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International Business Strategy

MGT3140

Module Handbook
MGT3140
INTERNATIONAL BUSINESS STRATEGY
Autumn Term 2016/2017
24 Weeks

Module Leader: Dr Shasha Zhao


(Office hours: Tuesday 2.30-3.30pm & Wednesday 11-12noon, during term times)
(Email: s.zhao@mdx.ac.uk)
(Office location: W165)

Academic Support for MGT3140


Subject Librarian for literature and data resources (Thomas Cullis via t.p.cullis@mdx.ac.uk)
Learning Enhancement Team for academic writing, presentation, and exam prep support
(Luciano Celini via let@mdx.ac.uk)
Progression and Support Team for support on personal matters affecting your study (Sam,
Joanna, and Russell via 0208 4114423) or appointment booking via unihub link.

Department of International Management and Innovation (IMI)

International Business Strategy


MGT3140

Disclaimer (Part of MGT3140 Module Handbook)

This handbook can also be accessed via UniHub at: http://mdx1sandbox.mrooms.net/


This handbook is available in large print format. If you would like a large print
copy please contact or you have other requirements for the handbook, please
contact Disability Support Officer at disability@mdx.ac.uk, 020 8411 4945.
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include details of your disability.
The material in this handbook is as accurate as possible at the date of
production however you will be informed of any major changes in a timely
manner.
Your module handbook should be read and used alongside your programme
handbook and the information available to all students on UniHub including
the Academic Regulations and Student Charter.

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MGT3140

Welcome Message from the Module Leader

Welcome to the International Business Strategy Module. This is a level 3 compulsory module
for students on BA Business Administration, BA Business Studies, and BA International
Business. This handbook contains key information you need to know about the learning of
this module. You must read through it carefully and fully understand how this module is
organised, delivered, and assessed.
International Business Strategy is a strategy module focusing on organisations with activities
across national borders. As more firms nowadays are engaged in international business and
as they are playing an increasingly role in national and international economies,
understanding international business and its management has become imperative for all
business students who wish to prepare themselves for the future challenges.
International Business Strategy is an interdisciplinary subject, drawing knowledge from
different fields including economics, strategic management, sociology, marketing, and
human resource management, many of which you already have a prior knowledge. The
module will provide you with an opportunity to integrate what you have learned from other
modules and apply them to issues and problems faced by international business.
This module is theoretical as well as practical oriented, aiming to improve your analytical,
problem-solving, and critical thinking skills, and to facilitate the development of your
employability once graduate. To achieve this, case study method will be used as a major
learning tool. There are a number of carefully selected cases for the module in order to
facilitate learning of both theoretical and applied knowledge. These case companies come
from a variety of contexts such as developed and emerging economies, manufacturing and
service sectors, small, medium, and large sizes. By doing so, the module intends to expose
you to both general and specific issues faced by different types of MNEs.
Managing international business is highly complicated therefore to understand some of the
complexity. The module requires students to possess independent study capability including
self-motivated reading and learning. Apart from a 1.5hour lecture each week, you are
expected to spend many learning hours outside of class for this module. However, you will
not be left alone as guidance and support will be available.
Finally, I hope you will enjoy this module and achieve success.

Module leader: Dr Shasha Zhao


Sept. 2016

International Business Strategy


MGT3140

1. Module Timetable Overview

LECTURE

DAY
Tuesdays

TIME
3.30PM

ROOM
TBC

TUTOR
Shasha Zhao

Seminar 1
Seminar 2

TBC
Wednesday

TBC
3.00-4.00PM

TBC
CG16

Shasha Zhao
Shasha Zhao

Please note every effort has been made to ensure that the information in the module
timetable is correct at the time of printing in Sept 2016. However, unexpected situation
does occur occasionally and the timetable may be adjusted accordingly. Therefore, it is
advised that you check online and university email account to ensure you are aware of any
changes being made.
2. Learning Framework: Term Dates (2016/2017)
Autumn Term
03/10/2016 16/12/2016 (returning students)
Christmas Vacation
17/12/2016 08/01/2017
Winter Term
09/01/2017 09/04/2017
Easter Vacation
10/04/2017 23/04/2017
Exam Period
24/04/2017 16/05/2017
Note: Details about term dates can be found via UniHub
3. Aims
This module aims to introduce students to the main concepts, framework, analytical tools
and theoretical frameworks in the field of international business strategy. The module is
interdisciplinary in nature, bringing together and integrating knowledge and skills that
students have learned previously, and applying them to the issues that typically faced by
organizations when they operate internationally. It intends to develop students awareness
of the differences between international and domestic business, and improve their
analytical, critical and problem-solving abilities.
4. Learning Objectives
4.1 Knowledge
Bringing together the knowledge that you learned from other business modules, this
module intends to provide you with an integrated view of international business strategy. At
the end of this module the successful student should be able to:
Recognise and explain the reasons why companies become international
Appreciate the strategic framework for analysing and developing international
business strategy
Analyse the interactions between international business and its environment

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Critically evaluate different views with regard to the corporate social responsibility of
international business
Assess the choices of location and the means for international market entry
Identify and analyse key issues faced by various business functions and types of firms
when they intend to compete internationally.

4.2 Skills
Most skills that you learn from this module are transferable, which will not only help you
improve your study performance but also enhance your competitiveness in your later career.
At the end of this module, the successful student should be able to demonstrate the ability:
to assess the environment in which an international business operates or will
operate in
to select appropriate methods for internationalization
to identify and analyse data for relevant decisions
to present and communicate the results of research and analysis
to work effectively in a team
to apply IT skills
5. Teaching and Learning Strategy
The module will be delivered by a combination of various methods to ensure the attainment
of the learning outcomes of the module:
Lecture will be used to introduce new topic and offer guidance for further selfdirected study.
Seminar will provide opportunities for students to learn about various real examples
presented by peer students as well as presenting a real case study themselves
Case study is a means to stimulate thinking, to exercise situation analysis and
develop problem solving skills.
Independent learning is important for this module. While guidance will be provided
by lecture and reading list, great emphasis will be placed on the independent
research and studies which will consolidate and develop students knowledge.
Other methods such as video examples and guest speakers are also used to enhance
students learning experience.
5.1 Lecture
The 1.5 hour lecture is delivered on a weekly basis throughout the academic year during
which time new topics relating to International Business Strategy will be introduced.
However, the lectures are only intended to highlight the main areas of the subject,
imparting knowledge and skills, and directing you in your subsequent reading and research,
rather than providing all solutions. To learn this module well, much depends on your own
reading, research, completion of exercises, group discussions, and independent thinking.
Attendance record may be kept.
5.2 Seminar
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There is a weekly one-hour seminar, starting from the second week of the first term.
Seminar provides you with an opportunity to discuss various module points and present a
case study of your choice with your group members and learning from others.
As this course is a broad introduction of a rich subject, how much you learn depends largely
on your own participation in the process of readings, seminar discussion, and group
activities. It is imperative to attend all seminars. It is no point just physically attending the
seminar, your participation and contribution to the discussions is essential. All students are
expected to actively participate in seminar discussions and an attendance record will be
kept using new online attendance monitoring system.
5.3 Group Presentation
The module intends to help you to enhance presentation, group working, and case study
skills. At the start of Term 1 and 2, students must form their own groups of 5 in order to
prepare for group presentation. You will need to make the effort to initiate the group
formation yourselves. This is to encourage commitment and responsibility. As part of the
requirement, visual aids are compulsory and submission of a hardcopy of your presentation
and the case summary at the start of your presentations is essential (details are in the
presentation briefing document which can be found online on the module site). Hence, early
preparation is important. As a group, you will also need to register your case choice on the
module site to avoid duplication with other groups.

Keep a Group Meeting Log


Despite many benefits, group work can cause great stress if not managed well, which, in
turn, affects the performance of each group member. To prevent the problem from
happening, each group is encouraged to keep a meeting log, recording the attendance,
agenda, etc.

As the group presentations are summatively assessed, it is in every members interest to


make the team work effectively. It should be noted that group work does not mean you can
completely rely on other members of the group. Independent thinking and research is
necessary.
5.4 Independent Learning

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It is hoped that through this module, you will improve your independent learning capability,
i.e. under the guidance; you will learn to develop an angle of your own. Guidance and
support will be available to help you to become a more independent learner.
5.5 Case Studies
Case study method is widely used in this module as a means of applying learnt knowledge to
the real world. They are chosen to consolidate your learning by providing an opportunity to
think about issues in a real context and enabling you to exercise problem solving, decisionmaking, and critical analysis skills. Moreover, case studies are also intended to stimulate
discussion among the class.
Given the usefulness of the case studies, we will use it as a major teaching and learning tool.
However, in many business case studies, there is often no clear-cut answer and students
may suggest different options to the same problem. As generating more options,
stimulating discussion, and applying theory to practice are the ultimate purposes of the case
study method, students therefore should not attempt to dominate the discussions, but
listen to other points of view and offer positive and constructive feedback.
In conducting case studies, some common problems should be avoided:
make your own assumptions about the conditions and outcomes;
too general without linking to the case situation;
assume there is a standard or only answer for each issue/question.
5.6 Assessment Surgeries
There are a number of surgeries scheduled throughout the year (see Timetable). They are
intended to provide guidance and advice in relation to the individual coursework, group
presentations, and end-of-year exam. You can also take the opportunity of tutors office
hours to ask any questions you may have. These surgeries intend to give you more personal
help with your coursework, presentation preparation, and exam revision. If outside office
hours, you can email the tutor for an appointment or email your queries and replies will be
sent to you at the earliest available time.
5.7 Guest Speakers
As international Business Strategy has strong practical element embedded, there may be
guest speakers from industries and/or specialists from relevant fields to give lectures on
specific topics during with the aim to provide you with some insights into how international
firms operate in the real world. However, confirmation of guest speakers will be available
on a later date depending on their availability. Further details will be announced in due
course.
5.8 Managing Your Time

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MGT3140

Due to the nature of this module, extensive reading and case studies are necessary to
achieve the learning outcomes. Thus, you are suggested to:
Follow up on each weeks learning and avoid the last minute rush.
Prepare before the lecture and seminar in order to maximise the benefit from these
learning opportunities.
Make the best use of your peers by forming small study groups to support each
others learning in a constructive way.
Prioritise your time appropriately.
6. International Business and Employability Skill Development
Your employability is our priority. In this module, you are given plenty of opportunity to
develop and improve your employability skills which are crucial for a career in international
business.
Develop International Business and Employability Skills What and How?
International
Business and
Group
Individual
Final
Employability Skills
Presentation
Essay
Exam
Verbal
communication
Written
communication
Planning and
organising (time
and resource
management)
Leadership and
motivation
Cooperation and
coordination
Initiative and
independent
learning
Investigation and
analysis
Cultural awareness
and adaptability
Negotiation and
decision making

X
X

Studies have showed that employers are looking for a set of skills/qualities/attributes in
potential employees when recruiting. While some of these skills/attributes will be trained by
employer after recruitment, others must have before recruitment. Our focus is on the later.

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We have incorporated the development of these skills in the module, and table below
shows what skills we intend to develop, and where and how these skills will be assessed.
7. Classroom Orders
Sometimes, students disrupt lectures and classes by arriving late or/and chatting, which is
an issue frequently raised by student representatives on the board of study. To ensure a
good learning environment for all, punctuality in lectures and seminars is required for each
student. Late arrivals will be only allowed to enter during intervals. You may leave early only
with advance permission.
To show respect and courtesy to fellow students and tutor, please refrain from talking
during the lecture. Owners of mobile phones are required to turn them off while the lecture
is in progress.
8. Communication with Tutor
You can see tutors during their office hours without an appointment. In the case of urgency,
meetings can be arranged via email. We welcome any comments and suggestions regarding
the improvement of this module, please first feedback to the module leader.
9. Assessment
9.1 Assessment Scheme
This module will be assessed by the following components:
One individual essay
40% (due on 05/12/2016 by 9pm)
Two group presentations
30% (one per term, during seminars)
One two-hour written exam
30% (during exam period in 2017)
These assessments will be spread over the whole academic year to avoid extra burdens on
students, and to achieve a good balance between individual and group works.
Please note: If students fail the module (fail grades are 17, 18, 19, 20 with an overall mark
between 0% and 39%) they are eligible for a re-sit. Students will be re-examined in the
assessed component(s) which they have failed. Information on what element to re-sit will
be made available on the modules my unihub page approximately two weeks after the
module results have been published on my unihub. Students need to achieve a minimum
of overall grade of 16 to pass the module.
9.2 Coursework Submission (40%)
You must submit your individual essay via Moodle (under Turinitin Assignment) AND a
hard copy to Unihelp desk, and NOT to the tutor. Marking will only be done to a students
essay when BOTH a hard copy and an electronic copy are submitted. Submissions via other
means will not be graded and therefore no mark will be given. Additional materials
regarding this assessment will be made available before Week 1 via Moodle.
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You should present your essay professionally by following the instructions below:
a) word processed on A4 paper with a font size of 12
b) word document ONLY (no PDFs or other formats are allowed)
c) page margin of 2.5cm on both sides
d) use 2.0 line space
e) pages are numbered
f) label all charts, tables, graphs, diagrams, etc
g) use Harvard referencing style ONLY
h) meet the word count requirement of no fewer than 1,600 words and no more than
2,400 words
When submitting the coursework, you must:
a) submit via Unihelp desk AND Turnitin by 9PM on the day
b) make sure your cover page contains all relevant information:
a. Your university-registered full name
b. Your student number
c. The module title and code
d. Seminar tutors name
e. The essay title in full
f. Word count
If you have extenuating circumstance and anticipate a late submission of coursework, you
need to submit relevant form to the Unihelp desk.

Coursework Submission
The deadline for individual essay submission is 05/12/2016, by 9PM. No
late submission will be accepted unless extenuating circumstances are met.
If you miss the deadline without good reasons, a grade 19 will be given,
which means you have not completed all of the assessment required for this
module. The minimum pass grade (16) is the maximum that may be gained
if the module is subsequently passed.
Please note: make sure a backup copy is also made available in case of PC
or network failure occurs.

You may also apply for a deferral through the Unihelp desk in the Library where you must
have documented good cause to defer, usually on medical grounds only. Please note that
deferral does not mean handing in the current work later on, but means taking another
assessment. Students must apply to the assessment manager in writing, submitting
supporting documentation. The application for deferral must be submitted without a delay.
The applications that have been unjustifiably delayed will not be processed. To help the
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module team keep track of deferrals, the student should inform the module leader of
his/her intentions to apply for deferral before doing so. Deferral means that you have the
opportunity to undertake and submit your assessment (please note that this can be a
different assessment) at a later date, decided between the School and the Module Leader. If
a student receives a deferral, they should immediately forward the approval email to the
module leader to discuss the next possible date for the student to undertake the missed
assessment. This arrangement is intended to help students to complete the module within
the schedule. Please note that self-deferral is not allowed in the Business School.
9.3 Group Presentation (30%)
Group presentations takes place during allocated seminar slots (see Schedule for details).
The exact date for each groups presentation will be confirmed in advance during seminars.
Therefore, it is imperative that you attend all seminars as required.
One group presentation per student is required for each term and a total of two
presentations per student are required for the module. Each group should come to the
seminar prepared and function as an integrated group. Each student is expected to present
in a clear and logical manner. You do not have to dress formally but your presentation style
must be formal. For each oral presentation, visual aids are compulsory. Each presentation
must not exceed 15 minutes and each group member should be given an equal workload.
Please submit your printed slides and case summary to the seminar tutor at the beginning
of YOUR allocated presentation slot. You also must prepare copies of your case summary
to be distributed to the rest of the seminar group.
Please note: each presentation will be assessed on a group basis by peers and the seminar
tutor though feedback is available at both the group and individual level. Marks will only be
given to the members who present. Missing presentation by individual members without
having extenuating circumstances will not be given any marks this does not affect the
marks of other members who presented. Additional materials regarding this assessment will
be made available before Week 1 via Moodle.
9.4 Written Exam (30%)
The final exam will take place after Term 2. The two-hour closed-book examination
requires students to answer 2 out of 4 essay-type questions relating to a seen case.
Students can choose ANY TWO of the four questions to answer.
Please note: mock exams are scheduled throughout the module and therefore, students
should take the opportunity to better prepare themselves for the final exam. These mock
exams will be formatively assessed whereby feedback and advice are available.

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Details regarding the exam will be released in due course. All the key materials covered in
lectures of Term 1 and 2 will be examinable.
9.5 Attendance Requirement
A minimum of 75% attendance of weekly sessions is required, and attendance registers are
kept. If you do not achieve the learning outcome of the module as a result of failure to
attend the minimum number of sessions, you will be given a 19 grade (See university
grading).
Although you are encouraged to attend all sessions, understandably, some occasional
absences may occur. If you know you are going to be away for a seminar, do let your tutor
know beforehand. If you have a problem which is going to interfere with your regular
attendance, you must speak to Progression and Support team at the business school (see
Unihub for their contact details).
9.6 University Grading System [Grading Scheme]
The module follows the Universitys grading system, specifically the Business &
Management conversion table. A summary is provided below:
Grade
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Percentages
90
80
71

100
89
79
70

67
64
61

69
66
63
60

57
54
51

59
56
53
50

47
44
41

49
46
43
40

35
39
30
34
0
29
Fail, incorporating failure to participate in
assessment necessary to achieve all Learning
Outcomes. Compensation not allowed.

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Please note: all assessment components will be marked as percentages. At the end of the
year, they will then be used to calculate your weighted average percentage score, which will
then be converted to Universitys grading scale using the conversion table above to work
out your final grade for this module.
Specific marking criteria and feedback sheets for all assessments will be made available to
students in advance of deadlines. They will be available on Moodle.
9.7 University Regulations
9.7.1 Plagiarism
Plagiarism is one specific form of cheating. It is typically discovered in coursework or
laboratory assignments that are required to be completed by reliance on your own
individual effort.
It is interesting to note that one dictionary defines a plagiarist as a kind of thief: one who
steals the thoughts or writings of others and gives them out as [his/her] own. When such
theft is additionally used to gain academic credit to which you are not entitled a further
level of dishonesty is clearly present that makes the original act on your part even worse.
The University Regulation Section F clearly sets out the Universitys understanding of
plagiarism and the regulations by which you as a student of the University are bound.
The key University regulation is F2.3 which states that The presentation by the student as
their own work of a body of material (written, visual or oral) which is wholly or partially the
work of another, either in concept or expression, or which is a direct copy:
Note: The work presented for assessment must be the candidates own, or the work of a
project group as requested by the tutor. Plagiarism is the representation of another
persons published or unpublished work as the candidates own by unacknowledged
quotation. It is not an offence if the material is acknowledged by the candidate as the work
of another through the accurate use of quotation marks and the provision of detailed
references and a full bibliography, although the Assessment Board will not expect work to
rely heavily on direct quotations.
In addition, the University Regulations sets out the process for investigating allegations of
plagiarism and describes the penalties. If you are found guilty, the repercussions are very
serious indeed.
You should take steps, therefore, to understand what plagiarism is, how it can be identified
and how you can avoid committing it; perhaps most importantly, you should reflect and
come to understand why it is to your enormous advantage never to plagiarise because it is
in effect cheating yourself (and indeed your fellow students).
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Full details on the Infringement of assessment regulations - academic misconduct, can be


found in the University Regulations - Section F.
9.7.2

Academic Dishonesty

Taking unfair advantage in assessment is considered a serious offence by the university


which will take action against any student who contravenes the regulation through
negligence, foolishness or deliberate intent.
Academic dishonesty is a corrosive force in the academic life of the university; it jeopardises
the quality of education and devalues the degrees and awards of the University.
The full regulations on academic dishonesty are given in the University Regulations, Section
F Infringement of assessment regulations - academic misconduct.
9.7.3 Appeals
An appeal is a request from a student that a decision of an Assessment Board or Campus
Progression Committee should be reviewed because it is believed that an injustice has
occurred. There is no right of appeal against academic judgment. Students wishing to appeal
against a decision of an Assessment Board should refer to the University Guide and
Regulations section G on Appeal Regulations and Procedures.
10. Additional Learning Support
Throughout the semester, your tutors will work closely with you and offer necessarily
learning supports and guidance. In addition to the seminar, surgery, office houses and other
means of direct contact with the tutors, you may find other means and sources of learning
support useful, particularly the university's learning support facilities and the wide range of
internet resources. Listed below are some of the sources of support that you may find useful.
Learner Enhancement Team (LET) offers guidance in essay writing, other academic tasks and
English language skills. Their services are not only useful for international students who
want to improve their English language ability but also for anyone who wants to improve
study skills. Detailed information can be found on its website:
http://unihub.mdx.ac.uk/your-study/learning-enhancement-team
For students with dyslexia and need special support, supporting information can be found in:
http://unihub.mdx.ac.uk/support/index.aspx.
Students who are looking for numeracy support could refer to website:
http://unihub.mdx.ac.uk/study/ldu/numeracy/index.aspx
For students who need help in preparing essay, you may refer to:
http://www.mdx.ac.uk/www/study/gloess.htm
http://unihub.mdx.ac.uk/study/ldu/awl/AWL_MUBS/index.aspx

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Students seeking support on the correct ways of referencing and quotation, you may find
relevant information from the following web sites:
http://libguides.mdx.ac.uk/plagiarismreferencing
http://www.lr.mdx.ac.uk/Helpsheets/Study%20Skills/HSS.pdf
For information on the individual country, the World Fact Book is a useful source, which you
can find at: http://www.odci.gov/cia/publications/factbook/index.html
(A brief introduction of each country listed. Update every year).
Each year the United Nations Conference on Trade and Development (UNCTAD) publishes
its World Investment Report. Highlights are available from its web site:
http://www.unctad.org
In addition, World Trade Organization (WTO), World Bank and International Monetary Fund
(IMF) all provide useful information on the international trade, foreign direct investment
and economic development in their web sites:
http://www.wto.org
http://www.imf.org
http://www.worldbank.org/data
11. Feedback and Advice
Getting feedback is a good way of learning and development, so you should take any chance
to gain feedback and advice. There are a number of ways that feedback and advice on
learning and assessment will be provided, but they tend to be general in order to leave
enough room for your creative thinking and independent learning. Specifically,

You will receive an immediate oral feedback on your presentation during the
seminar.
You can seek advice on your draft coursework in good time before submission
deadline.
Assessment surgeries are scheduled throughout the year to offer you advice on
coursework and exam revision.
Formal feedback and provisional marks for coursework will be available within 15
working day following submissions (Please note: this excludes public holidays and
university vacation periods), and provisional presentation marks will be made
available at the end of each term.

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12. Schedule
12.1
L.W.

LECTURE
DATE

04/10/2016

11/10/2016

18/10/2016

25/10/2016

01/11/2016

08/11/2016

15/11/2016

22/11/2016

29/11/2016

10

06/12/2016

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13/12/2016

Detailed Timetable for Term 1 (Autumn 2016)


LECTURE ACTIVITY

Introduction:
Module overview,
assessments, and case study
method
Topic: What is IBS?
Topic:
MNE and Globalisation
Topic:
PESTLE in International
Business
Topic:
Competitive Diamond of
Nations
Topic:
Firm and Internationalisation:
RBV
Topic:
Firm and Internationalisation:
TCE
Topic:
Firm and Internationalisation:
OLI Framework (part I)
Assessment support (Part II):
workshop on essay writing
(with LET and Module Leader)
Topic:
SME and Internationalisation:
The Uppsala Model

Topic:
Organizing Global Value
Chains
Conclusion: Term 1
Topic:
Industry guest speaker:
International Business
Strategy in Practice
*Group feedback on essay
and presentation
performance

SEMINAR ACTIVITY
(seminar times see online)

READING
(a week in advance)

(Term 1 seminars start in LW2)

Module handbook,
Cavusgil chpt 1, Frynas &
Mellahi chpt 1

IBS case studies and presentation


group formation, scheduling &
debriefing

Cavusgil,
chapter 2 & Lasserre,
chapter 1
Cavusgil,
chapter 7-9 & Lasserre,
chapter 6
Cavusgil,
Chapter 6 & refer to
online reading list

IBS case studies and Q&A


Assessment support:
workshop on literature and database
search (in PC labs with Subject
Librarian, attendance is taken)
IBS case studies and Q&A
Assessment support:
workshop on presentation skills (with
LET, attendance is taken)

Assessment week: Group


presentations

Assessment week: Group


Presentations

Assessment support:
Pre-submission essay surgery (with
Module Leader and Subject Librarian)
Essay Submission (deadline: 9pm
Monday 05/12/2016, submitted via
Turnitin AND Unihelp Desk)
(no seminar)
*Provisional essay and presentation
grades and individual feedback

Articles refer to online


reading list
Articles refer to online
reading list

Articles refer to online


reading list

Articles refer to online


reading list

Frynas, chpt 9; Cavusgil


chpt 11

Term 1 revision

Away Task: complete


mock exam exercise 1
(see moodle)

(Any unavoidable changes to the timetable will be communicated to students in good time)

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Detailed Timetable for Term 2 (Winter 2016-2017)


L.W.

LECTURE
DATES

LECTURE ACTIVITY

12

10/01/2017

Term 2 Overview
Topic:
The Role of Headquarters

13

14

17/01/2017

24/01/2017

15

31/01/2017

16

07/02/2017

17

14/02/2017

18

21/02/2017

Topic:
The Role of Subsidiaries and
The Managerial Paradox
Topic:
Introducing Foreign Market
Entry Modes
Topic:
Global Strategic Alliances
Topic:
Global Mergers and
Acquisitions

20

07/03/2017

21

14/03/2017

Topic:
The Recent Development of
EMNEs

22

21/03/2017

Topic:
The Strategy and Structure of
EMNEs
Topic:
Future of IBS

24

04/04/2017

IBS case studies and Q&A

Conclusion: Yearly reflection &


key points
Assessment Support:
Final exam prep workshop
(with LET)

READING
(a week in advance)

Cavusgil chpt 12-13;


Lasserre chpt 2-3; and
online article

Frynas chpt 7; and


articles refer to online
reading list
Cavusgil, chpt 14-17

IBS case studies and Q&A


Assessment Support:
Exam writing techniques workshop
(with LET)
Mock exam exercise 2 How much
have you learnt!

Assessment support:
Discussion on student answers to
mock exam 2

28/02/2017

28/03/2017

Mock exam 1 taster, final exam


debriefing, and presentation
scheduling for Term 2

Employability and IBS


(Guest speaker: Ladi from Mdx
Employability Unit)
Topic:
Global Innovation and Born
Globals
Topic:
Historical Dominance of
Westernism in IBS
Topic:
The Rise of the BRICS

19

23

SEMINAR ACTIVITY

Frynas chpt 6; Lasserre


chpt 4
Lasserre, chapter 5; Hitt
chpt 7
Away Task: complete
mock exam exercise 2
(see moodle)
Revisit week 12-16
learning materials

Assessment week: Group


presentations

Lasserre, chapter 10,


Frynas & Mellahi 11, and
online article
Cavusgil chpt 12-13;
Lasserre chpt 2, 3,14

Assessment week: Group


presentations

Articles refer to online


reading list

*Group presentation provisional


grades and feedback;
* Individual student module
performance review

Articles refer to online


reading list

IBS case studies and Q&A

Rugman chpt 20-21


IBS case studies and Q&A
Lasserre chpt 16
IBS case discussions (past exam cases)
Away Task: complete
mock exam exercise 3
(see moodle)
Assessment Support:
Feedback on student mock exam
answers (with LET and Module Leader)

17

Revision of T1&2 learning


materials

International Business Strategy


MGT3140

13. Learning Materials


Essential:
Cavusgil, S.T., Ghauri, P., Knight, G., and Riesenberger, J. (2014) International
Business, Global Edition 3e, Pearson Education
Weekly compulsory reading is available on the module online reading list
Supplementary:
Daniels, JD, Radebaugh, LH, and Sullivan, D, (2012), International business:
environments and operations, 14th Edition. Pearson Education
Dicken, P, (2011), Global shift: mapping the changing contours of the world economy,
6th Edition, SAGE Publications Ltd
Frynas, J.G. and Mellahi, K. (2011) Global Strategic Management, 2nd Edition, Oxford
University Press
Lasserre, P. (2012) Global Strategic Management, 3rd, Edition, Palgrave MacMillan
Sumantra, G, and Bartlett, C, (2002), Managing across borders: the transnational
solution, 2nd Edition, Harvard Business School Press
Yip, GS , and Hult, GTM, (2012), Total global strategy, 3rd Edition, Pearson Education
Additional:
Apart from the above books, several academic and business journals and newspapers are
recommended to be consulted regularly:
Business Week
Business Horizons
Financial Times
Harvard Business Review
The Economists
The McKinsey Quarterly
International Business Review
Journal of International Business Studies
Journal of World Business
Strategic Management Journal
Academy of Management Review

18

International Business Strategy


MGT3140
Module Code

MGT3140

Module Title
Credit

International Business Strategy


30

Module Leader

Dr. Shasha Zhao

Aims
This module aims to introduce students to the main concepts, analytical tools and theoretical frameworks
in the field of international business strategy. The module is interdisciplinary in nature, bringing together
and integrating knowledge and skills that students have learned previously, and applying them to the
issues that typically faced by organizations when they operate internationally. It intends to develop
students awareness to and sensitivity of the differences between international and domestic business,
and improve their analytical, critical and problem solving abilities and enhance their employability skills.
Learning Outcomes
Knowledge: On completion of this module the successful student will be able to 1. compare and contrast pull and push factors underpinning their internationalisation process and
their relation to performance outcomes
2. apply the strategic framework for analysing and developing international business strategy and
for evaluating various options related to some key decisions of international business such as
location decision, international market entry methods, ethical approaches, etc.
3. critically evaluate the interactions between international business and its environment
4. critically analyse key issues faced by various business functions and types of firms when they
intend to compete internationally.
Skills: This module will call for the successful student to 5. assess the environment in which an international business operates or will operate in
6. identify and analyse data for relevant decisions
7. present and communicate results of research and analysis with appropriate IT skills.
8. demonstrate effective team work
Syllabus
An overview of international business and theoretical foundation of international trade and
investment
A strategic framework for international business
Understand interactions between global environment and international business
Strategy options for competition and development internationally
Ethics in international business
Develop international market entry strategy
Manage international strategic alliances and organization strategy International strategy for
operation, marketing, human resources management and finance
International strategy for small and medium sized enterprises
Learning, Teaching and Assessment Strategy
The module will be delivered by a combination of various methods to ensure the attainment of learning
outcomes of the module. Lectures will be used to introduce new topics and offer guidance for further
self-directed study. Seminars will provide opportunities for clarifying difficult points of subject, as well as
group discussion of questions and case studies. Case studies will be used as a means to stimulate thinking,
to exercise situation analysis and develop problem solving skills.
Independent learning is important for this module. While guidance will be provided by lecture and
reading list, independent research and studies is critical in consolidating and developing students
knowledge and learning capability. Other methods such as video analysis, online quizzes, and oral
presentation will also be adopted. The modules on-line environment will contain all lecture slides and

19

International Business Strategy


MGT3140
any additional learning material required for this module.
Assessment Scheme
Formative feedback will be provided at an on-going basis, in the forms of face-to-face and on-line
consultation, scheduled coursework surgery, coursework feedback, seminar questions and
answers, office-hour feedback etc.
Summative assessment consists of three components, designed to give students the best
opportunity to demonstrate an overall understanding of relevant concepts, techniques and
issues and skills developed through the study of this module.
Assessments are organised as follows:
Term 1:
i.
Individual essay (40%): The 2,000 word-limit essay requires students to select one essay question
from a choice of four. The essay requires students to critically appraise relevant international
business theory/ies by applying to one or more of case companies of their own choice. Essay
questions and marking criteria will be available in Week 1 on Moodle.
o Submission deadline: Week10, Monday 05/12/2016, 9pm.
o Assessment of Learning Outcomes of 1-4 and 5-7.
Term 1 & 2:
ii.
Two group presentations (30%): One presentation per term, each student is required to
undertake two group presentations (15% each) in total. The 15-minute group presentations
require students to form their own groups of 5 to prepare and present a case study of their
choice. Example presentation, specific marking criteria, and presentation briefing will be
available from Week 1 on Moodle.
o Submission deadline: as per when each group is scheduled to present(see Schedule)
o Assessment of Learning Outcomes of 1-4 and 5-8
Term 2:
iii.
End of year exam (30%): The two-hour closed-book examination requires students to answer 2
out of 4 essay-type questions relating to a seen case. Students can choose ANY TWO of the four
questions to answer. Further preparation advice will be given throughout the course of the year
and prior to the exam.
o Exam date and time: during exam period in 2017
o Assessment of Learning Outcomes of 1- 4 and 5-6
Assessment Weighting
70% coursework
30% examination
Learning Materials
Essential:
Cavusgil, S.T., Ghauri, P., Knight, G., and Riesenberger, J. (2014) International Business, Global Edition
3e, Pearson Education
Complementary:
Daniels, J.D., Radebaugh, L.H., and Sullivan, D. (2012) International Business: Environments and
Operations, 14th Edition. Pearson Education
Dicken, P (2011) Global Shift: Mapping the Changing Contours of the World Economy, 6thed, SAGE
Frynas, J.G. and Mellahi, K. (2011) Global Strategic Management, 2nd Edition, Oxford University Press
Lasserre, P. (2012) Global Strategic Management, 3rd, Edition, Palgrave MacMillan
Peng, M.W. (2014) Global Business, International Edition 3e, Cengage Learning
Sumantra, G, and Bartlett, C, (2002), Managing Across Borders: The Transnational Solution, 2nd
Edition, Harvard Business School Press
Yip, G.S. and Hult, G.T.M. (2012), Total Global Strategy, 3rd Edition, Pearson Education
Total Notional Learning Hours: 300

20

International Business Strategy


MGT3140

Appendix
Module Assessment Briefings (all are also available on module site)
(Essay, Presentation, and Exam)

MGT3140
International Business Strategy
Individual Essay Briefing* (40%)

Module Leader: Dr Shasha Zhao


(Email: s.zhao@mdx.ac.uk)

Submission
Deadline

DAY
05/12/2015

TIME
9PM

Means
via Turnitin AND Unihelp desk ONLY

21

International Business Strategy


MGT3140

1. Essay Requirement
Write a discursive essay addressing the key issues relevant to one of the four questions below and
draw a suitable conclusion. The essay should be approximately 2,000 words excluding all appendix
and references. Your work should appear professionally produced in terms of the quality and
currency of the data, analysis and conclusions drawn.

2. Topic Selection
You are required to select and write about one of the four essay questions given below:
1): Critically assess theories of Transaction Cost Economics and Resource Based View in terms of
their degree of usefulness in explaining firms internationalising strategies. Illustrate your answer
with reference to at least one case company of your own choice.
2): Critically discuss to what extent Porters Diamond Model is/isnt a useful concept in explaining
home and host location strategies of international companies? Illustrate your answer with reference
to at least one case company of your own choice.
3): Select at least one case company of your own choice, critically discuss your proposal regarding
what the company should do strategically in the next two, five, and ten years in order to succeed in
the global marketplace? With particularly focus on potential barriers and opportunities Discuss and
justify your argument by making reference to international business theories/models.
4) Select at least one case company of your own choice, critically appraise any pros and cons of the
companys current strategic decisions in organising their global operations and propose useful
suggestions to enhance firm performance. Illustrate your answer with reference to relevant
international organisational theories/models.

3. Submission Requirement
When submitting the coursework, you must adhere to the following items:

You must submit your individual essay via Moodle (under Turinitin Assignment) AND
one hard copy to Unihelp desk, NOT to the tutor.
Only submissions to BOTH Moodle and Unihelp on time are accepted and marked.
Submissions via other means will not be graded and therefore no mark will be given.
When submitting the coursework, you must:
c) make sure when uploading the file, it is named after your full name (surname
followed by first name, e.g. Zhao, Shasha)
d) make sure your essay cover page contains all relevant information:
1. Your university-registered full name
2. Your student number
3. The module title and code
4. Seminar tutors name
5. The essay title in full
6. Word count
You should present your essay professionally by following the instructions below:
22

International Business Strategy


MGT3140

1.
2.
3.
4.
5.
6.
7.
8.

word processed on A4 paper with a font size of 12


word document ONLY (no PDFs or other formats are allowed)
page margin of 2.5cm on both sides
use 2.0 line space
pages are numbered
label all charts, tables, graphs, diagrams, etc
use Harvard referencing style ONLY
meet the word count requirement of 2,000 (or, of no fewer than 1,600 words
and no more than 2,400 words)

Please note: it is your responsibility to make sure a backup copy is always made available in case of
PC or network failure.

4. University Policy
If you have extenuating circumstance and anticipate a late submission of coursework, you need to
submit relevant form to the Unihelp desk. If you miss the deadline without good reasons, a grade 20
(failure) will be given, which means you have not completed all of the assessment required for this
module. The minimum pass grade (16) is the maximum that may be gained if the module is
subsequently passed.
You may also apply for a deferral through the Unihelp desk in the Library where you must have
documented good cause to defer, usually on medical grounds only. Please note that deferral does
not mean handing in the current work later on, but means taking another assessment. Students
must apply to the assessment manager in writing, submitting supporting documentation. The
application for deferral must be submitted without a delay. The applications that have been
unjustifiably delayed will not be processed. To help the module team keep track of deferrals, the
student should inform the module leader of his/her intentions to apply for deferral before doing so.
Deferral means that you have the opportunity to undertake and submit your assessment (please
note that this can be a different assessment) at a later date, decided between the School and the
Module Leader. If a student receives a deferral, they should immediately forward the approval email
to the module leader to discuss the next possible date for the student to undertake the missed
assessment. This arrangement is intended to help students to complete the module within the
schedule. Please note that self-deferral is not allowed in the Business School.

5. Coursework Feedback
Informal feedback can be sought via email, office hours, and during teaching sessions. Formal
feedback and marks for individual coursework will be available within 15 working days (see Schedule)
following submissions (Please note: this excludes public holidays and school holiday periods).

23

International Business Strategy


MGT3140

MGT3140 International Business Strategy


Individual Essay (40%) Assessment Criteria
Criteria (weighting is based on
maximum 100%)
1. Precise and concise description
of the relevant theories
(including appropriate refs from
valid sources)

2.

Excellent (70%
& above)

Student ID and Name:

Very good (60%


- 69%)

Good
(50% - 59%)

Adequate
(40% - 49%)

(20%)
Application of the theories to
the question asked;
Identification of weaknesses of
the theory;
Well-justified suggestion of
alternative perspectives

(20%)
3. Detailed studies of cases
(reference to a range of up-todate relevant data both on the
businesses and their businesses
environments)

4.

5.

(20%)
A well-balanced argument
substantiated with relevant case
details (as above)
(20%)
Conclusion (to be built upon the
argument and to be logical and
appropriate to the detail of
theory and case materials)
(10%)

6.

Quality of presentation (include


use of English and overall
formatting and referencing)

(10%)
MARK (out of 100%):

First Marker Signature:

MARK (out of 40% of the module):

Second Marker Signature:


Date:

24

Fail
(Below 40%)

MGT3140 International Business Strategy - Individual Essay (40%) Assessment Criteria


Criteria and Weightings
(based on max 100%)
Precise and concise
description of the relevant
theories (including refs)
(20%)

Excellent
(70% & above)
Theories described accurately, in
detail, making reference to the
correct sources

Very good
(60% - 69%)
Theories described largely
accurately, with some errors of
understanding or lack of detail.
Correct references

Good
(50% - 59%)
Some correct elements of the
theory identified and
described. May lack detail and
contain errors.

Adequate
(40% - 49%)
Some evidence that the
theory is understood.
Lacks detail and contains
some errors.

Fail
(Below 40%)
Little or no evidence that
the theory is understood.

Application of the theories


to the question asked,
identification of
weaknesses of the theory,
suggestion of alternative
perspectives as required
(20%)
Detailed studies of cases,
reference to a range of upto-date relevant data both
on the businesses and their
businesses environments
(20%)

Theories applied accurately,


demonstrating understanding
and insight. Correct weaknesses
identified, with sensible
alternatives suggested.

Theories applied with a high


level of accuracy,
demonstrating some
understanding and insight.
Weaknesses and alternatives
identified.

Correct application of theory,


with some lack of detail or
minor inaccuracies.

Some correct application


of theory, lacking detail
and with inaccuracies.

No application of theory or
entirely incorrect
application of theory.

Detailed studies of at least two


cases,
reference to a range of upto-date relevant data both
on the businesses and their
businesses environments.

Detailed case studies of at least


two companies, including some
up-to-date, relevant
information about the business.

Presents two relevant case


studies which include some
up-to-date and relevant data
about the business or the
business environment.

Presents at least one case


study, with some
relevance and relevant
data about the business
or the business
environment.

Does not present a case


study, or presents an
entirely irrelevant case
study.

A well-balanced argument
substantiated with relevant
case details as above
(20%)
Conclusion (to be built
upon the argument and to
be logical and appropriate
to the detail of theory and
case materials).
(10%)
Quality of presentation. To
include: use of English
(syntax and spelling),
suitable referencing
(10%)

Provides a balanced argument,


showing a clear understanding of
both sides and providing
evidence for both.
Clear, well-argued conclusion
built upon the previous
arguments of the essay and
correct application of theory.

Provides two sides of an


argument, with some evidence
for both.

Engages critically with an


argument, including an
acknowledgement of
weaknesses.
Presents a clear conclusion,
which makes sense in the
context of the essay.

Some evidence of critical


analysis, showing an
understanding of at least
one argument.
Presents a sensible
conclusion, lacking
reference to the essay
and theory.

No or little attempt to
engage critically in the
issue.

Good English used throughout


with little or no spelling or
grammar mistakes. Referencing
entirely or largely accurate.

Occasional spelling or grammar


mistakes, but otherwise well
presented with largely accurate
referencing.

Some problems with language


or expression, but well
formatted. Some problems
with referencing.

A number of spelling,
grammar and/or language
problems. Some attempt
at proper referencing.

Spelling, grammar and/or


language problems make
understanding the essay
difficult. And/or complete
lack of accurate
referencing.

Clear, well-argued conclusion,


relating at least in part to the
content of the essay with some
reference to theory.

25

Conclusion lacking or
irrelevant.

Date:

Declaration of Originality for Individual Essay

I declare that no portion of this essay has been submitted in support of any other applications for
any other degrees or qualifications of this or any other university or institute of learning apart from
this one. This work is produced solely by me for the sole purpose of MGT3140 individual essay
coursework submission.

Student Name:

Student Signature (required for the hard copy submission only):

26

MGT3140
International Business Strategy
Group Presentation Briefing (30%)

Module Leader: Dr Shasha Zhao


(Email: s.zhao@mdx.ac.uk)

27

1. Presentation Requirement
As group presentations weight 30% of the overall module mark, it is therefore important
that you read and follow the instructions closely:

These are strictly 15-minute presentations done in groups of 5s on a topic of


international business (with strong reference to lecture materials) of your choice
plus short Q&A and oral feedback.
You are required to give one presentation per term which means a total of two
presentations per student are required for the year.
Each presentation given by a group weights a maximum of 15% (of the 30%
assessment weighting) and therefore, two presentations per presentation group will
make up a maximum of 30% (of the 30% assessment weighting).
Please refer to the marking criteria below for detailed info on what is to be
assessed. Your presentations will be assessed by peers and the seminar tutor
where a final grade is then identified.
No duplication of cases is allowed for the presentations. To avoid duplication, you
are required to register your case choice on the module site. You will need to do
this for both presentations (for Term 2 presentation case, you can only register from
the start of term 2, and not anytime earlier).
Presentation group formation and presentation slot allocation will be finalised
during the early seminars (please refer to the timetable in the module handbook).
Therefore, it is imperative that you attend the seminars as required. Should you
require changing the timing, you will need to discuss and swap with another group.
A copy of the presentation slides along with a short summary of the case (one page
minimum and three pages as maximum) you will be presenting must be submitted
to the seminar tutor at the time of your presentation. You are also required to
prepare additional copies of the case summary for the rest of the seminar group.
Please ensure you prepare presentation materials ahead of time and any anticipated
questions from the audience.
It is imperative that you do not miss your scheduled presentation. Any special
circumstances should be reported at the first instance to your seminar tutor, which
may allow you to re-sit following university regulations.
You are not expected to must dress formally (though you can) but you are required
to present in a professional manner (LET support will be available).
The group presentations are oral presentations where visual aids must be used.
Each group member should be allocated equal amount of workload to reflect
fairness as well as independent and group efforts.
You are required to attend the minimum number of seminars (please refer to online
timetable and module handbook for details).

28

2. Topic Selection
It is up to your groups decision on choosing a topic; however, here are some suggestions
where topics can typically cover/relate to the following broad areas:
a. Company and Country: These are presentations on some aspects of international
business strategy of a company of your choice e.g. Marks and Spencer in China or
Starbucks in UK. However, Marks and Spencer in the UK (home country) cannot
be a topic for presentation as it does not reflect the international element.
b. Country and Implication: You may choose a country as the context to discuss some
international business aspects. Topics could include Greece and the Euro
implications on international business, FDI in China, or Opening up of Vietnam
and impact on domestic and international business.
c. Institutions and country/company: Various international institutions affect
international business strategy. These include the World Bank, International
Monetary Fund, European Union, etc. You may choose an institution in isolation or in
combination with a country and/or a company to make a presentation. Thus Greece
and the Euro combines a country with an institution; Starbucks in UK combines a
company with a country.
(Please note: Two example presentations are available on Moodle for your reference but you
must NOT use any of these two cases for your presentations)
3. Assessment Criteria
All presentations will be assessed along five categories of criterion Content, Delivery,
Teamwork, Response to Queries, and Case Summary. Details of each criterion are as follows:
a) CONTENT (40%): This includes everything that appears on the case summary, slides,
and what is spoken. It is expected that the slides will be made to a high standard
(Please refer to the example presentation). We do not expect long sentences on the
slides just bullet points. Graphs, tables, figures and charts are all welcome and they
add to the quality of the presentation. What is spoken on each slide must be more
than what appears on the slide you are not expected to ONLY read what is written
on the slide. Indeed what you speak must add to what appears on the slide.
b) DELIVERY (20%): A good delivery will be smooth, confident and flawless (example
problems could include technical problems such as a U-tube video not loading). This
can be achieved by practicing the delivery several times during preparation, where
typically a good presentation is preceded by five practice sessions.
c) TEAMWORK (20%): The presentation must appear as a team work and not as two
disparate presentations somehow put together. This requires careful thought about
who will say what as well as a careful distribution of slides.

29

d) RESPONSE TO QUERY (10%): You are expected to respond knowledgably about


issues that arise from your presentation. Of course you may not know everything
about your presentation topic in which case it is a good idea to admit so -but to the
best of your ability you should try to be well informed about the chosen topic.
e) CASE SUMMARY (10%): You need to produce a written document that well
addresses the three key aspects (case topic or research problem; case background;
and case questions, as per the briefing)

Please note: feedback and marks will be released after all presentations for each term are
carried out. Presentations are assessed on a group basis whereby marks will only be given to
members who present. Missing presentation by individual members without having good
reasons will not be given any marks this does not affect the marks of other members who
presented.

30

MGT3140
International Business Strategy
Group Presentation: Written Case Summary Briefing

31

1. Written Requirement
As part of the group presentation, you are required to prepare a Written Summary of the
case company your group will be presenting on, here are the specific requirements:

It must be in the length of two-page minimum and three-page maximum


It must be prepared and submitted to your seminar tutor at the time of your
presentations along with your presentation slides. Spare copies of the case summary
must be distributed to the rest of the seminar group.
It must consist of 3 key sections: a) Case Topic or Research Problem (briefly); b)
Company or Case Background (comprehensive); and c) Case Question(s) for group
discussion (brief).*see below for an example summary (you can NOT use this case for
your presentation)
You should present your case summary professionally by following the instructions
below:
o word processed on A4 paper with a font size of 12
o page margin of 2.5cm on both sides
o use double line space
o pages are numbered
o label all charts, tables, graphs, diagrams, etc
o use Harvard referencing style ONLY
Ensure to include a cover page to the case summary which contains:
o Your university-registered full names (all members)
o Your student numbers
o The module title and code
o Seminar tutors name
o The presentation title in full
o Word count (excluding refs)
2. A Case Summary Example
Case Topic: Starbucks Intention to Internationalise

Between 1999 and 2002, the company averaged sales growth of over 25% per annum. But
the North American coffee markets were quickly reaching saturation. Howard Schultz knew
that if Starbucks was to continue to meet the market's expectations for growth, the global
marketplace would have to support it. Howard Schultz's dream was to take the concept of
the Italian espresso bar to every corner of every city block in the world. By the fall of 2002,
the Starbucks business included; retail coffee and assorted specialty items; specialty sales;
Frappuccino coffee drinks and specialty coffee ice creams sold through other retailers
globally. Although Starbucks itself made up a relatively minuscule percentage of the entire
North American coffee industry, it had sparked the expansion of coffee cafes like itself,

32

rejuvenated the traditional mass market coffee sellers, and expanded all facets of the
industry as distributed through the traditional supermarket distribution system.
Case Background: Starbucks Experience
The concept of Starbucks had evolved into its own Americanised version of a specialty
coffee provider of coffee shop services. Starbucks based its customer's retail experience on
high quality coffee, arabica bean-based coffee, but then surrounded the delivery of the
coffee with specialty services and atmosphere. Special pastries and selected music provided
an atmosphere of both warmth and comfort. Employees were trained to not only provide a
wide array of advice on coffee selection and appropriateness to potential customer needs,
but to engage the customer.
The pursuit of premium quality also drove Starbucks back up the coffee supply chain.
Coffee, although second only to petroleum in volume of global trading, was highly
fragmented. It was estimated that a full one-third of the world's coffee farms were three
acres or less in size. This typically resulted in a consolidation process which handed off
coffee from farmer to collector, collector to miller, miller to exporter or broker, and finally
to importer. In the past, the importer and brokers then sold coffee to the large massmarket coffee roasters and producers. Starbucks wished to improve the quality and integrity
of its coffee by working back up the supply chain to the actual growers. As a result,
Starbucks refined its coffee quality while effectively bypassing much of the middle market.
As Starbucks developed expertise and relationships with the coffee growers themselves, the
company worked tirelessly to increase the quality of the green coffee (unroasted beans)
purchased while taking cost out of its supply chain. This would eventually prove a point of
exposure for Starbucks politically, but also position the firm for opportunities in sustainable
economic initiatives with these growers.
Although the first Starbucks store outside the United States was opened in
Vancouver, British Columbia in 1988, this was essentially a regional expansion - from Seattle
outwards and northward in the Pacific Northwest - rather than an intended international
expansion.

Beginning in the mid-1990s, the company aggressively pursued true

international expansion. Starbucks used two basic structures for international expansion company-owned and licensing agreements - to move first across Asia (1996), the Middle
East (1998), and finally Europe (2001) and Latin America (Mexico, 2002). The company had
defied many of its critics with the growth and success of its international stores. Market
33

analysts and critics had argued that Starbucks' premium prices, paper cups, and smoke-free
cafes would not fit within traditional cultural practices in places like Tokyo and Vienna.
Starbucks' true international expansion had begun in Japan in October 1995 with the
formation of a joint venture (JV) with Sazaby, a Japanese retailer and distributor with its
own chain of Afternoon Tea stores.

Sazaby proved to be an excellent partner, with

expertise in both retail beverages and real estate. The JV had opened its first store in Ginza
in 1996 and had flourished. By 2002, it had more than 250 stores nationwide, and projected
more than 500 stores by 2003. Although average Japanese store sizes were half that of the
United States, they averaged nearly twice the sales.
With the opening of its first store in January 1999 in the World Trade Centre in
Beijing, Starbucks added the People's Republic of China to its growing list. In the next threeand-a-half years, its footprint had been expanded to 35 shops, focused in and about Beijing
and Shanghai. The reception to Starbucks in a culture grounded in tea was remarkably
successful. The company's entry into Continental Europe had been anticipated for years, but
with much trepidation.

Europe's longstanding traditions of coffee consumption and

independently owned and operated coffeehouses constituted an established market which


was not considered open to American entry. Starting in Switzerland and Austria in 2001, the
company then expanded into Spain, Germany, and Greece in 2002.
By 2001, Starbucks had implemented a multitude of programmes to pursue its
programme for corporate social responsibility (CSR) and pursue sustainable economic
development for the people in its supply chain. Although not wishing to own the supply
chain, Starbucks' strategy was a complex combination of altered business practices in
procurement, direct support to the coffee growers, and the formation of brands which
would provide conduits for consumers wishing to support CSR initiatives. Starbucks,
preferred to purchase using outright pricing, in which the price was negotiated directly with
small and medium-sized farmers, cutting out the segment of the supply chain which the
wholesalers usually occupied. In principle, a greater proportion of the price went directly to
the producers, assuring a higher return to the small farmer. In addition to the pricing
structure, Starbucks was also attempting to break from traditional market practices of
always buying in the cash market. The company was moving aggressively to purchase more
and more of its coffee under long-term contract (3 to 5 years, on average), guaranteeing
prices to growers over multiple crop years.
34

By the spring of 2003, Starbucks was operating nearly 5,700 stores in 28 countries. It
had made more than 215 million in profit on $3.29 billion in sales in 2002, and sales and
profits were both expected to grow 25% in 2003. Starbucks was one of the few companies
to continue rapid sales and earnings growth through the period of 2001-2002 and the
company was continuing to expand international operations at a breakneck pace.
3. Case Questions

What are the main reasons behind Starbucks fast internationalisation?

How can Starbucks sustain its international success in the future?

35

MGT3140 International Business Strategy


Group Presentation (15%) Assessment Criteria Term ( ) Seminar ( ) Case (
)
__________________________________________________________________________________________
Presenters (

These will be assessed along five categories of criteria Content, Delivery, Teamwork, Response to Queries
and Case Summary. Each component carries different weights. Details of each criterion are:
Marking Criteria
(based on maximum 15%)
CONTENT (5%): This includes everything that appears
on the slides and what is spoken. It is expected that the
slides will be made to a high standard. We do not expect
long paragraphs on the. Graphs, tables, figures and
charts are all welcome and they add to the quality of the
presentation-do ensure in-text refs. What is spoken on
each slide must be more than what appears on the slide
you are not expected to ONLY read what is written on
the slide. The content must be analytical (i.e. integration
of theories/models with case data to draw justified
conclusions).

DELIVERY (3%): A good delivery will be smooth,


confident and flawless (example problems could include
technical problems such as a U-tube video not loading).
This can be achieved by practicing the delivery several
times during preparation, where typically a good
presentation is preceded by five practice sessions.

TEAMWORK (3%): The presentation must appear as


a team work and not as two disparate presentations
somehow put together. This requires careful thought
about who will say what as well as a careful distribution
of slides.

RESPONSE TO QUERY (2%): You are expected to


respond knowledgably about issues that arise from your
presentation. Of course you may not know everything
about your presentation topic in which case it is a
good idea to admit so -but to the best of your ability you
should try to be well informed about the chosen topic.

CASE SUMMARY (2%):You need to produce a


professionally written document that well addresses the
three key aspects (case topic or research problem; case
background; and case questions, as per the briefing)

Mark for
Each
Component

Assessor Comments

(5% =
excellent; 1%
= extremely
poor)

(3% =
excellent; 1%
= extremely
poor)

(3% =
excellent; 1%
= extremely
poor)

(2% =
excellent; 1%
= extremely
poor)

(2% =
excellent; 1%
= extremely
poor)

Assessor (group ID):

Total Mark (out of 15%) (first marking):

Date:

Total Mark (out of 15%) (second marking):

36

MGT3140
International Business Strategy
End-of-year Examination* (30%)

Module Leader: Dr Shasha Zhao

Exam Schedule

Exam
Requirement

DAY
TBA
(During Exam Period see university exam
timetable in due course)

TIME
2 Hours

EXAM
-A Seen Case Study (released two weeks before on
module site)
-Answer Any Two of the Four Unseen Questions
(questions to be given at the exam)

WEIGHTING
50% per
question

37

ROOM
Details TBA (see
university exam
timetable in due
course)
OTHER
No minimum
word count;
Essay-type
written exam
Closed-book

1. Exam Briefing
Key points to remember:

The final exam will take place after Term 2


It is a two-hour closed-book written exam
There is no word limit as long as questions are answered
It will be a seen case study given to the students (via module site) at least two
weeks prior to the exam and students are required to select any two of the four
optional questions (each weights 50%, unseen prior the exam)
The questions will be essay-type and therefore, require students to provide their
own critical analysis and discussion - This should be done by applying theoretical
knowledge gained from the module to the exam questions.
Mock exams and exam Q&A sessions are scheduled throughout Term 1 & 2 and
therefore, students should take the opportunity to better prepare themselves for
the final exam (mock exams will not be summatively assessed but feedback and
advice are available)
All the key materials covered in lectures of Term 1 and 2 will be examinable.
Further information regarding the exam will be released in due course.

38

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