University of Illinois at Urbana-Champaign BADM 582: Multinational Management Spring Semester, 2013 Wednesday: 3:30 PM - 6:20 PM; Room

1041, BIF Professor Joseph Cheng, 4026 BIF Email: jlcheng@illinois.edu Office Hours: Tuesday 5:00 - 6:00 PM or by appointment Objectives: This course examines the strategic and organizational challenges facing managers of large multinational corporations (MNCs) that compete in the global marketplace. It has three main objectives. The first is to develop an understanding of the changing characteristics of the world economy and their strategic implications for MNCs. The second is to examine the organizational and implementation issues associated with different multinational competitive strategies. The third is to learn about best practices in managing the operations of MNCs, particularly from firms that adopt the transnational model of multinational management. Throughout the course, we will make use of a variety of materials, including theoretical readings, research reports, cases of real organizational problems, and documentary films. Emphasis will be placed on integrating theory and practice through a disciplined application of concepts and models to analyze problems. We will also welcome your personal experiences and observations as material for class discussion. Reading Materials: Bartlett, C.A. & Beamish, P. Transnational Management: Text, Cases, and Readings in CrossBorder Management. (TM) Sixth Edition. McGraw Hill/Irwin, 2011. (Required) Cheng, J.L.C. Maitland, E., & Nicholas, S. (Eds.) Managing Subsidiary Dynamics: Headquarters Role, Capability Development, and China Strategy. (MSD) Emerald Books: London, 2009. (Optional/Supplemental) Requirements: The course requirements include quality class participation, a final exam, two group case reports and presentations, an interim company project report, and a company group project report and presentation. Students will form their own groups of 4-6 persons each. The specific requirements to be evaluated, including course weights, are as follows: Class participation Final exam (cumulative) Two group case reports and presentations Interim company project report and presentation Final company project report and presentation 15% 30% 20% 10% 25%

Class Participation: As part of the class participation evaluation, the instructor will ask for volunteers and occasionally make lucky calls on the students to answer specific questions about the assigned readings, lead/summarize/integrate case discussion, and/or take part in certain activities (e.g., pop quizzes, class exercises) that contribute to class learning. To facilitate evaluation and recording of your class participation (including attendance), please fill out the attached student background form and return it to the instructor with a recent photo at the second class meeting. Also, please select a seat on the second day of class and use it for the remainder of the term. Exam: The final exam will be open-book, open-notes; but computers are not allowed. It is cumulative and may include a case analysis, short-answer, and/or essay questions. The exam will be two hours long and cover materials from the readings and all other information provided in class, including lectures, videos, and case presentations and discussions. Case Reports: Each group will select two (2) cases from the seven listed in the syllabus for analysis and presentation. One case will be selected from the first set of three and the second case from the remaining four. If more than two teams are choosing the same case, selection will be granted on a first-come-first-served basis according to the order in which the email request is received by the instructor. Case report is due at the beginning of the class on the scheduled date of presentation. The report (text no longer than 5 double-spaced pages, 12-point font, 1-inch margins) should include the following: 1. 2. 3. 4. A-page-and-a-half description of a critical problem facing the company based on an analysis of the information provided by the case. Identify the major causal factors involved and the sequence of events that led to this problem. A-page-and-a-half description of a critical problem facing the company based on information from the assigned readings for the week (of the case). Identify the major causal factors involved and the sequence of events that led to this problem. A half-a-page discussion of which of the two problems identified above is more important to the company. Explain the rationale for your choice. A-page-and-a-half discussion of 2-3 actions that you would recommend to address the important problem identified in (3). These recommendations should follow logically from the previous analysis with proper justification.

The group will have 15 minutes to present their case analysis, followed by a 10 minute Q&A. The presentation team should have no more than three persons You may want to do a rehearsal of your presentation to make sure it does not exceed the 15 minute limit. The main criterion in evaluating the case report and presentation will be its value-added contribution, demonstrated by the extent to which the group uses relevant course materials as a basis for identifying and analyzing the key issues and problems facing the company. Company Project: Each group will select a multinational firm of their choice for the project requirement and submit a final report (text no longer than 20 double-spaced pages, 12-point font, 1-inch margins) on May 1, 2013. The project report should include, but not limited to, the following information: 1. 2. 3. 4. 5. 6. 7. Industry background about the firm. History of the firms internationalization process. Analysis of the firms current strategic and organizational capabilities. Emerging changes in the firms global business environment and their strategic and organizational implications for firms competing in that environment. Assessment of the firms current strategic and organizational capabilities in addressing the environmental changes described above, Recommendations for strengthening the firms competitiveness in the next five years. Detailed description and justification for each recommended action.

Include an executive summary at the beginning and an appendix at the end of the report that provides a complete listing of the sources of information (e.g., books, articles, organizations, web sites, etc.) used for the project investigation. The group will have 15 minutes to present their group project report, followed by a 10 minute Q&A. All group members will participate in the presentation and Q&A. You may want to do a rehearsal of your presentation to make sure it does not exceed the 15 minute limit. Each group will submit a one-page (single-spaced) project proposal on January 30, 2013. The proposal should identify the multinational firm chosen for the project, some background description of the company and why it is chosen, a project timetable with specific milestones, and a listing of intended sources of information. Each group will also submit a five-page (double-spaced) interim report and present it in class on March 13, 2013 summarizing the progress made to date on the project. The main criterion in evaluating the project report and presentation will be its value-added contribution, demonstrated by the extent to which the group uses relevant course materials as a basis for identifying and analyzing the key issues and problems facing the company.

Group Management: Students will need to finalize their group formation by the end of the second week of class and select a representative as their groups contact person for the instructor. The representative will email the instructor before the third class meeting to provide the following information: 1. 2. 3. A name for the group for identification purposes (e.g., ABC Consulting). A listing of all group members names and their email addresses. Identification of the two cases that the group has selected for analysis and reporting.

All group members are expected to contribute equally to completing the group assignments. It is primarily your responsibility to eliminate free-riding. If you think that there is a problem in your group, you should first try to resolve it within the group. However, if this does not work, please discuss the matter with the instructor in a timely manner so that corrective actions can be taken. Students will submit a peer-evaluation of their team members contributions at the end of the semester. Individual grades may be adjusted depending on the peer-evaluation results. Attendance: Students are expected to attend all classes and have read all the assigned readings before class. They are also expected to participate in class discussions, just as they would do when attending a business meeting. If you have to miss a class for a valid reason, please email the instructor beforehand to avoid penalty on your class participation grade. NOTE: If you are experiencing flu like symptoms (cough, fever, running nose, body ache, etc.), seek medical help and do not come to class. Evaluation Criteria: Three main criteria will be used in evaluating your performance on the assignments: a. b. c. Your knowledge and understanding of the materials covered in class and the assigned readings. Your synthesis of these materials. Your ability to apply the materials to analyze and solve problems.

Each criterion is equally important. It is not possible to use information unless it has been acquired and understood. This means that you need to study the assigned readings and attend class. It is not likely that synthesis can be achieved with memorization, since the ability to perceive relationships depends on understanding. Finally, if we are to enhance your managerial effectiveness it will be necessary to focus upon how the information can be applied to solve reallife problems. (We achieve this primarily through analysis of case problems.) All assignments are to be completed on schedule. No late submissions will be accepted. 4

Class Etiquette: 1. 2. 3. 4. 5. 6. Be on time and dont leave early. Do not disrupt the class with side conversations during class. Be respectful of others in the class. Listen and give attention when someone talks. All cell phones and messaging devices should be turned off during class. Please do not leave and re-enter the room during class except for emergency. Using laptops in the classroom is a privilege, not a right. Laptops are to be used for class activities only. If you are seen more than once doing non-class related activities with your laptop (e.g., net surfing, emailing) during class, you lose laptop privileges for the remainder of the course, and/or take a penalty of half-a-grade reduction (e.g., from A- to B+).

Repeated violations of items 1-5 above may hurt your class participation grade at the instructors discretion. Enrollment in this course indicates that you have read and accepted the terms stated above in this course outline.

Syllabus Date 1/16 Topic, Activity, and Reading Assignment Introduction to course Globalization and multinational management The changing focus of international business studies Video presentation & discussion: Learning from Global Competition in the 1990s Readings: Preface: Pages vi - vii (TM) R1-1: The Tortuous Evolution of the Multinational Corporation (TM) 1/23 Foreign direct investment and the multinational firm Integrating firm and location/country advantages Global trends, opportunities, and challenges Video presentation & class discussion: Boeing vs. Airbus Readings: Lu, J.W. & P. Beamish. International Diversification and Firm Performance: The SCurve Hypothesis. Academy of Management Journal, 2004, 47, 598-609. Habib, M. & L. Zurawicki. Corruption and Foreign Direct Investment. Journal of International Business Studies, 2002, 33, 291-307. Optional: Preface in Managing Subsidiary Dynamics (MSD) 1/30 The internationalization of firms Motivations and success factors Foreign market entry modes Case (1-2) analysis & group presentations: Jollibee Foods Corporation Readings: Ch.1: Expanding Abroad ..." (TM) R1-2: Distance Still Matters ... (TM) Optional: Competition, Learning, and Foreign Entry ... (MSD) 2/6 The changing nature of international competition Competing forces on multinational management decisions Company response to changing industry dynamics Case (2-1) analysis & group presentations: Global Wine Wars Readings: Ch.2: Understanding the International Context ... (TM) R2-2: Clusters and the New Economics of Competition (TM) Optional: The Dynamics of Attention Markets in Multinational Enterprises (MSD) 6

2/13

Multinational competitive strategies Sources of worldwide competitive advantage Configuration and coordination of assets and capabilities Case (3-3) analysis & group presentations: GE Imagination Breakthroughs ... Readings: Ch.3: Developing Transnational Strategies ..." (TM) R3-1: Managing Differences ... (TM) Optional: Subsidiaries in Motion ... Sunk versus Flexible Assets (MSD)

2/20

Strategic alliance and joint venture management Motives and cost/benefit analysis Building and managing collaborative operations Video presentation and discussion: Managing Joint Ventures in China Readings: Ch. 6: Engaging in Cross-border Collaboration ... (TM) R6-2: Collaborate with Your Competitors and Win (TM) Optional: The Effects of Strategies ... in Sino Joint Ventures or New Perspectives on Subsidiaries in the Transition Economy of China (MSD)

2/27

Organization design for multinational operations -- I Multinational structures and coordinating mechanisms Roles for multinational subsidiaries Case (1-3) analysis & group presentations: Acer, Inc.: Taiwans Rampaging Dragon Readings: Ch.4: "Developing a Transnational Organization ..." (TM) R7-2: "Tap Your Subsidiaries for Global Reach" (TM) Optional: A Re-examination of the Fit of Matrix Structures ... (MSD)

3/6

Organization design for multinational operations -- II Worldwide learning and innovation Knowledge management within the transnational Case (5-2) analysis & group presentations: P&G Japan Readings: Ch.5: Creating Worldwide Innovation and Learning ... (TM) R5-1: Building Effective R&D Capabilities Abroad (TM) Optional: Subsidiary Capability Development ... (MSD)

3/13 3/20

Interim Company Project Report & Presentation ** SPRING BREAK ** 7

3/27

Building and managing the multinational Managerial roles and responsibilities Developing multinational managers Video presentation and discussion: Going International Readings: Ch.7: Building Multidimensional Capabilities ... (TM) R7-1: Local Memoirs of a Global Manager" (TM) Optional: Does Knowledge Sharing Pay ... (MSD)

4/3

Evolution of the multinational firm New competencies for new management roles Implications for career management and human resource development Case (5-3) Analysis & group presentations: McKinsey & Company ... Readings: Ch.8: The Future of the Transnational ... (TM) R4-1: Managing Multicultural Teams (TM) Optional: The Liability of Foreignness, Capabilities, Knowledge ... (MSD)

4/10

New opportunities and challenges in multinational management - I Managing corporate and social responsibility Managing diversity and interdependence Case (8-1) Analysis and group presentations: Hitting the Wall ... Readings: R8-2: Serving the Worlds Poor, Profitably (TM) Khanna, T.G. & K. Palepu. Globalization and Convergence in Corporate Governance: Evidence from Infosys and the Indian Software Industry. Journal of International Business Studies, 2004, 35, 484-507. Optional: The Changing Dynamics of Headquarters-Subsidiary Relations ... (MSD)

4/17

New opportunities and challenges in multinational management - II Managing in the emerging markets Managing in the global knowledge economy Video presentation & discussion: The Challenge from Asia Readings: TBA

4/24 5/1

Company Project Report Presentation - I Company Project Report Presentation - II Course Review

About the Instructor Joseph Cheng is Professor of International Business and Director of the Illinois Global Business Initiative (IGBI) at the University of Illinois at Urbana-Champaign. He is also Principal Investigator and Founding Director of the CIC Center for Advanced Study in International Competitiveness (CASIC), a collaborative research effort recently launched by the Committee on Institutional Cooperation (CIC), a university consortium of the Big Ten schools plus the University of Chicago (see https://www.cic.net/casic). During 2012, he was a Visiting Professor at Stanford Universitys Asia-Pacific Research Center. Professor Cheng received his Ph.D. in Business Administration from the University of Michigan and a B.S. (with honors) in Industrial Engineering from the University of WisconsinMadison. From 1999 to 2006, he was the director of the University of Illinois CIBER (Center for International Business Education and Research), a U.S. federally-funded national resource center. He was also an elected officer of the Academy of Management (AOM) International Management Division during 1999-2004, serving in various leadership roles including pre-conference chair, program chair, and division chair. Professor Cheng's current research interests include strategy and organization design for transnational firms, global competition and multinational management, foreign R&D investment, national innovation and technology policies, and Asian economies. He has published seven books and many refereed articles in leading U.S. and European academic journals, including the Academy of Management Journal, Administrative Science Quarterly, European Journal of International Management, Human Relations, Journal of International Business Studies, Journal of Management, Management International Review, Management Science, Organization Studies, and R&D Management, among others. Professor Chengs work has been supported by funding agencies both in the U.S. and abroad. Since 1990, he has received more than US$2 million external funding, including two multi-year Title VI grants from the Department of Education, and a grant award from the National Science Foundation Center for Innovation Management Studies. He has organized major academic and business conferences in a number of international cities, including Beijing, Chicago, Seattle, Sydney-Newcastle, Toronto, Washington D.C., and more recently, in Hong Kong for the 2012 CASIC research conference on China Business and International Competitiveness: Economics, Politics, and Technology. Professor Cheng has received recognition for research, teaching, and professional service excellence, including the Leading Book Series Editor Award from the Emerald Group Publishing, a Best Paper Award from the AOM Organization and Management Theory Division, Excellent Teacher Listings at the University of Illinois at Urbana-Champaign, an Outstanding Elective Professor Award from The Ohio State University MBA Programs (full-time, evening, and weekend), and a Distinguished Service Award from the AOM International Management Division. He is a Consulting Editor for the Journal of International Business Studies, Senior Editorial Consultant to the European Journal of International Management, and was the lead Co-Editor of Advances in International Management during 1996-2009. He currently serves or has served on the editorial review boards of Management International Review, Journal of World Business, Organizational Dynamics, Journal of International Management, and Journal of Engineering and Technology Management.

BADM 582: Multinational Management STUDENT BACKGROUND AND INPUT FORM (Please return to instructor at the second class meeting with a recent photo attached) Name: ___________________________ Home Country: _____________________ Phone: __________________ E-mail:__________________

Previous School(s) and Diploma(s)/Degree(s) Received (indicate year diploma/degree granted): _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Work Experiences during Last Three Years: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Career Objectives for Next Five Years: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Expectations from the Course: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Your Key Strengths and Weaknesses (if any): _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Your Hobbies (if any): _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Additional Information Professor Should Know about You: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

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