THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT (ESTD 1973) HYDERABAD

GLOBAL OPPORTUNITIES AND THREAT ANALYSIS REPORT

SUBMITTED BY: NAME: THONDURU PRASANTH REDDY BATCH: PGP/FW/10-12/IIPM COUNTRY VISITED: TEXAS, US

ACKNOWLEDGMENT

This report could not have been accomplished without the splendid support of my friends & colleagues. I would like to Thank IIPM, in giving me an international experience & learning by taking me to USA. I would like to thank PROF. GANESH SHUKLA who led us all through the GOTA & in giving me an opportunity to make a report on the GOTA we had. Special thanks to my friends who helped me to complete this report. Last but not least I would like to thank god for helping & aiding me to make this report a success.

INDEX
ABSTRACT INTRODUCTION USA- AN OVERVIEW TEXAS AN OVERVIEW MC COMBS BSCHOOL AN OVERVIEW STRATEGIC MANAGEMENT NEGOTIATIONS ADVERTISING AND NEW MEDIA LEADING INNOVATION ACCOUNTING AND FINANCE LEADING HIGH PERFORMANCE TEAMS ENTREPRENEURSHIP BUILDING YOUR LEADERSHIP BRAND CONCLUSION BIBILIOGRAPHY

ABSTRACT
As a part of our GOTA program we visited Texas, US. The GOTA organized by IIPM provided us with an opportunity of visiting Texas, through which we learned about the foreign education & work culture. This report gives an overview of the importance of GOTA program and information about the different topics which were discussed in the seminars. The report gives an insight about the learning and experience of the sessions and the stay in Texas, US.

GLOBAL OPPOURTUNITY AND THREAT ANALYSIS

The Global Opportunities & Threat Analysis (GOTA) Program brings awareness of how a truly global economy works and also offers a different perspective to the participants making them receptive to entrepreneurial learning. The trip was not totally academically oriented and also involved a couple of days of sightseeing with visits to the popular tourists hot spots and major cities in US. We had a learning experience of immigration, food adjustment, crossing language and cultural barriers, weather extremities, etc. GOTA is designed to give students a firsthand exposure to International Faculty, organizations & economies. The idea to make the students aware of how a truly global economy works and also to bring a fresh outlook to life conductive to entrepreneurial learning.

INTRODUCTION USA- AN OVERVIEW:

The United States of America (also referred to as the United States, the U.S., the USA, or America) is a federal constitutional republic comprising fifty states and a federal district. The country is situated mostly in central North America, where its forty-eight contiguous states and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the south. The state of Alaska is in the northwest of the continent, with Canada to the east and Russia to the west across the Bering Strait. The state of Hawaii is an archipelago in the midPacific. The country also possesses several territories in the Caribbean and Pacific. At 3.79 million square miles (9.83 million km2) and with over 310 million people, the United States is the third or fourth largest country by total area, and the third largest both by land area and population. It is one of the world's most ethnically diverse and multicultural nations, the product of largescale immigration from many countries. The U.S. economy is the world's largest national economy, with an estimated 2010 GDP of $14.780 trillion (23% of nominal global GDP and 20% of global GDP at purchasing power parity). The United States is a federal union of fifty states. The original thirteen states were the successors of the thirteen colonies that rebelled against British rule. Early in the country's history, three new states were organized on territory separated from the claims of the existing states: Kentucky from Virginia; Tennessee from North Carolina; and Maine from Massachusetts.

Most of the other states have been carved from territories obtained through war or purchase by the U.S. government. One set of exceptions comprises Vermont, Texas, and Hawaii: each was an independent republic before joining the union. During the American Civil War, West Virginia broke away from Virginia. The most recent stateHawaiiachieved statehood on August 21, 1959. The states do not have the right to secede from the union. The United States leads the world in scientific research papers and impact factor. The country is the primary developer and grower of genetically modified food, representing half of the world's biotech crops. The United States is also a leader in medical innovation. In 2004, the nonindustrial sector spent three times as much as Europe per capita on biomedical research. Today, the bulk of research and development funding 64% comes from the private sector. Americans possess high levels of technological consumer goods, and almost half of U.S. households have broadband Internet access. American public governments, regulated education is by operated by state and local of

the United

States

Department

Education through restrictions on federal grants. Children are required in most states to attend school from the age of six or seven

(generally, kindergarten or first grade) until they turn eighteen (generally bringing them through twelfth grade, the end of high school); some states allow students to leave school at sixteen or seventeen. About 12% of children are enrolled in parochial or non-sectarian private schools. Just over 2% of children are homeschooled. The United States has many competitive private and public institutions of higher education.

According to prominent international rankings, 13 or 15 American colleges and universities are ranked among the top 20 in the world. There are also local community colleges with generally more open admission policies, shorter academic programs, and lower tuition. Of Americans twenty-five and older, 84.6% graduated from high school, 52.6% attended some college, 27.2% earned a bachelor's degree, and 9.6% earned graduate degrees. The basic literacy rate is approximately 99%. The United Nations assigns the United States an Education Index of 0.97, tying it for 12th in the world. The United States is a multicultural nation, home to a wide variety of ethnic groups, traditions, and values. Aside from the now small Native American and Native Hawaiian populations, nearly all Americans or their ancestors immigrated within the past five centuries. The culture held in common by most Americansmainstream American cultureis a Western culture largely derived from the traditions of European immigrants with influences from many other sources, such as traditions brought by slaves from Africa. More recent immigration from Asia and especially Latin America has added to a cultural mix that has been described as both a homogenizing melting pot and a heterogeneous salad bowl in which immigrants and their descendants retain distinctive cultural characteristics.

AUSTIN, TEXAS
Austin is the capital city of the U.S. state of Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in the nation from 2000 to 2006. Austin has a population of 790,390 (2010 U.S. Census). The city is the cultural and economic centre of the AustinRound RockSan Marcos metropolitan area, with a population of over 1,716,291 (2010 U.S. Census), making it the 35th-largest metropolitan area in the United States. "Keep Austin Weird" has become a local motto in recent years, featured on bumper stickers and t-shirts. This motto has not only been used in promoting Austin's eccentricity and diversity, but is also meant to bolster support of local independent businesses. According to the 2010 book, Weird City, the phrase was begun by a local Austin Community College librarian, Red Wassenich, and his wife, Karen Pavelka, who were concerned about Austin's "rapid descent into commercialism and over-development." The slogan has been interpreted many ways since its inception, but remains an important symbol for many Austinites who wish to voice concerns over rapid growth and irresponsible development. Austin has a long history of vocal resistance to development projects that degrade the environment and threaten the local cultural landscape. According to the Nielsen Company, adults in Austin read and contribute to blogs more than those in any other U.S. metropolitan area. Austin residents have the highest internet usage in all of Texas.

Austin was selected as the No. 2 Best Big City in "Best Places to Live" by Money magazine in 2006, and No. 3 in 2009, and also the "Greenest City in America" by MSN. According to Travel & Leisure magazine, Austin ranks No. 1 on the list of cities with the best people, referring to the personalities and attributes of the citizens. SoCo is a shopping district stretching down South Congress Avenue from Downtown. This area is home to coffee shops, eccentric stores, restaurants and festivals. It prides itself on "Keeping Austin Weird", despite development surrounding the area. Museums in Austin include the Texas Memorial Museum, the Blanton Museum of Art (reopened in 2006), the Bob Bullock Texas State History Museum across the street (which opened in 2000), the Austin Museum of Art (AMOA), and the galleries at the Harry Ransom Center. The Texas State Capitol itself is also a major tourist attraction. The Driskill Hotel built in 1886, and located at 6th and Brazos, was finished just before the construction of the Capitol building. Sixth Street is a musical hub for the city. The Enchanted Forest, a multi-acre outdoor music, art, and performance art space in South Austin hosts events such as fire-dancing and circus-like-acts. Austin is also home to the Lyndon Baines Johnson Library and Museum, which houses documents and artifacts related to the Johnson administration, including LBJ's limousine and a recreation of the Oval Office. Researchers at Central Connecticut State University ranked Austin the 16th most literate city in the United States for 2008. The Austin Public Library operates the John Henry Faulk Library and various library branches.

In addition, the University of Texas at Austin operates the seventh-largest academic library in the nation. Austin was voted "America's No.1 College Town" by the Travel Channel. Over 43 percent of Austin residents age 25 and over hold a bachelor's degree, while 16 percent hold a graduate degree. As of 2009, greater Austin ranks eighth among metropolitan areas in the United States for bachelor's degree attainment with nearly 39 percent of area residents over 25 holding a bachelor's degree. Austin is home to The University of Texas at Austin, the flagship institution of the The University of Texas System with over 38,000 undergraduate students and 12,000 graduate students. In 2010, the university was ranked 45th among "National Universities" (13th among public universities) by U.S. News and World Report. UT has annual research expenditures of over $640 million and has the highest-ranked business, engineering, and law programs of any university in the state of Texas.

McCombs School of Business

The McCombs School of Business also referred to as the McCombs School or simply McCombs, is a business school at The University of Texas at Austin. In addition to the main Austin campus, McCombs offers classes outside Central Texas in Dallas, Houston and internationally in Mexico City. The McCombs School of Business offers undergraduate, masters, and doctoral programs for their average 6,000 students each year, adding to its 85,000 member alumni base from a variety of business fields. In addition to traditional classroom degree programs, McCombs is home to 14 collaborative research centers, the international business plan competition MOOT Corp, and executive

education programs. The McCombs School of Business consistently ranks among the top business schools in the nation, the majority in the top 10 and is the oldest public business school in Texas. The University of Texas at Austin (UT Austin) was founded in 1883, and the university's School of Business Administration was established a few decades later in 1922. The school quickly grew, establishing a Master of Professional Accounting program in 1948 and offering its first executive education programs in 1955. Effects of the 1990s technology boom and dot-com bubble were palpable in Austin, leaving the nickname "Silicon Hills" on the city. One McCombs School program that has capitalized on this is the Moot Corp, which is now the oldest operating inter-business school new-venture competition in the world. Begun in 1984, it has been dubbed the "Super Bowl of world business plan competitions."

Also opportunistic was the creation of the school's first Management Information Systems degree in 1990. The MBA Investment Fund, LLC was also founded in 1994, becoming the first legally constituted investment fund run by Master of Business Administration (MBA) students and proving quite successful, with a 17.5 percent annual return to date. Additionally, in 1995 the college became the first to require students have an e-mail address. On May 11, 2000, businessman Red McCombs announced a $50 million donation to UT Austin. In his honour, the College of Business Administration and the Graduate School of Business were merged under the newly created Red McCombs School of Business. The McCombs School of Business is located in the heart of The University of Texas at Austin campus. The majority of the McCombs School is housed in a three-building complex called the George Kozmetsky Centre for Business Education named after, philanthropist and former College of Business Administration dean, Dr. George Kozmetsky at the intersection of 21st and Speedway Streets. The McCombs School is bordered by Waggener Hall (the former home of the College of Business Administration) to the North, Gregory Gymnasium, and E. P. Schoch Building (one of the last overseen by campus master planner Paul Cret) to the East and is adjacent to PerryCastaeda Library to the South. In March 1976, Graduate School of Business Building opened next to the existing building facing 21st Street. Since its inception, the addition to the College of Business Administration Building houses the separate graduate MBA program. The addition was constructed in a rhombus shape to protect a grove of trees on the north side of the building.

Located on the southwest corner of the UT campus, the AT&T Executive Education and Conference Centre are a multi-function complex and hotel. The facility has multiple sized classrooms and breakout rooms, a 300-seat amphitheatre, ballroom, three restaurants, and 297 hotel rooms. The centre hosts all of the executive education programs for the McCombs School, including the Texas Executive Education and evening MBA programs. It's the first building to be built to the U.S. Green Building Councils LEED Silver certification standards on campus. McCombs is made up of a total of 5,984 students, 4,318 undergraduates, 1,569 postgraduate, and 97 doctoral students. All undergraduates classes are at the main campus in Austin while almost a quarter of postgraduate student classes are held outside of Central Texas in Dallas, Houston, and Mexico City. In addition to traditional graduation routes, McCombs offers a five year program where students earn their BBA and Master in Professional Accounting (MPA) degrees concurrently. The Texas Business Foundations Program (Texas BFP) offers non-business majors the opportunity to grasp the fundamentals of business operations and minor in business while pursuing any undergraduate program at the University of Texas at Austin. Students in the Business Foundations Program take seven business courses (two lower-divisions and five upper-divisions) in addition to their existing undergraduate course work. Students who complete the program are capable of integrating their major into future their career.

The McCombs School of Business awards the degrees of Bachelor of Business Administration (BBA), Master of Business Administration (MBA), Master in Professional Accounting (MPA), Master of Science in Technology

Commercialization (MSTC), Doctorate of Philosophy (PhD), as well as certificates upon completion of non-degree Executive Education programs. Programs awarding doctoral degrees at the McCombs School of Business are divided in five academic departments, Accounting, Finance, Information, Risk, and Operations Management (IROM), Management, and Marketing. A sixth department, Business, Government and Society, was created in 2010 and does not award a doctoral degree.

STRATEGIC MANAGEMENT
-Dr. Jim Fredrickson Chair, Department of Management Tom E. Nelson Regents Professor of Business

STATEMENTS OF STRATEGY: 1) Our strategy is to be the low cost provider. 2) Our strategy is to provide unrivalled customer service.

STRATEGY: Central connect of how we will achieve our objectives Recognition of an opportunity and plan for seizing it

FIVE MAJOR ELEMENSTS OF STRATEGY: 1) Arenas 2) Vehicles 3) Differentiators 4) Staging 5) Economic logic

DELLS DIAMOND STRATEGY:

Arenas: Desktop Pcs (64%), Laptops (23%), Servers/Storage (13%) Lca, Pad, Hsb... Etc

Vehicles: Primary internal growth. Partner with technology providers.

Differentiators: Customer service

Staging: Develop us small business market. Expand to large us corporate market. Expand globally.

Economic logic: Price leverage Cost leverage

CONCLUSIONS FROM DELL IN CHINA:

1) Org strategy is not anything us wants it to be.

2) To think about and communicate a strategy constructively, to identify, develop or evaluate it, we need an operational framework.

3) The Diamond Strategy is one such framework.

NEGOTIATIONS
- JOHN W. BURROWS Director, Texas Executive MBA Program Faculty, Department of Management

Negotiation: Its a decision making process by which two or more people agree how to allocate scarce resources.

Dangerous approaches: The born negotiator The expert negotiator The intuitive negotiator

NEGOTIATION SKILLS: Planning Claiming gains Creating value

Johns top 5 pithy tips 1. Plan., plan, plan systematically 2. Develop your BATNA 3. Ask and listen more, talk less 4. Search for quality agreements 5. Move up the learning curve.

ADVERTISING AND NEW MEDIA

-Dr. MATTHEW S. EASTIN (Associate Professor) PhD, Michigan State University MA, University Of Nebraska-Lincoln BA, University Of Michigan, 1961

Advertising: Advertising is a major tool in the marketing of products, services and ideas.

Advertising and communication: Through media - to many Through media - one Consumer - consumer

5 AREAS OF EMPHASIS: Markets Media Messages Money Measurement

Media Outlets: Traditional Media Newer Media Search engine optimization Social Networking Mobile Advertising Gaming All media represent tools for advertisers

Media Powers: Gate-keeping and Agenda-Setting Barriers to Entry Regulation and Economics Content for Mass Audiences Limited Consumer Power Content Creation Consumption

LEADING INNOVATION
-Dr. Luis Martins PHP, New York University, 1997 MPhil, New York University, 1995

Innovation: Innovation as an outcome: A novel, useful and implemented idea Innovation as a process: Generation, adoption, development, and implementation of a new idea.

Types of innovation: Product v/s process Racial v/s incremental Architectural v/s component Disruptive

The Innovation process: Divergence and Convergence Divergence: Expanding the surface area for innovation Convergence: Integrating ideas into focused themes

Innovation through Design Thinking: Take-Aways - Need to understand the customer, product, product, process etc - Pay attention to divergence and convergence - Effective brainstorming is an acquired skill - Design thinking can be applied broadly- to products, processes, services, etc.

ACCOUNTING & FINANCE

-Prof. Jim Nolen Distinguished Senior Lecturer Department of Finance Accountings Role: - To provide internal and external information about the past performance to company executives and investors - This information is communicated in financial statements Balance sheet Statement of shareholders equity Income statement Statement of cash flows Accountants are responsible for reporting, controlling and budgeting activities.

Finances Role: To analyse information about the past to make investment, financing and operating decisions that make company performance in the future Investment decisions to maximize return and includes: make v/s buy decisions, working capital management, treasury operations and asset acquisitions and diversities Financing decisions to minimize the cost of capital and includes: debt v/s equity financing and dividend policy Operating decisions that improve efficiencies and includes: pricing and product mix, purchasing and supply chain decisions, controlling expenses and risk management.

LEADING HIGH PERFORMANCE TEAMS

- Dr. ETHAN BURRIS Assistant Professor of Management Team: Essential discipline Small group with complementary skills Summated to shared purpose and performance goals and common approach Hold each other accountable

Key lessons: Behavioural Cognitive Motivational and emotional

Advantages of group decision making: More knowledge Increased "buy in" - commitment to decision Increased understanding of decision

Disadvantages of group decision making: Pressure to confirm Dominant members Push toward extreme views Time and effort

ENTREPRENUERSHIP
-JOHN N. DOGGETT Senior Lecturer Department of Management

How venture capital works? VC companies raise $ from pension funds, insurance companies, institutional investors and wealthy individuals General and limited partners Venture funds have 10 yr life All funds invested in 3-5 years ROI = $10 for every $1 invested Must exit investments in 3-6 years

Deals that excite VC's: Massive customer pain Large growing market > 1,000,000,000. Revolutionary or evolutionary solution 10 market share by year 5 Team of industry experts Cash flow positive by year 2 10x return on $1 of cash by year 5

How VCs make $: VC's firms live on 2% management fee VC firms must return 100% of original investment before sharing in profit VC partners get rich on their "carry" or "carried interest" Carry= 20% of profit above original investment VC firms have very few partners & staff

Funding Stages & Terms: These Terms are the same Stage Series Round Raise Business Idea and No Plan Seed Stage Early Stage

Stages, continued Business plan Functioning company and prototype Growing company and preparing for IPO Signs of trouble

BUILDING YOUR LEADERSHIP BRAND

-Dr. JOHN DALY University Distinguished Teaching Professor

Understanding the Brand Name: What is a Brand? Familiar: We immediately recognize the brand Attention: We pay more attention to the brand Preferable: Given a choice we select the brand Cachet: They give us status Quality: We perceive the brand to be high quality Dependable: We trust products using the brand Valued: We willingly pay more for the brand Extendable: we accept and buy new products us that fit the brand name

CHALLENGES IN GLOBAL MARKETING: Changing socio-politics Changing demographics Changing economics Changing environment

Building Affinity: Always Deliver More than Others Expect

The Key Formula: Delivered Effectiveness = _______________ Expected

Possible Ranges:

< 1.0 = 1.0 > 1.0

Social Effectiveness: Stay Attentive and Responsive A. Act Attentive B. Show Responsiveness

CONCLUSION

The United States is a multicultural nation, home to a wide variety of ethnic groups, traditions, and values. Aside from the now small Native American and Native Hawaiian populations, nearly all Americans or their ancestors immigrated within the past five centuries. The culture held in common by most Americansmainstream American cultureis a Western culture largely derived from the traditions of European immigrants with influences from many other sources, such as traditions brought by slaves from Africa. The McCombs School of Business is located in the heart of The University of Texas at Austin campus. The McCombs School of Business also referred to as the McCombs School or simply McCombs, is a business school at The

University of Texas at Austin. In addition to the main Austin campus, McCombs offers classes outside Central Texas in Dallas, Houston and internationally in Mexico City. The McCombs School of Business awards the degrees of Bachelor of Business Administration (BBA), Master of Business

Administration (MBA), Master in Professional Accounting (MPA), Master of Science in Technology Commercialization (MSTC), Doctorate of

Philosophy (PhD), as well as certificates upon completion of nondegree Executive Education programs.

BIBILIOGRAPHY

GOTA Handbook http://en.wikipedia.org/wiki/United_States http://en.wikipedia.org/wiki/Texas http://en.wikipedia.org/wiki/McCombs_School_of_Business