Business School

Course Study Guide

2010–11

International Business Management

BUSI 1346
Contents

1. WELCOME ........................................................................................................................................ 3
2. INTRODUCTION TO THE COURSE................................................................................................. 4
2.1 AIMS ........................................................................................................................................... 4

2.2 LEARNING OUTCOMES ................................................................................................................. 4

2.2.1 Knowledge and understanding of: ........................................................................................ 4

2.2.2 Intellectual Skills: .................................................................................................................. 4

2.2.3 Subject practical skills: ..................................................................................................... 5

2.2.4 Transferable skills: ................................................................................................................ 5

2.3 LEARNING AND TEACHING ACTIVITIES ............................................................................................ 5

3. CONTACT DETAILS ......................................................................................................................... 6

4. MODULE DETAILS ........................................................................................................................... 7
4.1 SESSION READING..................................................................................................................... 18

5. ASSESSMENT DETAILS ................................................................................................................ 19

5.1 SUMMARY OF ASSESSMENT ........................................................................................................ 19

5.2 DETAILED DESCRIPTION OF ASSESSMENT .................................................................................... 19

6. OTHER DETAILS ............................................................................................................................ 20

1. Welcome

Welcome to the exciting world of International Business Management!

In this era of globalization, there are very few companies that can say that they are not part of a global
network. Every firm has to think of itself as a global company, if for no other reason than because it
has to meet competition from global companies. This changes the entire strategy of the firm. In the
future, we expect that all of you will be involved in managerial decision making that will take you
beyond the realms of your geographical territory. This course on International Business Management
will have the focus on helping you make better international decisions.

Aside from the opportunities offered by globalisation, there are also many risks in entering into the
global market. This course will attempt to address, in a structured format, the ways and possibilities of
addressing these risks. The basic philosophy behind this course is to develop a holistic understanding
of international business, appreciating the risks, and developing competence in using tools to mitigate
that risk.

In order to extract the most benefit from this course you will need to be actively engaged. You will gain
marks, up to 10% of the total score for the course, by attending and participating in tutorials. In
lectures, you will be encouraged to join in lively conversations. Like the old adage has it: “the more you
put into it, the more you will get out of it!”

Dr Michael Wynn-Williams
wm97@gre.ac.uk
2. Introduction to the Course
This course has been designed to draw on many of the business techniques you have learned
elsewhere and apply them in a variety of international contexts. You will learn how to handle the
complexities of international business and develop appropriate strategies.

We will start by looking at the opportunities for business offered by the international economic
environment. We will then evaluate the risks of entering the international arena, using theories that
have been developed to help formulate corporate internationalisation strategies. We will explore the
the structures that firms may opt for as they expand into unfamiliar territories.

At the end of this course you will have gained an international perspective on the challenges facing
business managers. You will then be equipped to take your place alongside them.

2.1 Aims
To give students a clear insight into the major external environmental factors governing international
business management. To provide an understanding of various management functions in an
international context at both a conceptual and a practical level.

2.2 Learning Outcomes

2.2.1 Knowledge and understanding of:
 The rationale for 'going international'.
 Measuring and managing environmental risk.
 The rise of Foreign Direct Investment (FDI) – horizontal and vertical FDI, managing host
regulation of FDI.
 Managing strategic dilemmas.
 Relationship between modes of entry, environment and strategy.
 Managing international strategic alliances.
 Organisational structure and culture.
 Control systems and incentives in an international context.
 National and international accounting standards and the consequences of differing standards.
 Investment decisions and financing decisions.
 Techniques for global money management, managing foreign exchange risk.
 Human resource considerations in internationally-oriented companies.
 Managing international operations

2.2.2 Intellectual Skills:

 Breadth of Outlook: Students will be able to address management issues from an international
perspective. Students will develop self-awareness, openness and sensitivity to cultural
diversity in dealing with international business issues and people from different cultural
backgrounds.
 Wisdom: Ability to present well balanced arguments in the context of management and
international business theories. Appreciation of the impact of ambiguity on managerial
decisions.
  Personal Effectiveness: Effective self-management in terms of time, planning, motivation,
individual initiative and enter-prise. Effective performance within a team environment
including leadership, team building, influencing and project management skills.

2.2.3 Subject practical skills:

 Abilities to conduct research into international business issues for a presentation and a review
report.
 Familiarity with a range of research sources and ability to apply international business and
management related theoretical frameworks.

2.2.4 Transferable skills:

 Critical Thinking: Be able to think globally and strategically in terms of identifying and solving
business problems. The ability to create, evaluate and assess a range of options together with
the capacity to apply ideas and knowledge to a range of situations.
 Information Management: Be able to search for, select and process relevant information
guided by relevant theoretical frameworks.
 Communication Skills: Communicate effectively within group work and team activities. Be able
to present concise and coherent ideas, oral or in writing, in a professional manner.

2.3 Learning and teaching activities

The course will be delivered through a weekly lecture and a tutorial. Lectures will provide a
comprehensive conceptual framework of the all key areas of international management. Tutorials will
focus on the discussion of case studies, the exploration of issues, and student presentations and will
involve tutor led discussions, group work and role play. Directed and self managed learning and
research will take place outside lectures and tutorials. Students will work in groups of 4-5 for
preparation and presentations.
3. Contact Details

Room Email address Phone number

Course Leader

Dr Michael Wynn-Williams QM 163 wm97@gre.ac.uk 0208 331 8920

Tutors

Mr Farzam Bonabi bf87@gre.ac.uk 0208 331 9167

Dr Colin Butler c.k.butler@gre.ac.uk 0208 331 9167

colinkbutler@yahoo.ie

Mr Imad Guenane gm77@gre.ac.uk 0208 331 9167

Admin Programme Coordinator

Alex Kubit-Hope QM245 Ka77@gre.ac.uk 0208 331 9840

Please see your programme handbook for more detail

4. Module Details

TOPIC 1: Foundations of International Business

LEARNING OUTCOME for this module:

Student will be able to:

 Analyse the opportunities offered by international trade

 Identify the risks related to globalisation

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o The opportunities and risks of globalisation for countries
o The application of Porter’s Diamond
o Export options and the role of banks

ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

20-Sep-10 1 Welcome back

27-Sep-10 2 Lecture Course Introduction Lecturer
Seminar Initial meetings, tutorial allocation, globalisation Tutors
Self- Reading introductory chapter of Set Text: DRS Chapter
Study
1
4-Oct-10 3 Lecture Foundations of International Business: Trade Lecturer
Seminar Porter’s Diamond Tutors
Self- DRS Chapter 6
Study
11-Oct-10 4 Lecture Foundations of International Business: Finance Lecturer
Seminar Export options Tutors
Self- DRS Chapter 6
Study

RESOURCES:

Course Handbook – distributed in seminar groups and on the WebCT site

Chapter 6 of Daniels, Radebaugh and Sullivan (DRS) International Business.

Tutorial materials: download from WebCT

DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 2: Country Risk Analysis (CRA)

LEARNING OUTCOME for this module:

Student will be able to:

 Discuss the most important factors of balance of payments for investment purposes
 Analyse political risk factors
 Calculate the IMF memo ratios

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o Calculation of IMF memo ratios
o Analysis of political risk factors
o The application of Porter’s Five Forces model

ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

18-Oct-10 5 Lecture Understanding the BOP system Lecturer

Seminar Classification and country risk analysis (CRA) Tutors
Self- DRS Chapter 6
Study
25-Oct-10 6 Lecture CRA 1: Political Risk Analysis Lecturer
Seminar Political risk analysis for Switzerland and Afghanistan Tutors
Self- DRS Chapter 3
Study
1-Nov-10 7 Lecture CRA 2: Economic Risk Analysis Lecturer
Seminar Calculating BOP and IMF memo ratios Tutors
Self- DRS Chapters 3 and 4
Study
8- Nov -10 8 Lecture CRA 4: Positioning Risk Analysis Lecturer
Seminar Case Study: Porters 5 Forces model Tutors
Self- Porter (2008) journal article (WebCT download)
Study
RESOURCES:

Chapter 6, 3 and 5 of Daniels, Radebaugh and Sullivan (DRS) International Business.

Porter (2008) The five competitive forces that shape strategy (WebCT download)

Tutorial materials: download from WebCT

DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 3: Regulations and Responsibilities

LEARNING OUTCOME for this module:

Student will be able to:

 Critically analyse the steps to free trade

 Evaluate the necessity for corporate social responsibility

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o Discussion steps to free trade
o Critically analyse the limits of corporate social responsibility

ACTIVITY:

Week Session Title and Description Staff member

beginning associated

15- Nov -10 9 Lecture The Regulatory Framework for Business Lecturer
Seminar Case study: two countries progress to FTA Tutors
Self- Free trade: ViamInvest (internet download)
Study
22- Nov -10 10 Lecture Corporate Social Responsibility Lecturer
Seminar Fairtrade Tutors
Self- Nicholls and Opal – Fair Trade (Google Books
Study
download)
RESOURCES:

 Free Trade (ViamInvest) -

http://e.viaminvest.com/B10CompetitionInProductMarkets/App10PerfectMarketMode
l/Exhi_Perf_market_econ.asp
 Nicholls A & Opal C – Fair Trade (Google Books)
<http://books.google.co.uk/books?hl=en&lr=&id=Hmj6UlKhVDcC&oi=fnd&pg=PP10&dq=a
lex+nicholls+fair+trade&ots=5WbGN9Xkd1&sig=85eiXD_LeD3XfFsxZmp573_0j5A#v
=onepage&q=&f=false>

DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 4: Growth Strategies

LEARNING OUTCOME for this module:

Student will be able to:

 Apply Ansoff’s Matrix to a specific industry

 Critically analyse a diversification strategy
 Evaluate a foreign market entry decision

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o Application of Ansoff’s Matrix
o Discussion of diversification strategies
o Evaluation of a foreign market entry
ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

29-Nov-10 11 Lecture Growth Strategy (1): Ansoff’s Matrix Lecturer

Seminar Application of Ansoff’s Matrix to steel and insurance Tutors
industries
Self- DRS Chapter 13
Study
Research case studies for tutorial
6- Dec -10 12 Lecture Revision topics for report submission Lecturer
Seminar Revision topics for report submission Tutors
Self- Report preparation
Study
12- Dec -10 13 Lecture Growth Strategy (2): Diversification Lecturer
Seminar Case study: Cray Research future direction Tutors
Self- Read case study material (WebCT download)
Study
Winter Break 20 December – 7 January

RESOURCES:

Chapters 12 and 13 of Daniels, Radebaugh and Sullivan (DRS) International Business

Morrison J (2006) The international business environment: global and local marketplaces in a
changing world. Basingstoke: Palgrave

Cray Research case study material (WebCT download)

Vietnam market entry (WebCT download)

DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 5: International Operations

LEARNING OUTCOME for this module:

Student will be able to:

 Critically analyse different internationalisation strategies

 Deconstruct industry supply chains
 Apply Kotler’s 4 Ps model

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o Discuss the merits of various internationalisation strategies
o Draw up industry supply chains
o Us Kotler’s 4 Ps model as a conceptual framework

ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

10-Jan-11 17 Lecture Market Entry Decisions Lecturer

Seminar Case study: Vietnam market entry Tutors
Self- DRS Chapter 12
Study
Read case study material (WebCT download)
17- Jan -11 18 Lecture International Business Strategies Lecturer

Seminar Critical discussion: internationalisation strategies Tutors

Self- DRS Chapter 11
Study
24- Jan -11 19 Lecture International Supply Chain Lecturer
Seminar Examination of industry supply chains Tutors
Self- DRS Chapter 17
Study
31- Jan -11 20 Lecture International Marketing Lecturer

Seminar Application of Kotler’s 4 Ps model Tutors

Self- DRS Chapter 16
Study

RESOURCES:

 Chapters 11, 17 and 16 of Daniels, Radebaugh and Sullivan (DRS) International Business
 Management And Accounting Web (MAAW)
<http://maaw.info/LearningCurveSummary.htm>
 Download Route <http://www.downloadroute.com/VALUE-CHAIN-ANALYSIS-MEGA-
SOFTWARE-sqaki-com-16-VALUE-CHAIN-ANALYSIS-MEGA/image.html>
 Williamson O E (1981) The economics of organization: the transaction cost approach in
The American Journal of Sociology 87, 3, November 1981 pp548-577
DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 6: International Finance

LEARNING OUTCOME for this module:

Student will be able to:

 Complete a Balanced Score Card

 Critically analyse different financial evaluation tools
 Discuss the impact of currency devaluation

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o Complete a Balanced Score Card for the University of Greenwich
o Discuss the merits of NPV, IRR, pay-back period and cost-benefit analysis
o Identify the main factors involved in currency devaluation

ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

7-Feb-11 21 Lecture International Accounting Lecturer

Seminar Balanced score card Tutors
Self- DRS Chapter 18
Study
14-Feb-11 22 Lecture International Finance Lecturer
Seminar Financial evaluation tools Tutors
Self- DRS Chapter 19
Study
21-Feb -11 23 Lecture Foreign Exchange Markets Lecturer
Seminar Case study: currency devaluation (WebCT download) Tutors
Self- DRS Chapter 9
Study
RESOURCES:

 Chapters 18, 19 and 9 of Daniels, Radebaugh and Sullivan (DRS) International Business
 Balance Scorecard (Kaplan & Norton):
<http://www.quickmba.com/accounting/mgmt/balanced-scorecard/>
 Foreign exchange risk <http://www.exinfm.com/board/foreign_exchange_risk.htm>
 Bank of International Settlements <http://www.bis.org/>
 BIS Triennial Review 2004-2007
<http://www.bis.org/publ/rpfxf07t.pdf>
 Bank of Korea <http://eng.bok.or.kr/>
 Big Mac Index
<http://www.economist.com/daily/chartgallery/displaystory.cfm?story_id=15210330>

DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 7: International Partnerships

LEARNING OUTCOME for this module:

Student will be able to:

 Develop arguments concerning FDI from the point of view of corporations and
governments
 Critically analyse the alliance strategy of Mitsubishi Motors

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o FDI by Unilever in Lesotho
o Mitsubishi Motors network of alliances and licence agreements
ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

28-Feb-11 24 Lecture Foreign Direct Investment Lecturer

Seminar Tripartite FDI decisions Tutors
Self- DRS Chapter 5
Study
7-Mar-11 25 Lecture Global Strategic Alliances Lecturer
Seminar Strategic alliances in the automotive industry Tutors
Self- Case study material: Mitsubishi
Study

RESOURCES:

 Chapter 5 of Daniels, Radebaugh and Sullivan (DRS) International Business

 Strategic Alliances
<http://www.iveybusinessjournal.com/view_article.asp?intArticle_ID=417>
 OECD definition of FDI <http://www.oecd.org/dataoecd/10/16/2090148.pdf>
 UNCTAD
http://www.unctad.org/Templates/webflyer.asp?docid=11917&intItemID=1465&lang=1
 Strategic Alliances
<http://www.iveybusinessjournal.com/view_article.asp?intArticle_ID=417>
 Qiu L D (2001) Cross border strategic alliances and foreign market entry
<http://www.gsm.pku.edu.cn/store/object/2007128225440607-9.pdf>
 Association of Strategic Alliance Professionals <http://www.strategic-alliances.org/>
 Humphries A S and Wilding RD: Long Term Collaborative Business Relationships: The
Impact of Trust and C3 Behaviour
<http://www.ingentaconnect.com/content/westburn/jmm/2004/00000020/F0020009
/art00011>

DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 8: International Culture

LEARNING OUTCOME for this module:

Student will be able to:

 Categorise national characteristics by cultural dimensions

 Analyse an MNE structure at the local level

EVIDENCE:

 Problem based learning tasks during the lecture

 Tutorial activities:
o Selection of a case study country and presentation of two indicative cultural
dimensions
o Analysis of a chosen case study company that illustrates structural adaptation
to the local conditions, and the impact on the rest of the organisational
structure

ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

14-Mar-11 26 Lecture International Culture and Dimensions

Seminar Student presentation: two cultural dimensions
Self- DRS Chapter 2
Study
21-Mar-11 27 Lecture Organisational Issues
Seminar Student case study: MNE structure and adaptation
Self- DRS Chapter 15
Study
28-Mar-11 28 Lecture Course conclusions
Seminar Topics for revision
Self- Revision for exam
Study
Spring Break 4 April – 25 April

RESOURCES:

 Chapters 2 and 15 of Daniels, Radebaugh and Sullivan (DRS) International Business

 Ailon G (2008) Mirror, Mirror on the Wall: Culture's Consequences in A Value test of
Its Own Design in The Academy of Management Review Vol. 33, No 4 / 2008 pp.885 -
904
 McSweeney, Brendan (January 2002). Hofstede's Model Of National Cultural
Differences And Their Consequences: A Triumph Of Faith - A Failure Of Analysis in
Human Relations 55 (1): pp.89–118.
DISCOURSE:

Contribute actively during the tutorials and lectures.

TOPIC 9: Revision

LEARNING OUTCOME for this module:

Student will be able to:

 Request revision assistance and actively engage in the topics

EVIDENCE:

 Student feedback

ACTIVITY:

Week Wk Session Title and Description Staff member

beginning associated

26-Apr-11 29 Lecture Revision Lecturer

Seminar Revision Tutor
Self- Revision
Study
3-May-11 30 Lecture Revision Lecturer
Seminar Revision Tutor
Self- Revision
Study
9 May – 27 May Exam period

RESOURCES:

 Module resources
 Course reading list

DISCOURSE:

Prepare questions and request revision focus.

4.1 Session Reading
Reference
Daniels, Radebaugh & Sullivan (DRS) International
Business. London: Pearson
Porter (2008) The five competitive forces that shape
strategy
Morrison J (2006) The international business
environment: global and local marketplaces in a
changing world. Basingstoke: Palgrave
Wynn-Williams M (2009) Surfing the Global Tide.
London: Palgrave
Other reading material as listed under the Resources section of each topic (see section above)
Key aspects to consider
Core text. In particular Chapters 1, 3, 4,
6, 11 to 13 and 15 to 19
Download from WebCT
Recommended alternative to DRS.
Available in the library. Overview of
globalisation and alliances in the
automobile industry.
5. Assessment Details
Individual Report - 30% 3,000 words (+/- 10%). A report in response to a topic chosen from a given list
(see below).

Exam - 60% 3 hours. A closed book exam consisting of a case study and some essay type questions.

Attendance - 10%. Attendance and participation is required at every tutorial.

Minimum course pass mark - 40%.

5.1 Summary of assessment

Assessment Title Weight Pass Length Due Date Return Header

towards Mark Date Sheet #
final grade
Tutorials 10% 40% NA Every week NA NA
Report 30% overall 3,000 15.12.10 3PM 10.01.11 170975
Examination 60% 3 Hours May 2011 NA NA

5.2 Detailed description of assessment

1. Performance in tutorials: tutorials and seminars are an important part of your understanding
of the course. Your performance will be assessed by your tutor both in terms of physical
attendance, participation and preparedness.
2. Project Report: all students are to write a report as part of the course assessment. The report
topics and evaluation criteria are listed below. Students are required to submit their report
electronically by 15th December 2010 (3pm).
3. Examination: the examination, held in May 2011, will be a comprehensive 3 hour closed-book
examination aimed at evaluating the students understanding of the entire course. Students
may refer to the past years’ examination papers as a guide to preparation. Copies of previous
examination papers can be found on the Student Portal.

5.2.1 Report Topics

Choose ONE of the following topics for your report. The report should be no longer than 3,000 words
(+/- 10%) and submitted, with a header sheet, by 15th December 2010 (3pm). Each response should
demonstrate understanding of the relevant theory, with application to examples.

Topics:

1. Free trade offers many opportunities for a growing business. As a management consultant,
how would you advise a company, representing an industry of your choice, to fully exploit
these opportunities when looking to expand into foreign markets for the first time?
2. Globalisation can be very threatening for smaller firms. How can governments and other
supranational authorities support these firms?
 3. When entering a foreign market for the first time, a firm will be faced with many unknowns.
Distinguish between the concepts of “risk” and “uncertainty” when a firm is entering a market
of your choice. Give examples of types of risk.
4. Examine the different export strategies that are available to a firm internationalising for the
first time. With reference to specific examples, analyse the advantages and disadvantages of
an export strategy.
5. Globalisation allows companies to explore opportunities in new or established markets, with
new or existing products. Discuss the strategic options and provide examples.
6. What is the purpose of the Fairtrade movement, and how effective can it be? Refer to an
industry and country of your choice.

Marks allocated to Criteria

criteria:
20% Focus
Does the report address the central problem?
Does the essay stay within the topic parameters?
30% Synthesis
Does the essay bring together the literature in a significant manner that
addresses an essay question?
Is the relevant theory critically addressed?
30% Comprehension
Does the essay indicate a comprehensive understanding of the topic area
and literature discussed?
10% Report structure
Is the essay well organised and logically constructed?
10% Style
Is the essay clearly written, spell checked and grammatically sound and
referenced appropriately?

6. Other Details
The majority of information relevant to you while you study at the University has been brought
together into your programme handbook. Please refer to your programme handbook for any further
information you might require including methods of submitting assignments, advice and
administrative procedures.