the fate of human
civilization on the face of the earth.

9. Tentative themes/topics:

 Role of NGOs in India’s development


 Managing the NGO Organisation
 Social Innovation
 Business NGO Partnership
 Leadership in NGO’s
 Social Business Development
 Introducing sustainability oriented approach in marketing practices
 Challenges in creating inclusive business models
 Scaling and sustaining social business models
 Experiments of Tagore

Course materials:

Selected articles from list of readings and otherwise as well as cases will be distributed to students in a
comprehensive handout. A book is given as a reference and further reading for students interested to explore
deeper into the subject.

Book- Building Hope : Leadership in the Nonprofit World – by John Bateson, Published Macmillan India Ltd.
Reprint – 2008, ISBN 10: 0313-34851-0

Pedagogy:

Interesting features-

 Interaction with NGO’s drawn from diverse sectors is an integral part of the course plan. It will
introduce students to the world of NGOs and give them a sneak peek into their way of functioning.
Students get a chance to select from these organisations as also other NGOs their assignment.
 Leading NGOs will come and offer insights on themes that critically influence or affect NGO
functioning through live case studies of their respective organisations. These will complement the
case discussion undertaken by students on HBR Cases
 A lot of emphasis is laid in this course on independent study and research. Students are required to
identify a topic of their interest within the framework of the course outline and undertake a study
which involving research and fieldwork in an NGO. A comprehensive report and presentation on
the topic is the culminating point of this activity
 Participation in debates and discussions on the various themes and topics and interaction with the
Course Instructor, Guest Faculty and NGO leaders together constitute the backbone of the pedagogy.

Intended Learning Outcome

 The course intends to expose future business managers to the world of NGOs. It will help them in
understanding the NGO psyche and participate more meaningfully in stakeholder engagement.
 The course might also open new vistas to the student where a difference initiated in the
community might trigger new possibilities for business.
 The course might also in rare cases prepare the first groundwork for certain students who wish to
start a NGO themselves.
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10. Evaluation
Assignment with NGO on a topic of mutual interest 40 %
Case Analysis ( mostly HBR)and presentation in Groups 25%
Quiz – Short Case Analysis or Reflective Questions 30%
Class Participation 5%

6. LEADERSHIP EXCELLENCE : INSIGHTS FROM INDIAN ETHOS


(BC-218)

Indian Institute of Management Business

Ethics and Communication Group

(a) Course Title: Leadership Excellence: Insights from Indian Ethos


(b) Course Code: BC-218
(c) Term in which offered: Term V
(d) Credit: 3
(e) Course Coordinator/Instructor: Prof. C. Panduranga Bhatta
(f) CAP: 100 (Section- A-20 STEP students, 20 IIMC students, 10 CEMS
students, Section-B-20 STEP students, 20 IIMC students, 10 CEMS
students)

(g) Course
Coverage

The global age – an age when cultures, religions and historic traditions are merging
– requires people who can provide leadership based on holistic worldview, and
cultivate flexibility, and admit diversity besides championing the cause of higher
values such as inclusivism, interdependence, interconnectedness, ethics, and
compassion in every field of human activity including business. Indian ethos gives a
new and deeper meaning to the concepts of holistic leadership, spirituality, self,
organisation, and environmental consciousness. It enables future leaders to face the
sweeping and overpowering change with calmness and equanimity so as to cope up with
it, manage it and thrive on it.

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This course focuses on a wide range of issues related to leadership and provides
ideas, opinions, experiences, beliefs, perspectives and futuristic thoughts based on
Indian ethos which are of immense value to all those who aim to succeed in today’s
complex business environment. It focuses on a comprehensive, practical and highly
useful analysis of the defining components of effective leadership such as inspiring
and influencing people, nurturing talent, leading change, improving performance,
encouraging learning, and effective ways of achieving results, cooperation and creating a
successful enterprise.

This course addresses the topic of leadership excellence from a multidisciplinary


perspective and provides an alternative approach to understanding leadership
besides enabling participants to gain better insights and develop an intuitive
understanding of evolving perspectives, worldviews, visions and purposes, which are
needed to become excellent leaders.

The purpose here is to provide an integrative framework for understanding


leadership excellence. The focus is on helping participants on a path of self-discovery in
the area of leadership and providing practical tools that can make them more competent,
more articulate, more creative, more inspirational and more credible.

(h) Course Objectives

 To explore the relevance of Indian Ethos for further enrichment of holistic leadership
principles and practices.

 To develop a high order leadership based on vision, mission and action


exemplified by great leaders of India at different points in history.

 To sharpen multiple levels of leadership competence to meet the challenges of the


21st century.

 To provide insights to participants for developing leadership that is socially,


environmentally and culturally responsible.

1
8
(i) Course Content:

The course will be woven around the following themes:

 Exploring Indian Ethos


 Leadership Concepts and Practices from Ancient, Medieval and Modern India
 Exemplary Leadership based on Indian Ethos
 Intuition for Holistic Decision Making
 Values Based Leadership
 Spirituality for Leadership Excellence
 Developing Socially, Culturally & Environmentally Responsible Leadership
 Creative Leadership and Good Governance
 Self-Lotussing
 Coping with Stress from Within

(j) Pedagogy

This course has been designed to be interactive, and with scope for class participation
throughout. In addition to lectures and assigned readings, the learning approach
incorporates case analyses, video-case presentations, experience sharing, discussions,
and interactions with leaders, and group work and presentations, attitudinal tests
based on yoga and Ayurveda and reflections on real-life situations. Most of the inputs
are drawn from classical and contemporary writings on the subjects by eastern and
western authors.

(k) Evaluation

Evaluation will be done on the basis of quiz, group work, and theme paper and
class participation.

(l) Prescribed Reading Materials

1. Printed Books and Course Material Book to be supplied by PGP office.


2. Handouts and case studies to be supplied by the course teacher in the class
1
9
and through course-web.

(m) Suggested Reading:

1. Mark Tully, India’s Unending Journey, Rider, 2007.


2. Arthur Cotterell, Roger Lowe and Ian Shaw, Leadership: Lessons from
the Ancient World, Wiley, 2009.
3. Alan Axelrod, Gandhi CEO, Sterling,2010
4. APJ Abdul Kalam, Indomitable Spirit, Rajpal, 2010
5. Gopalakrishnan, R, The Case of the Bonsai Manager, Penguin Portfolio, 2007.
6. Manikutty, S and S. P. Singh, Essence of Leadership: Explorations from
Literature, Macmillan, 2010
7. Krishna, G.R, Indian Ethos for Modern Management, UBS
Publishers Distributors Ltd, 1999.
8. Swami Bodhananda, Indian Management and Leadership, Bluejay Books, 2007.
9. Amartya Sen, Argumentative Indian.
10. Ashok R Garde, Canakya on Management, Jaico Publishing House, 2006.
11. Jack Hawley, Reawakening The Spirit In Work, Tata McGraw-Hill
Publishing Company Limited, 2008.
12. Kamath, M.V. Gandhi: A Spiritual Journey, Indus Source Books, 2007.
13. Keshavan Nair, A Higher Standard of Leadership: Lessons from the Life of
Gandhi, Berrett-Koehler Publishers, San Francico, 1997.
14. Anand Kumarasamy, Gandhi on Personal Leadership, Jaico Publishing
House, 2006.
15. Bhatti, J.R, Total Quality Leadership, New Age International Publishers, 2007
16. Eknath Easwaran, Gandhi: The Man, Jaico Publishing House, 2006.
17. Basham AL, The Wonder That Was India, Rupa.
18. Gupta, GP, Management by Consciousness, Sri Aurobindo Institute of Research
in Social Sciences, Pondicherry, 2009
19. Sharma, G.D, Excellence in Management, Rupa & Co, 2008
20. Chaturvedi Badrinath, The Mahabharata: An Inquiry in the Human
Condition, Orient Longman,2006
21. Krishnamurti J, Reflections on the Self, Bluejay Books, 2000.
22. Howard Gardner, Leading Minds, Harper Collins Publishers, 1996.

2
0
(n) Research papers published by the course instructor related to the topic.

"In Search of Ethical Leadership: Classical and Contemporary Insights", Perspectives on


Management, Vol 1, No 1, April, 2007,Management Education Centre, Heritage Institute of
Technology, Kolkata, pp. 10-20, 2007.

“Public Service Leadership: Classical Insights for Contemporary Action”, Effulgence, Management
Journal of RDIAS, Vol. 4, No.2, July-Dec, 2006, pp.1-5, 2006.

“Effective Leadership: Human Values Perspective”, Human Values in Management, Ananda


Das Gupta (Ed), Ashgate Publishing Limited, England, 2004, Pp. 223-240, 2004.

“Governance: Insights from Eastern Philosophy”, Synergy ITS Journal of IT & Management,
Ghaziabad, Vol. 2, No.2, 2004, pp.61-73, 2004.

“Exploring Eternal Leadership Values and Practices for Organisational Excellence”, Review of
Business Research, International Academy of Business, Turlock, California, Vol. 1, No 2, October
2003, pp. 129-137, 2003.

“Inclusivism in Religio-Philosophical Systems of India”, Prajna Vihara: The Journal of


Philosophy and Religion, Assumption University, Bangkok, Vol.2 No.2 pp. 1-19, 2002.

“Positive Action: Cultural Insights into Motivation”, Global Business Review, International
Management Institute, New Delhi, Sage Publications, New Delhi, Vol.3 Number 1, January-June
2002 pp.39-52.

“Management of Power: Lessons from the Ramayana”, Chakraborty, S.K, and Pradip
Bhattacharya, (Ed.), Leadership and Power Ethical Explorations, Oxford University Press, New Delhi,
pp.415-28, 2001.
21
“Leadership Values: Insights from Ashoka's Inscriptions”, JHV, Sage, Delhi, Vol.6.2, pp.103-13,
2000.

“The Environmental Context: An Ashokan Approach”, Hemendu Bikash Chowdhury, (Ed.) Asoka
2300, Buddha Dharmankar Sabha, Calcutta, pp.25-27, 2000.

“Universal Compassion in Buddhist Ethics”, Kishornath Jha and Banamali Bishval (Ed.)
Hariharasatadalam, Acharya Harihara Jha Felicitation Committee, Puri, pp.555-61, 2000.

7. THE ECONOMICS OF HUMAN RESOURCES (EC/HR-225)

EC225/HR225: ‘THE ECONOMICS OF HUMAN RESOURCES’


Course Instructor: Professor Debashish Bhattacherjee
Terms 5, 2016

AIM/OBJECTIVES: The objective of this course is to familiarize second-year MBA students with the basic
analytical tools used by economists to study personnel and human resource management processes and outcomes.
The essential purpose here is to expose students to strategic decision-making frameworks that are used to execute
and implement a whole range of HRM issues in a fairly precise and concise manner. Each topic and/or session is
covered using simple real-life situations to illustrate rather powerful theoretical insights. Most of the exercises
therefore are totally participatory and interactive. Also: please note that the first half of the course is an
introduction to Personnel Economics whereas the second half is an introduction to standard labour economics.

SESSIONS & TOPICS:

Session 1:
1. Introduction: Definitions & Concepts
2. Recruitment & Selection

Sessions 2 & 3:
3. Compensation 1: Ability, Effort and Luck
4. Compensation 2: Salary Structure & the Tournament Model

Session 4:
5. Compensation 3: Variable Pay or Fixed Pay?

Session 5:
6. Human Capital, On-the-Job Training & Earnings

Session 6:
7. Information, Signalling & Raiding

Session 7:
8. Industrial Politics: Teams, Cooperation & Competition

22
Session 8:
9. Evaluation

Session 9:
10. Employee Empowerment & Productivity
11. Summarizing the First Half of the Course

Session 10:
12. Problem Solving in Personnel Economics

MIDTERM

Sessions 11 & 12:


13. The Economics of Trade Unions

Sessions 13 &14:
14. The Economics of Discrimination

Session 15 & 16:


15. Labour Supply & Labour Demand

Session 17 & 18:


16. Labour Market Equillibrium

Session 19:
17. Unemployment

Session 20:
18. Summarizing the Second Half of the Course

Textbooks:
1. Edward Lazear, Personnel Economics for Managers, (selected chapters)
2. George Borjas, Labor Economics, (selected chapters)

Evaluation: (Only Credit)

Midterm exam = 50%


Endterm = 50%

8. DECISIONS AND GAMES (EC-246)

EC 246: DECISIONS & GAMES


Arijit Sen
[A 2 -year elective course for credit only, with a cap of 100 PGP students (no cap for FP students)]
nd

Decision Theory is a study of “rational decision making in an exogenous environment” – where the
environment’s reaction to a decision-maker’s choice is insignificant. Game Theory extends Decision Theory
to study “interactive decision-making in an endogenous environment” where multiple decision-makers
respond to each other’s decisions. The course will present a systematic introduction to the core ideas in
Game Theory, and will study the applications of these ideas in diverse strategic situations.
We shall focus on the following strategic scenarios: (a) competition vs. cooperation, (b) coordi-nation and
anti-coordination, (c) intentional and inadvertent information transmission, and (d) bargaining.
23
Game-equilibrium analysis will be applied to understand problems in sustaining cooperation, making
credible threats and promises, achieving coordination, transmitting signals, and bidding in auctions. We
shall conclude with a discussion on the strategic aspects of negotiations, focusing on the interplay between
value-creation and value-capture that is inherent in formulating business strategies.

Course Topics
1. GAMES AND NASH EQUILIBRIA
From Decision Theory to Game Theory; Game Formulations and Game Structures;
Nash Equilibrium in Strategic-form Games of Complete Information

2. EPISTEMIC FOUNDATIONS OF STRATEGIC BEHAVIOUR


Rationalizability and Dominance-solved Nash Equilibria in Simultaneous-move Games; Backward
Induction and Subgame-perfect Nash Equilibria in Sequential-move Games; Forward Induction
Refinements in Sequential-move Games

3. COOPERATION DILEMMAS
Prisoners’ Dilemmas in Economic and Social Interactions; Strategic Substitutes and Complements;
Collective Action Problems; Commitment Moves and ‘Meta-strategies’ to mitigate Cooperation
Dilemmas

4. COORDINATION, ANTI-COORDINATION, AND DIS-COORDINATION


Multiplicity of Nash Equilibria in Games of Coordination and Anti-coordination; Non-existence of
Pure-strategy Nash Equilibria in Dis-Coordination Games; Interpreting Mixed-strategy Nash
Equilibria

5. NASH EQUILIBRIA AS SELF-ENFORCING RECOMMENDATIONS


Self-enforcing Recommendations and Self-enforcing Agreements; Renegotiation-proof Nash
Equilibria; Coalition-proof Nash Equilibria; Correlated Equilibria

6. REPEATED AND DYNAMIC GAMES


Repeated Games and Sustenance of Tacit Collusion; Repeated Games and Fair Coordination; Dynamic
Games of Timing: Preemption, Concession, and Wars of Attrition

7. STRATEGIC INTERACTIONS UNDER ASYMMETRIC INFORMATION


Bayes-Nash & Perfect-Bayesian Equilibria in Games of Incomplete Information; Reputation-building
in Multi-stage Games; Wars of Attrition under Asymmetric Information; Signalling Games: Belief-
updating and Forward Induction Refinements

8. BARGAINING AND NEGOTIATIONS


Bilateral Bargaining: The Nash Solution and the Alternating-offers Game; Contract Negotiations and
the Hold-up Problem; Multilateral Bargaining and Coalition Formation

Basic Text Avinash Dixit, Susan Skeath, and David Reiley: Games of Strategy (2015 edition)
Bedside Books Thomas Schelling: The Strategy of Conflict; Avinash Dixit & Barry Nalebuff: The Art
of Strategy; Adam Brandenburger & Barry Nalebuff: Co-opetition

Course Pedagogy One way to teach a rigorous course in Game Theory is to take the formal “definitions –
theorems – proofs” approach. The current course will, in contrast, take a largely “intuitive” approach, where
game theoretic concepts will be introduced and analyzed through a series of “game examples”. These
examples will be presented in two ways. In some cases, a Discussion Game will be posted in the Course Web
24
Page before a lecture, and will then be studied in class (it will help immensely if students ponder over the
example before coming to class). In other cases, a Game Experiment will be held in class, and the
experimental outcomes will be discussed in a subsequent lecture. Theoretical concepts and formal results
will be developed through these two kinds of Game Examples.

Information on in-class Game Experiments There will be four game experiment sessions held in
class over the entire term (each session will be for about 15-20 minutes). The first two experiment sessions
will be held in the 2nd and the 4th lectures. The last two experiments will be held after the mid-term exams.
The experiments will be pen-and-paper experiments, where each student will play against the “average
strategy” of a “rival group of students”. Relative performance will determine individual score in an
experiment.

Course Evaluation Performance in the class experiments will constitute 15% of a student’s course grade.
Of the four game experiments that will be held over the term, and a student’s three best performances
will count towards his/her course grade.
A 1.5 hour mid-term exam will constitute 35% of course grade, and a comprehensive 2 hour end-term exam
will constitute 50% of course grade.
For a student who misses the mid-term exam (for valid medical reasons), the end-term exam will constitute
85% of the grade. If a student misses the end-term exam (for valid medical reasons), he/she will have to
appear for a make-up exam (and will suffer a grade drop).

9. INSTITUTIONS, MARKETS AND FIRMS : GROWTH AND STRUCTURAL


CHANGE IN CHINA AND INDIA (EC-237)

Institutions, Markets and Firms : Growth and Structural in China and India

Course Instructor: Mritiunjoy Mohanty, Economics Group

Objective:
The rationale for this course is perhaps mostly aptly put by Bardhan (2010) in explaining the motivation behind his new book:
“[a]n attempt to look inside these two countries and carry out a comparative assessment of their economic achievements
and their still massive problems with a focus on structural and institutional issues in the domestic political economy
context”. p.2

Differently put the course seeks to explain the choices the two countries have made and how these are shaped by both
contingent and structural factors. In addition, it also seeks to explore how firms have been shaped by and shaped these
outcomes.

To that end, the course is divided into two parts – Part I sets out the framework for analysis and Part II is a comparative
assessment of the two countries.

Course Outline:

Part I: The Framework:


I: Growth and structural change: an introduction

Texts:
Jones, C. (2006), Introduction to Economic Growth, WW Norton and Co., New York

Syrquin, M. and H. Chenery, (1989), Three Decades of Industrialisation, World Bank Economic Review, Vol. 3(2), pp 145-
181

25
II: Different strokes for different people – varieties of capitalism: liberal market economies and co-ordinated market
economies

Texts:
Boyer, R. (1997), ‘The Varieties and Unequal Performance in really Existing Markets’ in R. Boyer and J. Rogers
Hollingsworth, Contemporary Capitalism: The Embeddedness of Institutions, Cambridge University Press pp 55-93

Boyer, R. and J. Rogers Hollingsworth (1997), ‘The Varieties of Institutional Arrangements and their Complementarity in
Modern Economies’ in R. Boyer and J. Rogers Hollingsworth, Contemporary Capitalism: The Embeddedness of Institutions,
Cambridge University Press pp 49-54

Hall, P.A. and D. Soskice, (2001), ‘Introduction to Varieties of Capitalism’ in P.A Hall and D. Soskice (eds.), Varieties of
Capitalism: The Institutional Foundations of Comparative Advantage, Oxford University Press. pp 1-69

Howell, C. (2003) ‘Varieties of Capitalism: and then There Was One?’, Comparative Politics, 36, pp 103–124.

Streeck, W, (2001), ‘Introduction: Explorations into the Origins of Non-liberal Capitalism in Germany and Japan’ in W.
Streeck and and K Yamamura, The Origins of Non-liberal Capitalism: Germany and Japan in Comparison, Cornell University
Press. pp 1-38

Streeck, W. and K Yamamura, (2003), ‘Introduction: Convergence or Diversity: Stability and Change in German and Japanese
Capitalism’ in W. Streeck and and K Yamamura, The End of Diveristy? Prospects for German and Japanese Capitalism,
Cornell University Press. pp 1-50

III: Globalisation and Changing Production Technologies: Modular production technology and the decision to out-
source and off-shore

The rise of modular production technology; the demise of the vertically integrated firm; modular technology and the decision
to outsource; global production networks and the decision to outsource and off-shore; the return of geography; the rise of
regional economies; inter-firm competition and cooperation

Texts:
Berger, S., (2005) How We Compete: What Companies Around the World Are Doing to Make it in Today's
Global Economy, Random House

Dicken, P. and A Malmberg,. (2001) ‘Firms in Territories: a Relational Perspective’, Economic Geography, 77, pp 345–363.

Herrigel, G. and J. Zeitlin, (2010) ‘Inter-Firm Relations in Global Manufacturing: Disintegrated Production and Its
Globalization’ in G. Morgan, , J. Campbell, , C. Crouch, P. H Kristensen, O. K. Pedersen, and R. Whitley, (eds) The Oxford
Handbook of Comparative Institutional Analysis, Oxford, Oxford University Press.

Sabel, C. and J. Zeitlin, (2004) ‘Neither Modularity Nor Relational Contracting: Inter-Firm Collaboration in the New
Economy’, Enterprise and Society, 5, 3pp 88–403.

Saxenian, A. (2002) ‘Transnational Communities and the Evolution of Global Production Networks: The Cases of Taiwan,
China, and India’, Industry and Innovation, 93, pp 183–202.

Whitford, J. and C. Potter, (2007) ‘Regional Economies, Open Networks and the Spatial Fragmentation of Production’, Socio-
Economic Review, 5, pp 497–526.

Part II: China and India: a comparison

IV Decolonisation and Revolution – the institutional framework for growth

Texts:
Bardhan, P., (2010) Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India,
Princeton University Press, Princeton, USA

V Accounting for growth: the demand and supply side


Sources of growth; investment; savings

26
Texts:
Bosworth, B. and S. Collins, (2007), Accounting for Growth: Comparing China and India, NBER Working Paper 12943,
National Bureau of Economic Research, Cambridge, USA

Brandt. L., C. Hsieh and X. Zhu, (2007), Growth and Structural Transformation in China, in L. Brandt and T.G. Rawski, (eds.)
(2007), China’s Great Economic Transformation, Cambridge. Pp 683-728

Kuijs, L., (2005), ‘Investment and Saving in China’ WPS3633, World Bank

Mohanty, M. and V.N. Reddy (2010) 'Some Explorations into India’s Post-Independence Growth Process, 1950/51-2002/3: the
demand side', mimeo, Indian Institute of Management Calcutta

VI Globalisation, Economic and Institutional Reform


Imperatives for reform and integrating in the global economy

Texts:
Bardhan, P., (2010) Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India,
Princeton University Press, Princeton, USA

Brandt, L. and T.G. Rawski, (2007), China’s Great Economic Transformation, in L. Brandt and T.G. Rawski, (eds.) (2007),
China’s Great Economic Transformation, Cambridge pp 1-26

Branstetter, L. and N. Lardy. 2006. ‘China’s Embrace of Globalization’ Working Paper 12373, National Bureau of Economic
Research, Cambridge, MA.

Joshi, V. and I.M.D. Little (2004), India's Economic Reforms, 1991-2001, Oxford University Press

VII Agriculture: Growth, Agrarian Crisis and surplus labour

Texts:
Bardhan, P., (2010) Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India,
Princeton University Press, Princeton, USA

Fan, S. and A. Gulati, (2008), The Dragon and the Elephant: Learning from Agricultural and Rural Reforms in China and
India, Economic and Political Weekly, June 28

FAO (Food and Agriculture Organization of the United Nations). 2006. “Rapid Growth
of Selected Asian Economies: Lessons and Implications for Agriculture and Food Security: China and India.” Regional Office
for Asia and the Pacific. Bangkok: FAO.

VIII Industrialisation

Industrial policy as an enabler of growth; the possibility of small-industry led development; capitalism and the logic of scale;
entrepreneurship and growth; the state as an entrepreneur

Texts:

Chaudhuri, S., (1998), Debates on Industrialisation, in T.J. Byres (ed.), The Indian Economy: Major Debates Since
Independence, Oxford University Press, New Delhi

Chaudhuri, S., (2005), The WTO and India's Pharmaceuticals Industry: Patent Protection, TRIPS, and Developing Countries,
Oxford University Press. Chapter 2.

Gokarn, S., A. Sen, and R. Vaidya, eds. 2004. The Structure of Indian Industry. New York: Oxford University Press.

Brandt, L. and T.G. Rawski and J. Sutton (2007), ‘China’s Industrial Development’, Great Economic Transformation, in L.
Brandt and T.G. Rawski, (eds.) (2007), China’s Great Economic Transformation, Cambridge pp 569-632

Huang, Y., (2008), Capitalism with Chinese Characteristics: Entrepreneurship and the State, Cambridge

27
Putterman, L., (1997), ‘On the Past and Future of China’s Township and Village Owned Enterprises’, World Development, Vol.
25 (10), pp 1639-55

VIII: Services-led Growth

Texts:
Arora, A. and A. Gambardella, (2004), ‘The Globalization of the Software Industry: Perspectives and Opportunities for
Developed and Developing Countries’, Working Paper 10538, National Bureau of Economic Research, Cambridge, MA

Arora, A. and S. Athreye, (2001), ‘The Software Industry and India’s Economic Development’, Discussion Paper 2001/20,
United Nations University/World Institute for Development Economics Research, Helsinki

Dasgupta. S. and A. Singh, (2005), ‘Will Services be the new engine of Indian economic growth’ Development and Change.
Vol. 36(6)

Gordon, J. and P. Gupta, (2005), ‘Understanding India’s Services Revolution’, in W. Tseng and D. Cowen (eds.) India’s and
China’s Recent Experience with Reform and Growth, Palgrave Macmillan, New York.

Singh, N., (2006), ‘Service-led industrialization in India: assessment and lessons’, mimeo, University
of California, Berkeley

IX: Finance: as a driver or a hand-maiden


Financial intermediation, reform and growth

Texts:
Allen, F., J. Qian and M. Qian, (2007), ‘China’s Financial System: Past, Present and Future’ in L. Brandt, and T.G. Rawski,
(eds.) (2007), China’s Great Economic Transformation, Cambridge. pp 506-568

Bardhan, P., (2010) Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India,
Princeton University Press, Princeton, USA

Khanna, Sushil, (1999), 'Financial Reforms and the Industrial Sector in India', Economic and Political Weekly, No.45

Reddy, Y.V. (2009), India and the Global Financial Crisis: Managing Money and Finance, Orient Blackswan, Hyderabad,
India. Chaps 5,6 and 19

Reddy, Y.V., (2007), ‘Developing Debt Markets in India: Review an Prospects’ RBI Monthly Bulletin, December

X: Employment, inequality and poverty

Texts
Bardhan, P., (2010) Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India,
Princeton University Press, Princeton, USA

Chandrasekhar, C.P. and J. Ghosh, (2006), Macroeconomic Policy, Inequality and Poverty Reduction in India and China, The
Ideas Working Paper Series, Paper no. 05/2006

Chen, S. and M. Ravallion, (2004), ‘How have the world’s poorest fared since the early 1980s?’, WPS 3341, World Bank

Mohanty, M., (2009), ‘The dynamics of employment generation in post-reform India’, Working Paper Series WPS No. 640,
IIM Calcutta

XI: Firm response to globalization: Cases


1. WuMart Stores
2. Icebraker: China entry decision
3. Ranbaxy
4. Infosys/Wipro

XII: The political economy of growth: the choices we make

Arrighi, G., (2007), ‘Epilogue’ in Adam Smith in Beijing: Lineages of the 21st Century, Verso, London. pp 379-89

28
Bardhan, P., (2010) Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India,
Princeton University Press, Princeton, USA

Chandra, N.K., (2010), ‘Inclusive growth in neoliberal India: a façade?’, Economic and Political Weekly, Vol. XLV, No. 8, pp
43-56

Mohanty, M., (2009), ‘India’s tryst with destiny: the choices we make’, mimeo, Indian Institute of Management Calcutta

Evaluation: mid-term and an end-term examination

Registration cap: 50

REFERENCES
Allen, F., J. Qian and M. Qian, (2007), ‘China’s Financial System: Past, Present and Future’ in L. Brandt, and T.G. Rawski,
(eds.) (2007), China’s Great Economic Transformation, Cambridge. pp 506-568

Arora, A. and A. Gambardella, (2004), ‘The Globalization of the Software Industry: Perspectives and Opportunities for
Developed and Developing Countries’, Working Paper 10538, National Bureau of Economic Research, Cambridge, MA

Arora, A. and S. Athreye, (2001), ‘The Software Industry and India’s Economic Development’, Discussion Paper 2001/20,
United Nations University/World Institute for Development Economics Research, Helsinki

Arrighi, G., (2007), ‘Epilogue’ in Adam Smith in Beijing: Lineages of the 21st Century, Verso, London. pp 379-89

Bardhan, P., (2010) Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India,
Princeton University Press, Princeton, USA

Berger, S., (2005) How We Compete: What Companies Around the World Are Doing to Make it in Today's
Global Economy, Random House

Bosworth, B. and S. Collins, (2007), Accounting for Growth: Comparing China and India, NBER Working Paper 12943,
National Bureau of Economic Research, Cambridge, USA

Boyer, R. (1997), ‘The Varieties and Unequal Performance in really Existing Markets’ in R. Boyer and J. Rogers
Hollingsworth, Contemporary Capitalism: The Embeddedness of Institutions, Cambridge University Press pp 55-93

Boyer, R. and J. Rogers Hollingsworth (1997), ‘The Varieties of Institutional Arrangements and their Complementarity in
Modern Economies’ in R. Boyer and J. Rogers Hollingsworth, Contemporary Capitalism: The Embeddedness of Institutions,
Cambridge University Press pp 49-54

Brandt, L. and T.G. Rawski, (2007), China’s Great Economic Transformation, in L. Brandt and T.G. Rawski, (eds.) (2007),
China’s Great Economic Transformation, Cambridge pp 1-26

Brandt, L. and T.G. Rawski, (eds.) (2007), China’s Great Economic Transformation, Cambridge

Brandt. L., C. Hsieh and X. Zhu, (2007), Growth and Structural Transformation in China, in L. Brandt and T.G. Rawski, (eds.)
(2007), China’s Great Economic Transformation, Cambridge. Pp 683-728

Branstetter, L. and N. Lardy. 2006. ‘China’s Embrace of Globalization’ Working Paper 12373, National Bureau of Economic
Research, Cambridge, MA.

Chandra, N.K., (2010), ‘Inclusive growth in neoliberal India: a façade?’, Economic and Political Weekly, Vol. XLV, No. 8, pp
43-56

Chandrasekhar, C.P. and J. Ghosh, (2006), Macroeconomic Policy, Inequality and Poverty Reduction in India and China, THE
IDEAs WORKING PAPER SERIES, Paper no. 05/2006

Chaudhuri, S., (1998), Debates on Industrialisation, in T.J. Byres (ed.), The Indian Economy: Major Debates Since
Independence, Oxford University Press, New Delhi

29
Chaudhuri, S., (2005), The WTO and India's Pharmaceuticals Industry: Patent Protection, TRIPS, and Developing Countries,
Oxford University Press. Chapter 2.

Dasgupta. S. and A. Singh, (2005), ‘Will Services be the new engine of Indian economic growth’ Development and Change.
Vol. 36(6)

Dicken, P. and A Malmberg,. (2001) ‘Firms in Territories: a Relational Perspective’, Economic Geography, 77, pp 345–363.

Fan, S. and A. Gulati, (2008), The Dragon and the Elephant: Learning from Agricultural and Rural Reforms in China and
India, Economic and Political Weekly, June 28

Gokarn, S., A. Sen, and R. Vaidya, eds. 2004. The Structure of Indian Industry. New York: Oxford University Press.

Gordon, J. and P. Gupta, (2005), ‘Understanding India’s Services Revolution’, in W. Tseng and D. Cowen (eds.) India’s and
China’s Recent Experience with Reform and Growth, Palgrave Macmillan, New York.

Hall, P.A. and D. Soskice, (2001), ‘Introduction to Varieties of Capitalism’ in P.A Hall and D. Soskice (eds.), Varieties of
Capitalism: The Institutional Foundations of Comparative Advantage, Oxford University Press. pp 1-69

Herrigel, G. and J. Zeitlin, (2010) ‘Inter-Firm Relations in Global Manufacturing: Disintegrated Production and Its
Globalization’ in G. Morgan, , J. Campbell, , C. Crouch, P. H Kristensen, O. K. Pedersen, and R. Whitley, (eds) The Oxford
Handbook of Comparative Institutional Analysis, Oxford, Oxford University Press.

Howell, C. (2003) ‘Varieties of Capitalism: and then There Was One?’, Comparative Politics, 36, pp 103–124.

Huang, Y., (2008), Capitalism with Chinese Characteristics: Entrepreneurship and the State, Cambridge

Joshi, V. and I.M.D. Little (2004), India's Economic Reforms, 1991-2001, Oxford University Press

Khanna, Sushil, (1999), 'Financial Reforms and the Industrial Sector in India', Economic and Political Weekly, No.45

Kuijs, L., (2005), ‘Investment and Saving in China’ WPS3633, World Bank

Mohanty, M., (2009), ‘The dynamics of employment generation in post-reform India’, Working Paper Series WPS No. 640,
IIM Calcutta

Mohanty, M. and V.N. Reddy (2010) 'Some Explorations into India’s Post-Independence Growth Process, 1950/51-2002/3: the
demand side', mimeo, Indian Institute of Management Calcutta

Putterman, L., (1997), ‘On the Past and Future of China’s Township and Village Owned Enterprises’, World Development, Vol.
25 (10), pp 1639-55

Reddy, Y.V. (2009), India and the Global Financial Crisis: Managing Money and Finance, Orient Blackswan, Hyderabad,
India. Chaps 5,6 and 19

Reddy, Y.V., (2007), ‘Developing Debt Markets in India: Review and Prospects’ RBI Monthly Bulletin, December

Sabel, C. and J. Zeitlin, (2004) ‘Neither Modularity Nor Relational Contracting: Inter-Firm Collaboration in the New
Economy’, Enterprise and Society, 5, 3pp 88–403.

Saxenian, A. (2002) ‘Transnational Communities and the Evolution of Global Production Networks: The Cases of Taiwan,
China, and India’, Industry and Innovation, 93, pp 183–202.

Singh, N., (2006), ‘Service-led industrialization in India: assessment and lessons’ mimeo, University
of California, Berkeley

Streeck, W, (2001), ‘Introduction: Explorations into the Origins of Non-liberal Capitalism in Germany and Japan’ in W.
Streeck and and K Yamamura, The Origins of Non-liberal Capitalism: Germany and Japan in Comparison, Cornell University
Press. pp 1-38

Streeck, W. and K Yamamura, (2003), ‘Introduction: Convergence or Diversity: Stability and Change in German and Japanese
Capitalism’ in W. Streeck and and K Yamamura, The End of Diveristy? Prospects for German and Japanese Capitalism,
Cornell University Press. pp 1-50
30
Syrquin, M. and H. Chenery, (1989), Three Decades of Industrialisation, World Bank Economic Review, Vol. 3(2), pp 145-181

Whitford, J. and C. Potter, (2007) ‘Regional Economies, Open Networks and the Spatial Fragmentation of Production’, Socio-
Economic Review, 5, pp 497–526.

Cases:
1. WuMart Stores
2. Icebraker: China entry decision
3. Ranbaxy
4. Infosys/Wipro

10. INTERNATIONAL FINANCE (FI-224)

Course Coordinator : Prof. Dipankar Mitra

Criteria for restriction on Course registration: Registration Only on Credit Basis

Tentative Course Outline

1. Introduction – need for Foreign Currency finance and broad sources of international finance

2. International financial markets – Domestic (Home + Foreign), Eurocurrency and Foreign exchange
markets – Linkages, risks, costs and efficiencies, interactions, conditions, Euro Banking, International
transfer of Funds mechanisms

3. Foreign exchange markets – Participants, Value Dates, Quotation Systems, Comparing Quotations
and their quality and information content, cross spot, forward and swap rates, Inter-relationships
between foreign exchange and money markets, Interest Parity and covered Interest Arbitrage, swap
transactions and arbitrage

4. Business Opportunities in treasury Management in banking, commercial and industrial businesses in


both equilibrium and dis-equilibrium situations viz. – Expected changes in Interest rates and, rolling
over and getting out of an exchange position, creating forward markets, value of floats – effective
yields and costs, costs of foreign currency deposits, central bank intervention in foreign exchange
markets and objectives, modus operandi etc., Management of opposing cash flows, Borrowing and
Investing cash flows with and without Exchange positions, etc.

5. Analysis in depth of the various investments and markets for raising funds in the International
Financial markets, strategies for shopping for finance in the International capital and money markets
including parameters for choosing a funding option and their evaluation

6. Foreign currency exposure and Risk – Concepts, Management policies and Strategies,
classification, hedging instruments for implementing both active Internal and external strategies, etc.

Method of Evaluation: Mid Term = 40% & End-term = 60%

11. BANK MANAGEMENT (FI-242)

Course Name Bank Management


Term PGP II – Term V
31
Name of Instructor Mr. Pralay Majumder (PTVF)

Objectives :
The objective of the course is to acquaint students with the nuances of banking in the perspective of the
recent changes in banking. The course would start with the discussion covering the importance of
banking in the economy and then gradually take students to the different aspects of banking in the present
day context.

Session Plan :
Session Description
1 Comparison between Bank Balance Sheet and other business entities balance sheet .
Uniqueness of the Bank Balance Sheet and its business operation. Risk associated
with Financial Intermediary – Due to highly leveraged capital structure
Measures adopted by the regulator to contain such risk- Building up of ideas only.
Discussion on Sub prime crisis from the above point of view;
Banking In Indian Concepts – Three Phases – Pre Nationalization , Post
nationalization but pre liberalization ( 1991) , Post liberalization ( post 1991); Sources
of Bank Funds –
Types of Liabilities –
Deposits – Type of deposits - Term Deposits , Demand Deposits ,
Readings : “Bank Management” – Koch and Macdonald;
Handouts
2 Sources of Bank Funds – Tier I and Tier II fund
Negotiable Deposits – Features, Pricing and Present Trend in Indian Market and
Global Market
Treasury Operation of Banks : Domestic and foreign treasury operation of bank with
respect to the following instruments :
Call and Notice Money – Features , Pricing and procedure for raising money through
these products .
Raising funds by using the open market operation – Procedures , Pricing and
methodology of raising money through these products.
Raising Funds through refinance scheme- Types of refinance scheme available in the
market, features of such refinance schemes, pricing and present trend in Indian ,
European and United States Market.
Readings : Handouts
3 Treasury Operation in Fixed Income Market :
Investment in Investments – Types of Investments – Government Securities , PSU
Bonds , Corporate Bonds , Shares and Debentures - Features, Procedures and Pricing
– Present situation with Indian Banks and comparison with other countries.
Investment in Loans and Advances- Comparison of loans and advances with
Investments;
Readings : “Bank Management” – Koch and Macdonald ;Hand Out; RBI Website
Notifications
4 Corporate Banking Activity on the asset side :
Investment in Loans and Advances –Types of Loans products – Working Capital
(Cash Credit, Overdraft , Bill Discounting etc ) , Term Loan , - Characteristics, Pricing
and Features –Assessment of Working Capital Loan Products – Details Assessment
Process ;
Reading : Handouts
5 Assessment of Working Capital Loan Products – Details Assessment Process :
Reading : Handouts
Case : ABC Corporations (1)
32
6 Assessment and description of Non Fund Based Working Capital Product – Letter of
Credit and Bank Guarantee
Reading : Handout
7 Assessment of Term Loan Products – Details Assessment Process ;
Reading : Handouts
Case : XYZ Corporations ( 2)
8 Project and Infrastructure Finance – Products – Detail Assessment Process :
Reading : Handouts

9 Infrastructure Finance – Issues , Perspective and Process of assessment


Reading : Handouts
Case : XYZ Limited BOOT project on Power Sector ( 3)
10 Retail Assets – Products – Descriptions, Pricing and Assessment Process
Reading : Handout
Case : Different products to be offered to an individual based on data provided (4)
11 Managing Investment Portfolio and Policy Guidelines;
Managing the Cost of Funds, Bank capital and Liquidity
Reading : “Bank Management” – Koch and Macdonald
12 Interest Risk Management of Banks;
Asset Liability Management of Banks;
Regulatory issues associated with Asset Liability Management of Banks
Reading : Bank Management – Koch and Macdonald
Reading : Hand out

13 Different methods of Managing Interest Rate Risk Management


Use of Interest Rate Derivative to manage the Interest Rate Risk
Reading : Bank Management – Koch and Macdonald
Reading : Hand out
14 & 15 Market Risk Management – VAR Model ; Montecarlo Simulation and Measurement
of Risk Capital to cover market Risk ; Development in Other Countries post 2007
Basle accords and Road to go
Reading : Handout ,BIS Paper, Value at Risk- Philip Jorion
16,17 &18 Credit Risk Management – Modeling Credit Risk ; Different types of Methodology
( Half Class)
prescribed by BIS and Regulator . Present Situation ;
Case : Credit Risk Modeling of a Bank Portfolio
Reading : Handout, Bank Management – Koch and Macdonald Credit Risk – Duffy,
18 ( Half class ) Operational Risk Management – Issues, Methodology and Modeling Operational
& 19
Risk ;
Reading : :Handout

20 Basle II and Issues


Reading : Handout

Session Plan :

Serial No Session No Name


1 1-20 Praloy Majumder

33
Recommended book :
Banks and Financial Services – Latest Edition – Peter Rose - TMG

Evaluation :

Midterm/Quiz : 30%

Project : 30 %

End Term : 40%

12. OPTIONS, FUTURES & DERIVATIVES (FI-254)

Course Title: Options, Futures and Derivatives


Instructor: Prof. B.B.Chakrabarti (PTVF)

Course Objectives
The objectives are to comprehend various types of financial derivative instruments, their pricing and
application for hedging and risk management, and to illustrate the application of derivatives and risk
management principles through case discussions, problem solving and use of software.

Session Topic Readings

1 Introduction to Derivatives / Mechanics of Futures Markets Chaps 1 & 2


Chaps 3 & 4
2 Hedging Strategies using Futures, Interest Rates
Chap 5
3 Determination of Forwards and Futures Prices
Chap 6
4 Interest Rate Futures

5 HBS case: Application for Financial Futures Case 9-286-109


Chap 7
6 Swaps
Tutorial
7
Quiz I
Chaps 8 & 10
8 Mechanics of Option Markets and Trading Strategies

9 Exercise on Trading Strategies


Chaps 9 & 27
10 Properties of Option Prices, Martingales
Chap 12
11 Weiner Process and Ito’s Lemma
Chap 11, 13
12 Option Pricing - Binomial Trees & BSM Model

34
Chap 13
13 Option Pricing - BSM Model & Heston Model
Chaps 15 & 16
14 Options on Stock Indices, Currencies and Futures

15 Tutorial
Chap 17
16 The Greek Letters
Chaps 20, 21 &
17 Value at Risk, Volatility Estimation and Smiles 18
Chap 24
18 Exotic Options
Chaps 14 & 25
19 ESOPS, Weather, Energy and Insurance Derivatives
HBS Case: Goldman Sachs & Co. Nikkei Put Warrants -
20 1989 Case 9-292-113

Quiz II

Text Book:
1) Options, Futures and Other Derivatives by John C. Hull – 7th. Edition
2) Students’ Solution Manual for Options, Futures and Other Derivatives by John C. Hull – 7th.
Edition

Assessment Method:
Quizzes (2 nos.) – 20%
Mid-term – 40%
End-term – 40%

13. FIXED INCOME MARKETS (FI-255)

INDIAN INSTITUTE OF MANAGEMENT CALCUTTA


Post Graduate Diploma in Management

Course Name Fixed Income Markets (2nd Offering)


Term PGP II, Term V, AY 2016-17
Name of Course Coordinator Prof. Vivek Rajvanshi
Name of the Instructors Prof. Vivek Rajvanshi
Objectives and Scope:
Fixed income markets have grown rapidly in the last two decades and captures about two-thirds share of the capital market.
Commercial and cooperative banks, primary dealers, insurance firms, Pensions funds and Debt Management and Mutual funds
are the main participants in these markets. The objective of this course is to provide anoverview and understanding of basic
concepts related to wide range of fixed income instruments and interest rate derivatives. Gradually students would
learnaboutvarious types of bonds and interest rate derivative securities, fixed income portfolio construction, monitoring,
valuation and risk management. After completing the course students will be conversant with:
 Types and characteristics of fixed income securities and derivatives
 Working of the International and Indian fixed income market
 Valuation of bonds and yield curves
 Determining the price and credit risk and risk mitigation techniques
35
Text Book
1. Bond Markets Analysis and Strategies, 8th Ed.by Frank. J. Fabozzi, Published by Pearson Education Inc.

Suggested Readings:
2. Fixed Income Markets and Their Derivatives, Third Editon, By Suresh Sundaresan, Academic Press
Advanced Finance Series.
3. Fixed Income Analysis (CFA Institute Investment Series, 2nd Ed.) by Frank. J. Fabozzi, Published by
John Wiley & Sons, Inc.
4. Bruce Tuckman, 2002, Fixed Income Securities: Tools for Today's Markets (2nd Edition), John Wiley &
Sons, Inc.

Evaluation:
Quizzes: 20 Marks
Group Assignment 30 Marks
End-Term Examination: 50 Marks

Session Topic(s)
1-2 Introduction to Fixed Income Securities Market
1. Features of Money Market and Debt Securities
2. Risk Associated with Investing in Bonds
3-4 Overview of Bond Sectors and Instruments
1. Sectors of the Bond Market
2. Primary and Secondary Market for G-Secs
3. Auctions, When Issued Markets
4. Market Conventions and Compounding Rules
5-6 Valuation of Fixed Income Securities
1. Valuation of Bonds
2. Valuation of Bonds with Embedded Options
3. Liquidity and Credit Risk Premium
7-8 Term Structure of Interest Rate
1. Yield Measures
2. Spot Rates
3. Forward Rates
4. Zero Coupon Yield Curve (ZCYC)
5. Bootstrapping to Derive Spot Curve
9-10 Measuring the Price Risk
1. Duration
2. Convexity
3. Treasury Trading Strategies
11-12 Interest Rate Derivatives and Their Valuation
1. Interest Rate Futures Contracts , Hedging with Bond Futures
2. Interest Rate Swaps
3. Repo Transaction
13-14 Bond Portfolio Management – I
1. Bond Market Indices
2. Interest Rate Indices
3. Measuring Portfolio Risks
4. Monitoring and Adjusting

36
15-16 Bond Portfolio Management - II
1. Portfolio Immunization and Cash Flow Matching
2. Controlling Interest Rate Risk with Derivatives
17-18 Value at Risk Models
1. Measuring Risk , Historical Simulation
2. Implementation of VaR in BASEL Framework
19-20 Credit Risk Management
1. Credit Ratings
2. Credit Risk Models and Derivatives
3. Credit Risk Management

14. INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT (FI-262)

Indian Institute of Management, Calcutta


Post Graduate Programme 2016-2017

Course Name Investment Analysis and Portfolio Management (2 nd


Offering)
Term PGP II, Term V
Name of Course Coordinator Prof. Vivek Rajvanshi
Name of the Instructors Prof. Vivek Rajvanshi
Course Objectives
The objective of this course is to introduce the intuition and concepts of Investment analysis and portfolio management. Two
broad decisions have been taken by any investors: allocation of the total investment in available asset classes and how to select
the assets within asset classes for investment. The decision of allocation and selection of investment assets is based on the
trade-off between risk and return, availability of the risk mitigating tools and investment horizon with other parameters. The
aim of the course is to provide the theoretical underpinning of the subject with the implications in the real world. The course
will help the participants in developing skills required to conduct assessment of current issues covered by media and
specialized journals.
Session Plan:
Session Description Readings
Session 1-2 Introduction to Investment Environment & Market Microstructure Ch 1 to 4
Session 3 to 6 Portfolio Theory and Practice Ch 9 to 13
1. The Capital Asset Pricing Model
2. Arbitrage Pricing Theory
3. Empirical Evidence on Security Returns
4. The Efficient Market Hypothesis
Session 7-10 Security Analysis Ch 17-19
1. Macroeconomic and Industry Analysis
2. Equity Valuation Models
3. Financial Statement Analysis
Session 11 4. Technical Analysis
Session 12 Case 1: Dimensional Fund Advisors HBS: 9-212-068
Session 13-17 Applied Portfolio Management Ch 24-27
1. Portfolio Performance Evaluation
2. International Diversification
3. Hedge Funds
Active Portfolio Management
Session 18 Case 2: Leland O'Brien Rubinstein Associates, Inc.: Portfolio HBS: 9-294-061
Insurance

37
Session 19-20 Project Discussion/Presentation

Recommended Text:
“Investments” Tenth or latest edition (SIE)-Bodie, Kane, Marcus &Mohanty, Mc Graw Hill, Education
(India), 2015
Evaluation Method
Quiz (2 nos.) 20%
Group Assignment 30%
End-term 50%
After evaluation all of the above components but before grading, the total marks obtained by a student will be rounded up to
the nearest integer. For this purpose any fraction greater than equal to 0.5 will be rounded up next higher integer. For example,
5.5 will be rounded up to 6 while 5.4 will be restated as 5.

15. CORPORATE RESTRUCTURING (FI-265)


Course Name Corporate Restructuring
Term PGP II, Term IV
Name of Course Coordinator Prof. Ashok Banerjee
Name of the Instructor Prof. Ashok Banerjee

Objectives

The objective of the course is to aware students about the various strategic ways to achieve superior
corporate performance. Many Indian companies have adopted “maximising long-term shareholder value”
as the central corporate objective. Enhancing long-term shareholder value involves managing costs,
driving margins, managing capital structure, and inorganic growth through acquisitions and divestiture.
The course would start with cost management issues- making students aware that cost consciousness is
vital to sustain profitability. Then it would discuss several value creating strategies- creating shareholder
value to unlocking shareholder value. Finally, we would study the linkage between employee
performance and corporate objective- how employees can be motivated to act as owners.

Session Plan:
Sessio Description
n
1 Shareholder Vs. Stakeholder Theory
Agency theory and problem of free cash flows
Excess capacity problems
Essence of Corporate Restructuring
Strategic Control Map
Readings :
a) Agency costs of Free Cash Flows, Corporate Finance and takeovers
b) Value maximizations, Stakeholder Theory & the corporate Objective
c) Petroleum after the mega mergers
d) Bank of America round table on Corporate Finance
e) U.S. Corporate Governance: Accomplishments and Failings
2 Balance Sheet Restructuring:
Asset Restructuring
Modes of asset disposition
Readings :
Institutional Trading, information production, and the choice between spin offs, carve-outs,
38
and tracking stock issues

3 Balance Sheet Restructuring:


Recapitalization
Share buy back and corporate performance
Indian experience
Who gains & who loses in share repurchase program
Stock splits –Information content
Readings :
a) Is a share buy back right for your company?
b) Evidence on how companies choose between dividends and open market stock repurchases
c) Share repurchases as a potential tool to mislead investors

4 Economic value Added (EVA) and shareholder wealth


EVA measurement
Drivers of EVA
Relationship between EVA and Market value Added (MVA).
Readings :
a) Linkage between economic value added and market value : an analysis
b) EVA and divisional performance measurement : capturing synergies and other issues
Case : The continuing Transformation of Asahi Glass : Implementing EVA ( HBS 9-205-030)
5 Corporate Debt restructuring
Sustainable Growth and sustainable debt
Leveraging assets to raise capital
Readings :
a) RBI guidelines on Corporate Debt restructuring
b) How Vishal Retail went off the shelf
c) Exercises on Securitization

6 Corporate Debt restructuring:


An exercise on Debt Restructuring

7 Basics of business valuation


Readings :
a) Business valuation : a primer
b) An introduction to cash flow valuation methods ( HBS 9- 295-155)
c) Principles of Valuation
d) The valuation of closely-held companies in Latin America

8 Basics of business valuation


Case: Valuation of Airthread Connections (4263-PDF-ENG)
9 Valuing synergy in M&A deals
Readings:
a) Can you run harder? Synergy
b) Do you feel lucky? The acquisition Premium
10 Determination of swap ratio of M&A deals
Factors behind structuring of purchase considerations
Case:
Monmouth, Inc. (4226)
11 Takeover Valuation: Justifying Premium
Method of payment and firm performance
Case: Gulf Oil Corp.- Takeover ( HBS 9-285-053)
12-13 Financing M&A
39
Deal Structuring in M&A
Risk Management in M&A
Readings :
a) Stock or cash?
b) Technical Note on structuring and valuing incentive payments in M&A: Earnouts and other
contingent payments to sellers (UV 0465, V2.5)
c) What determines the financing decision in corporate takeovers: Cost of capital, agency
problems, or the means of payment?
Case: The MCI Takeover Battle: Verizon Vs. Qwest (HBS 9-206-045)
14 Risk Arbitrage in M&A
Readings :
a) A note on risk arbitrage (HBS 9-203-001)
b) Price Pressure around Mergers
15 Regulatory Issues in M&A:
How important is accounting issues in M&A?
Readings:
a) Accounting for mergers and acquisitions ( HBS 9-101-021)
b) Sweeping Changes in world wide M&A Accounting
16 Regulatory Issues in M&A:
Taxation issues
SEBI Takeover code- implications
Takeover defense
Readings :
a) Takeover defenses
b) SEBI regulations on Takeover
17 Corporate takeover battle: Indian experience
Divestitures
Readings :
a) Sell –offs and Diversification
b) Note on Sum-of-the-parts valuation (HBS 9-209-105)
c) Restructuring through spinoffs
Case: L&T
18-20 Project Presentations

Reference Text:

1. Rappaport Alfred, Creating Shareholder Value- The New Standard for Business Performance; The
Free Press, New York, 1986.
2. Stewart Bennett G III, The Quest for Value; Harper Business, 1991.
3. Stern Joel (ed), The Revolution of Corporate Finance; Blackwell Business, 1998.

Pedagogy

The course would be conducted through lectures, case discussions, and illustrations. Reading materials
would be provided in polycopy and hence there is no prescribed text. However, students may refer to
journals (e.g. Mckinsey Quarterly, Harvard Business Review, Journal of Applied Corporate Finance, and
Financial Management), CMIE’s monthly bulletin (Mergers and Acquisitions) and reference texts
(mentioned above).

40
Evaluation Method

Quiz 30%
Class Participation 10%
Project 20%
End-term 40%

16. FINANCIAL RISK MANAGEMENT (FI-283)

Course Title- Financial Risk Management


Course Overview:

Course Outline (30-Hours)

Area : Finance & Accounting


Term : PGP II, Term V (2016-2017)
Visiting Faculty : Mr. D.N.Mukherjee
Course Coordinator: Prof. Ashok Banerjee

Course Objectives

Recent global experience suggests that while separate risks (market, interest, liquidity,
currency and credit)are reasonably well understood at a transaction level, same understanding
was lacking with respect to interaction and aggregation of such transaction level risk at balance
sheet level. The function of risk management is assuming an increasingly central role not only
in financial institutions but some of those some tools are increasingly getting used by
corporates for their risk management.

The objective of the course is to help studentsidentify measure and manage risk as faced by
major Organisations such as Banks or corporates. The Course starts with focusing individual
risk and howthey all add up at a corporate/strategic wide level. Specifically how Chief Risk
Officer’s (CRO)(common these days even in non-banking corporates) may view and act of such
risk.Apart from discussing transaction level risk, the course discusses tools and techniques to
aggregate risks at level of balance sheets. Understanding of basic aspects of
options/future/derivatives is essential for these course. A quantitative aptitude may be
beneficial in developing a better grasp of some of the quantitatively more involved topics that
will be discussed in the course.

41
Pedagogy

The course would be taught in a lecture/classroom framework/ laboratory work/Case Study.


Apart from the text book a selection of reading materials will be provided. The Class lectures
will use a combination of powerpoints as well as demo/illustrations based on excel.

Prerequisites

Understanding of basic concepts of derivatives and reasonable quantitative oreintation

Textbook
Risk Management and Financial Institutions by John C. Hull

Session Plan

1 Topics Introduction to Risk Management: Definition of Risk and Brief History of Risk and
Development of Risk Management Practices,

2 Topics Performance-Based Risk Measure : Risk Typology


3 Topics Market Risk: Variance-Covariance Approach; Sensitivity of Portfolio market factors;
Mapping of Risk Position

4 Topics Market Risk::Value at Risk- Alternate Approaches, Shortcomings, Usage


5 Topics Market Risk: Extreme Value Theorem, Power Curves
6 Topics Market Risk: Exercise using resources at the Finance Lab

7 Topics Market Risk: Group Presentations on Findings of lab Exercise


8 Topics Interest Rate Risk: Repricing Gap Model; Duration Gap Model;Cashflow Mapping;
Internal Transfer Rates
9 Topics Interest Rate Risk: Transaction level as well as aggregated Balance sheet level exposure
to interest rate risk. Measurement and Mitigations using hedging.

10 Topics Liquidity Risk

11 Topics Operations Risk

12 Topics Model Risk

13 Topics Foreign Currency Risk Management: Corporate Perspective

14 Topics Case Study: JP Morgan

15 Topics Commodity Risk Management: Basics of Commodity Prices


42
16 Topics Commodity Risk Management: Producers/Users/Suppliers hedge
17 Topics Corporate Value at Risk; Earnings at risk
18 Topics Strategic Risk Management
19 Topics Enterprise Risk Management

20 Topics Event Risk/Black Swans/ Sustaining Organizations

Reading materials: Risk Management & Financial Institutions by John C. Hull.


, Other Material will be provided before.
Evaluation Scheme: Class participation: 10%; Laboratory Work & Presentation: 10%; Two Quiz :20% Each: Final Written
Examination 40% (No Mid term)

18. CAREER ADVANCEMENT STRATEGIES (HR-229)

Course Name and Code: Career Advancement Strategies, HR 229

Course Instructors, office addresses and extensions

Prof. Renuka Hodigere, Office: M Block, Room No. 105, Ph. Ext. 766

Course Objectives

Networks hitherto constrained by geography and society are now virtually without limits. Hence, they have become pervasive
in every aspect of life. With advances in technology, long dormant network analysis theory is making inroads into creating an
understanding of how human beings operationalize living in a collective.

While networks, thus far, may have had stronger social rather than professional connotation; its impact on professional life is
undeniable. If the workplace is a microcosm, networks are the pathways along which life is enacted there. Therefore, it is vital
to understand the workplace as the network that it is and implications of its configuration and composition on careers.

Networks serve as conduits of resources in organizations. The position of individuals in their networks and the very structure
of their network can define the paths in which their careers unfold. Network ties and contacts have been found to impact what
opportunities become available to an individual, availability of resources to perform during such opportunities, accessibility of
firm specific-knowledge, compensation and overall career trajectory.

Therefore, it is important to understand fundamental characteristics of networks as well as the ways in which individuals can
actively utilize networks for their benefit.

Course Duration and Pedagogy

It is a 3 credit course. The course would involve a mix of lectures, exercises, case discussionsand projects.

Course Reading Materials

Understanding social networks: Theories, concepts and findings. Charles Kadushin.

43
Lecture Schedule

Session No. Topic Description


1 Research participation Complete a personal network survey
Introduction to the different types of network and their
2 Types of Networks:
characteristics
Network structure Introduction to the concepts of holes, bridges, gateways
3
and other components of network structure
Discussion on the concept of “networking” – what is it? Is
4 Creating networks
it possible to be deterministic about it?
Discussion on the different types of people that could
5 Network composition comprise a network and how these different types of
people affect different outcomes
Understanding how the different types of people who
Behavioural antecedents of network
6 comprise your network enter your network and stay in
maintenance
them
Principles behind network evolution e.g. preferential
7 Evolution of networks attachment; the dynamics of changes in the composition
and structure of networks
Understanding how network structures and your location
8 Resource flows and networks in the network can affect acquisition and utilization of
resources in organizations
How is the perception of “you” affected by your
9 Social categorization and networks
associations? Can you manage it, if yes, how?
How can you harness your network to create outcomes? Is
10 Creating change through networks it merely about the number of “friends” in your social
network?
Using networks to influence outcomes that are not directly
11 Networks and influencing outcomes
under your control.
How to get the job you want, if it is not the job that is
12 Networks and the job search
available?
Understanding the ways in which “who, how and how
Using networks for effective
13 much you know” people in organizations can affect
performance in organizations
perceptions of your performance
Influence of networks on Can networks affect what you earn? How can you leverage
14
compensation your network to improve your income?
How can you use your network to understand where you
15 Career advancement and networks want to take your career? Whom should you know to get
to where you want to go?
Network structures and constituents of not-for-profit
Network effects on organizational
16 organizations. How do not-for-profit- organizations
performance in the social sector
leverage networks to enhance their performance?
Organizational innovation and Understanding the dynamics of mimetic isomorphism at
17
networks the organizational level
Discussion on the various effects of network constituents
18 Networks in entrepreneurship and structure on new ventures. Can networks make or
break a new venture?
19 Research participation Complete a personal network survey
20 Student presentations

Evaluation

Evaluation component Weight (%)

Completion of personal network survey 20

44
Individual network analysis 20

Surprise quizzes (2) 10

Announced quizzes (2) 40

Case Analysis 10

19. INTEGRATED MARKETING COMMUNICATION (MK-211)

Integrated Marketing Communications (MK 211)


Course Outline Term V Academic Year 2015-16
Course Instructor: DP Ghosh (+91 98302 98979; ghoshdp@gmail.com)

I NTRODUCTION

The fourth P of marketing – Promotions – has metamorphosed in the past two decades to encompass a variety of
consumer contact activities and communication techniques. It is now termed “Marketing Communications” and goes
much beyond one-way communications such as advertising.

In the hyper-competitive marketplace of today, Marketing Communications have a critical role to play in the success
of brand marketing. Even the best of products cannot succeed in the marketplace without strategic and tactical
support from marketing communication activities.

New techniques for customer contact and involvement have evolved. New media are available. There is increasing
emphasis on evaluating marketing communication activities on a regular basis to ensure financial accountability. It
is no longer enough to advertise using mass media, with the occasional promotional offer to achieve quarterly sales
targets. The focus is on ‘Consumer Connect’, with successful brands making best use of every consumer ‘Touch Point’
to involve the prospective buyer, to start a dialogue and take it further…

A IM

The course aims to prepare students to apply the techniques of marketing communications to launching, building
and nurturing branded products. It will be useful for the taking forward the concept of brand management, to make
a success of both manufactured goods and services.

L EARNING O UTCOMES

At the end of the course, students should be able to:

 Understand how marketing communications influence consumer buying behaviour


 Comprehend the different roles of the various forms and techniques of marketing communications in the
context of brand marketing strategy
 Appreciate the strengths and weaknesses of various media channels
 Comprehend the role of research in marketing communications and how it can reduce the probability of
wastage of resources while optimizing the benefits of the campaign
 Prepare communications strategy plan comprising the objectives of the campaign, positioning the brand,
selection of communication techniques and media channels and preparing a “creative brief”.

45
The course focuses on the strategic aspects of marketing communications, and will not deal in detail with
creative aspects (such as development of copy or visuals and art).

Textbook

“Advertising & Promotion: An Integrated Marketing Communications Perspective” by


George Belch & Michael Belch (Tata McGraw Hill)

Suggested reference books


1 Brand Positioning 2nd edition – Subroto Sen Gupta (Tata McGraw Hill, 2005)
2 Successful Sales Promotion – Pran Choudhury, Ricky Elliot & Alan Toop (Orient Longman)

C ASES

Cases for discussions and evaluation will be made available in due course.

P EDAGOGY

A combination of concept elaborations and case discussions will be used to enable participants to comprehend the
issues that comprise marketing communications.

It is expected that students come fully prepared to each session and participate actively, to enable enhanced learning
for all students.

C OURSE ASSIGNMENTS

Students need to form groups for case presentations and group assignments. It is expected that all members of a
group contribute to, and participate in, such assignments.

Case studies

Participants are expected to contribute to case discussions in class. Students will be informed in advance of the cases
that would be part of the evaluation, which are likely to be group assignments. The groups would have to submit a
soft copy of the analysis of the problem, identification of the marketing issues, (alternative) solutions and
recommendations with reasons. This would have to be submitted prior to the case discussions in class.

Group Project / Term Paper

The projects would entail an analysis of the marketing communications strategy or programme of any organization,
including identification and evaluation of the key marketing issues. It should be a critical evaluation of the
communications programme, rather than a mere description.

Some of the issues that might be studied are: At whom is this communication targeted? What is the brand concept…
how is it being positioned in relation to customer needs and competitive offerings? What else could be done to
improve the probability of success of the brand communications?

Alternatively, Term Papers could be written on a topic of contemporary importance in the area of marketing
communications.

All topics for projects / term papers would need prior approval by the faculty.

E VALUATION

Group Project / Term paper 25%


46
Class tests / quizzes 20%

Case analysis 20%

End Term Examination 35%

Total 100%

Course Schedule
Textbook
Session Topic Readings
Chapters

1
IMC: concept, communication mix, role at different stages
of PLC
2
Marketing Communications Processes, Consumer
Response models
3
Overview of brands and, brand communications strategy &
cases *
4
Overview of brands and, brand communications strategy &
cases *
5
Basis of strategic planning: USP, Brand Image and Brand
Personality; Positioning
6
Strategic planning: objective determination, models

7
Overview of the creative process

8
Advertising research and evaluation of campaign
effectiveness
9
Media channels & their characteristics

10
Overview of media planning & evaluation (1)

11
Overview of media planning & evaluation (2)

12
Marketing communications budgets; B2B communications

13
Sales Promotions and cases

14
Marketing Public Relations

15
Personal Marketing: Relationship Marketing and Direct
Marketing
16
Sponsored Events, Exhibitions & Trade Fairs,
miscellaneous media
17
Brand Identity, Packaging & Retail Media

18
Digital, Social & Interactive Media

19
Project Presentations

20
Project Presentations

47
* Sessions 3 and 4 to be taken by guest speaker from industry.
The details of the topics are indicative… minor modifications may be incorporated prior to the start of the course in
Term V.

20. SALES AND DISTRIBUTION MANAGEMENT (MK – 212)

Course Code: MK 212; 3-credit course

PGDM Term V

Instructor: Prof. Sanjeev Varshney


Email: sanjeevvarshney@xlri.ac.in

OBJECTIVE

The objective of the course is to provide a customer centric approach to the sales and distribution
function. The customer centric approach helps in (a) integrating advertising, salesforce and channel
members by building non-conflicting and non overlapping routes to fulfill the needs of the consumer and
(b) developing frameworks for decision making keeping the customers as the primary focus. The
course will use Indian environment as the backdrop but will also draw from
international experiences whenever needed. The perspective will be effective
managerial decision making in these areas.

After going through this course, the participants are expected to:

1. Understand the roles and responsibilities of the Sales Managers


2. Manage and enhance the sales force productivity and performance
3. Plan and implement an effective sales strategy for their organizations.
4. Design and implement distribution channel strategy.
5. Manage the Channels efficiency and effectiveness; wholesaling, and retailing.

EVALUATION
Mid Term: 20%
Assignments: 15%
Group Project: 25%
Phase I: One Page write up
Phase II: Project Report
Presentation: Session 19 & 20
Final Exam 40% (Subjective Exam)
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TEXT BOOK
 Sales Management- Analysis & Decision Making –Johnston & Marshall (Tata McGRAW Hill
9th Edition, India Edition
 Marketing Channels- Louis Stern, Adel El Ansary, Coughlan, Anderson & Natarajan (Pearson-7 th Edition)
[SAAN]
 Other Readings: Handout

PEDAGOGY
Pedagogy for this course will be a mix of lectures, group work, role play; class exercises case studies and
class participation based on reasoning.

To benefit from this rich mix of pedagogical tools, the students are required to go thru the given readings
and cases for each class.

PROJECT
Option 1: Students are expected to choose a company in groups of 5-6 and do thorough analysis of its
marketing and sales and distribution strategies. The objective of the same will be to appreciate the link
between the two and if the chosen company has been able to establish that or not and if not what are the
suggestions from your side. This should be like a review paper based on both secondary and primary data
collected by the group.

Option 2: Groups are expected to critically comment on the sales force management & channel
Management of any one company. As far as possible the data should be collected via means of interview
with the company officials and survey of dealers and distributors of the respective company. The Project
report should have commentaries on the following:
1. Sales management:
a. Sales Organization
b. Recruitment & Induction Process
c. Territory allocation Process & Strategy
d. Reporting structure and systems
e. Compensation structure
f. System of Evaluation
g. Training & Development
2. Channel Management
a. Channel environment
b. Channel strategy
c. Channel Design & structure
d. Managing the channel members and conflict
e. Appraisal and evaluation of channel members

In your Project Report please ensure to have the following sections:


1. Disclaimer
2. Introduction
3. Objective of the study
4. Methodology
5. Description of the Sales & Distribution System of the company
6. Analysis/critique
49
7. Recommendations, if any
8. Limitations

Project will be evaluated on the content/coverage, flow, originality, quality of critique and analysis.
Groups should take care that they submit original work.
Each group is expected to give a one page write up on project they want to undertake by 4 th session. This
should include the details of the company as well.

50
COURSE OUTLINE:

MODULE 1: Sales Management

Session In Class
Topic Readings
No. Activity
1 Introduction to Sales Chapter 1 of Text Book Discussion
& Distribution
Management
2 Personal Selling Chapter 2 of Text Book Role Play
Process-I Readings: Understanding Selling
What makes a Good Styles Using
Salesperson (HBR Article) Transactional Analysis
Note on Transactional
Analysis
3 Personal Selling Case Discussion: Siebel
Process-II Systems: Anatomy of a
Sale
4 Sales Planning & Chapter 5 of Text Book Lecture & In-class
Forecasting Exercise: Catchment
Analysis & Market
Mapping
Assignment 1
5 Managing Sales Chapter 5 of Text Book Exercise: Designing a
Territories & Quotas Sales Territory
6&7 Sales Training, Chapter 6-11 of Text Book Discussion
Motivation & Exercise: Designing
Compensation Sales Incentive Scheme
Case: Anupama
Cosmetics
8. Evaluating & Chapter 12 of Text Book Lecture, Discussion &
Controlling Sales Role Play: A Theatre
Performance Exercise: Billie Daniel
Assignment 2
9 Sales Organisation Chapter 4 of Text Book Discussion &
Structure Case Discussion : Komal
Food Products Company
Ltd.
10 Guest Speaker from Industry

MODULE 2: Distribution Channel Management

Session In Class
Topic Readings
No. Activity
11 Distribution Channel [SAAN] Lecture and Discussion
Management Readings:
1. Distribution Policy
51
2. Strategic Issues in
Distribution

12 Marketing & Case: Safari Batteries


Selling:
Interrelationships
13 Channel Design: [SAAN] Case Discussion: Dell
Key Issues Reading: Computers
1. Designing Channels of Exercise: Designing
Distribution Channels
2. Reorienting Channels
of Distribution
14 Managing Channel Readings: Channel Conflict: Case Discussion:
Relationships When is it dangerous? Managing Channel
Conflict/ Clogging of the
Channels
15 Wholesaling, and [SAAN] Case Discussion:
Retailing-I Reaching the Bottom:
Uniglobe’s small local
stores dilemma
Exercise: Choose the
Right Party
Assignment 4
16 Wholesaling, and [SAAN] Exercise: Calculating
Retailing-II ROI of a Distributor
Discussion: Based on
Small Caselets
Assignment 5: Gino SA:
Distribution Channel
Management

17 Non-store retailing Case Discussion: Mary


and electronic Kay Inc.
channels
18 Guest Speaker from Industry

19-20 Group Field Project Presentations & Course Wrap Up

21. PRODUCT MANAGEMENT(MK – 218)

Course Instructor: Prof. Ramanuj Majumdar


Faculty Office: A 210
Cell no.94331 -83823
email: ramanuj@iimcal.ac.in

Objective
The basic task of any company is to manage its products and services. In many packaged goods
companies, the person in charge of this activity has the designation of Product Manager. Traditionally the
product manager’s essential job was to (i).analyse the market; (ii) develop suitable Product or Service for

52
the target segment; (iii) make decisions about advertising, promotions, channels of distribution, pricing,
after sales service etc.

However, of late the product manager’s job has become increasingly complex. Among many factors, it is
due to intense global competition, rapid obsolescence of product due to advent of superior technology,
adoption of new communication technology and in particular, growth of cellular phones, Internet and
Social media and overall changing consumer aspirations. All these factors are together known as “new
market environment”. The purpose of this course is to provide an overview of how a product manager
deals with these diverse issues.

Course Focus
This course will provide a forum to discuss various background concepts like brand building, positioning,
creative advertising and endorsement to influence consumer decision making, innovative promotion &
pricing decisions, Product Portfolio analysis & elimination rules. The course shall take up a number of
real life New Product/ Brand Launch decisions in India.

Professor shall share his varied experience and research evidences about how host of products are
marketed in the Indian Market.

Contents
1. Introduction to Product Management
2. Indian Market & its recent Trends
3. Key Issues of Brand Building & Future of Branding
4. Category Attractiveness Analysis
5. Competitor Analysis
6. Customer Behavior Analysis
7. Managing Channels of Distribution (Retail and Modern Trade) in India
8. Pricing and Promotion Decisions
9. Media Scenario and Creative Advertising Decisions
10. New Product Launch
11. Managing Products in Rural Market
12. Product Portfolio and Elimination Strategies
13. Marketing Metrics & Financial Analysis of Product Management

Group Assignment
Form a Group with maximum five Members (from the students who finally Register for
this particular Course)

1. Choose any topic of Product Management & present it class


2. Choose any one of the following Themes/ issues & present it in class

Preface
Indian market is known for its diversity. It invariably offers enormous opportunities as well as challenges.
With gradual opening up of its economy several MNCs (multinational companies) have entered Indian
market. However, only those companies were successful which adapted their Marketing Programs to
meet local market conditions. Many products/ services failed because they blindly followed their
traditional marketing strategies that did not work in a diverse country like India. It is now widely
acknowledged that the unique social & cultural characteristics, traditions and dynamics of consumer
behavior in India demand a different Product Strategy for achieving success.

Secondly, the rise of new economic powers, faster integration of the world economy and the growing
power of information technology have already triggered dramatic changes and it is likely to transform the
53
global landscape in the coming years. A gigantic shift is taking place today in the global economy
because of the growing clout and sudden burst of emerging markets in the world economic scenario.

Thirdly, it is fact that emerging markets have brought about a metamorphic change in world trade. Their
share of the total merchandise exports is growing. Today they account for 20% of the world economy and
in the foreseeable future it is projected to constitute 50% of world market. Already over 70 Fortune 500
firms are from the emerging economies.“A new breed of world class companies” from these economies is
expanding their global operations fast through mergers and acquisitions.

Against these backdrops, companies respond to the new marketing opportunities in India or for that
matter, in any “Emerging Market” and prepare for tomorrow’s global competitive challenges.

Group Assignment: Your Group may choose any of the following themes or issues.

1. Branding, Distribution and Communication Strategies. Examine issues relating to product


innovation, advertising and distribution strategies, in addition to focusing on newer organized
retailing formats in markets like India, China etc.
2. Operating in Rural or the Bottom of the Pyramid. Concepts of effective demand creation and
tapping every potential customer must find a place in marketing campaigns. What are the
innovative marketing strategies (say, small size packaging, simple product design, lower unit price
etc.) to reach out to the rural or bottom of the economic segment of a market? How should the
companies increase market size for fast moving consumer goods (fmcg) and personal or family
used durables in India? How will they capture the hitherto neglected class of customer segments
in semi-urban locations or those at the bottom of the pyramid? Alternatively, should there be a
new form of marketing practice (say, public-private partnerships) to reach out to the remote corner
of the Indian market or vast number of people who are at the bottom of the pyramid? Examine
alternative styles of tapping such segments of a market with suitable Product Market examples.
3. Marketing in Emerging Markets. Companies often treat the emerging markets as if they are an
extension of their business, a source of incremental revenues for existing products and services.
This strategy at times failed in the case of emerging markets. What are innovative ways of
marketing to be kept in mind while entering emerging markets? What are the lessons learnt from
the successful marketing strategies of companies in the emerging markets?
4. Competitive Strength of Emerging Markets. Emerging markets are becoming regional
economic powerhouses with a large population, substantial cumulative resource base and
potential markets. Many local companies in such countries have demonstrated their marketing
competence and are fast becoming world class marketers. Ascertain the growth path of such
companies and what are the new competitive challenges they offer in the changing global
economic landscape?

5. Premium Brand Marketing. With growing economic affluence, emergence of nuclear family
and in general, consumer aspiration, market for luxury products or premium brands are becoming
significant size in countries like China, South Asia and Central Asia. What are the innovative
marketing programs required to tap this growing market? How should the marketers compete with
global players in these growing premium product categories in markets such as India, China and
far Eastern countries?
6. Cross-Cultural Issues. The cross-cultural issues will provide more challenges and opportunities
in emerging markets. There are many issues like culture impacts on marketing (domestic versus
global) operations, cross-cultural dimensions of marketing research, cross-cultural aspects of
marketing- mix strategy. Ascertain cross- cultural issues for marketing success.
7. Trends and Challenges in Service Marketing in India: What are the emerging trends in the
service industry such as Domestic Tourism, IT enabled services, Educational Services, Financial

54
Services and a variety of other services that are growing fast in India. What opportunities do they
offer and what challenges are faced by the service industry?
8. Dynamics of Consumer Behaviour: Issues related to consumption behavior patterns, influence
of cultural, social and economic factors and the power of media mix in exploiting urban and rural
market opportunities.
9. The rising power of China in the Global Market: China has become the production hub of
many products. What are the lessons to be learnt for the success of Chinese companies? Have they
succeeded in making local product adjustments, managing risks and new product failures? What
tectonic shift is likely to take place because of the emergence of such new super powers?
10. Ethical Issues: With increased transnational corporate activity across the globe, matters of ethical
corporate conduct have assumed a new significance. What are the ethical issues to be addressed
by the corporations in emerging markets?

Individual Assignment
PRODUCT MARKET ANALYSIS
Choose any Product. Examine the following issues with relevant latest information.
i. Current market Size & key trends;
ii. Segmentation of the market;
iii. Consumer Behaviour pattern noticed in that product buying;
iv. Positioning of different brands in that product category;
v. Key communication and promotion strategy adopted by leading brands;
vi. Marketing Strategies adopted by key players.
You have to write a report (maximum 20 page length) on how that particular product is managed in
India. Also, develop suitable PPTs covering all aspects of your Analysis.

Evaluation Criterion : Grade will be awarded on the basis of the following components : -
1. Class Participation: 20
2. Select Topic Presentation: 20
3. Theme Analysis & Presentation: 30
4. Individual Assignment (Product Analysis): 30

Reference:
1. Product Management in India; Ramanuj Majumdar, 3rd Edition; Published by Prentice Hall of
India 2008
2. Product Management : Donald R. Lehmann & Russel S. Winer, 4th Edition, Published by Irwin,
2009
3. Consumer Behaviour : Insights from Indian Market; Ramanuj Majumdar, 1st Edition; Published by
PHI Learning 2010

22. STRATEGIC MARKETING (MK-219)

Dr. Ashish K. Banerjee


(A-Block, Room No. 204; Extn. 106)
Email Id: ashishbanerjee@hotmail.com
Residence No: 23582421 (8 pm – 9 pm) on Sundays, Mondays and Wednesdays

Course Objectives:

The course highlights the critical role of superior customer value in achieving high levels of
organizational performance. Delivering value requires understanding markets and deciding how to match
the distinctive capabilities of the organization with promising value opportunities. One of the challenging
executive imperatives is forming a perspective vision about how markets will change in the future
55
The pivotal role of Strategic Marketing in business performance is demonstrated in the market-driven
strategies of successful organizations competing in a wide array of market and competitive situations.
The increasing importance of superior customer value, leveraging distinctive capabilities, responding
rapidly to diversity and change in the marketplace, creating new products and recognizing business
challenges require effective marketing strategies for gaining and sustaining a competitive edge. Strategic
Marketing examines the concepts and processes in market-driven strategies

Strategic Marketing as a core course in Marketing focuses on proper understanding of the concepts and
their application in practice. Textual material, articles from refereed journals and research material from
authentic sources provide the conceptual foundation. Case Studies and Group Project work provide an
understanding of how these concepts can be applied in practice

Text Books:

1. Strategic Marketing Problems, Cases & Comments : Roger A. Kevin & Robert A Paterson: Prentice
Hall
2. Strategic Marketing: David W Cravens & Nigel F Piercy: McGraw Hill
3. Strategic Marketing: Donald J Browerso & M. Bixby Copper: Tata McGraw Hill
4. International Management: Analysis & Strategy: Sak Orwisit & John J. Shaw: Prentice Hall of India
5. International Marketing: Cateora & Graham: McGraw Hill

Selected chapters of the above books will be used a text material. In addition, articles and cases from
referenced journals and research material from authentic sources will be used

Apart from IIMC, the Faculty has been invited to offer this course at IIM Bangalore, XIM Bhubaneshwar,
IMI Delhi, Goa Institute of Management, Calcutta University, Jadavpur University as well as
international universities like Nottingham University, UK over the last 14 years

Course Content:

• Foundations of Strategic Marketing Management


• Opportunity Analysis and Market Targeting
• Marketing research
• Product and Service Strategy and Management
• Integrated Marketing Communication & Management
• Marketing Channel Strategy and Management
• Pricing Strategy & Management
• Marketing Strategy & Reformulation: The Control process
• Comprehensive Marketing programs
• Market Vision, Structure and Analysis
• Relationship Strategies
• Planning for New Products
• Strategic Brand Management
• Direct Marketing

Pre-Requisite: Knowledge of Marketing Management and Marketing research

Registration restrictions: Both credit and non-credit students can register

Evaluation Method:

Grade will be awarded on the basis of the following components: -

56
5. Class Participation
6. Project work in groups
7. Case Analysis & Presentation
8. Surprise quizzes
9. Viva-voce examination

23. MANAGING RETAILING (MK-252)

Instructor: Prof K. Dashrathraman (Course Coordinator: Prof Ramendra Singh)

INTRODUCTION

The Indian market place has undergoing a sea change vis-à-vis its retail landscape is concerned. Modern
retail has emerged and co exists along with traditional Retail formats. This change has brought about
many a related transformations in the way organizations look upon their distribution strategies and
distribution relationship management strategies. Value of assortment, purchase experience, channel
consolidation, volume driven relationships etc have acquired a completely new dimensions. Even
otherwise Retailing is considered important, both economically and socially as it affects large populace as
consumers, as shopping is all pervasive; and also as an intensive employer. All this have led to renewed
interest in Retailing as a phenomenon. This course has been developed to meet the requirements of
studying Retailing in order to enhance understanding of the domain and better equip professionals to
ready themselves for the sector either as the core beneficiary or as collaborators. The course is designed
to provide the participants an answer to the question of “how to” in retailing with emphasis on practical
applications of retailing policies, methods and procedures for both small and large operations. The
emphasis would be on hands on experience sharing by creating additional interface with the retailing
environment through a number of guest lectures by retailing practitioners to enhance the participant
learning horizon.

Learning Outcomes
Retailing aims to provide participants with an in-depth knowledge of retailing applications and a range of skills in a variety of

retail management techniques. On successful completion of the programme, graduates will be able to:

1. Understand the structure and development of contemporary retailing in an international context;


2. Derive, plan, implement and evaluate specific retail activities.
3. Generate and analyse the information required for decision-making at strategic and operational levels in retailing
4. Conduct research into retail and retail related issues.

Suggested Texts and Supplementary Readings

 Berman Barry, Evans Joel R , Mini Mathur: Retail Management- A Strategic Approach
11th Ed (Pearson Education)

Evaluation Scheme
End term Examination: 40%
Case Presentations / Quizzes: 20%
Retail Research Project: 40%

DETAILED SESSIONWISE COURSE OUTLINE


T: TOPIC FOR DISCUSSION; C: CASE; E: EXERCISE; R: TEXT READINGS

Session 1-2: Introduction to the World of Retailing and Emerging Scenario


57
R: Retail Scenario in India: Unlimited Opportunities (A CII Report)
R: Winning in India’s Retail sector, Factors for success: PWC report, 2011

Session 3-6: Understanding Various Retail Formats and Retail Market Strategy
R: Text Book: Relevant chapters
R: FDI in Retail: the Left point of view
R: Kirana RIP, not yet: Rama Bijapurkar
C: Metro Cash and Carry
C: Gamestop (IVEY W11640)
C: Walmart in India (IVEY 908A20)

Session 7: Location Strategies


R: Text Book: Relevant Chapters
C: Louis Vuitton in India (IBS 306- 354-1)

Session 8 -10: Strategic and Financial Decisions in Retailing


Store Ebitda model, Strategic Profit Model, Strategic Resource Model, 8 Ways to Win
R: Retailing Newsletter: Babson Executive Education: Spring 2009

Session 11: Category Management and Merchandise Decisions


R: Text Book: Relevant chapters
C: Eddie Baur

Session 12: Franchising


R: Text Book: Relevant chapters
C: Pizza Hut, Inc.

Session 13-14: Retail Branding and Communication Mix


R: Text Book Page 473 -520
C: Westside (ICMR 503-099-1)
C: Big Bazaar – Video case

Session 15 -16: Supply Chain issues in Retailing


C: Zara: Fast Fashion

Session 17: Managing Organization Structure and Human Resources


R: Text Book: Relevant chapters
C: Nordstrom: The Turnaround
Customer Centricity and Nordstrom

Session 18: Mall Management

Session 19/ 20: Retail Research Project / Wrap up

Some Additional Readings (To be distributed or uploaded later)

 The old Pillars of new Retailing (HBR, Leonard Berry)


 Winning in India’s Retail sector, Factors for success: PWC report, 2011
 Retailing Newsletter : Babson Executive education : Spring 2009
 Five Rules for Retailing in a Recession : Ken Favaro et al : HBR
 How to delight your customers : Barry Berman : California Mgt review, Fall 2005
 FDI in Retail : the Left point of view
 Kirana RIP, not yet : Rama Bijapurkar

24. TECH@WORK (MI-266) (RENAMED)


58
MI:-266: Tech @ Work
[formerly Information Technology: Strategy and Governance]

Post Graduate Programme

Term V Elective

Academic Year: 2016-2017

Course Coordinator: Priya Seetharaman


Course Instructor: Priya Seetharaman [and Guest Faculty]

Course Introduction:

It’s not just about technology any more. Digital, in fact is the new business normal. Information Technology (IT)
offers business organizations a means of achieving internal efficiencies as well as external effectiveness by engaging
with customers andcreating value. Although the potential of IT has been increasing in an exponential manner over
the past few years, few organizations can claim to have mastered the art and science of implementing, using and
governing technology. What differentiates successful organizations from the less successful ones as far as gains from
IT are concerned is the ability to use and manage IT, IT applications, IT projects, and IT environments well. This
course aims to present the gamut of challenges that organizations experience in planning, managing and governing
(with) IT. Does Tech work? What issues surround Tech@Work?

The course refreshes the students with some basic ideas on IT Strategy especially the Business-IT alignment issues
and then moves on to provide a broad understanding of the types of IT decisions that an organization is faced with,
the structures in vogue to support such decisions, the operationalization of the governance mechanisms, apart from
presenting the students with some ideas on the role of the CIO in the overall scheme of things. At the end of the
course, students will be able to

(a) appreciate the complexity in technology related decisions


(b) delineate IT related decisions made by firms
(c) understand IT governance, governance archetypes and resulting accountabilities
(d) appreciate suitability of various governance structures and mechanisms to implement them
(e) envisage a role for the CIO of a firm

Broad Outline
Introduction to role of IT in an organization
What is Business-IT Alignment?
What are the IT Decisions firms make?
What are governance archetypes?
Are there mechanisms to implement governance and handles to operationalize governance?
What role does a CIO play?

Recommended Text Book:


The Adventures of an IT leader;Robert D. Austin, Richard L. Nolan, Shannon O'Donnell, HBS Press, 2016

Additional References:

Books Available in the Library:


1. IT Governance, How Top Performers Manage IT Decision Rights for superior results; Peter Weill and
Jeanne W. Ross, HBS Press, 2004
59
2. Leading Digital:Turning Technology into Business Transformation; George Westerman, Didier Bonnet,
Andrew McAfee; HBSP, 2014.
3. Empowered – Unleash Your Employees, Energize your Customers, Transform your Business; Josh Bernoff
and Ted Schadler, HBSP, 2010
4. The Real business of IT; Richard Hunter and George Westerman, HBSP, 2009
5. 8 Things we hate about I.T., Susan Cramm, HBS Press, 2010

Other interesting relevant books:


1. The Network Imperative: How to Survive and Grow in The Age of Digital Business Models, Barry Libert;
Megan Beck; Jerrry Wind, HBS Press, 2016.
2. Flash Boys; Michael Lewis, W. W. Norton & Company, 2014.
3. Building Successful Information Systems, Michael J Savoie, Business Expert Press, 2012
4. IT Savvy: What Top Executives Must Know to Go from Pain to Gain, Peter Weill, Jeanne W. Ross, HBS
Press, 2009

Pedagogy:

The course will be conducted through a mix of lectures, case studies,problem based learning (PBL) exercises and a
mini-live-project (MLP). The objective of using all these is to allow the student to identify and experience issues
related to technology and its role in organizations.

Mode of Instruction/Evaluation:

The evaluation parameters include a mix of case write-ups, PBLs, Quiz and MLP.

 Case Write-ups: 25% [5 best out of 6 case submissions, 5 marks each]


Case studies are an important aspect of the learning process. 2-page write ups have to be submitted
individually. Lead questions will be provided. Feel free to go beyond the lead questions. Submissions will
be through Moodle - Courseweb.

 Problem Based Learning Exercises (PBL) (3 best out of 4 exercises, 10 marks each):30%
The exercises are to be done in groups. Groups will be decided in-class on the day of the exercise.
Submissions will be in-class.

 Mini-Live-Project (MLP):25%
This will be an information systems-related project where students are provided with a live decision
challenge faced by a CIO (Guest Faculty) in Week 4 of the course. Groups of 5 members are expected to
work on the project and suggest alternative solutions. Submissions are due in the 8th week of the course when
the CIO will revisit the challenges.

 In-class Quiz: 20%

Use of Courseweb (Moodle):

The instructors will mainly communicate to the participants on course and class-related issues through the moodle
interface. Participants are expected to keep abreast of such information shared on moodle.

Policy on Plagiarism

Plagiarism is the dishonest presentation of the work of others as if it were one's own. This includes using exact
words of another author without proper citation and quotation marks indicating they are exactly reproduced; using
material from published/unpublished sources or the internet without proper citation of sources; being assisted by
another person in completing your assignment or writeups; and paraphrasing another writer without citing the
original source.

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Plagiarism is unacceptable and will be severely dealt with. Any requests for leniency will not be entertained.
Plagiarized assignments will attract not only penalty for the assignment but may also attract grade drops
and other more severe action as decided by the instructors.

Turnitin:

Instructors will use Turnitin– an internet-based text matching service that has been developed by a commercial
company. It is used, under license, by IIM Calcutta. The purpose of using Turnitinis to allow students to develop
good academic practice in order to reference material correctly, thereby minimising the risk of submitting
plagiarised work in assignments and case writeups. Turnitin may also be used to assist with plagiarism detection
where there is concern that an assignment contains plagiarised material. Students should be aware that Turnitin is
not the only method of checking for plagiarism and other means are readily available.While we will use the
Originality Report generated by Turnitin to assess plagiarized content, it will not be advanced as the sole reason for
suspecting that a piece of work is plagiarized. The judgement as to whether work is plagiarisedwill be an academic
judgment.

Tentative Session Plan

Week of Session Topic Description and Cases

5th Sept, 2016 1 Introduction Problems with information as a resource and IT


as a technology - unlike other resources why is
it more critical to “strategize” and "govern it".
5th Sept, 2016 2 Business IT Why is alignment an issue? How do
Alignment organizations ensure alignment? What are the
mechanisms? What is alignment maturity?
12th Sept, 2016 3 PBL 1 Games on Air
Product Development
12th Sept, 2016 4 What are the IT IT Principles
Decisions firms Business Application Needs
make? IT Investment and Prioritization
IT Architecture
IT Infrastructure
19rd Sept, 2016 5 Visioning for IT Developing a Strategic Plan for IT
Case 1: Cirque Du Soleil
19th Sept, 2016 6 IS/IT strategy IS Strategy
formulation IT Strategy
IT Management Strategy
26th Sept, 2016 7 Who is a CIO? What role does a CIO play? Why is it important
for him to relate to the other C-level
executives?
Case 2: Jack Carlisle, CIO
26th Sept, 2016 8 Being a CIO [Guest Lecture]
26th Sept, 2016 9 Mini-Live-Project [Guest Lecture] – continued
[Class to Briefing
accommodate
GF]
3rdOct, 2016 10 PBL 2 Architecture/Infrastructure: Analyzing
alternatives
3rd Oct, 2016 11 Operationalizing IT Structures and Mechanisms aiding
Governance operationalization of IT governance
Case 3: STARS Air Ambulance: An
Information Systems Challenge
10th Oct, 2016 PUJA WEEK
17th Oct, 2016 MID TERM EXAMINATION WEEK
25th Oct, 2016 SUMMER PLACEMENT WEEK
31st Oct, 2016 12 PBL 3 Balancing an IT Application Portfolio

31st Oct, 2016 13 Prioritizing IT Case 4: Volkswagen of America


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Applications and
Projects
7th Nov, 2016 14 PBL 4 Technology Outsourcing
7th Nov, 2016 15 Operationalizing IT IT Outsourcing Models, Structuring SLAs
Governance Case 5: Commonwealth Bank of Australia

14th Nov, 2016 16 Contemporary Debates on contemporary technology issues


Digital Debates
14th Nov, 2016 17 Mini-Live-Project Presentations and Evaluation by Guest Faculty
14th Nov, 2016 18
[Class to
accommodate
GF]
21stNov 2016 19 Operationalizing IT The Board and IT
Governance Case 6: Waterco Customer Information and
Billing System
21stNov, 2016 20 Conversion Conversion Contingencies
Contingencies Concluding Session

25. STRATEGIC BUSINESS INTELLIGENC (MI-256)

Coordinator:
Prof. Ambuj Mahanti

Instructors:
Professor Ambuj Mahanti (Coordinator)
Office:CC-202, Extn:405
Email: am@iimcal.ac.in;
Phone: 9874583438; 24619917(res.)

Professor Ranjan Das


Office: Extn 200
Email: rdas@iimcal.ac.in
Phone: 9830052722;

Professor Asim K. Pal


Office:CC-209, Extn:412
Email: asim@iimcal.ac.in
Phone: 9748533525,9830637252;

Mr. Samir K. Sadhukhan


Office: CC-207, Extn: 410
Email: samir@iimcal.ac.in;
Phone: 9231681663; 24931824(res.)

Course pre-requisites: NA

Restrictions on course registration (for optional courses) and criteria for restriction: PGDM Only

Course Objective:

The key to thriving in a competitive marketplace is staying ahead of the competition. Data is useless unless it’s not properly
analyzed. Analysis of the data, querying and smart reporting can help organizations wade through a sea of information, look
forpearls of information and then convert the learning to knowledge.Making strategies and sound business decisions based on
accurate and relevant information takes more than intuition – it needsknowledge. Today these tools collectively fall into a
category called "Business Intelligence".

Thus the objective of this course is to expose the students to the basic concepts, tools and techniques of Business Intelligence.
In the process, applications of BI in marketing, risk management, customer intelligence, finance and strategy would be
touched upon.

Course Content:

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Database technology has evolved from primitive file processing to the development of database management systems with
query and transaction processing. Our capabilities of both generating andcollecting data have been increasing rapidly in the
last several decades. Contributing factors include the widespread use of barcodes for most commercial products, the
computerization of many business, scientific, and government transactions, and advances in data collection tools ranging from
scanned text and image platforms to satellite remote sensing systems. The emergence of networking, internet and World Wide
Web has further increased the volume of data. An organization now can study and analyze no only its own data available at its
various units but also many other data sources elsewhere which may be related to its business interests. This data load offers
new challenges and opportunities for new techniques and automated tools that can intelligently assist us in transforming the
vast amounts of data into useful information and knowledge.

A data warehouse is a repository for long-term storage of data from multiple sources, organized so as to facilitate management
decision making. The data are stored under a unified schema and are typically summarized. Data warehouse systems provide
some data analysis capabilities, collectively referred to as On-Line Analytical Processing (OLAP).

Data mining is the task of discovering interesting patterns from large amounts of data where the data can be stored in
databases, data warehouses, or other information repositories. Such intelligent navigation through data sources may unearth
unanticipated new knowledge enabling better decision making and discovery of new opportunities.

Business intelligence (BI) is an umbrella term that encompasses tools, architecture, databases, data warehouses, performance
management, methodologies, and so forth, all of which are integrated into a unified software suite. BI has many capabilities,
including reporting and querying, complicated analysis, data mining, prediction, forecasting, and much more. Today’s business
intelligence users also utilize the Web for analysis, and they use graphical user interfaces that allow decision making to be
flexible, easy to view and efficient. These BI technologies are integrated with other tools (e.g., ERP and CRM software) in
such a way that they become most useful to all users. For this reason, almost any medium to large company today is using BI
or some BI modules to improve its performance, excel, and sometimes even to survive.

Business Analytics (BA) is the practice of transforming business data into knowledge to increase decision agility in
competitive markets. BA is intended to provide a foundation for analytical concepts and approaches required in strategic
business decision-making. The analytic methods support data and processes in varied industries spanning like marketing,
strategic planning, financial planning, risk management and customer intelligence.

The area that has captured and used such information and used analytics to the hilt is the domain of web. Text mining and web
analytics have given birth to innovative companies like Google and Yahoo who have changed the way the world uses web and
the huge information base. Click-stream analysis has opened up newer avenues of revenues and business for corporate. With
the advent of the Web 2.0 and the boom of social media, mining unstructured data like blogs, tweets and posts have given
organizations newer insights into the customer perceptions and opened up scopes for further service refinement. Information is
no more an opportunity, now it’s the power.

Course Material: Various relevant materials to be provided.

Pedagogy: Lectures, Case Studies, and Group Projects.

Evaluation:
Quizzes, Class Participation, and Group Case Presentations: 35%
Group Project: 30%, End Term: 35%
Session Plans: Lecture/Topic(s)

1. Introduction and Scopes

2. Competitive Intelligence

3-7. Data Warehousing, Association Rule Mining, Data Cubes

8-9. Case Presentations and SAS exposures

10. Knowledge Management for Competitive Advantage

11. Knowledge Management and Portals

12. Intelligent Agents in Business as in SCM and CRM

13-15. Classification, Regression and Decision Tree, etc. for predictive modeling

16. Problem Solving


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17-19. Web Analytics

20. Strategic Performance Maanagement

(No provision for makeup quizzes)

Text & References:

1. Business Intelligence - A Managerial Approach, Efraim Turban, Ramesh Sharda, Jay E. Aronson, David King, Prentice Hall;
1st edition (April 14, 2007)

2. Strategic Intelligence, Jay Liebowitz, Auerbach Publications, 2006

3. Early Warning: Using Competitive Intelligence to Anticipate Market Shifts, ControlRisk, and Create Powerful Strategies,
Benjamin Gilad, Amacom, 2004

4. Data mining: concepts and techniques, Jiawei Han and M. Kamber, Morgan Kaufmann,Second Edition, 2006.

5. Introduction to Data Mining, Pan-Nang Tang, Michael Steinbach and Vipin Kumar, Addison Wesley, 2005.

6. Data Mining for Business Intelligence: Concepts, Techniques, and Applications in Microsoft Office Excel with XL Miner,
by G Shmueli, N R Patel and P C Bruce, Wiley India 2008

7. The Data Warehouse Toolkit: The Complete Guide to Dimensional Modeling (Second Edition), Ralph Kimball and Margy
Ross

8. Building the data warehouse, W. H. Inmon, John Wiley & Sons, 2002 8. Building the operational data store, W. H. Inmon,
John Wiley & Sons, 1999

9. Using the data warehouse, W. H. Inmon and R. D. Hackathron, Wiley, 1994 0. Making better business intelligence decisions
faster, Elizabeth Vitt et al, Prentice Hall of India, 2002

10. Competing on Analytics, T.H. Davenport and J. G. Harris, Harvard Business School Press, 2007

11. Web Analytics: An hour a day, Avinash Kaushik, Wiley Publishing Inc, 2007

12. Business Intelligence (BI): High-impact Strategies - What You Need to Know: Definitions, Adoptions, Impact, Benefits,
Maturity, Vendors by Kevin Roebuck (Kindle Edition - Jun 15, 2011)

13. Business Intelligence Strategy: A Practical Guide for Achieving BI Excellence by John Boyer, Bill Frank, Brian Green and
Tracy Harris (Paperback - Nov 1, 2010)

14. The New Era of Enterprise Business Intelligence: Using Analytics to Achieve a Global Competitive Advantage by Mike
Biere (Paperback - Aug 25, 2010)

15. The Logical Organization: A Strategic Guide To Driving Corporate Performance Using Business Intelligence by Gail La
Grouw (Paperback - Sep 15, 2008)

26. INFORMATION TECHNOLOGY AND BUSINESS INNOVATION (MI-268)

Information Technology and Business Innovation


(Elective Course- 3 Credits)
Prerequisite: MIS:SD or ICTOE

Course Coordinator/Instructor: Prof. Sanjiv D. Vaidya


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Course Outline

Introduction:
Information Technology has a tremendous potential to enable organizations to innovate. It has been seen that organizations
have been able to very consciously conceive of and implement significant innovations at the level of processes, and less
frequently at the level of decisions. At the same time, major IT initiatives by organizations have also often opened up
significant opportunities for new strategic initiatives and need for significantly different management approaches. Finally, a
large majority of these major IT initiatives also lead to, often by default, significant impact on organizational structures and
culture.

In today’s digital age, it is very critical for managers to understand the possibilities for IT-led innovations at these different
organizational levels. This will enable them to foresee and plan for IT initiatives for very significant strategic benefits. At the
same time, it is equally crucial for them to understand the implications of these efforts at innovation for the organization, in
terms of requirement of resources and management approaches, in order to be able to actually implement these innovations
successfully.

This course attempts to provide some insights into this very complex and rather ill-understood, yet very important,
phenomenon.

The following outline will shed some light on how.

(Please note that this course is an endeavour to bring in insights from different theories of Management of Innovation into the
field of Strategic Management of Information Technology, to enrich our understanding of the latter. Also, please note the
outline is rather ambitious to cover in a span of 30 hours. A sincere attempt will be made to cover as many topics as possible.)

For effectiveness of the course, it is desirable that the class size is restricted to a maximum of 40.

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Sessions Plan:

Sessions 1: Introduction to the course

Sessions 2-6: Introduction to the concept of Innovation and the potential role of information technology

Sessions 7 to 17: IT and Innovation at the Strategic Level

- A Brief Mention of the Concepts related to Strategic Use of IT

- IT and Identification of Opportunities for Strategic Innovations

- IT for Market Penetration


- IT for Product Development
- IT for Market Development
- IT for Diversification

- The Concept of the Strategic Grid and its Implications

- Organizational Movement around the Strategic Grid and concerned Innovation at the level
of the organization: Insights from the theories of Management of Innovations

- Concept of the Industry Sector Model and the Role of IT in Positioning a Firm in a
Specific Sector

- Management Implications of the Industry Sector Model

- Introduction to the integrative framework of Information Architecture – with its


steering, mapping and updating exercise.

Sessions 18 to 22: IT Innovations and their impact on Organizational Structure and Culture

- The Information Processing View of Organizations and its linkages with other theories of
organization

- IT and Virtual Components of structure

- Implications of these for the Impact of IT on Organizational Structures

- Possible impact of IT on Organizational Culture – the move towards abstractness in the


work environment, possibilities of both deskilling and empowerment of employees and the
impact of IT on social interactions

Sessions 23 to 29: IT and Process Innovation

- Basic Concepts of Incremental and Radical Process Innovations

- An approach to Process Redesign

- The roles that IT can play as an enabler of Radical Process Redesign

- The Impact of IT Enabled Process Redesign on Organizational Structure and Culture

- An integrative approach towards effective process innovation using IT

Session 30: IT and Oragnizational Innovation – an Integrative View


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Please Note: Each session is assumed to be of one-hour duration.

Mode of Evaluation:

The evaluation will be through a mix of Case assignments, mid term and/or end term
examinations and a team project.

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Select Texts/References

1. Strategic Management of Technological Innovation by Melissa A. Schilling

2. Management Strategies for Information Technology by Michael Earl, Prentice Hall.

3. The Information Archipelago: Plotting a Course by McFarlan et. al., HBR.

4. An Information Processing View of Organizations by Jay Galbraith, Interfaces.

5. Information Technology for Management by Henry Lucas, TMH.

6. New Worlds of Computer Mediated Work by Shoshana Zuboff, HBR.

7. Reengineering the Corporation by Hammer and Champy, Harper Business.

8. Reengineering Work: Don’t Automate, Obliterate by Michael Hammer, HBR, Jul-Aug. 1990

27. BUSINESS TRANSFORMATION WITH SOCIAL MEDIA (MI-278)

Business Transformation with Social Media (MI-278)


Term V, PGP Elective, 2015-2016
Credits: 3

COURSE INFORMATION

Course Instructor and Coordinator: Prof. Somprakash Bandyopadhyay


Co-Instructor: Prof. Indranil Bose

Course Description:
Social media are fundamentally changing the way we communicate, collaborate, consume, and create. They represent one of
the most transformative impacts of information technology on any organization, both within and outside organizational
boundaries. Social media have revolutionized the ways businesses relate to the marketplace, creating a new world of
possibilities and challenges for all aspects of the enterprise, from marketing and operations to finance and human resource
management. Even then, a study by Stanford University’s Rock Center for Corporate Governance on social media conducted
in 2012 reveals that, while 90% of respondents from the top management of different companies claim to understand the
impact that social media can have on their organization, only 32% of their companies monitor social media to detect risks to
their business activities and 14% use metrics from social media to measure corporate performance.

In this course, we explore how organizations can get off on the right foot by addressing the macro & micro-level strategic
aspects of social media. The emphasis of this course is on understanding consumers’ social interactions through social media,
the various social media channels available to us, how to build social strategies, how to track their effectiveness, and finally
social business using social media. Also, since social media is heavily technology-driven we will cover relevant aspects of
Social Technology more broadly.

Prerequisite:
There is as such no specific prerequisite; however, it assumes that you have some knowledge of
management theory and practice.

Course Format:
This course uses diverse formats to achieve the course learning objectives including lecture, discussion, group work, and
extensive student’s presentation.

68
Grading Policy:
Your grade will be determined by the following four components:
 Two Group Assignments as determined by the instructor (50%)
 Class participation and Case Discussions (20%)
 End Term Examination (30%)

Course Schedule
Session No Session Details Instructor

1. Connected Consumers and Relationship Economics: Social Psychology of Somprakash


Foundation Social Media Bandyopadhy
Discussion on Assignments ay

2. Why to Build a Social Media Strategy… and How: A Social Media Strategy Somprakash
Social Media Framework (how social media is affecting all aspects of a business) Bandyopadhy
Strategy: I ay

3 Somprakash
Social Media The Dragonfly Effect: Using Social Media to Drive Change Bandyopadhy
Strategy: II ay

4 An Indian Success Story on Guest


An Indian Organizational Transformation with Social Media Speaker
Success
Story

 Mistakes to avoid when starting in the social media Initiative: Managing a Somprakash
5 Social Media Crisis Bandyopadhy
Social Media  Corporate Social Media Policy & Risk Management ay
Strategy: III  Legal implications of Corporate Social Networking

6  Buyer Identification and Customer Aligned Sales & Marketing Process Somprakash
Sales &  Keeping excitement alive over time: Ford Fiesta Movement Bandyopadhy
Marketing ay

7 Social Media Marketing: An Indian Perspective Guest


Sales & Speaker
Marketing

8 Listening and Monitoring : Social Marketing Analytics Somprakash


Social Media Bandyopadhy
Analytics ay

9 Case I: Starbucks: Indranil Bose


Case Study I Brewing Customer Experience Through Social Media

10 Social Media Analytics : A Few Free Monitoring and Measuring Tools Somprakash
Social Media Bandyopadhy
Analytics ay

11 Case II: Circos: Tapping Into Social Media Indranil Bose


Social Media
Analytics

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Session No Session Details Instructor

12 Social Media Analytics : Tools and Techniques Guest


Case Study Speaker
II

13 Crisis Management and Social Changes with Social Media Somprakash


Social Bandyopadhy
Changes ay

14 Case III: Greenpeace, Nestle and the Palm Oil Controversy: Social Media Indranil Bose
Case Study Driving Change
III

15 From Crowdsourcing to Macrowikinomics: New Solutions for a Connected Somprakash


Social Planet Bandyopadhy
Business ay

16 Case IV: Commonwealth Edison: The Use of Social Media in Disaster Indranil Bose
Case Study Response
IV

17 Student presentation and evaluation (Assignment 1 and 2) Somprakash


[4 groups] Bandyopadhy
ay

18 Student presentation and evaluation (Assignment 1 and 2) Somprakash


[4 groups] Bandyopadhy
ay

19 Student presentation and evaluation (Assignment 1 and 2) Somprakash


[4 groups] Bandyopadhy
ay

20 Student presentation and evaluation (Assignment 1 and 2) Somprakash


[4 groups] Bandyopadhy
ay

Learning Outcomes

After successfully completing this course you should be able to do the following:
 Understand what social media is and how this new type of media and communications technology is impacting the way
a business is done.
 Understand some key principles of “connected customers” in terms of consumer psychology and sociology and how
they feed into social media strategy development.
 Know the main components of viral/buzz/word-of-mouth marketing campaigns and the best approaches for identifying
and selecting the initial “seed” individuals who start spreading information/ content/ opinions over their social
networks.
 Be familiar with some important aspects of monitoring tools to measure the impact of social media in an organization.
 Be familiar with future trends of social media use for social business

Textbook:
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There is no text-book for this course. It is simply too new an area and existing books are either already out-dated or not up to
the mark. Instead of a textbook there will be power-point presentation slides, videos and electronic links to different resources.

The following online resources/blogs are recommended reading on a regular basis in order to keep up with the latest news in
the social media world:
1. TechCrunch: http://www.techcrunch.com
2. Mashable: http://www.mashable.com
3. Fastcompany: http://www.fastcompany.com
4. Social Selling example video: (http://www.slideshare.net/linkedin-sales-solutions/welcome-to-the-social-selling-era)
5. Indian Social Media Knowledge Storehouse: http://www.socialsamosa.com/
6. Must watch 20+ Indian Social Media Success Stories: (http://www.digitalvidya.com/blog/social-media-casestudies/must-
watch-20-indian-social-media-success-stories/)
7. Social Media Business Cases and examples: (http://www.techinasia.com/30-social-media-business-case-studies/)

Pedagogy:
Lectures, Videos, Discussions and Presentations

28. LOGISTICS AND SUPPLY CHAIN MANAGEMENT(OM – 238)

Logistics & Supply Chain Management [OM 238]

Post Graduate Programme (PGP)


Term V, Academic Year 2016-17

Coordinator: Debabrata Ghosh (K-307, NAB, Tel: 741)

Instructors: Peeyush Mehta (PM), K – 304, NAB, pmehta@iimcal.ac.in


Debabrata Ghosh (DG), K – 307, NAB,
debabrata.ghosh@iimcal.ac.in

Course objectives:

Supply Chain Management (SCM) is often described as one of the most


powerful sources of competitive advantage for firms in recent times. Unlike the
compartmentalized manner of efficiency and effectiveness (service) enhancement
pursuit in traditional management, SCM attempts to further enhance the same at
the value chain level through higher focus on coordination and integration among
the various partners of the supply chain to provide greater value to the customers.
This course on Logistics and Supply Chain Management is designed as one that is
application-based and also attempts to integrate concepts covered in various
courses. The pedagogy is a mix of conceptual inputs, model-based analyses, and
case studies.

The learning goals are specifically:


1. Understand the fundamentals of Supply Chain Management (SCM) including its
role in an organization and in integrating firms in a supply chain.

71
2. Understand the various concepts in SCM like coordination, planning for
uncertainty, supply contracts, logistics management, outsourcing and
procurement management.
3. Apply various analytical methods and tools so that students are able to measure
and evaluate various facets of supply chain performance.
4. Understand practices in SCM that differentiate successful firms from others.
5. Understand the challenges in SCM through a real industry project.

Pedagogy: Classroom discussions based on readings, cases, and assignment


problems.

Evaluation (%):
Class Participation: 10
Case Reports: 20
Project Work: 30
Mid-Term Examination: -
End-Term Examination: 40

Course material:
Designing and Managing the Supply Chain (3rd Edition) by D. Simchi-Levi, P.
Kaminsky, E. Simchi-Levi and Shankar (SL); Tata McGraw-Hill, 2008.

Readings, cases and assignments provided in the course material.


Session wise schedule:

Session 1
Topic: Introduction to Supply Chain Management
Instructor: DG
Reading: Chapters 1, 2 of the text SL.

Session 2
Topic: Strategic inventory in supply chains
Instructor: DG
Reading: Chapters 1, 2 of the text SL.

Session 3
Topic: Design of supply contracts
Instructor: PM
Reading: Chapter 4 of the text SL.
Assignment: In class exercise

Session 4
Topic: Design of supply contracts (Contd.)
Instructor: PM
Reading: Chapter 4 of the text SL.
Assignment: In class exercise

Session 5
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Topic: Product postponement strategies
Instructor: DG
Reading: Chapters 2, 5 of the text SL.
Assignment: In class exercise

Session 6
Topic: Supply chain design
Instructor: DG
Reading: Chapter 11 of the text SL.

Sessions 7 and 8
Supply Chain Simulation Game (Beer Game)
The two sessions would be combined

Session 9
Topic: The value of information
Instructor: PM
Reading: Chapter 5 of the text SL.
Case: Sport Obermeyer (Case Report to be submitted)

Session 10
Topic: Supply chain coordination
Instructor: PM
Reading: The bullwhip effect in supply chains
Case: Barilla Spa (A)

TERM BREAK

Mid Term Exam (Schedule to be provided by the PGP office)

Session 11
Topic: Mass customization and Sustainability Issues in Supply
Chains
Instructor: DG

Session 12
Topic: Sustainability Issues in Supply Chains (Contd.)
Instructor: DG
Case: Han Solar and the Green Supply Chain (Case Report
to be submitted)

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Session 13
Topic: SCM issues in Sales, Marketing and Distribution
Instructor: DG
Assignment: In class exercise

Session 14
Topic: Revenue management
Instructor: DG
Reading: Chapter 13 of the text SL.
Assignment: In class exercise

Session 15
Topic: Strategic sourcing, supply management and outsourcing
Instructor: PM
Reading: Chapter 9 of the text SL
Fast, global and entrepreneurial: interview with Victor Fung

Session 16
Topic: Strategic sourcing, supply management and outsourcing
(Contd.)
Instructor: PM
Reading: Chapter 9 of the text SL.
Case: Flextronics and Solectron

Session 17
Topic: E-commerce and SCM
Instructor: DG
Case: Zappos.com: Developing a supply chain to deliver
Wow!
(Case Report to be submitted)

Session 18
Topic: Distribution Strategies- Merloni Case Discussion
Instructor: PM
Reading: Chapter 7 of the text SL.
Merloni Case (Case Report to be submitted)

Session 19
Topic: Project Presentations
Instructor: PM/DG

Session 20
Topic: Project Presentations
Instructor: PM/DG

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End Term Exam (Schedule to be provided by the PGP office)

Guidelines for Project:


1. Group size 5 – 6 members
2. Each team should be made of students belonging to a particular L&SCM
section.
3. The project could be on the supply chain practices of a firm or on a
particular supply chain concept that the students are interested in
understanding in detail. Project based on literature in books, magazines or
internet space is strongly discouraged. However, using data or problem that the
student has come across as part of earlier work experience or summer
internship is allowed and strongly encouraged. In other words, the project has
to be as close as possible to a real-life experience.
4. The project evaluation will have following dead-lines and marks break-up:
Week 5: First update of work done (5 marks)
Week 7: Second update of work done with details (5 marks)
Week 10: Project presentation (12 marks)
Participation in other presentations (4 marks)
Submission of presentation reports (4 marks)

29. SUSTAINABLE SUPPLY CHAIN MANAGEMENT (OM-249)


Course Outline of Sustainable Supply Chain Management (Elective)

Course Name: Sustainable Supply Chain Management


Course Code: OM-249
Credits: 1.5 Credits
Term: V, PGP II (Post Mid-Term)
Compulsory or Optional: Optional
Course Coordinator/Instructor: Prof. Subrata Mitra
Registration limitation: 45

Course background

Sustainability or sustainable development is a much-discussed and significant topic of today in the light of increasing
environmental degradation (global warming, depletion of the ozone layer etc.) and violation of human rights. Sustainable
development is defined as the development that meets the needs of the present without compromising the ability of future
generations to meet their own needs. Sustainability has three dimensions: economic, social and environmental. While
economic viability is necessary for an organization to survive, it is not sufficient to sustain the organization in the long run if it
causes irreversible damages to the ecosystem by way of emitting greenhouse gases and toxic wastes and depleting non-
renewable resources or it fails to ensure safety, security, dignity, healthcare, minimum wage, indiscrimination and better
working conditions for its employees, the community and the society in general. Hence, it has become imperative for any
organization to behave in a socially and environmentally responsible manner while trying to achieve its economic goals.

Although supply chain management has been widely studied since the last two decades, the discussion on sustainability in the
supply chain literature has gained momentum since the early 2000s. In the context of supply chains, sustainability has been
referred to more in terms of conforming to environmental norms and standards than meeting social expectations. However,
that does, in no way, mean that supply chains are indifferent to their social responsibilities. The role of environment comes
more often in the discussion on sustainable supply chains in the context of environment-friendly product and process design,
adoption of cleaner technologies, environmentally safe storage and transportation of goods, and returns management including
disposition of end-of-life products and product recovery for reuse, leading to the evolution of phrases such as “reverse
logistics”, “closed-loop supply chains” and “green supply chains”. In many developed countries, manufacturers are being held
responsible by law for collection, transportation and disposal or recovery of their products after use. Even the awareness
among the general public towards environment-friendly products and processes has substantially increased. There is a market
for “green” products, which is estimated to be in excess of USD 200 billion. Since manufacturers are now being held
accountable for the entire life cycle of their products, they should strive to design more eco-friendly and easily recoverable
products, and recover the economic value as far as possible from returns. This would not only help them achieve economic

75
sustainability, but also facilitate projecting their environmental responsibility and building a “green” corporate image. Topics
on sustainable supply chain management would include, but not be limited to, product design issues, “green” purchasing,
supplier development, clean technologies and manufacturing processes, collection/inspection/sorting/disposal/recovery of
returns, integration of forward and reverse logistics, inventory management and revenue management for recovered products.

Course objectives

The broad objectives of the course are to introduce to students the concept of sustainability and sustainable development,
familiarize them with the literature on sustainability and lead them to appreciate the role of sustainability in the context of
supply chain management.

The specific objectives of the course are to

a. define sustainability, in general, and the role of sustainability in the context of supply chain management, in
particular
b. discuss issues such as product design for sustainability, supplier relationships and “green” purchasing, cleaner
manufacturing technologies, transportation and storage of goods, waste and emission reduction, returns
management, inventory management, reverse logistics and marketing of recovered products
c. introduce to students theoretical and empirical models on integration of forward and reverse distribution, integrated
production and inventory management and revenue management for recovered products
d. discuss case studies and examples highlighting the best practices in sustainable supply chain management

Session plan

Session 1: Sustainability, sustainable development and supply chain management


 Definitions and dimensions of sustainability
 Introduction to supply chain management
 Role of sustainability in supply chain management
Session 2: Laws, regulations and environment management systems
 Government legislations, corporate accountability
 Environmental standards: ISO 14000
Corporate strategy for sustainable supply chain management
 Implications for corporate policy, structure and culture
 Implications for functional areas such as purchasing, finance, marketing, production, quality control
etc.
Session 3: Product and process design and manufacturing technology-related issues
 Introduction to the concepts of “carbon footprint” and “carbon credit”
 Product life cycle analysis and transaction cost economics
 Product design for longer shelf-life and easy recovery
 Minimization of waste and reduction of emissions
Session 4-5: “Green” purchasing and supplier development for sustainability
 Collaboration for environment-friendly supplies and production processes
 Implications for cost, quality and delivery of supplies
 Reduction in packaging wastes and recycling of packaging
 “Green” transportation and storage of goods
 Fuel efficiency/Energy efficiency/Energy audits
 Waste and emission reduction
Session 6-9: Management of returns
 Collection/transportation/inspection/sorting/disposal/recovery of returns; Various recovery options
 Integration of forward and reverse supply chains: Introduction to Integer Programming models and
Vehicle Routing Problems with Backhauling
 Integrated production and inventory models: Models for closed-loop supply chains under uncertain
demands and returns
 Revenue management and dynamic pricing for recovered products
 Role of IT in facilitating product returns and recovery
Session 10: Presentations by students

Pedagogy
Lectures, case discussions and student presentations

Evaluation criteria
a. Class tests 20%
b. Case presentations 30%
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c. End-term examination 50%

Reading list

There is no text book. Selected reading materials will be distributed in the class.

Book

Dekker, R., Fleischmann, M., Inderfurth, K. and Van Wassenhove, L.N. (Editors) (2004), “Reverse Logistics: Quantitative
Models for Closed-Loop Supply Chain”, Springer, Berlin.

Cases

Cases on AT&T, Xerox, IBM, Wal-Mart, McDonald’s, Starbucks and other companies from Harvard Business School,
Stanford University and California Management Review.

Journal articles

a. Gladwin, T.N., Kennelly, J.J. and Krause, T.S. (1995), “Shifting Paradigms for Sustainable Development:
Implications for Management Theory and Research”, The Academy of Management Review, 20 (4), pp. 874-907.
b. Porter, M.E. and Van Der Linde, C. (1995),“Green and Competitive: Ending the Stalemate”, Harvard Business
Review, 73 (5), pp. 120-134.
c. Hart, S.L. (1995), “A Natural Resource-Based View of the Firm”, The Academy of Management Review, 20 (4), pp.
986-1014.
d. Klassen, R.D. and McLaughlin, C.P. (1996), “The Impact of Environmental Management on Firm Performance”,
Management Science, 42 (8), pp. 1199-1214.
e. Guide Jr., V.D.R. and Van Wassenhove, L.N. (2009), “The Evolution of Closed-Loop Supply Chain Research”,
Operations Research, 57 (1), pp. 10-18.
f. Guide Jr., V.D.R. and Van Wassenhove, L.N. (2001), “Managing Product Returns for Remanufacturing”, Production
and Operations Management, 10 (2), pp. 142-155.
g. Savaskan, C, Bhattacharya, S. and Van Wassenhove, L.N. (2004), “Closed-Loop Supply Chain Models with Product
Remanufacturing”, Management Science, 50 (2), pp. 239-252.
h. Ketzenberg, M.E., Van Der Laan, E. and Teunter, R.H. (2006), “Value of Information in Closed-Loop Supply
Chains”, Production and Operations Management, 15 (3), pp. 393-406.
i. Fleischmann, M., Bloemhof-Ruwaard, J.M., Dekker, R., Van Der Laan, E., Van Nunen, J.A.E.E. and Van
Wassenhove, L.N. (1997), “Quantitative models for Reverse Logistics”, European Journal of Operational
Research, 103, pp. 1-17.
j. Kleindorfer, P.R., Singhal, K. and Van Wassenhove, L.N. (2005), “Sustainable Operations Management”, Production
and Operations Management, 14 (4), pp. 482-492.
k. Corbett, C.J. and Klassen, R.D. (2006), “Extending the Horizons: Environmental Excellence as Key to Improving
Operations”, Manufacturing & Service Operations Management, 8 (1), pp. 5-22.
l. Rao, P. and Holt, D. (2005), “Do Green Supply Chains Lead to Competitiveness and Economic Performance?”,
International Journal of Operations & Production Management, 25 (9), pp. 898-916.
m. Articles from the special issues of International Journal of Production Economics (111, 2008), Journal of Operations
Management (25 (6), 2007), Interfaces (30 (3), 2000; 33 (6), 2003), Production & Operations Management (15
(3&4), 2006) and Computers & Operations Research (34 (2), 2007).

30. COUNTRY RISK ANALYSIS (PP-215)

Course Instructor: Professor Biju Paul Abraham, Public Policy & Management Group

Office: M-208 NAB (New Academic Block) Tel. Ext. 763 Mobile: 92316 86066

e.mail: abraham@iimcal.ac.in

Office Hours: Mondays and Wednesdays 9.00 AM to 11.00 AM

I. COURSE OBJECTIVES

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Cross-border investments have increased dramatically in the last two decades as firms and investment
institutions in both developing and developed countries seek greater investment opportunities, larger
markets, more natural resources and cheaper labour around the world. However, not all investment locations
are investment-friendly and all investments involve country specific risks. This course seeks to provide
participants with some insights into how they can assess risks facing investments in a specific country or
region, assess country risk exposure and develop risk mitigation strategies. It is expected that the course will
provide them with the tools necessary to analyse the political, regulatory and economic environment in a
prospective investment location so that potential risks, as well as country risk premium, can be measured and
factored into investment decisions. Case studies will provide students with a greater understanding of risks
that firms have been exposed to in different investment locations around the world and how they have coped
with such risks.

II. COURSE COMPONENTS

The course will involve over thirty-five contact-hours, spread over twelve weeks, and will include the
following components:

a. Lectures and Case Discussions


b. Class Exercise
c. Negotiation-Exercise, Analysis and Debrief
d. Group Assignments

The lectures are designed to introduce participants to various aspects of the broad environment that need to
be considered when investment decisions are made as well as tools used to assess and measure risk.
Participants will then examine specific problems that investors have faced while investing in different
countries and analyse how investors have coped with these problems in the case discussions.

A class exercise will help participants understand methods by which firms quantify investment risks. A
negotiation exercise will be run to provide participants with an exposure to problems that mangers face in
negotiations with governments and government agencies. The fourth component of the course will be a
group assignment. In group assignments participants will be required to assess potential risks that investors
could face while investing in a specific sector, either in a country or a region.

III. COURSE EVALUATION

Class Participation : 40%


Class Exercise : 10%
Negotiation Exercise : 10%
Group Assignment : 40%

IV COURSE OUTLINE, CASES AND READINGS*

(Readings and Cases indicated for each session are included in the course hand-out)

1. Assessing Opportunities and Risks for Investment: Foreign Direct Investment (FDI) - Nature,
Forms and Risks; Major factors causing changes in global FDI patterns; Impact of changing
trends in FDI on Country Risk; Outward investment by Indian and Chinese firms – causes and
risks; Assessing potential between risks and pay-offs for investments.

Reading:

78
Joseph T. Martelli and Patricia B. Abels, ‘Multinational corporations: the changing landscape’,

Management Research Review, 34(8), 2011, pp.889-909.

2. Assessing Political & Economic Risks: FDI and political risk; political and economic risk
factors; institutions and political risk; quantitative and qualitative assessment of political and
economic risks; political risk mitigation

Reading:

Menat Hussein, ‘A Qualitative Exploration of the Factors Affecting Foreign Direct Investment

Inflows in Egypt’, The Business Review (Cambridge), 21(1), Summer 2013, pp.316-28.

3. Forecasting Political Risk: Case Discussion - Oil Nationalization in Venezuela

Case:

Brandon Marsh, ‘Preventing the Inevitable: The Benefits of Contractual Risk Engineering in Light of
Venezuela’s Recent Oil Field Nationalization’, Stanford Journal of Law, Business & Finance, 13(2),
Spring 2008, pp.453-70.

Assignment Questions:

1. What were the major political risks that foreign oil firms faced when they invested in
Venezuela?

2. What were the risk mitigation tools that were used in investment contracts to reduce risk
to investing firms?

3. What, in your view, could the firms have done differently at the stage of contract
negotiations or later to reduce the losses that they suffered due to the contract re-negotiation?

4. Assessing the Need for Risk Insurance: Case Discussion - The Antamina Copper Zinc
Project

Case:

Stephen Sapp, Antamina Copper-Zinc Project: Political Risk Insurance. Case No. 9B02N018,
Richard Ivey School of Business. The University of Western Ontario,. September 2005.

Assignment Questions:

79
1. What are the different options that the sponsoring companies have to finance the project
and what are the positives and negatives of these options?

2. Why are lenders concerned about political risks associated with the project? How do these
risks affect the choice of financing options?

3. Would political risk insurance (PRI) be sufficient to address the risks associated with the
project?

5. Economic Crisis, Institutional Change and Investment Risks: Case Discussion -


Financial Crisis and Institutional Reform in South Korea

Case:

Laura Alfaro and Renee Kim, Transforming Korea Inc. Financial Crisis and Institutional Reform,
Case No.9-708-007, Harvard Business School, 2008.

Assignment Questions:

1. What aspects of government policy drove the Korean ‘economic miracle’?

2. Why did Park’s successors feel the need to change growth strategy?

3. Which were the major institutional changes brought about by the financial crisis of 1997?

4. How would the institutional changes have affected the investment environment for foreign
firms in South Korea?

6. Assessing Economic Risks: Case Discussion – Assessing Risks in India

Case:

F.John Mathis and James B. Keat, India: The Promising Future, Case No. TB0265-PDF-ENG,
Thunderbird School of Global Management, , May 2011.

Assignment Questions:

1. What are the major challenges faced by Trans-Technology Corporation?

2. What are the major concerns or risks that they need to consider before shifting
manufacture from China to India?

3. What are the possible investment options they have?

4. Which, in your view, is the best investment option?

7. Dealing with Societal Concerns: Case Discussion - Responding to National


Emergencies

Case:

80
Timothy Feddersen, Jochen Gottschalk, Lars Peters,
Roche and Tamiflu: Doing Business in the Shadow of
a Pandemic, Kellog School of Management, KEL349-PDF-ENG, Jan 2011.

Assignment Questions:

1. What are the major regulatory risks to Roche in case of a flu pandemic?

2. What alternative strategies could/should Roche consider?

3. Evaluate these alternative strategies from the perspective of market and non-market forces
and implementability.

8. Class Exercise: Quantifying Investment Risks: The Business Environment Risk Intelligencee
(BERI) Index

9. Estimating Country Risk Premium: Assessing the need for risk premiums; measuring
country-risk premiums; Choosing between different approaches; Determinants of firm exposure to
risk; Estimating asset exposure.

Reading:
Jennifer M. Oetzel, ‘Country Risk Measures: How risky are they?’ Journal of World Business, 36
(2), 2002, pp.128-45

10. Estimating Country Risk Premium: Case Discussion

Case:
Mario Wanderley, Paginas Amerelas, Case No.UV0108-PDF-ENG. 2001.

11. Assessing the Regulatory Environment: Case Discussion – De Beers and the Global
Diamond Industry

Case:

David Conklin and Danielle Cadiux, De Beers and the Global Diamond Industry, Case
No.905M40, Richard Ivey School of Business.

Assignment Questions:

1. What were the key elements of De Beers’ strategy to manage the


value chain in the past?

2. Discuss the role of government actions relating to competition and


anti-trust policy in altering De Beers value chain.

3. Evaulate De Beers new strategy. Would it be enough to meet


government concerns? Would it benefit society?

12. Analyzing host-nation legal systems: Case Discussion - Responding to legal reform

Case:

81
Tao Zhigang, Emily Ho, The Whistle Has Blown: How should Tetrapak Respond to China’s
Imminent Anti-Trust Law, University of Hong Kong, HKU407-PDF-ENG, Jun 2005.

Assignment Questions:

1. Would the new anti-trust law be able to deal with monopolies that exist in the Chinese
market?

2. What would be the impact of the law on foreign firms and domestic firms? From the
comparison of the existing and new law given in Exhibit 2 do you feel that the law favors
domestic firms over foreign ones?

3. What could Tetra Pak do to protect itself against anti-trust action in China if the new law is
enacted?

13. Investment and Environment Regulation: Case Discussion - Vedanta and Mining
Investments in Orissa

Case:
Biju Paul Abraham and Sriram Hariharan, Mining in the Abode of Gods: Vedanta and Mining
Investments in Orissa (Teaching Case)

Assignment Questions:

1. What in your view were the mistakes that Vedanta made in its investment plan that led to
the situation that it faced at the end of 2010?

2. How could firms better deal with problems that they face while investing in regions where
the investment affects the rights of indigenous people and also has a negative
environmental impact?

3. In what ways could government policy ensure that the investment environment for
extractive industries is improved?

14. Risks in Large Public Private Investment Projects: Case Discussion - The Chad-Cameroon
Pipeline Project

Case:
Chad Cameroon Petroleum Development and Pipeline Project (A): HBS Case No. 9-202-010,
2006.

Assignment Questions:

1. Is the project financially viable for investors?

2. What are the major risks involved in the for the investment consortium?

3. How could World Bank involvement in the project reduce risks for the consortium?

4. What were the negatives of World Bank involvement?

15. Negotiation Exercise: The Macondo Oil Fields

16. Negotiation Exercise Debrief


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17. Designing an Investment Strategy - Scenario Planning

Reading:
Jeanne M. Liedtka, Carl Garrett, Vikas Chawla, James Wininger, Scenario Planning, UV0842-PDF-ENG,
Daarden School of Business, Aug 2007.

18. Lobbying and Risk Mitigation: Case Discussion - Dow Chemicals and EU Regulation

Case: International Lobbying and the Dow Chemical Company (A). Harvard Business School
Case 09-710-027. March 2010.

Assignment Questions:

1. Should Andrew Liveris try to overcome the impact of REACH by discussing the issue
with the European Parliament or should he join forces with other US firms to oppose it?

2. If he chooses the former what are the arguments he could use for reducing the impact of
REACH on Dow?

3. Under what conditions should firms align with competitors for mitigating risks that they
face in investment locations?

19. Managing Business Government Relations: Case Discussion - The Enron Power Project

Case:
Andrew Inkpen, Enron and the Dabhol Power Company, Thunderbird School of Global
Management, TB0159-PDF-ENG, May 2002.

Assignment Questions:

1. Why, in your opinion, did Enron decide to make investments in the Indian power sector.

2. How could Enron have avoided the suspension of the project by the new government in
Maharashtra?

3. What were the bargaining positions of Enron and the Maharashtra government in the
renegotiations that followed the cancellation?

20. Corporate Social Responsibility and Risk Mitigation: Case Discussion - Royal Dutch Shell in
Nigeria

Case:

Ulrich Steger, Aileen Ionescu-Somers,


Revenue Flow and Human Rights: A Paradox for Shell in
Nigeria, Case No. IMD259-PDF-ENG IMD International, Aug 2006.

Assignment Questions:

1. What has made Shell’s operations in Nigeria more risky and more valuable at the same
time?
83
2. Would you advise Shell to pull out of Nigeria?

3. What are the recommendations that you think Benjamin Aaron should make?

31. URBAN MANAGEMENT : ISSUES & STRATEGIES (PP-236)

Course Outline and Session Plan

Course Name: Urban Management: Issues and Strategies

Term: PGP II, Term V, 2016

Instructor: Annapurna Shaw

Course pre-requisites: None

Course Objective
This course is designed to highlight both issues and strategies for the better management of the Indian
urban environment. A comparative perspective, however, is encouraged in the understanding of both
problems and strategies. It covers the following topics: (1) Cities, economic liberalization and urban
management; (2) organizational framework for urban management and urban governance: the structure of
urban administration in India; constitutional provisions, implications of the Constitution (74th
Amendment) Act, 1992, urban governance models and agents; local economic development;(3) urban
finances: fiscal domain of urban local bodies, their revenues and expenditures, new financial initiatives; (4)
urban land management: characteristics of the land market and existing land policy, strategies for more
efficient land management; urban housing market, supply side constraints and incentives; (5) Water supply
and sanitation: existing structures and alternative strategies; (6) solid waste management: existing policy and
new directions; (7) Urban transport: towards sustainable solutions

Pedagogy

The mode of instruction will be lectures and class discussions. Students will be expected to work in groups
of 3-4, choose a project topic for the delivery of a report and presentation. They are also expected to read the
readings, particularly those related to cases so as to enable more class participation.

Evaluation method

Group Project 45% weight subdivided as follows:


First presentation by each team ……. 10%

Final presentation at term end ……….. 10%

Written report ……………………… 25%

Class participation…………………. 10%

End term exam …………………… 45% weight

Term 5, 2016
84
Urban Management: Issues and Strategies
Contents and Session Plan with Reading List

Week & Description


Session
Week 1 Introduction to the course: discussion of course and its contents;
Session 1 Cities as solutions in an urbanizing world
Defining urban management and understanding the broader context
Readings:
UN Centre for Human Settlements.1996. “Cities as solutions in an urbanizing
world.” Reprinted in The Earthscan Reader in Sustainable Cities edited by D.
Satterthwaite, London: Earthscan Publications, 2004, pp. 55-61.

Urban growth: Drivers and components


Session 2 Indian urbanization trends and its implications for planning: Looking at the
entire urban system
Readings:
Subaltern urbanization
Denis, Eric et al. 2012. “Subaltern Urbanization in India”. Economic and
Political Weekly, July 28, pp 52-62.

Week 2 Looking at the city: structure, change, economic drivers


Session 3

Session Legacy of the built environment: The aging city and conservation
4 Guest lecture

Discussion of team projects, formation of teams


Week 3 The structure of urban administration in India: Central level
Session 5 Role and functions
23 Sept. The Centre’s focus on urban sector reforms
JNNURM (Jawaharlal Nehru National Urban Renewal Mission);AMRUT
(Atal Mission for Rejuvenation and Urban Transformation); Smart Cities

The structure of urban administration in India: State and local level


Session The local level—role and functions
6 Changes after the 74th Amendment Act
25 Sept. Readings:
Savage, David and Dasgupta, Shubhagato. 2006. ‘Governance framework for
delivery of urban services.” India Infrastructure Report, 2006. Pp. 42-58.
Ramanathan Ramesh. 2007. “Federalism, Urban Decentralisation and Citizen
Participation.” Economic and Political Weekly. Feb. 24, pp. 674-681.
Week 4 Governance at the local level
Session 7 Readings:
Devas, Nick. 2001. “Does city governance matter for the urban poor?”
International Planning Studies. 6 (4): 393-408.
Ahluwalia, Isher Judge, 2014.”Set standards and reform to deliver public
services: Karnataka” From the author’s book Transforming our Cities;
Postcards of Change, Harper-Collins, India
85
Session 8 Finances of urban local bodies and new financial initiatives
Reading:
Mathur, Om Prakash. 2006. “Urban Finance”. India Infrastructure Report,
2006, pp 82-105.
Week 5 First Presentation of Work/Progress on Group Project
Session 9 During the regular class time.

Session 10 Characteristics of the urban land market


Urban Land management: inner city, outer city, urban periphery
Readings:
Balchin, Paul N., Bull, Gregory H. and Kieve, Jeffrey L. 1995. “The market
and the location of urban land uses.” from Urban Land Economics and Public
Policy (5th Edition), pp. 48-56, Hampshire: Macmillan Press.
Chakravorty, Sanjoy. 2013. “A new price regime: Land markets in urban and
rural India,” Economic and Political Weekly, 48 (17): 45-54.

Puja No classes from 10th October to 16h October 2016


Vacation
Mid-term No classes from 17th October to 21st October 2016
Exam
Summer No classes from 25th October to 31st October 2016
Placement
Week
Week 6 Characteristics of housing
Session The housing market in India
11 Readings:
Sivam Alpana and S. Karuppannan. 2002. “Role of state and market in
housing delivery for low-income groups in India.” Journal of Housing and the
Built Environment. Vol. 17, pp 69-88.
*National Housing Policy, 2007
Mukhia, Vinit. 2004. “The Contradictions in Enabling Private Developers of
Affordable Housing: A Cautionary Case from Ahmedabad, India.” Urban
Studies, 41 (11): 2231-2244.
Low cost housing and slum upgradation
Patel, Sheela, 2013. “Upgrade, rehouse or resettle? An assessment of the
Indian government’s Basic Services for the Urban Poor (BSUP) programme”,
Environment and Urbanization, 25, (1): 177-188.
Satterthwaite, David, 2010. “Upgrading slums: With and for slum dwellers.”
Economic and Political Weekly, 45(10): 12-16.

Session Guest lecture on land related environmental conflicts in the city’s periphery
12
Week 7
Session Improving municipal administration and service delivery through e-
13 governance
Guest lecture
Contd. Guest Lecture
Session
14

Week 8 Water supply


86
Session Existing situation of water supply in major cities
15 Urban water sector reforms
Readings:
Wagle, Subodh et al, 2011. “Review of Reforms in Urban Water Sector:
Institutional and Financial Aspects”. India Infrastructure Report, 2011.
Sohoni, Milind, 2012. “World Bank’s Urban Water Report on India: thinking
backwards,” Economic and Political Weekly, 47 (47 & 48): 22-26.
Conners, Geneieve. 2005. “When utilities muddle through: Pro-poor
governance in Bangalore’s public water sector.” Environment and
Urbanization, 17(1): 201-217.

Sanitation (waste water cycle)


Session Existing situation
16 New models for household sanitation delivery and wastewater management
Reading:
Wankhade, Kavita. 2015. “Urban Sanitation in India: Key Shifts in the
National Policy Frame,” Environment and Urbanization, 27 (2): 1-18.
Kamyotra, J.S and Bhardwaj, R.M. 2011. “Municipal Wastewater
Management in India.”India Infrastructure Report, 2011, pp. 299-311.
Parkinson, Jonathan and Tayler, Kevin (2003). “Decentralized wastewater
management in per-urban areas in low-income countries,” Environment and
Urbanization, 15 (1): 75-89.

Week 9 Solid waste management


Session Readings:
17 Sharholy, Mufeed et al. 2008. “Municipal Solid Waste Management in Indian
cities-A Review,” Waste Management (Elsevier), Vol. 28, pp. 459-467.
Agarwal, Vivek S. and Gupta, Neeraj. 2008. “Models for solid waste
management in India”. India Infrastructure Report, 2008. Pp. 187-190.
Ahluwalia, Isher Judge. 2014. “Pammal cuts its waste: community at work”
From the author’s book Transforming our Cities; Postcards of Change,
Harper-Collins, India.
Session Transport and Course Summing Up
18 Existing situation
New models of public transport
Readings:
*National Urban Transport Policy, 2006. 41pp.
Agarwal, O.P. 2006. “Urban Transport”. India Infrastructure Report, 2006. Pp.
106-129.
Ahluwalia, Isher Judge. 2014. “A PPP ticket to ride in Indore”
Ahluwalia, Isher Judge. 2014 “Bringing speed to bus rides: Ahmedabad” from
author’s book Transforming our Cities; Postcards of Change, Harper-Collins,
India.
Week 10 Student presentation of group projects
Session
19
Session Student presentation of group projects contd.
20
Week 11 End Terms Exams- 5 December to 9 December 2016
*These readings are not in the handbook. They will be put up on the web.

32. Managing Public –Private Partnerships (PP-264)


87
Course Title-Managing Public –Private Partnerships
Course Coordinator-Prof. Bhaskar Chakranarti/Prof. Ashok Banerjee/ Prof. V.K Unni

Course Background and Objectives:

Learning Objectives*
1) Internationalism: The course should consistently focus on international and multicultural settings and challenges and
promote internationalism as value, attitude and approach to cultural, social and gender differences.

2) Business Embeddedness:The course should engage corporate partners as guest speakers, providers of “live cases” (real
challenges put to the class for discussion/solution).

3) Responsible Citizenship: The course should challenge participants to discover, challenge and develop their own values,
attitudes and behavior, and to reflect on and take responsibility for the broader environment in which their actions take place.

4) Reflective Critical Thinking: The course should employ a managerial decision-making approach including reflecting on
consequences of decisions and actions.

5) Comprehensive Leadership: Students should be able to reflect on their own strengths and weaknesses, their values and
behaviors, and how their actions as leaders impact other people, organizations, society and the environment.

Note: * Pls mark the corresponding no of the learning objectives against session no,wherever applicable.

Session No Learning Session Details


Objectives
1 Reflective Public-Private Partnerships (PPP) - Mechanisms, Funding, and Partner
Critical Relationships
Thinking (4)
Readings:
Gerrard, Michael B. (2001). Public-Private Partnerships. Finance and
Development, 38(3).
Skelcher, Chris (2005). ‘Public-Private Partnerships and Hybridity’. In
Ewan Ferlie et al (eds.), The Oxford Handbook of Public Management.
Oxford: Oxford University Press.
2 Inernationalism, Public/ Private: Alignment of interests, competitive advantages, scalability
Business
Embeddedness, Case: HBS Case (2012) on GlaxoSmithKline in Brazil
Reflective
Critical Reading:
Thinking Huxham, Chris and SivVangen (2000). ‘What makes partnerships work?’
(1,2,4) In Stephen P. Osborne (ed.), Public Private Partnerships. London:
Routledge.
3 Internationalism, Deciding under uncertain PPP conditions
Reflective
Critical Case: HBS Case (2010) on Bardhaman, West Bengal: Shrachi Group and
Thinking, the West Bengal Housing Board
Comprehensive
Leadership
(1,4,5)
4 Internationalism, PPPs for the Social Sector
Business
Embeddedness, Reading:
88
Session No Learning Session Details
Objectives
Responsible
Citizenship Chattopadhyay, Tamo and OlavoNoguiera (2013) ‘Public private
(1,2,3) partnership in education: A promising model from Brazil’, Journal of
International Development, Wiley, DOI: 10.1002/jid.2930.

5 Reflective Legal Aspects of PPP Contracts


Critical
Thinking, Reading:
Comprehensive
Leadership Yescombe, E. R. (2007). Public Private Partnerships: Principles of Policy
(4,5) and Finance. Elsevier. Selected Chapters.

6 Reflective Legal aspects of off-take agreements, concessions agreements Turn-key


Critical EPC Contracts
Thinking,
Comprehensive Reading:
Leadership Yescombe, E. R. (2007). Public Private Partnerships: Principles of Policy
(4,5) and Finance. Elsevier. Selected Chapters.

7 Reflective Financial aspects of PPPs


Critical
Thinking, Reading:
Comprehensive
Leadership Yescombe, E. R. (2007). Public Private Partnerships: Principles of Policy
(4,5) and Finance. Elsevier. Selected Chapters.

8 Reflective PPPs and new financial developments


Critical
Thinking, Reading:
Comprehensive
Leadership Yescombe, E. R. (2007). Public Private Partnerships: Principles of Policy
(4,5) and Finance. Elsevier. Selected Chapters.

9 Reflective Managing Risks in PPPs


Critical
Thinking, Reading:
Comprehensive
Leadership Akintoye, Akintola, Matthias Back and cliff Hardcastle (eds.), (2003).
(4,5) Public-Private Partnerships: Managing Risks and Opportunities. Oxford:
Blackwell. Chapters 5 & 6.

89
Session No Learning Session Details
Objectives
10 Reflective Presentation of Projects and discussion on future of PPPs
Critical
Thinking, Reading:
Comprehensive
Leadership Ghobadia, Abby, David Gellar, Nicholas O’Regan and Howard Viney
(4,5) (2004). Public Private Partnerships: Policy and Experience. London:
Palgrave Macmillan. Chapter 18.

Evaluation Scheme :
End-term examination 60%
Project assignment 30%
Presentation 10%

33. Mergers, Acquisitions and Divestments : Economic & Financial Aspects of


Corporate Control (SM/EC-250)

Course Objectives:
The objectives of this course are two-fold. First, the course is intended to provide a comprehensive
background in the strategic, economic, financial and organizational aspects of mergers, acquisitions, and
divestments. Secondly, the course will seek to provide a practical framework for managerial decision-
making in the context of acquisition activities, for example the determination of exchange ratios between
the common stocks of the acquired and acquiring companies. Being a seminar course it will feature
inputs from the instructors, and readings and case study presentations by the students, and a project
actually studying a recent merger.

Course Content:
The topics to be covered are theory and evidence on the economics effects of the different kinds of
acquisition activities; with focus on the two main types, namely mergers and tender offers; basic evidence
on inter-firm tender offers, divestitures and spin-offs, and proxy fights; antitrust, taxation and other legal
issues in mergers and acquisitions; theory and evidence on the economic effects of anti-takeover
activities; evidence on the value of corporate control; and theory and evidence on the effects of
competition among acquiring companies for target firms.

Other topics to be covered include the valuation of target firm, determination of exchange ratios between
the common stocks of the acquired and acquiring companies, issues in organizational control and post-
merger performance etc. Strategic issues in diversification strategy based on acquisitions shall form an
important part of the course The growing trend of cross-border mergers will also be elucidated. The
regulations on merger activity in India and other countries will also be discussed. Evidence from Indian
experience in mergers and post-acquisition performance shall be provided, wherever possible.

The following is the list of topics to be covered:


1. Conceptual Framework
2. Mergers in Growth & Diversification Strategy
3. Merger Valuation and Corporate Strategy
4. Anti-takeover Defensive Tactics
5. Accounting and Taxation Issues
6. Inter-firm Tender Offers & Mergers: Basic Evidence
7. Wealth Effects of Merger Activity & Stock Price Reaction
8. Value of Corporate Control and competition for Corporate Control
9. Organisational Impact of Takeover Activities
10. Antitrust Issues and Mergers
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11. Post-merger Performance
12. Strategic Issues in Cross Border Mergers

Text:
The reading material for the course will consist of selected articles published in Economics, Finance, and
Strategy journals and a book “Mergers, Acquisitions and Corporate Restructurings” by Patrick A
Gaughan (Wiley India) A reading list will be provided along with photocopies of articles. Some books
will be on available on the RESERVE basis for the duration of the course.

To complete the course successfully, the students will be required to satisfy the following four types of
requirements:

1. Presentation of assigned reading material in class/class participation 30%


2. Class Quizzes and Tests: 30%
3. Report on an assigned project 40%

While presenting a specific reading, the student shall be expected to highlight, amongst other things, (a)
The main objective or hypothesis, (b) review the empirical evidence, (c) conclusions drawn from the
evidence, (d) theoretical or policy issues raised in the paper, (d) compare the results/conclusions to other
papers presented before (or later) on the course (e) highlight the main learning and their relevance to
India.

One or two students shall be asked to comment on the presentation and the class participation marks
given on basis of their intervention. In other words, all the students are expected to read all the articles

All students will have to study a recent merger/takeover. The project will be carried out in two parts. The
first part of the project will address issues of strategy, competition, industry structure and valuation of the
target firm. Schedule of project submission and detailed lecture / discussion plan will be announced later

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Indicative List Readings
(Will be modified and changed with recent papers/ case studies) :

A: (1-4) are survey articles, describing research on reasons for mergers, market for control and
corporate governance, evidence on stock price reaction and wealth effects of mergers, their division
between target and bidding firm shareholders etc.)

1. Jensen, M.C. and R.S. Ruback, "The Market for Corporate Control: The Scientific
Evidence," Journal of Financial Economics (JFE), April 1983.

2. Andrade, G., Mitchell & Stafford, “New Evidence and Perspectives on Mergers”, Journal of
Economic Perspectives, Vol.15(2),2001

3. Jensen, M.C, “ The Takeover Controversy”,

4. Holmstrom, B. and Kaplan, “Corporate Governance & Merger Activity in US: Making sense of the
1980s & 1990s,” Journal of Economic Perspectives, Vol. 15(2) 2001.

B: 5-10, discuss the conflict between managers, directors and shareholders, the alternative hypothesis on
the reasons for wealth effects of merger announcement (like market power or information effect) and
their testing.

5. Jensen, M. & Warner, “Distribution of Power Among Cooperate Managers, Share holders and
Directors.” JFE, 20,1988.

9. Bradley, M., Kim and Desai, “The Rationale Behind Interfirm Tender Offers: Information or
Synergy?” JFE, ii,1983.

10. Stillman, R. “Examining Antitrust Policy Towards Horizontal Mergers,” Journal of Financial
Economics , 1983

11. Eckbo B.E., “Horizontal Mergers, Collusion, and Stockholder Wealth”, Journal of Financial
Economics 11 (1983)

C: Readings 11 & 12 discuss defences and their impact on shareholders; while redaing 13 looks at
diversification objectives and its wealth effect.

12. Ruback R. S., “An overview of Takeover Defenses”.

13. Linn, S. and J. J. McConneoll, "An Empirical Investigation of the Impact of `Anti-
takeover' Amendments on Common Stock Prices," Journal of Financial Economics, April 1983.

d: Readings 13-17 are on post merger analyses. They provide evidence on post merger performance and
also on the process that seems to distinguish value creating mergers from those that destroy shareholder
value.

14. Economist “Merger Brief”, July-August,2000

15. Ravenscraft, D.J. and F.M.Scherer, "The Profitability of Mergers", International Journal of Industrial
Organisation, 7 (1989).

16. Kugler, K, D.C.Mueller, B.B.Yortoglu and C. Zulehner, “The Effects of Merger : An International

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Comparison”, mimeo, University of Vienna

17. Healy, P.M., K.G.Paleper and R. S. Ruback, “Which Takeovers are Profitable? Strategic or
Financial?” Sloan Management Review, 1997.

18. F. M. Scherer. “Corporate Takeovers: The Efficiency Argument”, JEP, Winter, 1988

E: The last three readings provide us with insights into the integration process and issues for making
mergers a value creating activity.

19. Haspeslagh Philippe C. and David B. Jemison, “Acquisitions – Myths and Reality”. Sloan
Management Review, 53, 1987.

19 . R. A. Ashkenas, “Making the Deal Real : How GE Integrates Acquisitions”, HBR, Jan 1998

20. Baker, George Pand K.H.Wruck, “Organisational Changes and Value Creation in Leveraged Buyouts”
Case of O.M.Scott & Sons Co.,” JFE, 25,1989.

F : (Cases/Readings 1-2 are important in demonstrating the method used to estimate merger gains using
Event Study Method. The cases of Conoco and Cities Services also serve as a model for the project all
students shall be expected to undertake by studying a contemporary merger.

21. Ruback, R. S., "The Conoco Takeover and Stockholder Returns,” Sloan Management Review, Winter
1982, Vol 23, No.2

22. Ruback, R.S., The Cities Services Takeover”, Journal of Finance, May 1983.

23. Beatrice : A Study in the Creation and Destruction of Value.

24. Arrow Electronics : The Schweber Acquistion.

Books:
Textbook (From Office):. P A Gaughan “Mergers, Acquisitions and Corporate Restructurings” Fifth
or Sixth Edition (Wiley India)

BOOKS FROM LIBRARY :


1. Weston, J. F., K.S. Chung & S.E Hoag, Mergers, Restructuring, and Corporate Control, Prentice Hall,
New Delhi, 2007
2. Auerbach, Alan J.(ed), Mergers and Acquisitions, University of Chicago Press, Chicago, 1988.
3. Peter O. Steiner, Mergers Motives, Effects, Policies, University of Michigan, Ann Arbor, 1975
4. Kenneth M. Davidson, Mega-Mergers, Ballinger Publishing Company, Mass., 1985
5. S.J.Lee & R.D.Coleman, Handbook of Mergers, Acquisitions and Buyouts, Prentice Hall, New Jersey.
1991
6. Hubbard, Nancy, Acquisition: Strategy and Implementation, Macmillan, 1999

34. CORPORATE SOCIAL IRRESPONSIBILITY (SM -247)

PGDM Programme in Management


Credits 3

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Course Name Corporate Social Irresponsibility
Term V
Names of the Course Coordinator Biswatosh Saha
Name of the Instructors Biswatosh Saha
Course Prerequisites (if any) None
Restrictions on course registration 45 [Maximum 5 STEP students]

Course Background and Objectives:

The word ‘irresponsibility’ in the title is a deliberate rhetorical provocation to induce reflection on
notions of ‘responsibility’ and to inspire a search for multiple ways of organizing if one feels the current
corporate organization order is imperfect. This course takes a close look at the corporate form of
organizing, with its specific ‘legal privileges and trappings’, to explore the effect of corporate action and
decisions on other stakeholders. We view current corporate practices, rooted in contemporary legal and
property rights(and liability) forms, as historically contingent, rather than as universal. Practices of other
periods and other societies(often non-corporate world in our own times) will provide a counterpoint
through the course. We would also recognize several forms of organization of commerce [and
commercial rationality or interests] and of group [corporate] interests other than corporate [large
business] form and explore its significance.

This course is designed with the belief that as a powerful social group in contemporary times, corporate
managers need to act as elites, who in every epoch has had to rise above their own interests to lead
society. That necessarily requires understanding of other groups, designing of institutions to share power,
mediation in conflicts and above all recognizing that managerial practices are not universal but sectarian.
This is thus a reflective course. It will help us problematize ‘responsibility’ – looking into how cultural
and/or institutional specificities have crafted different implicit notions of responsibility with quite deep
consequences.

Issues that would be explored include alienation among managers, environmental degradation especially
loss of diversity, deskilling of work and standardization, consumer disenchantment, nature of relation of
corporate groups with the political system and legal/regulatory authorities to mention a few. The course
will help students grapple with several contemporary conflicts of large business at several societal
interfaces.

Apart from the usual method of lecture, the course will also use films/documentaries astools for learning
to bring the wider field into the class.

We will use historical narratives to tease open the deeper meanings / functionalities / motivations of
several ‘currently taken-for-granted’ legal/institutional norms that are visible at their time of
formation/institutionalization.

In addition the course will present an opportunity to students to be creative and to explore any
contemporary conflict at some depth – exploring the interface of business with regulations, courts, law,
politics and other specific institutional arrangements.

Following are the broad course objectives:

 Explore contemporary debates on problems with large businesses.


 To provide students with a broad exposure to institutions embedding of corporate actions.
 To help students to think about alternatives to the present emphases on large businesses and its
attendant managerialism.

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Text to be provided:

Course Package to include the prescribed readings.

Evaluation Method:

Class Participation: 30
Project: 40
End Term Exam: 30

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Session Plan:
Sessio Description
n
1,2 Lecture/discussion
Topic:Exploring the notion of ‘responsibility’, ‘society’ and ‘corporation’
[Explores how differences in principles in cultural systems, as revealed in deep structures of
respective mythologies, inform understanding of above concepts]

Mode: Story-telling and interpretations of narratives


3,4 Topic: Can a corporation be responsible?
Film: The Corporation
Reading: Korten: When Corporations Rule the World
Post-film Discussion: Reflection on events/actions – its consequences and motives to
motivate the theoretical issues at stake

5,6 Lecture/discussion
Topic: Corporation as a historical legal construct
[Explores limited liability, corporate veil and artificial person concepts focusing on its
specific historical evolution]
Readings: To be announced

7,8 Lecture/discussion
Topic:Corporation as a colonial implant in India
Reading/text: Chapters from ‘Stages of Capital’, Ritu Birla
[Origins of Companies Law, Trust Act in India and why indigenous business community felt
it to be throttling]

9,10 Topic: Cooperatives as a ‘corporate’ organizational form: Origins of the legal concept and
problems in practice
Readings: Gandhi-Bajaj debate/correspondence
Practitioner talk: Specialist on cooperatives in India

11,12 Topic: Corporation and Institutions of standardization


Film:Food Inc.
Post-film discussions: Teasing out the implicit institutional structures as revealed in the
documentary

13,14 Topic: Financialization and rise of new elites


Readings:
‘Fracturing of American corporate elite’
Supplementary reading: Srivastava and Kothari: Churning the Earth

15,16 Topic: Legal structures of resource rights: Corporation and other right holders
Readings: Common assets under ‘Trust’ arrangements (Excerpts from Radhakamal
Mukherjee’s work ‘Local Government in Ancient India’)

Change in structure of land rights in colonial India and its consequences


[Works of Dharam Pal based on archives of accounts of European travellers to India;
NirmalSengupta’s work on common irrigation system under zamindari system in India]

Practitioner talk: Practicing advocates fighting on behalf of client groups in various courts
of India
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17,18 Topic: Corporations and Institutions of labor organization
Readings: To be announced
[Explores institutions of trade/skill organization in different contexts – particularly German
work organization, medieval Indian ‘sreni’ system and contemporary industrial relations
order]

Practitioner talk: Trade Union leaders/organizers [speaker name to be announced]

19,20 Topic: Project Presentations!

35. GLOBAL STRATEGIC MANAGEMENT (SM-248)

Term V
Course: Global Strategic Management
1. Introduction

The world of business has been witnessing two major shifts in the new millennium. First, with the saturation
of developed economies and the emergence of burgeoning middle class in developing economies the battle
place for global leadership in business is rapidly shifting towards emerging markets. This has also given rise
to an acute need for global managers from developed economies with requisite knowledge and skills and most
importantly with a global outlook and mindset to provide leadership in integrating businesses across
developed and emerging economies. Second, with the emergence of a vast pool of talented and educated
knowledge workers riding on the demographic shifts towards more young population, internationalizing firms
from the emerging economies like China and India (often called the emerging multinationals or EMNCs)
show immense potential to be at the fore front of global business leadership in the foreseeable future. This has
also given rise to an acute need for global managers from these economies with requisite knowledge and skills
and most importantly with a global aspiration, outlook and mindset to provide leadership in managing cross
border operations.
2. Objectives

This course derives its logic from the increasing globalization of business and seeks to develop concepts and
tools for designing and implementing effective strategies in the rapidly changing global business environment.
The course will build on the concepts and issues raised in the core strategic management course. In particular,
the course objectives are as follows:
 To challenge you to think critically about various facets of globalization of business and dynamics of
global competition.
 To familiarize you with the problems and perspectives of doing business across national boundaries.
 To develop an understanding of conceptual and managerial motives, issues and intricacies in foreign
market entry and management of cross border operations;
Global Strategic Management Course Outline

97
 To familiarize you with some unique organizational challenges in a multinational corporation and how
strategy gets formed in such settings;
 To foster an appreciation of the external forces, ethical concerns and human values that influence and
shape the business manager’s job in the global context.
 To assist you in acquiring the skills necessary to analyze, assess, design and implement business strategies
and programs that transcend national boundaries.

3. Course Pedagogy

To capture the pragmatic, action-oriented nature of a manager’s job involved in international business, we
shall primarily use the case method of teaching, and supplement the case discussions with readings, lectures,
role plays or other inter-active exercises, as necessary. The skills this course seeks to develop can be
sharpened only through practice. This calls for exposing you to the "real world" in the classroom! The case
method has been found to be the most suitable pedagogical device in this regard. It enables one to simulate, as
closely as is feasible, the "real world" in the class room. The simulation is complete and importantly effective
only when you come fully prepared to the class. Case and reading material are assigned for each day. It is
mandatory that all participants will read and thoroughly analyse the case/reading before coming to the class. If
a trade off has to be made for some reasons, it has to be made in favour of the case assigned. Thus the onus for
deriving maximum value from this course lies as much with you as with the instructor! Your central goal
should be to develop your own personal synthesis and approach for identifying and addressing key strategic
issues facing a company in international business.
The participants are not unfamiliar with the case method. Nevertheless it will be worthwhile to reemphasize
here "what goes into a case preparation." Good Case preparation requires you to mentally "get inside" the
case. Do not approach a case as you would an article in a magazine. You are not an observer. You are a
participant in the decision process. Put yourselves in the shoes of the decision maker. Feel the excitement/the
challenges/the frustrations he/she feels with respect of data limitations, trade-offs, limited resources, political
conflicts or whatever. While in class share your ideas with others as we work jointly to resolve the issues.
Argue your case cogently. Seek support for your arguments from the case facts and where data is missing
make reasonable assumptions (please do inform the rest of us in the class about the assumptions you have
made!). Do note that a real business environment does not generally pose clear questions or answers.
Managers rarely know whether they have made the “right” strategic decisions. Strategy cases simulate this
ambiguity. As such, there are no correct solutions to the cases that you will Global Strategic Management Course

Outline undertake to analyze and the instructor will offer none, although he may provide his opinion about
your logic. Therefore, the most important aspect of this course is the quality of your questions and answers,
and the quality of your thought processes. Also, your ability to communicate your logic and respond to
questions about your analyses and recommendations is important.
For effective learning it is strongly recommended that you discuss each day’s case in small study group and
come to the class prepared with your own specific recommendations/conclusions. The pre-class group
discussion would provide you the opportunities to debate the issues and sharpen your arguments even before
you step into the class. Also, discussion in your group after the class for consolidating the learning of the day
would be very useful.
4. Instructor

Prof. Sougata Ray is the primary instructor for the course. His Office (B – 307) is located at the Second Floor
of the B Block. He is available on call at EXT. 797 (O) / 290 (R), +919830045882 and on e-mail at
sougata@iimcal.ac.in. For helping you further your learning, he would be available for discussions with
prior appointment. Please send all your electronic submissions to his mail id.
5. Evaluation Scheme

The overall grade in the course will be much influenced by how much a Weightage
participant has learned through daily preparation for the class, from the
class room discussions and post class reflection. Individual assignments,
class participation, presentations, and an end term examination will be the
elements used for evaluating the student’s performance in the course. The
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course grade will be based on the following: Component
Class Presence & Participation 25%
Group Assignment/Project & Presentations 40%
End Term Examination 35%

5.1 Class Participation


Ability to present one's ideas concisely and persuasively and to respond effectively to those of others is a key
success factor in any leadership position. One of the goals of this course is to help you sharpen that ability.
Accordingly, we expect you to effectively participate in the class-analyze, comment, question, discuss. Please
remember that we are all learners as well as facilitators to one another’s learning. Participation enables you to
learn from your colleagues and to help them learn from you - that is what the discussion based pedagogy is all
about. We trust that you will come with an open mind to learn and to accept new perspectives. Irrespective of
our experience, there are always new things to learn. We look forward to opportunities to learn new
perspectives from you. We strongly encourage, value and reward effective participation. We have observed
that students typically tend to under-estimate, rather than overestimate, the worth of what they have to say. If
you are ever in doubt, please speak up instead of keeping quiet. We also expect the class to help deal with
people who monopolize the discussion without contributing to the learning process of others. Please
remember that at the end of the course individually all of you have to provide me a consolidated letter
grade (A+ to F) evaluating the contribution made by each of your fellow students in the course. The
grade for class participation should be based on both quality and frequency of contribution to the class.
If for some reason you are not fully prepared on a particular day, let me know before class so that we do not
embarrass you inadvertently. If you must miss a class, please let us know in advance so that your absence will
not be unexplained.
5.2 Group Assignment and Presentation

You will be a part of a self-assigned learning team, comprising four-five students. Each group will name a
group leader who will be the group-professor liaison and will also be responsible for calling to my attention
any problems within the group. Each student group will be asked to make presentations on a) one pre-
assigned case; b) pre-assigned readings for a session and c) on “what’s in the news”. The case presentation
should be no more than 30 minutes duration. The guideline questions given in the detailed session plan later
would help you prepare for the case presentation. The article presentation should be no more than 10 minutes
duration. For preparing for the presentation of the assigned reading please read through the article critically
with a view to answer the following four questions:
• What are the core ideas presented in the article?
• What is your assessment of the validity and relevance of these ideas?
• What is the implication of these ideas – to a business professional.

What is in the news?


Each group will present one latest piece of news of global strategy for any chosen company. The date of
presentation will be assigned at the beginning of the term. The presentation should be about 15-20 minutes
and use a short PowerPoint (no more than 5 slides). You should email me a copy of the news at least one day
before the presentation. You can use sources such as company websites, Business Week, Fortune, The Wall
Street Journal, and other reliable news sources. The news should be important enough that you think students
in class should know. The purpose of this assignment is to enrich our knowledge of current global issues
beyond what would be covered in the course.
Group Project
The group project will involve detailed analysis of international expansion of an emerging economy company
going global or any other multinational company’s business in emerging markets. Alternatively, the project
can involve evaluation of opportunities and challenges in doing business in a promising foreign market. The
project will require you to do the following:
1. Identify and pick international expansion of a company OR a promising foreign market that your group
finds most interesting. Some of the sources of such internationalization strategies are announcements by
senior managers of organizations as reported in business news papers, business magazines, electronic media

99
and annual financial reports of organizations. You can refer to Ruchir Sharma’s Breakout Nations for
identifying promising foreign markets.
2. Once your group has identified the topic and/or the company, submit a one-page project proposal by the
end of the second week.
3. Brief feedback shall be given to you on your project proposal, after which you can freeze the plan and start
working on the project.
4. Extensive collection of secondary data is expected and primary data collection is encouraged. Even if you
do not have access to managers of the organization, you will be able to obtain information from other
stakeholders such as dealers, customers, shareholders, analysts, industry experts, etc.
5. You will submit a project report that identifies and outlines the key internationalization
challenges (for promising foreign market project – business issues and challenges likely to be faced
by a company of your choice for doing business in that market) and your
recommendations for a successful implementation (Not more than 20 pages of double spaced text and 10
pages of supportive documentation).
We will be happy to assist you in any way possible to help maximize your learning from the project and
encourage you to interact with me on your projects as often as you like.
6. Course Feedback

I give a lot of importance to feedback from students. Instead of waiting for one feedback at the end of the
course, I would rather prefer feedback on every session. This feedback should ideally cover at least (a)
content, (b) mode of class proceedings, and (c) overall effectiveness / learning value. Other comments on
the session are also welcome. Please e-mail your feedback to me.
7. Reference Books & Journals

Cases and Readings:


The course pack will include all reading materials for the course. In addition, short videos may be used in the
class to illustrate or strengthen some of the conceptual ideas discussed.
Recommended Reference Books:
Following are some of the books available in our library that you may refer for additional knowledge and
understanding other than the readings and cases given in the course package.
Ghemawat, P. (2008). Redefining Global Strategy – Crossing Borders in a World Where Differences Still
Matter, Harvard Business School Press, Boston.
Ghemawat, P. (2013). World 3.0 - Global Prosperity and How to Achieve It. Harvard Business School Press,
Boston.
Hill, Charles, W.L. (2008). Global Business Today, McGraw-Hill Irwin, New York.
Hill, C.W.L. (2010). International Business Tata McGraw-Hill (14th Edition).
Christopher A. Bartlett and Sumantra Ghoshal. Transnational Management : Text, Cases, and Readings in
Cross-border Management (4th ed.) / Boston : Irwin/McGraw Hill, 2005
Sharma, Ruchir (2012). Breakout Nations: In Search of the Next Economic Miracles, Penguin.
Tarun Khanna and Krishna Palepu, (2010). Winning in Emerging Markets: A Road Map for Strategy and
Execution. Harvard Business School Press.
From time to time you should also refer to various issues of some of the popular management journals such as
Academy of Management Executive, Business Horizon, Columbia Journal of World Business, European
Journal of Management, Far Eastern Economic Review, Harvard Business Review, California Management
Review, Multinational Business Review, and Sloan Management Review.

Sessions Plan
Session Duration: 1.5 hours
Module 1: Logic & Foundation of International Business
Session 1 (September 14)
Topic: Introduction to the Course & Recap of Basic Concepts of Strategy
Readings:
1. Course Outline
Session 2 (September 15)
Topic: Understanding Globalization and Implications to Firms
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Readings:
1. Friedman, T.L. (2005). “It’s a Flat World, After All”, The New York Times.
2. Ghemawat, P. (2007). “Why the World’s Isn’t Flat”, Foreign Policy, pp.54-60.
3. Friedman’s Response to Ghemawat, Foreign Policy
4. Ghemwat’s Response to Freidman, Foreign Policy
Discussion Question:
1. Who do you agree most with? Why?

Session 3 (September 16)


Topic: Globalization & Strategy: Issues & Concerns
Case: Asian Paints Ltd.: International Business Division
Reading:
1. Monti, J. A., and Yip, G. S. (2000) “Taking the high road when going international,” Business Horizons.
2. Alexander, Markus and Harry Korine (2008). “When You Shouldn’t Go Global?” Harvard Business Review,
December.
Discussion Questions:
1. What accounts for APL’s success in India?
2. Why did APL internationalize?
3. Give its track record on the home market, why are IB division’s returns low?
4. What are the key issues facing Jalaj Dani?
5. What should be Jalaj Dani’s priorities?

Session 4 (September 21)


Topic: Globalization & Strategy: Foundational Concepts
Case: Case: Asian Paints Ltd.: International Business Division (Contd.)
Session 5 (September 22)
Topic: Globalization & Strategy: Foundational Concepts
Case: Embrear: The Global Leader in Regional Jets
Reading:
1. Porter, Michael E., (1990). “The Competitive Advantage of Nations,” Harvard Business Review, March-April
1990.
2. Bernstein, A. (2004). “Shaking Up Trade Theory”, Business Week, Dec 6, 2004
Discussion Questions:
1. How has Embrear managed to emerge as a global competitor in a hi-tech industry from a developing country?
What are the advantages and disadvantages that Embrear leverages from its country of origin in Brazil?
2. To what extent Embrear’s success can be attributed to the role played by Brazilian government?
3. Do you agree with Botelho’s decision to re-emphasize military business? What is the significance of French
Alliance?
4. What can Embrear do to enhance its international competitiveness?
Session 6 (September 23)
Topics: Industry Globalization, Competition & Strategy
Case: Swatch & the Global Watch Industry
Reading:
1. De Kluyver, Cornelis A. (2010), “The Globalization of Companies and Industries,” Fundamentals of Global
Strategy, HBSP, (Chapter 2)
2. Yip (1994). “Industry drivers of global strategy and organization” Thunderbird International Business Review.
Discussion Questions:
1. In what ways the watch industry global?
2. Why did industry leadership change hands from time to time?
3. Where does the watch industry go from there?
4. What specific course of action would you recommend to Hayek?
Note: One page proposal for the Group Project idea is due on September 27
Module 2: Strategy Development for Global Expansion
Session 7 (September 28)
Topic: Understanding and Analyzing Global Business Environment
Case: The Globalization of CEMEX
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Reading:
1. Ghemawat, Pankaj. “Distance Still Matters.” Harvard Business Review, 2001.
2. Bremer, Ian. “Managing Risk in an Unstable World.” Harvard Business Review, 2005.
3. Westney, D. Eleanor “Global strategy and global business environment: changing models of the global business
environment” Global Strategy Journal, 2011.

Session 8 (September 29)


Topic: Strategy for Creating Global Competitive Advantages
Case: The Globalization of CEMEX (Contd.)
Reading:
1. Ghemawat, Pankaj. “Managing Differences: The central challenge of global strategy” Harvard Business Review.
2. Gupta & Govindarajan, “Converting Global Presence into Global Competitive Advantage” Academy of
Management Perspective, 2001.
Discussion Questions:
1. What benefits have CEMEX and the other global competitors in cement have derived from globalization?
2. Analyze how CEMEX has outperformed its global competitors in the cement industry, keeping Holderbank as a
reference.

Session 9 (September 30)


Topic: Planning Market Entry Strategy
Case: Citibank: Launching the Credit Card in Asia Pacific (A)
Reading:
1. Target Markets and Modes of Entry, Fundamentals of Global Strategy, Chapter 5
2. Nielsen, C. (2005). “The Global Chess Game...Or Is It Go? Market Entry Strategies for Emerging Markets.”
Thunderbird International Business Review. 47(4), 397-427.
3. Horn, J.T., Lovallo, D.P. and Viguerie, S.P. (2005). “Beating the Odds in Market Entry”, The McKinsey
Quarterly, No. 4, 2005.

Discussion Questions:
1. Should Citibank launch the card product in Asia Pacific?
2. How should Citibank position its card, if it decides to launch?
3. Which countries should Citibank enter first? Which countries should it avoid?
4. If you chose not to introduce the card what would you do to achieve the $100 million earnings target by 1990?
What kind of branch banking products should the bank offer?

Session 10 (October 5)
Topic: Executing Market Entry Strategy – Cross-Border Mergers and Acquisitions
Case: Havells India: The Acquisition of Sylvania
Reading:
1. Kale, Singh and Raman “Don’t integrate your acquisitions, partner with them”, Harvard Business Review, 2009.
Discussion Questions:
1. What is driving the internationalization of Havells?
2. Should Havells proceed with the acquisition? What are the value propositions for the acquisition? What are the
risks?
3. How would the globalization of Havells affect its performance? Revenue? Profits? Capabilities?
4. Would you recommend the acquisition? Why or why not?
5. What do you see as the next set of challenges for Havells? What would be your recommendations for building
the organizational capacity?

Session 11 (October 6)
Topic: Executing Market Entry Strategy – Joint Ventures
Case: Blue Ridge Spain
Reading:
1. Killing, J. P. “How to Make a Global Joint Venture Work,” Harvard Business Review, 2007.
Discussion Questions:

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1. In Blue Ridge Spain what led the joint venture partners to this impasse? What were the major difficulties
between the JV partners over the years?
2. Identify yourself with one of the key decision makers in Blue Ridge Spain case and develop an action plan on
his behalf.

Session 12 (October 7)
Topic: Entry Strategy: Winning the Local Battle
Case: Haier’s US Refrigerator Strategy

Reading:
1. Ghemwat, Pankaj “Adaptation: Adjusting to Differences,” Chapter 4, Redefining Global Strategy
Discussion Questions:
1. Why did Haier enter the US market with compacts first? How did Haier succeed while others didn’t?
2. What are Haier’s prospects in the US refrigerator business – short and long term?

Session 13 (October 10)


Guest Speaker from the Industry
Module 3: Managing Global Expansion
Session 14 (October 27)
Topic: Strategic and Organizational Challenges for Global Expansion
Case: Bain & Company: International Expansion
Reading:
1. “All Strategies are Local, May”, Harvard Business Review. 2005.
2. Govindarajan & Gupta “Managing Global Expansion: A Conceptual Framework” Business Horizon
Discussion Questions:
1. How competitive is Bain and what is its source of competitive advantage?
2. Should Bain go for international expansion? Why / Why not? What strains would this put on Bain's cherished
"one firm" culture?
3. Have they taken the right approaches for international expansion?
4. What approaches should Tom Tierney and Bain's core management team adopt to manage and integrate the
international business of Bain?

Session 15 (October 28)


Topic: Structuring for Global Expansion
Case: Asea Brown Boveri
Reading:
1. Bartlet & Ghoshal “Matrix Management: Not a Structure, A Frame of Mind” Harvard Business Review.
2. “The Logic of Global Business: An Interview with ABB’s Percy Barnevik” Harvard Business Review.
Discussion Questions:
1. What do you think of the organization structure that Barnevik has chosen to manage ABB? What is
he trying to achieve with such a complex model? How effective do you think it will be?
2. How does the ABB organization work? What are the key roles of managers at different levels?
3. Would you accept a job as a front line manager in ABB? Why or why not?
Session 16 (November 2)
Topic: Managing Change in MNCs
Case: Philips versus Matsushita: The Competitive Battle Continues
Reading:
1. Bartlett, C.A. and Ghoshal, S. (1998). “Managing Across Borders: The Transnational Solution”. Harvard
Business School Press. (Chapter 6)
2. Vermeulen, Puranam & Gulati “Change for the Change’s Sake” Harvard Business Review, 2010.
Discussion Questions:
1. How did Phillips become the leading consumer electronics company in the world in the postwar era? What were
its strategic competencies and its organizational capabilities? What impediments and disabilities did they bring
with them?
2. How did Matsushita succeed in displacing Philips as No. 1? What were its distinctive competencies? What were
its limitations?
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3. What do you think of the change each company has made to date – the objectives, the implementation, and the
impact?
4. What recommendations would you make to each of the CEOs of Philips and Matsushita?

Note: Preliminary Report on the Group Project due on November 14


Session 17 (November 3)
Topic: Managing Knowledge and Innovation in MNCs
Case: Global Knowledge Management at Danone (A)
Readings:
1. Szulanski, Gabriel, and Sidney Winter. "Getting it Right the Second Time." Harvard Business Review, January
2002.
2. Doz, Y., J. Santos, and P. Williamson. "Marketing Myopia Re-visited: Why Every Company Needs to Learn
from the World."Ivey Business Journal 68, no. 3 (2004)
Discussion Questions
1. What are the challenges posed by knowledge sharing at Danone?
2. What is the impact of global knowledge management on Danone's global strategy and performance?
3. What is your assessment of the Networking Attitude initiative?
4. Have you experienced the difficulties of sharing "best-practices" in your company? How and why?
Session 18 (November 4)
Topic: Subsidiary Formation and Being a Country Manager
Case: Silvio Napoli at Schindler India
Reading:
1. Gregersen, Morrison, Black (1998), “Developing Leaders for the Global Frontier,” Sloan Management Review,
40-1: 21-32
2. Bartlett, Christopher A., and Sumantra Ghoshal. "What is a Global Manager?" Harvard Business Review, August
2003. What is a Global Manager? HBR Reprint # 92502;
3. Baruch, Y. (2002), “No Such Thing as a Global Manager,” Business Horizons, 45 (1), 36-42

Discussion Questions:
1. Was Silvio the right choice for general manager of Schindler’s India operations? What are the strategic,
organizational, and political challenges facing Napoli as a new country manager setting up a subsidiary in India for
Schindler?
2. As Luc Bonnard how would you evaluate Silvio’s first seven months as general manager of the Indian company?
What advice would you offer?
3. What advice would you give to Silvio regarding his decision on the nonstandard glass wall elevator that has been
ordered?
4. How should he deal with the challenges he is facing over transfer prices and limited technical cooperation from
the European plants?

Session 19 (November 6)
Guest Speaker from the Industry
Module 4: Emerging Multinationals & MNCs in Emerging Markets
Session 20 (November 16)
Topic: Emerging Multinationals: Special Challenges
Case: LG Electronics: Global Strategy in Emerging Markets
Reading:
1. Bartlett, C.A., and Ghoshal, S. (2000). “Going Global: Lessons from Late Movers”, Harvard Business Review,
March-April 2000.
2. Khanna,T. & Palepu, K. “Emerging Giants” Harvard Business Review, 2009.

Discussion Questions:
1. What are the key strengths of the Korean electronics industry during the formative years? How did firms
leverage these advantages to enter developed markets?

Global Strategic Management Course Outline


Prof. Sougata Ray Page 15
104
2. Trace the strategic growth of LG Electronics. Were there any discernible patterns in their approaches to business
in emerging markets? What are the commonalities in strategies in the BRIC countries?
3. What have been the sources of competitive advantages in the emerging markets? Can these advantages be
leveraged to compete in the developed markets? Are these advantages transferable?
Session 21 (November 17)
Topic: Emerging Multinationals – Moving Up the Value Chain
Case: Infosys Consulting in 2006
Readings:
1. Mathews, J.A. (2006). “Dragon Multinationals: New Players in 21 st Century Globalization”, Asia Pacific
Journal of Management, 23, pp.5-27.
2. Ghemawat, P. and Hout, T. (2008) “Tomorrow’s Global Giants: Not the Usual Suspects”, Harvard Business
Review, November 2008.

Discussion Questions:
1. As on 2006, how is Infosys Technologies positioned in the Global IT Services Industry?
2. Why did Infosys decide to move into the IT consulting market? Why did they form a wholly owned subsidiary to
enter this market?
3. What interface challenges exist between Infosys Technologies, the parent company and Infosys Consulting?
How should they overcome those challenges?
4. How are IBM and Accenture likely to view what Infosys Consulting is trying to do? What can they do?

Session 22 (November 18)


Topic: Reverse Innovation - Learning from Emerging Markets
Case: GE Healthcare (A): Innovating for Emerging Markets
Readings:
1. Prahalad, C.K., Lieberthal, K. (2003). “The End of Corporate Imperialism”, Harvard Business Review, August
2003.
2. Immelt, J.R., Govindarajan, V. and Trible, C. (2009). “How GE is Disrupting Itself”, Harvard Business Review,
October 2009.

Discussion Questions:
1. Why would it take so long for a company like GE to innovate for markets such as India or China?
2. Is the "MAC 400" or the "MAC 800" a case of "local innovation" or of "global innovation"? Why? Does it
matter?
3. How likely is a "reverse innovation" to succeed? Why?
4. Do you consider that "reverse innovation" is "an approach critical to the very survival of Western MNCs as they
prepare to fight the threat of emerging market companies going global"? Why?
Session 23 (November 23)
Topic: Responsible Globalization
Cases: Short cases on ethical issues in international business
Reading:
1. “Doing Well by Doing Good”, The Economist, April 22, 2000, pp.65-67.
2. “Triple Bottom Line,” The Economist, November 17, 2009.

Session 24 (November 24)


Topic: Responsible Globalization (Continued)
Integration & Review
Note: Final Report on the Group Project due on December 6
Best of Luck!!!

36. STRATEGIC DECISION MAKING IN INTERNATIONAL BUSINESS: NATIONAL


CULTURE PERSPECTIVES (SM-252)

INDIAN INSTITUTE OF MANAGEMENT CALCUTTA


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Post Graduate Program in Management
(SM-252) Strategic Decision Making in International Business: Cross Cultural Perspectives
(3 Credits)
PGP Term 5: 2016-17 – Optional Course

Course Coordinator:
Prof. Ramya Tarakad Venkateswaran
(ramyatv@iimcal.ac.in, ext. 774, Room No K-507).

Permanent faculty member who will be teaching the course : Prof. Ramya Tarakad Venkateswaran

Guest faculty memberwho will be teaching the course : One or two guest lecture sessions by an industry member
withbackground in strategic decision making in cross-cultural business contexts.

Course objectives:

While making strategic decisions in a cross-border context, firms need to make sense of the institutional
environmentof the target country, apart from the industry and firm context. The institutional environment consists
of ‘formal’, i.e. visible and tangible elements such as country regulations; as well as ‘informal’, i.e. subtler and
intangible but nevertheless significantly impactful elements. This informal’ institutional environment, consists of
thenorms, mores, religion and culture of the nation,and these elements are often known tointroduce a great deal of
uncertainty into the international business environment.Firms also need to be aware about the influences of their
own home country informal institutional environment on its own strategic decisions and actions.

One critical aspect of the informal institutional environment that influences cross border strategic business
decisions is national culture. Differences and similarities in the culture patterns of countries have deep historical
roots and societal mechanisms along with shared national institutions such as common language, political, legal,
education and administrative systems permit the maintenance of stability in these culture patterns across several
generations.The ramifications of national culture in cross cultural strategic decision making (SDM) extends from
key internationalization decisions such as the globalization decision, the choice of location, to the choice of entry
and establishment mode, with significant implications for firm competitivenessand performance. Anecdotal
evidence suggests that firms are overwhelmed by the complexity of national culture and often rely only on
experience and intuition to deal with their cross-cultural challenges in SDM.

This course helps top management sense-making through articulation and understanding of national culture
through the lens of culturalframeworks and perspectivesas derived from the literature.Through this course, students
can also appreciate the differences and synergies between firms due to national culture through the experience of a
real international business project, while also understanding the limitations in applicability of such knowledge.

All students shall be enrolled into the X-culture project (http://www.x-culture.org) that enables a strong
experiential angle to the learning of international business topics. X-culture employs global virtual student
collaboration over live international business projects that solve the real problems of companies across the globe
(Check http://www.x-culture.org/challenges.html for a sample of the projects). Approximately over 6,000 students
from nearly 100 universities in 40 countries work in the global virtual teams of X-culture every season, a not-for-
profit initiative on international management education that has received the Best Academy of Management,
Management Education Symposium Award.In 2015-16, the international projects in X-culture were from 10
companies based in Italy, Lithuania, China, India, USA, Egypt, Somalia, and Sudan. IIMC students participated in
webinars with the company’s management that facilitated Q&A on the business issues.

The coursework covers frameworks and case studies in strategic decision making in an international business
environment with focus on cross cultural frameworks, and the students are guided to apply these frameworks
directly in the X-culture project.Through this experience, students also learnt to collaborate effectively across
borders in a closer-to-real business context, with valuable takeaways for their future at any global organization.
Most students found it helpful to add this as a live, cross-cultural project to their CVs and also report their CQ
score improvements in job interviews.

Course pre-requisites, if any:

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Allstudentsmust take a standard pre-project training on X-culture.All training materials are located atwww.x-
culture.org/training.html. Students will be required to review the materials and complete the X-Culture Readiness
test. Approximately one week before the project start day,each registered participantreceivesan email with a
personalized linkto theReadinessTest, to becompletedbefore the start of the project.The test ensures that all
participants are sufficiently familiar with how X-Culture works, the task the teams will be working on, deadlines,
available communication tools, and other project-related issues. Only students who successfully pass the Readiness
Test will be allowed to participate in the project.Most students pass the test, but a few fail and are asked to review
the training materials more carefully and retake the test.

Students work in global virtual teams1 over a 2-month period(Track 2: Oct 1 - Nov 25). During this time, they
have to meet weekly deadlines. Since this a globally distributed project involving complex coordination,
participation in the project is demanding. Students need to invest at least 4-5 hours per week, and closer to 10
hours per week in the first and last weeks of the project. Before enrolling, you will need to provide a written
declaration that you can commit this quantum of time and effort during this period.

This course is intended for an audience that seeks an appreciation of the cultural aspects over and above the
business aspects of strategic decision making. Courses such as International Business Management and Global
Strategic Management are therefore strongly recommended complementary courses.

Restrictions on course registration and criteria for restriction, if any :

The total number of registrations shall be capped at 45 for administrative reasons. Any registrations outside of the
cap may be considered for inclusion at the discretion of the instructor.

Pedagogy:

Lectures; Cases; X-culture project

The class lectures and caseschedulesare independent of the X-culture project however the instructor shall regularly
communicate with students to provide necessary coaching and guidance, and normally devote at least a few
minutes each lecture to discuss student progress, address concerns and answer questions.Students who successfully
pass the readiness test are randomly assigned to global virtual teams (typically 7 students, 7 different countries) and
receive personal emails on the first day of the project with the names and contacts of their team members.The
teams will be presented with an international business challenge and have about two months to develop a
solution.There will be weekly deadlines that the teams have to meet. Each team member will receive a personal
email with a link to the weekly progress update survey and will have to report if the team has completed that
week’s task.At the end of the project, the teams will present their challenge solutions in a form of team reports. The
team reports will be evaluated by at 6-7 independent experts who are part of the global X-culture team of
instructors along with this course’s instructor.

Evaluation method (weightages to various components):

X-culture related components:


X-cultureProject Report 30%
Individual weekly progress 10%

Other components:
Group Presentations 20%
Quizzes 15%
Experience Diary ` 15%
Guest lecture attendance 10%

The post-project survey (completed before the deadline, % questions answered, with a check for response non-
randomness) must be completed to receive project grade/mark.
1
On exception, a student may opt to complete the project individually rather than as a part of the global virtual team.
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Team members need to submit their international business proposals via TurnItIn, an online platform that checks
submissions for plagiarism. The students also complete an online post-project survey that include-peer evaluations.
Peer evaluations are as evaluated by the other team members in terms of effort, intellectual contribution, help with
writing the report, coordinating team efforts, other comments). Each instructor grades/marks reports submitted by
teams with his/her students. This way, each report is evaluated separately by 5-7 instructors (depending on the team
size).Completion of the post-project survey is the qualifying milestone for grades to be provided.

Session-wise outline

Session Module 1: Introduction to Strategic Decision Making in International Business


1 Topic: Getting started: Introduction to the course and X-culture project

Description: This session is devoted to briefing the students on the details of the course outline and
logistics and mainly on the X-culture project so as to get onto an early start on the training
materials. Students can familiarize themselves with the resources and do’s and don’ts. Best
practices at X-culture indicate that this is beneficial, along with early emphasis on the compulsory
use of TurnItIn software before making the submissions.

Readings:

1. http://www.vtaras.com/AIB-Insights-Q4-12-X-Culture.pdf
2. http://www.x-culture.org/training
3. http://www.x-culture.org/
4. Managing in Multicultural Teams HBS (2006)
5. Chapter 1: The Concept of Culture, Hofstede, Hofstede & Minkov (2010)

Discussion Questions:

The session may be spent on clarifications pertaining to the X-culture project and its linkage with
this course.

Additional references:
https://www.facebook.com/XCultureProject
2 Topic: The Institutional Context of International Business

Description: This session provides an introduction to the perspective of a strategic decision maker
in a firm that is in an internationalization context. The formal and informal institutions in different
nations are highlighted through a case, and readings provide the background for the country
institutional context.

Case:
R.R. Donnelley: Country and Opportunity Analysis in Eastern Europe, HBS (2003).

Readings:
1. Chapter 3: The Institutional Context of Multinational Management, Cullen & Parboteeah.

Discussion Questions:
1. Identify aspects of formal and informal institutional environment in the case. Enlist the
elements for Poland and Hungary and give them your score on a scale of 1 to 5 where 1
represents “extremely easy to do business in this environment” and 5 represents
“extremely difficult to do business in this environment”.
2. Which kind of institution do you think is more important and why?
3. Is nation a valid and meaningful unit of analysis in international business?
4. Questions 1 and 5 bullets at the end of the case.

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Additional references:
Bevan, Estrin & Meyer, Foreign investment location and institutional development in
transition economies, International Business Review, 13 (2004) 43–64.
Background and Agreements on Foreign Direct Investment, HBS (1997).

3 Topic: Strategic Decision Making in the International Business Context: Country and
Opportunity Analysis

Description: This session shall build on the previous session and illustrate the process of
international SDM and the specific influence of institutions in the decision. Sample projects from
the X-culture project are discussed along with a brief on popular decision frameworks and tools.

Case: R.R. Donnelley: Country and Opportunity Analysis in Eastern Europe, HBS (2003) (contd.).

Readings:
1. Meyer, K.E.., 2001. Institutions, Transaction Costs, and Entry Mode Choice in Eastern
Europe. Journal of International Business Studies.32(2): 357-367.
2. Chapter 5: Multinational and Participation Strategies: Content and Formulation, Cullen and
Parboteeah.

Links:
http://www.gmmso4.com
http://www.x-culture.org/challenges.html

Discussion Questions:
1. Which of the two countries must Jim Mauck choose and why? Can he choose both?
2. What entry mode choice is optimal for Donnelley in Poland and in Hungary? Why?
3. Compare the decision frameworks in GMMSO4 to the X-culture decision sequence. How
does this contrast with the other frameworks discussed in the session or from the
textbook chapter? What will you use for your X-culture challenge?

Additional references:
1. Meyer, K.E.,and Estrin, S. , 2001. Brownfield Entry in Emerging Markets. Journal of
International Business Studies, 32(3):: 575-584.
4 Topic: Strategic Decision Making in the International Business Context (contd.): Example:
Market Entry Strategy

Description: This session shall be a specific instance of a strategic decision making process. Who
are the decision makers and how do they decide? What are the contextual factors that matter?

Case: Vietnam: Market Entry Decisions, HBS (1998).

Readings:
1. Chapter 5: Multinational and Participation Strategies: Content and Formulation, Cullen and
Parboteeah.
2. Meyer, K.E., and Nguyen, H.V. 2005. Foreign Investment Strategies and Sub-national
Institutions in Emerging Markets: Evidence from Vietnam. Journal of Management Studies
42(1): 0022-2380

Discussion Questions:
1. What aspects of the strategic decision making are similar and different in the 3 MNCs?
2. For each company, make your recommendation for the following questions: (a) How to
enter? (b) When to enter?
3. Based on the reading by Meyer and Nguyen (2005), now try to recommend where within
Vietnam should each of the companies locate themselves? Which city and/or which kind
of zone?

109
Additional references:
1. Shepherd N.G. & Rudd, J.M. (2014). The Influence of Context on the Strategic Decision-
Making Process: A Review of the Literature, International Journal of Management Reviews,
16: 340–364.
2. Schwenk, R. 1995. Strategic Decision Making. Journal of Management (3): 471-493.
3. Eisenhardt, K.M. and Zbaracki, M.J. 1992. Strategic Management Journal (13): 17-37
4. Aharoni, Y., Tihanyi, L., & Connelly, B.L. 2011. Managerial decision-making in international
business: A forty-five-year retrospective. Journal of World Business46:136-142.
5. Nielsen, B.B. & Nielsen, S. 2011. The role of top management team international
orientation in international strategic decision-making: The choice of foreign entry mode.
Journal of World Business, 46: 185-193.
5 Topic: Strategic Decision Making in the International Business Context (contd.): Market
Entry Strategy Decision Making Process.

Description: This session shall be a lecture on the step-by-step approach that a manager needs to
take towards the entry decision.This will be useful for students before they attempt the X-culture
project. Group presentations may be organized.

Case: Vietnam: Market Entry Decisions, HBS (1998).(contd.)

Readings:
1. Chapter 5: Multinational and Participation Strategies: Content and Formulation, Cullen and
Parboteeah.
2. Meyer, K.E., and Nguyen, H.V. 2005. Foreign Investment Strategies and Sub-national
Institutions in Emerging Markets: Evidence from Vietnam. Journal of Management Studies
42(1): 0022-2380

Alternative case: Walmart around the World, HBS (2013) [714431-PDF-ENG]

After reaching the limits of its successful expansion in the United States in the early 1990s,
Walmart sought growth opportunities in markets abroad. This case describes Walmart's attempts to
replicate its successful U.S. business model in Mexico, Canada, Brazil, Argentina, Central America,
China, South Korea, Japan, Germany, the U.K., and Africa. Students reflect on the mixed results of
these ventures and identify elements in the company's location choices, times of entry, and modes
of entry that may explain the outcomes observed. They then formulate a set of recommendations for
Walmart to maximize its chances of success when the company expands into India in 2013.
Module 2: National Culture in international SDM
6 Topic: Home Country Influences in Strategic Decision Making

Description: In this session students shall have assessedtheir own individual Cultural Intelligence
using the tool in Earley and Mozakowski (2004),before they begin the X-culture project. They will
also repeat this at the end. This helps them to be aware of their cultural moorings and value
preferences. We then examine the mechanisms of home country national culture influences on
strategic decision making.

Case: Lost in Translation, HBR (2011)

Readings:
1. Cultural Intelligence, by Christopher Earley and Elaine Mosakowski, HBS (2005).
2. Questionairres to be filled in class, sourced from:
a. Cultural Intelligence, by Christopher Earley and Elaine Mosakowski, HBS (2005).
b. Ang, Dyne, Koh1, Ng, Templer, Tay and Chandrasekar (2007). Cultural Intelligence:
Its Measurement and Effects on Cultural Judgment and Decision Making, Cultural
Adaptation and Task Performance. Management and Organization Review, 3:3
335–371.

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Discussion Questions:
1. Apart from failure, notions of what other concepts can culture influence, and why?
2. What influences does home country national culture have on organizational culture?

Additional references:
1. Gibson, Maznevski and Kirkman book chapter on when does culture matter, with
implications for the success or failure of management initiatives in foreign cultures, and
other times when the norms of culture will not be so salient.
2. Schneider, S.C. and de Meyer, A. 1991. Interpreting and responding to strategic issues: the
impact of national culture, Strategic Management Journal, 12: 307-320.
3. Schneider, S.C. 1989. Strategy formulation: The impact of national culture. Organization
Studies10(2): 149.
4. Dimitratos, P., Petrou, A., Plakoyiannaki, E., Johnson, J.E. 2011. Strategic decision-making
processes in internationalization: Does national culture of the focal firm matter? Journal of
World Business, 46: 194-204.
7 Topic: Introducing National Culture in International Business

Description: This session shall build on the previous session and introduce the informal institution
of national culture into strategic decision making into the international business context.

Case: Lincoln Electric, HBR (2008)


Readings:

1. Chapter 2: Culture and Multinational Management, Cullen & Parboteeah.


2. Hofstede, G. 1994. The Business of International Business is Culture. International Business
Review, 3: l-14.

Discussion Questions:
1. What challenges have Lincoln Electric faced in the 1980s expansion? What have they
learnt from the experience?
2. Using what modes have they entered different countries since 1996? How do these
modes map to their global competitive advantage in Exhibit 8?
3. Using what modes have they entered Asia? What have they learnt from the experience?
4. If you suggest an acquisition, recommend the firm and the EBIDTA multiple for the price. If
JV, recommend the degree of ownership, required to maintain the desired degree of
control.
5. What are the aspects of strategy implementation that needs focus in India? Will the
performance incentive system work well in India’s institutional environment? How should
it be adapted?

Additional references:
1. Leung, K., Bhagat, R., Buchan, N., Erez, M., Gibson, C.B. 2005: Culture and International
Business: Recent Advances and Their Implications for Future Research. Journal of
International Business, 36: 357-378.
8 Topic: Introduction to Hofstede's cultural dimensions framework

Description: We understand the assumptions behind the study, the framework, interpretation of
each of the five dimensions, and the latest sixth one as well. This is around the time when the X-
culture project is about to begin.

Case: Lincoln Electric, HBR (2008)(contd.)

Reading:
Chapters2 from Hofstede, Hofstede & Minkov (2010)
Hofstede’s website: http://geert-hofstede.com/

Discussion Questions:
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1. Compare Japan, Korea, China and India on the basis of Hofstede’s cultural dimensions
(Refer chapter 2).
2. How do they rank in terms of cultural distance from the US?
3. What are your inferences about the transferability of the above learnings?
4. More specifically, what conflicts arose in the JV in China? Which dimension is it reflective
of this conflict?
5. How does that dimension compare between China and India? Is a similar conflict likely in
India?

Additional references:
1. Stahl, G.K. & Tung, R.L. 2015. Towards a more balanced treatment of culture in
international business studies: The need for positive cross-cultural scholarship. Journal of
International Business Studies, 46: 391–414.
2. Berry, J. W. 2008. Globalization and acculturation. International Journal of Intercultural
Relations, 32(4): 328–336.
3. Gomes-Casseres, B., 1990. Firm ownership preferences and host government restrictions:
an integrated approach. Journal of International Business Studies, 21(1),1–2 [MA].
Module 3: National Culture frameworks and metaphors in International Business
9 Topic: Understanding and experiencing Hofstede’s cultural dimensions in the context of
international business.

Description: We have a number of in-class exercises to understand Hofstede’s cultural dimensions


from an experiential angle. These are taken from Hofstede, Pederson and Hofstede (2002). Teams
could be organized mono-culturally in the session, to observe personality, cultural and universal
commonalities in answers.

Reading: Chapters3,4,5,6,7,8 from Hofstede, Hofstede & Minkov (2010)

Discussion Questions:
Identify the dominant dimension(s) contrasted in the caselet.

Additional references:
1. Newman, K.L. & Nollen, S.D. 1996. Culture and Congruence: The Fit between
Management Practices and National Culture. Journal of International Business Studies,
27(4): 753-779.
2. Hofstede, G. 1985. The Interaction between National and Organizational Value Systems.
Journal of Management Studies. 22: 347-357.
10 Topic: Application of cross-cultural frameworks in an International Business context

Description: Level of analysis issues to be discussed - fallacy of applying societal/country level


values to individuals and arriving at conclusions.Limitations of empirical research using Hofstede's
framework, Alternative frameworks: Schwartz, GLOBE, World Value Survey, comparison with
Hofstede.

Case: Wipro Technologies Europe (A)

Reading: Chapters9,10: Cultures in Organizations, in Hofstede, Hofstede & Minkov (2010).

Discussion Questions:
1. What is Sudip Nandy’s problem and how can he achieve his goals?
2. What are the different roles, geographies and activities involved?
3. What elements of the organization structure and authority are relevant to the case? How
are these influenced by the cultural dimensions?
4. What other elements of organization are involved in executing Sudip Nandy’s strategy?
Which cultural dimensions can cause conflict and which ones can cause synergy? (Each
multicultural team could creatively imagine a scenario of conflict and present the caselet
to the class)
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5. What possible options (refer Mintzberg’s framework in the text) can Nandy consider for
organizational structure between sales and delivery?
6. Apply GLOBE and Schwartz in the context of the case.

Additional references:

1. Kirkman, B. L., Lowe, K. B., & Gibson, C. 2006. A quarter century of culture’s consequences:
a review of empirical research incorporating Hofstede’s cultural values framework. Journal
of International Business Studies, 37(3): 285-320.
2. Hofstede, Schwartz or GLOBE? JIBS critique series (2006, 2010)
Module 4: National Culture in International Business Operations
11 Cross-cultural marketing: Branding and Pricing: Guest faculty #1
12 Cross-cultural marketing: Distribution and Promotions: Guest faculty #1
13 Topic: Cross-Cultural Mergers and Acquisitions

Description:
Broaches different theoretical and methodical approaches to the study of the cultural complexities
involved in international mergers and acquisitions.

Case: Speed Race: Benelli and QJ Compete in the International Motorbike Arena, HBS (2010)

Reading:
Gertsen, M.C., Soderberg, A., & Torp, J.E. Different Approaches to the Understanding of Culture in
Mergers and Acquisitions In Cultural Dimensions of International Mergers and Acquisitions,
Walter de gruyter, Berlin, New York, 1998: 17-38.

Discussion Questions:
1. What are the broad set of problems facing Marta Zhang? What is the strategic intent
behind the merger?
2. What are the cross cultural issues that Marta Zhang needs to address?
3. Create a few imaginary scenarios of the conflict in the specified areas. An exemplar
scenario would be like the text snippets we discussed in an earlier session that highlights
the key cultural differences.
4. Compare Italian and Chinese cultures using Hofstede, and if possible also GLOBE. now
analyze your imagined scenarios.
5. What are the cultural differences that may impede success of the M&A?
6. There are three options for the cultural integration, which one should Marta Zhang
choose?
a. Transplant corporate culture (Chinese) onto Benellli in Italy.
b. Let local cultures be, and allow Benelli to operate standalone
c. Plan for complementary cultures with intense and expensive cross-cultural
trainings
7. What are the implications of the cross cultural differences for firm strategy?

Additional references:
1. Nahavandi, A., & Malekzadeh, P. 1988. Acculturation in Mergers and Acquisitions.
Academy of Management Review, 13 (1): 79-90.
2. Stahl, G.K. & Voigt, A. 2008. Do Cultural Differences Matter in Mergers and Acquisitions? A
Tentative Model and Examination. Organization Science, 19(1): 2008: 160-176.
14 Topic: National culture and its effect on joint ventures and alliances.

Description: Through a case, we understand the effects of national culture on the dynamics of JVs.

Case: Komatsu and Dresser: Putting Two Plus Two Together, HBS (1998)

Reading:
How to Make a Global Joint Venture Work, HBS (1982).
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Discussion Questions:
1. You are a management consultant hired by KDC at the time of formation of the JV.
What would you do differently?
2. Among all issues, do you consider cultural differences to be extremely
important/somewhat important/peripherally important to the case? Why?
3. If you were to recommend cross-cultural training, how would you design it - When
would you do it and how? (Japanese staff to receive training on US culture or US staff to
receive training on Japanese culture, who all should receive the training, and on what
aspects of national culture? What about organizational culture?)
4. Assume you are a management consultant brought in at the end of the case. What would
you do now?

Additional references:
Hennart, J.F. and Zeng, M. 2002. Cross-Cultural Differences and Joint Venture Longevity, Journal
of International Business Studies, 33(4): 699-716.
Module 5: Applying national culture frameworks to Strategic Decision Making in
International Business
15 Topic: Metaphors for culture in International Business

Description: In this session we examine the use of various metaphors such as cultural distance,
cultural friction, cultural difference, cultural profiling, cultural positioning and the more recent
notion of value centrality.

Reading:
Kogut, B., & Singh, H. 1988. The effect of national culture on the choice of entry mode. Journal of
International Business Studies, 19 (3): 411–432.

Drogendijk, H. J., & Zander, L. 2010. Walking the cultural distance: in search of direction beyond
friction. Advances in International Management, 23: 189–212.

Discussion Questions:

Additional references:
1. Shenkar, O. 2012.Beyond cultural distance: Switching to a friction lens in the study of
cultural differences. Journal of International Business Studies, 43: 12–17.
2. Shenkar, O., Luo, Y. & Yeheskel, O. 2008. "From" distance" to" friction": substituting
metaphors and redirecting intercultural research." Academy of Management Review,
33(4): 905-923.
3. Salk, J. 2012. Changing IB scholarship via rhetoric or bloody knuckles? A case study in the
boundary conditions for persuasion. Journal of International Business Studies, 43: 28–40.
4. Zaheer, S., Schomaker, M.S., Nachum, L. 2012. Distance without direction: Restoring
credibility to a much-loved construct. Journal of International Business Studies, 43:18–27.
5. Reus, T., & Lamont, B. 2009. The double-edged sword of cultural distance in international
acquisitions. Journal of International Business Studies, 25: 1–19.
6. Brouthers and Brouthers 2002
7. Foreign entry, Cultural Barriers and Learning
16 Topic: National culture and the competitive advantage of nations

Description: How can national culture contribute towards building the competitive advantage of a
nation?

Case: Finland and Nokia: Creating the World’s Most Competitive Economy (Solvell & Porter,
2011)

Reading:
The Competitive Advantage of Nations, by Michael E. Porter, HBR (1990).
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Discussion Questions:
1. Analyze the case wrt the reading.
2. Analyze the reading wrt the case.
3. A high Masculinity score indicates that the society will be driven by competition, achievement and success,
with success being defined by the winner/best in field. Finland has a low score on Masculinity. How come
they became so successful? (Clue: I want you to interpret this dimension in depth, why Femininity can help
you succeed as well. The textbook may be of help).
4. Similarly Finland is high on Indulgence! How do you explain the success of an indulgent society? (I want
you to refer the Hofstede textbook and go beyond the stereotype definition of this dimension as well)
5. Additionally, if time permits, look up the reading for the next class on Hofstede's dimensions for Finland
and India. Feel free to share your insights.

Additional references:
Doney, P.M., Cannon, J.P.,and Mullen, M.R. 1998. Understanding the Influence of National Culture
on the Development of Trust, Academy of Management Review, 23(3): 601-620.
17 Topic: Guest lecture (Guest faculty #2)

Description: Practitioner perspectives from a due diligence team leader of a cross-border


acquisition.

Case:

Reading: Cultural dimensions from Hofstede and GLOBE for Finland and India.

Discussion Questions:

Additional references:
18 Topic: X-culture progress update by mono-cultural groups

Description: Each member to present a brief summary of project progress. Group to share their
common experiences and relate to culture theory.
19 Topic: International Expansion Failure and the influence of national culture

Description: We focus specifically on the entry mode decision as a decision of high impact, high
visibility and longer term implications for the firm. The case tries to highlight how the decision is
often perceived as a rational one with consideration towards facts and figures. This should also help
students think through their X-culture project. We understand how a lack of understanding of the
cultural aspects can lead to failure.

Case:Lincoln Electric's Harsh Lessons from International Expansion

Reading:
1. The effect of cultural distance on entry mode choice, international diversification, and
MNE performance: a meta-analysis - Tihanyi, Griffith & Russell (JIBS, 2005).

Discussion Questions:

Additional references:
Brouthers, K.D. 2002. Institutional, Cultural and Transaction Cost Influences on Entry Mode
Choice and Performance, Journal of International Business Studies, 33(2): 203-221.

Module 5: Integration of learnings with X-culture


20 Topic: Review and Integration of learnings

Description: Summary of all modules so far and integration of learnings in the course. The
experience sharing sessions may spill over to this session. The students conclude the course by once
again assessing their cultural intelligence after the X-culture project and check if they are better off!

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Case:

Reading:
Re-administer Earley and Mozakowski survey on Cultural Intelligence; as well as extended CQS
questionnaire by Ang et al.

Discussion Questions:

Additional references:

Textbook, course material, reference books, cases:

Textbook:
a. InternationalManagement: A Strategic Approach (2013), John B. Cullen and K. Praveen
Parboteeah.
b. Cultures and Organizations: Software of the Mind (2010), Geert Hofstede, Gert Jan Hofstede,
Michael Minkov, McGraw Hill Publishers.

Reference books:
a. Entry Strategies for International Markets (1994), Franklin R. Root.
b. International Strategy: Context, Concepts and Implications (2014), David Collis
c. The Cultural Environment of International Business (1991), Vern Terpstra and Kenneth David

Additional benefits:

Based on the expert evaluations, best teams will be awarded the X-Culture Best Team Awards. Additionally,
individual performance records and peer evaluations will be used to select each season’s Best Student Award
recipients.

X-Culture Symposium: At the end of each X-Culture season, instructors and students are invited to the X-Culture
Symposium (e.g., the most recent X-Culture Symposium hosted by Mercedes-Benz). It provides students a great
opportunity to meet in person other X-Culture participants, exchange ideas, expand professional and personal
network. Subject to funding availability, members of the best student teams may receive travel stipends to attend
the meeting. Best Student Award recipients are eligible for the X-Culture Travel Stipends.

Global Collaboration Certificate: All X-Culture participants who successfully complete the project receive Global
Collaboration Experience Certificates. X-Culture certificates have helped students get jobs, promotions and get
into International Business graduate programs. When the workplace goes global, a certificate of experience in
global collaboration can make a difference. With thousands of X-Culture alumni worldwide, being a part of the
“club” is a huge asset. And the X-Culture certificate provides documented international collaboration skills and
experience that do matter when you’re on a job hunt.

Source: http://www.x-culture.org/for_students.html

37. ALIGNING STRATEGY IMPLEMENTATION & CAREER [ASIC] (SM-257)

Aligning Strategy Implementation & Career [ASIC]


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PGDM [Term 5]: 2016-17

1. Course Title
 Aligning Strategy Implementation & Career [ASIC]
2. Number of Credits
 3 [ASIC was originally designed and approved as a 1.5 credit course and it was offered in Term 5
during 2015-16 . It is now proposed to convert this course into a 3.0 credit course beginning 2016-
17]
2. Proposed Term and Year
 Term 5, 2016-17
3. Proposed Program
 PGDM
4. Instructor details (name, contact etc.)
 Prof Ranjan Das, PTVF [erstwhile full time faculty of Strategic Management Group at IIM Calcutta
from Oct 1994 to Sept 2014]
5. Guest faculty details, if applicable
 No guest faculty will be teaching in this course
6. Course Objectives
 Help students develop an appreciation of certain specific types of strategy – such as consolidation,
turnaround, growth and internationalization - that are periodically pursued by an organization as its business
context changes

 Help students understand the critical challenges faced in implementing strategies mentioned above and why
managing the underlying strategic changes are key to success

 Assist students in understanding how one’s power, influence and persuasion skills are essential for
successful implementation of any new strategic direction including management of strategic changes that are
integral to the same

 Make the students understand how legitimate use of power and ethical approach to using influence and
persuasion have high possibility to deliver favourable outcomes in the medium to long term

 Offer students practical insights on use of power, influence and persuasion and why the same are needed for
boosting their managerial career

7. Evaluation Components
 Group exercise in the class: 30%
 Presentations of concepts and practices: 20%
 Project: 20%
 End term examinations: 30%
8. Session wise contents

Session Reading materials and cases


Number
1  Corporate and Competitive strategy – Revisited
 Aligning Strategy Implementation and Building Managerial Career: Key Linkages
MODULE I: Specific Types of Strategic Choices and Associated Implementation Challenges
Consolidation Strategy –I
2  Read: Consolidation of highly fragmented service industry 9-802-192
 Read : The Consolidation Curve F0212B
3 Consolidation Strategy –II
 CASE: BP and the Consolidation of the Oil Industry--1998-2002 : 702-012
4 Turnaround strategy –I
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 Read: The Turnaround Challenge ISBN-13: 978-1-4221-5352-9 5351BC
5 Turnaround strategy –II
 Read: Strategic Transformation as the essential last step of the process of
business turnaround BH 270
 Case: At Ford, Turnaround is Job 1 KEL663-PDF
6 Growth Strategies – I
 Read: Market Busting strategies
 CASE: Shimla Dairy 9B05M017
7 Growth Strategies – II
 Read: Growth Is the Dynamic Confluence of Strategy, Entrepreneurship, and
Values, UV6382-PDF-ENG
 Case: Apple in 2010 710-467
8 Growth Strategies – IV [Internationalization Strategy]
 Read: Introduction to Global Strategy 9-706-448
 Read: Corporate and global scope 9-707-496
 Case: HTC in 2009 709-466
9 Methods for Strategy Development
 Case: Havells India: Acquisition decision 9B09M089
MODULE II: Use of Power, Influence and Persuasion by Managers to Ensure
Successful Strategy Implementation
10 Understanding Business Organizations as Socio –Political context
 Read: Power and Politics in Organizational Life 70313-PDF
11 Power – 1
 Read: Necessity of Power: You Can't Manage Without It 5443BC-PDF
 Case: Katharine Graham: Adapting one’s influence style in different social and
career networks [801276-PDF-ENG]
12 Power -2
 Read: Power and Politics in Organizational Life 70313-PDF
 Case: Roller Coaster Ride: The Resignation of a Star 9-405-031
13 Influence – 1
 Read: Influence: Your mechanism for using power 5467BC-PDF
 Case: Who's in Charge?: The Jim Davis Case #BAB086
14 Influence – 2
 Read: Influence: Your mechanism for using power 5467BC-PDF
 Case: Who's in Charge?: The Jim Davis Case #BAB086
15 Influence -3
 Read: What It Really Means to Manage: Exercising Power and Influence 400041-
PDF
 Read: Building Coalitions 497055-PDF
 Case: Heidi Roizen 800228-PDF-ENG
 Case: Amelia Rogers at Tassani Communications (A) 9-492-034
16 Influence – 4
 Read: How Experts Gain Influence R1307E-PDF
 Case: Vivienne Cox at BP Alternative Energy (A) INS354-PDF
17 Persuasion -1
 Read: Take a Strategic Approach to Persuasion U0807A-PDF
 Case: Johannes Linden: Managing the Global Executive Committee 913509-PDF
18 Persuasion -2
 Read: Principles of Effective Persuasion 497059-PDF
 Case: Ferguson's Formula R1310G-PDF
19 Leadership, Power And Influence and Implications for building Executive Career - 1
 Read: The Focused Leader R1312B-PDF
 Case: Leadership Development at Goldman Sachs 406002-PDF

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20 Leadership, Power And Influence and Implications for building Executive Career - 2
 Read: Managing Your Career 494082-PDF
 Case: Lehmann bros – A & B 906034-PDF and 906035-PDF
 Case: Margaret Thatcher 497018-PDF

9. Cap on number of students


 45

38. CORPORATE STRATEGY (SM-258)

CORPORATE STRATEGY
PGP 2015 – 2017
Term V

Professor: Palash Deb

COURSE DESCRIPTION

Managers of firms having multiple business divisions, or legally independent subsidiaries, face a unique
set of challenges that are not confined to particular geographies or products. They may need to decide on
acquiring new businesses, divesting existing businesses, and entering new geographical or product
markets. Managers may also need to decide whether the firm should have ownership of vertically related
activities, or whether such activities should be performed using arm’s length market contracts. Managers
of firms with multiple divisions or subsidiaries must also decide how to organize and manage the
resulting organizational structure to achieve critical synergies. These decisions about a firm’s business
portfolio can either increase or reduce the scope of the corporation, and determine where it competes. In
this course you will learn to think about such decisions, which, as a whole, represent a firm’s corporate
strategy. We will discuss the notion of corporate advantage, become acquainted with some relevant
analytical tools, and study theory, cases and articles that illustrate some of the myriad challenges facing
the corporate strategist.

COURSE OBJECTIVES

By the end of the course, you should be able to:

(1) Understand the concepts of corporate advantage and corporate scope


(2) Understand some of the typical corporate strategies used by firms
(3) Understand some of the basic issues in corporate organization and governance

PEDAGOGY

We will extensively discuss theories, concepts, ideas, analytical tools and frameworks based on the very
large body of research on corporate strategy.

The case method of learning will be another major pedagogical tool. Carefully read the case, and analyze
the discussion questions provided, before coming to class. Given that we are trying to analyze and predict
real-life decision-making by managers, which by its very nature is part science and part art, it is possible
to look at the same situation in different ways and to suggest alternative decision paths. I will therefore be
open to alternative viewpoints as long as they are rationally analyzed and logically defended.

Hindsight is 20/20. Therefore, while analyzing a case for class based on the discussion questions
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provided, think about the situations as the protagonists saw them then, instead of trying to critique their
decisions based on what we now know about those situations. Hence, unless explicitly told, limit
yourself to the information given in the case. In other words, you do not have to perform any
secondary research while analyzing a case for classroom discussion. Separately note that we may, if
needed, discuss different aspects of a single case on two different days (the course schedule will be
changed accordingly).

Next, we will also discuss relevant HBR articles to further inform and enrich our classroom discussions.

Finally, I will also provide you links to articles published in the business press (e.g., Financial Times,
Forbes, Wall Street Journal etc.). These articles, though not a part of the Course Packet, will also form the
basis for much of our classroom discussions.

COURSE MATERIALS

Required: Corporate Strategy: Tools for Analysis and Decision-Making, 1st edition
ISBN 978-1-107-54404-8 Paperback
Authors: Phanish Puranam & Bart Vanneste
Publisher: Cambridge University Press
Copyright year: 2016
Pages: 298

Required: Course Packet (includes seven case studies and fifteen articles)

Recommended: (1) The Wall Street Journal (2) Business Week

COURSE EVALUATION

Your course grade will be based on the following components:

Class Participation 20%


Group Presentation 15%
Group Project 20%
Final Examination 45%

There are no make-up assignments for any component of the course, nor are extra credit assignments
available.

1. Class Participation

Your individual contributions to discussions will be evaluated on an ongoing basis. You are expected to
come to class having completed any assigned readings, case analysis, homework or other tasks. Please
remember that participation and contribution are not the same thing. While participation is important,
what is more important is the quality of that participation.

Outstanding contributions: A student’s comments show that he/she has read and thought deeply about
the assigned readings or case and has developed creative and innovative insights from his/her analyses.
The comments should advance the discussion of the readings or case to a higher level. This level of credit
is reserved for truly excellent contributions. An outstanding contribution will earn you an A.

Excellent / Superior contributions: A student’s comments show that he/she has read and thought about
the readings or case and can generate insights from his/her analyses that add to the learning of fellow

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students. The main distinction between Excellent and Superior contribution is the sophistication of the
analyses. An excellent contribution will earn you an A- while a superior contribution will earn you a B+.

Very Good / Good contributions: A student’s comments show that he/she has read and thought about
the readings or case, and he / she is able to add to the class discussion of an important issue. A very good
contribution will earn you a B while a good contribution will earn you a B-.

Fair / Modest contributions: A student’s comments show that he/she has made some preparations, but it
is clearly not adequate. A fair contribution will earn you a C+ while a modest contribution earns you a C.

No contribution: A student who has made no preparations at all, or does not speak up in class at all, or
regularly absents himself / herself from class, or is regularly late to class, will earn an F on the class
contribution grades. However, for class contribution, an F is not an automatic zero. The exact points you
will earn for an F will be determined by the instructor, but it will certainly be less than 14.

2. Group Presentation

Please organize yourself into groups of 5/6 and email me the group member names (and the group name)
before the start of the second day of class. There should be a total of seven groups. Each group needs to
present on a case study that will be assigned after the groups are formed. The case questions will be put
up online.

Each presentation will be for 30 (+/- 3) minutes. Please upload an electronic version of the presentation
before class, and also submit a hard copy in class. Each member of the group is expected to present. If
you are absent on the day of your group’s presentation, you will not earn any marks for the presentation.

Credit will be given for substance of presentation (including the ability to link theory and concepts learnt
in class to the case at hand), quality of analyses, clarity, organization, time management etc. In short, I
expect a thorough and professional presentation.

You will also need to confidentially fill out peer review forms.

3. Group Project

Each group shall submit a project report at the end of the semester. The report should be submitted as a
hard copy on the last day of class while an electronic version should be uploaded before the start of the
last class session. The project report should be 25 (+/- 1) pages long (Times New Roman, font 12, single-
spaced with 1-inch margins) and may include graphs and tables.

For this project you need to pick a large, publicly-listed, multi-business company and analyze its
corporate strategy. Further details will be provided in class. Each group needs to meet me at least once
during the term to discuss the progress of their project. You will also need to confidentially fill out peer
review forms.

4. Final Examination

The final will be an open-book examination. It will be largely based on a case study that will be
distributed during the examination. One objective of the final examination is to assess your ability to
come up with analytically-grounded and cogent argumentation in solving the case questions. More
importantly, however, you should be able to integrate into your answers the relevant material (theory,
articles, cases, examples etc.) learnt in class in a way that shows your mastery of the subject-matter.

In addition to application-based case questions, there will be a few questions directly testing you on your

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familiarity with the theory, concepts and frameworks learnt in class. Further details will be provided in
class.

POLICIES AND EXPECTATIONS

Attendance: Most class sessions will be interactive and it is expected that you will attend all class
meetings. Missing class means missing the group learning experience and you cannot make this up by
reading the textbook or any slides that are posted. There is no explicit penalty for late-coming or
absences. However, missing class, being late, or leaving class early, will affect your class participation
grade adversely because if you are not in class, you will not be able to contribute to the discussion and
earn credit for those contributions. Also note that I do not distinguish between excused and unexcused
absences when it comes to class participation.

Preparation: You are expected to be prepared to engage in discussion, which includes completion of all
assigned readings and careful analysis of every assigned case. I will “cold call” on students periodically
during case discussions and activities. Preparation allows you to focus on the key issues rather than
background details, and to provide thoughtful comments that enrich the discussion. Expect to work hard
and be challenged to think. You are responsible for contributing to a positive learning environment, which
includes being prepared to make a constructive contribution to the class.

Professionalism: You are expected to conduct yourself with professionalism. Please plan to arrive for
class on time and turn off all devices that may be a distraction (e.g., cell phones). You are not allowed to
use laptops, smartphones etc. in class. Also, during discussions, please treat everyone around you with
respect. Disrespect and being inconsiderate are “pet peeves” of mine.

Use of student work: Copies of written student work may be used for pedagogical purposes. An example
of this would be using student answers to an examination question to illustrate what strong answers look
like. Any student work so used shall be rendered anonymous by removing the name and other identifiers.
Student work may also be used for teaching evaluation and assessment.

Academic Integrity: Personally, I take matters of academic integrity very seriously. I maintain a “zero
tolerance” approach to violations of academic integrity. If I discover that a student has violated academic
integrity in my course, that student will receive an automatic “F” in the course. Some examples of
violations of academic integrity include: copying from others during exams; copying assignments or
working on someone else’s assignment; prior knowledge of test questions; not citing referenced material
completely or accurately, etc. These are only examples of common problems; this is not an exhaustive
list. If you have any questions about what constitutes a violation, please do not hesitate to ask me.

TENTATIVE COURSE SCHEDULE


Module 1: Foundations
Session 1: Course Overview & Introduction to Corporate Advantage
1. Puranam & Vanneste (chapter 1)

Session 2: Synergies
1. Puranam & Vanneste (chapter 2)
2. Piskorski M J. “Choosing Corporate and Global Scope”, Harvard Business School Background
Note 707-496, 2007

Session 3: Governance Costs


1. Puranam & Vanneste (chapter 3)
2. Anand B. “Corporate Strategy”, Harvard Business School Module Note, 713-415, 2012

Module 2: Firm Scope


Session 4: Product Scope (A)
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1. Puranam & Vanneste (chapter 4)
2. Palich L E, Cardinal L B & Miller C C. 2000. “Curvilinearity in the diversification-performance
linkage: An examination of over three decades of research” Strategic Management Journal, 21:
155-174

Session 5: Product Scope (B)


1. Rukstad M G & Collis D. “Walt Disney Co.: The Entertainment King” (HBSP case study, 2009)
2. Anand B N & Jayanti S, “Strategies of Unrelated Diversification”, Harvard Business Review,
2005

Session 6: Product Scope (C)


1. Khanna T, Palepu K G & Wu D M. “House of Tata – 1995: The Next Generation (A) (HBSP case
study, 2006)
2. Ramachandran J, Manikandan K S & Pant A. “Why Conglomerates Thrive (Outside the U.S.)”,
Harvard Business Review, 2013

Session 7: Vertical Scope (A)


1. Puranam & Vanneste (chapter 8)
2. Thomas O & Madhok A. “Vertical Integration is Dead, or Is It?”, Harvard Business Review, 2003

Session 8: Vertical Scope (B)


1. Casadesus-Masanell R, Tarzijan J & Mitchell J. “Arauco (A): Forward Integration or Horizontal
Expansion?” (HBSP case study, 2010)
2. McGrath, R. “Why Vertical Integration is Making a Comeback”, Harvard Business Review, 2009

Session 9: Geographic Scope


1. Ghemawat P & Khanna T. “Tricon Restaurants International: Globalization Re-examined” (HBSP
case study, 2009)
2. Friedrich J, Noam A & Ofek, E. “Right Up the Middle: How Israeli Firms Go Global”, Harvard
Business Review, 2014

Module 3: Mechanisms to Change Firm Scope


Session 10: Ally or Acquire
1. Puranam & Vanneste (chapter 5)
2. Dyer J H, Kale P, Singh H, Singh H. “When to Ally and When to Acquire”, Harvard Business
Review, 2004

Session 11: Organic or Inorganic Growth


1. Puranam & Vanneste (chapter 6)
2. Capron L & Mitchell L. “Finding the Right Path”, Harvard Business Review, 2010

Session 12: Managing M&A (A)


1. Puranam & Vanneste (chapter 11)

Session 13: Managing M&A (B)


1. Montgomery C. “Newell Company: Corporate Strategy” (HBSP case study, 2005)
2. Harding D & Rovit S. “Building Deals on Bedrock”, Harvard Business Review, 2004

Session 14: Managing Alliances (A)


1. Puranam & Vanneste (chapter 12)

Session 15: Managing Alliances (B)

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1. Shih, W, Pisano G & King A. “Radical Collaboration: IBM Microelectronics Joint Development
Alliances” (HBSP case study, 2008)
2. Bamford J, Ernst D & Fubini D G. “Launching a World-Class Joint Venture”, Harvard Business
Review, 2004

Session 16: Divestitures


1. Puranam & Vanneste (chapter 7)
2. Bowman E H, Singh H, Useem M & Bhadury R. “When Does Restructuring Improve Economic
Performance?”, California Management Review, 1999
3. Moschieri C & Mair J. “From Trash to Treasure: Successful Divestitures need Proper Cultivation”
(HBSP Expert Insight, 2011)

Module 4: Portfolio Organization


Session 17: Designing the Corporation
1. Puranam & Vanneste (chapter 9)

Session 18: Designing the HQ


1. Puranam & Vanneste (chapter 9)

Session 19: Corporate Governance


1. Piskorski M J & Spadini A L. “Procter & Gamble: Organization 2005” (HBSP case study, 2007)
2. Corporate Governance in Multi-business Firms (class lecture)

Module 5: Review
Session 20: Closing Thoughts
1. Collis D J & Montgomery C A. “Creating Corporate Advantage”, Harvard Business Review, 1998
2. Review

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