Transcript Global Product Launch Simulation

Global
Product
Launch
Simulation
Kick-Off Agenda
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Overview of simulation
Key issues
Potential negotiation relationships
Assignment / discussion of roles
Negotiation process
Graded assignments
Intro to international joint ventures
Simulation Schedule
Simulation Schedule
TIME
Now
In Class
Later Today
Tomorrow
In Class
Later Tomorrow
TASK
Simulation Kick-Off
Pre-Sim Memo (Due by 5:00 p.m.)
Negotiations
Negotiations
Negotiations Conclude
Post-Sim Memo (Due by 5:00 p.m.)
TEAM ASSIGNMENTS
MNCs
MegaMouth
EuroSound
TanakaTooth
Governments
Local Firms
TropiDent
Chewicalia
ParaSonic
ElectroEnamel
Tropicalia
Paradiso
Mandibular Sonic Transducer
Modifications
Tooth whitening
Candy-tipped head
BlueTooth enabled
Other uses:
Voicemail
Prayers, chants
Sports scores
Honey-Do lists
Inspirational sayings
MNCs:
MegaMouth, TanakaTooth, EuroSound
Role of country, local firms, region, etc. in global
supply chain?
Invest in emerging markets?
New product/international strategy
Standardization vs. adaptation of
Sonic Transducer
Mandibular
Entry mode: Risk, resource, control trade-offs
Type of plant, finished product vs. components
Bargaining power vs. local firms and/or Govt.
LOCAL FIRMS:
Chewicalia, ElectroEnamel
Enter/become player in global supply chain?
“Entry mode” – Alone, JV, SOE?
How to facilitate MNCs’ entry into country
How to facilitate MNC’s implementation of
international strategy into country
Access to technology
Government support
Bargaining power vs. MNCs, Govt.
GOVERNMENTs:
Paradiso & Tropicalia
Policies for technical standards, product use, industry
structure, access to local market, global
connectedness, technology, etc.
Trade policies
Economic integration – Free Trade Area
Policies to increase Favorable aspects of FDI
Labor
High technology
Taxes
Imports vs. exports
Policies to reduce Unfavorable aspects of FDI
Dependence
Low technology
Intl. Strategy and Entry Mode
North America
Paradiso
TanakaTooth
Tropicalia
ParaSonic
Chewicalia
ElectroEnamel
TropiDent
Europe
Strategic Importance
of Country
Entry Mode Decision Matrix
Hi
Lo
Lo
Hi
Stand-alone Attractiveness
of Country
Entry Mode Decision Framework
Control
Resources
Risk
Dissem.
Low
Low
Low
High
High
High
High
Low
Licensing
Exporting
Intermediaries
Direct
Joint Venture
Wholly-owned
Subsidiary
Potential Negotiation Relationships
Step into role…self interest
MNC1
Local Firma
GovernmentY
MNC2
Local Firmb
GovernmentX
Information Channels
Public
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Meetings
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Classroom, Starbuck’s, …anywhere, anytime.
E-mail to entire class
Public: Team Contacts
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Identify your team’s Chief Information Officer (CIO)
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Establish your team G-mail address
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[email protected]
Information Channels
 Private
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Direct contact between teams, specific individuals
 Meetings (secret location?)
 Phone calls
 G-mail
Prof. Ferrier for Consultation, Rulings, Disputes, etc.
G-mail = [email protected]
Mobile = 859-361-2128
Assignments
Pre-Simulation Memo
1-2 pages
Due today by 5:00 p.m.
Submit via e-mail – [email protected]
Post-Simulation Memo
3-4 pages
Due Friday by 5:00 p.m.
Submit via e-mail – [email protected]
See sample memos sent via e-mail
Pre-Simulation Memo
Sketch out intentions for…strategy or govt. policy
Entry mode
International strategy
Policy/economic objectives and policy specifics
Role of Joint Venture [or other entry mode] in achieving
desired strategy or policy objectives
Sketch out intentions for…negotiation game plan
Key parties that you need to talk to
Key issues and priorities
The negotiation process…which strategies/tactics
Alternatives, “Plan B”, etc.
Post-Simulation Memo
Entry Mode & Strategy section
Transaction [or Non-transaction] section
Attach copy of JV agreement or contract
Negotiation Process & Outcome section
Conclusions
Post-Simulation Memo
Details of “current” and future situations and
actions regarding:
Entry mode
International strategy and operations
Organizational structure
(Government: Future policies package)
Make explicit use of these frameworks
Agreements/Contracts
Each multi-party “agreement”
Type and purpose of project
Partners, ownership, structure, control, etc.
Agreements on other key issues
Non-Agreement Explanation
Why no agreement?
Process and substantive barriers to agreement
Future process and/or substantive alternatives
Negotiation Process
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Which parties?
How frequently?
Multilateral vs. Bilateral
Log-timeline
Press releases
Negotiation Issues/Points
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What were they?
Link to entry mode and/or international strategy
Negotiation strengths vs. weaknesses
Negotiation issues won vs. lost
Conclusions – What to do differently?
Governments
Influence of policy package on entry mode and
strategy?
MNCs
‘Intended’ versus ‘realized’ entry mode/strategy?
Local Firms
‘Intended’ versus ‘realized’ role in facilitating MNCs
local entry mode and their overall international
strategy?
Simulation Schedule
TIME
Now
In Class
Later Today
Tomorrow
In Class
Later Tomorrow
TASK
Simulation Kick-Off
Pre-Sim Memo (Due by 5:00 p.m.)
Negotiations
Negotiations
Negotiations Conclude
Post-Sim Memo (Due by 5:00 p.m.)