Course Outline
PART I: FOUNDATIONS OF INTERNATIONAL MANAGEMENT
1. Thursday, September 5 -- The Multinational Firm
"Big is back: A survey of multinationals," The Economist, (June 24, 1995).
John H. Dunning, Multinational Enterprises and the Global Economy (Wokingham, England: Addison-Wesley, 1993), pp. 54-95.
2. Friday, September 6 -- The Product Cycle and the Process of Internationalization
Howard Perlmutter, "The tortuous evolution of the multinational firm, “in Christopher Bartlett & Sumantra Ghoshal, Transnational Management (Homewood, IL: Irwin, 1992), pp. 92-101.
Raymond Vernon, "The product cycle hypothesis in a new international environment," Oxford Bulletin of Economics and Statistics 41(4) (November 1979), pp. 255-267.
Case: "Eli Lilly and company (A): Globalization," (HBS 9-391-032)
3. Tuesday, September 10 -- Globalization of Industries
Michael Porter, "Changing patterns of international competition," in David J. Teece, ed., The Competitive Challenge (Cambridge: Ballinger, 1987), pp. 27-57.
"The New music biz," Business Week (January 15, 1996), pp. 48-52.
Harlan Byrne, "Power plays," Barrons (January 29, 1996), pp. 17-18.
Theodore Levitt, "The globalization of markets," Harvard Business Review 61(3) (May-June 1983), pp. 92-102. (reprint 83308)
"McDonald's Conquers the World," Fortune (October 17, 1994), pp. 103-116.
4. Thursday, September 12 -- Country v. Firm-based Advantages
Michael Porter, "The competitive advantage of nations." Harvard Business Review 90(2) (March-April 1990), pp. 73-93, (reprint 90211).
Case: Building the Benetton system , (ECCH 390-042-1).
5. Friday, September 13 -- Organization of International Operations
Christopher A. Bartlett and Sumantra Ghoshal, "Managing across borders: new organizational responses," Sloan Management Review (Fall 1987), pp. 43-53. (Reprint 2914)
Ikujiro Nonaka, “Managing globalization as a self-renewing process: experiences of Japanese MNCs,” in Christopher A. Bartlett, Yves Doz and Gunnar Hedlund, Managing the Global Firm (New York: Routledge, 1990), pp. 69-94.
Case: "Phillips and Matsushita: A portrait of two evolving companies," (HBS 9-392-156)
II. THE GEOGRAPHY OF INTERNATIONAL BUSINESS
6. Tuesday, September 17 -- Configuring Production Across Countries
Bruce Kogut, "Designing global strategies: Comparative and competitive value-added chains," Sloan Management Review 26(4) (Summer 1985), pp. 15-28, (reprint 2642).
John H. Dunning, Multinational Enterprises and the Global Economy (Wokingham, England: Addison-Wesley, 1993), pp. 185-209.
Case: "BMW: U.S. manufacturing investments." ECCH 394-070-1.
7. Thursday, September 19 -- Market Focus: Financial Services
John H. Dunning, "The globalization of service activities." In The Globalization of Business (New York: Routledge, 1993), pp. 242-284, 437-443.
Ingo Walter, “Global competitive positioning in financial services,” from Global Competition in Financial Services (Cambridge, MA: Ballinger, 1988), pp. 43-70. (skim)
"Deutsche Bank pushing beyond Germany," Wall Street Journal, 3/1/95, p. A10.
Case: Deutsche Bank group (HBS 9-290-036, Rev. 4/30/91).
8. Friday, September 20 -- Regional Strategies
Shijiro Urata, "Changing patterns of direct investment and the implications for trade and development," from C. Fred Bergsten and Marcus Noland, eds., Pacific Dynamism and the International Economic System (Washington, DC: IIE, 1993), 273- 297.
Mitchell Bernard and John Ravenhill, "Beyond product cycles and flying geese: regionalization, hierarchy, and the industrialization of east Asia." World Politics 47(2) (January 1995), pp. 171-209
Louis Kraar, "Try the Singapore Connection," Fortune, March 4, 1996.
Dunning (review from session 6)
Case: "Otis Pacific Asia operations (B): Regionalization,” (HBS 9-393-010)
9 .Tuesday, September 24 -- Investing in Emerging Market Infrastructure
Louis T. Wells and Eric S. Gleason, "Is foreign infrastructure investment still risky," Harvard Business Review, Sept.-Oct., 1995 (reprint 95511).
World Bank, Infrastructure for Development, World Development Report 1994, excerpts.
Case: "Endesa's (Chile) Argentine investments," Escuela de Negocios de Valparaiso, Universidad Adolfo Ibañez, 1994.
10 .Thursday September 26 -- Entry/Participation Strategies: Economies in Transition/ China
John Child, "Establishing joint ventures" chapter 11 from Management in China during the Age of Reform (Cambridge University Press, 1994), pp. 215-240.
Case: Otis Elevator Co.: China Joint Venture (A), (HBS 9-391-062)
Guest Lecturer: Ed Steinfeld, MIT
11. Friday, September 27 -- Entry/Participation Strategies: Economies in Transition: Eastern Europe
Readings and case to be assigned
Guest Lecturer --Simon Johnson, MIT and Duke University
III. Managing Across Borders
12. Tuesday, October 1 -- Integrating Activities Across Boundaries-I
M. Therese Flaherty, "Coordinating international manufacturing and technology,' Ch 3. in Michael Porter, ed., Competition in Global Industries (HBS Press, 1986), pp. 83-109.
Case: International sourcing at Intercon (HBS 9-688-055, rev 2/12/91), Intercon Japan (HBS 9-688-056, rev. 2/11/91)
13 .Thursday, October 3 -- Integrating Activities Across Boundaries-II
Christopher Bartlett and Sumantra Ghoshal, "Tap your subsidiaries for global reach," Harvard Business Review, (July-August 1986, Reprint No. 86602).
Case: Intercon Singapore (HBS 9-690-012, rev. 2/11/91).
14. Friday, October 4 -- Growth through M&A: Integrating Acquired Positions/ Capabilities/ Activities
Charles W. F. Baden-Fuller and John M. Stopford, "Globalization frustrated: The case of white goods," Strategic Management Journal 12 (1991), pp. 493-507.
Case: "Electrolux: The acquisition and integration of Zanussi" (INSEAD-CEDEP, 1989).
15. Tuesday, October 8 -- Strategic Alliances
J. Peter Killing, "Understanding alliances," in Farok J. Contractor and Peter Lorange, eds., Cooperative Strategies in International Business (Lexington, Mass.: Lexington Books, 1988), pp. 55-67.
Case: "Collision course in commercial aircraft: Boeing-Airbus-McDonnell Douglas 1991," HBS 9-391-106 Rev. 7/23/91.
Guest lecturer: Henry Birdseye Weil, MIT
16. Thursday, October 10 -- Becoming World Class : Multinationals from the Third World I
Alice H. Amsden and Jong-Yeol Kang, "Learning to be Lean in an Emerging Economy: The Case of South Korea." MIT International Motor Vehicle Program (1995).
Donald Lessard and Alice Amsden, "The multinational firm as a learning organization," forthcoming, IEA Research Annual, 1996.
Nonaka (review from session 5)
Guest lecturer: Alice Amsden, MIT
17. Friday, October 11 -- Becoming World Class : Multinationals from the Third World II
Materials on Argentina, Siderca, and IMPSA to be distributed
Guest lecturer: Omar Toulan, MIT
18. Thursday, October 17 -- Managing in the Face of Volatile Exchange Rates
Bruce Kogut, "Designing Global Strategies: Profiting from Operational Flexibility." Sloan Management Review (Fall 1985), pp. 27-38 (reprint 2713).
Donald Lessard and Srilata Zaheer, "Breaking the silos: distributed knowledge and strategic responses to volatile exchange rates," Strategic Management Journal, July 1996.
19. Friday, October 18 -- The "Transnational" Firm
(re-read Christopher A. Bartlett and Sumantra Ghoshal from session 5)
William Taylor, "The logic of global business: An interview with ABB's Percy Barnevik," Harvard Business Review (March/April 1991), pp. 91-105, reprint 91201.
20. Tuesday, October 22 -- Alternative Models: Global Niche Players
William Taylor, "Message and muscle: An interview with Swatch titan Nicolas Hayek," Harvard Business Review (March-April 1993), pp. 98-110, (reprint 93205).
Hermann Simon, "You don't have to be German to be a "hidden champion," Business Strategy Review, (Vol. 7, No 2, 1996), pp. 1-13.
21. Thursday, October 24 -- Alternative Models: "Global/Local" Federations
"Acer's edge: PCs to go." Fortune (October 30, 1995), pp. 187-204.
"Mini-nationals are making maximum impact." Business Week (September 6, 1993), pp. 66-69.
Emily Thornton, "The Reckoning," other articles on Acer, Far Eastern Economic Review, July 25, 1996, pp. 74-80.
22 Friday, October 25 -- Final Exam.