Spring 2024

STRATEGIC MANAGEMENT / BUSINESS STRATEGY BUS 5070A

Prof. Desislava Dikova, PhD
Desislava.Dikova@wu.ac.at; ddikova@aubg.edu

COURSE SYLLABUS

COURSE OVERVIEW
Description:
This course offers a cross-disciplinary perspective to prepare participants in planning and
executing global strategies. Real-world proven steps, tools and frameworks prepare
course participants to succeed in an increasingly turbulent global environment. The course
integrates international business, inter-cultural management, and global leadership as it
explores implementation of international strategies.

As a starting point, we will revisit the course International Business and the fundamental
questions you covered in that course: Do we have to internationalize to grow profitably?
When is the right time to internationalize? Where and how should we internationalize?

From there, we will continue with key strategic decisions, which top management of large
multinational companies must take: What is our corporate and business level strategy?
How do we organize a global business? Can we benefit from global value chains? How do
we choose among various foreign market entry modes? How do we manage cross-border
acquisitions and alliances? This course takes a different approach from the approach in
your Entrepreneurship course, as it zooms in on issues relevant to established, large
multinational, for-profit organizations rather than smaller entrepreneurial startups. It builds
on your knowledge from the course Organizational Design and Management, where you
examined the link between culture, teams, and organizational designs, and discussed
organizational change.

Overall Course Objectives:

1) Acquire knowledge about strategic planning techniques and tools for strategic
analysis, including templates.
2) Develop familiarity with many examples of successful and less successful global
strategies.
3) Acquire knowledge of industry cases and major types of strategic decisions.
4) Experience the challenges of managing a global company.
5) Experience the challenges of negotiating a cross-border joint venture in a mature
industry.
ASSIGNMENTS

An integral part of the course is a business simulation, which allows a hands-on

experience in managing a large, global telecommunications company through
technological evolution in a fast-paced 21st century operating environment. CESIM Global
Challenge is an online business simulation game that develops participant understanding
of the complexity of global business operations in a dynamic competitive environment. It
integrates a range of concepts from various management related disciplines, including
economic, political, and financial decision making, as well as accounting, production,
logistics, research & innovation, and marketing. The participants will develop and execute
strategies for their simulated company operating in the USA, Asia, and Europe.

The primary objective of the simulation is to maximize the shareholders’ value. In this
case, the value to shareholders is measured by cumulative shareholder return, which
takes into consideration both the dividents paid as well as the share price development
over time.
The simulation is completely web based. The management of the simulated company is a
team effort, but the simulation platform allows team members to work independently. Each
team member has her/his own account that enables them to make decisions and
scenarios on their own and later combine the outcomes with the other team members on
the [decision checklist] -page. The platform also includes a communications forum that can
be used to communicate within teams and between all teams in the same market. For this
course, the established 5 working teams will represent 5 competing (rival) US-based
telecommunication companies operating in the same global industry space (universe) over
the period of 10 fiscal years (simulation rounds). All teams have the same starting point.
Detailed instructions about the simulation and respective deadlines will be provided during
the first course session.

The deliverable of the simulation is the PPP for the final team presentations. The PPP
should cover the key strategic decisions made during the simulation game (and the logic
behind these decisions), mistakes, lessons learned and an alternative strategy (if the
simulation can be replayed again). Presentations should be about 20 minutes long; PPP
slides should be sent in advance to the instructor.

Business Simulation Objectives

1) Increase the participants’ awareness of the complexity of managing a global

company from a strategic and general management perspective.
2) Develop capabilities in identifying & analyzing key environmental and organizational
factors that may influence an organization’s performance within and across national
markets.
 3) Enhance fact based analytical decision making and crystallize the financial
implications of business decisions by linking the decisions to cash flows and
bottom-line performance.

To access the business simulation CESIM, please go to course “BUS5070A” by clicking on

this link: http://sim.cesim.com/register/BUS5070A#1

READINGS AND COURSE CONTENT/SCHEDULE

1. Introduction to the course. Introducing global strategy. Clarifying the goals of

the course.
DATE 1/25/2024 TIME 11:00AM –12:30PM
2. Introduction to the business simulation. Designing initial strategy, dividing
roles, getting started with CESIM
DATE 1/25/2024 TIME 1:30PM –4:45PM

Readings:
CESIM case description
CESM decision-making instructions

3. Internationalization and entry mode strategies.

DATE 1/26/2024 TIME 11:00AM – 12:30PM
In this class, we will revisit and build on the course “International Business” by focusing on
the fundamental questions you covered in that course: Do we have to internationalize in
order to grow profitably? When is the right time to internationalize? Where and how should
we internationalize?
Readings (optional):
Leavy, B. (2013), "Laurence Capron analyzes corporate development's build,
borrow and buy options", Strategy & Leadership, Vol. 41 No. 2, pp. 18-26.

4. Industry-based and resource-based analyses: outside-in and inside-out

approach to strategy design, global value chain configuration
DATE 1/26/2024 TIME 1:30PM – 4:45PM
During this class, we will discuss how organizational resources and industry dynamics
influence the choice of competitive business level strategies. The two popular tools,
resource-based view and the 5-forces industry analysis not only allow us to determine the
potential for profit but also determine the sources of competitive advantage of individual
firms in their respective industry.

Readings (optional):
Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business
Review, 86(1), 25-40.
Dobbs, M.E. (2014) Guidelines for applying Porter‘s five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.
Collis, D.J. & Montgomery, C.A. (2008) Competing on resources. Harvard Business
Review, 86(7-8): 140-150 (10pp)
Farrell, D. (2004) Beyond Offshoring: Assess Your Company's Global Potential.
Harvard Business Review, 82(12): 82-90 (8pp)
Arruñada, B., Vázquez, X.H. (2006). When your contact manufacturer becomes your
competitor. Harvard Business Review, 84(9): 135-144.

5. Successfully Executing Global Market Entry Strategies: A Focus on Cross

Border Acquisitions
DATE 3/23/2024 TIME 9:00AM – 12:30PM
Based on their popularity as tools for achieving strategic goals, we will take a closer
look at cross-border acquisitions and tackle issues related to their success.

Readings (optional):
Eccles, R.G., Lanes, K.L., Wilson, T.C. Are you paying too much for that
acquisition? Harvard Business Review. Jul/Aug1999, 77 (4):136-146.

6. Application of theory and frameworks presented in the lectures

DATE 3/23/2024 TIME 1:30AM – 4:45PM
Readings:
Future-proofing Heineken: The evergreen strategy. An analysis of the business
case is an integral part of this module. Reading the business case prior to class is
important for preparation.

In this class, we will apply the frameworks introduced in class, to determine:

1. Which competitive forces are likely to impact the global beer industry and its overall
appeal in the foreseeable future? We will use Porter’s Five Forces to structure the
analysis.
 2. Which macro-environmental factors are likely to impact the global beer industry and
major players in the foreseeable future? We will use PESTEL framework to
structure the analysis.
3. How can unforeseen international crises affect industries and companies in both
short and long term? What opportunities and threats can be unidentified for
Heineken in a VUCA world as it recovers from the Covid-19 pandemic and the
subsequent economic downturn?
4. If we could ask the CEO of Heineken three key questions about the execution of
EverGreen, what would they be?

7. Successfully Executing Global Market Entry Strategies: A Focus on Cross

Border Joint Ventures (JV)
DATE 3/24/2024 TIME 9:15AM – 4:45PM
Joint venture activity is extremely high in certain global industries. However, problems
arise during interactions between people from different cultures. We will focus on the
challenges of negotiating a cross-cultural JV and will uncover the reasons behind frictions
in JVs to prepare to effectively deal with them.

Business Negotiations Simulation: General Motors & Avto VAZ: Creating a successful
cross-border alliance. Case study „General Motors and AvtoVAZ.
The objective of the simulation is to hone your business and behavioral skills in a complex
industry. The case focuses on the continuing negotiations between two of the world's
largest automobile manufacturers. At the time the case was written (spring 2001), the
events were essentially real-time, as GM and Avto VAZ had yet to formalize their final joint
venture agreement. The case is useful in debating the prospective risks and returns to a
Western multinational entering an emerging marketplace, and the risks and returns to a JV
between a major Russian powerhouse and a Western firm that is highly suspicious of its
Russian capabilities. Instructions about the negotiations will be delivered in class.

The deliverable of this session is a personal report reflecting on the following: initial
negotiations strategy (goals), best alternative to negotiated agreement (BATNA) or a
description of the action the party engaged in negotiations has determined should be taken
if talks fail and no agreement can be reached, performance during the negotiations and
lessons learned (what went well, what went wrong, what could have been done better).
The submission of the individual negotiations report should be done by the end of the
course.

Readings (optional):
Beamish, P.W. & Lupton, N.C. (2009). Managing Joint Ventures. Academy of
Management Perspectives, 23(2): 75-94.
Negotiation tips by Deepak Malhotra: https://youtu.be/VsaxtLqh4h0
Deepak Malhotra is Eli Goldston Professor of Business Administration at Harvard
Business School, focusing on negotiation strategy, trust development, international and
ethnic dispute resolution, and competitive escalation.

Negotiations preparation: TIME 9:15AM – 12:30AM

Negotiations: TIME 1:30PM – 4:45PM

6. Application of theory and frameworks: A graded team assignment.

DATE 4/20/2024 TIME 9:15AM – 12:30PM
An analysis of the business case Feihe Dairy: Investing in Canada is an integral part of
this module. Reading the business case prior to class is important for preparation.

Case Assignment (this is a team effort and will be graded as such, according to the
criteria below). Submission deadline by 23:59h on Sunday 21st.

A proper case analysis is relatively short but to the point (2 to 3 pages) and applies
conceptual models (frameworks) to the issues presented in a case. The analysis should be
well organized and well written, and comply with the following format requirements:
• Case analysis must be typed.
• Should not exceed 3 pages.
• Number the pages. In the footer, provide your group’s name and the page
number.
• No cover page.
• Use a size 12 font.
• Single or 1 ½ line spacing are acceptable.
• As in all good business papers, you should impose structure on your case analysis
- divide it into relevant sections. For each section, provide a header (in bold font or
underlined).
• As appropriate, include tables and/or charts. (You may exceed 3 pages if you
include tables as attachments.)
• Cite your sources, either in footnotes or using parenthetical citations, and provide
a reference list at the end of your paper.
• Check your work before handing it in. Avoid grammar and spelling mistakes.

Content Suggestions for Case Analyses:

1. State the Problem. Begin your paper with a statement of the main problem. This
should not be an exhaustive list of everything that is wrong. Instead, it should be
one or two central issues around which all else is organized. To do this you will
have to a) combine related problems, and b) establish priorities. You will not be able
to address everything in your case analysis.
2. Analyze the Problem. This is where you identify relevant facts from the case and
apply conceptual models. Analyze the problem you identified. Organize the facts
into a coherent whole and present your evidence in a persuasive manner. Clearly
 state any assumptions that you have made. Provide evidence from the case to
support your analysis. (Use quotations from the case or evidence elsewhere)
Analyze the problem using conceptual models from the readings or lectures. Apply
the models fully and explicitly. Cite your sources.
3. Draw a Conclusion and provide recommendations. In this section, provide the
results of your analysis. What are your main conclusions? What should be done
next? Provide specific recommendations that logically follow from your analysis.
4. Please submit your work electronically to Desislava.dikova@wu.ac.at

8. Final Presentations of CESIM Simulation Decisions; Reflections on business

simulation outcomes. Finalizing the course
DATE 4/20/2024 TIME 1:30PM– 4:45PM

GRADING

1. CESIM Global Challenge Simulation 40%

The simulation grade is based on:
Team presentations (80% of the simulation grade)
Game outcome rank (20% of the simulation grade)
2. Business case team assignment 20%
3. JV Negotiations report (individual assignment) 30%
4. Active class participation (covers quality contributions to business case analyses
in class) 10%
The course will be graded on the following basis:
94 - 100 = A 77 - 79 = C+
90 - 93 = A- 74 - 76 = C
87 - 89 = B+ 70 - 73 = C-
84 - 86 = B 65 - 69 = D
80 - 83 = B- Below 65 = F
BIOGRAPHY OF COURSE INSTRUCTOR
Desislava Dikova is Professor in International Business CEE focus at WU Wien (Vienna
University of Economics & Business), Head of the Competence Center for Emerging
Markets and CEE at WU Wien, Deputy Academic Director of the CEMS MIM program at
WU Wien and an entrepreneur. She previously held positions at the University of
Groningen, the Netherlands and King's College London, the UK. She earned her doctorate
degree from the University of Groningen, the Netherlands, an Executive Master in
International and European Relations from the University of Amsterdam, the Netherlands
and a Master of Science in International Economics from the Academy of Economics
D.A.Tzenov, Bulgaria.

Desislava Dikova is the Editor-in-chief of the Journal of East West Business (published by
Taylor Francis), Senior Associate Editor of European Management Review (published by
Wiley) and Senior Editor of the Journal of International Management (published by
Elsevier). Prof. Dikova is widely experienced both in degree-course and executive
education. Besides Vienna, she has taught at CEU Budapest, Hult International Business
School (Shanghai Campus), University of Amsterdam, University of Groningen, Ljubljana
University, IBS Vilnius (Lithuania), Moscow State University (Russia), GSOM St
Petersburg, Ohio State University (USA) and Western Washington University (USA).

Desislava Dikova's research is focused on the international behavior of multinational

companies, she examines their foreign market entry mode choices and the subsequent
performance of foreign subsidiaries in the CEE region, Russia and other emerging
markets. In addition, Dikova studies the competitive behavior of firms with respect to the
types of innovation investments and their cross-border merger and acquisition activity. Her
research has been published in highly ranked international journals such as the Journal of
International Business Studies, Journal of Management Studies, Journal of International
Marketing, Journal of International Management, Journal of World Business, Management
International Review, International Business Review, European Management Review,
Cross-Cultural and Strategic Management, International Journal of Emerging Markets,
Journal of East West Business, Schmalenbach Business Review.