SECTION 1: THE COUNTRY LEVEL PERSPECTIVE ON ASIAN BUSINESS ENVIRONMENTS |
CLASS 1: INTRODUCTION AND CULTURE IN ASIA
(Thursday, August 14, 2014)
Required Readings:
Friedman, Thomas (2005). “It’s a Flat World, After All.” New York Times Magazine, April 3.
Ghemawat, Pankaj (2007). “Why the World Isn’t Flat.” Foreign Policy, March/April, pp. 54-60.
Hofstede, Geert (1993). “Cultural Constraints in Management Theories.” The Executive Vol. 7, No. 1 (February), pp. 81-94. http://www.jstor.org.libproxy1.nus.edu.sg/stable/4165110
Case: “Globalization of East Asian Pop Music” (2010), HBS 9-708-479
Study Questions:
1. What factors best explain why the music market has strongly recovered in East Asia, whereas the rest of the world’s music industry is crumbling and the largest music companies around the world have been laying off thousands of employees? What is unique about the region, and what is unique about the particular markets in Japan, South Korea, or China that explains this renewed growth and profitability?
2. What best explains why some Asian singers and bands succeeded in expanding across their national borders while many others failed?
3. In the present, would you advise that the Asian music companies profiled in the case turn to other Asian markets or to wealthier markets in the West? Why? And how would you advise them to accomplish this?
Suggested Reading:
Siegel, Jordan (2007), "Contingent political capital and international alliances: Evidence from South Korea." Administrative Science Quarterly 52.4: 621-666. http://www.jstor.org/discover/10.2307/20109946?uid=3738992&uid=2&uid=4&sid=21103267889467 |
CLASS 2: INSTITUTIONS, RESOURCES, AND THE EAST ASIAN MIRACLE
(Thursday, August 21, 2014)
Required Readings:
Rodrik, Dani and Arvind Subamanian (2003). “The Primacy of Institutions.” Finance and Development, June, 40(2). http://search.proquest.com.libproxy1.nus.edu.sg/docview/209412386
Sachs, Jeffrey (2003). “Institutions Matter, But Not For Everything.” Finance and Development, June, 40(2). http://search.proquest.com.libproxy1.nus.edu.sg/docview/209428358
Krugman, Paul (1994). “The Myth of Asia’s Miracle.” Foreign Affairs, November/December, 73(6), pp. 62. http://web.ebscohost.com.libproxy1.nus.edu.sg/ehost/results?sid=43dd6efd-ff3a-4b9c-8117-4662ac31fbb9%40sessionmgr112&vid=1&hid=103&bquery=(the+AND+myth+AND+of+AND+asia%27s+AND+miracle)+AND+(AN+9411180052)&bdata=JmRiPWJ1aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZl
Case: “Special Economic Zones in India: Public Purpose and Private Property (A)” (2009), HBS 9-709-027.
Study Questions
1. Should the Indian government change the law on eminent domain, so that they can acquire land for Special Economic Zones?
2. Is setting up Special Economic Zones the right development strategy for India?
3. What could Tata Motors have done in their Singur project to mitigate the protests from farmers?
4. Under what circumstances and to what extent should the government intervene in market transactions?
Suggested Readings:
Banerjee, Abhijit and Lakshmi Iyer (2005). "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India." The American Economic Review 95: 4.
http://www.jstor.org/discover/10.2307/4132711?uid=3738992&uid=2&uid=4&sid=21103267889467
Bloom, Nick et al. (2013). “Does Management Matter? Evidence from India,” Quarterly Journal of Economics, 128:1, February, pp. 1-51. http://qje.oxfordjournals.org/content/128/1/1.short |
CLASS 3: NATIONAL COMPETITIVENESS IN ASIA
(Thursday, August 28)
Required Readings:
Porter, Michael (1990). “The Competitive Advantage of Nations.” Harvard Business Review, March/April, pp. 73-91.
http://web.ebscohost.com.libproxy1.nus.edu.sg/ehost/results?sid=d6b58ea4-5576-415b-9927-bf8244f37b19%40sessionmgr111&vid=1&hid=103&bquery=(The+AND+competitive+AND+advantage+AND+%22of%22+AND+nations)+AND+(AU+(Porter%2c+AND+Michael+AND+E.))+AND+(SU+(International+AND+business+AND+enterprises))&bdata=JmRiPWJ1aCZjbGkwPUZUJmNsdjA9WSZjbGkxPURUMSZjbHYxPTE5OTAwMS0xOTkxMTImdHlwZT0xJnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d
Krugman, Paul (1994). “Competitiveness: A Dangerous Obsession.” Foreign Affairs, March/April.
http://web.ebscohost.com.libproxy1.nus.edu.sg/ehost/results?sid=9f9724ea-46a2-434f-9b90-2cc49470717d%40sessionmgr113&vid=1&hid=103&bquery=(competitiveness+AND+a+AND+dangerous+AND+obsession)+AND+(AN+9404111589)&bdata=JmRiPWJ1aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZl
Hout, Thomas and Pankaj Ghemawat (2010). “China vs. the World: Whose Technology Is It?” Harvard Business Review, Dec.
http://web.ebscohost.com.libproxy1.nus.edu.sg/ehost/results?sid=68ddcfdd-f40e-4025-9498-706992048894%40sessionmgr112&vid=1&hid=103&bquery=(china+AND+%22vs%22+AND+the+AND+world)+AND+(AN+55461905)&bdata=JmRiPWJ1aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZl |
SECTION 2: THE FIRM LEVEL PERSPECTIVE ON ASIAN BUSINESS ENVIRONMENTS |
CLASS 4: NATIONAL CHALLENGES AT THE ASIAN FRONTIER
(Thursday, September 4, 2014)
Required Readings:
Case: “Singapore’s ‘Mid-Life Crisis’” (2014), N9-714-039.
Study Questions:
Suggested Readings:
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CLASS 5: COUNTRY VS. (FOREIGN) COMPANY?
(Thursday, September 11, 2014)
Required Readings:
Eric Li (2013), “The Life of the Party”, Foreign Affairs.
http://www.foreignaffairs.com/articles/138476/eric-x-li/the-life-of-the-party
Yasheng Huang (2013). “Why democracy still wins: A critique of Eric X. Li’s ‘A tale of two political systems’”
http://blog.ted.com/2013/07/01/why-democracy-still-wins-a-critique-of-eric-x-lis-a-tale-of-two-political-systems/
Case: “Google in China (A)” (2010), HBS 9-510-071.
Study Questions:
1. Why did Google issue the statement of January 12?
2. Who were the major stakeholders in the Google vs. China case? How did their actions/ inactions influence Google and Chinese government’s calculation?
3. If you were directing Google’s action in China, would you have done anything differently?
4. If you were a cofounder of Google and you wanted to promote transparency and other public good in China, would you consider letting Google stay in the country?
5. The social networking website Facebook is considering entering China. Given Google’s experience, what would you recommend Mark Zuckerberg to do / not to do?
Suggested Reading:
Zhu, Xiaodong (2012). “Understanding China’s Growth: Past, Present, and Future” Journal of Economic Perspectives, 26:4, Fall, pp. 103-124.
http://www.aeaweb.org.libproxy1.nus.edu.sg/articles.php?doi=10.1257/jep.26.4.103 |
CLASS 6: ENTRY STRATEGY IN AN EMERGING ASIAN MARKET
(Thursday, September 18, 2014)
Required Reading:
Ghemawat, Pankaj (2007). “Differences Across Countries: The CAGE Distance Framework.”
http://linc.nus.edu.sg/search~S16?/i9781591398660/i9781591398660/1%2C2%2C2%2CB/frameset&FF=i9781591398660&1%2C1%2C/indexsort=-
Case: “American Rice, Inc. in Vietnam” (1994), HBS 9-595-020.
Study Questions:
1. What are Vietnam’s reasons for pushing foreign firms in the rice industry into joint ventures with local firms? How is this likely to affect national economic development?
2. Was ARI wise to enter Vietnam through a joint venture? What did each side bring to the table? What does each side get out of the collaboration?
3. As American Rice, would you build a parboil facility in Vietnam? Yes or no, and why?
Suggested Reading:
Malesky, Edmund (Forthcoming in 2014). “Vietnam in 2013: Single Party Politics in the Internet Age,” Asian Survey.
Malesky, Edmund, Regina Abrami, and Yu Zheng (2011). “Institutions and Inequality in Single Party Regimes: A Comparative Analysis of Vietnam and China.” Comparative Politics.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1669708 |
RECESS WEEK: ENJOY!
(BUT ALSO TURN IN YOUR GROUP PROJECT PLAN BY 9AM THURSDAY, SEPTEMBER 25) |
CLASS 7: STAKEHOLDERS IN ASIA (1)
(Thursday, October 2, 2014)
Required Reading:
Porter, Michael and Mark Kramer (2006). “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility.” Harvard Business Review.
http://web.ebscohost.com.libproxy1.nus.edu.sg/ehost/results?sid=2ada23be-eab0-4c11-87f0-ac106e48160c%40sessionmgr111&vid=1&hid=103&bquery=(strategy+AND+society+AND+the+AND+link+AND+between+AND+competitive+AND+advantage+AND+corporate+AND+social+AND+responsibility)+AND+(AU+(Porter))&bdata=JmRiPWJ1aCZjbGkwPURUMSZjbHYwPTIwMDYwMS0yMDA2MTImdHlwZT0xJnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d
Case: “Rana Plaza: Workplace Safety in Bangladesh (A)” (2014), HBS 9-514-034.
Study Questions:
Suggested Reading:
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CLASS 8: STAKEHOLDERS IN ASIA (2)
(Thursday, October 9, 2014)
Required Reading:
Case: “Freeport Indonesia” (2000), HBS 796-124.
Study Questions:
1. What is your evaluation of Freeport Indonesia’s environmental management?
2. What is your evaluation of Freeport’s treatment of social and cultural affairs?
3. Is this project, or could this project be, “sustainable?” How should economic rents be distributed?
4. Should Freeport expand? Should Indonesia allow it?
Suggested Reading:
Fisman, Ray (2001). "Estimating the value of political connections." The American Economic Review 91.4 (2001): 1095-1102. http://www.jstor.org.libproxy1.nus.edu.sg/stable/2677829 |
CLASS 9: CORPORATE SOCIAL RESPONSIBILITY IN ASIA
(Thursday, October 16, 2014)
Cases: “IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A)”, (2006) HBS 9-906-414.
Study Questions:
1. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program?
2. What actions should she take regarding the IKEA supply contract with Rangan Exports?
3. What long-term strategy would you suggest she take regarding IKEA’s continued operation in India? Should the company stay or should it exit? (Be prepared to describe the impact of such a decision and how you would manage it)
For those recommending IKEA continue to source carpets in India, would you suggest that she: a.) continue IKEA’s own monitoring and control processes or sign up for Rugmark? and b.) continue to focus only on eliminating the use of child labor in IKEA’s supply chain or engage in broader action to address the root causes of child labor as Save the Children is urging?
Suggested Reading:
Gereffi, Gary (1999),"International trade and industrial upgrading in the apparel commodity chain." Journal of international economics 48.1: 37-70. http://www.sciencedirect.com.libproxy1.nus.edu.sg/science/article/pii/S0022199698000750 |
SECTION 3: SELECT FEATURES OF ASIAN BUSINESS ENVIRONMENTS |
CLASS 10: FAMILY BUSINESSES AND BUSINESS GROUPS IN ASIA
(Thursday, October 23, 2014)
Required Readings:
Khanna, Tarun and Krishna Palepu (1997). “Why Focused Strategies May Be Wrong for Emerging Markets,” Harvard Business Review, 75:4, pp. 41-51.
http://web.ebscohost.com.libproxy1.nus.edu.sg/ehost/results?sid=65a6b36b-0e77-40ab-a031-ea2ec736e88a%40sessionmgr112&vid=1&hid=103&bquery=(TI+(why+AND+focused+AND+strategies+AND+may+AND+%22be%22+AND+wrong+AND+for+AND+emerging+AND+markets))+AND+(AU+(Khanna%2c+AND+Tarun))&bdata=JmRiPWJ1aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZl
Case: “Ayala Corporation and the Philippines: Asset Allocation in a Growing Economy” (2014), HBS 9-713-093
Study Questions:
1. Is the Philippine economy moving in the right direction?
2. Why is the return on capital so high in some industries in the Philippines?
3. What should Ayala Corporation do?
Suggested Reading:
Brownlee, Jason (2008), “Bound to Rule: Party Institutions and Regime Trajectories in Malaysia and the Philippines,” Journal of East Asian Studies 8(1). 89-118. [repeat from Malaysia week]
http://search.proquest.com.libproxy1.nus.edu.sg/docview/198692028
Khanna, Tarun and Yishay Yafer (2007), “Business Groups in Emerging Markets: Paragons or Parasites?”, Journal of Economic Literature. http://www.jstor.org.libproxy1.nus.edu.sg/stable/27646796 |
CLASS 11: PRIVATE EQUITY IN ASIA
(Thursday, October 30, 2014)
Required Readings:
Case: “Abraaj Capital and the Karachi Electric Supply Company” (2012), HBS 9-812-019.
Study Questions:
1. Compared to private equity investing opportunities in other countries, what factors would you cite to support investing in Pakistan? Given the country’s political, social and economic realities, are some sectors more attractive than others in terms of opportunity and effective risk mitigation?
2. What characteristics are most important for a private equity fund to succeed in an investment like this one?
3. Does Abraaj Capital have the right personnel for this investment? What skills do you think are missing for maximizing value in this investment?
4. Although the link between ESG activities and financial value creation may be valid in some circumstances, is it a realistic proposition in the case of KESC? Why/why not?
5. What are the most realistic exit scenarios for Abraaj, and what are the pros and cons of each one?
Suggested Reading:
Taussig, Markus and Andrew Delios (2014). “Unbundling the Effects of Institutions on Firm Resources: The Contingent Value of Being Local in Emerging Economy Private Equity.” Strategic Management Journal. http://onlinelibrary.wiley.com/doi/10.1002/smj.2312/abstract |
CLASS 12: INNOVATION AND THE BASE OF THE PYRAMID IN ASIA
(Thursday, November 6, 2014)
Readings:
Karnani, Aneel K (2009). “The Bottom of the Pyramid Strategy for Reducing Poverty: A Failed Promise.” United Nations DESA Working Paper No. 80.
http://www.un.org/esa/desa/papers/2009/wp80_2009.pdf
“Easier Said than Done: Emerging Market Consumers are Hard to Reach”, April 2010, The Economist. http://www.economist.com/node/15879299
Suggested Reading:
Mahmood, Ishtiaq P., and Jasjit Singh (2003). "Technological dynamism in Asia." Research Policy 32.6: 1031-1054. http://www.sciencedirect.com.libproxy1.nus.edu.sg/science/article/pii/S0048733302001099
George, Gerard, Anita McGahan, and Jaideep Prabhu (2012). "Innovation for inclusive growth: towards a theoretical framework and a research agenda." Journal of management studies 49.4: 661-683.
http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6486.2012.01048.x/abstract;jsessionid=1CC1120D68BF9CBD589FB0CADA978C3F.f03t02?deniedAccessCustomisedMessage=&userIsAuthenticated=false |
CLASS 13: FINAL PRESENTATIONS!
(Thursday, November 13, 2014) |