MSA 515, Spring, 2009 (revised 2/11/07)

Galbraith, page 1

MSA 515: INTERNATIONAL

MANAGEMENT AND STRATEGY
CAMERON SCHOOL OF BUSINESS
Spring, 2009

Instructor: Dr. Craig Galbraith Office Hours: M/W: 8:30am-11am, T:

Office: CH 200D 9am-2pm; or by appointment. I am here
Office Phone: 962-3775 almost every day.
E-mail: [email protected]

Required Text: a) There is no required text for this class; and b) internet readings and cases -- the
instructor will place readings which can be accessed through his web page, under the link to MSA 515.

In addition, we will discuss and apply current business and economic news into class discussions. It is
suggested that you access various “blog” sites (see instructor web page for some links), business
periodicals and become familiar with current events for purposes of class preparation, case analysis, and
your career search.

Course Description: Graduate level course in international management strategy which integrates the
various business functions. Case analysis, discussion and presentations are utilized to integrate the
business functions into a comprehensive, holistic approach for international strategic decision making,
planning for international competitive advantage, communicating decisions and international
negotiations, and planning for the effective implementation of transnational strategies.

Course Philosophy and Objectives: The central theme for this course in international strategy and
international management is that a company’s chances for sustained success within the global market are
greatly improved when managers (1) have an astute, timely strategic “game plan” for running a global
enterprise, and (2) implement and execute the plan with great proficiency.

This course will provide students the opportunity both individually and in teams to apply business and
management concepts to real problems and policy issues for a variety of international and global
situations. Students will be required to analyze, discuss, and make decisions based on available facts and
information consistent with sound business concepts. The available information may, at times, be
incomplete. This is in agreement with the uncertainty of real business operations. The course therefore
has three specific learning objectives:

1) Introduction to the theories, concepts, and models used in modern international

strategic management.
2) Introduction to strategic decision making under uncertainty and incomplete
information, as in real world strategic decision.
3) Integration of functional areas of managing business within an international setting.

Topics and Concepts: As a survey course, we will concentrate on a broad selection of critical topics.
Topics covered in this course will include:

(1) Review of industry structure and the evolution of industries. The generic strategies of firms.
International differences in industry structure.
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(2) Structural characteristics of global markets, and the nature of globalization.
(3) Differences in economic and competitive characteristics between developed, developing, and
less developed nations. This is particularly important considering that only 1/6 of the world’s
population lives in developed regions, like North America and Western Europe.
(4) International diversification theory, joint ventures, and other strategic alliances.
(5) International strategies, including exporting, licensing, and direct foreign investment.
(6) Global risk management and raising international funds.
(7) Intellectual property protection, similarities and differences in the global market.
(8) Implementation of strategic decisions in organizations, including cultural and international
differences in management.
(9) Negotiations strategy as a strategic tool; the politics and culture fit of strategy implementation
within an international setting.
(10) Various topics of current international interest including quality management, global
development, NAFTA and the European community, service industry growth, social
responsibility and ethics, and multicultural diversity

This course strives to encourage creative and critical thinking, the use of intuitive problem solving,
adherence to corporate fiscal and social responsibilities, and the application of team management skills. It
requires research, project and team management, and oral and written communication skills. In spite of
the size of the class, we will try to maintain more of a “seminar” atmosphere.

This course will not be a “rote” memory course, but will focus on the advanced foundations for strategic
decision making in competitive global situations. As such, and by design, you will be expected to work
and excel in the world of competitive uncertainty and strategic fuzziness. Your course work,
assignments, readings, lectures, and tests are all designed to enhance strategic decision making.

Class Preparation and Participation: Each student is expected to come prepared for class, and to
contribute to the overall learning environment by actively participating in class discussions. Several video
lectures and articles will be assigned. In addition, cases representing actual managerial problems will be
assigned during the semester; cases need to be read and analyzed ahead of time and will be discussed in class
to illustrate a particular strategic paradigm or method. As with any graduate seminar type course, a
successful learning experience must include active participation by class members.

Class Attendance: In courses such as this, the nuances of the topic are only discovered during the class
period lectures and discussions. Because of this class attendance is required, and each absence must be
made up by showing the instructor an “original” set of notes. Because this class only meets twice per
week for a “shortened” semester, only one “made-up” absence will be allowed. Every missed session
beyond this (or non made-up absence) will result in an overall reduction of your final grade by one-third.
If a student knows of a commitment that will force them to miss beyond the “1-absence” policy, please
see the instructor early so that a make-up plan can be developed.

Class Policies: In courses such as this one, the nuances of the topic are only discovered with complete
preparation and attentiveness during class discussions and presentations. For this reason, several policies
have been developed to facilitate the learning process.

1. Late assignments are not accepted. Specifically, team case analyses will never be accepted after the
time which they are due.

2. Attendance is required and is critical to performance in this class. Lectures and materials presented in
this class are critical. Class participation in quality discussion of readings and cases is also expected
and taken into account when grades are calculated. Only one absence will be allowed (see above).
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Each absence after this will result in a reduction of your final grade by 1/3. If a student knows of
a commitment that will force them to miss beyond the “1-absence” policy, please see the instructor
early so that a make-up plan can be developed.

3. Students will be placed in small teams for the analysis of 1) a case analysis, and b) seminar/research
presentation. In any task requiring more than one person to complete, problems in equity of workload
often occur. When this happens in industry, those who refuse to do their fair share are often given the
option to resign or be fired. Group projects for this class require all to complete their share of the
work in order to meet the course learning objectives. If any individual(s) is (are) not completing a
fair share of the assigned projects, the team should discuss it with the professor immediately. If you
wait until the end of the term, it is too late to take corrective action. A team member may be fired
from a group if all other members agree – a fired student will receive an F in the course.

4. Peer evaluations will be completed by members of your team (10% of final grade).

5. Standards of grammar, spelling, and punctuation are expected on all written assignments. Written
communication is an essential part of the business world. The content of your message can be
obscured by how you say it.

6. Footnotes, or other appropriate means of citation of other’s work, are required when you refer to
materials used in writing your case analyses. This specifically includes material, which you
paraphrase, or access via the Internet.

7. Makeup exams, where applicable, are only administered under extreme circumstances. If conditions
require you to miss an exam, you must contact the instructor prior to test time.

8. Classroom Climate: The Cameron School of Business is a professional school providing education
and training for student careers in the business world. Classroom climate is designed to assist
students in developing the habits of behavior that will contribute to their success in the business
world. Therefore, classroom policies will be established to promote and maintain a business-like
atmosphere and to promote a healthy learning environment. Expectations include, for example:
• Good manners, including courtesy extended to all
• Removal of hats while in the classroom
• Wearing of shoes while in the classroom
Specific expectations of appropriate behavior and dress will be discussed during the first class period.
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Basis for Grading

Case Analysis (group) 30%

Research Presentation (group) 30%
Final Exam (individual) 30%
Discussion and Peer Evaluation 10%
100%

The student will be graded over several areas including:

A) Final Examination (30% of final grade)

A final exam will be given on the last day of classes. This exam will consist of 2 to 3 questions.
Approximately 2 week prior to the exam I will hand out a list of 8 to 10 specific topic areas of
study. The actual exam will be 2 to 3 questions randomly selected from this list of topics. The
final exam is closed book with the exception of 1 page of notes.

B) Case Analysis (30% of final grade)

We will analyze a comprehensive case in class. Prior to the discussion of this case, groups will
analyze and turn in a written report. The report will be a maximum of 12 pages (not including
charts, graphs, etc.). This will be a small group case (4 to 5 people per group). The written
component of the case exam must be typed, 12 point font, one and one-half spaces, standard
margins, with a cover page showing your names, name of case and date. The orientation of the
written case paper is three fold: a) identifying important issues raised in the case, b)
recommending plans of action for the company to deal with these issues, and c) support for your
recommendations, support meaning analysis and applications of concepts and models discussed
in this class. Written report =30%

C) Presentation of Seminar/Research Paper (30% of final grade)

Each group will be assigned an important global topic for research and presentation. The topics
are at the end of this syllabus. The groups are to do independent, outside research to address the
topic, prepare a PowerPoint presentation for the class, present the analysis (about 20 to 30
minutesminutes), then lead/contribute to the class discussion of the topics. Presentation = 30%

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Instructor Biographical Sketch
Craig S. Galbraith, MBA, MSc, Ph.D.
GlaxoSmithKline Faculty Fellow, Professor Entrepreneurship and Technology Management, UNCW

Education and Academic Experience. Dr. Galbraith holds a B.A. degree in economic philosophy, and an M.B.A in
manufacturing management, from San Diego State University. He has also earned a M.Sc. in molecular biology
from the University of Nebraska. Dr. Galbraith’s Ph.D. in strategic management and mathematical economics is
from Purdue University, where he won the top doctoral dissertation award in his field. Prior to UNCW, he was on
the graduate faculties of several other highly ranked management and entrepreneurship programs, including the
University of California, the Peter Drucker Graduate School at Claremont University, and Purdue University. He
teaches in the areas of entrepreneurship, business valuation, technology management, and competitive and global
strategy

Professional Experience: Dr. Galbraith has extensive entrepreneurial and international experience. Since 1981 he
has been an equity owner, founder, and executive team member for a number of start-up companies. His early
entrepreneurial efforts were primarily in ocean-going shipping enterprises and various import/export efforts. Since
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the early 1990s, he has focused on high technology enterprises. For several years, Dr. Galbraith was a co-founder,
and Chief Operating Officer of Biolife Technologies, Inc, an angel funded biotechnology firm operated as a joint
venture with a large Indian pharmaceutical firm. His responsibilities included business plan development, raising
capital, and product commercialization. The firm was later acquired by the joint venture partner company.
Currently, Dr. Galbraith is the Vice President of Commercialization for Horizon Vision Research, Inc., an early
stage medical instrument design firm.

Dr. Galbraith also has extensive experience as a private equity investor. He is an active member of the Wilmington
Investor “Angel” Network (WIN), and currently serves on the WIN screening committee. He has consulted for a
number of start-up and Fortune 500 firms, various angel and venture capital agencies, and currently specializes in
small business and technology valuation. In this capacity, Dr. Galbraith has valued over 200 businesses and is
court qualified as an expert in entrepreneurship, small business management, and valuation in many state and
federal courts.

Dr. Galbraith has a particular interest in technology commercialization. Since 2001, each summer he has been
employed as a senior commercialization project manager for CCAT, a Department of Defense (SPAWAR) funded
technology transfer agency headquartered in San Diego. His past projects have included a hyperspectral explosives
detection system for airport security; the Naval Undersea Warfare Center's robust automated classification system,
various chemical and biological warfare agent detection systems, several intermodal container alert systems for port
security, a handheld biological collection device from Los Alamos Defense Laboratory, and a heads-up near-eye
mounted optical display for telemedicine. Dr. Galbraith’s current CCAT technologies are a disease vector control
system for military bases in Iraq, a through-wall motion sensing device, and a new adjuvant to increase
effectiveness of anthrax vaccines. He has also participated on recent commercialization projects for DARPA,
TechLink, SSC-San Diego, and the Office of the Secretary of Defense (Project 1401), and has successfully
completed over twenty commercialization projects.

International Experience. Dr. Galbraith has worked within a variety of international environments. He has been
on the faculties of several universities in Scotland, Taiwan, and England, and lectured through-out Europe and Latin
America. Dr. Galbraith has had several export/import business relationships with Korean, Mexican, and Indian
firms and has been a consultant to several Mexican enterprises, including BancoMext, the Mexican national export
bank. He has also been a U.S. sponsored delegate to assist in economic transition in Albania and Belize.

Scholarship. Dr. Galbraith is recognized as the most published faculty member at UNCW and the Cameron School
of Business. He has written six books on entrepreneurship, leadership and technology management, several which
have been translated into different languages, and published over one-hundred scholarly papers in the top journals
in his field, including the Strategic Management Journal, Academy of Management Journal, Journal of Small
Business Management, Journal of Technology Transfer, Journal of Business Venturing and Entrepreneurship
Theory and Practice. He is recognized as one of the world scholars in his field, and has two articles listed among
the top one-hundred cited articles in strategic management. He has won the UNCW award for scholarship, and the
highly competitive GlaxoSmithKline fellowship from North Carolina State University.

Public Service. Dr. Galbraith continues to serve the public as a member of various public agencies and
commissions in North Carolina. He is currently Vice-Chairman of the Town of Kure Beach Planning and Zoning
Commission. In the past, he has been a municipal council member and planning commissioner (City of Mission
Viejo, CA), and industrial development officer (City of Irvine, CA). He has served on various base-closure
commissions and testifies regularly before public agencies regarding economic development issues.
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Schedule – MSA 515

Spring, 2009; Dr. Galbraith

Week 1

Wednesday 1/7 Introduction and course overview.

What is different about international markets and structure?

Discussion of different levels of international business and
entrepreneurial activity.

Video: Segment – Doing business in Africa

Assign: Research Topics for presentation

After lecture, watch: Hernando De Soto Lecture (Frank Porter

Graham Lecture, talk given at UNC, 2004 (link on Galbraith, MSA
515 web page)

Week 2

Monday 1/12 Topics: Review of Basic Strategy Concepts

Lecture: Porter’s 5-factor approach and Industry Structure;

Components of Industry Structure – rivalry and barriers to entry;
Resource model of strategy, generic competitive strategies.

Wednesday 1/14 Topics: Globalization and structure of global markets

Lecture and discussion - Barriers to trade and current trends in

global economics.

Read: Federal Reserve Bank of Dallas on Globalization and

Europe, 2006 (on course web-page)

Week 3

Monday 1/19 Holiday

Wednesday 1/21 International Strategies - Exporting

Lecture: Import/Export Strategies - Modes, Payment,

Intermediaries, and Regulations (continued), homeland security
issues, export controls
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Week 4

Monday 1/26 International Strategies – Licensing and Direct Foreign Investment

Lecture: How does licensing work?

Special topics – Manufacturing in China and India

Wednesday 1/28 International Intellectual Property Protection

Short Case: GG and Tuni (on course web-page)

Group Presentation: Is China trading fairly or not?
Midterm Case handed out

Week 5
Monday 2/2 Topics: International culture

Lecture “Hofstede’s consequences”

Group Presentation: Why did the World (and particularly the

European economy crash along with the U.S?

Wednesday 2/4 Guest Speaker: Doing Business in Mexico

Group Presentation: Bribery Laws: What are they and do they put
U.S. firms at an international disadvantage?
Week 6
Monday 2/9 International Topics: Risk Management

Group Presentation: Future Cougars

Group Presentation: In the past 20 years, why have some Eastern

European countries done very well, while others have failed and
what is the best way to compete as a U.S. firm in these eastern
European markets?

Wednesday 2/11 International Topics: Social Responsibility and Ethics

Group Presentation: What should U.S. firms be doing with respect

to “global warming” and other environmental problems in other
countries that they participate?

Group Presentation: WTO

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Week 7

Monday 2/16 Management of Culture

Short Case: Diversity and The Skilled Nursing Facility (on course
web-page)

Group Presentation: What really has been the result of NAFTA to

the U.S. and Mexico (go beyond simple trade statistics)?

Pass out questions for final exam

Wednesday 2/18 International Topics: Trends in transnational firms

Lecture: Structuring the transnational enterprise and Risk

International Management

Written Case analysis turned it, discussed in class (Skoda)

Week 8

Monday 2/23 Group Presentations

Group Presentation: Why has Ford been successful

internationally, but other U.S. car companies have not?

Group Presentation: Why has India “boomed”, but why is it

considered a fragile economy?

Wednesday 2/25 International Negotiations

Lecture: Principles of Negotiations. Characteristics of

international negotiations

Role Playing: International negotiations role playing exercise.

Friday 2/27 Final Exam

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Research and Discussion Topics (to be presented in class – 20 minutes presentation plus
lead/participate in discussion for 10 to 15 minutes)

1. Why did the World (and particularly the European economy crash along with the U.S?
2. Bribery Laws: What are they and do they put U.S. firms at an international disadvantage?
3. In the past 20 years, why have some Eastern European countries done very well, while
others have failed and what is the best way to compete as a U.S. firm in these eastern
European markets?
4. What should U.S. firms be doing with respect to “global warming” and other
environmental problems in other countries that they participate?
5. What really has been the results if NAFTA to the U.S. and Mexico (go beyond simple
trade statistics)?
6. Why has Ford been successful internationally, but other U.S. car companies have not?
7. Why has India “boomed”, but why is it considered a fragile economy?