International Management

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Global strategy of a company – export, Globalization, localization, adaptation or trans national partnership

TNo talks about how a company ensure know management in a multi divisional firm –

Reverse innovation – how companies can innovate for the developing market and then use that product in a developed market and make profit

HQ subsidiary relationship – Power distribution – black hole strategic leader framework, we have to give the power to subsidiary if the work done over there is important

Gravity model of trade flow,

Home Bias in international trade, Effects of similarities in bi lateral trades

We looked at different dimensions of distance apart from geographic and economics we looked in to cases of walmart

CAGE framework – How some distances are more important for some industries

ADDING VALUE Framework – ADDI is from the basic strategy course we have added the dimension of risk and learning

WE talked about why normalizing the risk is counter intuitive wrt to core course, at what level we are adding value global or regional or local

Looked into foreign market entrance strategies – which market to enter when to enter whether you want to enter first or follow , low scale or high scale, resource commitment, mode of entrance.

Entry decision is never a one short decision we can always go for low scale entry with low resource commitment and once the information asymmetry reduced we can always think of increasing the resource commitment, mistakes can be costly so we can take it slow

Looked into FDI issues in developing countries – trend of FDI investment, inbound, outbound between developing vs developed economy, importance of FDI, greenfield vs brown field FDI, Portfolio investment, FII and also looked in to the negative side of FDI

We also studied FDI in terms of India, how the FDI framework evolved in India, we looked into FDI inflows route wise, Automatic or Govt approval route, which states, sectors or companies getting FDI in India, we talked about maurtius and FDI, FDI difference in China and India

Whether FDI is good or bad depends on the role of regulator that government plays

International strategic alliances, JVs – Corporate governance issues between emerging economics and developed economics.

Most important - Why JV are unstable and how institutional problems can occur and what is the role of institutional reforms and economic reforms in this instability,

Important - Domination of an alliance is not a failure of an alliance

Global mega mergers – Build vs Buy Dilemma, why bigger is better, Tata Steel aquistion was a herd behaviour

Upper echelon theory personal commitments of top management – explains about mega merger - BP, Banking, Mittal steel – EOD it talks about monopoly power after the merger

Then we talked about adaptation strategies – how developing economic firms adapt in the developed country and vice versa,

Market Structure are different, If we enter the top tier with high purchasing parity you might not be able to adapt

We looked into other side of adaptation strategy – the economic and corporate governance part of it equity ownership in business houses, how – Equity locking helped them adapt to hostile take over threats

We learnt about arbitrage strategies - CAGE framework with arbitrage strategy - how it gives competive advantage but is not sustainable but we still go for it because if we don’t go others will go for it

Indian IT sector Body shopping to offshoring etc

Then we learnt about Aggregation strategies – Globalization of production whether we want outsource or do it on our own – Transaction cost economy framework,

third part logistics why it creating value, Li Fung kind of companies.

Globalization of capital markets – difference between exchange market and exchange risks – role of IMF world bank

Globalization of capital market is probably not good because there are so many evidences of financial crisis.