Master Program 080200.68 ”Strategic management and Corporate Governance”
Economics of Strategy
The Government of the Russian Federation
The FederalState Autonomous Institution of Higher Education
""NationalResearchUniversity - Higher School of Economics"
Faculty of World Economy and International Affairs
Course Title
«Strategic Management of International Companies»
MasterProgram 080200.68 ”International Business”
Author:Nina M. Lyubakova, Associate Professor,
Approved by the meeting
of the General andStrategic Management Department «___»______20
Head of the Department
ChairFilinovN.B. ______
Moscow, 2013
This document may not be reproduced or redistributed by other Departments of the University without permission of the Authors.
1Course Summary
Companies face a number of strategic contradictions concerning doing business. Conditions, in which modern organizations act, are characterized by increasing complexity, dynamic and uncertain environment. Moreover as firms move out of their domestic market, they deal with differing business areas. The main question in this case is do firms need to adapt to the international diversity encountered, or can they find ways of overcoming the constrains imposed by distinct national systems, structures and behaviors.
This course examines theoretical and practical aspects of strategic management within international companies and organizations. Important place in the course devoted to the analysis of global business environment, companies’ global corporate and business strategies, business diversification and changing corporate portfolio. To consolidate knowledge acquired during the course, case-analysis and team analytical work will be provided.
2Area of ApplicationandRegulatory References
This Course Programestablishes minimum requirementsfor skills and knowledgeof the student anddetermines the content andthe forms of educationalactivitiesand reporting.
TheCourseProgramisdesignedforlectures, teachingassistantsandMasterProgramstudents080200.68 «Management» «International Business» within the Course “Strategic Management of International Companies”.
The Course Program has been developed in accordance with:
- National Curriculumin the direction ofpreparation080200"Management"(Qualification-MA),approved by the Ministryof Education and Science18.10.2009;
- Education Program 080200.68 «Management»;
- University Academic Plan of the Education Program “International Business” (approved in year 2011).
3Course Goals
Course Goals “Strategic Management of International Companies” are as follows: to give master students knowledge in the theory and practice of strategic management of international companies in conditions of highly dynamic and unpredictable business environment.
4Students' Competencies to be Developed by the Course
The student is supposed to:
Know
- The basic terms and concepts of strategic planning and management of international companies
- The basictools of analysis and methods in strategic management of organizations
- The main current trends and processes, happened in global environment
Be able to do
- Manage thedevelopment of international companiesand their development of competitive advantages
- Apply the most relevant tools of the strategic analysis and carry out the analysis to identify the main characteristics of business environment, companies competitive market positions andorganizational features
Analyse business date and case studies to develop recommendations for required strategic changes and their implementation due to specific conditions of the international business
Gain skills (experience)
- Skills of independentscientific and research work
Skills ofqualitative and quantitative analysisformanagement decision-making
Skills in team-works and presentations
5How the Course Fits in with the Curriculum
The main provisions of the Course shouldbe used for furtherstudies ofthe following Courses:
- InternationalStrategic Alliances, Mergersand Acquisitions
- International Business Consulting
- Business Internationalization Strategies and Procedures
6Course Schedule
№ / Topic / Total amount of hours / Classroom Activities / Self-StudyLectures / Seminars / Workshops
1 / The Strategic Management Process / 2 / 2 / - / 10
2 / Stakeholders, the Corporate Mission and Goals / 2 / 2 / - / 10
3 / External Environment: The Identification of Opportunities and Treats / 8 / 4 / 20
4 / Internal Analysis: Building Competitive Advantage / 6 / 4 / 15
5 / Corporate-Level Strategy / 6 / 4 / 15
6 / International Strategy / 4 / 4 / 20
7 / Business-Level Strategy / 4 / 2 / 15
8 / Strategic Implementation: Strategic Changes / 4 / 2 / 15
Total / 36 / 24 / 120
7.1 FormsandTypesofTesting
Type of testing / Form of testing / Deadlines / ParametersCurrent
(week) / Home Assignment / 27/03
(3 module) / Individual case write-up. (3-4 A4 pages)
Team Assignment / 15/05
(4 module) / Team case write-up and presentations
Final / Exam / 4 module / Written exam.
Duration 90 minutes
7.2 Grading Criteria
The evaluation criteria for home assignment and homework
1. Selection and justification of methods of execution, the correct choice of the model to analyze the situation
2. Depth analysis of the situation
3. Clarity, consistency and completeness of the materials and data
4. Conclusions and reasoning of decisions
5. The quality of design work, the inclusion of links to relevant sources, regulatory legislation.
Given the above basic criteria for evaluation of homework and home assignment the teacher evaluates it on a 10-point scale.
Grading TableECTS Grades / 10-points scale / Criteria
A+ / Excellent / 10 / This grades can be given only when consistent with work all the requirements and the highest rating for all criteria.
A / Very good / 9 / These grades can be given only under the condition of all compliance requirements and high scores for all criteria.
A- / Very good / 8
B+ / Good / 7 / This grade can be given only under the condition of full compliance with four of five criteria and requirements one criterion can be done in part.
B- / Good / 6 / This grade can be given only with the full compliance of homework 4 of 5 criteria requirements.
C+ / Satisfactory / 5 / This grade can be given only with the full compliance of homework 3 of 5 criteria and requirements two criteria can be met in part.
C- / Satisfactory / 4 / This grade can be given only with the full compliance of analytical review 3 of 5 criteria requirements.
F / Fail / 3 / The work does not meet the requirements for most of the criteria
F / Fail / 2
F / Fail / 1
If the work was not put in time, it is not estimated.
8.The Course Content
Typeofactivity / Content / Hours / Section of the basic textbook / FurtherreadingSection 1 . The Strategic Management Process
Lectures / The role of the strategy in organizations. Strategic role of managers at different levels in an organization. Main steps in a strategic planning process. Main pitfalls of the strategic planning / 2 / Introduction,
Ch.1 / Minzberg (1985),
Andrews (1971)
Case: Visiting 3M
Seminars / 2
Quiz / Preparation forlectures / 4
Homeself-study / 4
Case-Study / 2
Section 2. Stakeholders, the Corporate Mission and Goals
Lectures / The components of a corporate mission statement. Importance of stakeholders claims. Hierarchy of corporate goals. The concept of social responsibility / 2 / Ch.2 / Macmillan & Jones (1986),
Collins & Porras(1994).
Case: HSE
Seminars / 2
Quiz / Preparationforlectures / 4
Homeself-study / 4
Case-Study / 2
Section 3. External Environment: The Identification of Opportunities and Treats
Lectures / General environment and the industry environment. Four activities of the external environmental analysis process. The general environment’s seven segments. Main global trends, influencing strategies of multinational companies. Competitiveness of countries. / 8 / Ch. 3 / Ghemawat (2001),
Porter (1998)
Video: The Looming Challenges to US Competitiveness (Porter).
Case-Study: 1. Boeing & Airbus, 2. Finnish Construction Companies
Seminars / 4
Quiz / Preparation forlectures / 12
Homeself-study / 4
Case-Study / 4
Section 4. Internal Analysis: Building Competitive Advantage
Lectures / Source of competitive advantage. Capabilities and discuss how they are developed. Value chain analysis. The importance of preventing core competencies from becoming core rigidities / 6 / Ch.4 / Grant (1991),
Hamel & Prahalad (1994)
Collis & Montgomery (2008)
Seminars / 4
Quiz / Preparation forlectures / 10
Homeself-study / 3
Case-Study / 2
Section. 5. Corporate-Level Strategy
Lectures / Main corporate strategies and their special characteristics. Arguments for and against concentrating in just one industry.
Conditions under which a company is likely to pursue vertical integration as a means to strengthen its position in its core industry. The main alternatives to vertical integration.
Different levels and types of diversification. value creation through related and unrelated diversification strategy. / 6 /
- Ch. 7
Case: Zara.
Seminars / 4
Quiz / Preparation forlectures / 8
Homeself-study / 4
Case-Study / 3
Section 6. International Strategy
Lectures / Main motives for firm to go abroad. Different strategies that companies can pursue in the global arena. Basic entry decisions a company faces then going international. Main modes for entering foreign markets. Global strategic alliances. / 4 / Ch. 6 / Dunning & Lundan (2008)
Yip (2003)
PrahaladDoz (1987)
Bartlett &Ghoshal (1995)
Case-Study: Levendary Café: The China Challenge.
Seminars / 4
Quiz / Preparation forlectures / 12
Homeself-study / 8
Case-Study / 8
Section 7. Business-Level Strategy
Lectures / The nature ofcompetitive positioningin reference to the threemain factors that underliethe choice of a successfulbusiness-level strategy.
Differences betweenthe principal kinds ofgeneric business-levelstrategies and appreciatetheir advantages anddisadvantages.
Appreciate thecompetitive positioningissues involved infragmented and growing,mature, and decliningindustry environments. / 4 / Ch. 5 / Porter (1985)
Porter (1996)
Case: Nike’s Business-Level Strategies
Seminars / 2
Quiz / Preparation forlectures / 8
Homeself-study / 4
Case-Study / 3
Section 8. Strategic Implementation: Strategic Changes
Quiz / Organizational strategy implementation throughorganization structure. Buildingblocks of organizationstructure.
Analyzing a Company as a Portfolio of Core Competences.
Distinguish betweenvertical and horizontaldifferentiation. The nature and functions of strategiccontrol systems / 4 / Ch.8-9 / Hamel & Prahalad (1994)
Case: Oracle’s Growing Portfolio of Businesses
Seminars / 2
Quiz / Preparation forlectures / 6
Homeself-study / 6
Case-Study / 3
Homeself-study / 4
7Educational Technologies
•interactive lectures;
•analysisof practical problemsandcase studies;
•discussiononthe lecturematerialsresearch(articles andother scientificpublications);
• computerbusiness game(computersimulation).
8Methods and Materials for Current Testing and Attestation
8.1Current Testing Assignments
Home assignment
Home assignment done by Masters in the form of individual case write-up.
8.2Basic requirements:
•Homework must be made using the actual material and tools, discussed in the lectures.
•Baseline data should be presented in a structured form (tables, charts).
•10 pages A4
•The topic must be approved by the lecturer
•The material for the case study should include data about a particular company, or information about the company (industry), published in the media in Internet resources.
8.3Topic of the Home Assignment
Topic 1.Assess the attractiveness of an industry in terms of characteristics of entry barriers (economies of scale, the required investment, customer loyalty to suppliers, etc.)
Topic 2.Analyze the international environment. Determine what factors of the environment are crucial for your organization. What factors determines the company’s strategy?
Topic 3.Conduct an analysis of a vertically integrated company. Determine the type of strategy (vertical integration forward or back, full or taper), what environmental factors have influenced the choice of this strategy, the benefits and the risks of its usage.
Topic 4.Conduct an analysis of a diversified company (identify SBUs and the type of diversification, what creates value). Determine what environmental factors influenced the choice of this strategy, the benefits and the risks of its usage.
Topic 5.Analyze the competitive strategies of a company. Identify the type of strategies (Porter), determine what environmental factors influenced the choice of this strategy, the benefits and risks of using each strategy.
Topic 6.Identify the type of an international strategy. How does this company create value by expanding into foreign markets?
8.4Examples ofassignments for the intermediate/final testing
The exam is conductedin writingand consists oftasksthat requireknowledge and skillsfor all sections ofthe course.
9Grading Procedures
The grade of "EconomyStrategies" is formedof the following:
- Workatlectures and seminars;
- Homeself-study;
-Current control;
- Finalexam
Evaluating the performanceof studentsonlectures and seminars teachertakes into account thestudents' activityin the discussions and correctsolution of practical problemsand case studies.Grades for work onlectures and seminars teacherputsin the worksheet.The resultingscoreon a 10-point scalefor their workon lecturesand seminarsis determinedbeforean intermediate orfinalcontrol- Оclassroom .Teacherevaluatesstudents' work bythe quality of homework,assignments forwhich are presentedin Section 10of this Program.
The resultingestimatefortotalcontrol in the form ofan examinationexhibitedby the following formula, where Оfinal - assessmentfor workingdirectlyon the exam:
Оfinal = 0,3·Оexam+ 0,25·Оhomeassignment + 0,25·Оteamassignment +0,2·Оclassroom
On theretakethe studentis notgiven an opportunity toget an extra point forcompensationforthe currentcontrol grade.
Final control grade is put in the diploma, whichis the resultant assessmentofacademic discipline.
10Teaching MethodsandInformation Provision
10.1Core Textbook
Charles W.L. Hill, Gareth R. Jones. Essentials of Strategic Management, 2th Ed., 2009, South-Western Cengage learning
10.2Required Reading
- Bartlett C. A., Ghoshal S. (1995) Transnational Management: Text, Cases and Readings in Cross Border Management. 2nd ed. Burr Ridge, Ill.: Irwin/McGraw-Hill
- Collis D. J. and Montgomery C. A. (2008) Competing on Resources. Harvard Business Review, July-August, pp. 140-150
- Dunning J.H., Lundan S.M. (2008) Multinational enterprises and the global economy. U.K.: Edward Elgar
- Grant R.(1991)Contemporary Strategy Analysis,Cambridge, U.K.: Blackwell Business
- Hamel G. and Prahalad, C.K. (1994). Competing for the Future. Boston, MA: Harvard Business School Press
- Hitt M.A., Ireland R. D., HoskissonR. E. (2011) Strategic Management: Competitiveness & Globalization, 9th Ed., South-Western Cengage learning
- Michael E. Porter (1985), Competitive Advantage: Creating and SustainingSuperior Performance (New York: Free Press
- Porter M. (1998) Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York.
- Porter M. E. (1996)What is strategy?Harvard Business Review, 74(6): 61–78.
- Prahalad C.K, Doz Y.L. (1987) The Multinational Mission: Balancing Local Demands and Global Vision. New York: Free Press
- Rumelt R. P., Schendel D. E., Teece D. J. (eds.) (1994), Fundamental Issues in Strategy, Boston: Harvard Business School Press.
- Yip G S, (2003), “Total Global Strategy”, Prentice Hall.
12.4. Electronic Resources:
Electroniclibraryof articles, with free access to information:
DataMonitor360
Spark
13. Technical Provision
Professionalaudioandvideo equipment,projector used for lectures andworkshops, personal computers - forpractical training.
14. Academic Integrity
14.1 Each student in this course is expected to abide by the Higher School of Economics’ Academic Honesty Policy. Any work submitted by a student in this course for academic credit will be the student's own work.
The team participate in homework «Analysis of theeffectiveness of the implementationstrategy of the company».Homeworkis prepared bya teamtogether.
14.2 You are encouraged to study together and to discuss information and concepts covered in lecture and the sections with other students. You can give "consulting" help to or receive "consulting" help from such students. However, this permissible cooperation should never involve one student having possession of a copy of all or part of work done by someone else, in the form of an e-mail, an e-mail attachment file, a diskette, or a hard copy. Should copying occur, both the student who copied work from another student and the student who gave material to be copied will both automatically receive a zero for the assignment. Penalty for violation of this Policy can also be extended to include failure of the course and University disciplinary action.
14.3 During examinations, you must do your own work. Talking or discussion is not permitted during the examinations, nor may you compare papers, copy from others, or collaborate in any way. Any collaborative behavior during the examinations will result in failure of the exam, and may lead to failure of the course and University disciplinary action.
15. Accommodations for Students with Disabilities
The Higher School of Economics is committed to ensuring equal academic opportunities and inclusion for students with disabilities based on the principles of independent living, accessible universal design, and diversity. I am available to discuss appropriate academic accommodations that may be required for student with disabilities. Requests for academic accommodations are to be made during the first three weeks of the semester, except for unusual circumstances. Students are encouraged to register with DisabilityServicesCenter to verify their eligibility for appropriate accommodations.