Global Business Strategy and Policy, 2016 Syllabus

(2016. 5.31 version)

Time: Intensive classes from July 19 to 22

Instructor: Professor Motohashi, Kazuyuki (TMI Department, Engineering School)

E-mail：motohashi@tmi.t.u-tokyo.ac.jp

HP URL：http://www.mo.t.u-tokyo.ac.jp/

Objectives

This course covers some essentials on “global business”, such as global strategy, strategic alliance (JV with local companies) and marketing strategy. The course is organized by combining lectures on theory, case method teaching and guest speaker talks to foster students’ problem solving abilities in a real business world. In addition, a focus is put on emerging economies, particularly China and India. In order to facilitate effective interactive process in case based teaching, a number of enrolled students could be restricted to around 40 students. In this process, students in the TMI departments as well as those in TMI sub-major have some priority. Those who want to enroll in this class are supposed to send your e-mail with name, student number, department name with grade to Ms. Abe (secretary to prof. Motohashi, abe@tmi.t.u-tokyo.ac.jp) by July 17.

Lecture Items

ž Trend and importance of global business in emerging economics

ž Global strategy, IR Grid, AAA framework

ž Strategic alliance, joint venture with local firms

ž International marketing

ž Government as a partner in case of infrastructure business

Goal to be achieved

・ Understanding analytic framework of global business strategy

・ Understanding management of joint venture with local firms

・ Learning theory and practice of international marketing

・ Understanding a local business context, particularly in China and India

Text and References

ž Global Business Strategy: Multinational Corporations Venturing into Emerging Markets by Kazuyuki Motohashi, 2015 Springer Texts in Business and Economics This textbook contains case studies which are used in the class. Open access version of this textbook can be downloaded at the following site http://link.springer.com/book/10.1007%2F978-4-431-55468-4

ž Japanese textbook is also available to facilitate Japanese students’ involvements in this class. 『グローバル経営戦略』（元橋一之、東京大学出版会）

ž In addition, power point files used in lecture will be uploaded at prof. Motohashi’s home page. (http://www.mo.t.u-tokyo.ac.jp/, Go Education-> Global Business)

Grading:

Made by weighted average of the following items

・ Class Participation：30%

・ Case Write Up: 40％（20％ each）

・ Group work + presentation：30％

What is case write up ?

・ A student is required a writing up (2 pages with reasonable font size), corresponding to the questions for each case material. Please see the attachment for the questions.

・ You have to pick up two cases for your favorite out of 4 cases delivered in the class and your write-ups should be hand in TMI administration office (Engineering Building No. 3, 2^nd floor) before July 31.

Group work assignment

・ Suppose you are assigned as a member of international division of multinational corporation, and asked by your boss about studying the potentiality of new business in India. Please build up your new business plan.

・ Grading of this project is made by ppt file and oral presentation at the last class. (No report is required).

・ Detail instructions will be given in the course.

Schedule

Globalization concept and business strategy

July 19 8:30-10:15:　Global business strategy for emerging economies (Lecture)

（Chap1-Chap3, 日本語テキスト：第１章、第2章）

・ Organization, process of this course

・ What is business strategy? Global strategy?

・ China: Factory or Market?

ž Great distance, threats or opportunities? (CAGE and AAA)

July 19 10:25-12:10 Guest Speaker (for China Economy) via Skype (HK time, 9:25-11:10)

Prof. Li Kui-Wai

Professor of Economics, Hong Kong City University

July 19 13:00-14:45: Business and political environment in China and India (Exercise)

（Chap 4, 日本語テキスト：第3章）

Based on the background document provided at the class, discussion about the following questions will be proceeded.

・ India: factory or market? Please provide at least one example in each Quadrant of factory or market matrix.

・ Pick up one industry of your favorite. Discuss attractiveness in India over China by CAGE framework.

July 19 14:55-16:40: Guest Speaker (for India Economy) via Skype (Indian time, 11:25-13:10)

Prof. Chirantan Chatterjee

Assistant Professor, IIM Bangalore

July 19 16:50-18:35 : Technology Management Strategy (Lecture)

（Chap5, 日本語テキスト：第4章）

ž What is “service model”, and why?

ž Product architecture and technology catching up

ž Complex system and difficult to imitate business model

ž Introduction to the case “Neemrana Industrial Park”

July 20 8:30-10:15 Business Development in India (Case 1)

（Chap 6, 日本語テキスト：第5章）

TMI case material: Neemrana Industrial Park

Organization of Global Business Operation

July 20 10:25-12:10： Government as a partner (alliance management in global business) (Lectore)

（Chap 7, 日本語テキスト：第6章）

・ Globalization by green field entry (wholly owned) or JV

・ Risk analysis of global business

・ Introduction to infrastructure business (export)

・ Understanding PPP and importance of business modeling

July 20 13:00-14:45 Costs and benefits of joint venture (Case 2)

（Chap 8, 日本語テキスト：第7章）

TMI case material: Hitachi Construction Machinery in China

Global Innovation and Marketing

July 20 14:55-16:50 Global R&D Management (Lecture)

（Chap 11, 日本語テキスト：第10章）

ž Conceptual framework to understand international R&D

ž R&D of Japanese firms in China

ž New concept for innovation for emerging markets, such as reverse innovation

ž Introduction to Suzuki, India case

July 20 16:45-18:35 Guest Speaker for Nissan’s India R&D

Mr. Hiroki Sasaki

General Manager, Nissan Product Department, Department No. 1, Nissan Motor Co., Ltd. (former senior VP of Renaut Nissan Technology and Innovation Center India)

July 21 8:30-10:15 International Marketing (Lecture)

（Chap 9,　日本語テキスト：第8章）

ž Introduction to marketing strategy

ž Marketing 4P

ž Not so good market (volume zone)

ž Fortune at the bottom of the pyramid

ž Introduction to the case of Shiseido, China

July 21 10:25-12:10：International Marketing (Case 3)

（Chap 10, 日本語テキスト：第9章）

・ TMI case material: Shiseido’s Marketing in China

July 21 13:00-14:55 Japanese company’s success story in India (Case 4)

（Chap 14, 日本語テキスト：第12章）

TMI case material: Suzuki Motors in India

Group work and presentation

July 22 16:40 Group work presentation starts (- around 19:00)

Appendix: Case Material Questions

Case 1: Neemrana Industrial Park

1. Neemrana Industrial Park has been developed by cooperation of Japanese and Indian governments. What are reasons why both side of governments helped to develop this industrial park?

2. What are risks associated with investment in production sites in India? What are benefits located in Neemrana Industrial Park, in terms of lowering these risks?

3. Hitachi plans to extend “Neemrana Shared Energy Center (N-SEC)” model to other region of India? Do you think whether Hitachi will succeed?

4. Do you have any recommendation in new business in India? What kind of business will be successful? You can extend a scope of your industry, not only in manufacturing, but also to trading companies, banks and logistics business.

　

Case 2: Hitachi Construction Machinery China

1. List merits and demerits of joint venture over wholly owned subsidy in globalization.

2. At the dissolution of joint venture, Mr. Zhong (mayor of Hefei city) said “Now you are unfettered to become able to develop without restraint, it’s from now on that you are put to the test”. What did he mean “test”?

3. In a stiff competition with other foreign and local companies, what kind of strategy should Hitachi take?

4. In terms of global operation of Hitachi Construction Machinery, should they focus on Chinese operation? Or, should they diversify their operation, such as new investment in India?

Case 3: Shiseido China

1. Is China is important for Shiseido? Evaluate based on Shiseido’s domestic and global operation statistics

2. List merits and demerits of operating in China, as compared to operations in US and Europe

3. Characterize Shiseido’s marketing strategy in China. Take Urara as an example, and discuss its targeted customer and marketing 4P. Do they have a consistent story?

4. Compare Shiseido’s marketing in China with those of US and European mega players such as l’Oreal and P&G. It is better to keep such strategy, when Shiseido competes with them in Chinese market?

Case 4: Murti Suzuki India

1. Why do you think Suzuki has succeeded in India?

2. Analyze India’s automobile market by Porter’s five force framework, and discuss Suzuki’s strategy to keep its top position.

3. Suzuki has a plan to have R&D center in India. Why? Is it necessary?

4. Do you have any suggestions to Mr. Osamu Suzuki, president and CEO of Suzuki, on India business?