MGT 112: Global Business Strategy

Spring 2018

Section A00 Mon & Wed, 12:30 – 1:50pm, Wells Fargo Hall 1N108
Section B00 Mon & Wed, 3:30 – 4:50pm, Wells Fargo Hall 1N108

PROFESSOR: Dr. Rob Fuller, Ed.D.

EMAIL: rlfuller@ucsd.edu
PHONE: TBD
OFFICE HOURS: Mon & Wed, 2 – 3:20pm
OFFICE LOCATION: Otterson Hall Room 2E116

TEACHING ASSISTANT/TUTOR: A00 (12:30) – Shuangquan Chen (Shuangquan.chen@rady.ucsd.edu)

B00 (3:30) – Loren Perkowski (lperkows@ucsd.edu)

DESCRIPTION

This course provides the students with an understanding of how firms gain and sustain competitive
advantage in a global setting. It examines the strategic, organizational, and managerial challenges faced
by companies operating in today’s international and global markets. Students will learn the intricacies of
an international strategic agenda considering a firm’s competencies and sources of competitive
advantage. Based on contemporary business policy and organizational frameworks, the international
environment, the process of internationalization and the specific strategic and organizational challenges
of international companies as well as ethical issues in global business are analyzed and discussed.
Beside theoretical concepts, teaching will be based on real life case studies to provide students with a
practical context for course discussions. Throughout the course, initiative, creativity, and critical thinking
on part of the students will be appreciated and encouraged. Students have to learn how to analyze
critically different alternatives attractive for distinct reasons.

The course will be conducted with lecture-discussions, online content, student group presentations, case
studies, and research assignments.

MATERIALS
Required
 Text: de Kluyver, Cornelis A., Fundamentals of Global Strategy: A Business Model Approach,
Business Expert Press, 2010
 On electronic reserve: Ghemawat, Pankaj, “Why the World Isn’t Flat,” Foreign Policy, no. 159, March-
April 2007, pp. 54-60.
 Markstrat Participant Handbook, STRATEGIC MARKETING – DURABLE CONSUMER GOODS,
download from www.stratxsimulations.com
 Markstrat Participant Activation Key (PAK), available at the Stratx online store with course registration
at http://shop.stratxsimulations.com
Suggested Reading
 Friedman, Thomas L., The World is Flat: A Brief History of the Twenty-First Century, Farrar, Straus
and Giroux, 2005.
 Ghemawat, Pankaj, Redefining Global Strategy: Crossing Borders in a World Where Differences Still
Matter, Harvard Business School Press, 2007.

ASSIGNMENTS

Your performance in the class and grade you receive will be based on the following components:

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PARTICIPATION IN BEHAVIORAL LAB EXPERIMENTS (5%)
Five percent of your grade is based on participation in the Rady School Behavioral Lab Research
Participant Pool. You can get full credit if you take part in two experiments. Each experiment will take up
to one hour. There are alternative credits for a written paper in case you cannot fulfill your participation
requirements – contact the Behavioral Lab for details. For information on how to participate in the
participant pool, please visit http://rady.ucsd.edu/behavioral-lab/. NOTE: I have nothing to do with
the lab, so any questions or issues need to be resolved directly with the Rady Behavioral Lab!

Attendance and Participation (15%)

The success of this class is heavily dependent on our ability to create an atmosphere conducive to
collaborative and participant centered learning. It is my belief that each of you has the intellect and life
experiences that could be of value to others in the class. You need, therefore, to take responsibility to
share your ideas and insights and help move the class forward in a substantial and meaningful way. You
also need to be able to listen, respond and where appropriate, challenge ideas and views being proffered
by other class members. Attendance will be taken at each class period and it is your responsibility to be
present and to engage in the discussion.

Homework assignments will be due approximately every week during the term (including Presentation
1, Presentation 2 and the Final Presentation). These homework assignments are practical exercises that
demonstrate your proficiency with the concepts and theories being presented in lecture. If you miss the
lecture, you may miss out on essential information necessary to complete the homework. The
approximate schedule for these exercises follows. For specific class dates please see the Course
Calendar.
Week 2 – Market Selection Using CAGE Framework
Week 3 – ADDING Value at CEMEX
Week 4 – Domestic One-Page Strategic Plan (OPSP)
Week 5 – AAA Strategy Analysis
Week 6 – Team Business Model
Week 7 – Presentation #1 (see TEAM PROJECT below)
Week 9 – Presentation #2
Week 10 – Final Presentation; International OPSP

TEAM PROJECT (40%)

You will work within the same team that you have formed to participate in the Markstrat simulation (see
below) to complete four assignments that will be combined and presented during the final class period.

Each section of the TEAM PROJECT (Presentation 1, Presentation 2, Final Presentation & International
OPSP) is worth 10% of your final grade. The details for these presentations are included at the end of this
syllabus. Presentation 1 is due to be submitted as a PowerPoint deck only in Week 7 and
Presentation 2 is due to be submitted as a PowerPoint deck in Week 9. The International One-Page
Strategic Plan is due during Week 10. The Final Presentation is an actual oral team presentation you
and your Markstrat team deliver on the day designated for your final presentation (which will be either the
last class period or the day of the Final Exam in the Schedule of Classes).

MARKSTRAT SIMULATION (20%)

Markstrat is the premier marketing strategy simulation available today. It is a simulation of a fictitious
industry similar, in some respects, to the consumer electronics or durable goods industry. It is designed to
allow you to apply and test strategy concepts in a dynamic, competitive environment. In this game you will
manage a company in direct competition with several other student teams. Each team will be formed
randomly. You will conduct customer and competitive analysis and strategically determine the target
market segments and product positioning for the products in your product line. Additional decisions
include product development endeavors and expenditures, advertising and advertising research
expenditures, forecasting, production ordering, and sales force size and deployment.
You will need to become familiar with the cloud-based simulation software immediately following the first
class session.

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Go online to http://shop.stratxsimulations.com to register for the course as a Participant by purchasing
your Participant Activation Key (PAK). At the home page enter the File Number for your appropriate
section:
A00: P5A96FB3
B00: P5A96FAE

(To allow emails please put emt.stratxsimulations.net on your safe list)

1. Go to shop.stratxsimulations.com
2. Enter the file number listed above
3. Tick that box indicating you are not a robot and click ENTER
4. Complete the order process
Once you have purchased your PAK you are registered with Markstrat and can be assigned to a team.
Once you have formed a team and sent the names to the Professor and TA, you may open the practice
data and browse to become familiar with the program. The simulation software is web-based, so you can
access Markstrat anywhere you have access to the internet.

Please make sure you sign up for the correct section of MGT 112 Global Business Strategy (there are
multiple sections of MGT 112 in the system). This is an Internet-based simulation that will work on any
computer (Windows or Mac) with a browser. There is NO software to download (only the user
documentation PDF files). Feel free to email Dr. Fuller (rlfuller@ucsd.edu) if you run into difficulties.

Quizzes (10%)
There will be a total of four (4) quizzes over the lecture materials, readings in the text, and Markstrat
concepts. These will be 10-question true/false and multiple-choice learning verification exercises. You
will need a Scantron form and writing implement for each of these quizzes.

Peer Evaluation (10%)

Since so much of our course is based on teamwork, you will have the opportunity to evaluate each of
your team mates regarding participation on your team. The average of the total scores you receive will
determine ten percent (10%) of your final grade. This means it is imperative that you participate as a
good team member. The Peer Evaluation will be due during Week 10.

GRADING

Assignments Points [or percentage]

Rady Behavioral Lab Participation 5
Homework 15
Team Project 40 (see breakdown)
Markstrat Simulation 20
Quizzes 10
Peer Evaluation 10
Total 100

The Markstrat portion of your grade is determined by the closing Markstrat Stock Price Index.
Members of the teams managing the firm(s) that have the highest stock price(s) at the conclusion of the
simulation will receive a score of 20 points. Grading is based on a statistical model built in to the Markstrat
simulation that normalizes the SPI of all teams and calculates a mean and standard deviation for that
normalized data. Points are automatically assigned by the software based on where the team’s SPI falls
on the calculated normal distribution.

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COURSE POLICIES

Attendance is required. Absence for a valid reason must be brought to the attention of the instructor in
advance. Absences from class will have a seriously negative impact your class participation grade unless
you complete an alternative assignment given by the instructor, IN ADVANCE.

This class has a strict ‘no-electronics-during-lecture’ policy. Cognitive research has shown that the human
brain CANNOT, in reality, multi-task. What you are doing is attention switching or “time slicing.” If you
are doing that, you are not engaged in the lecture and subsequent discussion. Also, the research
indicates that you learn less taking notes by typing than you do handwriting the notes, even if you never
refer to them again (it’s a kinesthetic learning thing). Therefore, you will be required to turn off your
laptop, tablet, phone, headphones, earbuds, etc. during lecture time in the classroom. If you
cannot do this, you will be better served to find another section of MGT 112 taught by a different
instructor.

ACADEMIC INTEGRITY

Integrity of scholarship is essential for an academic community. As members of the Rady School, we
pledge ourselves to uphold the highest ethical standards. The University expects that both faculty and
students will honor this principle and in so doing protect the validity of University intellectual work. For
students, this means that all academic work will be done by the individual to whom it is assigned, without
unauthorized aid of any kind.

The complete UCSD Policy on Integrity of Scholarship can be viewed at:

http://senate.ucsd.edu/Operating-Procedures/Senate-Manual/Appendices/2

STUDENTS WITH DISABILITIES

A student who has a disability or special need and requires an accommodation in order to have equal
access to the classroom must register with the Office for Students with Disabilities (OSD). The OSD will
determine what accommodations may be made and provide the necessary documentation to present to
the faculty member.

The student must present the OSD letter of certification and OSD accommodation recommendation to the
appropriate faculty member in order to initiate the request for accommodation in classes, examinations, or
other academic program activities. No accommodations can be implemented retroactively.

Please visit the http://disabilities.ucsd.edu/about/index.html for further information or contact the Office for
Students with Disabilities at (858) 534-4382 or osd@ucsd.edu.

SEE COURSE CALENDAR DOCUMENT FOR SPECIFIC MGT 112 ASSIGNMENT

DUE DATES

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TEAM PRESENTATIONS

Team Presentation 1 (10% of final grade) submitted as a PowerPoint deck on May 14.
This is a business presentation, but you can think of it as a term paper. Using the CAGE Framework and
the ADDING Value Scorecard that we discussed in class as a basis, Presentation 1 will show which of
your Markstrat products, either a Sonite or Vodite, is the best candidate for introducing to a new
international market outside of Markstrat World and identify which real world country would be
the best target. Note that the country chosen cannot be either the US, Canada, or Mexico.
Presentation 1 is limited to not more than 15 slides in the deck, including the Title and Summary slides.
The content of each slide should be described and fully explained in the Notes view, just like you were
using it as speaker’s notes to make an oral presentation. The notes should be self-explanatory for a
non-participant to understand them.

Team Presentation 2 (10% of final grade) submitted as a PowerPoint deck on May 23.
Presentation 2 is a continuation of Presentation 1 and will present the proposed market entry strategy
and business model for the new international venture described in the first presentation (candidate
product and targeted country). This should include an overview of any partners that will be required for
your new international venture.
Presentation 2 is limited to not more than 15 slides in the deck, including the Title and Summary slides.
The content of each slide should be described and fully explained in the Notes view, just like you were
using it as speaker’s notes to actually make an oral presentation. The notes should be self-
explanatory for a non-participant to understand them.

International One-Page Strategic Plan (OPSP) (10% of final grade) is an international version of the
Domestic OPSP created for your Markstrat company in Week 4.

Final Team Presentation (10% of final grade) is an actual oral presentation your team will deliver on
the day designated for your final presentation.

Assume your team has been promoted to the Corporate Headquarters, and you are briefing your
incoming replacement Management Team in the Markstrat World Division.

Your team will have a maximum of 10 minutes to present the following topics:

1. International “Driving Ambition”

 State the company’s desired goal for entering the international market (stated in
SMART goal format)
 May use multiple points if necessary
2. Today’s Situation
 Summary of the current Markstrat situation
 Use brief bullets, discuss details verbally
 Top business strengths
 Top business obstacles
3. How Did We Get Here?
 Domestic business-level strategy used
o Domestic business model used to implement strategy
 Changes to domestic strategy during the last 10 years
o Based on changes in competition, target market, resources available, etc.
 Any other relevant historical information
o Key inflection points
 Original assumptions made that are no longer valid, or that proved false
4. International Sandbox

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  State the chosen international market (country or region)
 Identify international market segment (relate to a Markstrat segment)
 List advantages & disadvantages of market and segment
o Top one of 3 opportunities
o Top one of 3 business threats
5. Cooperative Strategy
 Mode of market entry
 Collaboration partner
o Role of partner
o Structure of the partnership
o ‘WIIFM’ (What’s In It For Me) if I’m the partner
6. Recommended Strategy
 Recommend one of the strategies discussed in class to move forward in the chosen
international market
o Describe how the strategy will be implemented (new business model/changes
to the domestic business model)
 Summarize the expected results if things go as proposed
7. Lessons Learned
 Advice to the incoming management team
 What you wish you knew when you started

Note: Each member of the team MUST participate in the Final Team Presentation. PowerPoint decks for
the Final Presentation DO NOT need to be turned in – the grade will be based on the actual presentation
given in class. A grading guide (rubric) will be provided ahead of time so you will know how the
presentation will be graded.