Class Description
BUSMHR 3000: Advanced Topics in International Business
The course Advanced Topics in International Business is a course taught by Dr. Mona Makhija. It is for international business majors to gain a better understanding of international business and the strategies firms use overseas. In addition, students will learn to understand how international strategies are structured and enacted. Some benefits of international strategies include:
- Sales volume
- Economies of scale through production efficiencies
- Location efficiencies
- Differentiation and local responsiveness
- Innovation and R&D
The course is split up into cases and a business simulation. Each week students read one to two cases which are then discussed in class. The class discussion is interactive and identifies the international strategy used by the company, various questions about their success or failure, how they were able to expand internationally, and what country specific strategies were used. The business simulation begins in the second half of the course and is completed in a team of 4 or 5 students. The simulation enables students to practice the concepts learned from the cases in a hands-on manner, and learn first-hand the complexities of managing a multinational enterprise in a rapidly-changing environment. Each week students will work in their team to make decisions about their company and then reflect on the mistakes that were made that week and what could be improved upon.
Class Reflection
The case studies that we read each week focused on brands from a variety of industries. We read a case study of Amazon and how they were able to expand into India and the methods they used to be successful. The government played a big factor in India because there are a lot of mom and pop shops and Amazon is a conglomerate that could overtake the market. They ended up acquiring an Indian company to enter into the country, which is similar to their entry into China, but different from Amazon’s entry into Brazil. I thought this was very interesting to see the three different entry strategies that they decided to use and the risks that they took.
During the simulation I learned about quick adaptation to changes on demand and to competition. Each week I would look at the competitions statistics and analyze their R&D contributions, costs analysis, and how they promoted their products in different markets. As a group we would acknowledge the importance of responding to the market information. This information would change after each round and we would have to adjust our plan accordingly. The market information is similar to how business is conducted in the real-world, because there can be many changes in the stock market, politically, and/or economically that can impact the trajectory or your company’s plans. With each round I learned more about everything that goes into product adaptation and how to adapt to the competition and put yourself on top.
The purpose of the simulation was to participate in the decision-making of a firm in a competitive environment. It was based on the cellphone industry, which is technologically intensive, highly competitive, and rapidly changing. Each week we made 9 decisions that related to markets, production and outsourcing, promotion and pricing, logistics, capital structure, debt, and R&D.
Some lessons I learned from the simulation were:
- Production: Extremely expensive to build factories and slow approach might be best
- R&D and Features: Helps to differentiate, but also very expensive
- Promotion: Absolutely critical to the success of a brand
- Debt: Can impact future production and capabilities, issuing shares and buying back shares
- Competitors: Learning from their successes and mistakes
- Group dynamics: Everyone has different insights based on their personal or cultural background
The lessons that I learned in this class allowed me to view globalization and the internationalization of companies in a different light. I had never thought about what all goes into expanding internationally, the various strategies, marketing tactics, and research and development that is conducted. This class has enabled me to have such a deeper understanding of international business and methods that companies initially used to enter into different spaces. Overall, the case studies coupled with the business simulation was a successful way to teach, and for me to learn about international business on an advanced level. By reading the case studies I was able to learn how to identify entry strategies, success rates, and also research where each company is today. I learned many skills throughout this class that expands beyond international business.