MOR 492: Global Strategy (4.

0 units)
Syllabus – Spring 2018
Sections: 16687; MW, 10-11:50am; HOH2
16689; MW, 4-5:50pm; JFF236
Instructor: Christine El-Haddad, Ph.D.
Office: HOH421
Office Hours: By appointment
Email: elhaddad@marshall.usc.edu

Course Description
Business enterprise in today’s environment increasingly involves crossing national borders and, more
generally, engaging in business activities in numerous countries that are often very different from one
another. Understanding the key strategic opportunities and challenges associated with global business
activity and developing skills in this area have become essential requirements for success. MOR492, Global
Strategy, introduces the key concepts, frameworks and principles needed to formulate and implement
successful global strategies. It is designed to provide students with the knowledge, skills and business
judgement required to create, sustain, and renew competitive advantage within a global context.

The course consists of two main parts. Part I, Fundamentals of Global Strategy, covers four main topics
that address the key dimensions of global strategy.
• The first topic, “Why do firms go abroad?”, focuses on the opportunities and challenges of international
expansion and introduces strategies for creating value globally.
• The second topic addresses the questions of “Where and when to locate?” and covers frameworks for
assessing potential locations for international expansion and for determining the optimal timing of
entry.
• The third topic, “What is global?”, covers frameworks for allocating products and activities across
locations to maximize value creation and capture.
• The fourth topic, “How to execute global strategies?”, is concerned with selecting the right mode of
entry into foreign markets and the optimal organizational structure for global operations.

Part II, Special Topics in Global Strategy, addresses four main topics that represent some of the most
important strategic challenges faced by multinational corporations today.
• The first topic, “How to manage global innovation and learning?”, introduces traditional and emerging
models of cross-border innovation and reviews their strengths and limitations.
• The second topic, “How to manage cross-border collaboration?”, is concerned with the fundamental
principles for forming and managing successful strategic alliances.
• The third topic, “How to do good and do well?”, focuses on how multinational corporations can identify
and successfully exploit opportunities to achieve a competitive advantage while also creating value for
society.
• The fourth topic addresses the question “How to win in emerging markets?” and provides frameworks
for assessing emerging markets’ potential and for crafting and executing strategies for succeeding in
those markets.

The course is designed for students who seek to work in, or with, firms that operate in many different
countries, or which operate outside the United States. It is also appropriate for students pursuing strategic
positions in local firms that compete with large multinational enterprises.
Learning Objectives
Upon successful completion of the course, students will be able to:

Part I. Fundamentals of Global Strategy

1. Identify the opportunities and challenges of international expansion and formulate an effective strategy
for creating value globally.
2. Evaluate potential locations for international expansion and craft a location strategy and
implementation timeline.
3. Provide recommendations for allocating products and activities across locations to maximize value
creation and capture.
4. Provide recommendations for selecting the right mode of entry into foreign markets and the optimal
organizational structure for global operations.

Part II. Special Topics in Global Strategy

1. Provide recommendations for effectively managing worldwide innovation and learning.
2. Provide recommendations for forming and managing successful cross-border strategic alliances.
3. Provide recommendations for achieving a competitive advantage while also creating value for society.
4. Provide recommendations for selecting the right emerging markets to enter and formulate a strategy
and an implementation plan for succeeding in these markets.

The course will place a special emphasis on developing your critical thinking skills. Cases will seek to
develop your ability to uncover the various potential problems, challenges and opportunities faced by a
multinational enterprise, select the most important, develop alternative courses of action for addressing
those issues, assess the different courses of action in light of multiple criteria, select the solutions that have
the potential to be the most effective and develop an effective implementation plan. The course will also
place a special emphasis on developing your oral and written communication skills through presentations
and reports.

Required Materials
Harvard Coursepack. Assigned readings and cases for this course are compiled in a digital coursepack
available from Harvard Business School Publishing at the following link:
http://cb.hbsp.harvard.edu/cbmp/access/72702816
Additional readings may be distributed in class or posted to Blackboard. When necessary, I may assign
additional materials for you to purchase.

Blackboard (Bb). I will post various course materials to Blackboard including the course syllabus,
powerpoints, lecture notes, case discussion questions and assignments. Please check Blackboard regularly
for any new information or materials relevant to upcoming sessions.

3x5 Index Cards. Please bring a deck of 3x5 index cards to every class to record your oral class
participation.

Course Format and the Case Discussion Method

In order to achieve the objectives of the course, we will devote the majority of our class time to the analysis
and discussion of selected business cases. Occasional lectures will be given to elaborate on key theoretical
models and frameworks. These lectures, however, will be subordinate to the case analysis. Cases provide a
natural "test-bed" for theory and provide vivid examples that aid the memory of concepts. While nothing
can surpass first-hand personal industry and managerial experience as a basis for decision-making, case
analysis is an indispensable proxy for the kind of knowledge that can only be gained through years of
experience and research. A set of business cases has been selected on a range of companies from a variety
of industry settings. Each case is intended to teach us something specific, yet each can teach us many things.
We will not attempt to exhaust each case of all its learning experiences, but rather build up a "war chest"
of analytical tools, skills and insights, progressively over all the selected cases.

There are other reasons for employing the case discussion method of instruction. First, it allows you to
develop skills at problem definition in addition to problem solving. Cases typically do not have an obvious
set of tasks whose performance will lead to mastery. Rather, they force you to sift through a mass of
information, some of it irrelevant or contradictory, in order to identify the key strategic issues. Second, the
case method gives you a chance to deal with ambiguity. Most cases do not have obvious "right" answers.
Managers must be able to function in situations where the right answer is not known, without falling into
the trap of assuming that any answer is as good as another. Some analyses and proposed strategies are
clearly wrong, and some are clearly better than others are. A popular phrase in case analysis classes is
"There are no right answers, but there are wrong answers."

These rationales are offered because the case method may be unfamiliar to some of you and frequently
causes initial confusion. There will be many times when I will not reveal my own opinions about a particular
issue, and there will be many cases that do not end up neatly packaged with an "answer." You may discover
that your preparation "misses" key points of a case, especially at first. This is a normal part of the learning
experience.

The quality of your learning experience during our class discussions will be directly determined by: 1) your
degree of preparation, active listening, and participation, and 2) your classmates' preparation, listening, and
participation. Some will not agree with you, and you may be asked to defend your argument. So long as
criticism is directed at arguments and not at individuals, is relevant to the issues at hand and coherently
argued, it is very much welcomed.

Course Evaluation
Your course grade will be determined as follows:

Individual work (75% of total)

Course Contribution 20%
In-Class Case Analysis 10%
Midterm Exam 20%
Final Exam 25%

Group work (25% of total)

Team Final Project Paper 15%
Team Final Project Presentation 10%
100%

In order to pass this course successfully, a passing grade (> 50%) must be achieved in the combined average
of the individual components and in the combined average of the group components. Please note that if
your individual performance in the course is unsatisfactory, it will not be brought up by a good group
grade.

Final grades represent how you perform in the class relative to other students. Three items are considered
when assigning final grades:
1. Your weighted score as a percentage of the available points for all assignments (the points you receive
divided by the number of points possible).
2. The overall average percentage score within the class.
3. Your ranking among all students in the class.
Attendance Policy
Class attendance is absolutely essential. All missed classes will be noted. The policy on missed classes is
to allow each student three (3) absences, no questions asked, no penalty. All further absences over this
limit will reduce the student's course contribution grade and final course grade, no questions asked, no
excuses of any kind accepted. Students with an excessive number of absences are at risk of failing the
course. Only official university engagements, such as officially scheduled USC Marshall sponsored case
competitions and sports events, will be accepted as exceptions to this policy. Job interviews etc., are not
excused, so choose your absences carefully. Habitual lateness and leaving class early, for whatever reason,
will be noted as evidence of low course commitment and penalized. Simply put, you cannot learn from
our class discussions, and your classmates cannot learn from you, if you are not present.

Course Contribution (20%)

Because this course relies heavily on case materials, your active engagement and contribution to our case
discussions are required to ensure the class' success. Your individual course contribution grade has three
key components: 1) pre-class preparation, 2) in-class participation and 3) post-class contribution. These
three components account respectively for 15%, 70% and 15% of your course contribution grade.

Pre-class preparation. Your ability to learn from case discussions is directly proportional to the quality of
your preparation. What you get from this course will depend on what you put in – not just in terms of your
reading and analysis of the cases, but your willingness to question and to seek alternate perspectives, to be
clear about your own position, and to defend your arguments. Unless you have thought about the cases, it
is very hard to contribute to the case discussion and to learn from others’ questions and contributions to
class. For guidelines on how best to prepare for a case discussion, please refer to the Guide to Case
Preparation posted to Blackboard and bring your notes to class to aid you in the class discussion. Students
can also submit case notes. Case notes are individually prepared, but brief, answers to the case discussion
questions. They should be a maximum of one typed page, single-spaced, 11- point font. Bullet point form
is appropriate. Case notes must be submitted to me in hard copy format prior to the beginning of class to
receive credit. They will be checked with a plus, check or minus based on quality and thoroughness.
Students should turn in at least five (5) case notes during the semester. Please note that case notes do
not substitute for active oral contribution to our class discussions and cannot be submitted to make up for a
class absence.

In order to test the level of student preparation for a case discussion, I may give a short case quiz at the
beginning of class. The quiz will generally consist of short-answer questions related to the case. Quizzes
may be viewed by coming during office hours. No make-up opportunities will be given to students who
are absent or late.

In-class participation. Class participation is critical in this course. Each student has a responsibility to
participate in class and to enhance the learning experience of all class participants. In relative terms, a
classroom is a cost-free environment for experimenting and learning to "play the game". Make use of it. In-
class participation includes both oral participation in our class discussions as well as participation in various
written assignments. If you are uncomfortable with oral participation, please let me know at the beginning
of the semester and I will work with you to help you overcome this barrier.

In grading oral participation, I will look at both the quantity and quality of your oral contributions. To help
me track oral participation, students who actively participated in the oral discussion during a class session
should turn in a participation card at the end of that session. The card should list your name, the date, and
a numbered list of your oral contributions during that day’s discussion. For this purpose, please purchase a
package of 3x5 index cards and bring them to each class.
With regard to quality, the dimensions I look for include:
Relevance. Does the comment bear on the subject at hand? Comments that do not link up with what the
discussion is focusing on can actually detract from the learning experience.
Causal Linkage. Are the logical antecedents or consequences of a particular argument traced out?
Comments that push the implications of a fact or idea as far as possible are generally superior.
Responsiveness. Does the comment react in an important way to what someone else has said?
Analysis. Is the reasoning employed consistent and logical?
Evidence. Have data from the case, from personal experience, from general knowledge been employed to
support the assertions made?
Importance. Does the contribution further our understanding of the issues at hand? Is a connection made
with other cases we have analyzed?

In addition to weekly opportunities for oral participation in case discussions led by the instructor, each
student will also have the opportunity to serve as a case leader, taking the lead on a specific part of a case
discussion. Case leadership involves two distinct roles: case presenter and case challenger. As a case
presenter, you will analyze a specific part of a case and do a short 5-minute presentation of your analysis
to the class using powerpoints. As a case challenger, you will prepare and ask questions in class that
challenge our analysis of a case and demonstrate critical thinking. You will also help provide an update to
the case. Detailed instructions regarding your case leadership assignment will be discussed in class and
posted to Blackboard.

Post-class contribution. In a case-oriented, discussion-based class, much of the learning happens after class,
as the “dust settles” and the key take-aways from each case become clear. Shortly after each class session
devoted to a case discussion (preferably within a few hours, while your memory is fresh and within a
maximum of 3 days), please take some time to write down your three (3) key take-aways from the case in
the form of a short note (approximately 10 lines or longer) posted on our Blackboard Discussion Board
(accessible through the course Tools link in Blackboard). These postings can also include responses to other
students’ postings already on the Discussion space. They may also discuss connections you see between
the case and the associated readings, prior case discussions, or other real-world issues. Students must post
their take-aways for at least five (5) cases during the semester.

I will use the following criteria to assess your post-class take-away posting on our Blackboard Discussion
space:
Coverage. The best take-aways synthesize the key ideas that emerged during the discussion and from the
readings. Weaker take-aways focus on just a subset.
Insight. Weak take-aways list the topics we addressed; the best take-aways pinpoint the lessons learned
about those topics. The best take-aways also suggest new questions that are raised by these lessons.
Connections. The best take-aways link the lessons of this discussion to others earlier in the course. Weaker
take-aways don’t make such connections.
Point of View. The best take-aways reveal how the discussion has enriched your own thinking. Weaker
take-aways lack that personal engagement, or simply reiterate a pre-formed personal opinion.

In-Class Case Analysis (10%)

You will prepare an individual in-class case analysis for the case: The Globalization of the NFL. The
assignment involves answering a set of 4-5 questions pertaining to the case. More detailed guidelines will
be given in class and posted to Blackboard.

Midterm Exam (20%). The midterm exam will take place on Monday, February 12 and will consist of 50
multiple-choice and True/False questions. Sample questions and a list of material covered by the midterm
exam will be posted to Blackboard.

Final Exam (25%). The final exam will be a two-hour comprehensive exam and will consist of 50 multiple-
choice and True/False questions. The date and time of the final exam is determined by the University. You
should attend the exam for your specific section.
Team Final Project Paper and Presentation (25%)
You will work with your team to draft a report in which you analyze an emerging market and advise an
existing multinational corporation not already present in that emerging market on whether they should enter
a particular business sector (e.g. automobile, retail, manufacturing etc.) in that market. You will prepare
your report as if you were going to present your findings to the top management team of the company. If
you choose to enter, you should clearly specify the reasons and propose a detailed strategy and
implementation plan to achieve success in that foreign market. If you choose not to enter, you should clearly
specify the reasons. If the decision is contingent on some factors, you will need to identify those.

Two days near the end of the course are set aside for presentations of your final project. The presentation
allows each team to report their analysis and recommendations to the class. The exact presentation date and
time for each team will be assigned by a random drawing. Detailed instructions regarding the group project
including instructions on the paper and the presentation will be discussed in class and posted to Blackboard.

Peer Evaluations. Each of you will complete a peer evaluation of the members of your team with respect to
the team final project. A copy of the peer evaluation form is posted to Blackboard and is due on the day of
the final exam. Scores for individual student contributions to the team final project are assigned by me,
based on my assessment of the team’s project quality, my observations of the team’s working dynamics
and thoughtful consideration of the information provided through your peer evaluations.

If you experience any group-related problem (e.g. conflict, free-rider etc.), please let me know
immediately. Do not wait until the end of the semester. If you report this problem too late, there is
not much I can do.

Course Policies

Add/Drop Process
If you are absent three or more times prior to January 19th, 2018, I may ask you to withdraw from the course
by that date if you do not notify me prior to your absence. These policies maintain professionalism and
ensure a system that is fair to all students.

Course Communication: Blackboard

A Blackboard site has been created for this course: https://blackboard.usc.edu. You should develop the
habit of checking Blackboard on a regular basis. The course syllabus, powerpoints, lecture notes,
assignment information, and additional course materials will be posted on this site throughout the semester.
Since e-mails sent to the class originate from the Blackboard system, it is your responsibility to ensure that
your Blackboard account settings are such that emails sent to you via Blackboard are forwarded to your
preferred email account such as your personal Gmail account.

Communication and Entertainment Devices

Personal communication and entertainment devices such as mobile phones are to be turned off and kept off
throughout the class session. Receiving or sending communication and entertainment during class disrupts
the learning environment and is rude to class participants. Videotaping faculty lectures is not permitted, due
to copyright infringement regulations. Audiotaping may be permitted if approved by the professor. Use of
any recorded or distributed material is reserved exclusively for the USC students registered in the class.

Academic Integrity and Conduct

USC seeks to maintain an optimal learning environment. General principles of academic honesty include
the concept of respect for the intellectual property of others, the expectation that individual work will be
submitted unless otherwise allowed by an instructor, and the obligations both to protect one’s own academic
work from misuse by others as well as to avoid using another’s work as one’s own (plagiarism). Plagiarism
– presenting someone else’s ideas as your own, either verbatim or recast in your own words – is a serious
academic offense with serious consequences. All students are expected to understand and abide by the
principles discussed in the SCampus, the Student Guidebook (www.usc.edu/scampus or
http://scampus.usc.edu). A discussion of plagiarism appears in the University Student Conduct Code
(section 11.00 and Appendix A).

Students will be referred to the Office of Student Judicial Affairs and Community Standards for further
review, should there be any suspicion of academic dishonesty. The Review process can be found at:
http://www.usc.edu/student-affairs/SJACS/ . Failure to adhere to the academic conduct standards set forth
by these guidelines and our programs will not be tolerated by the USC Marshall community and can lead
to dismissal.

Support Systems
The following support systems are available to USC students.
Diversity at USC
Includes tabs for Events, Programs and Training, Task Force (including representatives from each school),
Chronology, Participate, and Resources for Students.
https://diversity.usc.edu/

Office of Equity and Diversity (OED)/Title IX compliance

Works with faculty, staff, visitors, applicants, and students around issues of protected class.
https://equity.usc.edu/
(213) 740-5086

Bias Assessment Response and Support

Provides support for reporting incidents of bias, hate crimes and microaggressions allowing for appropriate
investigation and response.
https://studentaffairs.usc.edu/bias-assessment-response-support/

Student Support & Advocacy

Assists students in resolving complex issues (personal, financial, and academic) adversely affecting their
success as a student.
https://studentaffairs.usc.edu/ssa/
(213) 821-4710

Student Counseling Services (SCS)

Provides free and confidential mental health treatment for students, including short-term psychotherapy,
group counseling, stress fitness workshops, and crisis intervention.
https://engemannshc.usc.edu/counseling/
(213) 740-7711 – 24/7 on call

National Suicide Prevention Lifeline

Provides free and confidential emotional support to people in suicidal crisis or emotional distress 24 hours
a day, 7 days a week.
http://www.suicidepreventionlifeline.org
1-800-273-8255

Relationship & Sexual Violence Prevention Services (RSVP)

Provides free and confidential therapy services, workshops, and training for situations related to gender-
based harm.
https://engemannshc.usc.edu/rsvp/
(213) 740-4900 - 24/7 on call
Sexual Assault Resource Center
Provides information about how to get help (or help a survivor), rights, reporting options and various
additional resources.
http://sarc.usc.edu/

Students with disabilities

USC is committed to making reasonable accommodations to assist individuals with disabilities in reaching
their academic potential. If you have a disability which may impact your performance, attendance, or grades
in this course and require accommodations, you must first register with the Office of Disability Services
and Programs (www.usc.edu/disability). DSP provides certification for students with disabilities and helps
arrange the relevant accommodations. Any student requesting academic accommodations based on a
disability is required to register with Disability Services and Programs (DSP) each semester. A letter of
verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered
to your instructor as early in the semester as possible. DSP is located in GFS120 (Grace Ford Salvatori
Hall) and is open 8:30 a.m.–5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-
0776. Email: ability@usc.edu.

Emergency Preparedness/Course Continuity

In case of a declared emergency if travel to campus is not feasible, the USC Emergency Information web
site (http://emergency.usc.edu/) will provide safety and other information, including electronic means by
which instructors will conduct class using a combination of USC’s Blackboard learning management
system (blackboard.usc.edu), teleconferencing, and other technologies.

Class Notes Policy

Notes or recordings made by students based on a university class or lecture may only be made for purposes
of individual or group study, or for other non-commercial purposes that reasonably arise from the student’s
membership in the class or attendance at the university. This restriction also applies to any information
distributed, disseminated or in any way displayed for use in relationship to the class, whether obtained in
class, via email or otherwise on the Internet, or via any other medium. Actions in violation of this policy
constitute a violation of the Student Conduct Code, and may subject an individual or entity to university
discipline and/or legal proceedings.

No student may record any lecture, class discussion or meeting with me without my prior express written
permission. I reserve all rights, including copyright, to my course syllabi, lectures, powerpoints, prior
exams, answer keys, and all supplementary course materials available to the students enrolled in my class
whether posted on Blackboard or otherwise. They may not be reproduced, distributed, copied, or
disseminated in any media or in any form, including but not limited to all course note-sharing websites.
Course Schedule
# Date Session Topics & Agenda Readings/Assignments
Fundamentals of Strategy
1 M 1/8 Course Introduction and Overview;
Fundamentals of Strategy I
Lecture
2 W 1/10 Fundamentals of Strategy II Case: The U.S. Airline Industry in 2012 (BB)
Lecture, case analysis, team formation
M 1/15 Martin Luther King’s Birthday – No Class
I. Fundamentals of Global Strategy
3 W 1/17 Why Do Firms Go Abroad? Opportunities Readings: Managing Global Expansion (CP);
and Challenges of International Expansion ADDING value (BB); Managing Differences: The
Lecture Central Challenge of Global Strategy (CP)
4 M 1/22 - Motivation for international expansion, Case: Grolsch: Growing Globally (CP)
location strategy, choice of entry mode
Case discussion
5 W 1/24 Strategies for Global Value Creation: Readings: Adaptation Strategies (BB); Aggregation
Adaptation, Aggregation, Arbitrage Strategies (BB); Arbitrage Strategies (BB)
Lecture Case: Levendary Café (CP)
- Adaptation Final project proposal due
Case discussion
6 M 1/29 - Adaptation Case: Wal-Mart in Europe (CP)
Case discussion
7 W 1/31 Where to Locate? Crafting Location Readings: Distance Still Matters (CP); Strategies that
Strategies for Competitive Advantage Fit Emerging Markets (CP)
Lecture, in-class exercises
8 M 2/5 - Location strategy, adaptation Case: Grupo Bimbo (CP)
Case discussion
9 W 2/7 - Location strategy, developed markets Case: Haier: Taking a Chinese Company Global (CP)
Case discussion
10 M 2/12 Midterm Exam
11 W 2/14 - Global expansion Case: The Globalization of the NFL (CP)
In-class case analysis
M 2/19 President’s Day - No Class
12 W 2/21 - Adaptation, emerging markets Case: Yum! China (CP)
Case discussion
13 M 2/26 What is Global? Allocating Products and Case: P&G Japan: SK-II Globalization Project (CP)
Activities Across Locations
Lecture, case discussion
14 W 2/28 - Outsourcing Case: P&G: Global Business Services (CP)
Case discussion Final project working outline due
 15 M 3/5 - Regional and global business strategies Case: The Globalization of East Asian pop music(CP)
Case discussion
16 W 3/7 Project Feedback Session
3/11-18 Spring Recess – No Class
17 M 3/19 How to Execute Global Strategies? Foreign Case: Walmart around the world (CP)
Entry Modes and Global Org. Structures
Lecture, case analysis
18 W 3/21 - Foreign entry modes Case: Lincoln Electric (CP)
Case discussion
19 M 3/26 - Headquarter-subsidiary relations Case: Silvio Napoli at Schindler India (A) (CP)
Case discussion
II. Special Topics in Global Strategy
20 W 3/28 How to Manage Global Innovation & Reading: How GE is Disrupting Itself (CP)
Learning?
Lecture
- Reverse innovation Case: Health City Cayman Islands (CP)
Case discussion
21 M 4/2 - Reverse innovation Case: GE in India: Changing Healthcare (CP)
Case Discussion
22 W 4/4 How to Manage Cross-Border Case: Renault-Nissan Alliance (CP)
Collaboration? First final draft of final project due
Lecture, case discussion
23 M 4/9 - Partner negotiation in international JVs Case: Nora-Sakari: A Proposed JV in Malaysia (CP)
Case discussion
24 W 4/11 Project Feedback Session

25 M 4/16 How to Do Good and Do Well? MNEs and Reading: Creating Shared Value (CP)
Social Responsibility
Lecture
- Global sourcing, ethics Case: IKEA’s Global Sourcing Challenge (A) (CP)
Case discussion
26 W 4/18 - Global sourcing, ethics Case: IKEA’s Global Sourcing Challenge (B) (CP)
Case discussion
27 M 4/23 How to Win in Emerging Markets? Final project paper due
Final Project Presentations I
28 W 4/25 Final Project Presentations II
Final Exam
• Section 16687 (MW 10:00 - 11:50am): Mon., May 7, 2018; 8 - 10am
• Section 16689 (MW 4:00 - 5:50pm): Wed., May 2, 2018; 4:30 – 6:30pm

CP = Harvard Coursepack
BB = Blackboard