IILM Institute for Higher Education

School of Business

Course Outline

Global Business Environment

PGP 2010-2012
 Global Business Environment

Facilitator E-mail ID Meeting time

Mr. Rahul K. Mishra Rahul.mishra@iilm.edu Thursday, 3- 5 pm

Prof. Rakesh Chadhaury Rakeh.chaudhary@iilm.edu Wednesday 3-5 pm

Course Objectives:

There are new realities in International business. We are witnessing remarkable

changes in the cross-border flow of products, service, capital , ideas and people.
Today’s volume of international trade , ease of communication and travel and
technological advances compel, and help large and small firms to
internationalize.

As the world of business is changing , International business refers to the

performance of trade and investment activities by firms across national borders
.Since the most conspicuous aspect of international business as cross-border
business . Firms organize , source, manufacture , market and conduct other
value added activities on an international Scale. They seek foreign customers
and engage in collaborative relationships with foreign business partners.

Factors of Business Environment affect small and big business alike. Financial
and banking crisis in US had a contagion effect on the businesses and
economies world wide. Increasing trade and investment liberalization has
impacted the world of business in a big way. There are global corporations and
smart small and medium businesses increase the level of competition world
wide.

Emergence and challenges of global institutions like WTO, The World Bank
and IMF to steer the process of globalization from the inherent contradiction in
the world where huge economic and cultural divide exist between nations and
society and group of people everywhere. Some of the critics ask more for
globalism than globalization.

To make sense of all this , the future managers will operate in the world which
will be increasing global in the economic and scientific progress and intensely
local to protect their interests.
Learning Outcomes :

At the end of the course students will be able to

1. To Identify , explain and evaluate the important factors of global business

environment which may impact the business firms

2 To be able to apply these factors and concepts in the developing appropriate business
strategy for the firms operating in many countries.

3 To be able define the risks involved in the environment and how to minimize he risks
while doing business globally

4.To understand the trends in global environment and its possible impact on the
business environment

Books and References:

Main Text:

• International Business, competing in the global market place , 7th Edition –

Charles W. Hill and Arun Jain , Tata Mcgraw Hill

Additional Text

• International Business , Strategy, Management and the New Realities , Casuvil ,

Knight and Riesenberger , Pearson Education

• The world is Flat - Thomas L. Freidman, Penguin books

• Globalization and its Discontents – Joseph Stiglitz, Penguin Books

• International Business – Rakesh Joshi

Online Resources:

Global EDGE
This excellent site for region or country information can help students to understand
the subject matter in much better way. It has got well stocked source of information
for international business that includes country data, market potential indicators for
emerging markets, glossary and much more. Produced by the Center for
International Business Education and Research at Michigan State University, this is a
comprehensive source of information and analysis related with international
business. To search for relevant country information – click on ‘Multicountry.
http://globaledge.msu.edu/ibrd/ibrd.asp

EU
The gateway to relevant data about EU and EU countries. Select your preferred
language on the first page of the site. http://europa.eu/

Virtual International Business and Economic Sources (Vibes)

This site offers links to over 2,800 Internet sources of international business and
economic information. From UNC-Charlotte. http://library.uncc.edu/vibes/

Europages (European Business Directory)

A searchable directory of 700,000 European businesses in 35 European countries.
http://www.europages.com/

WTO

www.wto.org

IMF

www.imf.org

The world Bank group

ASSESSMENT CRITERIA

S. No. Component Weight age (%) Due Date

1. Case Presentations and discussions 20 On going
2. Mid Term 10 After session 12
3. Individual Project 10 After Session 20
4. End Term Examination 60 As per program schedule
 A. CASE ANALYSIS: 20%

CASE ANALYSIS

Case analysis is tool to develop student’s abilities to select, evaluate and apply concepts,
models and theories of International Business for effective strategy formulation. It is
mandatory for all students to read and analyse the case mentioned before the scheduled
day of presentation. This is imperative in order to gain analytical skills as well as to be
more interactive. The business situations presented in the cases may be complex and
frequently involve a series of interrelated problems. Therefore, student is required to
work on the following guidelines:

Writing a case analysis, you are required to address the following issues:

• Read the case twice

• Identify the key problem facing the company;
• Identify the key issues of in the business environment which will impact business
• Do a situation analysis and highlight strength & weaknesses of the company
• Identify the various alternative solutions that the company could potentially pursue
Analyze and interpret the information in the case using concepts and frameworks of consumer
behavior
• Propose your solution to the problem

In proposing a solution, keep the following points in mind:

• Use the information given in the case. Do not extrapolate or use your information on present
scenario
• Clearly state your assumptions
• Give a possible solution
• Consider both the pros and cons of your solution;
• Choose a specific course of action and spell out constraints.

B. MID TERM TEST: 10%

One Class test would be held as per given deadline. These would focus on student’s
conceptual understanding and application of theoretical concepts.

C. Individual PROJECT: 10%

The project’s purpose is to provide the students with an opportunity to integrate and
apply material learnt in this class to in respect of the problems Indian companies or
global companies are facing in a specific country market. So the final report will
combine the identification the problem which the Indian or global firms are facing in the
specific country market. Student has to go into the details of Political, economic, legal
and competitive issues in that particular market. Connect these factors with the problems
which specific firms is facing . and what could be possible solution to the problem in that
particular country environment/.

Six examples have been given to students to formulate their own projects

1. Google in China 4. Patents issues in China for Microsoft

2. Tata Motors in UK 5. Chanel in Dubai and Saudi Arabia

3. Ranbaxy in US 6. Satyam in US

The secondary sources will also help them to get an understanding of political, economic,
social and cultural and competitive environment of the country. A project report will be
submitted latest by the 20 session. Warning: Plagiarism of any kind shall be dealt severely and
can lead to be dismissal of submitted work.

D. END TERM EXAMINATION: 60%

This would be a two-hour open-book examination.

Global Business Environment

Course at a glance

Total – 24 Sessions

SESSION Topic Readings / Cases Chapters

1-3 Globalization and its impact Wal- Mart’s Global Expansion – Hill and Jain ,
case study chapter 1
4-6 India’s changing Political Hill and Jain
Economy – case study
Political Factors in Global Chapter
A survey of India- The Economist
 Business Environment

Legal sytems and property rights

7-8 The elephant Dances – India Hill and Jain
Economic system and the emerges in Global recession Chapter 2
political economy
9-11 International Trade Theory Case – Hyundai : the struggle for Hill and Jain
International Success
Theory of Global Chapters -4 & 5
Competitiveness alignment
12-15 World Trade Organization and Understanding the WTO, Hill and Jain
Patents rights and the Doha document from WTO website chapter -6
round

Political Economy of
International Trade
16-18 FDI and political economy of India’s global leadership in BPO- Hill and Jain
International Trade ITes Industry chapter 7 &8

Ford and General Motors in

Russia
19-20 Regional Economic Integration Case – Arcelik : International Cavusgil, Knight
and EU, NAFTA, ASEAN Aspirations of an emerging and Riesenberger
market firm
Chapter -8
21-24 International Monetary System Case- Money change Hill and Jain

IMF Case- The European Union and Chapter 9

the Euro
Global Capital Market

Basics of Foreign exchange

Market