20343 - STRATEGIC DESIGN OF THE MULTINATIONAL FIRM

The aim of this course is to prepare students for their future career in a multinational company (MNC). Globalization of markets and industries has created new growth opportunities for companies by accessing resources and serving markets worldwide. At the same time, managing across different cultures, administrative systems, geographic distances, economic structuresposes its own managerial challenges. This course focuses on the strategic and organizational challenges involved in managing activities across borders, in an increasingly interconnected world. Students can expect to come away with a set of frameworks that helps them to understand: Why firms do (or don’t do) international business? How do they do it? What are the international strategies firms use as they go overseas? How firms build a global presence by choosing countries, products and modes of entry? How firms organize themselves for international business? Lectures are very interactive and supplemented with classroom exercises (e.g. the 3M simulation on market selection), recent articles (from The Economist , Fortune and Financial Times), academic papers on up-to-date topics (e.g. offshoring), a rich set of business cases, and guest speakers (from Apple, Whirlpool Corporation, L’Oreal, 3M, Almax, Intercos, Vodafone and many others). Class participation is critical to success in this course. To be Attending Students at least 18 sessions over 24 are required (the Attendance Sheet passes during each class).

The course is structured as follows: it opens with a discussion of the meanings of globalization and the imperatives that drive firms to invest abroad as they seek growth, efficiency, knowledge and diversification. Difficulties, such as liability of foreignness are also taken into consideration because they cause costs of doing business abroad (CDBA). Then, it addresses how firms build global presence (e.g. market selection, entry modes) and how internationalization choices influence firm's performance. Then, it move on to an examination of the organizational challenges involved in exploiting the strategic benefits of global presence. Specialised modules focus on the relationship between Headquarters and subsidiaries and Emerging Markets (how are they different?).

Student evaluation consists of a written exam at the end of the course (80% of the total grade) and a teamwork completed during the course (20% of the total grade). Extraordinary in class contribution (in particular in discussing cases and participating to debates) is awarded with one extra point at the end of the grading process.

• P. GHEMAWAT, Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter, HBS Press, 2007
• Slides, cases and readings discussed in class and not included in the above mentioned book are accessible on Course Reserve or saved on the E-Learning Platform (Course: 20343).