MULTINATIONAL ENTERPRISES & GOVERNMENT POLICY
FUNCTIONAL OPERATIONS

Goals

The goal of this module is to educate students in the functional operations of multinational enterprises (MNEs) in global markets. It will provide them with the ability to communicate with corporate executives and government officials in an informed manner regarding these activities and their relationship to international trade and commercial diplomacy. This goal will be accomplished by explaining in detail the capabilities, resources and the management control of these corporate functional departments.

Topics Covered: The topics covered in this module, in order of discussion, will include but not be limited to the following. Bracketed subjects cover related government activities.

1.Why multinational enterprises (MNEs) seek international business; world markets, their size and characteristics; country selection by MNEs activity.

2. Marketing, sales, services; standardization versus custom products; pricing issues and decisions; promotion issues and choices; distribution and service decisions.

3.. Research and development; basic applied and pre‑competition research; productivity and R&D; competitive advantage of R&D; location of R&D; linking R&D to marketing.

4. Production, sourcing, logistics; context of international production operations; production management; location decisions; materials management; quality & reliability

5. Human resources; recruitment, labor relations; training; expatriate policies; finance and accounting for international operations; subsidiary operations as financial entities.

6.  Staff functions; external affairs; government affairs; media relations, general counsel.

7,  Organizational designs for international business; corporate and subsidiary governance; centralization vs. decentralization; cost pressures vs. local responsiveness.

8.  Management control of the MNEs importance of control; control techniques; managing information, productivity; market value.

Key Books/Articles: One or more, in part or in total of the following texts will be used:

Czinkota, M.R. and I.K. Ronkainen, Global Business (Fort Worth, TX: Harcourt Brace, 1995).

Daniels, J.D. and L.H. Rachbaugh, International Business (Reading, MA: Addison‑Wesley, 1 99s).

Grant, R.M., Contemporary Strategicilualysis. Concepts, Techniques, Applications (Cambridge, MA: Blackwell, 1995).

Griffin, R. and M.W. Pustay, International Business. ~4 Managerial Perspective (Reading, MA: Addison Wesley, 1996).

Hill, C.W.L., International Business. Competing in the Global Marketplace (Chicago: Irwin, 1 99s).

Rugman, A. and R. Hodgetts, International Business. ~4 Strategic Management Approach (New York: McGraw‑Hill, 1995).

Case Materials

Cases will be drawn from the texts listed. In addition, cases may be drawn from several sources including the Harvard Case Studies or the Darden School Case Studies (University of Virginia).

Criteria for evaluating teaching and student performance

Students must be able to articulate the key concepts of functional operations of a corporation by utilizing public and corporate information. A research paper covering a specific MNE and its functional operations will be required of each student.

Required Reading

Assignments will be from the following texts:

Daniels, J.D. and L.H. Rachbaugh, International Business (Reading, MA: Addison‑Wesley, 1 995)

Griffin, R. and M.W. Pustay, International Business. ~4 Managerial Perspective (Reading, MA: Addison Wesley, 1996).

Hill, C.W.L., International Business. Competing in the Global Marketplace (Chicago: Irwin, 1 995)

Rugman, A. and R. Hodgetts, International B?lsiness. A Strategic Management Approach (New York: McGraw-Hill, 1995).

Three of these texts are on reserve in the MIIS Library. The Daniels and Rachbaugh text is a MIIS text.

Each assignment will be announced at the previous class session.