Competing in Emerging Markets
IS/WB 4899C

 

Instructors:	Profs. C. Roe Goddard	and	John Zerio
Office:	IS Department Office		WB26
Office hours:	By appointment		W 11:00 - 4:00 p.m.

Course Objectives and Format:

Emerging markets are vast, only partially developed fields of opportunities for companies as well as individuals. Growing at rates almost double the rate of developed countries they will attract an enormous amount of investment in future decades. Emerging countries fundamentally differ socially, politically, and economically from the developed markets, and among themselves. The focus of this course will be on developing a multidisciplinary understanding of the operation of these societies and their economic systems. Although the basic elements of management theory need not be modified, the practice of these principles often requires adaptation and a great deal of insight on the part of managers.

Participants will acquire an understanding of the elements that shape the operation of those societies, the economic environment, and the metier of business decision making in those particular circumstances. Effective management action is premised on sound understanding of a problem, rational analysis and interpretation, decision making, and appropriate implementation and follow up. In this course, while studying each aspect in detail, we will emphasize the element of "analysis and interpretation."

In general, the program will start with the development of a solid, integrative framework for understanding the role played by emerging countries in the global economic system. It will then focus on understanding the operation of business organizations and their fundamental role in society, both from a political and anthropological perspective. Global integration is changing the concept of the nation state and, in particular, how the state interfaces with local and foreign corporations. In consequence, influencing the way by which organizations organize resources and competencies to compete in the marketplace. The creation and management of competitive capabilities constitutes the last element of the basic framework.

The remaining two-thirds will be dedicated to the study of management cases focusing on particular emerging markets. It will consist of instructor-led discussions followed by presentations by senior executives of companies with major operations in emerging countries.

Required Reading Material:

Material on Reserve at IBIC (denoted with an asterisk (*) in course schedule) Package of cases available from bookstore

Method:

The majority of meetings will follow a seminar format. Learning through discussion is the central method. Consequently, attendance and participation in class discussions will be critical to the success of the course and will determine your class participation grade.

Assessment:

Exam:

The exam will assess your comprehension of the conceptual material and your ability to apply this knowledge when addressing a complex management problem. You will be given a take-home case exam on October 14th. You are expected to evaluate the case using the case content and conceptual material from the course. Your written analysis (no more than four single-spaced pages) is due on October 28th.

Project:

A detailed description of this assignment will be distributed on September 16

Instructors' Bio-Sketch:

Prof. Roe Goddard
C. Roe Goddard is Chairman of the Department of International Studies and Associate Professor at Thunderbird - The American Graduate School of International Management. His major areas of teaching and research are international political economy and foreign direct investment management in China.
Dr. Goddard received his M.B.A. in International Business from the University of Denver and his Ph.D. in International Political Economy from the University of South Carolina. He is the author of U.S. Foreign Economic Policy and the Latin American Debt Issue and co-editor of International Political Economy State-Market Relations in the Changing Global Order. Dr. Goddard has also written numerous articles and is Managing Editor of International Studies Notes, one of the premier journals of the International Studies Association. He is currently working on a new book Understanding the China Market.
After receiving his M.B.A., he worked as a pharmaceutical marketing representative with The Upjohn Company in Miami, Florida. While there he was responsible for a sales territory in south Florida as well as a number of accounts in Latin America and the Caribbean. Dr. Goddard was also a consultant with Arthur Andersen in their Shanghai, China, office. He assisted firms entering the China market and in managing their relationship with the Chinese government. He is a Vietnam-era veteran.
Dr. Goddard has extensive experience in the area of executive education and has consulted with both domestic and foreign multinational corporations. His clients include Honeywell, IBM, Wiltel Communications, AG Communications, General Electric, General Motors, and Sunkyong, among others. He is a regular instructor in Thunderbird's Executive Masters of International Management program.

Prof. John Zerio
John M. Zerio is an Associate Professor of International Marketing in the World Business Department of Thunderbird - American Graduate School of International Management. His major areas of teaching and research are international business-to-business marketing. export strategy, Latin American development and the corporate consulting program.
Dr. Zerio has consulted extensively with domestic and foreign multinational corporations in Brazil, Japan and Mexico, and taught at universities in Mexico and Brazil. He has extensive experience in the area of executive education having taught and directed in-house programs for Vitro S.A. (Mexico), and Scott Paper. He is also the academic director of Thunderbird's Global Marketing program.
He came to Thunderbird from Syracuse University where he received his Ph.D. in Export Marketing in 1986. He has a M.A. from the School of Advanced International Studies, at the Johns Hopkins University and an M.B.A. from Fundacao Getulio Vargas-Brazil. After his M.B.A. he worked for Ford/Philco do Brazil where he had extensive experience in the development of foreign markets for consumer and industrial products. His major market areas were Latin America and Africa
Dr. Zerio was a director of the Victor Trading Company in Washington D.C., and has been a Distinguished Professor of Marketing at the Monterrey Institute of Technology, Mexico.

Schedule of Activities

Course Management
Discussion of Projects and Potential Themes
Emerging Markets: Introduction

The Environment of business Essential characteristics of the social, economic and political environment. Perspectives on state and national policies The global order and the role of emerging markets

Readings: *"War of the Worlds--A Survey of the Global Economy," The Economist, October 1, 1994, pp. 1-38.

New Theories of International Trade

The Organization in Emerging Economies
The Role of the Business Organization in Emerging Economies

Readings:
Session 1: *"What is a firm?''

*"The Cultural Relativity of Organizational Practices and Theories," Geert Hofstede, Comparing Nations and Cultures--Readings in a Cross Disciplinary Perspective. Read Chapter 27, pp. 387401.

Session 2: *"Political Order and Political Decay," in Samuel P. Huntington, Political Order in Changing Societies. Read Chapter 1, pp. 1-92

The Foreign MNC in Emerging Economies
The Contribution of MNC's
The Economic Integration of MNC's in the Local System

Labor and Labor Management Issues in Emerging Economies Strategic Human Resources Development

Readings: *Arturo S. Bronstein, "Societal Change and Industrial Relations in Latin America: Trends and Prospects,"

International Labour Review Vol. 134, 1995,No.2.,pp. 163-186.

Case: Turrialba Mining Co. (A)

The Role of Government in the Industrial Policy Debate
Protecting Intellectual Assets

Readings:
Session 1: *James Fallows, "How the World Works," Atlantic Monthly, December 1993.

*Fareed Zakaria, "Culture is Destiny--A Conversation with Lee Kuan Yew," Foreign Affairs March/April 1994, pp. 109-126.

*Kim Dae Jung, "Is Culture Destiny?--The Myth of Asia's Anti Democratic Values," Foreign Affairs November/December 1994, pp. 189-194.

Session 2: *"Technology Transfer and Intellectual Property Issues," The Life and Death of a Joint Venture. Read Chapter 11,

pp. 155-183.

*"Strategies for IP Protection," Intellectual Property Protection in China. Read Chapter 1, pp. 17-32.

Case: Pfizer: Global Protection of Intellectual Property

Operational Issues in China

Readings: *"The Rise of China's Economy," in William H. Overholt, China-The Next Economic Superpower.

Case: China(A): The Great Awakening

Operational Issues in China (continued)

Readings: *Stephen R. Frewen, "Cracking the System--The Ins and Outs of China's Distribution Networks have been Slow

to Improve," The China Business Review, September-October 1995.

*Rick Yan, "To Reach China's Consumers, Adapt to Guo Qing," Harvard Business Review, September - October 1994.

Cases: Nike in China

Operational Issues in Russia and Eastern Europe

Session 1
Cases: Gdansk Shipyard

Szczecin Shipyard

Session 2
Guest Discussant: Prof. Earl Gibbons. Thunderbird

Operational Issues in Latin America
The Process of Economic Transformation in Latin America
Business Life in a "Crisis" Atmosphere

Readings:Mexico-The Crisis Returns

Brazil - Managing Structural Change in the 90's

Cases: Mexico-Escaping the Debt Crisis

Ethicon (J&J)

Guest Discussant: Juan Pablo Lemaitre

Director of Marketing - LA
Ethicon Endo-Surgery

Operational Issues in Latin America
Business Management in a "Crisis" Atmosphere (continued)
Managing Risks and Fears
Management and Leadership in Unstable Environments (Presentation)

Case: Goodyear-Oxo (A) and (B)

Guest Discussant: Hugh Pace

General Manager - Goodyear Oxo

 

Operational Issues in India
Understanding the "Corridors" of Bureaucracy
Managing business, people, government and opportunities

Readings: India in the 1990's
Case: House of Tata (HBS)

Guest Discussant: Prof. Krishna Kumar

former General Manager - Caltech India

Operational Issues in Asia

Manufacturing Speaker:

Dr. Sunny Cheng, Motorola

Human Resources and Marketing
Speaker: Executive Panel from Sunkyong

The Future of the Emerging Markets

Reading:
Session 1: Hamish McRae, The World in 2020--Power, Culture and Prosperity (Available for purchase at the Bookstore)

Session 2: Project Presentations

Project Presentations