IB 395 (04750)
GLOBAL STRATEGY AND MARKETING
SPRING 2009
Class Time: MW 12:30-2:00
Place: UTC 1.102
Professor: Dr. Kate Gillespie
Office Hours: M/W 10:45-11:30 and 5:00-6:15
Office: CBA 7.258
E-mail: kate.gillespie@mccombs.utexas.edu
Phone: 471-5438
Assistant: Ms. Jessica Zhang
e-mail: jessicajiezhang@mail.utexas.edu
COURSE OBJECTIVES
This course is designed to present an overview of strategy and international marketing in
an increasingly global marketplace. It provides frameworks for
understanding the globalization potential of different industries
assessing the desirability of specific foreign markets
determining the best mode of entry for a market
managing political risk
evaluating competitive options for both global firms and local firms defending
against global competitors
understanding culture‟s impact on marketing
adapting and globalizing the marketing mix
organizing transnational firms to better implement global strategies
REQUIRED TEXT/READINGS
1. Yip, George S., Total Global Strategy II (available at UT Coop)
2. Case/Note Packet—an asterisk (*) following a note or case designates this
package. This package is scheduled to be available at January 21 at University
Duplicating GSB 3.136.
3. Articles available online through the university library are listed with authors and
italicized titles in the syllabus. They can be accessed by logging on to the
university library site at www.lib.utexas.edu. Then click on Research Tools and
then on Databases and Indexes to Articles. Then go to Business Source Complete.
Type in the article title. You will either find a direct link to the full article or be
sent to a „Find It Out‟ link that will take you to the article. This is an attempt to
saves you of money by avoids hefty copyright payments incurred when
duplicating these articles in readings packets.
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Class Website
Web-based, password-protected class sites are available for students enrolled in
accredited courses taught at the University. Go to http://courses.utexas.edu/ Syllabi,
handouts, assignments and other resources are types of information that may be available
on these sites. Class e-mail rosters will be a component of these sites. Students who do
not want their names included in these electronic class rosters must restrict their directory
information in the Office of the Registrar, Main Building, Room 1. For information on
restricting directory information see:
http://www.utexas.edu/student/registrar/catalogs/gi00-01/app/appc09.html
Please check regularly the Blackboard site for this class for any new announcements.
Please be sure your correct e-mail address is registered with Blackboard. Only you can
change this address.
GRADING GRADE COMPUTATION
Midterm I: 35%
Midterm II: 40% 100 A 93 77 > C 73
Class Participation: 25% 93 > A- 90 73 > C- 70
90 > B+ 87 70 > D+ 67
87 > B 83 67 > D 63
83 > B- 80 63 > D- 60
80 > C+ 77 F < 60
Mid-term Exams
Midterms are take-home cases. Exams must be individual efforts. Students will be
evaluated on (1) case analysis and (2) clear application of course frameworks and
concepts from readings, lectures, and prior case lessons. The latter will significantly
affect your exam grade.
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Class Participation/attendance
Students should be prepared to discuss readings and/or case for the date assigned.
Discussion questions should be addressed. Daily participation grades will be given.
Students are expected to participate daily (unless there is a really good reason) and to
courteously engage other students in public discussion. If not prepared, please let me
know at the beginning of class so I (hopefully) don‟t keep calling on you! Students
wishing to receive participation credit on case days when they are absent or not
prepared must submit a 500 word case write-up addressing the discussion questions for
the case. However, write-ups should be the exception and are limited to 2 per
student and must be turned in within a week of the missed class. Good attendance and
in-class participation are expected. When mid-term exams are returned, I will also give a
mid-term estimate (not a hard grade) for participation. If you wish to discuss your
participation at any time, please make an appointment to come in and see me.
Suggestions for How to Get an “A” in Case Discussions:
Prepare well. Read and analyze the case. Take notes. Differentiate fact from
opinion. Push numbers where appropriate. Identify contradictions and issues that
need to be resolved. Determine the why behind the what. Use the discussion
questions as a guide but also identify other questions that you think are important.
Look at the exhibits at the end of the case and identify the value-added they
supply. Be ready not only to analyze the situation but to offer thoughtful solutions
to the problem or problems posed in the case. Identify different options and weigh
the pros and cons of each. Be ready to say for each case what you would do and
why? Integrate the readings into your analysis.
Be an active and courteous participant. Be prepared to volunteer. Be prepared to
be called upon. Listen to what other students say and be ready to respond to their
comments. Feel free to challenge ideas while respecting the different viewpoints
of others. Do not look to the professor to reject or confirm what you or others say.
I will intervene at times to move the discussion on, to ask for clarification, or to
play devil‟s advocate. But a good case discussion belongs to the whole class.
If you stumble, get up. If I call on you in class one day and you judge your
performance to be less than stellar, try to be very active and insightful in the next
case discussion.
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IB 395
Global Strategy and Marketing
Course Outline-Fall 2007
(Subject to Moderate Change)
Session 1, January 21
Class Introduction
Session 2, January 26
Diagnosing Industry Globalization Potential
Reading:
1. Yip, Chapters 1, 2, and 9
Session 3, January 28 STUDENT INFO SHEETS DUE
Case: Medtronic, Inc.*
Discussion Questions:
1. Evaluate the globalization drivers for this industry.
2. Evaluate Medtronic‘s history and its international expansion.
3. Does Medtronic have a global strategy? Should it? Explain your answers.
4. What suggestions would you offer the company?
Session 4, February 2
Global Market Participation
Readings:
1. Yip, Chapter 3
2. J. Monti and G. Yip, Taking the High Road When Going International
3. Longman, P. The Global Baby Bust
Discussion Questions:
1. Based on today‘s readings, would you change in any way your evaluation
of Medtronic‘s internationalization?
2. Based on ―The Global Baby Bust‖ which national markets look best (and
worst) for the industries in which you are interested in working?
3. What are the pros and cons of entering international markets with
partners?
4. Is partnering more appropriate for certain industries than for others? If
so, what industries are more appropriate for partnering?
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Session 5, February 4
Market Participation (continued)
Case: Grupo Bimbo*
Discussion Questions:
1. Which globalization drivers are key to Bimbo‘s global market
participation?
2. How would you propose to address the challenges that Grupo Bimbo faces
in Brazil? Be specific about which actions you would take and which
problems those actions would solve.
3. How would you propose to address the challenges that Grupo Bimbo faces
in the United States? Be specific about which actions you would take and
which problems those actions would solve.
4. Should Grupo Bimbo be going to China? Why or why not? If Grupo
Bimbo continues its expansion in China, what (if anything) would you
change about their strategy there?
Session 6, February 9
Market Entry Options (continued)
Reading:
1. Note on International Licensing*
Case: Cameron Auto Parts (A)*
Discussion Questions
1. Based on the globalization drivers, how important is it that Cameron
internationalize? Why?
2. Is the U.K. a reasonable market for Cameron to enter? Why or why not?
3. Should Cameron have licensed McTaggart or continued to export?
4. Was McTaggart a good choice for a licensee?
5. Was the royalty rate reasonable? How would you make this decision
based on numbers from the case?
6. What items from the licensing checklist (see Note on International
Licensing) are not resolved? Do you think any of these unresolved items
are critical to the success of the deal?
7. How might Cameron‘ s management be better prepared to negotiate with
McTaggart?
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Session 7, February 11
Market Entry Options (continued)
Case: Cameron Auto Parts (B)*
Discussion Questions:
1. What have we learned so far about McTaggart?
2. What is your appraisal of the Australian joint venture proposal?
3. What about the Michelard proposition?
4. What should Cameron do about the European market?
Session 8, February 16
Market Entry: Managing Political Risk
Reading:
1. Note on Political Risk Analysis*
2. P. Kotler, Megamarketing
Case: White Nights and Polar Lights: Investing in the Russian Oil Industry*
Discussion questions:
1. How does the international oil market work?
2. How important is the acquisition of Russian oil to a Western oil firm?
3. Evaluate the strategies of Phibro, Mobil, and Conoco. Which is the
wisest? Why?
4. How might Western companies utilize ‗megamarketing‘ to protect their
investments in the Russian oil sector? Are there limitations to
megamarketing in this context?
Session 9, February 18
Locating Global Activities
Reading:
1. Yip, Chapter 5
Case: Palliser Furniture, Ltd.*
Discussion Questions:
1. Evaluate the globalization drivers for this industry.
2. What factors should influence where Palliser locates each activity – R&D
through marketing?
3. Evaluate the Chinese and Mexican investment options particularly in light
of your discussion of question 2.
4. What strategic role should a production site in Mexico play? A production
site in China? Can they be more than simply production sites?
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Session 10, February 23
Global Competitive Moves
Reading:
1. Yip, Chapter 7
Case: Otis Pacific Asian Operations (A): National Challenges*
Discussion Questions
1. Evaluate the globalization drivers for this industry. What implications do
they have for market participation, location of activities, and global
competitive moves?
2. Who are the main competitors? What and where are their strengths and
weaknesses?
3. Prepare a Business-Growth/Competitive Strength Matrix for Otis—both
globally and for Asia specifically. What actions does it suggest?
4. What actions would you suggest for Hong Kong, Malaysia, India and
Japan? To what degree should competitive moves influence decisions
concerning these markets?
5. Otis arguably enjoyed a first-mover advantage over competition for 100
years then lost it almost overnight. What suggestion do you have for Otis
worldwide?
Session 11, February 25
Competitive Moves (continued)
Reading:
1. N. Dawar and T. Frost, Competing With Giants
Case: SADAFCO*
Discussion Questions:
1. What are the strengths and weaknesses of SADAFCO?
2. At what stage of development is the Saudi Arabian ice cream market?
How will the entry of the multinationals influence the development of the
market?
3. What should be SADAFCO‘s response to the intensified competition in the
ice cream market? Can it survive?
Mid-term questions will be distributed in class today.
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Sessions 12/13, March 2/4
Mid-term Exam
Take-home exam in progress. Class does not meet, but written case exam is
due by noon Thursday, March 5 at CBA 7.202 (Marketing Department
Office).
GLOBAL TRIP PERIOD AND SPRING VACTION—CLASS DOES NOT MEET
Session 14, March 23
Culture Shock
Case: The Case of the Untouchable Water Carrier*
Discussion questions:
1. Should Sundara Raman have chosen Kishore Kumar as the water-carrier?
2. What do you suggest he do now?
Session 15, March 25
Culture and Marketing
Reading:
1. National Culture and Management*
2. National Values of Hofstede‟s Cultural Dimensions*
Discussion Questions:
1. What cultural shocks have you experienced?
2. Can these shocks be explained in terms of concepts presented in the
readings for today?
3. For each of the four Hofstede dimensions of culture, suggest how that
dimension might affect products, pricing, promotion, or distribution in at
least one way. Please come to class with at least four specific ideas
written down!
4. What are the advantages and limitations to frameworks such as the
Hofstede dimensions?
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Session 16, March 30
Culture and Marketing (continued)
Session 17, April 1
Culture and Marketing (continued)
Case: Sealed Air Taiwan (A)*
Discussion Questions:
1. Compare the Hofstede scores of Taiwan and the United States. What
insights do these scores provide?
2. What factors discourage an easy transfer of Sealed Air‘s sales model to
Taiwan?
3. Is Sealed Air too ethnocentric?
4. Was Paul Huang the right choice for the sales manager position?
Session 18, April 6
Global Marketing—Standardize, Adapt of Globalize?
Reading:
1. Yip, Chapter 4 and 6
2. D. Holt, J. Quelch, and E. Taylor, How Global Brands Compete
Discussion Questions:
1. Of marketing‘s four P‘s—product, price, promotion and place
(distribution)—which lend themselves most easily to total or quasi-
standardization?
2. Of the four P‘s, which are the most important for global headquarters to
dictate? Which should fall more under the control of national
subsidiaries?
3. What makes a global brand valuable? Can a global brand be a liability?
4. Do you personally care about the home country of a brand or where a
product is made? Why or why not?
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Session 19, April 8
Global Products (continued)
Case: The Global Branding of Stella Artois*
Discussion Questions
1. Does it make sense for Interbrew to develop a global brand? What are the
pros and cons of global branding?
2. Does Stella appear to be the right choice as the company‘s flagship
brand?
3. Interbrew‘s strategy has focused on developing cities as markets rather
than on the more traditional view of countries as markets—what are the
pros and cons of this approach?
4. What would Interbrew have to do to succeed with Stella in Austin? In the
urban area where you last worked?
Session 20, April 13
Target Markets and Positioning
Case: Promoting Healthcare Tourism in India*
Discussion questions:
1. Conduct a place audit on India to identify its SWOT
(strengths/weaknesses/opportunities/threats) as a healthcare destination
as compared to Thailand.
2. Who should be India‘s targets in the healthcare tourism industry?
3. Relative to its competitors, how should India position itself as a healthcare
tourist center?
4. What improvements need to be made to enable and support the growth of
healthcare tourism in India?
5. Should Indian healthcare companies consider opening facilities in other
countries? If so, which ones? Mexico, Dubai? What could potential host
countries do to attract this investment?
6. Do you have ethical concerns about this business model?
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Session 21, April 15
Questionable Promotion
Readings:
1. Bribery in Business: A Legal Perspective*
2. Note on Rules*
Case: Bribery and Extortion in International Business*
Discussion questions:
1. What would you do in each scenario? Why?
Session 22, April 20
The Dark Side of Global Marketing: Corruption, Smuggling, and Counterfeiting
Reading:
1. Gillespie, K., Smuggling and the Global Firm
Discussion questions:
1. Choose an emerging market you are interested in and go to
www.transparency.org. How does that country rank compared to others?
What information can you find on this site that might explain the ranking?
2. Would you suggest your company enter a country ranked as very corrupt?
Why or why not?
3. What advantages might companies see in letting their products fall into
the hands of smugglers? What disadvantages might exist?
Session 23, April 22
Global Organization
Reading:
1. Yip, Chapter 8
Case: Bausch and Lomb: Regional Organization*
Discussion Questions:
1. Why did Bausch and Lomb change its organization structure from
worldwide product divisions to the international division in 1984?
2. Why is Mr.Gill considering a change to a regional organizational
structure?
3. What organizational structure should Bausch and Lomb adopt?
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Session 24, April 27
Organizing for Global Strategy and Marketing
Reading:
1. T. Begley and D. Boy, The Need for a Corporate Global Mindset
2. K. Gillespie. Rule Breakers in the US Multinational: The HP Israel Gray
Market Scandal*
Discussion Question:
1. Where do your personal sympathies lie—with HP headquarters of HP
Israel?
2. What qualities should the ideal global marketing manager possess? Which
do you possess? Which do you need to strengthen?
Session 25, April 29
Implementing Global Strategy and Marketing within the Transnational Firm
Case: Silvio Napoli in Schindler India*
Discussion Questions:
1. Was Silvio the right choice for general manager of Schindler‘s India
operations?
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?
5. Should he change the strategy for Schindler India that he developed when
he was in the company‘s headquarters?
Final exam questions will be distributed in class today.
Sessions 26-27, May 4/6
Take-home exam in progress
Class does not meet, but exams are due by noon Monday, May 11 at CBA
7.202 (Marketing Department Office).
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