COMPETING IN THE GLOBAL MARKET PLACE – Why?
Our first module is a short, introductory one, consisting of six sessions.
We begin by defining globalization,
examining its nature and extent, what is driving it, and the many and varied motivations and incentives firms
have for “going global.”
We will critically evaluate whether globalization is as prevalent as assumed, and a
We will discuss barriers and limitations to globalization.
We will make much of the
concept of semi-globalization.
This first module is meant to set up and provide a broad perspective for the rest
of the course.
Course Introduction - What is Globalization?
We need to establish a good sense of the phenomenon of globalization that we will be discussing and debating
though out the course.
We need definitions of globalization.
We need a real sense of the underlying motives –
economic, political, and social – that force commerce, economic activity, and people across borders.
We need to get
a sense right at the beginning of how operating a business enterprise across national borders changes the nature and
scope of strategy and management challenges.
We also need to debate the issue of whether globalization as a
phenomenon is a good thing, a bad thing, or something that can be both good and bad simultaneously.
Gupta and Govindarajan. “Managing Global Expansion: A Conceptual
Strategy: First Principles and Core Concepts
In our second working session we will do two things.
We will discuss the scope of the course and its deliverables,
and then begin with a discussion the core concepts of strategy.
For those who have not taken BUAD 497, this will
be an introduction.
For those who have, this will be a good review that will help reinforce and sharpen your skills.
In its most basic form strategy is about value creation, competitiveness, and sustainability.
We need to understand
how firms can create margins, and sustain those margins against aggressive competitors, powerful suppliers (who
want higher prices for their inputs), and customers whose willingness to pay continues to decline over time.
In this session we will review the most basic concepts of generic competitive strategy including cost leadership
based strategies, differentiation-based strategies, and focus/niche strategies.
We also need to understand the logic
behind corporate strategy.
In the most simple sense, when a business enterprise expands beyond a focus on a single
product-market space to other product-market areas (diversification), into additional parts of the production chain
(vertical integration), and into new geographic locations – domestically or internationally (geographical/global) – it
must formulate a corporate strategy.
The logic inherent in a corporate strategy differs from a business strategy in
that corporate parents look to find ways to add value to their portfolio of business units by ensuring the “whole is