EMERGING MARKETS IN THE GLOBAL ECONOMY syllabus

MGMT S-5027: EMERGING MARKETS IN THE GLOBAL ECONOMY3-week Session I Summer 2021 Harvard Summer School Dr.. COURSE BACKGROUND AND LEARNING OBJECTIVES This course examines the emerging mar

MGMT S-5027: EMERGING MARKETS IN THE GLOBAL ECONOMY

3-week Session I Summer 2021 Harvard Summer School

Dr Mohsin Habib Class: Online (live) Web Conf, M-Th noon-3pm Phone: 617-287-7871 Office Hours: After class and by appt

E-mail: mohsin.habib@umb.edu

I COURSE BACKGROUND AND LEARNING OBJECTIVES

This course examines the emerging markets in the global economy Globalization offers

emerging countries the opportunity for economic development By participating in the

international arena, emerging countries increase their chances of raising wages and incomes, accumulating wealth, and reducing poverty These countries also provide opportunities for companies, mostly from the developed economies, to extend their markets The significance of the emerging economies in the global economy is on the rise These countries collectively represent a sizable market and have continued to increase its interaction with the more developed economies For students, it is imperative to understand what roles these economies play and how

it shapes the nature of international business This course will help you to –

Study the institutions and macro policy issues of emerging markets

Explore the differences in the context and the role of various actors

Analyze opportunities presented in emerging markets

Understand the challenges and responsibilities of operating in emerging markets

Evaluate local and global competition in emerging markets

Analyze the strategies of firms dealing with emerging markets

At a more fundamental level, the assigned cases, presentation, and the term paper for the course will develop your ability to analyze and conduct research In addition, the requirements will provide opportunities to enhance your writing skills

II COURSE FORMAT

This is an Online (live) Web Conference course that utilizes Zoom Video Conferencing

The content of the course will be conveyed through a mix of lectures, discussions, and cases It

is your responsibility to attend all class sessions and to read all the assigned readings beforehand The class will serve to structure, discuss, and summarize the material You should be prepared to discuss the assigned cases

III COURSE MATERIALS

You will buy a set of cases and articles from the Harvard Business Publishing website Use the following link to make the purchase –

https://hbsp.harvard.edu/import/823180

In addition to the above materials, publicly accessible (online) readings are noted in the syllabus

IV COURSE EVALUATION

Written Assignment:

You will submit one case write-up during the semester The cases are mentioned in the Course Schedule I suggest you pick one from the first two weeks of class There are no specific formats for the case write-up Typically, every case involves problem identification, analysis, alternative generation, and recommendation I don’t want a summary of the case Instead, carefully analyze the situation, apply relevant conceptual materials, and evaluate possible courses of action before selecting recommendations Consider the following suggestions for the case

-Read and analyze the case Take notes

Differentiate fact from opinion

Identify contradictions and issues that need to be resolved

Determine the why behind the what

Identify questions that you think are important

Look at the exhibits at the end of the case and identify the value-added they supply

Be ready not only to analyze the situation but to offer thoughtful solutions to the problems Identify different options and weigh the pros and cons of each

Integrate concepts developed in the course into your analysis

Written assignment must be typed, using a 12-pitch font, double-spacing and 1-inch margins The text portion of the report should not exceed 6 pages You can add as many exhibits at the end of the report as you want The case write-up is due on the day the case is discussed

Presentation: You will do a group presentation (2 students per group) on a topic of your choice You can pick any topic that is related to emerging markets Examples of some broad topic areas are entry strategy, barriers to entry, competitive strategy, competitive advantage, M&A, business and economic institutions, and socio-economic development Try to narrow down the topic so that in-depth analysis is possible

You need to submit a topic proposal (no more than one page) on June 24 Once approved, you will develop the presentation You should start with a description of the topic and explain its importance to emerging markets Next, present the key findings from the existing literature Then, discuss the issues, challenges and/or unanswered questions associated with this topic Finally, offer your insights and recommendations As needed, you can use examples of

companies, industries, and countries to present your arguments Alternately, you may choose a specific company, industry, or country as an example Both the generalized approach and the case study approach are fine with me

You will have 15 minutes to present This will be followed by a brief Q&A session Professional PowerPoint presentation is expected You need to provide me with a copy of the slides on the day of the presentation Session 7/8 is allocated for the presentations

Term Paper:

There is an individual term paper for this course The paper may be done on any topic mutually agreed upon with me You need to turn in a one-page proposal outlining your topic on June 28 The objective of allowing freedom in topic selection is to enable you to focus on areas directly related to your interests, within the overall objectives of the class You will likely get to identify

an important issue, choose how to tackle it, identify the information you need, and argue for your preferred solution Your topic should be specific enough that you can treat it carefully and

thoroughly; if your question is too broad, your research will not get below the superficial level All papers will have to draw on and apply concepts and lessons from throughout the course Insightful analysis and creative recommendations will carry maximum weight in grading the papers

Do original research, through the library and online sources, citing references You need to do library research using different databases, such as Business Source Premier, Expanded Academic ASAP, General Business File ASAP, and LexisNexis These resources will allow you to get more information than just doing a Google search The paper should be no longer than 10 pages (double-spaced, excluding exhibits) It is due on the last day of class (July 8)

Participation:

This class works best when everyone participates in and is well prepared for class discussion Your participation in class is expected to help both your learning and that of your peers You should attempt to participate in all sessions Effective participation is accomplished by focused and insightful comments For cases, effective participation means comments which either show how a concept is illustrated in the case or how substantive problems presented in the case can be addressed Quality, not quantity, is emphasized Be an active and courteous participant but also listen to what other students say and be ready to respond to their comments

Since you can’t participate if you aren’t there, attendance is mandatory If you need to miss a class due to illness or other unavoidable reasons, call or email me to tell me when you will miss and why Please make every effort to be on time and stay for the entire class

Student Responsibilities:

Please be aware of your responsibilities as a student See the link below –

https://summer.harvard.edu/academic-opportunities-support/policies-and-regulations/student-re-sponsibilities/

Accessibility Issues: The Summer School is committed to providing an accessible academic community The Accessibility Office offers a variety of accommodations and services to students with documented disabilities Please visit

-https://summer.harvard.edu/academic-opportunities-support/services/accessibility-services/ for more information

Academic Integrity: You are responsible for understanding Harvard Summer School policies on academic integrity (https://summer.harvard.edu/academic-opportunities-support/policies-and-regulations/student-responsibilities) and how to use sources responsibly Not knowing the rules, misunderstanding the rules, running out of time, submitting the wrong draft, or being over-whelmed with multiple demands are not acceptable excuses

To support your learning about academic citation rules, please visit the Resources to Support Academic Integrity (https://summer.harvard.edu/academic-opportunities-support/services/re-sources-to-support-academic-integrity) where you will find links to the Harvard Guide to Using Sources (https://usingsources.fas.harvard.edu/home) and two free online 15-minute tutorials to test your knowledge of academic citation policy The tutorials are anonymous open-learning tools

Grading Summary:

Case write-up 25%

Presentation 25%

Participation 20%

Term Paper 30%

COURSE SCHEDULE

6/21: Globalization and Emerging markets

Lund et al, “Globalization in transition: The future of trade and value chains.” January 2019 https://www.mckinsey.com/featured-insights/innovation-and-growth/globalization-in-transition-the-future-of-trade-and-value-chains

Bremmer, I “New rules of globalization.” Harvard Business Review, Jan-Feb 2014.

Musacchio & Werker “Mapping frontier economies.” Harvard Business Review, Dec 2016.

Woetzel, “From third world to first in class.” April 2019

https://www.mckinsey.com/mgi/overview/in-the-news/from-third-world-to-first-in-class

6/22: Emerging Markets and Institutions

Khanna & Palepu – Ch 1 (The nature of institutional voids in emerging markets)

Rodrik & Subramanian, “The Primacy of Institutions.”

https://www.imf.org/external/pubs/ft/fandd/2003/06/pdf/rodrik.pdf

Thompson, “Why Nations Fail: A summary”

https://revisesociology.com/2016/08/05/why-nations-fail-summary/

Sachs, “Government, geography, and growth.”

https://static1.squarespace.com/static/5d59c0bdfff8290001f869d1/t/

5ed7debf2bfeaf413c484244/1591205596588/Sachs+

%282012%29_Why+Nations+Fail+Review.pdf

Case: Telling the fortunes of one belt, one road (Case # HK1171)

6/23: Emerging Markets and Institutions (Cont.)

Khanna & Palepu – Ch 2 (Spotting & responding to institutional voids)

Islam, “One more time: what are institutions and how do they change?” April 2018

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3171289

Hallward-Driemeier & Pritchett, “How business is done in the developing world: Deals versus

Rules.” Journal of Economic Perspectives, 2015, 29(3) https://pubs.aeaweb.org/doi/pdfplus/

10.1257/jep.29.3.121 (Skim through)

The following sections from the Global Corruption Report 2009 published by Transparency International http://www.transparency.org/en/publications/global-corruption-report-2009

“Introducing corruption and the private sector” (pg 3-10) and “Laying the foundations for sound and sustainable development: strengthening corporate integrity in weak governance zones” (pg 46-54)

Also, skim through “Corruption Perception Index 2020”

https://www.transparency.org/en/cpi/2020/index/nzl

Case: Sembcorp Utilities: Powering sustainable growth in emerging markets (Case # NTU105)

6/24: Doing Business in Emerging Markets

Khanna & Palepu – Ch 3 (Exploiting Institutional voids as Business Opportunities)

Prashantam and Yip, “Engaging with startups in emerging markets.” Sloan Management Review,

Winter 2017

Barbour and Luiz, “Embracing solutions-driven innovation to address institutional voids.”

California Management Review, 2019, 62(1).

Lang et al “Why MNCs are winning big in emerging markets.” 2018

https://www.bcg.com/publications/2018/mncs-still-winning-big-emerging-markets.aspx

Case: Amazon in emerging markets (Case # W94C01)

Presentation proposal due

6/28: Doing Business in Emerging Markets (Cont.)

Khanna & Palepu – Ch 4 (Multinationals in emerging markets)

Hruby, “Here’s how companies can benefit from emerging market boom.” 2019

https://www.weforum.org/agenda/2019/10/are-traditional-multinationals-ready-for-emerging-markets/

Ancarani, et al “Winning in rural emerging markets.” California Management Review, Summer

2014

Wijeratne et al “The new ways to win in emerging markets.” 2017

https://www.strategy-business.com/article/The-New-Ways-to-Win-in-Emerging-Markets?

gko=a3fa9

Case: Metro Cash & Carry: Profitability in the Indian market (Case #W20586)

Term paper proposal due

6/29: Emerging market firms

Khanna & Palepu – Ch 5 (Emerging Giants: Competing at Home)

Panandiker et al “Emerging market companies up their game.” 2018

https://www.bcg.com/publications/2018/local-dynamos-emerging-market-companies-up-their-game.aspx

Frynas et al “Management innovation made in China.” California Management Review, 2018,

61(1)

Ramachandran, et al “Why conglomerates thrive.” Harvard Business Review, Dec 2013.

Case: Kova: Becoming a Vietnamese household name in paint (Case # SMU441)

6/30: Emerging market firms (Cont.)

Khanna & Palepu – Ch 6 (Emerging Giants: Going global)

Casanova and Miroux, “Emerging Market Multinationals Report (EMR) 2018.” Ch 1and Ch 3 https://www.johnson.cornell.edu/wp-content/uploads/sites/3/2019/04/EMR2018_V3_FIN-11Jan.pdf

Ramamurti and Williamson, “Rivalry between emerging-market MNEs and developed-country

MNEs.” Business Horizon, 2019, 62.

Case: A dark horse in the global smartphone market: Huawei’s smartphone strategy (Case # IN1324)

7/1: Talent in Emerging Markets, and M&A Strategy

Morrison et al “Emerging market talent strategies.” 2013

https://www2.deloitte.com/us/en/insights/focus/business-trends/2013/emerging-market-talent-strategies.html

Guillen, “Five things emerging economies can do to attract the best talent.” 2017

https://www.weforum.org/agenda/2017/12/emerging-market-companies-multinational-talent-china-india-attract/

Casanova and Miroux, “Emerging Market Multinationals Report (EMR) 2018.” Ch 2

https://www.johnson.cornell.edu/wp-content/uploads/sites/3/2019/04/EMR2018_V3_FIN-11Jan.pdf

Kengelbach et al “BRICs vs Mortar? Winning at M&A in emerging markets.” 2013

https://image-src.bcg.com/Images/BRICs_Versus_Mortar_Aug_2013_tcm9-95826.pdf

(Skim through the Report)

Case: Balancing the power equation: Suzlon Energy Limited (Case # ISB049)

7/6: R&D, manufacturing, and trade

Guillen, “Emerging and developing markets are benefiting from trickle-up innovation.” 2017 https://www.weforum.org/agenda/2017/08/emerging-and-developing-markets-are-benefiting-from-trickle-up-innovation/

Hensmans, M “Competing through joint innovation.” Sloan Management Review, Winter 2017.

Sun, I “The world’s next great manufacturing center.” Harvard Business Review, May-June

2017

Harmsen & Riad, “Trading places.”

https://www.imf.org/external/pubs/ft/fandd/2011/09/Harmsen.htm

Case: Uber vs Didi (Case # IN1306)

7/7: Innovative Business Approaches

Karamchandani et al, “Is the Bottom of the Pyramid really for you?” Harvard Business Review,

March 2011

McGahan, et al “Strategies for embracing low-income consumers.” Rotman Management,

Spring 2016

Christensen et al., “Cracking frontier markets.” Harvard Business Review, Jan-Feb 2019.

Case: Illumination Solar: Delivering energy poverty solutions (Case # W18618)

7/8: Presentation and Term Paper Due