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International Management

Course developer

Course abstract

The study course provides in-depth theoretical and practical knowledge on the framework of international management: defining of international business strategy, its implementation and control. The factors that influence international companies’ business functions development and management at macro, mezo and micro level are explained: problems of global economy and geopolitics, challenges of ICT and development of new business trends using opportunities of digital economy. Students master skills to apply qualitative and quantitative methods for business information analysis, solving of international business problems and taking complex decisions, thus being able to develop assertive, target-oriented and sustainable international management strategy.

Learning outcomes and their assessment

Knowledge
Knowledge of macro, meso and micro environmental factors of international management and their impact on the performance of company’s functions. In-depth knowledge and understanding of the functions of corporate, business and operational strategy in an international company, the methods of business information analysis. Knowledge is assessed in independent work, which is focused on the analysis of theoretical literature and practical research, in which the student collects, analyses and interprets secondary data of the international business environment.
Skills
Skills to independently use the theory of international management approaches in the context of various problem situations. Ability to substantiate and discuss the functions of corporate, business and operational level strategies in a company in the conditions of international competition. Skills are assessed in both individual and group practical works aimed at analysis of various types of information, using appropriate methods and information sources, developing a business project.
Competence

Ability to independently develop, manage and control the functions of international management in the company. Competence is assessed in a written examination work.

Course Content(Calendar)

Lectures (18h):
1. The concept and essence of international management. Stages of the international management process: formulation, implementation, control of the international strategy. The problem of instability in the international business environment and the ability of companies to adapt to uncertain situations by making complex decisions. Financial and non-financial benefits of companies from goal-oriented and planned development of international business functions. (2h)
2. Formulation of mission and vision for the company's operation in a new foreign market. Guidelines for formulating a mission focused on the company's values and customer needs. Formulation of the company's vision, enhancing of competitive growth of the company, which complies with the latest technological and market development trends. (2h)
3. Assessment of international environmental factors at the macro, meso and micro levels. Problems of macroeconomic and geopolitical instability of countries, challenges of technological development, intensification of global competition, need to overcome cultural differences. Porter’s 5 competitive forces model versus Burton’s 5 collaborative forces model. Sources of international business information, analysis of economic sectors and forecasting of attractiveness. M. Porter’s diamond model for the evaluation of international competitiveness of industries. (3h)
4. Evaluation of the readiness of the company’s internal environmental factors for starting an international business. Compliance of material resources and human resources capacity with the specifics of external market operation. Compliance of the company’s business philosophy and values with the cultural environment of the target market. Compliance of the company’s products with the needs of consumers in foreign markets. Incorporating current issues of the digital economy and research and development (R&D) into the international management strategy. (3h)
5. Implementation of international management functions. Creation of the company’s value chain and goal-oriented improvement of its stages. Vertically and horizontally integrated companies: indications for cooperation, advantages, disadvantages. Strategic alliances, licensing, joint ventures, franchise format companies. Mergers and acquisitions. Ensuring international marketing activities: product portfolio management, balancing elements of the marketing mix in accordance with foreign market conditions. International logistics chain management: materials management, actual distribution, business logistics, e-commerce. (3h)
6. Evaluation and control of international management functions. Tangible and intangible indicators of international management performance: profitability, profit, market share, employee satisfaction, customer loyalty and satisfaction. Data acquisition and analysis methods. (3h)
7. Ethical issues of international management and corporate social responsibility. Ethical relativism in the international business environment. Ethical issues related to the elements of the marketing mix and socially responsible marketing. Milestones for corporate social responsibility: employees, customers, shareholders and competitors. (2h)
Practical works (18h)
1. Getting acquainted with the laws and legal enactments of the EU and the Republic of Latvia, which directly determine and regulate the relations of market participants (Competition Law, Advertising Law). Getting acquainted with the sources of law of different world countries: Civil law, Common law, Sharia law, Customary law. (3h)
2. Assessing countries’ global competitiveness: The pillars of the Global Competitiveness Index of the World Economic Forum and their components. (3h)
3. Practical significance of market segmentation, evaluation of real problem-situations, acquaintance with the experience of global corporations. Identification of consumer needs, adaptation of product characteristics to consumer needs; getting acquainted with the experience of global corporations. (3h)
4. Evaluation of the cultural differences of the target market according to G. Hofstede’s culture classification model and the company’s ability to adapt to them. (2h)
5. Exploration of topical issues related with export skills, experience of Latvian companies in export activities: LIAA (Investment and Development Agency of Latvia) export promotion and support opportunities, LIAA representative offices abroad, European Business Support Network. (2h)
6. Getting acquainted with the logistics environment of different countries, their different levels of development. Schematic creation of the flow of goods in a multinational company, analysis and selection of the most appropriate logistics channels. Defining key indicators for evaluation of company’s performance. (3h)

7. Assessment of Country Global Governance Indicators: World Bank Global Governance Indicators and rank of countries. (2h)

Requirements for awarding credit points

Passed test on theoretical aspects of the study course. Positive evaluation for the independent work related with participation in practical research works, discussions, data collection. Positive evaluation for the group-work aimed at developing a business project. Positive evaluation for a written examination work. The examination may be taken only if the evaluations for the test, independent and group works in the classes are positive.

Description of the organization and tasks of students’ independent work

Developing a practical research on national competitiveness and market specifics, analysis of data obtained by using various databases.
Identification of consumer needs, adaptation of product characteristics to consumer needs; getting acquainted with the experience of global corporations.
Defining opportunities for building business partnerships in the international market; risk analysis for acquiring a new international sales market.
Evaluation of international management functions for companies of various industries, identifying opportunities for their improvement to promote export capacity.

Criteria for Evaluating Learning Outcomes

Four activities are evaluated in the course: written test (10%); independent work – case-study analysis, participation in discussions in classes (20%); group work on business project development (30%); written exam work (40%). The exam may be taken only if the evaluations for the test, independent and group works in the classes are positive.

Compulsory reading

1. Hill C.W.L., Udayasankar K., Wee C.H. Global Business Today. McGraw Hill-Education, 2014. 544 p.
2. Rugman A.M., Collinson S. International Business. Harlow, England; New York : Prentice Hall Financial Times, 2009. 716 p.
3. Business in a Changing Society: Festschrift for Peter Brabeck-Letmathe. Edited by Andreas Koopmann. Zurich: Neue Zürcher Zeitung, 2014. 295 p.
4. Dersky H. International Management. Managing Across Borders and Cultures. Harlow, Pearson, 2014. 407 p.

Further reading

1. Bakari M. The Dilemma of Sustainability in the Age of Globalization. Lanham: Lexington Books, 2017, pp.225.
2. Kotler P., Kartajaya H., Setiawan I. Marketing 4.0 Moving from Traditional to Digital, 2016, (E-grāmata), pieejama: http://www.ebook777.com/marketing-4-0-moving-traditional-digital/
3. Kotler P., Meller K.L. Marketing Management. Prentice Hall, 2015, pp.832.
4. Larcker D., Tayan B. Corporate Governance Matters. 2nd Edition, Pearson Education, 2016, pp. 441.
5. Pierre A.David International Logistics: The Management of International Trade, 5th Edition. Cicero Books, LLC, 2017, pp 745.

6. Uzņēmējdarbības vide un tās attīstības aspekti. Zinātniskie redaktori: Vita Zariņa, Suats Begečs. Rīga : Biznesa augstskola Turība, 2013, 346.lpp.

Periodicals and other sources

1. Dienas Bizness : nedēļas laikraksts : ISSN 1407-2041
2. Forbes. "SK Media" SIA. Forbes. Rīga : ISSN 1691-6018
3. iBizness, Rīga: Izdevniecība iŽurnāli. ISSN 2256-0882
4. International Small Business Journal http://isb.sagepub.com/

5. The Economist. London : Economist Newspaper Ltd. ISSN 0013-0613

Notes

Limited elective course in the specialization direction “Business and Logistics” of the ESAF academic master's study programme “Economics”.